Vanguard's $2 billion International Explorer has gone the multi-manager route. The Valley, Forge, Pennsylvania-based firm installed Wellington Management as the second sub-advisor to the fund, joining Schroder Investment Management, which has managed the fund since its birth in 1996.

Wellington manages nearly $180 billion across 16 Vanguard mutual funds. Boston-based Wellington has a total of more than $530 billion in AUM.

"The challenging financial markets over the past several years have resulted in increased capacity at many advisors, affording Vanguard greater opportunity to enter into relationships with new investment firms and deepen relationships with existing advisors," Vanguard officials said Wednesday.

This year, Vanguard formed relationships with Cardinal Capital Management, LLC, Sterling Capital Management LLC, and Sanders Capital, LLC. Vanguard in recent years also deepened ties with Jennison Associates and Frontier Capital Management Co.

Company Press Release

VALLEY FORGE, PA, June 9, 2010�The board of trustees of Vanguard International Explorer� Fund has approved adoption of a multimanager structure and the addition of Wellington Management Company, LLP, to the fund's investment advisory team. Wellington joins Schroder Investment Management North America Inc., which has advised the $2billion international small-capitalization fund since its inception in 1996.

Overseeing Wellington's portion of the fund will be a four-person investment team led by Simon H. Thomas, who has worked on the firm's international small-cap equity team since joining Wellington in 2002. The team uses a bottom-up investment process to identify stocks whose prices do not reflect their long-term growth potential or are priced at a discount to their true value. The team's philosophy is based on the belief that global equity markets are inefficient, and it aims to exploit these inefficiencies through active stock selection.

"We are very pleased to appoint long-time partner Wellington Management and its talented international small-cap equity team to manage a portion of Vanguard International Explorer Fund," said Vanguard Chairman and CEO Bill McNabb.

Founded in 1928, Wellington is among the nation�s oldest and most respected institutional investment managers. Wellington currently advises nearly $180 billion across 16 Vanguard mutual funds among its more than $530 billion in assets under management.

The challenging financial markets over the past several years have resulted in increased capacity at many advisors, affording Vanguard greater opportunity to enter into relationships with new investment firms and deepen relationships with existing advisors. New relationships have been established with Cardinal Capital Management, L.L.C., and Sterling Capital Management LLC, which oversee Vanguard Explorer Value Fund, launchedin March 2010; as well as Sanders Capital, LLC, which was added to the investment advisory team of Vanguard Windsor II Fund in January 2010. Vanguard expanded its relationship with Jennison Associates LLC, by naming the firm as an advisor to Vanguard Growth Equity Fund in January 2009, as well aswith Frontier Capital Management Co., LLC, which began serving as an advisor to the new Explorer Value Fund.

"Vanguard is committed to the multimanagerstructure, as it can provide greater diversification at the fund level to temper sector and stock risk, and at the fund management level to mitigate manager risk," said Mr. McNabb. "We will continue to seek advisors who bring experience and expertise to new mandates or whose approach complements the investment teams of existing funds."

The addition of Wellington Management is not expected to materially change Vanguard International Explorer Fund�scharacter as a primarily small-cap offering of non-U.S. equity securities. Wellington will initially manage an allocation from the fund's current cash position, and will be allocated a portion of new cash flow.

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 nearly $1.4 trillion in U.S. mutual fund assets. Vanguard offers more than 160 funds to U.S. investors and more than 50 additional funds in non-U.S. markets.

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