Close Close
Popular Financial Topics Discover relevant content from across the suite of ALM legal publications From the Industry More content from ThinkAdvisor and select sponsors Investment Advisor Issue Gallery Read digital editions of Investment Advisor Magazine Tax Facts Get clear, current, and reliable answers to pressing tax questions
Luminaries Awards

Technology > Investment Platforms > Turnkey Asset Management

Vanguard Swaps Out Subadvisor on $9.8B Fund

Your article was successfully shared with the contacts you provided.
Vanguard investor homepage on a phone screen (Photo: Shutterstock)

Toronto-based Sprucegrove Investment Management has become an external advisor for Vanguard, adding to its active management expertise, Vanguard said Friday.

The boutique asset manager, which has $13.8 billion in assets under management, joins Lazard Asset Management and ARGA Investment Management in overseeing the $9.8 billion Vanguard International Value Fund (VTRIX, with a 0.37% net expense ratio).

Sprucegrove is managing the 35% of the fund previously overseen by Edinburgh Partners, Vanguard said. Arjun Kumar and Shirley Woo are co-managing Sprucegrove’s portion of the fund.

Vanguard didn’t specify when and why Edinburgh stopped being a manager of the fund and did not immediately respond to a request for comment.

The Vanguard International Value Fund invests in companies from developed and emerging markets globally that its advisors view as temporarily undervalued by the markets, the company noted. The fund invests in large-, mid- and small-capitalization companies and diversifies its assets in countries across developed and emerging markets, it added.

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,” it said.

Employee-owned Sprucegrove, founded in 1993, maintains an investment philosophy focused on constructing portfolios of quality companies at attractive valuations, Vanguard said in its announcement.


© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.