We believe that successful active management is driven by a combination of top talent, low costs and patience. This conviction, coupled with our rigorous manager selection and oversight process, has produced impressive long-term results.1
We're one of the world's largest active managers, with more than $1 trillion USD in active funds under management.2 Vanguard active funds are managed by a combination of in-house teams and a variety of external sub-advisors. We use this multi-advisor approach to help reduce volatility and deliver a more predictable pattern of returns. All of our fund managers—in-house and external—are held to the rigorous standards of the manager selection and oversight process that we've refined over more than 40 years.
Unique ownership structure and global scale. Together, these attributes allow us to lower costs to help our investors earn more over time.
Integrated, multi-level search and oversight. Our CEO-led process relies on input from our Portfolio Review Department, Global Investment Committee and board of directors.
A focus on drivers, not outcomes. We look beyond short-term performance, aiming to assess the true, sustainable drivers of long-term outperformance.
Multi-advisor structure. Pairing advisors with different but complementary styles provides diversity of thought and helps us mitigate volatility.
Loyal relationships. When we hire sub-advisors, we seek partnerships that will last for decades. Our equity sub-advisors have an average tenure of 14 years with us.
* Data as of September 30, 2019.
1 Of Vanguard's actively managed multi-advisor funds, 100% outperformed their Lipper peer-group averages for the ten-year period ending March 31, 2018. Includes U.S.-domiciled funds only. Source: Lipper, a Thomson Reuters Company.
2 Source: Vanguard as of March 31, 2019.
3 The management fee is from period June 25, 2018 to June 30, 2019 and is calculated on a semi-annual basis. As a result of a management fee waiver program, this fee may change and could be up to a maximum of 50bps. Please see the fund’s prospectus for detailed information on the management fees and the management fee waivers applicable to fund.