Vanguard is limiting new purchases and not accepting new accounts for the Primecap Core Fund and two related funds, Primecap and Capital Opportunity.

“We are taking preemptive steps to limit the growth of Primecap Core and its sister funds, with the goal of enabling the team at Primecap management to continue to implement their investment strategy in an effective manner,” said Vanguard CEO Bill McNabb.

Existing shareholders in the $3.4 billion Primecap Fund will not be allowed to invest more than $25,000 a year, and the fund will not accepts new accounts from most retail clients. However, customers in defined contribution plans will be able to continue to invest money in the fund, although financial adviser and other institutional clients will not have access to the fund.

The $23.8 billion Primecap and $6.7 billion Capital Opportunity funds, which were already closed to new investors, also have $25,000 annual limits on the purchase of new shares.

In the first half of the year, Vanguard’s long-term funds saw nearly $60 billion of inflows.

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