Oct. 8 (Bloomberg) -- Mitchell J. Milias, co-founder and chairman of Primecap Management Co., will step down at the end of the year as co-manager of three Vanguard Group Inc. funds with combined assets of more than $42 billion.
Joel P. Fried, Theo A. Kolokotrones, Alfred W. Mordecai and M. Mohsin Ansari, co-managers of the $36.2 billion Vanguard Primecap Fund, the $5.8 billion Vanguard Primecap Core Fund and the $574.8 million Vanguard Variable Insurance Fund’s Capital Growth Portfolio, will take over most of the money overseen by Milias, Valley Forge, Pennsylvania-based Vanguard said today in a statement. Milias, 71, will remain with Primecap in a management and client-relationship role, Vanguard said.
“We have full confidence in the talented co-managers and analysts at Primecap who will oversee these funds going forward,” Bill McNabb, Vanguard’s chairman and chief executive officer, said in the statement.
Vanguard Primecap returned an annual average of 14 percent in the five years through yesterday, beating 60 percent of competing funds. Primecap Core had a 15 percent annual return in that time, beating 85 percent of peers. A portion of the assets overseen by Milias will be run by Primecap’s research department.
Vanguard, known for its index-based funds, contracts with 31 outside asset managers to run many of its actively managed offerings. Vanguard has about $2.3 trillion in U.S. fund assets.
--Editors: Sree Vidya Bhaktavatsalam, Christian Baumgaertel