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

Right after cautious overview, Vanguard decided that the limited offer of particular brief-phrase municipal securities available in Pennsylvania and New Jersey can make it no longer possible to meet up with the expense goals and keep the diversification and hazard profile of the $1.8 billion Vanguard Pennsylvania Municipal Revenue Current market Fund and the $1.two billion Vanguard New Jersey Municipal Revenue Current market Fund. Vanguard has closed equally resources to new traders and plans to liquidate each and every of the resources in November. Vanguard will keep on to make investments in the Pennsylvania and New Jersey income market universes as part of Vanguard Municipal Revenue Current market Fund, Vanguard Pennsylvania Lengthy-Phrase Tax-Exempt Fund, and Vanguard New Jersey Lengthy-Phrase Tax-Exempt Fund.

“We are centered on supplying a practical and considerate lineup of income market merchandise, and we are confident that our streamlined suite of tax-exempt income market resources is effectively suited to meet up with investors’ money management and tax-totally free cash flow tastes,” reported Greg Davis, Vanguard main expense officer. “Due to the brief offer of selected styles of municipal securities available in Pennsylvania and New Jersey, we feel these particular municipal income markets no longer present the market depth essential to prudently give these point out-particular merchandise in all market problems. Our small expense ratios allow us to deal with our resources in a conservative way, and we will keep on to act in the very best passions of our clientele to be certain our resources meet up with their particular expense goals.”

Vanguard’s income market expense teams make use of a conservative tactic to fund structure and expense philosophy, concentrating on the highest-high quality credit history securities available. Vanguard municipal income market resources are overseen by a staff of municipal bond expense experts, together with portfolio supervisors, senior credit history study analysts, study associates, and traders. The firm has a deep credit history study staff that analyzes particular person securities and collaborates closely with our portfolio supervisors and traders. The firm’s stringent expense protocols have enabled Vanguard resources to acquire on meaningfully fewer credit history hazard relative to friends more than the several years to be certain liquidity across a selection of market problems.

Shareholders have the possibility to trade into a further Vanguard fund, together with, but not limited to, Vanguard Municipal Revenue Current market Fund. Shareholders may also pick to redeem shares prior to the liquidation date. On the liquidation date, the fund’s property will be sold and the proceeds dispersed to any remaining shareholders.

Critical dates

  • September 25, 2020. The resources are closed to all new traders.
  • November 5, 2020. The resources will near to new investments from current shareholders. Fund privileges, together with checkwriting, alternative redemption fund, immediate deposit, automated investments and exchanges, directed dividend payments, automated withdrawals, and required minimal distributions, will no longer be available. Checks offered for payment on the fund right before November 5 will be honored if enough shares are available for payment.
  • On or all around November 24, 2020. At the near of enterprise, the Pennsylvania and New Jersey Municipal Revenue Current market Money cease to operate.

    All remaining proceeds will be dispersed to shareholders by wire (employing favored banking guidelines) or by check (employing handle of document), except if Vanguard receives other guidelines by November 23, 2020.

Vanguard: A set cash flow chief

With a lot more than $1.nine trillion in worldwide property beneath management, Vanguard Set Earnings Group is one of the largest bond and income market fund supervisors and the largest company of municipal bond resources in the marketplace. Vanguard released its 1st municipal bond resources in 1977 and now oversee a lot more than one hundred worldwide mandates on behalf of Vanguard traders, together with active and indexed domestic and intercontinental bonds, municipal bonds, income market securities, and secure price property. Vanguard’s exclusive construction and ongoing target on small expenses permits Vanguard fund supervisors to stay clear of getting on undue hazard to enhance returns or sacrifice high quality to get to for generate.

Read through the prospectus updates for the Pennsylvania Municipal Revenue Current market Fund and the New Jersey Municipal Revenue Current market Fund.


For a lot more data about Vanguard resources, pay a visit to to acquire a prospectus or, if available, a summary prospectus. Expenditure goals, challenges, fees, charges, and other critical data about a fund are contained in the prospectus go through and think about it diligently right before investing.

All investing is issue to hazard, together with the possible loss of the income you make investments.

The resources are only available to retail traders (purely natural individuals). You could lose income by investing in the resources. Even though the resources request to maintain the price of your expense at $1.00 for every share, they simply cannot ensure they will do so. The resources may impose a price upon the sale of your shares or may temporarily suspend your skill to promote shares if the funds’ liquidity falls beneath required minimums simply because of market problems or other things. Investments in the resources are not insured or guaranteed by the Federal Deposit Insurance policies Company or any other govt agency. The funds’ sponsor has no lawful obligation to give monetary assistance to the resources, and you should really not assume that the sponsor will give monetary assistance to the resources at any time.

In get to give for an orderly liquidation and fulfill redemptions in anticipation of the liquidation, the fund may deviate from its expense goal and techniques as the liquidation date methods.

Shareholders should really seek advice from their very own tax advisors about any tax liability ensuing from any expense conclusion together with, but not limited 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 usually pointed out.