Vanguard Group announced that it has added a pair of managers to help run the $2.9 billion Vanguard Selected Value (VASVX).

Donald Smith & Co., a New York-based, deep-value oriented firm that oversees more than $2.5 billion in assets, will join Barrow, Hanley, Mewhinney & Strauss Inc. on the fund.

Donald Smith, chief investment officer of the firm that bears his name, and Richard Greenberg, a senior portfolio manager, will join the fund.

Donald Smith & Co. invests in stocks that are out of favor and selling at a discount to the company’s book value, Vanguard said. The firm “develops fairly concentrated portfolios that historically exhibit low turnover,” Vanguard added.

To “minimize the tax impact” on shareholders, Vanguard said it will “direct a modest portion” of the fund’s current cash holdings to the new managers. Also, the majority of the fund’s new cash inflows will be directed to the new managers, Vanguard noted.

The addition of the new managers is not expected to have a “significant impact” on the fund’s 0.60% expense ratio, Vanguard said.

Vanguard Selected Value, which is ranked four stars by Standard & Poor’s, gained 1.0% year-to-date through the end of April, while the average mid-cap value fund lost 4.5% over that period. The Vanguard fund returned 13.9%, on average, for the five years ended last month, compared to its peers’ 10.0% gain.

More of the latest mutual fund news from Standard & Poor’s can be found here.