The Vanguard Group has hired the Armstrong Shaw Associates to co-manage its Windsor II Fund.

Armstrong Shaw adds to five other advisors running the fund, which has assets of $41.4 billion. The fund primarily invests in undervalued stocks of medium-sized and large companies.

In a statement, Vanguard said it will give a modest portion of the fund’s current cash position to Armstrong Shaw in order to minimize any tax impact to shareholders. Also, it will give a portion of the new cash flow received by the fund to the New Canaan, Connecticut-based firm.

Vanguard likewise said that the addition of Armstrong Shaw is not expected to create a significant dent on the fund’s expense ratio, currently estimated at 0.36 percent for Investor Shares.

The Windsor II Fund is one of 11 Vanguard funds for which the Valley Forge, Pennsylvania-based firm employs a multimanager strategy.

The fund’s other managers are Barrow, Hanley, Mewhinney and Strauss, Inc.; Equinox Capital Management, LLC; Hotchkis and Wiley Capital Management, LLC; Tukman Capital Management, Inc.; and Vanguard. 

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