Vanguard reopens PRIMECAP Fund and PRIMECAP Core Fund

Vanguard today announced that both Vanguard PRIMECAP Fund (Investor: VPMCX, CUSIP 921936100; Admiral: VPMAX, CUSIP 921936209) and Vanguard PRIMECAP Core Fund (Investor: VPCCX, CUSIP 921921508) are open to all investors without restriction, effective immediately. Both funds, which have been closed since 2004 and 2009, respectively, are now available for new accounts and additional purchases.

Vanguard evaluates its active fund lineup on an ongoing basis to monitor investment capacity and to ensure that cash flows into a fund do not affect its ability to meet its investment objectives. After careful consideration, Vanguard has determined that the PRIMECAP and PRIMECAP Core Funds have sufficient investment capacity to reopen. Prior to the reopening, existing investors were limited to additional purchases of 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 are actively managed U.S. large-cap equity funds that feature a long-term perspective, extremely low portfolio turnover, and well-established investment strategies anchored in bottom-up, fundamental research. PRIMECAP Fund focuses primarily on growth-oriented stocks, while PRIMECAP Core Fund invests in stocks with both value and growth characteristics.

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

Founded in 1983, PRIMECAP Management Company of Pasadena, California, is widely recognized for its long-term approach to equity investing. Both PRIMECAP Fund and PRIMECAP Core Fund are managed by the same five portfolio managers: Theo A. Kolokotrones, Joel P. Fried, Alfred W. Mordecai, M. Mohsin Ansari, and James M. Marchetti. Each manager relies almost exclusively on independent research and has full autonomy to implement their best investment ideas. The managers expect to hold portfolio companies for at least three to five years, which results in low portfolio turnover, typically between 5% and 15% annually.

Notes:

For more information about Vanguard funds, visit advisors.vanguard.com or call 800-997-2798 to obtain a prospectus or, if available, a summary prospectus. Investment objectives, risks, charges, expenses, and other important information about a fund are contained in the prospectus; read and consider it carefully before investing.

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