VANGUARD FIXED INCOME SECURITIES FUND INC, 497, 1998-08-21

VANGUARD FIXED INCOME SECURITIES FUND INC
497, 1998-08-21

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                    VANGUARD FIXED INCOME SECURITIES FUND--
                         High Yield Corporate Portfolio
                              VANGUARD HORIZON FUND
                   VANGUARD INTERNATIONAL EQUITY INDEX FUND--
                           Emerging Markets Portfolio
                        VANGUARD SPECIALIZED PORTFOLIOS--
                                Energy Portfolio
                        Gold & Precious Metals Portfolio
                              Health Care Portfolio
                            VANGUARD TAX-MANAGED FUND


              SUPPLEMENT TO THE STATEMENT OF ADDITIONAL INFORMATION
                                 AUGUST 21, 1998



As  described  in their  separate  prospectuses,  the above funds assess fees on
shares redeemed under certain circumstances.  Currently,  redemption fees do not
apply to shares  held  through  Vanguard's  separate  recordkeeping  system  for
employee benefit plan accounts,  due to certain economies  associated with these
accounts.  However, the funds reserve the right to impose redemption fees at any
time on shares held in these  accounts,  if warranted by the costs of processing
redemptions.

                                                                           PSPB2