Vanguard Star Funds (VSF) has suffered a devastating blow as its star fund has plunged in value to the point where it is now valued less than half of its value.
In addition to the decline in value of the fund, the fund has suffered major losses in the past year as its CEO Stephen Green is no longer able to keep the company afloat.
With a reported $2.2 billion loss in the first quarter of 2017, the loss has forced the company to declare bankruptcy and sell off assets to fund creditors.
The fund has lost nearly $1 billion since inception, with a loss of nearly $600 million in the quarter that ended June 30.
Vanguard Star Fund has lost more than $1.3 billion since its inception in September 2000.
This is not the first time Vanguard Star has seen the fund lose value.
In early 2017, its star market index fell 5.2% and its star dividend was cut in half.
While the fund lost $1 million in revenue in 2017, it made a profit of $500,000 and saw its total value jump from $1,000,000 to $1 trillion.
But now, after more than a decade of failure, it is in a state of bankruptcy and it may be unable to pay creditors as well.
“We are now in the process of closing the Vanguard Star fund,” Vanguard CEO Stephen Boesch told Bloomberg in an interview on Thursday.
Boesch said that the fund is currently trading at a low price of $3.25 per share, a loss rate of 0.5% and an annualized loss of $1 for the quarter ending June 30, 2017.
He said that he will need to sell some of the assets that are not yet in service, such as the Star fund’s portfolio of investments, which includes a variety of equities, including stocks, bonds and options.
We are closing our Star fund.
The company has no longer a significant number of assets.
It is in the midst of a reorganization, so we can’t continue to fund it for another two to three years,” he said.
Despite the financial struggles, Vanguard has still seen a significant amount of activity in the fund’s assets.
At the end of March, the company announced that it had raised $2 billion in new capital and a $50 million Series A round.
It expects to raise another $2 million in additional funds over the next few months.
However, the stock market is trading at the highest level since the fund was founded, as the market capitalization of the Vanguard fund has reached $7.2 trillion.
Boeskisch said that his company has had to find new ways to finance the fund to keep it afloat.
He said that, for example, it has decided to sell off a portion of the Star portfolio.
And it has already sold off assets in the last quarter of 2016, when it sold its Star holdings to its creditors.
Biesch said he was able to take a $600,000 cut in the dividend due to the company’s reorganization.
I had to make a decision to cut a significant portion of my dividend in half to keep this fund afloat,” he told Bloomberg.
“I have been in a position to keep that fund afloat for a long time.
I can’t do it anymore.”
As investors were still holding out hope that the company would be able to raise additional funds, Boeskiss comments about the Star Fund’s ability to keep afloat led to a massive selloff in the market.
By the end the quarter, Vanguard had lost $2,500,300 of the $1-billion that it raised in new funds and was valued at less than $400 million.
Its market capitalized at $7 trillion and was up about 14% year over year, according to data from Bloomberg.
Although the fund currently trades at a loss, the Vanguard CEO noted that he was confident that his plan would work.
When it was first launched, Vanguard’s star market was valued in the billions.
Since the fund started its life, it’s value has dropped to $800 million.
Vanguard’s Star Fund currently trades for about $300 a share, according the Bloomberg data.