Almost a year after closing, Vanguard's Convertible Securities Fund is reopening to new retail investors.

The fund closed and adopted a $25,000 annual investment limit in June 2009 because of concerns that constant cash flow "could impede the advisor's ability to effectively manage the fund," according to a release. Oaktree Capital Management has advised the fund since 1996. The fund currently has $1.8 billion in AUM.

Vanguard, which manages about $1.4 trillion in mutual fund assets, still has six closed-end funds: the Vanguard PRIMECAP Fund, PRIMECAP Core Fund, Capital Opportunity Fund, Capital Value Fund, Admiral Treasury Money Market Fund, and Federal Money Market Fund.

Company Press Release

Vanguard Convertible Securities Fund Reopens to New Individual Investors

VALLEY FORGE, Pa.--(BUSINESS WIRE)--Vanguard is reopening the $1.8 billion Vanguard Convertible Securities Fund (VCVSX) to new individual investors, effective immediately. In addition, the $25,000 annual investment limit that applied to existing accounts has been removed.

The fund was closed and the investment limit was adopted in June 2009. At that time, Vanguard and the fund�s advisor, Oaktree Capital Management, L.P. of Los Angeles, cited concerns that continued strong cash inflows could impede the advisor�s ability to effectively manage the fund. Cash inflows have since subsided, and Vanguard is now accepting additional purchases from new individual investors.

The Convertible Securities Fund seeks to provide income and long-term capital appreciation by investing in a broadly diversified group of these hybrid securities, which combine the investment characteristics of bonds and common stocks. Oaktree Capital Management, L.P., the fund�s investment advisor since 1996, uses a bottom-up approach to select convertible issues for the portfolio.

Six Vanguard funds remain closed to new accounts: Vanguard PRIMECAP Fund, PRIMECAP Core Fund, Capital Opportunity Fund, Capital Value Fund, Admiral� Treasury Money Market Fund, and Federal Money Market Fund.

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