The board of directors regularly monitors cash flow into Vanguards funds and takes actions when assets reach level that could impede advisors ability to implement their investment strategies effectively, said Vanguard CEO Bill McNabb. 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.
Assets in the fund have nearly doubled in the past five months, from $867 million to $1.5 billion.
With this closure, Vanguard has closed a total of six funds, including the Vanguard Primecap Fund, Vanguard Capital Opportunity Fund, Vanguard Admiral Treasury Money Market Fund, Vanguard Treasury Money Market Fund and Vanguard Federal Money Market Fund.
