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Fund Times

Vanguard Windsor II Says Goodbye to Armstrong Shaw

Vanguard deep-sixes the subadvisor, which had managed about 4% of Vanguard Windsor II's assets, and increases subadvisor Hotchkis & Wiley's sleeve of the fund.

Mentioned:

Vanguard recently announced that it has released subadvisor Armstrong Shaw Associates from managing a small portion of the Silver-rated, $47.6 billion                Vanguard Windsor II (VWNAX). Portfolio manager Jeffrey Shaw had been one of several managers on the fund, serving from Jan. 4, 2006, until March 3, 2014.

It's difficult to tell what impact Shaw had on the portfolio's performance. However, his firm's separate account had struggled overall during the past decade when compared with the S&P 500 Index and other large-blend accounts, typically suffering worse results during times of strife. (The separate account is an appropriate proxy, because Armstrong Shaw offers just one strategy.) Meanwhile, the small firm carries significant key-person risk. Armstrong Shaw has just three analysts, according to its website--two of whom have been hired since 2008--while Jeffrey Shaw has amassed a 30-year career at this point.

Bridget B. Hughes does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.