Waterloo, Belgium, 10th December, 2009 — Vanguard Investments Europe today announced the launch of a new equity index portfolio: Vanguard® Global Small-Cap Index Fund. The portfolio is the 31st portfolio in the Irish-domiciled Vanguard Investment Series plc funds. The Fund aims to track the performance of the MSCI World Small Cap Index, which includes companies with a market capitalization between €190 million and €2.1 billion across developed markets. This is the only index fund available in the European marketplace that provides exposure to this broad market within a single fund (source: data from Morningstar and Lipper).
Paul Lohrey, Vanguard’s Chief Investment Officer for Europe, comments: “We believe that there is a long-term investment opportunity for investors in global small-cap stocks, and our Fund provides a low-cost, broadly diversified way to access this market. Indexing can be successful in large and small-cap markets. As a general principle, we believe that a low-cost, low-turnover index fund is well-positioned to outperform in any defined market or market segment.”
The Fund will offer unhedged Investor and Institutional Shares in US Dollars, Euro, and Swiss Francs, as well as hedged Institutional Shares in US Dollars, Euro, and Swiss Francs. The total expense ratio (TER) for the Investor Shares is 0.60%, and for the Institutional Shares is 0.50%.
The Fund will also offer unhedged Pound Sterling Income Shares and Accumulation Shares with a TER of 0.40%.
Vanguard Quantitative Equity Group, which in total oversees nearly €340 billion in assets, will oversee the Fund. Michael Buek, CFA, will manage the portfolio. Michael joined Vanguard in 1987 and manages 10 funds, with €85 billion in assets. He earned a B.S. from the University of Vermont and an M.B.A. from Villanova University.
- Ends -
About Vanguard
Vanguard Investments Europe is a wholly owned subsidiary of The Vanguard Group, Inc., a leading provider of high-value investment services. Vanguard Investments Europe is a distributor of Vanguard's Ireland-domiciled UCITS portfolios and is authorized and regulated in Belgium by the Belgian Financial Services Authority (CBFA). For more information visit www.global.vanguard.com. Since establishing the first indexed mutual fund in the US in 1976, The Vanguard Group has grown into one of the world's largest and most respected investment management companies. Vanguard manages nearly US $1.5 trillion worldwide (as of 10/31/2009). Vanguard’s index-tracking portfolios are managed by an in-house team of more than 100 professionals who have developed and refined a process that seeks to achieve low long-term tracking error within strictly defined risk guidelines. Vanguard’s active management offerings employ the expertise of 26 of the world’s leading institutional investment advisors with stringent and independent oversight.
The Vanguard Group serves as investment manager of the Vanguard Investment Series plc funds.
The sale of Vanguard Investment Series plc funds is subject to conditions stipulated in the prospectus, supplements to the prospectus, simplified prospectuses, and, in some countries, local addenda. These documents can be obtained free of cost at the office of the administrator in JPMorgan House, International Financial Services Centre, Dublin 1, Ireland. These documents contain detailed information on the management, costs, possible limitations and investment risks associated with investing in the Vanguard Investment Series plc funds and should be carefully read before investing.
Vanguard Investment Series plc has been authorised in Ireland as a UCITS (Undertakings for Collective Investment in Transferable Securities) pursuant to the European Communities Regulations, 2003, as amended.
The difference between the sale and re-purchase price of units in Vanguard Investment Series plc (taking into account possible portfolio transaction charges) means that any investment should be viewed as medium to long-term. Investors should also note that, in certain circumstances set out in the prospectus, a redemption charge may become payable.
Vanguard Investments Europe SA is a Distributor of the Vanguard Investment Series plc.
CFA and Chartered Financial Analyst are trademarks owned by the CFA Institute.
Vanguard is a trademark of The Vanguard Group, Inc. All other marks are the exclusive property of their respective owners.
© 2009 Vanguard Investments UK, Limited. All rights reserved.
