Sail Boat

Vanguard_to_close_and_liquidate_two_funds

Sail Boat

The Vanguard Group recently announced the closing and planned liquidation of two funds, and also the re-opening of two funds to new shareholder accounts. On April 6, Vanguard said it would cease accepting new accounts and shareholder purchases for Vanguard Preferred Stock Fund and Vanguard Global Asset Allocation Fund.

The Preferred Stock Fund, which was launched in 1975, invested primarily in cumulative preferred stocks, and was designed for corporate investors. It closed with $189 million in total assets. The Global Asset Allocation Fund, introduced in 1995, had $106 in its coffers after five years in operation.

The two funds will be liquidated on July 27, 2001, and proceeds will be distributed to shareholders.

Three days after the fund closings announcement, Vanguard said it will re-open two funds that have been closed since March 20, 2000. Vanguard Capital Opportunity Fund (VHCOX) was opened immediately, and Vanguard Primecap Fund (VPMCX) is scheduled to accept new acounts on April 23, 2001.

The Capital Opportunity Fund focuses mainly on mid-cap growth stocks, while the Primecap Fund holds mostly large-cap companies.

Fund Name
Vanguard Primecap
Vanguard Capital Opportunity
Ticker
VPMCX
VHCOX
Expense Ratio
0.51%
0.62%
Total Number of Holdings
105
117
Ret 1 Yr
-22.15
-16.94
Ret Annlzd 3 Yr
14.31
35.99
Ret Annlzd 5 Yr
20.90
23.67
Ret Annlzd 10 Yr
18.81
-
Net Assets $MM
19,813.5
4.917.2

Source: Morningstar, data as of 3/31/2001 [/:Author:]
Newcomers to these funds will have an initial minimum investment requirement of $25,000, and will be charged a 1% redemption fee if they opt to leave the fund within five years.

FTSE Considers Style Indexes

London-based index provider FTSE said it is exploring creating a set of indexes that will break down the market in terms of growth and value stocks. eFinancialNews reported that there may be a partnership in the works between FTSE and Frank Russell to develop the new indexes.

Yet Another Tech Index

With the Dow Jones Technology index down over 65% as of the end of 4/10/2001, many might ask the question, "Do we really need another tech index?"

CBSMarketWatch says yes.

The financial news site launched a new index comprised of 75 companies that "captures all the facets of the new economy, from the Internet start-ups to the computer makers, from the media giants to the telecom colossi." For a complete list of the constituent stocks, click here.

The CBSMarketWatch 75 is market cap-weighted index. As of 4/4/2001, the index had a market cap of about $3.33 trillion. CBSMarketWatch said the index will trade on the Philadelphia Stock Exchange in approximately 3 months.