Vanguard Adds Sprucegrove Investment Management as External Advisor

by | Oct 9, 2020

The Press Release below was published by Vanguard on Oct 9, 2020.

VALLEY FORGE, Pa., Oct. 9, 2020 /PRNewswire/ — Vanguard announced Sprucegrove Investment Management Ltd. (Sprucegrove) will be added to the firm’s distinguished roster of world-class active management expertise. Effective October 12, 2020, Sprucegrove will join Lazard Asset Management LLC and ARGA Investment Management, LP in overseeing the $9.8 billion Vanguard International Value Fund. Sprucegrove will manage the 35% of the Fund previously overseen by Edinburgh Partners Limited.

“Vanguard has decades of experience in selecting and partnering with active managers. We continuously search for world-class investment talent that brings a particular expertise and experience to specific mandates,” said Kaitlyn Caughlin, head of Vanguard Portfolio Review Department. “We welcome Sprucegrove as a valuable addition to our talented roster of investment management partners.”

Sprucegrove is a Toronto-based boutique asset manager with $13.8 billion in assets under management. Founded in 1993, the employee-owned firm maintains an investment philosophy focused on constructing portfolios of quality companies at attractive valuations. Arjun Kumar, CFA, and Shirley Woo, CFA, will co-manage Sprucegrove’s portion of the Fund.

The Fund invests in companies from developed and emerging markets around the world that its advisors view as temporarily undervalued by the markets. The Fund invests in large-, mid-, and small-capitalization companies and diversifies its assets in countries across developed and emerging markets.

As a result of Vanguard’s performance-based fee arrangements, the Fund’s expense ratio is expected to increase 1 basis point to 0.38%, well below the average asset-weighted expense ratio of 0.98% for foreign large value funds (i).

Vanguard’s active management leadership
With more than $1.6 trillion in active assets, Vanguard is one of the largest providers of actively managed funds in the world. Vanguard’s philosophy on active management is rooted in its commitment to partnering with top-tier advisors—both internal and external—and taking a long-term, disciplined approach to investing to give investors the best chance of success in achieving their investment goals.

Vanguard has delivered consistent and sustained outperformance through more than 45 years of active management. Over the last ten years, 90% of Vanguard’s actively managed funds outperformed their peer group average, enabled by rigorous fund oversight, access to a diverse roster of world-class active management talent, and the ability to keep costs low (ii).

About Vanguard
Vanguard is one of the world’s largest investment management companies. As of August 31, 2020, Vanguard managed $6.6 trillion in global assets. The firm, headquartered in Valley Forge, Pennsylvania, offers more than 422 funds to its more than 30 million investors worldwide. For more information, visit vanguard.com.

Asset figures as of August 31, 2020 unless otherwise noted.

For more information about Vanguard funds, visit vanguard.com/fund prospectus to obtain a prospectus or, if available, a summary prospectus. Investment objectives, risks, charges, expenses, and other important information are contained in the prospectus; read and consider it carefully before investing.

All investing is subject to risk, including the possible loss of the money you invest.

Investments in stocks or bonds issued by non-U.S. companies are subject to risks including country/regional risk and currency risk. This risk is especially high in emerging markets.

Vanguard Marketing Corporation, Distributor.

(i) Source: Morningstar, as of August 31, 2020.

(ii) For the one-year period, 91 of 122 Vanguard active funds outperformed their peer-group averages. For the five-year period, 88 of 100 Vanguard active funds outperformed their peer-group averages. For the ten-year period, 86 of 96 Vanguard active funds outperformed their peer-group averages. All data as of December 31, 2019. Results will vary for other time periods. Only funds with a minimum one-, five-, or ten-year history, respectively, were included in the comparison. (Source: Lipper, a Thomson Reuters Company). Note that the competitive performance data shown represent past performance, which is not a guarantee of future results, and that all investments are subject to risks. For the most recent performance, visit our website at www.vanguard.com/performance.

SOURCE Vanguard

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