Vanguard to Streamline Fund Lineup with Planned Merger and Liquidation
"We strive to offer a broad lineup of investment solutions that meets the long-term needs of Vanguard's diverse investor base," said
In light of limited investor demand and the opportunity to consolidate two funds with similar investment objectives, the
The merger itself is expected to be a tax-free event. However, to prepare the
Vanguard Alternative Strategies Fund was launched in 2015 to help investors further diversify beyond traditional asset classes with the potential to lower a portfolio's overall volatility. The fund, however, has not gained broad acceptance among investors. Shareholders are being notified and will have the opportunity to exchange into another Vanguard fund or redeem shares prior to the liquidation date, at which time the fund's assets will be sold and the proceeds distributed to any remaining shareholders. The liquidation may have tax consequences for certain investors depending on their individual tax situation.
About Vanguard
Founded in 1975, Vanguard is one of the world's leading investment management companies. The firm offers investments, advice, and retirement services to individual investors, institutions, and financial professionals. Vanguard operates under a unique, investor-owned structure where Vanguard fund shareholders own the funds, which in turn own Vanguard. As such, Vanguard adheres to a simple purpose: To take a stand for all investors, to treat them fairly, and to give them the best chance for investment success. For more information, visit vanguard.com.
1 The effective dates for the expense ratios are
For more information about Vanguard funds, visit vanguard.com/fundprospectus to obtain a prospectus or, if available, a summary prospectus. Investment objectives, risks, charges, expenses, and other important information are contained in the prospectus; read and consider it carefully before investing.
All investing is subject to risk, including the possible loss of the money you invest. Diversification does not ensure a profit or protect against a loss. Each LifeStrategy Fund invests in four broadly diversified Vanguard funds and is subject to the risks associated with those underlying funds. Funds that concentrate on a relatively narrow market sector face the risk of higher share-price volatility.
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SOURCE Vanguard