Vanguard takes steps to align municipal money market lineup with changing market dynamics

Table of Contents

Immediately after cautious critique, Vanguard determined that the minimal source of distinct small-time period municipal securities out there in Pennsylvania and New Jersey would make it no longer attainable to fulfill the expenditure objectives and preserve the diversification and threat profile of the $one.eight billion Vanguard Pennsylvania Municipal Revenue Market Fund and the $one.two billion Vanguard New Jersey Municipal Revenue Market Fund. Vanguard has shut both cash to new traders and ideas to liquidate each individual of the cash in November. Vanguard will carry on to invest in the Pennsylvania and New Jersey funds sector universes as element of Vanguard Municipal Revenue Market Fund, Vanguard Pennsylvania Extensive-Phrase Tax-Exempt Fund, and Vanguard New Jersey Extensive-Phrase Tax-Exempt Fund.

“We are focused on providing a feasible and thoughtful lineup of funds sector products and solutions, and we are self-assured that our streamlined suite of tax-exempt funds sector cash is properly suited to fulfill investors’ hard cash management and tax-totally free cash flow preferences,” claimed Greg Davis, Vanguard main expenditure officer. “Due to the small source of selected sorts of municipal securities out there in Pennsylvania and New Jersey, we feel these distinct municipal funds marketplaces no longer provide the sector depth needed to prudently offer these condition-distinct products and solutions in all sector problems. Our very low cost ratios allow for us to take care of our cash in a conservative fashion, and we will carry on to act in the finest interests of our clients to assure our cash fulfill their distinct expenditure objectives.”

Vanguard’s funds sector expenditure teams hire a conservative tactic to fund style and expenditure philosophy, focusing on the greatest-quality credit score securities out there. Vanguard municipal funds sector cash are overseen by a group of municipal bond expenditure pros, including portfolio supervisors, senior credit score investigate analysts, investigate associates, and traders. The business has a deep credit score investigate group that analyzes specific securities and collaborates carefully with our portfolio supervisors and traders. The firm’s stringent expenditure protocols have enabled Vanguard cash to acquire on meaningfully less credit score threat relative to friends more than the yrs to assure liquidity throughout a vary of sector problems.

Shareholders have the option to exchange into yet another Vanguard fund, including, but not minimal to, Vanguard Municipal Revenue Market Fund. Shareholders may perhaps also decide on to redeem shares prior to the liquidation date. On the liquidation date, the fund’s property will be bought and the proceeds dispersed to any remaining shareholders.

Crucial dates

September twenty five, 2020. The cash are shut to all new traders.
November five, 2020. The cash will close to new investments from present shareholders. Fund privileges, including checkwriting, substitute redemption fund, immediate deposit, computerized investments and exchanges, directed dividend payments, computerized withdrawals, and demanded minimum distributions, will no longer be out there. Checks introduced for payment on the fund in advance of November five will be honored if sufficient shares are out there for payment.
On or all-around November 24, 2020. At the close of enterprise, the Pennsylvania and New Jersey Municipal Revenue Market Funds cease to operate.
All remaining proceeds will be dispersed to shareholders by wire (utilizing favored banking instructions) or by verify (utilizing tackle of history), except if Vanguard gets other instructions by November 23, 2020.

Vanguard: A fastened cash flow leader

With additional than $one.9 trillion in world property beneath management, Vanguard Mounted Money Team is a single of the greatest bond and funds sector fund supervisors and the greatest supplier of municipal bond cash in the market. Vanguard launched its first municipal bond cash in 1977 and now oversee additional than 100 world mandates on behalf of Vanguard traders, including energetic and indexed domestic and worldwide bonds, municipal bonds, funds sector securities, and secure value property. Vanguard’s special structure and ongoing focus on very low prices enables Vanguard fund supervisors to stay clear of taking on undue threat to improve returns or sacrifice quality to get to for generate.

Browse the prospectus updates for the Pennsylvania Municipal Revenue Market Fund and the New Jersey Municipal Revenue Market Fund.

Notes:

For additional details about Vanguard cash, go to vanguard.com to attain a prospectus or, if out there, a summary prospectus. Financial investment objectives, dangers, costs, expenses, and other critical details about a fund are contained in the prospectus browse and take into account it diligently in advance of investing.

All investing is matter to threat, including the attainable decline of the funds you invest.

Municipal funds sector cash: The fund is only out there to retail traders (normal people). You could get rid of funds by investing in the fund. Despite the fact that the fund seeks to preserve the value of your expenditure at $one for every share, it are not able to guarantee it will do so. The fund may perhaps impose a rate on the sale of your shares or may perhaps temporarily suspend your capacity to sell shares if the fund’s liquidity falls underneath demanded minimums due to the fact of sector problems or other components. An expenditure in the fund is not insured or confirmed by the Federal Deposit Coverage Company or any other govt agency. The fund’s sponsor has no lawful obligation to offer monetary assist to the fund, and you must not count on that the sponsor will offer monetary assist to the fund at any time.

Vanguard Federal Revenue Market Fund: You could get rid of funds by investing in the fund. Despite the fact that the fund seeks to preserve the value of your expenditure at $one for every share, it are not able to guarantee it will do so. An expenditure in the fund is not insured or confirmed by the Federal Deposit Coverage Company or any other govt agency. The fund’s sponsor has no lawful obligation to offer monetary assist to the fund, and you must not count on that the sponsor will offer monetary assist to the fund at any time.

In buy to offer for an orderly liquidation and fulfill redemptions in anticipation of the liquidation, the fund may perhaps deviate from its expenditure aim and techniques as the liquidation date ways.

Shareholders must consult with their own tax advisors about any tax liability resulting from any expenditure choice including, but not minimal to, redemption, exchanging shares for shares of yet another fund, or the receipt of liquidation proceeds.

All asset figures are as of August 31, 2020, except if in any other case pointed out.