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Portfolio > Asset Managers

Vanguard Drops Advisor of Mid-Cap Growth Fund

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Vanguard says RS Investments will no longer serve as an advisor of the $3.1 billion Vanguard Mid-Cap Growth Fund (VMGRX). The roughly 20% of fund assets that it has worked on will be advised by Frontier Capital Management, an existing fund manager.

After the change, Frontier will manage about 60% of the Vanguard Mid-Cap Growth Fund, with Wellington Management Co. continuing to manage some 40% of the fund’s assets.

The firm said early Monday that it “evaluates investment advisors on such factors as the investment team, overall firm quality, philosophy and process, as well as long-term performance results. After careful consideration, Vanguard concluded that changes to the advisory structure would best serve the shareholders of the fund.”

Vanguard Mid-Cap Growth Fund’s expense ratio is 0.33%, and it is down 29.3% this year, according to MarketWatch.

The fund’s “investment objectives, philosophies, characteristics and primary investment strategy … will remain the same, and the expense ratio is not expected to change as a result of the advisor change,” Vanguard explained in a statement.

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