Products May 11, 2011

Vanguard Reduces Investment Minimums on Retirement Funds

Vanguard is reducing the minimum investment requirement from $3,000 to $1,000 for the 12 funds in its index-based Target Retirement Fund series.
Reported by

Previously, only Vanguard STAR Fund, a balanced fund comprising 11 actively managed funds, was available to those with $1,000 to invest. 

In addition, Vanguard announced it is standardizing the minimum investment requirement for Investor Shares of nearly all Vanguard funds at $3,000. Previously, investment requirements varied by fund, and ranged from $3,000 to $25,000.
 
A news release said this change reduces the minimum for 15 Vanguard funds, including some of Vanguard’s oldest and largest actively managed funds, such as the $59 billion Vanguard Wellington Fund, the $38 billion Vanguard Windsor II Fund, and the $22 billion Vanguard Health Care Fund.
 

Never miss a story — sign up for PLANADVISER newsletters to keep up on the latest retirement plan adviser news.

The Markets May 11, 2011

Mutual Fund Flows Show Investor Confidence

U.S. mutual fund investors demonstrated confidence in a gradual economic recovery, adding about $27 billion in net new cash to U.S. stock and bond mutual funds in April 2011, according to Strategic Insight, an Asset International company.
Reported by

Nearly $6 billion in net new cash went into U.S. equity funds in April 2011, marking the fourth straight month of positive inflows to U.S. equity mutual fund inflows. Strategic Insight said it was another sign that demand for U.S. equity funds is rebounding in 2011, as the category drew total net inflows of $42.2 billion in the first four months of 2011. This was the best start to a year since January-April of 2006, when U.S. investors put a total of $65.4 billion into domestic stock funds.

International and global equity funds saw almost $7 billion in net flows in April, despite continued turmoil in the Middle East and North Africa.   

Want the latest retirement plan adviser news and insights? Sign up for PLANADVISER newsletters.

Taxable bond fund flows continued their positive streak in April, drawing $18 billion in net new flows, the biggest month of net inflows for taxable bond funds since drawing $21 billion in October 2010, according to the data. The search for yield buoyed bond fund demand, and flows in April were led by low-volatility bond funds and global bond funds.  

Muni bond funds saw net outflows of $4 billion in April, as continued worries about the balance sheets of states and municipalities continued to weigh on the sector. 

Money-market funds, whose assets exceed $2.6 trillion, saw net outflows of $6 billion in April.

«