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
Carefully select managers with a proven process and demonstrable ability
Don't let high fees destroy fund performance
Accept that there will be periods of underperformance
Our approach to active fund management
We're one of the world's largest active managers, with $1.6 trillion 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.
Select a Vanguard mutual fund to learn more
This fund seeks to provide long-term capital growth and some current income by investing in equity and fixed income securities of issuers located anywhere in the world. The fund's sub-advisor is Wellington Management Canada ULC (with separate teams for equity and fixed income).
This fund seeks to provide an above-average level of current income together with long-term capital growth by investing primarily in dividend-paying equity securities of companies located anywhere in the world. The fund's sub-advisors are Wellington Management Canada ULC and The Vanguard Group, Inc. (Quantitative Equity Group).
This fund seeks to provide long-term capital appreciation and income by investing primarily in value-oriented U.S. equities. The fund's sub-advisors are Wellington Management Canada ULC, Pzena Investment Management, LLC, and The Vanguard Group, Inc.
This fund seeks to provide long-term capital appreciation by investing primarily in the stocks of high-quality companies located outside Canada and the United States. The fund's sub-advisors are Baillie Gifford Overseas Ltd. and Schroder Investment Management North America Inc. and The Vanguard Group, Inc.
A distinctive approach to manager selection and oversight
- 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.
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: The Vanguard Group, Inc., as of March 31, 2018. Assets are in Canadian dollars.