Vanguard today announced modifications to the investment advisory arrangements of the $317 million Explorer Value Fund (VEVFX). Sterling Capital Management LLC will no longer serve as an advisor to the fund. The portion of the portfolio formerly managed by Sterling (approximately 31% of fund assets) has been equally apportioned to existing managers Frontier Capital Management Co., LLC and Cardinal Capital Management, L.L.C.

Vanguard Explorer Value Fund is a small- and mid-capitalization value fund, and the investment objective and principal investment strategies of the fund will remain the same. The expense ratio of the fund is not expected to increase as a result of the advisory change.

The fund has employed a multi-manager structure since its inception in 2010. Its current managers, Cardinal, headquartered in Greenwich, CT, and Frontier, headquartered in Boston, MA, specialize in small- and mid- cap investing.

Vanguard believes the combination of high-caliber investment management teams with differentiated but complementary strategies can reduce portfolio volatility, provide potential for long-term outperformance, and mitigate manager risk. The multi-manager approach was first adopted by Vanguard in 1987, and 18 of Vanguard's actively managed U.S.-domiciled equity funds currently employ this structure.

About Vanguard

Vanguard is one of the world's largest investment management companies. As of May 31, 2016, Vanguard managed more than $3.5 trillion in global assets. The firm, headquartered in Valley Forge, Pennsylvania, offers more than 325 funds to its more than 20 million investors worldwide. For more information, visit vanguard.com.