Vanguard closes convertibles fund after assets double

New York, May 14 - Vanguard Group said it was closing the Vanguard Convertible Securities Fund to new investments effective immediately.

The fund will not accept any new retail accounts nor additional purchases or exchanges into existing retail accounts.

The Valley Forge, Pa., mutual fund company noted that the fund's assets have more than doubled in the past 12 months to $1.1 billion from $481 million due to investors putting cash in the portfolio and market appreciation.

"The board of trustees regularly monitors asset size and cash-flow activity across Vanguard's family of funds. The board's objective is to keep fund assets at reasonable and practical levels so that the advisors are able to execute their investment strategies effectively," said John J. Brennan, Vanguard chairman and chief executive officer, in a news release.

"In this case, it was clear that continued strong cash flow, coupled with market appreciation, could make it increasingly difficult for the advisor to implement its disciplined, bottom-up approach in selecting convertible securities."

The fund is the third that Vanguard has closed this year.

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