Vanguard Announces Changes in Advisory Arrangements for Explorer Value Fund

Vanguard has disclosed significant alterations in the investment advisory arrangements for the Explorer Value Fund. In this adjustment, Wellington Management Company LLP is set to join the fund as an advisor, alongside the existing advisors Frontier Capital Management LLC and Ariel Investments, LLC. Notably, Ariel and Wellington Management will be taking charge of the portion of the fund that was previously under the guidance of Cardinal Capital Management, L.L.C., which will no longer be associated with the fund’s advisory team.

Vanguard’s expert manager research team is always engaged in reviewing current and potential investment advisors, focusing on long-term success drivers rather than short-term performance. Through this evaluation process, Vanguard has concluded that tweaking the advisory structure will be in the best interest of the current and future stakeholders of the fund.

Following this transition, the advisor allocations for the $978 million Explorer Value Fund will be as follows: Frontier at 45%, Wellington Management at 27.5%, and Ariel at 27.5%. The change in advisor composition is expected to lead to a slight increase in the expense ratio from .49% to .53%. Despite this adjustment, the fund is anticipated to stick to being part of the lowest-cost quartile within its peer group.

Wellington Management stands out as Vanguard’s most extensive and long-serving external advisor. The Small Cap Value Opportunities team at Wellington Management boasts robust small-cap investing experience, a unique investment process, competitive long-term results, and a portfolio that harmonizes effectively with the current advisors of the fund.

The investment objective, primary investment strategies, and fund policies will remain unchanged amidst these alterations in advisor composition for the Explorer Value Fund.

About Vanguard: Established in 1975, Vanguard has solidified its position as one of the globe’s foremost investment management firms, catering investments, advice, and retirement services to millions of individual investors worldwide. Vanguard’s investor-owned structure emphasizes prioritizing the best interests of investors and maximizing their opportunities for investment success. For more details, visit vanguard.com.