OREANDA-NEWS. July 18, 2016. Vanguard today announced an investment advisor change affecting the \\$21.0 billion Vanguard International Growth Fund.

M&G Investment Management Limited will no longer serve as an advisor to the fund.

The International Growth Fund is a large-, mid-, and small-capitalization international growth fund that has used a multimanager approach since 2003. M&G had been an advisor to the fund since 2008.

Assets formerly managed by M&G (approximately 11.5% of the portfolio) are being reallocated to the two remaining advisors: Baillie Gifford Overseas Ltd. and Schroder Investment Management North America Inc. The allocation under the new arrangement is expected to be: Baillie Gifford, 60%; Schroders, 40%.

The fund's investment objective and primary investment strategy remain the same. Its characteristics— including valuations, market-cap profile, and sector allocations—will be substantially similar to what they were before.

The advisor change is not expected to affect the fund's expense ratios. Modest transaction costs and capital gain distributions may result from repositioning of assets.

M&G continues to serve as an advisor to the \\$2.7 billion Vanguard Precious Metals and Mining Fund and the \\$274.8 million Vanguard Emerging Markets Select Stock Fund. At this time, the funds' boards of trustees have determined that it is in shareholders' best interests to retain M&G as an advisor to both funds.

Notes:

  • All asset figures are as of June 30, 2016, unless otherwise noted.
  • All investing is subject to risk, including the possible loss of the money you invest.