Vanguard announced changes Monday to the investment advisory arrangements of the Vanguard Explorer Value Fund (VEVFX), with Wellington Management Co. joining the advisory team and Cardinal Capital Management leaving. The fund's expense ratio is increasing as a result.
Wellington Management will work as a fund advisor alongside existing advisors Frontier Capital Management and Ariel Investments; Ariel and Wellington Management will manage the portion of the fund formerly advised by Cardinal Capital.
The changes are effective today, a Vanguard representative said.
Vanguard said its manager research team conducts ongoing reviews of current and prospective investment advisors, looking beyond short-term performance to focus on long-term success drivers. As part of this review process, Vanguard determined that changes to the advisory structure would best serve current and future fund shareholders.
Following the transition, the advisor allocations for the $978 million Explorer Value Fund will be as follows: Frontier, 45%; Wellington Management, 27.5%; and Ariel, 27.5%.
