The new value oriented, domestic fund will invest in approximately 50 80 stocks with market capitalization of all sizes. The fund is a no-load and does not charge a 12b-1 fee. The expense ration is expected to be 0.48%, according to Vanguard. The minimum initial investment is $3,000 for regular accounts and $1,000 for IRA and custodial accounts.
Wellingtons Charles Freeman will serve as portfolio manager of the new fund. Freeman currently manages the majority of Vanguards $17 billion Windsor Fund. The new fund will be similar to the Windsor Fund, however its smaller size will give the fund more flexibility and allow it to invest more aggressively.
The new fund will share some similarities to the Windsor Fund, sharing a similar investment process and sharing some of the same holdings, but the Capital Value Funds smaller asset base will allow it to, "act more opportunistically, buying smaller stocks and smaller block trades of attractive securities."
As with Vanguards other actively managed equity funds, Wellingtons management fees are based on a sliding schedule such that the base fee is reduced as the assets grow. Also, the quarterly fee includes an incentive/penalty adjustment based on the funds most recent 36-month performance relative to the Wilshire 5000 Index.