MutualFundWire.com
The insiders' edge for 40 Act industry executives!
an InvestmentWires' Publication
an InvestmentWires' Publication
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MutualFundWire.com
The insiders' edge for 40 Act industry executives!
an InvestmentWires' Publication |
|
Friday, August 14, 2009 Vanguard Restricts Three Funds To Those With 'Significant Assets' Vanguard's restricting access to another fund. The Vanguard Primecap Fund will be closed to new accounts, except for those who are enrolled in Vanguard's $1 million-limit 'flagship services' or participants in defined contribution retirement plans. Current accounts may invest up to $25 thousand per year in the fund. The fund is not expected to reopen to other accounts. The Vanguard Primecap Core Fund and Capital Opportunity Fund will also be closed to new accounts, following the same guidelines at the Primecap fund. Participants in certain qualified retirement plans may continue to be able to invest based on the terms of their plans. The Vanguard website details the benefits available to the Flagship Services, apart from the now exclusive access to the three funds. These services are restricted to what Vanguard calls those with "significant assets." Vanguard is pitching the move as a means of improving the funds' investment strategies. "Despite the market volatility, Vanguard investors are continuing to commit assets to our stock and bond funds and ETFs," stated CEO Bill McNabb. "We are taking preemptive steps to limit the growth of PRIMECAP Core Fund and its sister funds, with the goal of enabling the team at PRIMECAP Management to continue to implement their investment strategy in an effective manner." The move comes shortly after Vanguard combined and closed two of its money market funds earlier this week. Printed from: MFWire.com/story.asp?s=22352 Copyright 2009, InvestmentWires, Inc. All Rights Reserved |