Vanguard Group terminated Jackson Square Partners as subadviser to the Vanguard U.S. Growth Fund and Vanguard Variable Insurance Funds.
Jackson subadvised on roughly 13% of the U.S. Growth Fund's $45.5 billion in assets. The portion of funds that Jackson Square had subadvised has been equally apportioned to existing subadvisers Jennison Associates, Wellington Management Co. and Baillie Gifford Overseas Ltd.
Following the transition, the target manager allocations for U.S. Growth will be: Jennison Associates, 28%; Wellington and Baillie Gifford, each 28%; and Vanguard Quantitative Equity Group, 15%, with the rest in cash.
Wellington Management will serve as the sole subadviser to the $1.2 billion Variable Insurance Funds. Jackson and Wellington each previously subadvised on 50% of the funds.
Vanguard decided to terminate the manager after conducting a review of its global fund lineup, spokeswoman Jessica Emery said in an email.
"We constantly monitor our funds and take appropriate measures when needed to improve investor outcomes," Ms. Emery added. "We believe this change is in the best interest of the funds' shareholders and will bring long-term value to the funds."
Victoria Odinotska, spokeswoman for Jackson Square Partners, could not be immediately reached for comment.
Vanguard managed $7.2 trillion in assets as of Jan. 31.