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Vanguard Selected Value Fund adds manager

March 31, 2014

Vanguard Selected Value Fund has added Pzena Investment Management, LLC, to its team of advisors. The firm joined Barrow, Hanley, Mewhinney & Strauss, LLC, and Donald Smith & Co., Inc., in managing assets for the $8.5 billion fund.

Pzena will initially manage assets from the fund's current cash position, and will receive a portion of new cash flow. Barrow, Hanley, Mewhinney & Strauss, LLC, and Donald Smith & Co., Inc., retain management of their current portions of the fund portfolio: about 75% and 25% respectively. The fund's focus as a mid-cap value offering of relatively concentrated U.S. equities also stays the same.

Since our relationship with Pzena began in 2005, Vanguard has been impressed with Pzena's ability to add value through their disciplined approach. "The Selected Value Fund has employed a multi-manager approach for some time, and we expect the fund will benefit from the addition of Pzena to the advisory team," said Vanguard CEO Bill McNabb.

Vanguard has used the multi-manager approach for our actively managed equity funds since 1987, while Vanguard Selected Value Fund has done so since 2005. Combining the efforts of advisors with different styles and focuses to manage a fund portfolio's assets is one way we offer investors diversification—one of our core principles for investing success.

New York-based Pzena CEO and co-CIO Rich Pzena, Manoj Tandon, and Eli Rabinowich serve as portfolio managers. They use a classic value investment approach, combining fundamental research and efforts to seek the best value opportunities.

Along with the new mandate, Pzena provides investment advisory services to three other Vanguard funds: Vanguard U.S. Fundamental Value Fund, a Dublin-domiciled fund available only to non-U.S. investors; a portion of the Vanguard Emerging Markets Select Stock Fund; and a portion of the Vanguard Windsor™ Fund.

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 February 28, 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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