Vanguard removed Oaktree Fund Advisors as one of the investment advisers of the $785 million Vanguard Emerging Markets Select Stock Fund.
Oaktree Fund Advisors’ former allocation will be split among two of the fund's other advisers, Baillie Gifford Overseas and Pzena Investment Management, the firm said an Aug. 12 release.
As part of a review process, Vanguard determined that “changes to the advisory structure would best serve current and future shareholders of the fund,” the release noted.
As a result of this change, the adviser breakdown for the fund is: Baillie Gifford, 37.5%; Pzena, 37.5%; and Wellington Management, 25%.
In addition, the fund’s expense ratio decreased to 0.79% from 0.80%.
The investment objective, principal investment strategies and policies of the fund will remain the same, the release said.
Both Pzena and Wellington have managed the fund since its inception in 2011, while Baillie Gifford has served as a manager since 2018. All three of these firms will continue to manage multiple funds and strategies on behalf of Vanguard, the release indicated.
A spokesperson for Vanguard said that Oaktree Fund Advisors, an affiliate of Oaktree Capital Management, no longer advises on any Vanguard mutual funds or exchange-traded funds.
Oaktree declined to comment on the removal.
According to Vanguard’s website, the fund has returned 4.6% year-to-date through August 9, compared to a 7.6% return by its benchmark, the FTSE Emerging index.
Vanguard has a total of $9.5 trillion in AUM, while Oaktree has $193 billion.
