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Tuesday, March 10, 2009|
Vanguard Blocks Contributions to a Fund
Vanguard has already closed its Treasury Money Market Fund to new institutional and retail investors, and now the low-cost fund titan is blocking all new contributions, even those from existing investors. Forbes' David Randall reports that the fund stopped accepting contributions after February 27, instead forwarding any defaulted money (like money coming in from 401(k) participants) into its Prime Money Market Fund.
"Vanguard Prime Money Market has an identical investment objective to Vanguard Treasury Money Market Fund: It seeks to provide current income while maintaining liquidity and a stable share price of $1," a letter to participants read. "However, Vanguard Prime Money Market Fund has a higher seven-day yield."
Last year Vanguard blocked new institutional investors from the Admiral Treasury Money Market Fund and the Treasury Money Market Fund, and in January Vanguard revealed a similar block against new retail investors in the two funds (see MFWire, 12/17/2008 and 1/27/2009).
Printed from: MFWire.com/story.asp?s=20962
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