Vanguard Removes Oaktree as Emerging Markets Fund Advisor

Vanguard has removed Oaktree Fund Advisors as an investment advisor for the Vanguard Emerging Markets Select Stock Fund and split its allocation among two other fund advisors — Baillie Gifford Overseas and Pzena Investment Management.

The giant asset manager said Monday it also shaved the fund’s expense ratio as a result, effective immediately.

According to Vanguard, its manager research team conducts ongoing reviews of current and prospective investment advisors, looking beyond short-term performance to focus on long-term success for investors. As part of this process, it recently decided that advisory structural changes would best serve fund shareholders.

Under the new structure, Baillie Gifford and Pzena will each be allocated 37.5% of the $785 million of assets in the Emerging Markets Select Stock Fund (ticker FEMAX), while Wellington Management will be allocated 25%.

As a result of these changes, Vanguard said, the asset manager has trimmed the fund’s expense ratio to 0.79% from 0.80%.