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Post by roi2020 on Aug 27, 2021 5:20:12 GMT
Vanguard Advice Select Dividend Growth will be managed by Donald Kilbride of Wellington. This fund will be a more concentrated version of Vanguard Dividend Growth which Mr. Kilbride has managed since 2006.
Vanguard Advice Select International Growth will be comanaged by James Anderson* and Lawrence Burns. Both managers are part of the Baillie Gifford team which runs 70% of Vanguard International Growth. Baillie Gifford invests with a venture capital approach which has generated high returns along with high volatility.
David Palmer of Wellington Management will run Vanguard Advice Select Global Value. Mr. Palmer has led Wellington's 70% slice of Vanguard Windsor since 2019.
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dirk
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Post by dirk on Aug 27, 2021 21:07:31 GMT
A “more concentrated” version of VDIGX? A fund where Kilbride only holds 41 stocks right now? I would love to see the short list for that fund.
Based on the other info in the article, looks like someone has been reading Dan Weiner’s advisory… since most of the active fund names have been on his list for years. Curious to see what Vanguard does going forward.
Dirk
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Post by roi2020 on Aug 28, 2021 0:25:11 GMT
A “more concentrated” version of VDIGX? A fund where Kilbride only holds 41 stocks right now? I would love to see the short list for that fund. Based on the other info in the article, looks like someone has been reading Dan Weiner’s advisory… since most of the active fund names have been on his list for years. Curious to see what Vanguard does going forward. Dirk Since 2019, VDIGX held between 39-42 stocks whenever I checked. Going back to 2012, the fund held up to 50 stocks. I'm guessing the Advice Select iteration may hold 20-25 stocks. M* states that an institutional version of the concentrated strategy beat VDIGX by nearly 2% since early 2008 albeit with greater volatility. Your right about Dan Weiner's newsletter - The Independent Adviser for Vanguard Investors. Dividend Growth, International Growth, and Capital Opportunity have been included in the newsletter's model portfolios for years.
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dirk
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Post by dirk on Aug 29, 2021 16:37:19 GMT
Dividend Growth, International Growth, and Capital Opportunity have been included in the newsletter's model portfolios for years. VDIGX and VWIGX/VWILX are both still open. So I think the key component to watch here is the Capital Opportunity offering: will it be a clone of the existing (closed) fund? Or will it use PRIMECAP's stock pickers to go back to Cap Opp's original mandate, which included some large, but more emphasis on mid (even some small) cap stocks? Since the closure of POAGX a few years back, we haven't had an available fund that dwelt in mid-cap land from PRIMECAP. If Vanguard has convinced PRIMECAP to go back to these roots, it might be worth our attention. Even moreso if we see evidence that PRIMECAP has regained its mojo after a few less-than-notable years. Dirk
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Post by yogibearbull on Aug 29, 2021 17:12:57 GMT
Charge more for a more concentrated fund? Well, that seems like "Yacktman" fund trick (focused YAFIX is more expensive than regular YACKX) and I have commented on that before elsewhere. Now VG will charge 0.45% for more concentrated div-gr fund vs VDIGX that has ER 0.26%. So, let us extrapolate this, more concentrated a fund becomes, more is its ER. Then, the super-duper concentrated version of the fund may finally have just 1 stock (the very best idea) and it can charge outrageous ER, and with nothing to do, its portfolio manager plays golf all day.
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dirk
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Post by dirk on Aug 29, 2021 17:21:30 GMT
So, let us extrapolate this, more concentrated a fund becomes, more is its ER. Then, the super-duper concentrated version of the fund may finally have just 1 stock (the very best idea) and it can charge outrageous ER, and with nothing to do, its portfolio manager plays golf all day. Well gee, yogi. If that were the case and we could count of M* to accurately report the stock(s) in the Portfolio tab under the fund name (let's not hold our breath), we could take the hint, buy just that (those) stock(s) at our favorite discount broker, and go golfing too! Dirk (who gave away his golf clubs to the First Tee charity here in San Antonio a few years ago and hasn't missed 'em)
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Post by roi2020 on Aug 29, 2021 20:22:18 GMT
Baillie Gifford runs approximately 70% of VWIGX/VWLIX while Schroder runs the remainder of the fund. The Select International Growth fund is interesting in that it will be run solely by Baillie Gifford. This will be the only Vanguard actively managed fund where Baillie Gifford is the sole manager.
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dirk
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Post by dirk on Aug 29, 2021 20:56:33 GMT
So Vanguard IS making clear distinctions between the standard funds and the Advice Select versions. In Div Growth and now we see in Intl Growth, too. Makes me have even higher hopes that PRIMECAP's mandate will be closer to the earlier iterations of Cap Opp, but we'll see.
