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Vanguard to Add to Primecap Offerings

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Sept. 27, 2004 — Vanguard Group plans to offer another fund managed by Primecap Management Co., which runs two of Vanguard’s top performing funds.

The new Primecap Core Fund would invest in companies of all sizes, focusing on stocks the managers believe “offer a good balance between reasonable valuations and attractive growth prospects relative” to their “peers,” Vanguard said.

The fund will overseen by the same team that manages Vanguard PRIMECAP (VPMCX) and Vanguard Capital Opportunity/Inv (VHCOX), which have both topped their peers in recent years. Both these funds closed to new investors in March.

Primecap Management disclosed in July that it plans to offer three mutual funds of its own. One of those, the Odyssey Stock fund, will, like the planned Vanguard fund, also buy companies of all sizes.

The new Vanguard fund will carry a redemption charge, but the charge and the fund’s expense ratio was not disclosed in the fund’s preliminary prospectus, which Vanguard filed Friday. The fund will require a $10,000 minimum initial investment.

The planned new offering will broaden its line of actively-managed stock funds, Vanguard chairman John J. Brennan said in a statement.

Contact Bob Keane with questions or comments at: [email protected].