Deals & People November 25, 2008

Vanguard Morgan Growth Fund Adds Two Advisers

The board of trustees of Vanguard Morgan Growth Fund has named two new firms to the fund’s investment advisory team.

Reported by

According to a press release, Frontier Capital Management Co., LLC, and Kalmar Investment Advisers have replaced Franklin Portfolio Associates, LLC, in managing approximately 20% of the $6.4 billion fund.

This will be the first Vanguard fund advisory assignment for Frontier, a Boston-based investment management company with about $4.8 billion in assets. The firm employs a fundamental, research-intensive approach that seeks stocks of mid-sized companies with a combination of superior growth potential and attractive valuation. Frontier is owned jointly by its management team and Affiliated Managers Group, according to a press release.

Never miss a story — sign up for PLANADVISER newsletters to keep up on the latest retirement plan adviser news. 

Kalmar, based in Wilmington, Delaware, has more than $2.7 billion in assets under management and has served as an investment adviser to Vanguard Explorer Fund since 2005. In managing its portion of Morgan Growth Fund, Kalmar follows a fundamental strategy to identify undervalued mid-capitalization stocks of solid, well-managed companies.

“Morgan Growth Fund was one of the first Vanguard funds to adopt a multimanager approach, and shareholders have been well-served by the fund’s blending of the distinctive growth strategies of its advisors,” said Vanguard CEO F. William McNabb III. “We are confident that the two new firms, with their emphasis on mid-cap stocks, will serve as great complements to the existing advisory team.’ Today, 14 of Vanguard’s 29 actively managed stock funds are multimanaged.

Other Managers

Frontier and Kalmar join Wellington Management Company, LLP, Jennison Associates LLC, and Vanguard Quantitative Equity Group in the management of the fund.

Stephen Knightly serves as the portfolio manager for Frontier’s portion of the fund. Knightly is a senior vice president at Frontier and has 19 years of experience in investment management. Ford B. Draper, Jr., serves as the portfolio manager for Kalmar’s portion of the fund. Draper is president and chief investment officer of Kalmar, and has 41 years of experience in the investment management industry.