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

Soon after cautious evaluation, Vanguard determined that the minimal source of distinct short-phrase municipal securities available in Pennsylvania and New Jersey can make it no more time possible to fulfill the financial investment aims and sustain the diversification and hazard profile of the $1.8 billion Vanguard Pennsylvania Municipal Money Market place Fund and the $1.two billion Vanguard New Jersey Municipal Money Market place Fund. Vanguard has closed both of those cash to new investors and plans to liquidate every of the cash in November. Vanguard will continue to devote in the Pennsylvania and New Jersey dollars sector universes as component of Vanguard Municipal Money Market place Fund, Vanguard Pennsylvania Extended-Term Tax-Exempt Fund, and Vanguard New Jersey Extended-Term Tax-Exempt Fund.

“We are centered on delivering a practical and considerate lineup of dollars sector merchandise, and we are self-assured that our streamlined suite of tax-exempt dollars sector cash is very well suited to fulfill investors’ hard cash management and tax-totally free profits tastes,” said Greg Davis, Vanguard chief financial investment officer. “Due to the short source of sure types of municipal securities available in Pennsylvania and New Jersey, we believe these distinct municipal dollars markets no more time offer you the sector depth necessary to prudently present these state-distinct merchandise in all sector problems. Our lower cost ratios allow us to manage our cash in a conservative fashion, and we will continue to act in the very best interests of our clientele to make sure our cash fulfill their distinct financial investment aims.”

Vanguard’s dollars sector financial investment teams hire a conservative strategy to fund layout and financial investment philosophy, focusing on the maximum-excellent credit securities available. Vanguard municipal dollars sector cash are overseen by a crew of municipal bond financial investment industry experts, which include portfolio managers, senior credit study analysts, study associates, and traders. The agency has a deep credit study crew that analyzes specific securities and collaborates carefully with our portfolio managers and traders. The firm’s stringent financial investment protocols have enabled Vanguard cash to get on meaningfully fewer credit hazard relative to peers about the many years to make sure liquidity throughout a array of sector problems.

Shareholders have the option to exchange into a further Vanguard fund, which include, but not minimal to, Vanguard Municipal Money Market place Fund. Shareholders may well also select to redeem shares prior to the liquidation date. On the liquidation date, the fund’s belongings will be marketed and the proceeds distributed to any remaining shareholders.

Vital dates

• September twenty five, 2020. The cash are closed to all new investors.
• November five, 2020. The cash will near to new investments from present shareholders. Fund privileges, which include checkwriting, choice redemption fund, immediate deposit, automatic investments and exchanges, directed dividend payments, automatic withdrawals, and expected minimal distributions, will no more time be available. Checks offered for payment on the fund before November five will be honored if enough shares are available for payment.
• On or around November 24, 2020. At the near of business, the Pennsylvania and New Jersey Municipal Money Market place Funds stop to operate.

  All remaining proceeds will be distributed to shareholders by wire (employing most well-liked banking recommendations) or by verify (employing tackle of file), except if Vanguard receives other recommendations by November 23, 2020.

Vanguard: A set profits leader

With extra than $1.nine trillion in international belongings below management, Vanguard Fixed Cash flow Group is a person of the major bond and dollars sector fund managers and the major provider of municipal bond cash in the industry. Vanguard released its initial municipal bond cash in 1977 and now oversee extra than one hundred international mandates on behalf of Vanguard investors, which include lively and indexed domestic and global bonds, municipal bonds, dollars sector securities, and secure worth belongings. Vanguard’s one of a kind composition and ongoing emphasis on lower expenses permits Vanguard fund managers to stay away from having on undue hazard to improve returns or sacrifice excellent to attain for produce.

Read the prospectus updates for the Pennsylvania Municipal Money Market place Fund and the New Jersey Municipal Money Market place Fund.

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Notes:

For extra information about Vanguard cash, pay a visit to vanguard.com to get hold of a prospectus or, if available, a summary prospectus. Investment decision aims, challenges, costs, fees, and other important information about a fund are contained in the prospectus read and contemplate it carefully before investing.

All investing is issue to hazard, which include the possible loss of the dollars you devote.

Municipal dollars sector cash: The fund is only available to retail investors (all-natural people). You could get rid of dollars by investing in the fund. Although the fund seeks to protect the worth of your financial investment at $1 for each share, it can’t ensure it will do so. The fund may well impose a rate upon the sale of your shares or may well quickly suspend your means to market shares if the fund’s liquidity falls beneath expected minimums because of sector problems or other aspects. An financial investment in the fund is not insured or certain by the Federal Deposit Insurance coverage Company or any other governing administration agency. The fund’s sponsor has no legal obligation to present economical aid to the fund, and you ought to not assume that the sponsor will present economical aid to the fund at any time.

Vanguard Federal Money Market place Fund: You could get rid of dollars by investing in the fund. Although the fund seeks to protect the worth of your financial investment at $1 for each share, it can’t ensure it will do so. An financial investment in the fund is not insured or certain by the Federal Deposit Insurance coverage Company or any other governing administration agency. The fund’s sponsor has no legal obligation to present economical aid to the fund, and you ought to not assume that the sponsor will present economical aid to the fund at any time.

In order to present for an orderly liquidation and fulfill redemptions in anticipation of the liquidation, the fund may well deviate from its financial investment objective and tactics as the liquidation date approaches.

Shareholders ought to consult their possess tax advisors about any tax legal responsibility resulting from any financial investment determination which include, but not minimal to, redemption, exchanging shares for shares of a further fund, or the receipt of liquidation proceeds.

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