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VANGUARD INTRODUCES MUTUAL FUND INDUSTRY'S FIRST BALANCED INDEX FUND

VANGUARD INTRODUCES MUTUAL FUND INDUSTRY'S FIRST BALANCED INDEX FUND
 VALLEY FORGE, Pa., Sept. 28 /PRNewswire/ -- The Vanguard Group of Investment Companies today announced the introduction of the mutual fund industry's first balanced index portfolio -- the Vanguard Balanced Index Fund.
 The new no-load Fund invests 60 percent of its assets in U.S. common stocks and the remaining 40 percent in high-quality U.S. Government, corporate, and mortgage-backed fixed income securities. The stock portion of the Fund aims to replicate the investment performance of the unmanaged Wilshire 5000 Index, the broadest stock index in the United States. The Index comprises all securities regularly traded on the New York Stock Exchange, the American Stock Exchange, and in the NASDAQ Over-The-Counter Market. The Fund's bond portion seeks to parallel the investment performance of the unmanaged Salomon Brothers Broad Investment-Grade Bond Index, a widely recognized benchmark for the U.S. bond market.
 "Vanguard Balanced Index Fund combines the time-tested strategy of balanced investing with the increasingly popular market-tracking strategy of indexing," said Vanguard Chairman John C. Bogle. "Together, these two strategies make a powerful combination for investors who are seeking a simple, cost-efficient way to maintain a constant balance of common stocks and high-quality bonds in a single portfolio."
 A subscription period for the Vanguard Balanced Index Fund will run through Nov. 9, 1992. During this period, monies will be invested in short-term cash instruments to allow the Fund to accumulate sufficient assets for investment on a single day (Nov. 9), thus minimizing transaction costs. There will be no stock or bond market exposure during the subscription period.
 The minimum initial investment for the Fund is $3,000 ($500 for IRAs and custodial accounts), and shares are offered without sales commissions, redemption fees, or 12b-1 plan fees. The Portfolio is expected to maintain an expense ratio (expenses as an annual percentage of total net assets) of 0.25 percent -- about one-sixth the 1.30 percent average expense ratio of balanced funds (Lipper Analytical Services data). Beginning in 1993, a $10 annual account maintenance fee will be charged to Fund shareholders.
 The Vanguard Group of Investment Companies, headquartered in Valley Forge, has net assets exceeding $92 billion and serves 4 million individual and institutional investors.
 This communication is neither an offer to sell nor a solicitation of an offer to buy Fund shares. Such an offer is made by prospectus only, copies of which may be obtained from The Vanguard Group. The prospectus should be read carefully before individuals invest or send money. The prospectus contains more complete information on advisory fees, distribution charges, and other expenses. "Wilshire 5000" is a registered trademark of Wilshire Associates. "Salomon Brothers Broad- Investment Grade Bond Index" is a registered trademark of Salomon Brothers, Inc.
 -0- 9/28/92
 /CONTACT: John S. Woerth of The Vanguard Group, 215-669-6224/ CO: The Vanguard Group of Investment Companies ST: Pennsylvania IN: FIN SU: PDT


MP -- PH012 -- 3937 09/28/92 11:42 EDT
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Publication:PR Newswire
Date:Sep 28, 1992
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