Jan. 15, 2004 — Vanguard Group today raised the minimum initial investment for the $644 million Vanguard International Explorer (VINEX) to $25,000 from $10,000 in an effort to keep the fund from getting flooded with cash.
International Explorer’s assets have increased “substantially” since Vanguard acquired it from Schroder Investment Management North America in 2002, Vanguard said. Vanguard attributed the growth to the fund’s strong returns and “significant” cash inflows.
The fund gained 57.4% last year, while the average international fund was up 36.9%.
“Despite the recent cash inflows, we remain able to execute our investment strategy successfully,” Matthew Dobbs, a Schroder senior vice president who heads the team that runs the fund, said in a statement. “We agree, nonetheless, that it is prudent to take this step now to manage the future size of the fund.”
The increased minimum applies to all new accounts, including individual retirement accounts. Vanguard placed no limit on subsequent investments.