VALLEY FORGE, PA — Vanguard has announced recent changes to the advisory arrangements for its Explorer Value Fund. Wellington Management Company LLP will join existing advisors Frontier Capital Management LLC and Ariel Investments, LLC in managing the fund.
As part of these adjustments, Ariel and Wellington Management will take over the portion of the fund previously managed by Cardinal Capital Management, L.L.C., which will no longer serve as an advisor. The decision follows an ongoing review by Vanguard’s manager research team, which evaluates investment advisors based on long-term performance drivers rather than short-term results.
The $978 million Explorer Value Fund will now have its advisor allocations set as follows: Frontier at 45%, and both Wellington Management and Ariel at 27.5% each. Additionally, the expense ratio for the fund will increase slightly from 0.49% to 0.53%. Despite this increase, the fund remains in the lowest-cost quartile compared to its peers.
Wellington Management holds the distinction of being Vanguard’s largest and longest-serving external advisor. The firm’s Small Cap Value Opportunities team brings extensive experience in small cap investing, a unique investment process, and competitive long-term results. Their portfolio is expected to complement the strategies of the fund’s other advisors effectively.
Vanguard emphasized that the investment objective, principal investment strategies, and policies of the fund will remain unchanged.
Vanguard Partners with Wellington for Investor Success
This strategic shift in advisory roles aims to benefit current and future shareholders by leveraging the strengths of Wellington Management’s expertise. By maintaining a focus on cost efficiency and robust investment strategies, Vanguard continues to prioritize long-term investor success.
The adjustments come at a time when investors are increasingly scrutinizing fund management practices and their impacts on returns. Through careful selection and ongoing evaluation of its advisors, Vanguard seeks to enhance the value it provides to shareholders.
In summary, Vanguard’s decision to include Wellington Management in the advisory team of the Explorer Value Fund reflects a commitment to optimizing fund management. The changes are geared toward driving better outcomes for investors while maintaining a competitive cost structure.
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