Vanguard has added Pzena Investment Management to the management team of Vanguard Selected Value Fund.
Pzena joins two other investment advisors in managing the USD8.5bn mid-cap value fund, which has used a multi-manager approach since 2005.
Pzena currently provides investment advisory services to three other Vanguard funds. Vanguard established a relationship with Pzena in 2005, when it selected the New York-based firm to manage Vanguard US.
“We are pleased to deepen our partnership with Pzena,” says Vanguard CEO Bill McNabb. “The firm features an impressive investment team and disciplined approach to value investing. The Selected Value Fund has employed a multi-manager approach for some time, and we expect the fund will benefit from the addition of Pzena to the advisory team.”
Rich Pzena, Pzena’s chief executive officer and co-chief investment officer, will serve with Manoj Tandon and Eli Rabinowich as portfolio managers. Pzena uses a fundamental, bottom-up, deep-value-oriented investment strategy. The firm seeks to buy good businesses at low prices, focusing exclusively on companies that are underperforming their historically demonstrated earnings power.