Vanguard scores five stars and plans for new funds
Vanguard Investmentshas been awarded a five star ranking for its 10 funds currently available in the market and has also been rated ‘very strong’ across all business sectors according toAssirt.
The moves come after five years of offering investment funds to retail investors in Australia and ahead of the rollout of new products later this year, according to head of retail Robin Bowerman.
Bowerman says the exact details of the new funds have yet to be decided but he would be researching what financial planners and investors need as well as extensions to the current range of funds.
The group at present offer funds in the areas of local and global fixed interest, local and overseas diversified shares, property securities and multi sector.
Vanguard topped wholesale inflows for the last two quarters of 2003 and attracted $800 million for the last calendar year through retail platforms and now has $2 billion in retail funds under management.
“This is first time a manager has received five stars and a ‘very strong’ rating across the board and indicates we have done work on building the investment management,” Bowerman says.
“The rating is important because it also shows we have delivered on what we promised to do.”
Bowerman says the ratings and the inflows have been spurred on by Vanguard actively promoting the group’s funds to the retail market with a dedicated team headed up by George Vassos, which has been involved in demonstrating the role of index funds in a portfolio.
“Advisers are now starting to use Vanguard for low balance clients but many more are using index funds as a core investment with specific active manager components taking up the rest of the portfolio.”
Assirt rated the business management, operating capability and asset allocation as very strong stating the group had clear and well implemented strategy, expansion opportunities, stringent compliance and the ability to add value through the implementation of strategic positions without introducing tactical risks.
AUTHOR
Jason Spits
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