Vanguard is to modify the investment advisory arrangements of the USD45.5 billion Vanguard US Growth Fund and USD1.2 billion Vanguard Variable Insurance Funds – Growth Portfolio.
Jackson Square Partners, LLC will no longer serve as an advisor to the funds. The portion of the US. Growth portfolio formerly managed by the firm (approximately 13 per cent of fund assets) has been equally apportioned to existing managers Jennison Associates LLC, Wellington Management Company LLP, and Baillie Gifford Overseas Ltd. Wellington Management will serve as the sole advisor to the VVIF—Growth Portfolio.
“We employ a rigorous evaluation process in overseeing our funds and advisors to ensure we provide sound, enduring offerings that meet the long-term needs of our clients,” says Dan Newhall, head of global oversight and manager search for Vanguard Portfolio Review Department. “After careful review, we have concluded that the new advisory arrangements have the best prospects of delivering valuable outcomes to the funds’ shareholders.”
Following the transition, the target manager allocations for US Growth will be as follows: Jennison Associates, 28 per cent, Wellington Management, 28 per cent, Baillie Gifford, 28 per cent, and Vanguard Quantitative Equity Group, 15 per cent, with the remainder equitised in cash. The investment objectives, philosophies, and primary investment strategies of each of the funds will remain the same, and the expense ratios are not expected to change as a result of the advisor changes.
