Vanguard Names New Portfolio Managers for Flagship Index Funds
Vanguard announced this week that is has named seven new portfolio managers to oversee its 23 flagship equity index funds, which have a combined $3.56 trillion in assets.
In a press release, Vanguard said that it periodically shakes up the portfolio management staff around the world to strengthen its management capabilities. "For more than 40 years, Vanguard has been an industry leader in developing and managing index funds, employing seasoned professionals, and using proprietary trading strategies to manage portfolios effectively and efficiently," said Greg Davis, Vanguard's chief investment officer, in a press release announcing the moves. "With these changes, our clients across the globe can benefit from the nearly 100 years of combined investment management experience these portfolio managers bring to the funds."
Among the changes, Vanguard said that Michelle Louie has been named co-portfolio manager of the $367.5 billion Vanguard 500 Index Fund. This is the first index fund, introduced way back in 1975. Louie has been with the fund company since 2010 and will also co-manage a handful of other index funds, including the Vanguard Employee Benefit Fund, Vanguard Financials Index Fund, Vanguard Health Care Index Fund, Vanguard Industrials Index Fund, Vanguard Institutional Index Fund, Vanguard Materials Index Fund, Vanguard S&P 500 Growth Index Fund, Vanguard S&P 500 Value Index Fund and Vanguard Variable Insurance Fund – Equity Index Portfolio.
Meanwhile, the firm said that Christine Franquin, who has been a part of the Vanguard Equity Investment Group since 2011, will be the co-portfolio manager of the $315.6 billion Vanguard Total International Stock Index Fund. Awais Khan, with the company since 2010, will be in charge of the Vanguard Consumer Discretionary Index Fund, Vanguard Consumer Staples Index Fund, Vanguard Energy Index Fund, Vanguard S&P Mid-Cap 400 Growth Index Fund, Vanguard S&P Mid-Cap 400 Index Fund, Vanguard S&P Mid-Cap 400 Value Index Fund, Vanguard Telecommunication Services Index Fund and Vanguard Utilities Index Fund. William A. Coleman, a portfolio manager at Vanguard since 2006, will co-manage the $60.7 billion Vanguard Extended Market Index Fund. The other portfolio manages now overseeing the index funds include Scott Geiger, Michael Johnson and Michael Perre.
"These recently named portfolio managers are able to draw on their diverse perspectives and deep knowledge of Vanguard's fund management approach to help ensure we deliver precise tracking to our benchmarks and competitive investment performance to our clients," added Joe Brennan, global head of Vanguard's Equity Investment Group.
Earlier this week, Vanguard announced that it is launching a suite of exchange-traded funds (ETFs) that are actively managed and are tied to well-known market factors. The six new ETFs and one mutual fund are slated to be available by the middle of February, with Vanguard Quantitative Equity Group acting as the investment advisor for the new products.