VALLEY FORGE, Pa.--(BUSINESS WIRE)--Vanguard today announced the addition of Pzena Investment Management, LLC, to the management team of Vanguard Selected Value Fund. Pzena joins two other investment advisors in managing the $8.5 billion mid-cap value fund, which has utilized a multi-manager approach since 2005.
Pzena currently provides investment advisory services to three other Vanguard funds. Vanguard established a relationship with Pzena in 2005, when it selected the New York-based firm to manage Vanguard U.S. Fundamental Value Fund, a $47 million, Irish-domiciled fund available only to non-U.S. investors. Pzena has also managed portions of the $250 million Vanguard Emerging Markets Select Stock Fund since its inception in 2011 and the $17.3 billion Vanguard Windsor Fund since 2012.
“We are pleased to deepen our partnership with Pzena,” said Vanguard CEO Bill McNabb. “The firm features an impressive investment team and disciplined approach to value investing. The Selected Value Fund has employed a multi-manager approach for some time, and we expect the fund will benefit from the addition of Pzena to the advisory team.”
Rich Pzena, Pzena’s chief executive officer and co-chief investment officer, will serve with Manoj Tandon and Eli Rabinowich as portfolio managers. Pzena utilizes a fundamental, bottom-up, deep-value-oriented investment strategy. The firm seeks to buy good businesses at low prices, focusing exclusively on companies that are underperforming their historically demonstrated earnings power.
The addition of Pzena is not expected to materially change the Selected Value Fund’s character. Pzena will initially manage an allocation from the fund’s current cash position, and will be allocated a portion of new cash flow over time. As of December 31, 2013, Barrow, Hanley, Mewhinney & Strauss, LLC, managed 74% and Donald Smith & Co., Inc., managed 26% of the fund’s assets.
Vanguard, headquartered in Valley Forge, Pennsylvania, is one of the world’s largest investment management companies and a leading provider of company-sponsored retirement plan services. Vanguard manages nearly $2.53 trillion in U.S. mutual fund assets, including $346 billion in ETF assets. The firm offers more than 160 funds to U.S. investors and more than 100 additional funds in non-U.S. markets. For more information, visit vanguard.com.
All asset figures are as of February 28, 2014, unless otherwise noted.
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