Fund giant Vanguard announced late Thursday that it has closed the $664 million Vanguard Global Equity fund to new investors.
In a prepared statement, the nations second largest mutual fund company said that the funds subadvisor Marathon Asset Management has stopped taking on new clients for global accounts with mandates similar to this particular funds. According to Valley Forge, Penn.-based Vanguard, Marathon took a similar step earlier this year because a rampup in new business had stretched its client service team thin.
"While the fund's asset size and cash inflows are currently not impeding the prudent management of the portfolio, we jointly determined that closing the fund was the fair and appropriate course of action," said Vanguard Chairman Jack Brennan.
The move marks the third closing in the last 18 months and is consistent with the firms mantra of protecting the interests of long-term shareholders. Vanguard routinely consults its external investment advisors to ensure cash flow and asset size remain at reasonable levels.