Gyroscopic Investing

Posted: **Wed Sep 02, 2015 3:16 pm**

I recently contacted Vanguard about their (closed) Treasury Money-Market Fund. Their response:

Thank you for taking the time to contact us.

The decision to close our Vanguard Admiral(tm) Treasury Money Market Fund
(VUSXX) was made to protect the interests of current fund shareholders in
an environment in which yields on short-term Treasury securities have
reached historical lows.

Yes, VUSXX may open again. However, it is up to the fund manager as to
whether they will reopen the fund and if so, when. There is no prior notice
given if and when a fund will be reopened.

Does this make sense to anyone, especially the part I emboldened?

Posted: **Wed Sep 02, 2015 6:03 pm**

They're saying that current low yields make the fund operate at a loss, and the current holders are being subsidized by that loss, and that Vanguard doesn't want to magnify their losses by allowing other people to buy in.

Posted: **Wed Sep 02, 2015 6:23 pm**

Yeah that's my analysis too.

Gyroscopic Investing

VUSXX

VUSXX

Re: VUSXX

Re: VUSXX