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McNabb on the Hunt for Talent

Bill NcNabb discusses Vanguard's process of vetting subadvisors and searching for emerging talent.


Dan Culloton: You recently added a sub-advisor to a fund that we like a lot, Vanguard International Explorer. What's the hurdle? When do you decide that when you have a successful fund that it needs another manager or another manager can add or help that fund?

McNabb: Yes. So there is a little science and a little art, as you would imagine. So, we've watched that fund grow. It's attracting a pretty strong following. The manager has done a really terrific job, and we were reaching a point the manager hadn't raised his hand yet and said it's time to cut back. But we'd had discussions that if we got to certain asset levels, we'd at least have to think about closing the fund or restricting new purchases pretty dramatically.

Dan Culloton does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.