The Vanguard Group of Valley Forge, Pa., announced that the board of directors of its Vanguard Capital Opportunity Fund has raised the fund's minimum initial investment from $3,000 to $25,000 for new accounts in an effort to curb rising inflows into the fund.
The new minimum was to be effective at the close of business Sept. 20. Existing accounts will not be subject to the change, the announcement said.
Because the fund had been attracting huge amounts of new cash, Vanguard considered closing it, but decided to raise the minimum investment as a "more accommodating" way to slow the inflows, said John J. Brennan, chairman and CEO of the Vanguard Group.
The fund, which opened in August, 1995, had $877 million in assets as of Aug. 31, far more than the $206 million it had at the end of 1998, the company said.