Vanguard Collaborates with T. Rowe Price for Enhanced Active Equity Fund Management

Vanguard Collaborates with T. Rowe Price

In a significant move announced on June 29, 2026, Vanguard has restructured its investment advisory approach for three of its active equity funds. The Vanguard Explorer Fund, the Vanguard Variable Insurance Fund - Small Company Growth Portfolio, and the Vanguard Growth and Income Fund will now include T. Rowe Price Associates, Inc. as an advisory partner. This partnership is aimed at enhancing the management of these funds through T. Rowe Price's extensive expertise in active equity investing, known for their research-driven methodologies.

T. Rowe Price brings almost 90 years of investment experience and has built a reputation for fundamental research that drives effective investment decisions. Dan Reyes, the Global Head of Investment Product at Vanguard, expressed enthusiasm over this collaboration, highlighting T. Rowe Price's commitment to consistent performance as a valuable addition to Vanguard's lineup of advisors. "Their fundamental research and proven track record make them a perfect complement to our existing advisory resources", he noted, emphasizing the shared goal of achieving favorable long-term outcomes for investors.

Vanguard's decision to include T. Rowe Price in its advisory structure is a strategic step towards reinforcing the integrity and performance of its funds. Vanguard's investment strategy has traditionally used a multi-manager model, allowing for the allocation of assets across a range of qualified advisors while maintaining oversight over performance metrics and risk management. The integration of T. Rowe Price into this framework signifies a continued commitment to high-quality asset management.

As part of this adjustment, Vanguard will discontinue its advisory relationship with ArrowMark Colorado Holdings, LLC for the Explorer Fund and the Small Company Growth Portfolio. Similarly, Los Angeles Capital Management LLC will no longer provide advisory services for the Growth and Income Fund. Changes will also occur regarding the allocation of other current advisors, particularly in the Explorer Fund, to increase the emphasis on growth-oriented investment styles without compromising risk awareness.

T. Rowe Price plans to implement tailored strategies for each fund. For the Explorer Fund and the Small Company Growth Portfolio, a small- and mid-cap growth strategy will be employed, which benefits from T. Rowe Price's robust research capabilities and quantitative evaluations. This structured approach focuses on acquiring stocks with strong growth prospects at reasonable prices, evaluated based on various performance metrics.

Conversely, the Growth and Income Fund will adopt a strategy leveraging T. Rowe Price's extensive analyst network alongside a disciplined framework aimed at delivering consistent, selection-driven returns. Analysts will curate portfolios specific to their covered industries, facilitating informed stock selection based on thorough research.

The adjustments come alongside anticipated increases in expense ratios for the Growth and Income Fund, which will rise slightly, and for the Small Company Growth Portfolio, indicating a shift towards enhancing advisory quality. However, the expense ratio for the Explorer Fund will not see any changes.

In conclusion, this collaboration is a testament to Vanguard's dedication to providing superior investment management options, combining T. Rowe Price's esteemed expertise with its strong, investor-focused philosophy. The changes are endorsed by the Boards of Trustees following comprehensive evaluations, ensuring they are in the best interest of Vanguard's shareholders for sustainable future growth.

About Vanguard

Established in 1975, Vanguard stands as a leading investment management firm, serving tens of millions of investors worldwide through a unique investor-owned structure. The firm’s mission is to advocate for investor interests, ensuring transparent, fair investment opportunities.

About T. Rowe Price

With approximately $1.89 trillion in assets under management and a legacy of investment excellence since 1937, T. Rowe Price harnesses deep market insights fostering investment success for clients globally. Their persistent commitment to research-driven strategies reinforces their status as a formidable partner in managing investments efficiently.