Vanguard recently removed its in-house Quantitative Equity Group as one of this strategy’s two subadvisors; Wellington Management Company is now responsible for the entire portfolio. The Quantitative Equity Group was running only around 5% of the strategy’s assets when Vanguard removed it, so its departure should not have a major impact on the portfolio. Meanwhile, Tom Levering, who took over as the skipper of Wellington’s roughly 95% of the strategy's assets earlier this year, is now the sole manager. Levering hasn’t run an energy strategy before, but he has solid credentials overall and has strong support. And Levering and his team continue to employ a sound, long-term-oriented, bottom-up process. Thus, the strategy continues to merit an Average People rating, an Above Average Process rating, and both of its share classes continue to earn Morningstar Analyst Ratings of Bronze.
Will VGENX outperform in future?
Get our overall rating based on a fundamental assessment of the pillars below.
The Process Pillar is our assessment of how sensible, clearly defined, and repeatable VGENX’s performance objective and investment process is for both security selection and portfolio construction.
The People Pillar is our evaluation of the VGENX management team’s experience and ability. We find that high-quality management teams deliver superior performance relative to their benchmarks and/or peers.
The Parent Pillar is our rating of VGENX’s parent organization’s priorities and whether they’re in line with investors’ interests.