Liquidating a mutual fund
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The trillion asset manager announced Thursday that it will liquidate the Vanguard Convertible Securities Fund (VCVSX).
The 2 million mutual fund "has not gained broad acceptance among targeted investors," a company spokeswoman said.
"It's not a very large group of actively managed funds out there in this style," he said.
"We're very specific on what we think is the type of investor best suited for any type of investment," she said, citing the factor-based funds launched last year.Jeff De Maso, co-editor of The Independent Adviser for Vanguard Investors newsletter, shrugged off the liquidation as the cost of being a mutual fund behemoth."A billion-dollar fund would be a huge success at most firms, but with Vanguard's assets, it's just not worth the hassle anymore," he said."The fund reached a high-water mark in terms of performance and fund size in 2011," said Vanguard spokeswoman Emily Farrell.The fund's assets peaked in 2011 at .2 billion, following a 19.24% gain in 2010 and a 40.81% surge in 2009.
"We were very specific about the complexity and nature of factor funds and that they are best suited for those investors that are advised," she added.