VALLEY FORGE, PA — Vanguard recently announced plans to launch Vanguard International Dividend Growth Fund, an actively managed equity fund that seeks to compound wealth over the long term by investing in international companies with sustainably growing dividends. The fund will be managed by the same experienced investment team, from Wellington Management Company LLP, behind Vanguard Dividend Growth Fund. The International Dividend Growth Fund applies the time-tested investment philosophy of Wellington Management’s Dividend Growth team to international stocks.
“Investors can use the International Dividend Growth Fund as a meaningful component of their international equity holdings, and it can be paired with the U.S.-focused Dividend Growth Fund to build a globally diversified, actively managed equity allocation,” said Dan Reyes, global head of the Portfolio Review Department at Vanguard. “Vanguard creates products designed to meet the long-term needs of investors and help give them the best chance for investment success. Partnering with world-class investment talent is an integral part of Vanguard’s disciplined, research-based process for developing a product lineup with enduring investment merit.”
The International Dividend Growth Fund’s portfolio manager will construct a high-conviction portfolio of companies with strong balance sheets and high, sustainable free cash flows. The portfolio manager will select companies that are expected to sustainably grow their dividends over the long term. The philosophy underpinning this is the belief that a growing dividend is key to identifying attractive investments. The fund will seek to invest in companies that can withstand the ups and downs of the business cycle, with a strong emphasis on resilience in all market environments.
The fund is expected to be available for investment in the fourth quarter of 2023 with a competitive expense ratio of 0.54%. The fund will have a single share class with a minimum initial investment of $3,000.
The fund will be advised by Wellington Management and managed by Peter Fisher, who also co-manages the Vanguard Dividend Growth Fund alongside portfolio manager Don Kilbride. Wellington Management is Vanguard’s largest and longest-serving external advisor. From the day Vanguard was founded, Wellington Management has managed client assets on behalf of the Vanguard funds. As of June 30, 2023, Wellington Management oversaw more than $405 billion of Vanguard fund assets globally. Vanguard has a long-established relationship with Mr. Fisher and Wellington Management’s Dividend Growth team and is confident that the team’s proven investment process and philosophy will translate well to international stocks.