Vanguard Closes International Fund

Mutual fund firm Vanguard Group said Thursday that it had closed its $1.4-billion Vanguard International Explorer Fund to thwart speculative short-term investors and protect long-term shareholders.

Vanguard said it first responded to strong cash inflows by raising the fund’s minimum investment from $10,000 to $25,000 on Jan. 15. However, Vanguard said that since January, the fund had taken in about $500 million in additional net cash flow.

“We are concerned that the surge in cash flow reflects a reaction to the fund’s recent returns,” Vanguard’s Jeffrey S. Molitor said.