An interview with one of the Global Wellington Fund managers

Meet Nataliya Kofman, managing director at Wellington Management and equity portfolio manager for the new Vanguard Global Wellington™ Fund. The fund launched on October 18, 2017, along with Vanguard Global Wellesley® Income Fund.

In this interview, Nataliya talks with John Croke from our Portfolio Review Department about what makes these funds unique, what Wellington Management brings to the table, and how her personal background plays a role in her stock evaluation process.


Learn more about these new funds


TRANSCRIPT

John Croke: Hello, my name is John Croke. And with me today is Nataliya Kofman from Wellington Management Company.

Wellington is a global leader with over $1 trillion in assets under management. Our long-standing relationship, dating back to the launch of the Wellington Fund in 1929, continues to expand with the additions of the Global Wellington and Global Wellesley Income Funds. Nataliya is the equity portfolio manager for Vanguard Global Wellington Fund, which launched on October 18.

Thank you for being here today, Nataliya.

Nataliya Kofman: Thank you for having me.

John Croke: What’s unique about the Global Wellington and Global Wellesley Income Funds that you think investors should be interested in?

Nataliya Kofman: Well, both of these funds are designed as a single option for investors who’d like to achieve both long-term growth and also current income. And that approach really comes from the balanced nature of both funds.

So in the case of the Global Wellington Fund, two-thirds of the fund is managed in stocks and one-third in bonds. And in the case of [the] Global Wellesley [Income] Fund, that allocation is more conservative, where one-third goes to stocks and two-thirds goes to bonds.

John Croke: And those asset allocation distinctions are really important when talking about these two funds. But I’m sure as you go down to the next level, there’s a lot of commonality—a lot of similarities—to how the portfolios are managed.

Nataliya Kofman: The biggest commonality between the two is that they’re global funds. And what “global” brings to the table is that we’re able to find the best companies and entities around the world that are trading at depressed valuation. And that active management—that stock selection—is a big contributing factor [in] why we’re able to perform over long periods of time and really offer a reduced level of risks.

We also have a bond team that helps us select bonds for both portfolios, who also have a long tenure in managing these balanced funds and bring their global expertise to bear on those portfolios.

John Croke: Nataliya, what do you believe Wellington Management Company brings to the table when it comes to managing these global portfolios?

Nataliya Kofman: Wellington has been managing balanced funds for close to 90 years, and it really dates back to when the Wellington Fund was started, which is a balanced fund.

We also have deep expertise in managing money in a global fashion. Wellington started to expand globally and invest internationally since 1983, and that effort has really paid off. Now close to 25% of our 600 investment professionals work and live outside of [the] U.S.

John Croke: Nataliya, that global perspective is so important—and so important to you personally. Would you mind sharing a little bit about your own investment background and your journey to the Wellington Management Company?

Nataliya Kofman: I joined Wellington 11 years ago, and I joined the team that invests and manages the Wellington Fund. Since then, the team has expanded its approach to include global stocks, and I was instrumental in starting up that effort.

And I’ve learned very closely—having grown up in Kiev, Ukraine, which is a country that has seen a lot of instability, both politically and economically—how important it is to take into account those risks when selecting equities to manage in a portfolio.

My first career, in fact—prior to coming to Wellington—was as a mechanical engineer. You develop this mindset of analytical thinking, but also of structured decision-making. And I find that as an investor, that mindset is incredibly important in balancing those risks and opportunities that I mentioned.

John Croke: Well, I want to thank you for your time today and your insights, Nataliya.

For more information about the new funds, please visit investor.vanguard.com. We appreciate you tuning in.

Important information

For more information about Vanguard funds, visit investor.vanguard.com or call 877-662-7447 to obtain a prospectus or, if available, a summary prospectus. Investment objectives, risks, charges, expenses, and other important information about a fund are contained in the prospectus; read and consider it carefully before investing.

All investing is subject to risk, including possible loss of principal.

Diversification does not ensure a profit or protect against loss.

The information presented in this video is intended for educational purposes only and does not take into consideration your personal circumstances or other factors that may be important in making investment decisions. We recommend you consult a financial advisor about your individual situation.

Investments in stocks and bonds issued by non-U.S. companies are subject to risks including country/regional risk and currency risk.

Be aware that fluctuations in the financial markets and other factors may cause declines in the value of your account. There is no guarantee that any particular asset allocation or mix of funds will meet your investment objectives or provide you with a given level of income.