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Vanguard closes convertible securities fund to new accounts, adds cap
By Jennifer Chiou
New York, June 19 - Vanguard Group has announced the close of its Vanguard Convertible Securities Fund (VCVSX) to new accounts, effective immediately.
The company also placed a $25,000 annual investment limit on current retail accounts.
"The board of directors regularly monitors cash flow into Vanguard's funds and takes action when assets reach levels that could impede advisors' ability to implement their investment strategies effectively," Bill McNabb, chief executive officer, said in a news release.
"We believe that the Convertible Securities Fund closure is prudent in light of strong recent cash flow, coupled with a limited supply of new issuance in the U.S. convertibles market."
According to the release, in the past five months, the convertible securities fund's assets have nearly doubled, rising to $1.5 billion from $867 million.
Valley Forge, Pa.-based Vanguard manages more than $1.1 trillion in U.S. mutual fund assets, including more than $490 billion in employer-sponsored retirement plans.
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