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VANGUARD BROADENS ANNUITY OFFERINGS WITH TWO ACTIVELY MANAGED EQUITY PORTFOLIOS

 VALLEY FORGE, Pa., June 7 /PRNewswire/ -- The Vanguard Group of Investment Companies today added two actively managed equity Portfolios to the Vanguard Variable Annuity Plan, a low-cost, no-load tax-deferred investing program. The new offerings -- the Equity Income Portfolio and the Growth Portfolio -- complement the Plan's four existing Portfolios: Money Market, High-Grade Bond, Balanced, and Equity Index.
 The Plan's new Portfolios pursue investment strategies and objectives that are similar to those of existing Vanguard Funds. The Equity Income Portfolio seeks high current income and relatively low volatility, and has the potential for reasonable capital growth. The Portfolio invests in common stocks of large, well-established, high- quality U.S. corporations that offer above-average dividend yields and are believed to have relatively attractive long-term investment value. Investment advisory services to the Portfolio are provided by Newell Associates of Palo Alto, Calif., which has served as the investment adviser to Vanguard Equity Income Fund since March 1988.
 The Growth Portfolio invests primarily in the stocks of seasoned U.S. companies with proven records of accomplishment and above-average prospects for growth. The investment adviser for the U.S. Growth Portfolio is Lincoln Capital Management Company of Chicago, which has provided investment advisory services to the Vanguard U.S. Growth Portfolio since August 1987.
 "The addition of two equity Portfolios to the Vanguard Variable Annuity Plan provides investors with more flexibility to tailor their investment programs to meet their particular needs," said Jeremy G. Duffield, senior vice president. "What's more, the Equity Income and Growth Portfolios offer distinct, carefully defined investment strategies for investors seeking income and growth, respectively, in an actively managed equity investment."
 Introduced in April 1991, Vanguard Variable Annuity Plan is designed specifically for individuals in high income tax brackets who are interested in deferring taxes on investment earnings as well as long- term investors who have maximized their qualified plan, IRA, or 403(b) plan contributions.
 As of May 31, 1993, the Plan had aggregate net assets of $500 million. Vanguard Variable Annuity Plan is available without sales commissions (or "loads") and expects to maintain operating expenses of less than 1.00 percent, or less than one-half the 2.05 percent expenses of the average variable annuity(A). The Plan has an annual account maintenance fee of $25, but is free of withdrawal fees and surrender charges. The minimum initial purchase payment for the Plan is $5,000; the minimum per Portfolio is $1,000. Subsequent purchases must be for at least $500. Current Plan contract holders may exchange assets into either of the two new Portfolios at any time.
 Vanguard joined with National Home Life Assurance Company, a New York-based insurance company, to develop and market the Plan directly to investors without a commissioned sales force. National Home Life, which is rated A (Excellent) for financial position and operating performance by A.M. Best Company, is a wholly owned subsidiary of Capital Holding Corporation, headquartered in Louisville, Ky. The Plan is currently available to investors in all 50 states and the District of Columbia. For information about the Vanguard Variable Annuity Plan and its investment offerings, individuals may call Vanguard toll free: 800-522-5555.
 The Vanguard Group of Investment Companies, headquartered in Valley Forge, is the nation's largest pure no-load mutual fund organization with net assets of $112 billion in 76 portfolios owned by more than 4 million individual and institutional shareholders.
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 This communication shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of these securities in any state in which such an offer, solicitation or sale would be unlawful prior to registration qualification under the laws of any such state.
 (A) Source: Morningstar, Inc.
 -0- 6/7/93 R
 /CONTACT: Brian S. Mattes, vice president, 215-669-6219, or John S. Woerth, senior communications associate, 215-669-6224, both of Vanguard/


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

MJ -- PH020R -- 6289 06/07/93 18:57 EDT
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Publication:PR Newswire
Date:Jun 7, 1993
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