The Boards of Trustees of six Vanguard funds have decided to remove the requirement that the funds hold a minimum percentage of their assets in municipal bonds that are insured. The decision was based on several factors, including the declining issuance of new insured municipal bonds and the rising cost of that insurance.
The funds involved include Vanguard’s California Insured Long-Term Tax-Exempt Fund, California Insured Intermediate-Term Tax-Exempt Fund, Florida Insured Long-Term Tax-Exempt Fund, New Jersey Insured Long-Term Tax-Exempt Fund, New York Insured Long-Term Tax-Exempt Fund and Pennsylvania Insured Long-Term Tax-Exempt Fund.
The change will take effect in late March 2002, at which time the funds will be renamed.
– Plansponsor.com