Vanguard is planning an actively managed single-country China mutual fund for 2022, despite scrapping its local business in the country itself. Erin Arvedlund reported on the initiative for The Philadelphia Inquirer.

The $8.3 trillion fund giant has chosen Wellington Management and Baillie Gifford as portfolio managers for the incoming mutual fund.

The company filed an initial registration statement with the U.S. Securities and Exchange Commission last month to launch its China Select Stock Fund at the beginning of next year. The fund will invest in onshore and offshore Chinese stocks, as well as companies listed in the U.S.

“Vanguard research indicates that there is an opportunity for talented active managers to generate alpha in China’s large, but inefficient, equity market,” said Kaitlyn Caughlin, internal head of the portfolio review department.

Vanguard said that China is an “important part of both the equity and fixed income allocations of a globally diversified portfolio,” as it is the second-largest nation in the world by GDP output, as well as the third-largest by stock market capitalization.

And while the fees for the fund are higher than those of its classic low-cost index fund, they are still cheaper than the competition’s.

Read more about Vanguard in The Philadelphia Inquirer.