RULE 135
VANGUARD GROWTH EQUITY FUND
(REGISTRATION NO. 811-5445)
TURNER GROWTH EQUITY FUND
(REGISTRATION NO. 811-07527)
FOR IMMEDIATE RELEASE CONTACT: Brian S. Mattes
The Vanguard Group
610-669-6219
John S. Woerth
The Vanguard Group
610-669-6224
Stephen J. Kneeley
Turner Investment Partners, Inc.
610-408-3220
VANGUARD TO ADD TWO ACTIVELY MANAGED STOCK FUNDS
TURNER GROWTH EQUITY FUND TO JOIN THE VANGUARD GROUP;
VANGUARD ANNOUNCES INTENTION TO FILE FOR NEW VALUE FUND
VALLEY FORGE, PA, March 2, 2000 - The Vanguard Group and Turner Investment
Partners today announced a proposal to reorganize Turner Growth Equity Fund into
a new Vanguard fund- Vanguard Growth Equity Fund.
As part of this reorganization, Vanguard today filed a registration
statement with the U.S. Securities and Exchange Commission (SEC) for Vanguard
Growth Equity Fund. In conjunction with Vanguard's filing, TIP Funds is expected
to file later today a proxy statement with the SEC that proposes to reorganize
the $270 million Turner Growth Equity Fund into the new Vanguard offering. The
new fund will continue the investment objective of its predecessor: to seek
long-term capital appreciation by investing in stocks of U.S. companies with
medium and large capitalizations that are believed to have strong earnings
growth potential and reasonable valuations at the time of purchase.
Turner Investment Partners, adviser to the TIP Funds, is an investment
management firm that oversees more than $8 billion in stock, bond, and balanced
accounts and mutual funds for institutions and individuals. The independent,
employee-owned firm was founded in 1990 and is located in Berwyn, Pennsylvania.
Shareholders of Turner Growth Equity Fund will be mailed the proxy
statement detailing the terms of the proposed reorganization in mid-April, along
with a preliminary prospectus for the Vanguard Growth Equity Fund. A special
shareholder meeting is scheduled in late May. If approved, the tax-free
reorganization is expected to be completed in June. Following the
reorganization, Turner
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VANGUARD TO ADD STOCK FUNDS PAGE 2 OF 2
will remain the investment adviser to the Vanguard Growth Equity Fund, adding to
Vanguard's current stable of 19 external investment advisers.
In addition to the new Vanguard Growth Equity Fund, Vanguard plans to
broaden its actively managed equity fund roster further by filing a registration
statement with the SEC for the Vanguard U.S. Value Fund. The new no-load fund
will seek to provide long-term growth of capital and income by investing
primarily in value-oriented U.S. stocks. The fund's adviser will use active
quantitative management techniques to identify undervalued stocks within the
Russell 3000 Index, an unmanaged benchmark of the largest 3,000 U.S. stocks.
Investment advisory services to the Vanguard U.S. Value Fund will be
provided by Boston-based Grantham, Mayo, Van Otterloo & Co. LLC (GMO), a
privately held global investment management firm servicing clients in the
corporate, public, endowment, and foundation marketplace. Founded in 1977, GMO
manages approximately $24 billion in assets using both traditional and
quantitative investment techniques.
The Vanguard Group, headquartered in Valley Forge, Pennsylvania, is the
nation's second largest mutual fund firm and a leading provider of company
sponsored retirement plan services. Vanguard serves 14 million shareholder
accounts and manages nearly $535 billion, including more than $170 billion in
participant-directed defined contribution retirement plans. Vanguard offers 103
funds to U.S. investors and 21 additional funds in foreign markets. The addition
of the two new funds will bring to 20 the number of Vanguard actively managed
equity funds, whose aggregate assets total some $126 billion.
# # # VR-493
A registration statement relating to Vanguard Growth Equity Fund has been filed
with the U.S. Securities and Exchange Commission but has not yet become
effective. These securities may not be sold nor may offers to buy be accepted
prior to the time the registration statement becomes effective. This new Fund is
being formed through the proposed reorganization of an existing fund, known as
Turner Growth Equity Fund. Shareholders of Turner Growth Equity Fund may or may
not approve the reorganization proposal. If the proposal is not approved by
shareholders, the registration statement previously filed for Vanguard Growth
Equity Fund will be withdrawn. This communication shall not constitute an offer
to sell or the solicitation of an offer to buy, nor shall there be any sale of
these securities in any state in which such an offer, solicitation, or sale
would be unlawful prior to registration or qualification under the securities
laws of any such state.
A proxy statement relating to Turner Growth Equity Fund has been filed with the
U.S. Securities and Exchange Commission but has not yet become effective. Both
the registration statement for Vanguard Growth Equity Fund (Reg. No. 811-5445)
and the proxy statement for Turner Growth Equity Fund (Reg. No. 811-07527)
contain important information for investors and may be obtained without charge
from the SEC's website (www.sec.gov).
