The Vanguard Group will add a new actively managed equity fund to the 19 managed funds it offers. The Capital Value Fund's investment adviser will be Wellington Management, which will select small-, mid- and large-cap stocks that it considers "undervalued or out-of-favor," the company said in a statement.

The fund's portfolio manager will be Charles Freeman and David Fassnacht will be assistant portfolio manager, both Wellington veterans who perform the same functions for the 75% of the Vanguard Windsor fund that Wellington manages.

Vanguard has five other actively managed value funds, including the Windsor and Windsor II, but none of those funds include small-cap stocks. Among Vanguard's index funds is the Small-Cap Value Index Fund, which tracks the Standard & Poor's SmallCap600/ BARRA Value Index, made up of stocks with lower-than-average price-to-book ratios.

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