Vanguard has launched the BlendedLife Dynamic model portfolio service (MPS) for UK based financial advisers in partnership with Wellington Management.
The range consists of five model portfolios that blend active and index investment strategies. It is designed for advisers wishing to combine index funds with the potential for outperformance provided by active management, Vanguard said.
Vanguard is working with Wellington Management to deliver the new offering, extending a longstanding relationship with the investment manager.
The range consists of five model portfolios investing across equities and fixed income, with weighting ranging from 20% to 100% equity. The asset allocation of each portfolio is determined by Wellington, using proprietary research and forecasting.
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The index funds and active fixed income funds in the model portfolios are run by Vanguard, while the active equity component is handled by third parties. These include Schroders, Lazard, MFS Meridian, Pzena and Jennison.
Gillian Hepburn, head of UK adviser solutions at Vanguard, said: “Increasingly, advisers we speak to are seeking more choice, as they look to meet the different needs of their client segments. For a growing group of clients, a blend of active and index investing within a single solution is of real interest.
“The Vanguard BlendedLife Dynamic model portfolio range is therefore a best of both worlds approach combining Vanguard’s history as pioneers of low-cost index investing and active manager selection, with Wellington’s portfolio construction expertise and history of navigating markets.”
Will Lockhart, managing director and head of UK and Irish distribution at Wellington Management, (pictured) added: “Vanguard and Wellington have partnered for five decades on investment solutions for clients, and BlendedLife Dynamic MPS is a natural next step.”
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