he Vanguard Group
closed its Vanguard Health Care Fund
in February 1999, worried about its rising inflows -- on December 20 it will reopen to new investments, with higher minimums and a new redemption fee imposed.
"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 Jack Brennan
, chairman of Vanguard.
"Considering several new policies that we now have in place, we are confident that the level of future inflows will be more modest and will be made primarily by investors interested in making a long-term commitment to the fund," he added.
The fund's new redemption fee of 1% for any shares redeemed within five years of purchase is one of the strictest in the industry and an additional raise of the minimum investment from from $3,000 to $10,000 should help to keep timers at bay, the company hopes.
The $11 million fund will be reopened on December 20, several days after the fund's capital gains distribution for 1999, so new shareholders coming into the fund will not be affected.
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