Vanguard, Wellington, and Blackstone have officially teamed up—and their first fund is nearly here. But the debut of the WVB All Markets Fund raises almost as many questions as it answers.
Here’s what we know so far: (You can find the preliminary prospectus here.)
The new fund will aim to deliver “attractive risk-adjusted returns” by investing in public and private markets. The typical portfolio breakdown is expected to look like this:
- 40%–60% in public stocks via “Vanguard Underlying Funds”
- 15%–30% in Vanguard’s actively managed bond funds
- 25%–40% in private markets through various Blackstone funds.
In other words, with this fund, you too can have your own college endowment portfolio!
We also know that Wellington will be calling the shots. Despite the high-profile “strategic alliance,” the prospectus makes it clear that this is Wellington’s show: “Blackstone and Vanguard are not sponsors, promoters, investment advisers, sub-advisers, underwriters or affiliates of the Fund.”
Importantly, WVB All Markets is an interval fund (also known as a continuously offered closed-end fund). It looks and acts much like a mutual fund, but with one key difference: you can only sell it quarterly—maybe.