Vanguard Group is no longer accepting new investors to its $30 billion Dividend Growth Fund.
The company said in a news release that it is doing this to control asset growth. Existing investors may continue to invest without limitation.
“Vanguard is proactively taking steps to slow strong cash flows to help ensure that the adviser's ability to produce competitive long-term results for investors is not compromised,” said Vanguard CEO Bill McNabb in the release.
Over the past six months, the fund has received an additional $3 billion in net cash inflows and the fund's assets have nearly doubled over the past three years.
In addition to the Dividend Growth Fund, Vanguard Capital Opportunity Fund, PRIMECAP Fund and PRIMECAP Core Fund are closed to new investor accounts, except for specified retail clients. Vanguard Convertible Securities Fund and Vanguard Wellington Fund continue to be closed to some new institutional accounts.
The Dividend Growth Fund was launched in 1992 to provide investors with some income while offering exposure to dividend-focused companies across all industries. The fund focuses on high-quality companies that have the ability to grow their dividends. The fund is managed by Donald J. Kilbride, Wellington Management senior managing director.
Vanguard managed more than $3.6 trillion in global assets as of June 30.