No changes to the Treasury Money Market Fund's investment strategies are anticipated as a result of its closing to new investors. Introduced in 1992, the Treasury Money Market Fund is managed by Vanguard's Fixed Income Group, one of the world's largest fixed income investment advisors, with approximately $1.6 trillion in assets under management as of March 31, 2020. Free unlimited access to ThinkAdvisor.com which provides advisors, like you, with comprehensive coverage of the products, services and trends necessary to guide your clients in making critical wealth, health and life decisions. Vanguard’s Prime Money Market Fund, its highest yielding money market fund, saw net outflows of $2 billion in March, according to Wiener. The fund’s seven-day yield was 0.64% as of Wednesday’s market close, down from 1.51% a month earlier, just before the Federal Reserve slashed interest rates from 1.25% to near zero (a range of zero to 0.25%), according to Daniel Wiener, editor of, Investors have been rushing into money market funds in a flight to safety as stocks plummeted and corporate bonds and munis experienced extremely choppy trading in March before, Vanguard Expands Digital Advisor Pilot Program, Vanguard to Merge Cap Value, Windsor Fund, SEC Charges Top-Ranked Tennessee Advisor Over 12b-1 Fees, 2020: An Advisor-Focused Review of the Unforgettable Year, Group Lacks Authority to Deal With Loan Risks: GAO, Sign Up for the Portfolio Builder Newsletter, Sign Up for the Inside Wealth Management Newsletter, Sign Up for the Career Advantage Newsletter. Vanguard Group said on Thursday it closed its $39.5 billion Treasury Money Market Fund to new investors, becoming the latest big asset manager looking to … The Vanguard Treasury Money Market fund has closed to new investors for the first time in more than a decade. At Fidelity, the Treasury money funds were closed in 2008 and reopened in 2010. The Vanguard Group Inc. has announced plans to merge two of its money market mutual funds and close a third fund to new investors. New money market investors would still have access to other funds in its $414 billion lineup, Vanguard said. As criminals get smarter you must take extra steps to protect both your clients and your firm. New investors will continue to have access to its other money market funds, including its Prime Money Market and Federal Money Market funds as well as its tax-exempt money market funds. He noted that new flows to the Vanguard Treasury Money Market Fund (VUSXX) jumped from about $600 million in February to $7.4 billion in March. Existing shareholders of the … Exclusive discounts on ALM and ThinkAdvisor events. The insurer-owned firm allegedly failed to disclose fees charged to clients and made misleading statements to them, the SEC claims. Vanguard closed the $39.5 billion Treasury Money Market Fund to protect existing fund shareholders from high levels of cash flow. Vanguard closed the fund in April 2020 to protect existing shareholders following a spike in Malvern, Pa.-based … All asset figures are as of March 31, 2020, unless otherwise noted. The company is seeking to protect existing fund shareholders from high levels of cash flow that could potentially accelerate reductions to the fund’s yield. Vanguard Group said on Thursday it closed its $39.5 billion Treasury Money Market Fund to new investors, becoming the latest big asset manager looking to protect the returns of existing clients. And as the industry is shifting towards providing more planning services to clients, don’t get left behind! Vanguard Treasury Money Market Fund (VUSXX) After Market ETF Quotes - Nasdaq offers after market quotes & market activity data for US and global markets. Access to other award-winning ALM websites including TreasuryandRisk.com and Law.com. Vanguard has a long history of acting preemptively to protect its shareholders. Vanguard closed the fund in 2009 after the Fed cut rates to zero and didn’t reopen it until 2016. Harry Dent: Market Crash Coming in 2-3 Years; Economy ‘Already Dead’, Top 12 U.S. Cities Where Luxury Home Sales Are Surging, Takeover Battle Subsides as Cathie Wood's Ark Targets 20% ETF Returns, Senate Approves Repeal of Health Insurers' Antitrust Exemption. Vanguard today closed the $39.5 billion Vanguard Treasury Money Market Fund (Investor Shares: VUSXX, CUSIP 921932109) to most new investors to slow the fund's growth and protect its current shareholders. The record influx last fall into Treasury money-market funds is threatening to cut off the supply of these funds and reshape the industry. Vanguard today closed the $39.5 billion Vanguard Treasury Money Market Fund (Investor Shares: VUSXX, CUSIP 921932109) to most new investors to slow the fund's growth and protect its current shareholders. Net flows into money market funds overall surged in March, totaling an estimated $685 billion, according to Morningstar, which saw net outflows in many asset categories though slight inflows into U.S. equity — primarily passive — and commodities funds. Prime fund investors will be eligible for lower fees, as Vanguard will reduce the investment minimum for its Prime Admiral Shares from $5 million to $3,000, effective Aug. 27. Vanguard abruptly closed its $39.5 billion Treasury Money Market Fund to new investors after the end of trading on Thursday. Treasury Money Market Fund $1,000.00 $1,002.00 $0.45 Based on Hypothetical 5%Yearly Return Cash Reserves Federal Money Market Fund (formerly Prime Money Market … … Preserve wealth with help from advanced tax planning and risk management strategies. ET by Barron's Low yields push Vanguard to money-fund steps Jun. "Absent this change, high levels of cash inflows would potentially require the fund to purchase additional Treasuries at lower yields and risk reducing the fund's yield for current shareholders.". Any decision about a Vanguard money market fund is based on a rigorous set of factors including impact to existing shareholders and our assessment of how best to offer our clients access to high-quality, diversified, low-cost money market funds. The fund generally invests 100% of its assets in government securities, satisfying the 99.5% minimum requirement set by the Securities and Exchange Commission for designation as a government money market fund. Vanguard Closes Treasury Money Market Fund To New Investors PR Newswire • April 16, 2020 VALLEY FORGE, Pa., April 16, 2020 /PRNewswire/ -- … Driving Growth Through Multigenerational Relationships. U.S. life insurers own about $129 billion of $611 billion now held in collateralized loan obligations. Vanguard today closed its $39.5 billion Treasury Money Market Fund (VUSXX) to new shareholder accounts. Get the latest best practices, relevant stats and industry trends - quickly and easily. Vanguard Treasury Money Market Fund reopens Vanguard also announced the reopening of its $38.9 billion Treasury Money Market Fund. Your article was successfully shared with the contacts you provided. VALLEY FORGE, Pa., April 16, 2020 /PRNewswire/ -- Vanguard today closed its $39.5 billion Treasury Money Market Fund (VUSXX) to new shareholder accounts. Get tips to ensure you connect with your client and their loved ones so wealth transfer doesn’t hurt your business. Vanguard has closed its USD39.5 billion Treasury Money Market Fund (VUSXX) to new shareholder accounts. The mutual fund giant experienced total net outflows of $37 billion in March, according to Morningstar. A Planner's Guide to Consolidated Advisory Fees. Investors have been rushing into money market funds in a flight to safety as stocks plummeted and corporate bonds and munis experienced extremely choppy trading in March before the Fed aggressively intervened to support the bond market. Vanguard said it would continue to monitor the Treasury Money Market Fund and take additional action if needed. In the past, that has occasionally required Vanguard to restrict cash inflows to funds experiencing rapid or dramatic growth. Vanguard Treasury Money Market Fund (Investor Shares VUSXX), which was closed to new investors earlier this year, will reopen to all investors, effective today. The fund remains open for additional purchases by current shareholders. Fidelity Investments closed three of its money market funds to new investors Tuesday following the recent reduction in the Federal Reserve rates and record-low yields on U.S. Treasury … Vanguard closed the fund in April 2020 to protect existing shareholders following a spike in demand for government money … Vanguard offers several other high-quality money market funds, including Vanguard Federal Money Market Fund (Investor Shares: VMFXX, CUSIP 922906300), Vanguard Prime Money Market Fund (Admiral™ Shares: VMRXX, CUSIP 922906508; Investor Shares: VMMXX, CUSIP 922906201), and Vanguard's national and state-specific municipal money market funds. "We are taking this step to temper cash flows in response to the current market environment, which has increased demand for U.S. Treasury securities and driven a notable decline in yields," said Kaitlyn Caughlin, head of Vanguard's Portfolio Review Department. It was only the second time in 10 years that Vanguard’s long-term funds saw net monthly outflows, and the outflows in March were due mostly to bond fund redemptions in both active and passive taxable and muni bond funds, according to Morningstar. Vanguard closed the Treasury Money Market Fund to new investors in mid-April to protect existing shareholders from high levels of cash flow that risked accelerating declines in … Vanguard money market funds can help you protect the cash you need to cover short-term expenses. Vanguard closed its money market fund Treasury Money Market Fund (VUSXX) to new investors to try to keep fund yields positive. Existing shareholders of the fund, however, can continue to purchase new shares without limits. Vanguard today closed the $39.5 billion Vanguard Treasury Money Market Fund (Investor Shares: VUSXX) to most new investors to slow the fund's growth and protect its current shareholders. Vanguard abruptly closed its $39.5 billion Treasury Money Market Fund to new investors after the end of trading on Thursday. The Fund will remain closed until further notice and there is no specific timeframe for when the Fund will reopen. Vanguard Treasury Money Market Fund reopens Vanguard also announced the