VALLEY FORGE, PA — Vanguard said it is overhauling the investment advisory lineups for Vanguard Windsor II Fund and the Vanguard Variable Insurance Fund – Diversified Value Portfolio, removing Lazard Asset Management and reallocating assets to new and existing managers.
Under the changes, Lazard will no longer manage assets for either fund. Vanguard will shift Windsor II’s assets previously overseen by Lazard to Harris Associates, operating as Harris | Oakmark, while assets in the variable insurance fund will be split between Harris | Oakmark and Aristotle Capital Management.
Vanguard said the moves are expected to increase each fund’s expense ratio by 0.02 percentage points.
For Windsor II, Lazard’s 25 percent target allocation will be reassigned entirely to Harris | Oakmark. The remaining allocations will stay unchanged, with Hotchkis and Wiley Capital Management, Sanders Capital, and Aristotle Capital each maintaining 25 percent target weights.
In the variable insurance fund, Lazard’s 60 percent allocation will be divided evenly between Harris | Oakmark and Aristotle Capital at 30 percent each. Hotchkis and Wiley will retain its 40 percent allocation. Over time, Vanguard plans to use organic cash flows to move the portfolio toward an even one-third allocation across the three managers.
Harris | Oakmark becomes a new advisor to Vanguard through the change. The Chicago-based firm, founded in 1976, managed $97 billion in assets as of September 30, 2025. The firm follows a value-oriented strategy, investing in companies it believes are trading below intrinsic value based on bottom-up fundamental research.
The Harris | Oakmark portfolio management team will be led by William Nygren, the firm’s chief investment officer for U.S. strategies, along with partners Robert Bierig and Michael Nicolas. The trio oversees several large-cap value strategies and Oakmark-branded funds.
Aristotle Capital, which has advised Windsor II since 2019, expands its role by joining the variable insurance fund for the first time. The privately owned firm focuses on active equity and fixed income management with an emphasis on high-quality businesses and long-term investing.
Vanguard said the decision followed ongoing reviews by its manager research team, which evaluates advisors based on long-term investment drivers rather than short-term performance. The trustees overseeing the funds said they believe the changes are in the best interests of current and future shareholders.
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