Vanguard this week announced changes to the investment advisory arrangements of the Vanguard International Value Fund.
Lazard Asset Management LLC has been removed as an advisor on the fund and has been replaced by a new advisor for Vanguard and the fund, Altrinsic Global Advisors, LLC. Existing advisors ARGA Investment Management, LP and Sprucegrove Investment Management Ltd will remain. The three advisors will each have a target allocation of 33% of the $11.9 billion International Value Fund. As a result of these changes, the fund’s expense ratio will increase from 0.35% to 0.37%. The investment objective, principal investment strategies and policies of the fund will remain the same.
Vanguard’s manager research team conducts ongoing reviews of current and prospective investment advisors, looking beyond short-term performance to focus on the drivers of long-term success for investors. Vanguard believes that the addition of Altrinsic will serve the best interests of current and future shareholders of the fund.
ARGA and Sprucegrove have advised the fund since 2012 and 2020, respectively. While Altrinsic is a new advisor for Vanguard, they have been managing international equities for 25 years. Vanguard has strong conviction that all three managers’ different approaches to value investing within the international equity markets will complement each other and improve the Fund’s construction and performance.
Altrinsic, founded in 2000, is a global equity asset manager headquartered out of Stamford, Connecticut, with a sole focus on managing global, international, and emerging market equity strategies. The firm capitalizes on its investment professionals’ industry expertise, cross-border perspectives, extensive networks, and bottom-up analysis.
The portion of the fund advised by Altrinsic will be managed by portfolio managers John Hock, Rich McCormick and John DeVita. Hock is the founder and chief investment officer of Altrinsic and has over 30 years of experience in the industry. McCormick is co-chief investment officer and has been at the firm since 2009. Mr. DeVita, who joined the firm in 2000, is the Director of Research.
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Amanda Umpierrez is the Managing Editor of 401(k) Specialist magazine. She is a financial services reporter with nearly a decade of experience and a passion for telling stories and reporting news. She is originally from Queens, New York, but now resides in Denver, Colorado.