Should You Worry About These 8 Vanguard Manager Changes?
The recent spate of changes doesn't mean its time to man the lifeboats.
By the end of February, after Vanguard had announced manager changes to eight mutual funds and the selection of a new CEO over the course of two weeks, I had to do a double take. Was I covering Vanguard or Fidelity Investments? Normally, Vanguard's Boston-based rival is the one known for issuing fusillades of personnel changes and executive reorganizations. Maybe I got on the wrong e-mail list?
Nope. The telltale ship-of-the-line logos on the press releases, preponderance of nautical terms, and Anglophilic fund names confirmed it. It was indeed Vanguard. But what was going on? Why, to stick with the maritime theme, was everyone abandoning ship?
Well, you can stow away your life jacket. Granted, a spate of manager and executive changes like this can raise red flags, and that's true of some of the recent Vanguard changes. However, shareholders shouldn't notice much of a change at most of the funds getting new managers.
Dan Culloton has a position in the following securities mentioned above: VGPMX. Find out about Morningstar’s editorial policies.