News release

Vanguard Announces Advisory Changes For Two Active Equity Funds

VALLEY FORGE, PA (January 19, 2016)—Vanguard today announced new investment advisory arrangements for the $11.7 billion Vanguard Morgan Growth Fund and the $11 billion Vanguard Explorer Fund.

Explorer Fund

Vanguard Explorer Fund, a small-cap growth fund, has employed a multi-manager structure since 1990. The fund will now use seven advisors, with Century Capital Management, LLC, no longer serving as an advisor to the fund. Assets formerly managed by Century (approximately 7%) have been apportioned to Arrowpoint Partners, Vanguard Quantitative Equity Group, and Stephens Investment Management Group, LLC, which currently serve as advisors to the fund. 

Allocation of assets among advisors is expected to be: Wellington Management Company LLP, 29%; Kalmar Investment Advisers, 16%; Granahan Investment Management, Inc., 15%; Arrowpoint, 11%; Vanguard, 11%; Stephens, 11%; and Chartwell Investment Partners, LLC, 7%.

Morgan Growth Fund

Vanguard Morgan Growth Fund will be now be managed by four advisory teams, with Kalmar Investment Advisers no longer serving as advisor to the fund. Current management teams Jennison Associates LLC, Frontier Capital Management Co., LLC, and Vanguard Quantitative Equity Group assumed responsibility for the assets previously managed by Kalmar (approximately 9%).

The large- and mid-cap growth fund has been multi-managed since 1990, and following the transition, the allocation is expected to be as follows: Wellington, 48%; Jennison, 22%; Frontier, 15%; and Vanguard, 15%.

The multi-manager approach was first adopted by Vanguard in 1987, and 18 of Vanguard’s actively managed U.S.-domiciled equity funds currently employ this structure. Vanguard believes the combination of high-caliber investment management teams with differentiated but complementary strategies can reduce portfolio volatility, provide potential for long-term outperformance, and mitigate manager risk.

About Vanguard

Vanguard is one of the world’s largest investment management companies. As of December 31, 2015, Vanguard managed more than $3.4 trillion in global assets. The firm, headquartered in Valley Forge, Pennsylvania, offers more than 315 funds to its more than 20 million investors worldwide. For more information, visit


All asset figures as of December 31, 2015, unless otherwise noted.

For more information on Vanguard funds, visit, or call 800-662-7447 to obtain a prospectus. Investment objectives, risks, charges, expenses, and other important information are contained in the prospectus; read and consider it carefully before investing.

All investing is subject to risk, including the possible loss of the money you invest. Diversification does not ensure a profit or protect against a loss.

Vanguard Marketing Corporation, Distributor.