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Vanguard awards global equity mandate

Vanguard has awarded a US$3.4 billion mandate to a boutique fund manager, replacing Franklin Templeton subsidiary Edinburgh Partners.

Sprucegrove Investment Management will manage about 35% of the Vanguard International Value Fund, which has US$9.8 billion in assets under management.

Lazard Asset Management and ARGA Investment Management are co-managers of the fund, which invests in global companies from developed and emerging markets viewed as temporarily undervalued.

The US-domiciled fund's expense ratio is expected to increase one basis point to 0.38%.

The head of Vanguard's portfolio review department Kaitlyn Caughlin said: "Vanguard has decades of experience in selecting and partnering with active managers. We continuously search for world-class investment talent that brings a particular expertise and experience to specific mandates."

Vanguard has some US$1.6 trillion in active assets and manages US$6.6 trillion globally.

Toronto-based boutique asset manager Sprucegrove employs a value-investment strategy and has US$13.8 billion in AUM. Arjun Kumar and Shirley Woo will co-manage Sprucegrove's portion of the fund.

Franklin Templeton acquired Scottish fund manager Edinburgh Partners on 1 May 2018.

Edinburgh Partners was co-founded by Sandy Nairn, who became chair of the Templeton Global Equity Group after the acquisition.

Read more: VanguardEdinburgh PartnersFranklin TempletonSprucegrove Investment ManagementARGA Investment ManagementArjun KumarKaitlyn CaughlinLazard Asset ManagementSandy NairnShirley WooTempleton Global Equity Group
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