Vanguard Raises its Energy Fund's Minimum
Vanguard has upped the minimum investment for the Vanguard Energy Fund to a whopping $25,000 from $3,000, or $1,000 for IRA or custodial accounts.
The board also voted to eliminate a rule barring the fund from holding more than 50 percent of its portfolio in foreign stocks. The fund held 41 percent in foreign stocks at the end of April. "The change will enable the investment advisor, Wellington Management Company, LLP, to better adapt to the globalization of the energy industry," stated officials.
Vanguard's Precious Metals Fund, Less Precious
The fund, closed since June 2002, is slated to open again on May 28 to investments of at least $10,000. The fund's name will also be changed to the Precious Metals and Mining Fund to reflect a shift in strategy.
Name Changes Abound for Corporate Bond Funds
Four Vanguard corporate bond funds will be allowed to invest in a broader range of fixed income products, including U.S. Treasury, agency, and mortgage-backed securities starting in July 2004. Currently, the funds are required to invest at least 80 percent of assets in corporate investment grade fixed income; after July, the requirement will extend to all investment grade fixed income.
The names of the funds will change accordingly: Vanguard Short-Term Corporate Fund will change to Vanguard Short-Term Investment-Grade Fund, Vanguard Intermediate-Term Corporate Fund will change to Vanguard Intermediate-Term Investment-Grade Fund, Vanguard Long-Term Corporate Fund will change to Vanguard Long-Term Investment-Grade Fund and Vanguard Variable Insurance Fund-Short-Term Corporate Portfolio will change to Vanguard Variable Insurance Fund-Short-Term Investment-Grade Portfolio.
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