Two Funds Are Closed by Vanguard

Mutual fund company Vanguard Group closed two funds to new investors Thursday after assets surged along with returns.

Vanguard shut the $12-billion Explorer Fund, which buys shares of small companies, and the Precious Metals and Mining Fund, which has $3.3 billion in assets.

Existing investors can continue to put money into the funds, though Explorer has a $25,000 annual limit, the Valley Forge, Pa.-based company said.

Explorer is an investment option in some corporate 401(k) retirement savings plans, and Vanguard said investors in 401(k) plans that now offer Explorer as an option will be permitted to open new accounts in the fund.

Fund managers often close funds when they believe they are too big to continue finding attractive investments.

Vanguard has now closed six funds over the last year, including Primecap Fund, which manages $30 billion, and the $26-billion Health Care Fund.

Vanguard’s Explorer Fund returned 21% in the last year, and the Precious Metals and Mining Fund returned 69.4%, according to data tracked by Bloomberg.