is rolling out an institutional share class in for two of its bond index funds. The new shares are targeted at retirement plans, endowments and foundations and corporate assets, said officials for the Valley Force, Pennsylvania-based fund firm.
Both the Vanguard Intermediate-Term Bond Index Fund
and Vanguard Long-Term Bond Index Fund
will carry the Institutional Share class. Vanguard currently has 29 funds that offer institutional shares.
Vanguard officials expect the new share classes to become available in January of 2006. The shares are now in registration with the SEC.
John J. Brennan
, Vanguard's chairman and CEO, explained that the shares are being offered in response to "growing interest" in Vanguard's index funds over the past several years and an expanding institutional client base.
Institutional shares in the Intermediate-Term will carry an annual expense ration of 9 basis points while Long-Term Bond Index will come with 8 bps of annual expenses.
The minimum initial investment requirement for both funds will be $25 million.
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