Shareholders of the Vanguard International Value Fund can expect to lose a greater percentage of their returns to tax distributions and costs associated with portfolio reallocation as a result of the firm's decision late last month to replace the fund's adviser, according to industry consultants and analysts.

The Vanguard Group of Malvern, Pa. announced July 28 that it fired Phillips & Drew of London, the fund's sub-adviser. The sub-adviser was replaced August 1 by Hansberger Global Investors of Fort Lauderdale, Fla. Vanguard reached its decision after the fund's board of directors reviewed Phillips & Drew's investment process and philosophy, the fund's performance and the firm's research and analysis procedures, according to John Demming, a Vanguard spokesperson.

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