Two more money market funds are closing. In an SEC filing, Vanguard
revealed that it closed the Admiral Treasury Money Market
and Treasury Money Market
funds on Monday to new individual investors.
A spokesperson for Vanguard could not immediately be reached for comment on the move.
For those on the retirement side, the closings may not come as a surprise, as our sister publication reported last month that the Valley Forge, Pennsylvania-based asset manager was closing the same two new funds to new institutional investors like 401(k)s (see The 401kWire, 12/16/2008
). At the time, a company spokeswoman told The 401kWire
that Vanguard wanted to avoid "the potential negative impact of large transactions" on the two funds.
In the new filing, Vanguard stresses that current shareholders can still purchase new shares and that "participants in certain qualified retirement plans" (i.e. those already offering the funds) can still buy more, too.
VANGUARD ADMIRAL(TM) TREASURY MONEY MARKET FUND
VANGUARD TREASURY MONEY MARKET FUND
Supplement to the Prospectus
Important Changes to Vanguard Admiral Treasury Money Market Fund and Vanguard Treasury Money Market Fund
As of the close of business on January 26, 2009, Vanguard Admiral Treasury Money Market Fund and Vanguard Treasury Money Market Fund (the "Funds") will no longer open new accounts for individual investors. There is no specific time frame for when the Funds will reopen.
Please note that these changes do not apply to participants in certain qualified
retirement plans that offer the Funds.
During the Funds' closed period, current shareholders may continue to purchase,
exchange, or redeem shares of the Funds online, by telephone, or by mail.
The Funds may modify these transaction policies at any time without prior notice
to shareholders. You may call Vanguard for more detailed information about the
Funds' transaction policies. Investors in nonretirement accounts and IRAs may call Vanguard's Investor Information Department at 800-662-7447.
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