New Leadership at One of Our Funds
Vanguard recently announced that longtime manager Michael Reckmeyer will retire in June.


Some fund manager changes concern us less than others. When two longtime managers of Vanguard Equity-Income (VEIPX), a member of the Kiplinger 25, the list of our favorite no-load mutual funds, retired last year, we weren't bothered.
The departing managers were part of Vanguard's quantitative equity group, which uses a computer algorithm to choose stocks. Plus, the quant group runs just one-third of the fund's assets.
But recently, Vanguard announced that Michael Reckmeyer, the Wellington Management portfolio manager who has run two-thirds of the fund's assets since 2007, would retire at the end of June. And that has us on guard.

Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
Reckmeyer is a masterful dividend-stock investor. Since he stepped in as a portfolio manager at Equity-Income in 2007, the fund's 9.2% annualized return has beaten the 8.8% average annual gain in its benchmark, the FTSE High Dividend Yield index. He favors high-quality firms that pay increasingly higher dividends over time. The fund currently yields 2.28%.
In October, Vanguard named Matthew Hand a co-portfolio manager of the fund. He will take over as sole manager when Reckmeyer retires.
The Leadership Shift was Given a Long Runway
This transition has been in motion for years, says Reckmeyer. Back in 2018, Hand, then a 14-year veteran member of Equity-Income's analyst team, shed some of his analytical duties so he could work more closely with Reckmeyer and learn the art of portfolio building and risk management.
Hand says he expects that much will stay the same at Equity-Income. "Mike and I both grew up at Wellington. We are extraordinarily aligned and share the same investment philosophy," he says.
Both say the fund's investing process evolves over time. When Reckmeyer became manager in 2007, for instance, he initiated a regular stress test to ensure each stock's dividend was sustainable even in a recession. Hand says he has been folding in more environmental, social and governance factors to identify any hidden risks as well as opportunities for the portfolio.
We'll be watching the fund closely this year, especially in the coming months as we reassess our entire roster of Kiplinger 25 funds for May. Stay tuned.

Nellie joined Kiplinger in August 2011 after a seven-year stint in Hong Kong. There, she worked for the Wall Street Journal Asia, where as lifestyle editor, she launched and edited Scene Asia, an online guide to food, wine, entertainment and the arts in Asia. Prior to that, she was an editor at Weekend Journal, the Friday lifestyle section of the Wall Street Journal Asia. Kiplinger isn't Nellie's first foray into personal finance: She has also worked at SmartMoney (rising from fact-checker to senior writer), and she was a senior editor at Money.
-
-
Should I Trade Stocks or Options?
Answering the question "should I trade stocks or options" will depend on your own risk tolerance, investing objectives and understanding of market dynamics.
By Jared Hoffmann Published
-
This Is How You Can Be a Snowbird in Retirement
There’s a lot to consider, and warm weather shouldn’t be the only deciding factor. For instance, will you rent or buy? What’s the tax and health care situation?
By Tony Drake, CFP®, Investment Advisor Representative Published
-
How to Find the Best Vanguard ETFs
Investors looking for the best Vanguard ETFs would be wise to follow the philosophy of the asset manager's founder, John Bogle.
By Jeff Reeves Published
-
The Kiplinger 25: Our Favorite No-Load Mutual Funds
The Kiplinger 25 The Kiplinger 25 is a list of our top no-load mutual funds that have proven capable of weathering any storm.
By Nellie S. Huang Last updated
-
Donor-Advised Funds: A Tax-Savvy Way to Rebalance Your Portfolio
Long-term investors who embrace charitable giving can easily save on capital gains taxes by donating shares when it’s time to get their portfolio back in balance.
By Adam Nash Published
-
Choosing Between Look-Alike ETFs and Mutual Funds
If you're trying to choose between ETFs and Mutual Funds, some factors to help you decide are how you trade and the type of account you plan to use.
By Nellie S. Huang Published
-
How to Pick the Best Robo Advisor For You
Kiplinger's guide to the best robo advisors to fit your needs.
By Kim Clark Published
-
The 5 Best Actively Managed Fidelity Funds to Buy Now
mutual funds In a stock picker's market, it's sometimes best to leave the driving to the pros. These Fidelity funds provide investors solid active management at low costs.
By Kent Thune Last updated
-
The 5 Safest Vanguard Funds to Own in a Bear Market
recession The safest Vanguard funds can help prepare investors for continued market tumult, but without high fees.
By Kyle Woodley Last updated
-
The 12 Best Bear Market ETFs to Buy Now
ETFs Investors who are fearful about the more uncertainty in the new year can find plenty of protection among these bear market ETFs.
By Kyle Woodley Published