Vanguard Reopens Convertibles Fund to New Investors

Vanguard has reopened  Vanguard Convertible Securities  to new investors. The fund, which recently had about $1.8 billion under management, closed in mid-2009 after subadvisor Oaktree Capital Management L.P. worried that manager Larry Keele wouldn't be able to put all the money flowing into the fund to work. In the first half of 2009, the fund attracted $483 million of inflows, but since that time through the end of April 2010, investors have withdrawn about $199 million. Convertible bond investing had gotten crowded going into the financial crisis, as numerous hedge funds engaged in convertible arbitrage. Many such hedge funds failed in the crisis, however. Recently some survivors have told Morningstar they are seeing more opportunities in convertible securities now that there is more elbow room. Keele could not be reached for comment, but the fund, which is among the cheapest in its category with a 0.72% expense ratio, remains an Analyst Pick.

Baron Cuts Fund's Fees
In an unusual move for Baron Funds, whose fees tend to be on the high side, the family cut the management fee of  Baron Fifth Avenue Growth (BFTHX) by 10 basis points, or hundredths of a percent. The fund focuses mainly on more efficient large caps, where it's harder to overcome a large expense hurdle. Given that the fund hasn't distinguished itself from a performance standpoint, it's not surprising that the firm opted to cut fees.

Etc.
Two separate Delaware fund mergers are pending shareholder approval. If approved, Delaware Growth Equity  will merge into  Delaware Select Growth (DVEAX), and  Delaware Trend  will merge into  Delaware Smid Cap Growth (DFCIX). Both fund mergers are expected to take place in the third quarter of 2010.

Fidelity is raising the minimum investment for Fidelity Real Estate High Income to $1 million. The fund has been a strong performer, and assets have nearly tripled, attracting $357 million in inflows over the past year, which was roughly the size of the entire fund about one year ago.

Forward Management recently announced that its acquisition of Accessor Funds has been completed. Under the acquisition, the funds have been rebranded Forward Funds.

Effective June 4, 2010, Philip Ruvinsky will no longer comanage Laudus Growth Investors U.S. Large Cap Growth (LGILX). Lawrence Kemp will remain as the fund's sole portfolio manager.

Jared Leon is off the portfolio-management team of Grisanti Brown Value .

Matthew Kiselak is off the portfolio-management teams of Evergreen California Municipal Bond , Evergreen High Income Municipal Bond , Evergreen Intermediate Municipal Bond ,  Evergreen Municipal Bond , Evergreen North Carolina Municipal Bond , Evergreen Pennsylvania Municipal Bond (EKVAX), and Evergreen Short-Intermediate Municipal Bond .

Earlier in May, Turner Funds launched a new global offering called Turner Global Opportunities, managed by Chris McHugh, Donald Smith, Mark Turner, and Robert Turner, with an expense ratio of 1.36% for the retail share class. The firm has run a separate account employing the same strategy since March 2005.

Freda Drechsler replaced Jennifer Boden on the portfolio-management team of Turner Spectrum .

Effective June 15, 2010, Legg Mason Barrett Financial Services (SBFAX) will change its subadvisor from Barrett Associates to Legg Mason Investment Counsel and rename the fund Legg Mason Investment Counsel Financial Services. Portfolio manager Amy LaGuardia will join LMIC and continue managing the fund.

Fund analyst David Falkof contributed to this report.