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

Immediately after careful review, Vanguard determined that the minimal source of unique short-time period municipal securities readily available in Pennsylvania and New Jersey will make it no longer feasible to satisfy the investment goals and maintain the diversification and possibility profile of the $one.eight billion Vanguard Pennsylvania Municipal Funds Market Fund and the $one.two billion Vanguard New Jersey Municipal Funds Market Fund. Vanguard has closed both cash to new buyers and ideas to liquidate each and every of the cash in November. Vanguard will carry on to devote in the Pennsylvania and New Jersey cash industry universes as part of Vanguard Municipal Funds Market Fund, Vanguard Pennsylvania Extensive-Time period Tax-Exempt Fund, and Vanguard New Jersey Extensive-Time period Tax-Exempt Fund.

“We are focused on supplying a feasible and considerate lineup of cash industry merchandise, and we are confident that our streamlined suite of tax-exempt cash industry cash is effectively suited to satisfy investors’ funds management and tax-free of charge revenue tastes,” mentioned Greg Davis, Vanguard chief investment officer. “Due to the short source of particular styles of municipal securities readily available in Pennsylvania and New Jersey, we feel these unique municipal cash markets no longer supply the industry depth wanted to prudently supply these state-unique merchandise in all industry situations. Our very low price ratios let us to take care of our cash in a conservative way, and we will carry on to act in the finest pursuits of our shoppers to assure our cash satisfy their unique investment goals.”

Vanguard’s cash industry investment teams utilize a conservative method to fund layout and investment philosophy, focusing on the highest-excellent credit history securities readily available. Vanguard municipal cash industry cash are overseen by a group of municipal bond investment gurus, together with portfolio administrators, senior credit history investigate analysts, investigate associates, and traders. The business has a deep credit history investigate group that analyzes unique securities and collaborates intently with our portfolio administrators and traders. The firm’s stringent investment protocols have enabled Vanguard cash to consider on meaningfully significantly less credit history possibility relative to friends more than the decades to assure liquidity throughout a assortment of industry situations.

Shareholders have the opportunity to trade into a further Vanguard fund, together with, but not minimal to, Vanguard Municipal Funds Market Fund. Shareholders may perhaps also decide on to redeem shares prior to the liquidation day. On the liquidation day, the fund’s belongings will be marketed and the proceeds distributed to any remaining shareholders.

Essential dates

• September twenty five, 2020. The cash are closed to all new buyers.
• November 5, 2020. The cash will near to new investments from existing shareholders. Fund privileges, together with checkwriting, different redemption fund, direct deposit, computerized investments and exchanges, directed dividend payments, computerized withdrawals, and expected minimum amount distributions, will no longer be readily available. Checks introduced for payment on the fund ahead of November 5 will be honored if adequate shares are readily available for payment.
• On or all-around November 24, 2020. At the near of business, the Pennsylvania and New Jersey Municipal Funds Market Cash stop to operate.

  All remaining proceeds will be distributed to shareholders by wire (using most well-liked banking instructions) or by check (using tackle of record), except Vanguard receives other instructions by November 23, 2020.

Vanguard: A preset revenue chief

With more than $one.9 trillion in world wide belongings below management, Vanguard Set Revenue Team is just one of the most significant bond and cash industry fund administrators and the most significant company of municipal bond cash in the field. Vanguard released its to start with municipal bond cash in 1977 and now oversee more than 100 world wide mandates on behalf of Vanguard buyers, together with lively and indexed domestic and intercontinental bonds, municipal bonds, cash industry securities, and steady price belongings. Vanguard’s one of a kind construction and continued concentration on very low expenses enables Vanguard fund administrators to keep away from taking on undue possibility to improve returns or sacrifice excellent to arrive at for yield.

Go through the prospectus updates for the Pennsylvania Municipal Funds Market Fund and the New Jersey Municipal Funds Market Fund.

Notes:

For more information about Vanguard cash, visit vanguard.com to get hold of a prospectus or, if readily available, a summary prospectus. Expenditure goals, threats, expenses, bills, and other critical information about a fund are contained in the prospectus read and consider it carefully ahead of investing.

All investing is topic to possibility, together with the feasible reduction of the cash you devote.

Municipal cash industry cash: The fund is only readily available to retail buyers (organic folks). You could get rid of cash by investing in the fund. Despite the fact that the fund seeks to maintain the price of your investment at $one for every share, it can’t warranty it will do so. The fund may perhaps impose a cost on the sale of your shares or may perhaps briefly suspend your ability to market shares if the fund’s liquidity falls underneath expected minimums for the reason that of industry situations or other components. An investment in the fund is not insured or assured by the Federal Deposit Insurance Corporation or any other federal government agency. The fund’s sponsor has no legal obligation to supply money assist to the fund, and you should not assume that the sponsor will supply money assist to the fund at any time.

Vanguard Federal Funds Market Fund: You could get rid of cash by investing in the fund. Despite the fact that the fund seeks to maintain the price of your investment at $one for every share, it can’t warranty it will do so. An investment in the fund is not insured or assured by the Federal Deposit Insurance Corporation or any other federal government agency. The fund’s sponsor has no legal obligation to supply money assist to the fund, and you should not assume that the sponsor will supply money assist to the fund at any time.

In purchase to supply for an orderly liquidation and satisfy redemptions in anticipation of the liquidation, the fund may perhaps deviate from its investment aim and techniques as the liquidation day approaches.

Shareholders should check with their have tax advisors about any tax liability ensuing from any investment decision together with, 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 usually pointed out.