https://www.sec.gov/Archives/edgar/data/734383/000093247116013843/ps_57072016.htm
497 1 ps_57072016.htm VANGUARD DIVIDEND GROWTH FUND
Vanguard Dividend Growth Fund
Supplement to the Prospectus and Summary Prospectus
Important Note Regarding Vanguard Dividend Growth Fund
Vanguard Dividend Growth Fund is closed to all new investors (with the
exception of (1) investors who are added and invest in the Fund only through
technology-driven model portfolios and (2) participants who invest in the Fund
only through defined contribution plans that offer the Fund as an existing option).
The Fund will remain closed until further notice and there is no specific time
frame for when the Fund will reopen. During the Fund’s closed period, all current
shareholders may continue to purchase, exchange, or redeem shares of the Fund
online, by telephone, or by mail.
The Fund may modify these transaction policies at any time and without prior
notice to shareholders. You may call Vanguard for more detailed information
about the Fund’s transaction policies. Participants in employer-sponsored plans
may call Vanguard Participant Services at 800-523-1188. Investors in
nonretirement accounts and IRAs may call Vanguard’s Investor Information
Department at 800-662-7447.

@dicksonL Appreciate the head's up. Here is the information from the Vanguard Website.
Regards,
Ted
https://pressroom.vanguard.com/press_release/Press_release_vanguard_closes_dividend_growth_fund_072816.html
M* Snapshot: VDIGX
http://www.morningstar.com/funds/XNAS/VDIGX/quote.html
WSJ Article:
http://blogs.wsj.com/moneybeat/2016/07/28/investors-thirst-for-yield-pushes-vanguard-to-turn-off-the-tap/

Recd a mail from VG
Vanguard Dividend Growth Fund is closed to new investors as of July 28, 2016. The fund will remain open to existing investors for additional purchases.

FYI: Although they've been around for less than five years, many of these funds benefit from a wealth of experience.
Regards,
Ted
http://news.morningstar.com/articlenet/article.aspx?id=761286

Hi @johnN,
Thanks for posting Dr. Madell's monthly newsletter. I always enjoy reading Dr. Madell's perspectives. In this month's newsletter ... Dr. Madell covers active management vs. passive (the market).
Below is an interesting quote from the newsletter.
"Out of all the 17 Vanguard mananged US stock funds that have been around for 15 years or more, 11 beat VTSMX over the prior 15 year period. The average return for the 17 was 7.57% vs. 6.72% for the Vanguard total stock market Index."
Interesting? Yes!

@MFO Members: Speaking of hot new, 5/1/16, foreign large-cap blend funds ! Look at FINOX, up 9.26% in the last month.
Regards,
Ted
http://www.morningstar.com/funds/XNAS/FIONX/quote.html

@MikeW You might put the Aston/Pictet International Fund on your watch list. It would be more similar to the Harbor fund than others mentioned so far. APINX is only two years old, but it has demonstrated good defensive properties since the dust-up started in Europe last year. Low turnover so far. Measured as a LC blend fund, it has a median cap of around 5B. It has some size (currently around $1B, almost entirely institutional money). When international is on a tear, I can't recall a Pictet fund that hasn't done well (although my memory stops about 10 yrs ago on this, so take that with some salt, so to speak).
Profile sheet:
https://astonfunds.com/includes/modules/assets/controllers/fileDownload.php?file=1469561876_FS_ASTON_PictetIntlFd_2Q16_063016_FS163-AC.pdf&id=1876&r=/funds/aston-pictet-international&type=file
Website:
https://astonfunds.com/funds/aston-pictet-international

@MFO Members Eariler this month I took a position in CSCIX with the belief that the sector will outperform the S&P 500 for the remainder of 2016. According to conventional wisdom, rising interest rates are bad for REITs. The theory is that investors hold REITS because of their high dividend income, and REIT dividends become less attractive as bond yields rise. However, historical evidence hasn’t always supported this theory. Forbes examined what happened the last time the Fed raised rates and found that, contrary to expectations, REIT stocks outperformed the overall market. During the two-year period when rates were rising, REITs returned over 60 percent – far above the S&P 500’s return of 20 percent. The reason for the exceptional REIT performance was that interest rates rose along with a strengthening economy. As demand for rental units grew, so did rents and property values.
Regards,
Ted

Plenty More Lined Up. With Better Ideas ?
Steve Cohen and the Infinite Monkey Theorem
By Michael P Regan a Bloomberg Gadfly columnist covering equities and financial services. Jul 27, 2016 2:05 PM CDT
.. this theory came to mind while reading a Wall Street Journal article about how Steve Cohen is investing in a hedge fund run by investment firm Quantopian, which provides money to amateur quants who come up with profitable computerized trading strategies. These aren't exactly monkeys, of course; they're obviously much smarter. (The article mentions mechanical engineers and nuclear scientists.) But the idea is similar: Give enough people the right tools, and eventually you'll get Shakespeare. Or in this case, something even better: market-beating trading algorithms.
Some 85,000 quant wannabes reportedly have signed up from 180 countries and created more than 400,000 algorithms trading U.S. stocks on the platform, and 10 have been selected to trade a few thousand dollars.
.. It may be tempting to roll your eyes and dismiss the initiative as some sort of gimmick. That would be a mistake that ignores how much technology has democratized all manner of business models that previously had high barriers to entry
And if you wanted to be the manager of a quant fund? Well, now it sounds as if Cohen and his crew are interested in knocking down those barriers to entry that stood in the way for a long time -- namely access to millions, or hundreds of millions of dollars, in capital. This will most likely inspire even more to storm the gates than the 85,000 that have already done so. Perhaps the only surprising part of this development is that it took this long to happen.
http://www.bloomberg.com/gadfly/articles/2016-07-27/steve-cohen-and-the-infinite-monkey-hedge-fund-managers

I won't even mention OAKIX, which lost almost 10% after Brexit was declared. Anybody still holding on to it?

