Fund Spy

What an Impending Manager Change Means for Venerable Vanguard Wellington

Patricia Oey
The following is our latest Fund Analyst Report for Vanguard Wellington (VWELX). Morningstar Premium Members have access to full analyst reports such as this for more than 1,000 of the largest and best mutual funds. Not a Premium Member? Gain full access to our analyst reports and advanced tools immediately when you try Morningstar Premium free for 14 days.

An experienced team employing a time-tested, risk-aware process, combined with low fees, underlie Vanguard Wellington's Morningstar Analyst Rating of Gold.

Edward Bousa has led the equity portion of this balanced fund for more than 16 years, and John Keogh has led the bond portfolio for 12 years. Both have ably served as stewards of this 90-year-old fund that has long employed a conservative, quality-focused process. Keogh is retiring in June 2019 and will pass the reins to seasoned colleagues Michael Stack and Loren Moran, who have worked together on Keogh's team since 2014 and became named managers here in January 2017. This measured transition gives us confidence that the change will be a smooth one. On the equity side, Daniel Pozen was promoted to comanager in March 2019, which suggests that Bousa, who is around 60 years old, is probably considering retirement in the coming years. Pozen has been on Bousa's team since 2015 and is currently a sole manager on a global-equity UCITS. We would expect a similarly paced transition on the equity side.

Patricia Oey does not own shares in any of the securities mentioned above. Find out about Morningstar's editorial policies.