Vanguard Wellington Fund closing to financial intermediaries

TheShadow

https://www.sec.gov/Archives/edgar/data/105563/000168386321001655/f8340d1.htm

497 1 f8340d1.htm VANGUARD WELLINGTON FUND 497

Vanguard Wellington™ Fund

Supplement to the Prospectus and Summary Prospectus

Important Note Regarding Vanguard Wellington Fund

Vanguard Wellington Fund will be closed to all prospective financial advisory, institutional, and intermediary clients (other than clients who invest through a Vanguard brokerage account).

The Fund will remain closed until further notice and there is no specific time frame for when the Fund will reopen. During the Fund's closed period, all current shareholders may continue to purchase, exchange, or redeem shares of the Fund online, by telephone, or by mail.

The Fund may modify these transaction policies at any time and without prior notice to shareholders. You may call Vanguard for more detailed information about the Fund's transaction policies. Participants in employer-sponsored plans may call Vanguard Participant Services at 800-523-1188. Investors in nonretirement accounts and IRAs may call Vanguard's Investor Information Department at 800-662-7447.

© 2019 The Vanguard Group, Inc. All rights reserved.


Vanguard Marketing Corporation, Distributor.

PS 21 032019

JonGaltIII

YTD performance is .34% for this well known and outstanding long term fund. Just curious how current investors in Wellington feel about this closure to intermediaries? Is this a good sign, neutral or negative to you?

msf

I must have blinked. I don't recall Wellington being reopened after it was closed to third parties in 2019:
https://mutualfundobserver.com/discuss/discussion/48728/vanguard-wellington-fund-closed-to-third-party-intermediaries

In recent years, fund companies have experimented with various ways of closing funds. One thing I’ve seen more often is funds closing their doors halfway: They close the fund to investors using fund super­markets but leave them open to those who invest directly with the fund company.

This really serves two purposes. First, it slows down the rate of inflows. Second, it leaves more profits for the fund company because it doesn’t have to pay a No Transaction Fee plan provider like Schwab or Fidelity the usual 35 basis points in fees.

https://www.morningstar.com/articles/699524/these-medalists-are-closed-but-left-the-backdoor-open

That was written in mid-2015, and included Wellington as one of the funds that were "halfway" closed at the time.

TheShadow

I believe Vanguard reiterates its prior notices/actions such as limiting your annual $25,000 into the Vanguard Primecap Funds.

wxman123

JonGaltIII said:

YTD performance is .34% for this well known and outstanding long term fund. Just curious how current investors in Wellington feel about this closure to intermediaries? Is this a good sign, neutral or negative to you?

More like 3.54% YTD. Having a good year in this balanced space.