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Rating:Vanguard Fires a Sub-Advisor Not Rated 0.0 Email Routing List Email & Route  Print Print
Monday, January 14, 2013

Vanguard Fires a Sub-Advisor

Reported by Tommy Fernandez

Vanguard [profile] has removed Hansberger Global Investors from the sub-advisor lineup of the $6.8-billion Vanguard International Value Fund.

The fund giant made the announcement in a press release (included below) and in SEC filings accessible here and here.

According to Vanguard, Hansberger’s 17 percent portion of the fund will be reallocated Lazard Asset Management [profile] and Edinburgh Partners Limited, which also serve as sub-advisors to the fund.

"After careful evaluation, we determined that the new investment advisory arrangement will better serve shareholders over the long term," stated Vanguard CEO Bill McNabb. "We thank Hansberger and its investment professionals for their dedication and commitment to our shareholders over the last 12 years."

Under the new arrangement, Lazard will manage approximately 39 percent of the fund’s assets; Edinburgh Partners, 34 percent; and ARGA Investment Management, 24 percent. Cash investments will account for the remainder of the fund’s assets.


Company Press Release

VANGUARD ANNOUNCES ADVISORY CHANGE FOR INTERNATIONAL VALUE FUND



VALLEY FORGE, PA (January 14, 2013)—Vanguard today announced modifications to the investment advisory structure of the $6.8 billion Vanguard International Value Fund (VTRIX). Hansberger Global Investors, Inc., will no longer serve as an advisor under the new arrangement, and its portion of the fund (approximately 17%) will be reallocated to Lazard Asset Management LLC and Edinburgh Partners Limited, which currently serve as advisors to the fund.

“After careful evaluation, we determined that the new investment advisory arrangement will better serve shareholders over the long term,” said Vanguard CEO Bill McNabb. “We thank Hansberger and its investment professionals for their dedication and commitment to our shareholders over the last 12 years.”

Under the new arrangement, Lazard will manage approximately 39% of the fund’s assets; Edinburgh Partners, 34%; and ARGA Investment Management, LP, 24%. Cash investments will account for the remainder of the fund’s assets.

Vanguard International Value Fund invests in non-U.S. companies from developed and emerging international markets, focusing on stocks that its advisors view as temporarily undervalued. The fund has followed a multimanager approach since 2004.

Twenty-one Vanguard funds, including five international funds, employ a multimanager strategy. Vanguard believes that combining high-caliber investment management teams that employ distinct but complementary strategies can reduce portfolio volatility, provide the potential for long-run outperformance, and mitigate manager risk.

The International Value Fund’s expense ratio is not expected to be affected by the advisory change.

About Vanguard

Vanguard, headquartered in Valley Forge, Pennsylvania, is one of the world’s largest investment management companies and a leading provider of company-sponsored retirement plan services. Vanguard manages nearly $2 trillion in U.S. mutual fund assets. The firm offers more than 170 index funds, active funds and ETFs to U.S. investors and more than 70 additional funds and ETFs in non-U.S. markets. For more information, visit www.vanguard.com.

# # #

All asset figures are as of December 31, 2012.

For more information, visit vanguard.com, or call 800-662-7447 to obtain a fund prospectus. Investment objectives, risks, charges, expenses, and other important information about a fund are contained in the prospectus; read and consider it carefully before investing.

Mutual funds are subject to risks, including possible loss of principal. Investments in stocks issued by non-U.S. companies are subject to risks including country/regional risk and currency risk. Stocks of companies based in emerging markets are subject to national and regional political and economic risks and to the risk of currency fluctuations. These risks are especially high in emerging markets.

Vanguard Marketing Corporation, Distributor.  

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