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T. Rowe Price Advises Vanguard for First Time
17 Aug
Summary
- T. Rowe Price is now managing portions of three Vanguard funds.
- The funds managed by T. Rowe Price hold over $42 billion in assets.
- One fund, Explorer, is shifting towards growth stocks with the new management.
Vanguard has enlisted T. Rowe Price Associates to manage segments of three prominent funds: Vanguard Explorer, Vanguard Growth and Income, and the Vanguard Variable Insurance Fund Small Company Growth Portfolio. This collaboration represents the first instance of T. Rowe Price advising Vanguard. These combined funds boast significant net assets exceeding $42 billion.
The changes extend beyond new management, as Vanguard Explorer is also increasing its exposure to growth stocks. This strategic adjustment may hold more sway for shareholders than the T. Rowe Price name itself, according to Vanguard's recent announcement.
Previously, ArrowMark Colorado Holdings was removed from Explorer and VVIF Small Company Growth, while Los Angeles Capital Management exited Growth and Income. T. Rowe Price will manage individual portions of each portfolio, not the entire funds. T. Rowe Price employs a hybrid investment approach, utilizing both fundamental research and quantitative models for Explorer and VVIF Small Company Growth.
