Vanguard Picks New Advisers for U.S. Growth Fund

Vanguard has appointed Wellington Management Company, LLP and Delaware Investments as investment advisers to Vanguard U.S. Growth Fund.

The two will replace AllianceBernstein L.P., which had managed approximately two-thirds of the $3.7 billion fund and had served as an adviser since 2001. Each advisory firm will manage approximately one-third of the U.S. Growth Fund, and the remaining one-third of the fund will continue to be managed by William Blair & Company, L.L.C.  

“We are confident that the new advisers, which are two of the oldest and most respected firms in the industry, will help the U.S. Growth Fund regain some of its past luster,” said Vanguard CEO Bill McNabb in a press release.  

The announcement said Wellington Management’s Growth team will adhere to a fundamental approach and seeks to identify large-capitalization companies that offer sustainable growth potential at reasonable valuations. Wellington Management’s portion of the fund will typically be composed of 50–80 stocks and will feature capitalization characteristics similar to those of the Russell 1000 Growth Index, the benchmark for U.S. Growth Fund.  

Delaware Investments will follow a fundamental, bottom-up approach to identify large-cap companies with high growth potential. The strategy is marked by low portfolio turnover and a high concentration in holdings (approximately 25-35 stocks).