Vanguard is planning to merge the $3.2 billion Vanguard Insured Long-Term Tax-Exempt Fund into the $2.8 billion Vanguard Long-Term Tax-Exempt Fund on December 12, 2008. In conjunction with the planned merger, Vanguard Insured Long-Term Tax-Exempt Fund has closed to new accounts. “The municipal bond market has changed to a point where insured bonds provide little, if any, additional benefit over high-quality uninsured credits. We concluded that a fund focused solely on insured bonds no longer provides tangible benefits,” said Gus Sauter, Vanguard’s CIO, in announcing the news. “Shareholders will be better served by merging the two portfolios to create a single, well-diversified, high-quality fund.” Reid Smith will remain as portfolio manager for the merged Vanguard Long-Term Tax Exempt Fund. John Carbone, who currently oversees Vanguard Insured Long-Term Tax-Exempt Fund, will continue to manage three other municipal funds for Vanguard.