Home chevron_right Latest Commentary chevron_right Adviser Fund Update Vanguard Capital Opportunity Reopens April 12, 2013 Vanguard Reopens Long-Shuttered Fund Investors who have awaited a chance to invest in one of the PRIMECAP Management team’s Vanguard funds now have their first opportunity to do so since 2009 (when PRIMECAP Core closed). The firm announced at the beginning of April that its Capital Opportunity fund is now open to all investors who can meet the $3,000 minimum. We should note, however, that Capital Opportunity is not quite the same fund it was when it debuted; the managers originally focused on small- and mid-cap stocks—over time, as assets grew and the team’s stockA financial instrument giving the holder a proportion of the ownership and earnings of a company. picks turned into larger, more successful companies, out of necessity the fund shifted away from its roots, and now has more of a large-cap character with some mid-cap exposure thrown in. This is not the first time Vanguard has closed and reopened Capital Opportunity; after strong performance and increasing cash inflows the minimum was raised from $3,000 to $25,000 in September 1999—six months later, Vanguard closed the doors completely. A little over a year down the road in April 2001, it reopened with the $25,000 minimum intact. Assets continued to grow and the fund was closed once more in March 2004—in the years since, we’ve wondered if it would ever be available to new investors again. Vanguard says that assets levels and cash flows have returned to a manageable enough level to justify the reopening; for the 12 months through March, over $900 million has been taken out of the fund (a combination of shares sold and market action), and since Capital Opportunity closed in 2004, $4.6 billion combined has flowed out of the Investor and Admiral shares. The two share classes now add up to $8.5 billion in assets, down from a peak of $10.5 billion in October 2007, but up from the $7.4 billion under management the last time it closed in 2004. (The reason for what seems like a discrepancy in the flows when compared to the asset levels has to do with the fund’s performance month to month—for Capital Opportunity, gains have replenished outflows to a certain extent.) Based on past experience, there’s no telling how long the fund will remain open this time around. Interested investors may want to get their feet across the threshold while the minimum is low and the doors are ajar. About Adviser Investments Adviser Investments operates as an independent, professional wealth management firm with expertise in Fidelity and Vanguard funds, actively managed mutual funds, ETFsA type of security which allows investors to indirectly invest in an underlying basket of financial instruments (these may include stocks, bonds, commodities or other types of instruments). Shares in an ETF are publicly traded on an exchange, and the price of an ETF’s shares will fluctuate throughout the trading day (traditional mutual funds trade only once a day). For example, one popular ETF tracks the companies in the S&P 500, so buying a share of the ETF gets an investor exposure to all 500 companies in the index., fixed-income investing, tactical strategies and financial planning. Our investment professionals focus on helping individual investors, trustsA legal document that functions as an instruction manual to how you want your money managed and spent in your later years as well as how your assets should be distributed after your death. Assets placed in a trust are generally safe from creditors and can be sold by the trustee in short order, avoiding the lengthy and costly probate process., foundations and institutions meet their investment goals. Our minimum account size is $350,000. For the fifth consecutive year, Adviser Investments was named to Barron’s list of the top 100 independent financial advisers nationwide and its list of the top advisory firms in Massachusetts in 2017. We have also been recognized on the Financial Times 300 Top Registered Investment Advisers list in 2014, 2015 and 2016. For more information, please visit www.adviserinvestments.com or call 800-492-6868. Disclaimer: This material is distributed for informational purposes only. The investment ideas and expressions of opinion may contain certain forward-looking statements and should not be viewed as recommendations, personal investment advice or considered an offer to buy or sell specific securities. Data and statistics contained in this report are obtained from what we believe to be reliable sources; however, their accuracy, completeness or reliability cannot be guaranteed. Our statements and opinions are subject to change without notice and should be considered only as part of a diversified portfolio. You may request a free copy of the firm’s Form ADV Part 2, which describes, among other items, riskThe probability that an investment will decline in value in the short term, along with the magnitude of that decline. Stocks are often considered riskier than bonds because they have a higher probability of losing money, and they tend to lose more than bonds when they do decline. factors, strategies, affiliations, services offered and fees charged. Past performance is not an indication of future returns. The tax information contained herein is general in nature, is provided for informational purposes only, and should not be construed as legal or tax advice. We do not provide legal or tax advice. Always consult an attorney or tax professional regarding your specific legal or tax situation. The Barron’s rankings consider factors such as assets under management, revenue produced for the firm, regulatory record, quality of practice and philanthropic work. This award does not consider client experience and is not indicative of future performance. Editors at the Financial Times bestowed “elite” status on 300 firms in the U.S., as determined by assets under management, asset growth, longevity, compliance record, industry certifications and online accessibility. © 2018 Adviser Investments, LLC. All Rights Reserved.