August 13, 2010

Vanguard Removes AXA Rosenberg as Advisor on Three Funds

Change affects Explorer Fund, U.S. Value Fund and Market Neutral Fund

Vanguard announced Thursday, August 12, that AXA Rosenbwerg Investment Management will no longer serve as an advisor on three of the firm's fund products.

According to the statement, the funds' investment advisory arrangements have been restructured as follows:

? The approximately 12% of assets in the $8.9 billion Explorer Fund previously managed by AXA Rosenberg has been apportioned to several of the product's six remaining advisors.

? For the $492 million U.S. Value Fund, the approximately 65% portion previously managed by AXA Rosenberg has been directed to Vanguard Quantitative Equity Group, which will now serve as the sole advisor.

? Vanguard Quantitative Equity Group will also now serve as sole advisor for the $84 million Market Neutral Fund, taking over responsibility for the approximately 45% of assets previously managed by AXA Rosenberg.

In the statement, Vanguard's chairman and chief executive Bill McNabb thanked AXA Rosenberg for its three years of service as advisor for the Vanguard funds.

Vanguard said that following the announced changes, 15 equity funds continued to follow a multimanager approach. Its small-cap growth Explorer Fund has done so since 1990. According to the statement, that fund's current advisory team includes Granahan Investment Management, Inc.; Century Capital Management, LLC; Kalmar Investment Advisers; Wellington Management Company, LLP; Chartwell Investment Partners, L.P.; and Vanguard Quantitative Equity Group.

Vanguard, which manages more than $1.4 trillion in U.S. mutual fund assets, offers some 160 funds to U.S. investors and more than 50 additional funds in non-U.S. markets.

Michael S. Fischer (msf7@columbia.edu) is a New York-based financial writer and editor and a frequent contributor to WealthManagerWeb.com.

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