Vanguard is reopening the USD1.8bn Vanguard Convertible Securities Fund to new individual investors, effective immediately.
In addition, the USD25,000 annual investment limit that applied to existing accounts has been removed.
The fund was closed and the investment limit was adopted in June 2009. At that time, Vanguard and the fund’s advisrr, Oaktree Capital Management, cited concerns that continued strong cash inflows could impede the adviser’s ability to effectively manage the fund.
Cash inflows have since subsided, and Vanguard is now accepting additional purchases from new individual investors.
The fund seeks to provide income and long-term capital appreciation by investing in a broadly diversified group of these hybrid securities, which combine the investment characteristics of bonds and common stocks. Oaktree Capital Management, the fund’s investment adviser since 1996, uses a bottom-up approach to select convertible issues for the portfolio.
Six Vanguard funds remain closed to new accounts: Vanguard PrimeCap Fund, PrimeCap Core Fund, Capital Opportunity Fund, Capital Value Fund, Admiral Treasury Money Market Fund, and Federal Money Market Fund.