The Vanguard Group of Valley Forge, Pa. announced that its Vanguard Health Care Fund will reopen to new investors starting Dec. 20. The fund currently has assets of $11 billion.
The board of trustees of the fund had initiated a "cooling off" closure period on Feb. 25 because of concerns about rapidly rising net inflows into the fund, the company said.
"We believe that the extraordinary interest in the fund, and the accompanying high cash inflows, have waned sufficiently enough for us to resume offering the fund's shares to new investors," said John J. Brennan, chairman of Vanguard, in the announcement.
Effective with the reopening of the fund, the board has raised the minimum initial investment amount from $3,000 to $10,000. The minimum for IRAs will remain at $1,000. A $25,000 limit on additional investments by existing shareholders will be removed.