Vanguard Group dropped RS Investments as a subadviser for the $3.1 billion Vanguard Mid-Cap Growth Fund.
RS Investments' portion of the fund — about 20% of the fund's assets — will be transferred to Frontier Capital Management Co., an existing subadviser on the fund, Vanguard said in a news release Monday.
As a result of this change, Frontier will manage about 60% of the fund's assets and Wellington Management Co. will continue to manage the other 40%.
Jeremy Eisengrein, a spokesman for Vanguard, confirmed by email that the changes are effective as of Monday and that RS Investments does not manage any other Vanguard funds.
In explaining the change, Vanguard noted in the news release that "after careful consideration," it determined that these changes "would best serve the shareholders of the fund" after evaluating such factors as "the investment team, overall firm quality, philosophy, and process, as well as long-term performance results."
RS Investments began advising on the Mid-Cap Growth Fund in December 2016.
Based in San Francisco, RS Investment is a unit of Victory Capital Management. Victory could not be immediately reached for comment.
The fund's investment objectives, philosophies, characteristics and primary investment strategy will remain the same, Vanguard added in the release. The fund's 0.33% expense ratio is also not expected to change.
Year-to-date through the end of November, the fund returned -25.3%, compared with a -22% return for its benchmark, the Russell Midcap Growth index.
Vanguard had $7.5 trillion in total assets under management as of Nov. 30.
