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VANGUARD ADDS PORTFOLIO TO TAXABLE BOND SERIES

 VALLEY FORGE, Pa., Nov. 1 /PRNewswire/ -- The Vanguard Group of Investment Companies today introduced a new bond portfolio: the Intermediate-Term Corporate Portfolio.
 The Portfolio is an addition to Vanguard Fixed Income Securities Fund, which now offers investors a choice of nine U.S. Treasury, government, and corporate bond portfolios of varying maturity and quality characteristics.
 The Intermediate-Term Corporate Portfolio invests in investment- grade quality corporate bonds (minimum Baa/BBB), with 70 percent of the Portfolio rated at least A3/A- at the time of purchase. The Portfolio expects to maintain an average weighted maturity between 5 and 10 years, and an average duration between 4.5 and 7 years.
 "The new Portfolio is designed for conservative, income-oriented investors seeking a yield premium over short-term bond portfolios and able to accept a greater degree of share price fluctuation," said Vanguard Chairman John C. Bogle. "With nine offerings, the Fund enables investors to combine Portfolios in a manner that is appropriate for their income needs and willingness to accept credit and market risk."
 The Intermediate-Term Corporate Portfolio complements the Fund's Short-Term Corporate and Long-Term Corporate Portfolios. The Long-Term Corporate Portfolio was previously named the Investment Grade Corporate Portfolio. The name change, which is effective today, does not affect the Portfolio's investment objective or investment strategy.
 The expense ratio (operating expenses as an annual percentage of total net assets) of the Intermediate-Term Corporate Portfolio is expected to be 0.27 percent. This compares to the 0.82 percent expense ratio for the average intermediate-term investment-grade corporate bonds funds (according to Lipper Analytical Services data).
 "Expenses are a critical determinant in bond fund returns. Indeed, a lower-cost bond fund will likely provide a superior return relative to its higher-cost counterpart," said Bogle. "Investors are well-served, then, by closely examining not only the quality and maturity characteristics of bond funds, but their expense ratios, too."
 Investment advisory services for the Intermediate-Term Corporate Portfolio will be provided at-cost by the Vanguard Fixed Income Group, which manages $50 billion in government, corporate, and municipal securities.
 The minimum initial investment for the Portfolios of Vanguard Fixed Income Securities Fund is $3,000 ($500 for IRAs and UGMAs), and additional investments of $100 or more may be made at any time. The Fund is a pure no-load fund -- free of sales commissions, back-end loads, and 12b-1 plan fees.
 The Vanguard Group of Investment Companies has net assets exceeding $124 billion and manages 77 investment portfolios owned by some 4.5 million shareholders.
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 /CONTACT: John S. Woerth of Vanguard, 215-669-6224/


CO: The Vanguard Group of Investment Companies ST: Pennsylvania IN: FIN

SU: PDT

LJ -- PH015 -- 9043 11/01/93 10:13 EST
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Publication:PR Newswire
Date:Nov 1, 1993
Words:443
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