Vanguard reopens two mutual funds

The Vanguard Group Inc. has reopened the Vanguard Explorer Fund (VEXPX) and the Vanguard Health Care Fund (VGHCX) to new shareholders. Additionally, the Malvern, Pa.-based fund company has removed the $25,000 annual investment limit for the Vanguard Explorer Fund, which is a small-cap-growth fund that had $10.1 billion in assets as of February 2006. The Explorer Fund requires a minimum initial investment of $3,000 to open an individual retirement account or a custodian account. The Vanguard Health Care Fund, which focuses on pharmaceutical, biotechnology and other health-care-related stocks, was closed in March 2005. The minimum initial investment for a new account of any type in the investor shares of the Health Care Fund is $25,000. The following Vanguard funds remain closed: Vanguard Primecap Fund (VPMCX), Vanguard Capital Opportunity Fund (VHCOX), Vanguard Precious Metals and Mining Fund (VGPMX) and Vanguard International Explorer Fund (VINEX). “We believe that the funds can accommodate additional assets at this time, given their current size and cash flow levels,” said Vanguard chairman and chief executive Jack Brennan, according to a statement. Vanguard manages nearly $1.25 trillion in U.S. mutual fund assets, including more than $360 billion in employer-sponsored retirement plans.