Theory predicts that (i) vertical transmission of parasites (i.e. when they are passed directly from a host to its offspring) selects for benign association with the host and that (ii) vertically transmitted parasites that lower their hosts' fitness cannot persist if they are not able to infect horizontally (i.e. contagiously) other host individuals in the population. In this paper, we develop a mathematical model to examine whether mutualism is a prerequisite for persistence of exclusively vertically transmitted (from maternal plant to offspring via seeds) fungal endophytes in structured grass metapopulations. Interestingly, endophyte survival does not require plant mutualism, even in a metapopulation consisting of qualitatively identical patches, if vertical transmission of the fungus is perfect, i.e. if all established seedlings in offspring of the endophyte-infected plant are infected. In more realistic situations, when the metapopulation consists of qualitatively different patches, endophyte-infected plants may persist at the metapopulation level even if the vertical transmission is imperfect (due to hyphae inviability or failure to grow into all seeds) and the endophyte decreases the host grass fitness in certain environments. These results have biological importance because they (i) question the requirement of a mutualistic nature in exclusively vertically transmitted symbionts and (ii) emphasize the importance of habitat diversity in relation to symbiont success in vertical transmission.