Vanguard to Launch Small-Cap Equity Fund

The Vanguard Group has filed a statement with the Securities and Exchange Commission to offer the Vanguard Strategic Small-Cap Equity Fund. Vanguard's quantitative equity group, under the leadership of James P. Stetler, will actively mange the stock fund, making it only the second Vanguard fund ever to be actively managed.

The new fund will seek to provide long-term capital appreciation, and will do so by investing in U.S. small-cap stocks.

"Over the past 15 years, we have continually developed our quantitative equity management resources and refined our value-added models. We are pleased to have the opportunity to manage the Vanguard Strategic Small-Cap Equity Fund and look forward to applying our active management expertise and experience," said Vanguard Chief Investment Officer Gus Sauter.

The new fund will require a minimum $3,000 initial investment for retail and IRA accounts. The fund will be available for investors in the second quarter.

In addition to announcing the launch of its new fund, Vanguard is also announcing changes in the portfolio management of some of its equity funds. Chartwell Investment Partners will join Provident Investment Counsel in managing a $620 million Vanguard Mid-Cap Growth Fund. Wellington Management Company will be managing the Vanguard Dividend Growth Fund. And James Troyer, a member of Vanguard's quantitative equity group, will manage the Vanguard Strategies Equity Fund.