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Vanguard Removes Manager From $45B Fund

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What You Need to Know

  • Jackson Square Partners was removed as manager of the $45.5 billion U.S. Growth Fund.
  • The roughly 13% of the U.S. Growth portfolio that Jackson Square managed has been equally divided among the three remaining managers of that fund.
  • The firm was also replaced as sole advisor to the Variable Insurance Funds — Growth Portfolio by Wellington Management.

Vanguard has replaced the advisor on its $45.5 billion U.S. Growth Fund and $1.2 billion Vanguard Variable Insurance Funds — Growth Portfolio, which are both actively managed.

The approximately 13% of the U.S. Growth portfolio that Jackson Square Partners managed has been equally divided among the three remaining managers of that fund: Jennison Associates, Wellington Management Co. and Baillie Gifford Overseas. Each of those three firms now manages 28% of the U.S. Growth Fund. The Vanguard Equity Group manages 15% of the fund, and the remainder is held in cash.

Jackson Square Partners was also replaced as the sole advisor to the Variable Insurance Funds — Growth Portfolio by Wellington Management.

“We employ a rigorous evaluation process in overseeing our funds and advisors to ensure we provide sound, enduring offerings that meet the long-term needs of our clients,” said Dan Newhall, head of global oversight and manager search for Vanguard Portfolio Review Department, in a statement. “After careful review, we have concluded that the new advisory arrangements have the best prospects of delivering valuable outcomes to the funds’ shareholders.”

In October, Vanguard changed one of several advisors managing assets of the Vanguard International Value Fund, replacing Edinburgh Partners with Sprucegrove Investment Management. Vanguard manages $1.7 trillion in active assets and $7.2 trillion overall.