Dec. 10, 2004 — Vanguard Group closed the Vanguard Energy Fund (VGENX) to new investors yesterday to stem the amount of money flooding into the fund, whose assets have more than doubled this year.
The company said it was worried that investors might be chasing hot returns in the fund, which had $5.3 billion in assets at the end of November, up from $2.4 billion at the end of 2003. The fund, its best performer this year, returned 55.2% over the 12 months ended in November, Vanguard said.
“Vanguard funds are designed for long-term investors, and we are concerned that some investors may be gravitating toward” the fund because of its “recent short term performance record,” company chairman Jack Brennan said in a statement.
Contact Bob Keane with questions or comments at: email@example.com