reopening of its $38.9 billion Treasury Money Market Fund. Vanguard closed … Vanguard Treasury Money Market Fund (the "Fund") is closed to all new investors (with the exception of participants who invest in the Fund only through defined contribution plans that offer the Fund as an existing option). Vanguard Treasury Money Market Fund Supplement Dated April 16, 2020, to the Prospectus and Summary Prospectus Dated December 20, 2019 Vanguard Treasury Money Market Fund (the “Fund”) is closed to all new investors Copyright © 2020 ALM Media Properties, LLC. Vanguard will continue to monitor the Treasury Money Market Fund's cash flow and will take additional action if needed. Vanguard Treasury Money Market Fund reopens Vanguard also announced the reopening of its $38.9 billion Treasury Money Market Fund. “We do not negotiate with regulatory thugs that harass our clients,” the advisor, Timothy J. Pagliara, told ThinkAdvisor. The fund will continue to offer exposure to high-quality, short-term money market instruments whose interest and principal payments are backed by the full faith and credit of the U.S. government. This is just the latest sign from the Federal Reserve to keep the money market positive through the coronavirus. Other fund companies have taken similar steps including Fidelity Investments on March 31. The fund’s seven-day yield was 0.64% as of Wednesday’s market close, down from 1.51% a month earlier, just before the Federal Reserve slashed interest rates from 1.25% to near zero (a range of zero to 0.25%), according to Daniel Wiener, editor of The Independent Adviser for Vanguard Investors. If you're already a Vanguard client: Call 800-888-3751 Monday through Friday 8 a.m. to 8 p.m., Eastern time The company is seeking to protect existing Fund shareholders from high levels of … 16, 2020 at 6:23 p.m. Active funds accounted for about 70% of the outflows. Advance your career and take your firm's production to the next level with FREE practice-management tips. U.S. Treasury yields have fallen precipitously since the start of 2020 as a rolling economic collapse stemming from the COVID-19 pandemic has pushed investors into the securities and the cash … This mutual fund profile of the Treasury Money Market provides details such as the fund objective, average annual total returns, after-tax returns, initial minimum investment, expense ratio, style, and manager information. BOSTON, April 16 (Reuters) - Vanguard Group said on Thursday it closed its $39.5 billion Treasury Money Market Fund to new investors, becoming … Vanguard Cash Reserves Federal Money Market Fund Supplement Dated December 10, 2020, to the Prospectus and Summary Prospectus Dated December 20, 2019 (as supplemented September 29, 2020) Change in Performance There is no timeline for a reopening. There’s a lot for financial advisors and firms to be optimistic about for 2021, says Mercer Advisors CEO Dave Welling. … footnote * For the 10-year period ended September 30, 2020, 9 of 9 Vanguard money market funds outperformed their Lipper peer-group averages. Skip to main content Market … Vanguard closes Treasury Money Market Fund to new investors. Your annual fees would amount to … Effective at 4 p.m. Eastern time, April 16, the fund is no longer accepting new investor accounts from institutional clients, financial advisors, and retail investors. It explained that increasing new flows into the fund combined with extremely low Treasury yields could have the effect of reducing the fund’s yield. Vanguard Closes Treasury Money Market Fund to New Investors Vanguard 'will continue to monitor the fund and employ additional measures if needed' A flight to safety in the current coronavirus pandemic by investors looking to sit it out has caused Vanguard to close its $39.5 billion Treasury Money Market Fund (VUSXX) to new shareholder accounts. In an unusual move triggered by near-zero interest rates on government debt, The Vanguard Group said it will merge its retail Treasury money market fund into a lower-cost fund, and closed … All investing is subject to risk, including the possible loss of the money you invest. 5, … As you look for new ways to boost your bottom line, re-centering your business on planning can make a big difference. Similarly, should conditions change, Vanguard may reopen the fund to new investors. Effective at 4 p.m. Eastern time, April 16, the fund is no longer accepting new investor accounts from financial advisors, institutional clients, and retail investors. The Vanguard 500 Index Fund Admiral Shares (MUTF: VFIAX) charges an annual expense ratio of just 0.04%, or $4 on a $10,000 investment. Vanguard’s Treasury Money Market Fund Closes to New Investors Apr. Access practical suggestions and clear insights for portfolio management - easily and quickly. The Treasury Money Market Fund was closed to new investors in April 2020 as financial market volatility spurred greater interest in U.S. Treasury investments. All Rights Reserved. Vanguard said it made the move to protect existing shareholders from high levels of cash flow that could potentially accelerate declines in the fund’s yield. 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