Vanguard bolsters roster of outside advisors with addition of Ariel Investments
VALLEY FORGE, Pa., January 31, 2022 /PRNewswire/ — Vanguard today announced the addition of Ariel Investments, LLC, to the company’s distinguished list of world-class active managers. Ariel will join Cardinal Capital Management, LLC and Frontier Capital Management Co., LLC, to oversee the $1.2 billion Vanguard Explorer Value Fund.
“Vanguard continually seeks leading investment firms that demonstrate the expertise, diversity of thought and accountability necessary to drive positive results for investors,” said Dan Reyes, head of Vanguard’s portfolio review department. “We believe Ariel’s talented portfolio management team and patient approach to investing complements the fund’s strategy and existing advisors.”
Founded in 1983 as a small-to-mid-cap value manager, Ariel was the first black-owned mutual fund company in the United States. The company has evolved into a global asset manager offering a range of investment strategies seeking attractive intrinsic value through relatively concentrated portfolios. Ariel’s approach is rooted in an active, yet patient, investment philosophy focused on finding mispriced companies whose true value will be realized over time. Vanguard believes this approach aligns with the fund’s mandate of providing investors with long-term capital appreciation by investing in small and medium-sized US companies that are considered undervalued.
Ariel’s initial target allocation will be 10% of the Vanguard Explorer Value fund, with the remaining assets split equally between the fund’s other two permanent value managers.
Vanguard Active Management Branch
Vanguard is a leader in active management with over $1.8 trillion in active assets across stock, bond, balanced and money market portfolios. Vanguard’s active management philosophy is rooted in a disciplined, long-term approach and mission to give investors the best chance of success in achieving their investment goals. Vanguard has more than four decades of experience both partnering with leading external advisors and managing active strategies in-house.
Vanguard has delivered consistent and sustained active outperformance, which is enabled by rigorous fund oversight, access to a diverse roster of active management talent, and the ability to keep costs low. Over the past 10 years, 86% of Vanguard’s actively managed funds have outperformed their peer group average.1
Vanguard is one of the largest investment management companies in the world. From November 30, 2021Vanguard Managed $8.5 trillion in global assets. The company, headquartered in Valley Forge, Pennsylvania, offers 422 funds to its more than 30 million investors worldwide. For more information, visit vanguard.com.
Any investment is subject to risk, including the possible loss of the money you invest. The prices of mid-cap and small-cap stocks often fluctuate more than those of large company stocks.
All digits at December 31, 2021 unless otherwise stated.
1 For the 10 year period ending December 31, 2021, 81 of Vanguard’s 94 active funds outperformed their peer group average (source: Lipper, a Thomson Reuters company). Results will vary for other periods. Only funds with a history of at least five years were included in the comparisons. (Source: Lipper, a Thomson Reuters Company). Note that the competitive performance data presented represents past performance, which is not a guarantee of future results, and that all investments are subject to risk. For the most recent performances, visit our website at www.vanguard.com/performance.
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