Vanguard has adjusted the redemption fee policies on two popular Primecap-subadvised funds and three others. Effective March 23, the PRIMECAP Fund, the Capital Opportunity Fund, the Selected Value Fund and the Health Care Fund will continue to impose one percent redemption fees, but on shares held for less than one year (down from a whopping five years).

Investors in the Emerging Markets Stock Index Fund will have to pay 0.5 percent fees on all redemptions. Previously, investors were charged a two percent fee for shares held less than two months and 0.5 percent on all other redemptions.

The Malvern, Pennsylvania-based fund giant also announced a raft of other changes to its funds:

The $22.5 billion Vanguard Health Care Fund has closed to new investors. Wellington Management, the subadvisor to the fund, "express concern about its ability to produce returns going forward if faced with substantial additional cash flows," according to a release.

Meanwhile, the $847 million Vanguard Convertible Securities Fund has reopened to existing investors, but not to new investors. Vanguard closed the fund, which is subadvised by Larry W. Keele of Oaktree Capital Management, in May of 2004.  

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