Vanguard has launched the Vanguard BlendedLife Dynamic model portfolio service (MPS), offering UK financial advisers five model portfolios blending active and index-tracking investment strategies.
To do this, it has extended its existing partnership with Wellington Management into the MPS space, drawing on Wellington’s multi-asset expertise.
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 range offers five model portfolios with varying weightings to equities versus fixed income, starting from a 20% equity exposure to a 100% equity option. The precise asset allocation is decided by Wellington Management.
The selected index funds and active fixed-income funds in each model portfolio are run by Vanguard, while the active equity component is enacted by third parties, including Schroders, Lazard, MFS Investment Management, Pzena and Jennison.
Will Lockhart, head of UK and Irish distribution at Wellington Management, said: “Vanguard and Wellington have partnered for five decades on investment solutions for clients and BlendedLife Dynamic MPS is a natural next step, [bringing] together Vanguard’s disciplined, low-cost approach with Wellington’s research-led multi-asset allocation approach to help UK advisers deliver resilient portfolios across risk profiles.”
Earlier this year, Vanguard launched a global iteration of its LifeStrategy MPS range.