A Vanguard sign at a trade show (Photo: AP)
Vanguard says its nearly $963 million convertible securities fund is closed to new investors as part of the fund's late-March liquidation. Fund investors can exchange their shares for another Vanguard fund or redeem them.
The fund giant, which works with over $5 trillion of total assets, launched the fund in 1986, mainly for pension funds, endowments, and corporate and nonprofit retirement plans. But it recently concluded investors could have similar risk-return exposures and long-term returns by working with a mix of global stock and bond funds.
"Despite the fund's capable advisor and prudent approach to managing convertible securities, the fund has not gained broad acceptance among these investors and remains one of the smallest offerings in terms of net assets among Vanguard's stock and balanced offerings," Vanguard said in a statement on Thursday.