Single manager funds? This has been Dan Weiner's soapbox speech for decades: buy the jockey (active manager), not the horse (fund)...and be wary when there's more than one jockey. VWIGX is a slight exception, allowed into the club no doubt because of that 70% share going to Baillie Gifford. PRIMECAP (with its team set-up) may seem another...but at least no additional/second manager group is involved. Weiner's praise for Wellington Mgmt is well established, but he's been rating Windsor (both I and II) as holds for quite a while, reminding us that the true heyday for those funds was back when Barrow ran the portfolio solo. I haven't subscribed to Weiner's newsletter in at least a couple of years, but I'd love to know his take on these particular Advice Select funds. As I say, the more I learn about the "new" funds, the more I'd swear someone at Vanguard finally decided Weiner might be on to something.
More reports as you see them, folks! This could be interesting.
Dirk
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dirk
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Post by dirk on Sept 2, 2021 22:20:46 GMT
OK…mea culpa. I keep spelling a name wrong. It’s Dan Wiener…not Weiner. Dang. Sorry. That’s all. Everyone go back to sleep. ;-) Dirk
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Post by shipwreckedandalone on Sept 9, 2021 15:06:21 GMT
Thru the years, what funds has he preferred in a conservative allocated retirement portfolio?
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Post by roi2020 on Sept 9, 2021 16:15:29 GMT
shipwreckedandalone , The Income Portfolio is The Independent Adviser for Vanguard Investors most conservative portfolio. It's designed for investors who desire a higher level of income plus the opportunity for capital growth with low risk, such as retirees or near-retirees. The Income Portfolio from the January 2020 newsletter is below*. Please note that the Health Care fund was included in the model portfolios for years but was subsequently removed. Dividend Growth - 29% Intermediate-Term Investment-Grade - 23% Primecap Core - 21% Short-Term Investment-Grade - 13% Health Care - 7% International Growth - 7% *The February or March 2021 newsletter is the latest issue that I've read but I don't have model portfolio information after January 2020.
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Post by Chahta on Sept 12, 2021 18:56:53 GMT
Charge more for a more concentrated fund? Well, that seems like "Yacktman" fund trick (focused YAFIX is more expensive than regular YACKX) and I have commented on that before elsewhere. Now VG will charge 0.45% for more concentrated div-gr fund vs VDIGX that has ER 0.26%. So, let us extrapolate this, more concentrated a fund becomes, more is its ER. Then, the super-duper concentrated version of the fund may finally have just 1 stock (the very best idea) and it can charge outrageous ER, and with nothing to do, its portfolio manager plays golf all day. I’m sure there are many rich folk out there that thrive on mangers working for them. They are not like us poor folk. 😉
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Post by roi2020 on Sept 15, 2021 20:19:04 GMT
Here's a deeper dive into Vanguard's three new active equity funds for PAS clients. Link
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dirk
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Post by dirk on Sept 18, 2021 2:57:26 GMT
shipwreckedandalone , Please note that the Health Care fund was included in the model portfolios for years but was subsequently removed. Hey roi2020…has Wiener really taken Health Care out of his model portfolios? Just the Conservative? Curious. Dirk
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Post by roi2020 on Sept 18, 2021 3:49:08 GMT
dirk , Yes, the Health Care Fund was sold in all three "active" model portfolios - Growth, Conservative Growth, and Income. Mr. Wiener recommended this fund for many years. Ed Owens was the sole named manager of the Health Care Fund from its inception in 1984 until May 2008. Jean Hynes became an associate manager at that time. Mr. Owens stepped down from the fund at the end of 2012 and Ms. Hynes became the sole named manager. Performance under Ms. Hynes deteriorated. IIRC, Mr. Wiener lost faith in the Health Care Fund after Jean Hynes became the Wellington Management CEO on June 30, 2021. She continued as the sole manager of the fund after assuming the CEO position.
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dirk
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Post by dirk on Sept 18, 2021 14:56:27 GMT
Wow. I’m shocked…SHOCKED! 😉 Health Care was indeed a perennial fave, not just of Wiener but of almost every advisory I monitored since the early 1990s. It was also one of the first and only sector funds I invested in since those early days. When the Owens-to-Hynes switch occurred I read interviews that made me confident in Hynes as a manager…and that confidence has been justified I think. At least until the last two or three years. I have a hefty chunk of my taxable portfolio in the fund, so unwinding that position won’t be easy. If taxes weren’t an issue I’d simply switch to Eddie Yoon’s Fidelity Select Health to maintain the sector emphasis. But the Uncle Sam factor looms large. Ran into a similar situation when Dan took Vanguard Selected Value off the list several years back (and justifiably so). Hmmm….
Dirk
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