Soft Closes for Large Vanguard, Oppenheimer Funds
Manager changes at MFS and Pioneer, Lord Abbett to merge away its small-blend fund, and Alger hires three former members of Allianz's international equity team.
Over the past week, Vanguard and Oppenheimer have announced soft closes of their funds, continuing a trend that has been occurring in some of their categories.
Vanguard Wellington and Vanguard Intermediate-Term Tax-Exempt Close to New Institutional and Advisor Accounts
Vanguard announced immediate soft closes of Gold-rated Vanguard Wellington (VWELX) and Silver-rated Vanguard Intermediate-Term Tax-Exempt (VWITX). Going forward, advisors, institutions, and individual investors who transact through third-party platforms (such as Charles Schwab or TD Ameritrade) will not be able to open new accounts, although they will be able to add to existing accounts. Still, individual investors who don't have an account aren't out of luck: both funds will remain open to those buying directly through Vanguard. Vanguard Wellington received roughly $1.3 billion in inflows for the year to date through Feb. 28, 2013, and at $69 billion, it's the second-largest fund in the moderate-allocation category. Vanguard Intermediate Term Tax-Exempt received net year-to-date inflows of about $800 million. At $39 billion, it's nearly 4 times larger than the next-largest competitor in the national municipal intermediate-term category.
Morningstar Fund Analysts does not own shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.