VALLEY FORGE, PA — Vanguard has announced recent changes to the advisory team for its Emerging Markets Select Stock Fund. Oaktree Fund Advisors, LLC will no longer manage a portion of the fund. Instead, Oaktree’s allocation will be redistributed to two existing advisors: Baillie Gifford Overseas Ltd. and Pzena Investment Management, LLC.
Vanguard’s decision comes after a comprehensive review by its manager research team. The team assesses both current and prospective advisors, focusing on long-term performance rather than short-term results. This review concluded that reallocating advisory responsibilities would better serve the fund’s shareholders.
Following the transition, the $785 million fund will have the following target allocations: Baillie Gifford and Pzena will each manage 37.5%, while Wellington Management will handle the remaining 25%. These changes will result in a slight decrease in the fund’s expense ratio, dropping from 0.80% to 0.79%.
Both Pzena and Wellington have been advisors for the fund since its inception in 2011, with Baillie Gifford joining in 2018. Each firm manages multiple funds and strategies for Vanguard.
Despite the changes in advisory arrangements, the fund’s investment objectives, strategies, and policies will remain unchanged.
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