Vanguard Group terminated M&G Investment Management as subadviser to its $21 billion international growth fund and $2 billion variable insurance fund-international portfolio, a Vanguard news release stated.
Moving forward, existing subadvisers Baillie Gifford Overseas and Schroder Investment Management will manage 60% and 40% of both funds, respectively.
M&G previously managed 11.5% of international growth fund assets and 14.3% of international variable insurance assets. A Vanguard spokeswoman said in an e-mail that the decision to change the funds' advisory structure was “based on, among other things, evaluation of the investment staff, portfolio management process and long-term performance.”
An M&G spokesman declined to comment.
M&G continues to serve as the sole subadviser for the Vanguard Precious Metals & Mining fund and is one of several subadvisers for the Vanguard Emerging Markets Select Stock fund.
Separately, David W. Palmer, senior managing director and equity portfolio manager at Wellington Management, will serve as sole portfolio manager of Vanguard's approximately $1 billion capital value fund. The fund was previously co-managed by Mr. Palmer and Peter I. Higgins, senior managing director and equity portfolio manager at Wellington, subadviser to the fund.
“Upon a thoughtful deliberation, Vanguard determined that a single manager structure with David Palmer provides the investment approach, experience and expertise that will best serve shareholders going forward,” the spokeswoman said. Mr. Higgins, who remains at Wellington, could not immediately be reached for comment.
Vanguard managed more than $3.6 trillion globally as of June 30.