American investment adviser Vanguard is set to merge $770m Vanguard Capital Value Fund into the $17.6bn Vanguard Windsor Fund in a bid to streamline value fund lineup.
The merger is expected to close in mid-2020.
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One complete, the combined fund will focus on large- and mid-capitalisation value stocks.
Wellington Management Company and Pzena Investment Management will manage 70% and 30% of the assets, respectively.
Vanguard Portfolio Review Department head Matt Brancato said: “We apply a rigorous and comprehensive evaluation process to the oversight of our funds and advisers to ensure we are offering sound, enduring solutions that meet the long-term needs of our clients.
“We believe this merger will benefit Capital Value Fund shareholders by providing them with exposure to the two outstanding investment advisers managing the Windsor Fund and will benefit the combined fund through improved economies of scale.”
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By GlobalDataThe expense ratios of the combined Windsor Fund are expected to remain same. Currently, the figure stands at 0.30% for Investor Shares and 0.20% for Admiral Shares.
Based in Pennsylvania, Vanguard has around $1.4trn in actively managed assets.
In the last 12 months, the company has announced several adjustments including changes to Vanguard Managed Payout Fund and reopening Vanguard Dividend Growth Fund. It has also introduced three new funds over the same time period.
In January, Vanguard secured approval to launch a retail investment advice service in the UK.
