News release

Vanguard to Streamline Value Fund Lineup with Planned Merger

VALLEY FORGE, PA (March 23, 2020)—Vanguard has announced plans to merge the $770 million Vanguard Capital Value Fund into the $17.6 billion Vanguard Windsor Fund. Following the merger, which is expected to be completed in mid-2020, the combined fund will retain the Windsor Fund name and continue to focus on large- and mid-capitalization value stocks.

The combined fund will continue to be managed by Wellington Management Company LLP (approximately 70% of assets) and Pzena Investment Management, LLC (approximately 30% of assets). David Palmer, CFA, manages Wellington Management’s portion of Windsor Fund and is currently the sole portfolio manager of Capital Value Fund. The Pzena team, along with Mr. Palmer, will oversee the combined fund.

“We apply a rigorous and comprehensive evaluation process to the oversight of our funds and advisors to ensure we are offering sound, enduring solutions that meet the long-term needs of our clients,” said Matt Brancato, head of Vanguard’s Portfolio Review Department. “We believe this merger will benefit Capital Value Fund shareholders by providing them with exposure to the two outstanding investment advisors managing the Windsor Fund and will benefit the combined fund through improved economies of scale.”

The expense ratios of Windsor Fund—0.30% for Investor Shares and 0.20% for Admiral Shares—are not expected to change as a result of the merger. Following the merger, shareholders who are eligible for Admiral Shares may request a self-directed conversion at any time. Those who qualify for Investor Shares will experience an increase of one basis point. Notably, the expense ratio of Capital Value Fund is currently lower than that of the Windsor Fund’s Investor Shares, reflecting a performance-based investment advisory fee decrease of 17 basis points. Absent incentive/penalty adjustments, the advisor fees of Windsor Fund are lower than those of Capital Value Fund.

Vanguard has a long track record of product leadership and making changes that are in the best interest of shareholders, including merging funds, changing advisors, modifying mandates, and closing and liquidating funds. Over the past 12 months, the firm announced changes to Vanguard Managed Payout Fund; reopened Vanguard Dividend Growth Fund; modified the advisory teams of its Vanguard Windsor II Fund, Vanguard Selected Value Fund, and Vanguard Variable Insurance Fund-Diversified Value Portfolio; introduced three new funds; reduced fund and ETF expenses; and entered a strategic partnership to provide qualified investors access to private equity.

Vanguard: An Active Leader

Vanguard is one of the largest active fund companies in the world, with $1.4 trillion in actively managed assets: $620 billion is managed by external advisors, $743 billion is managed by the Vanguard Fixed Income Group; and $37 billion is managed by the Vanguard Quantitative Equity Group.

The firm’s global scale enables it to continually access superior active talent and deliver strong performance. As of December 31, 2019, 81% of Vanguard’s active funds outperformed their peer averages over the past three years, 88% outperformed over five years, and 90% outperformed over ten years, according to Lipper1.

The firm first adopted a multi-manager approach in 1987 and currently partners with 26 of the world’s top asset managers to oversee a full roster of active stock, balanced, and bond mandates. Vanguard believes the combination of high-caliber investment management teams with different but complementary strategies can reduce portfolio volatility, provide potential for long-term outperformance, and mitigate manager risk. Notably, Vanguard negotiates fee schedules with advisors at levels well below industry averages and employs performance-based incentive/penalty arrangements that align the interests of advisors and shareholders. Under these arrangements, the advisor’s base advisory fee is adjusted up or down to reflect the fund’s investment performance relative to the return of an appropriate market benchmark. This is a key differentiator in the industry; less than 3% of all mutual funds use this structure.


About Vanguard

Vanguard is one of the world’s largest investment management companies. As of February 29, 2020 Vanguard managed $5.9 trillion in global assets. The firm, headquartered in Valley Forge, Pennsylvania, offers 425 funds to its more than 30 million investors worldwide. For more information, visit

For more information about Vanguard funds, visit to obtain a prospectus or, if available, a summary prospectus. Investment objectives, risks, charges, expenses, and other important information about a fund are contained in the prospectus; read and consider it carefully before investing.

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Vanguard Marketing Corporation, Distributor.

1 For the ten-year period ended December 31, 2019, 86 of 96 Vanguard active funds outperformed their peer group averages; for the five-year period, 88 of 100 funds outperformed; and for the three-year period, 87 of 108 funds outperformed; results will vary for other time periods. Only funds with a minimum ten-, five-, and three-year histories were included in the comparisons. Note that the competitive performance data shown represent past performance, which is not a guarantee of future results, and that all investments are subject to risks. For the most recent performance, visit our website at