News release

Vanguard To Liquidate Convertible Securities Fund

VALLEY FORGE, PA (January 3, 2019)—Vanguard today announced that the $962.5 million Vanguard Convertible Securities Fund has been closed to new investors in advance of a planned liquidation in late March. Shareholders of the fund are being notified and have the opportunity to exchange into another Vanguard fund or redeem shares prior to the liquidation date, at which time the fund’s assets will be sold and the proceeds distributed.

After careful review of the fund’s investment rationale and client usage, Vanguard determined that investors could achieve similar risk-return exposures and long-term returns by investing in a diversified, balanced portfolio of global stock and bond funds.

Vanguard introduced the fund in 1986, primarily for pension funds, endowments, and corporate and non-profit retirement plans. Despite the fund’s capable advisor and prudent approach to managing convertible securities, the fund has not gained broad acceptance among these investors and remains one of the smallest offerings in terms of net assets among Vanguard’s stock and balanced offerings.

The liquidation is a result of Vanguard’s ongoing and comprehensive review of its global fund and ETF line-up. “We are adding new products that have investment merit and investor demand, changing advisors and mandates to improve investor outcomes, and eliminating funds that lack a distinct role or strong investment case,” said Matthew Brancato, head of Vanguard’s Portfolio Review Department, who noted that the company recently introduced two ESG ETFs and announced the merger of two equity funds.

Vanguard liquidated its Ohio Tax-Exempt Money Market Fund in 2017 and the U.K.-domiciled Ultra- Short-Term Bond Fund in 2018.

The fund’s advisor, Oaktree Capital Management, will oversee the liquidation and continue to manage portions of the U.S.-domiciled Vanguard Emerging Markets Select Stock Fund and the U.K.-domiciled Vanguard Global Emerging Markets Fund.


About Vanguard

Vanguard is one of the world’s largest investment management companies. As of November 30, 2018, Vanguard managed $5.1 trillion in global assets. The firm, headquartered in Valley Forge, Pennsylvania, offers more than 400 funds to its more than 20 million investors worldwide. For more information, visit

All asset figures as of November 30, 2018, unless otherwise noted.

For more information about Vanguard funds, visit to obtain a prospectus or, if available, a summary prospectus. Investment objectives, risks, charges, expenses, and other important information are contained in the prospectus; read and consider it carefully before investing.

Vanguard ETF Shares are not redeemable with the issuing Fund other than in very large aggregations worth millions of dollars. Instead, investors must buy or sell Vanguard ETF Shares in the secondary market and hold those shares in a brokerage account. In doing so, the investor may incur brokerage commissions and may pay more than net asset value when buying and receive less than net asset value when selling.

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