Vanguard Group Inc. the world’s biggest mutual-fund company, has dropped Hansberger Global Investors as one of the managers of its $6.8 billion International Value (VTRIX) Fund.
Vanguard removed about $1.2 billion from Ft. Lauderdale, Florida-based Hansberger and reallocated the money to two existing advisers, Lazard Ltd. (LAZ) and Edinburgh Partners Ltd., the Valley Forge, Pennsylvania-based firm said today in a statement. Hansberger is an affiliate of French bank Natixis (KN) SA.
“After careful evaluation, we determined that the new investment-advisory arrangement will better serve shareholders over the long term,” Vanguard’s Chief Executive Officer William McNabb said in the statement.
Vanguard, the $2 trillion manager best known for its index- linked mutual funds and exchange-traded products, oversees $223 billion in actively-managed stock funds. It contracts with outside firms known as subadvisers to invest most of those assets, and routinely evaluates and switches managers. Vanguard dropped AllianceBernstein LP, the New York-based investment unit of French insurer Axa SA (CS), from the same International Value fund in August.
International Value trailed 68 percent of rival funds over the past three years as it returned an annual 2.7 percent, according to data compiled by Bloomberg. The fund rebounded in the past year, returning 21 percent and beating 73 percent of competitors. Vanguard doesn’t release performance figures for individual managers in multi-manager funds.
Under the new arrangement, Hamilton, Bermuda-based Lazard manages about 39 percent of the fund, Edinburgh Partners handles 34 percent and Stamford, Connecticut-based Arga Investment Management LP runs 24 percent, Vanguard said in the statement.
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