Vanguard adds Sprucegrove Investment Management as external adviser

Vanguard is to add Sprucegrove Investment Management to its roster of active management expertise. 

Effective 12 October, 2020, Sprucegrove will join Lazard Asset Management LLC and ARGA Investment Management, LP in overseeing the USD9.8 billion Vanguard International Value Fund. Sprucegrove will manage the 35 per cent of the Fund previously overseen by Edinburgh Partners Limited.

“Vanguard has decades of experience in selecting and partnering with active managers. We continuously search for world-class investment talent that brings a particular expertise and experience to specific mandates,” says Kaitlyn Caughlin, head of Vanguard Portfolio Review Department. “We welcome Sprucegrove as a valuable addition to our talented roster of investment management partners.”
Sprucegrove is a Toronto-based boutique asset manager with USD13.8 billion in assets under management. Founded in 1993, the employee-owned firm maintains an investment philosophy focused on constructing portfolios of quality companies at attractive valuations. Arjun Kumar, CFA, and Shirley Woo, CFA, will co-manage Sprucegrove’s portion of the Fund.
The Fund invests in companies from developed and emerging markets around the world that its advisors view as temporarily undervalued by the markets. The Fund invests in large-, mid-, and small-capitalisation companies and diversifies its assets in countries across developed and emerging markets.
As a result of Vanguard’s performance-based fee arrangements, the Fund’s expense ratio is expected to increase 1 basis point to 0.38 per cent, well below the average asset-weighted expense ratio of 0.98 per cent for foreign large value funds[i].
With more than USD1.6 trillion in active assets, Vanguard is one of the largest providers of actively managed funds in the world. Vanguard’s philosophy on active management is rooted in its commitment to partnering with top-tier advisors—both internal and external—and taking a long-term, disciplined approach to investing to give investors the best chance of success in achieving their investment goals.