OREANDA-NEWS. January 21, 2016. Vanguard today announced two investment advisor changes affecting the \\$11 billion Vanguard Explorer™ Fund and the \\$11.7 billion Vanguard Morgan™ Growth Fund.

Century Capital Management, LLC, will no longer serve as an advisor to the Explorer Fund and Kalmar Investment Advisers will no longer serve as an advisor to the Morgan Growth Fund.

Seven advisors for Vanguard Explorer Fund

The Explorer Fund is a small-capitalization growth fund that has used a multimanager approach since 1990. With Century's departure, the fund will now use seven advisors. Assets formerly managed by Century (approximately 7%) have been allocated to Arrowpoint Partners, Vanguard Quantitative Equity Group, and Stephens Investment Management Group, LLC, three of the current advisors.

The allocation of assets among advisors is expected to be: Wellington Management Company LLP, 29%; Kalmar Investment Advisers, 16%; Granahan Investment Management, Inc., 15%; Arrowpoint, 11%; Vanguard, 11%; Stephens, 11%; and Chartwell Investment Partners, LLC, 7%.

Four advisors for Vanguard Morgan Growth Fund

The Morgan Growth Fund, a large- and mid-cap growth fund that has used a multimanager approach since 1990, will now be managed by four advisory teams. Current management teams Jennison Associates LLC, Frontier Capital Management Co., LLC, and Vanguard Quantitative Equity Group have assumed responsibility for the assets (approximately 9%) previously managed by Kalmar.

The new allocation of assets is expected to be: Wellington Management Company LLP, 48%; Jennison, 22%; Frontier, 15%; and Vanguard, 15%.

Vanguard's multimanager approach

Vanguard first adopted a multimanager approach in 1987, and today employs the structure for 18 of its actively managed U.S.-domiciled equity funds. Vanguard believes the combination of high-caliber investment management teams with differentiated but complementary strategies can reduce portfolio volatility, provide potential for long-term outperformance, and mitigate manager risk.

Notes:

  • All asset figures are as of December 31, 2015, unless otherwise noted.
  • All investing is subject to risk, including the possible loss of the money you invest.