Vanguard today announced an upcoming change to the investment advisory arrangements of Vanguard U.K. Active Equity Fund. An additional investment adviser will be added to the fund: Schroders Investment Management North America Inc. (Schroders). They will manage the portion of the fund currently advised by Marathon Asset Management, which subject to this transition, will no longer serve as an adviser to the fund.
Vanguard’s portfolio oversight function conducts ongoing reviews of the firm’s investment advisers, looking beyond short-term performance to focus on the drivers of long-term success for investors. As part of this review process, Vanguard determined that changes to the advisory structure would best serve current and future shareholders of the fund.
Vanguard has long advocated for a multi-manager approach on certain investment strategies, setting adviser allocations based on long-term, strategic targets. Following the transition which is expected to be complete in early September, the target manager allocations for the Vanguard U.K. Active Equity Fund will be: Baillie Gifford 50%, Schroders 50%. The investment objective, philosophy, and primary investment strategy of the fund will remain the same, and the expense ratio is not expected to change because of the advisor changes.
