Vanguard is looking to close its Vanguard Asset Allocation Fund. The Pennsylvania-based fund firm has changed the investment strategy and policies of the $8.6 billion fund and sacked its advisor Mellon Capital Management Corp. Vanguard’s quantitative equity and fixed-income groups have taken over investment advisory responsibilities of the fund.
The fund will be transitioned to a static 60 percent stocks and 40 percent bonds portfolio. Vanguard is looking to merge the fund into the $11.1 billion Vanguard Balanced Index Fund. The balanced index fund will be benchmarked against two indices representing the broad U.S. equity and U.S. taxable bond markets.
Click here for the release from Business Wire.