Vanguard Reopens PRIMECAP Funds to Investors

Vanguard

VALLEY FORGE, PAVanguard has announced that its PRIMECAP Fund and PRIMECAP Core Fund are now open to all investors as of June 18, 2024. These funds had been closed since 2004 and 2009, respectively, restricting access for new accounts and limiting further investments.

Vanguard regularly evaluates its active fund lineup to ensure they meet their investment objectives and manage cash flows effectively. After an in-depth review, the firm determined that both the PRIMECAP and PRIMECAP Core Funds have sufficient capacity to accommodate additional investments. Before reopening, existing investors were capped at purchasing no more than $25,000 per year.

“PRIMECAP Management has a long, proven track record of delivering value to shareholders,” said Dan Reyes, Global Head of Portfolio Review Department at Vanguard. “In fact, PRIMECAP Fund has outperformed its benchmark by 2% per year since its inception nearly 40 years ago.”

Both funds focus on U.S. large-cap equities with a long-term perspective and low portfolio turnover. The PRIMECAP Fund emphasizes growth-oriented stocks, while the PRIMECAP Core Fund includes stocks with both value and growth characteristics. Their strategies are rooted in bottom-up, fundamental research.

“PRIMECAP Management Company has partnered with Vanguard for nearly 40 years, and our long partnership has served investors well,” said Joel Fried, President of PRIMECAP Management and one of the five portfolio managers for the funds. “We’re excited to expand access to our fundamental, research-driven, and long-term oriented approach to a broader set of investors.”

With the reopening, Vanguard aims to provide more investors with the opportunity to benefit from these actively managed funds’ established strategies and historical performance.

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