Sometimes the best time to invest in a fund is after it's gone through a rough patch. Obviously you still have to have long-term conviction, but too many people chase performance of outperforming funds and subsequently hold them as they take a turn for the worst.

Yet for years, as VF pointed out, it knocked the ball out of the park, was an M* analyst pick etc. For me, another piece of evidence that it is damned hard (not impossible, but damned hard) to pick a fund that's going to outperform.

That's why I keep selling in round robin fashion and keep rebuying the same funds. I know I'm never going to land that 10-bagger fund. Anytime my investment yields 50% I sell and buy another fund. Over time I decide which one to keep. I don't want to be caught napping.

BBALX, is one that David owns (still own David?) and one that has been reviewed on this site twice. I've been mostly in the fund in various accounts. I'm mulling placing large amounts in my IRA accounts as I get closer to my 80th birthday next year. Good performance if you see it as David does, global tactical allocation, with low expenses and a flexible allocation process.
I believe its a great holding to pass on to family who doesn't want to get involved in managing money.
I'd be interested in hearing from others out there with opinions on how how they view this fund for non interested inheritors all aged about 50.heir.

I took a quick look on *M and wasn't very impressed with the long-term performance of the fund. If I'm not mistaken, it would be classified as a moderate global balanced fund with nearly 60% of the portfolio in equities. It's not a terrible fund, just not one that jumps out of the pack right now.

I won't even mention OAKIX, which lost almost 10% after Brexit was declared. Anybody still holding on to it?

I bailed on Harbor Int'l about three years ago. I also recommend FMIJX. Third quarter report just came today and I have linked it. I think the discussion will give you a good idea of how cautiously the fund is managed.
http://www.fiduciarymgt.com/funds/shrpt/qly_shrpt_063016.pdf

I would take a serious look at the very low cost (ER 0.20%) and liquid (850K avg. daily volume) EFAV which has performed well since inception and its underlying index has very attractive back-tested performance:
Index Performance
Kevin

Hi Guys,
Fraud is a very emotional and perjorative characterization. Yes, a few things are disquieting with the referenced fund, and caution should be the operative watchword. However, a fraud charge is premature at this juncture. It's probably a good idea to wait and see on this news item.
I would likely pass on investing with the referenced Hedge fund because I would be reluctant to accept the terms offered by that firm. I do not agree with the policy of no allowable withdrawals for a 10-year period, and I don't invest with funds who are secretive about their strategies.
Also, I am familiar with the exploits of Charles Ponzi and more recently Bernie Madoff. Both those guys did serious jail time. I am definitely not forecasting that outcome for the referenced fund manager, but history, although never exactly repeating itself, does have a way of rhyming with historical experiences.
As usual, buyer beware. The lust for super returns always adds hyper risk to any investment program. That's not me. I'm happy with market equivalent returns so I don't fall victim to exaggerated promises that fail to deliver the goods.
Best Wishes.

Depending on our client risk levels and goals, and tax situation, we will use a few of these: MALOX, RPGAX, RIBIX, WASIX. For higher-tax-bracket people, these are best used in retirement accounts. As for FPCAX, not only has the performance really lagged, but the high cash position, as another poster noted, is part of the expense ratio. For us, it is almost a no-brainer to move elsewhere.

I'm not sure whether Bob intended to list RPGAX as a Multi Asset Income Fund or not. Possibly, I'm misreading the thread.
As a bleeding heart liberal on most matters, I'll concede that RPGAX could be considered an income fund. Price appears to consider it more of a balanced fund: "Under normal conditions, the fund’s portfolio will consist of approximately 60% stocks; 30% bonds, money market securities, and other debt instruments; and 10% alternative investments." (Source: T. Rowe Price)
M* classifies it as Global Allocation and Lipper puts it in their Flexible Portfolio category.
I own a bit and include it alongside DODBX in my balanced area. In good times it will likely lag DODBX. But I suspect it will hold up better in bad times. The 10% in Blackstone's fund of hedge funds should help in tougher markets. We'll see on that one. (No snickers from audience please) :)

How I did not include WHGIX in my previous post is a mystery. It has been a consistently steady performer. ETNMX looks like it could be worth a look, but a 1.23% expense ratio is a bit steep for this kind of fund. Perhaps it will continue to do well and earn its costs.

Thanks, Bob. I always appreciate your contributions and advice.

Nothing is ever "guaranteed," my friend.
http://www.bloomberg.com/news/articles/2016-07-26/the-curious-case-of-joseph-meyer-a-little-giant-of-hedge-funds