Three of Vanguard's funds are getting a second manager, the firm announced Monday.

The firm has allocated 25 to 30 percent of $7.3 billion U.S. Growth Fund and $379 million Variable Insurance Fund-Growth Portfolio to William Blair & Company, leaving 70 to 75 percent with Alliance Capital Management. 70 to 75 percent of the $1.9 billion in assets in the International Value Fund will continue to be managed by Hansberger Global Investors and the remainder will be managed by Sanford C. Bernstein, a subsidiary of Alliance Capital.

The firm has already reallocated assets for the Growth and Variable Insurance Fund; it will complete the change for the International Value Fund in the next few months, said company spokeswoman Rebecca Cohen.

"As in other cases, adopting a multimanager investment advisory approach enables us to enhance the funds' management by bringing together highly capable, but distinctive, teams," said Vanguard Chairman and CEO John J. Brennan.

Through the multimanager approach, the firm seeks to add diversity in each fund's management structure, diversity in the fund itself, and to reduce overall risk, said Cohen.

Out of Vanguard's 30 actively managed stock funds, 12 have multiple managers, according to the company's press release. Vanguard's board of trustees is always on the lookout for investment managers that would be a "good fit" with their available funds, said Cohen. The firm has an internal portfolio review group that conducted the investment manager search, Cohen added.

Vanguard does not anticipate a "material" change in the expense ratios of the three funds as a result of the manager additions. The new subadvisors will be compensated like most of the firm's subadvisors -- on an "incentive penalty fee" basis, where their long-term performance will be compared to a benchmark, Cohen said.

Principals James (Rocky) L. Barber, John F. Jostrand, and Norbert W. Truderung at William Blair will manage the Vanguard assets.

At Sanford Bernstein, Kevin F. Simms and Henry S. D'Auria, Co-Chief Investment Officers-International Value Equities, will co-manage the firm's portion. 

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