Vanguard launches diversified managed account strategies
Vanguard | 22 August 2018
Vanguard today announced its diversified portfolio strategies are now available through Macquarie's Separately Managed Accounts on the Macquarie Wrap platform.
The availability of Vanguard's diversified strategies through managed accounts extends the options for advisers and investors seeking access to Vanguard's professional asset allocation, and are being targeted at the growing base of Australian advisers using managed accounts.
Vanguard's ETFs will predominantly be used to implement the asset allocation for the strategies which include conservative, balanced, growth and high growth. Each has varying exposures to domestic equities, international equities and fixed income, to suit a range of goals, risk tolerances and time horizons.
Vanguard's Head of Distribution, Matthew Lumsden said "We are delighted to launch our first suite of managed account strategies today, which we hope will appeal to the increasing number of advisers adopting managed accounts to assist in their service delivery to clients due to the business efficiencies they can offer.
"Depending on their preference and investment needs, advisers and investors now have greater choice in how they access Vanguard's best thinking on asset allocation represented in our diversified portfolios, whether that's through our low cost managed funds, ETFs or through managed accounts.
"Over time we aim to grow the range of Vanguard strategies offered through managed accounts, to further expand the choices available to our advisers and investors."
Vanguard's Diversified Managed Account Strategies provide transparent, low cost solutions for investors, with the benefit of Vanguard's professional monitoring and rebalancing.
Each portfolio provides investors with an extensive and global exposure to some 6500 individual companies and more than 5000 fixed income securities.
Vanguard's Investment Strategy Group, a global team of researchers, economists and analysts, sets the asset allocation for Vanguard's diversified strategies as part of a robust framework used by Vanguard globally.
The target asset allocation for each of the Vanguard Diversified Managed Account Strategies now available on Macquarie Wrap are below:
Asset allocation as at 31 July 2018
|
|
|
ETF/APIR |
Conservative |
Balanced |
Growth |
High Growth |
|---|---|---|---|---|---|---|
|
Defensive |
|
|
|
|
|
|
|
Australian Fixed Interest |
|
VAF |
18% |
13.5% |
7.5% |
1.5% |
|
International Fixed Interest (hedged) |
|
VBND |
42% |
35% |
21% |
7% |
|
Cash |
|
VAN0102AU1 |
8.5% |
0% |
0% |
0% |
|
Macquarie Cash Account |
|
|
1.5% |
1.5% |
1.5% |
1.5% |
|
Total Defensive |
|
|
70% |
50% |
30% |
10% |
|
Growth |
|
|
|
|
|
|
|
Australian Shares |
|
VAS |
12% |
20% |
28% |
36% |
|
International Shares |
International Shares (unhedged) |
VGS |
8.5% |
14.5% |
20.5% |
26.5% |
|
International Shares(hedged) |
VGAD |
5.5% |
9% |
12.5% |
16% |
|
|
International Small Companies |
VAN0021AU1 |
2% |
3.5% |
5% |
6.5% |
|
|
|
Emerging Markets |
VGE |
2% |
3% |
4% |
5% |
|
Total Growth |
|
|
30% |
50% |
70% |
90% |
1. To complement the ETF asset allocation, the wholesale Vanguard Cash Plus Fund has been used to achieve exposure to money-market securities and bonds, and the wholesale Vanguard International Small Companies Index Fund has been used to achieve exposure to international small companies.
For more information you can visit Vanguard's website.
About Vanguard
With more than AUD $6.8 trillion in assets under management as of 30 June 2018, including more than AUD $1.2 trillion in ETFs, Vanguard is one of the world's largest global investment management companies. In Australia, Vanguard has been serving financial advisers, retail clients and institutional investors for more than 20 years.
For more information please contact:
Martha Wood Media and External Communications Manager
Vanguard Australia
0410 470 165
martha.wood@vanguard.com.au