Vanguard Capital Opportunity Fund reopens
April 03, 2013
Vanguard Capital Opportunity Fund is now open to all individual investors for the first time since 2004 and its $25,000 annual contribution limit for individual investors has been removed. After careful consideration of the fund's current size and cash flow, the fund's board of trustees determined that access can be expanded once again to include all individual investors.
The aggressive multi-cap growth fund is designed to complement a diversified investment portfolio with a long-term horizon. It invests in companies that its manager, PRIMECAP Management Company, believes will grow in time but may be volatile in the short term. PRIMECAP screens out short-term market "noise" and focuses the fund's investments in certain market sectors, including information technology and health care.
Vanguard's fund management difference
Our approach to fund management stands out from competitors and benefits investors.
The investment restrictions put in place in 2004 were triggered by the combination of extraordinary market conditions and exceptionally high cash flows, which made it difficult for the advisor to execute the fund's investment strategy effectively. The move successfully sought to protect the fund's long-term shareholders, as well as preserve PRIMECAP's ability to produce competitive long-term returns.
The fund reopened to clients of Vanguard Flagship Services® in 2007 and Vanguard Asset Management Services™ clients in 2009. Those client segments provided moderate cash flow that met the funds' needs at the time.
The fund is available in Investor and Admiral™ share classes. There's a minimum initial investment of $3,000 when purchasing Investor Shares to open a new general, IRA, or custodial account. For Admiral Shares, the minimum initial investment is $50,000.
- All investing is subject to risks, including the possible loss of the money you invest.
- Diversification does not ensure a profit or protect against a loss in a declining market.
- Prices of mid-cap stocks often fluctuate more than those of large-company stocks. Funds that concentrate on a relatively narrow market sector face the risk of higher share-price volatility.
- Vanguard Asset Management Services are provided by Vanguard National Trust Company, which is a federally chartered, limited-purpose trust company operated under the supervision of the Office of the Comptroller of the Currency.