Hotchkis & Wiley Capital Management will manage a larger percentage of the $45.7 billion Vanguard Windsor II Fund, according to Vanguard Group spokesman David Hoffman.
The Los Angeles-based money manager will now run about 11%, or about $5 billion, of the Windsor II Fund's assets, up from 7%, or about $3.2 billion. Hotchkis & Wiley will assume the roughly 4% of fund's assets previously managed by Armstrong Shaw Associates, which is no longer a subadviser to the equity fund.
Armstrong Shaw was terminated for a number of reasons, including evaluation of the fund's investment staff, portfolio management process and performance, according to Mr. Hoffman. Patricia Verrochi, spokeswoman for Armstrong Shaw, declined to comment.
Meanwhile, Barrow, Hanley, Mewhinney & Strauss will continue to manage about 60% of the Windsor II Fund's assets; Lazard Asset Management, about 16%; and Sanders Capital about 10%. Vanguard's equity investment group manages the remainder of the fund's assets.
Windsor II Fund became the first Vanguard fund to adopt the firm's multiple manager approach in 1987. Hotchkis & Wiley has served as subadviser to the fund since 2003.