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VANGUARD INTRODUCES UTILITIES INCOME PORTFOLIO

 VANGUARD INTRODUCES UTILITIES INCOME PORTFOLIO
 VALLEY FORGE, Pa., May 18 /e?wswire/ -- The Vanguard Group of


Investment Companies today introduced the Utilities Income Portfolio.
 The new no-load portfolio is the sixth member of Vanguard Specialized Portfolios, which now offers investors a selection of six portfolios that invest in stocks concentrated in a particular industry or group of related ind ustries.
 The Utilities Income Portfolio seeks to provide current income by investing primarily in the stocks of utility companies, which historically have been one of the higher-yielding sectors of the stock market. Moderate growth of capital and income over the long term is the portfolio's secondary objective.
 In pursuit of these objectives, the portfolio invests at least 75 percent of its assets in income-producing utility stocks --primarily telephone and electric utility issues. Gas, water and other utility stocks will comprise a smaller portion of the portfolio. Up to 25 percent of the portfolio's assets may be invested in high-grade long- term utility bonds (rated A or better). The portfolio intends to invest solely in stocks until it reaches an asset base of $20 million.
 "With the decline in short-term interest rates, investors today have relatively few alternatives available to them to increase the amount of income generated from their investment dollars," said Vanguard Chairman John C. Bogle. "The Utilities Income Portfolio is designed for income- oriented investors who are willing to accept additional principal risk in order to meet their income objectives."
 Bogle noted that as a fund investing predominantly in stocks in a specific market sector, the Utilities Income Portfolio entails a higher degree of risk than a "traditional" mutual fund that is diversified over several industries.
 The minimum initial investment for the portfolio is $3,000 ($500 for IRAs and custodial accounts), and shares are offered without sales commissions, redemption fees, or 12b-1 plan fees.
 Introduced in 1984, Vanguard Specialized Portfolios consists of six portfolios: Energy, Gold and Precious Metals, Health Care, Service Economy, Technology, and Utilities Income. The new portfolio is not expected to attract a high level of trading activity and subsequent transaction costs, so, unlike the five original portfolios, it will not assess a 1 percent fee on shareholder redemptions.
 The Vanguard Group of Investment Companies, headquartered in Valley Forge, has net assets exceeding $84 billion and manages 66 investment portfolios owned by some 4 million clients accounts.
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 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.
 -0- 5/18/92
 /CONTACT: John S. Woerth of The Vanguard Group, 215-669-6224/ CO: The Vanguard Group of Investment Companies ST: Pennsylvania IN: FIN SU: PDT


LJ -- PH028 -- 1453 05/18/92 15:39 EDT
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Publication:PR Newswire
Date:May 18, 1992
Words:489
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