Feb 28 Vanguard Group said on Thursday it would
stop opening new accounts from financial advisers and
institutional customers in its popular $68 billion Wellington
Fund, which invests in a mix of stocks and bonds.
All current investors can continue to add money to the fund
and retail investors will be permitted to open new accounts,
The same limits, effective immediately, will also apply to
the $39 billion Vanguard Intermediate-Term Tax-Exempt Fund
, the firm, based in Valley Forge, Pennsylvania, said.
"Our commitment is to protect the interests of the funds'
current shareholders, and as we've done in the past, we are
demonstrating the conviction to do this by partially closing two
of our largest funds," Vanguard Chief Executive Bill McNabb said
in a statement.
Separately, Vanguard said it plans to open a new mutual fund
and accompanying exchange-traded fund by the end of the second
quarter that will track an emerging market bond index, the
Barclays USD Emerging Markets Government RIC Capped Index.
Vanguard, with $2.1 trillion of assets under management, is
the largest U.S. mutual fund company and the third-largest U.S.