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Vanguard Windsor II advisor expands role

March 03, 2014

Vanguard increased the percentage of Vanguard Windsor™ II Fund assets that Hotchkis and Wiley Capital Management, LLC manages. An advisor to the $45.7 billion fund since 2003, the firm now manages about 11% of the fund after assuming roughly 4% of the assets previously managed by Armstrong Shaw Associates Inc., which is no longer an advisor to the fund.

Hotchkis and Wiley uses a disciplined investment approach, focusing on such investment parameters as a company's tangible assets, sustainable cash flow, and potential for improving business performance. "Over the years, our respect for their deep and talented team of value investors has grown, as has our conviction in their ability to add value for our shareholders," said Vanguard CEO Bill McNabb.

The Los Angeles-based, independently owned investment advisory firm has approximately $26 billion in assets under management and more than 30 years of experience in managing money. While they primarily serve institutions, they've advised Vanguard Windsor II Fund for more than a decade.

Barrow, Hanley, Mewhinney & Strauss, LLC, continues to manage about 60% of the Windsor II Fund, Lazard Asset Management LLC approximately 16%, and Sanders Capital, LLC, about 10%. Vanguard Equity Investment Group manages the remainder of the fund's assets.

Armstrong Shaw was an investment advisor to Vanguard Windsor II Fund since 2006. Jeffrey M. Shaw, chairman and chief investment officer of the firm, managed the firm's portion of the fund. "We want to thank Jeff and the team at Armstrong Shaw for their dedication and service to our clients," Mr. McNabb said.

Vanguard has long used multiple managers on its actively managed equity funds. The Windsor II Fund became the first Vanguard fund to adopt this approach in 1987. Today, 17 of Vanguard's actively managed U.S.-domiciled equity funds use this method. Vanguard believes that a fund with multiple managers can benefit from the diversity of thought and investment ideas.

Notes:

  • All investing is subject to risk, including the possible loss of the money you invest.
  • Diversification does not ensure a profit or protect against a loss.
  • All asset figures are as of January 31, 2014, unless otherwise noted.
  • For more information on Vanguard funds, visit Funds, Stocks & ETFs or call 800-662-7447 to obtain a prospectus. investment objectives, risks, charges, expenses, and other important information about a fund are contained in the prospectus; read and consider it carefully before investing.
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