Vanguard reopens convertible securities fund to new investors

By Jennifer Chiou

New York, June 23 - The Vanguard Group said the board of trustees of its Vanguard Convertible Securities Fund has approved the immediate reopening of the $565 million fund to new investors.

Vanguard Convertible Securities Fund was closed May 2004, when the company and Oaktree Capital Management, LLC, the fund's adviser, were concerned about how consistent strong cash inflows and asset growth would effect the management of the fund.

Valley Forge, Pa.-based Vanguard has raised the minimum initial investment for the fund to $10,000 from $3,000 for all account types.

The mutual fund company has also added a 1% redemption fee to shares purchased on or after Sept. 15 that are redeemed within one year in order to encourage long-term investing.

Oaktree Capital Management, fund adviser since 1996, uses a bottom-up approach to select a diverse group of convertibles.

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