Vanguard hired Frontier Capital Management and Kalmar Investment Advisers to manage 20 percent of the $6.4 billion Vanguard Morgan Growth Fund. The two replace Franklin Portfolio Associates in the sub-advisor lineup, which also includes Wellington Management Company, Jennison Associates and Vanguard Quantitative Equity Group.

This marks the first Vanguard sub-advisory mandate for Boston-based Frontier. For its part, Wilmington-based Kalmar has served as a sub-advisor to Vanguard Explorer Fund since 2005.

"We are confident that the two new firms, with their emphasis on mid-cap stocks, will serve as great complements to the existing advisory team," said Vanguard CEO Bill McNabb.

Company Press Release

VALLEY FORGE, Pa., Nov 25, 2008 (BUSINESS WIRE) -- The board of trustees of Vanguard Morgan(TM) Growth Fund has named two new firms to the fund's investment advisory team. Frontier Capital Management Co., LLC, and Kalmar Investment Advisers have replaced Franklin Portfolio Associates, LLC, in managing approximately 20% of the $6.4 billion fund. This will be the first Vanguard fund advisory assignment for Frontier, a Boston-based investment management company with about $4.8 billion in assets. The firm employs a fundamental, research-intensive approach that seeks stocks of mid-sized companies with a combination of superior growth potential and attractive valuation. Frontier is owned jointly by its management team and Affiliated Managers Group.

Kalmar, based in Wilmington, Delaware, has more than $2.7 billion in assets under management and has served as an investment advisor to Vanguard Explorer(TM) Fund since 2005. In managing its portion of Morgan Growth Fund, Kalmar follows a fundamental strategy to identify undervalued mid-capitalization stocks of solid, well-managed companies.

"Morgan Growth Fund was one of the first Vanguard funds to adopt a multimanager approach, and shareholders have been well-served by the fund's blending of the distinctive growth strategies of its advisors," said Vanguard CEO F. William McNabb III. "We are confident that the two new firms, with their emphasis on mid-cap stocks, will serve as great complements to the existing advisory team."

Frontier and Kalmar join Wellington Management Company, LLP, Jennison Associates LLC, and Vanguard Quantitative Equity Group in the management of the fund.

Stephen Knightly, CFA, serves as the portfolio manager for Frontier's portion of the fund. Mr. Knightly is a senior vice president at Frontier and has 19 years of experience in investment management. He has a B.S. degree from Lehigh University and an M.B.A. degree from The Wharton School at the University of Pennsylvania.

Ford B. Draper, Jr., serves as the portfolio manager for Kalmar's portion of the fund. Mr. Draper is president and chief investment officer of Kalmar. He has 41 years of experience in the investment management industry. Mr. Draper earned a B.A. degree from Yale University and an M.B.A. degree from Columbia University.

Vanguard has successfully employed the multimanager approach since 1987. Today, 14 of Vanguard's 29 actively managed stock funds are multimanaged. Vanguard has relationships with 28 distinguished external advisory firms from around the world.

About Vanguard

Vanguard, headquartered in Valley Forge, Pennsylvania, is one of the world's largest investment management companies and a leading provider of company-sponsored retirement plan services. Vanguard manages more than $1 trillion in U.S. mutual fund assets, including nearly $390 billion in employer-sponsored retirement plans. Vanguard offers more than 150 funds to U.S. investors and more than 50 additional funds in non-U.S. markets. All asset figures are as of October 31, 2008, unless otherwise noted.

Edited by: Armie Margaret Lee

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