The Vanguard Global Equity Fund was temporarily closed to new accounts at the close of business today, according to John Demming, a Vanguard spokesman. The fund has $745 million in assets. "The decision to close the fund to new accounts was made in consultation with the fund's adviser, Marathon Asset Management, which has ceased offering its global equity mandate to prospective investors," said Jack Brennan, Vanguard chairman. "While the fund's asset size and cash inflows are currently not impeding the prudent management of the portfolio, we jointly determined that closing the fund was the fair and appropriate course of action."
Vanguard also announced the re-opening of its High-Yield Corporate Fund after five months. The $9.3 billion fund in June was closed to new accounts and restricted additional investments by shareholders to $100,000 per year. At that time Vanguard expressed concern that investors were investing in the fund based on its short-term performance and high dividend yield.
"The high level of investor interest has subsided and cash flows have moderated to the point that we feel comfortable reopening the fund," said Mr. Brennan, who cautioned investors not to misinterpret the fund's reopening as a recommendation to buy or sell bonds or bond funds.