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                     VANGUARD(R) CONVERTIBLE SECURITIES FUND
                SUPPLEMENT TO THE PROSPECTUS DATED MARCH 12, 2004

IMPORTANT CHANGES TO VANGUARD CONVERTIBLE SECURITIES FUND

FUND CLOSED TO NEW AND EXISTING SHAREHOLDERS
Effective  as of the close of business  on May 14,  2004,  Vanguard  Convertible
Securities Fund will no longer accept new  shareholders.  Existing  shareholders
will not be permitted to make any additional purchases during the closed period.
Participants  in certain  qualified  retirement  plans may continue to invest in
accordance  with the terms of their plans.  There is no specific  time frame for
when the Fund will reopen.

FUND REDEMPTIONS
During the closed period,  shareholders may continue to redeem Fund shares using
any method described in the Fund's prospectus.

Vanguard  Convertible  Securities Fund may modify these transaction  policies at
any time without advance notice to  shareholders.  Please call Vanguard for more
detailed  information  about  the  Fund's  transaction  policies.  Investors  in
non-retirement  accounts and IRAs should call  Vanguard's  Investor  Information
Department at  1-800-662-7447.  Participants  in  employer-sponsored  retirement
plans should call Vanguard Participant Services at 1-800-523-1188.



(C)2004 The Vanguard Group, Inc.  All rights reserved.
Vanguard Marketing Corporation, Distributor                      PS82     052004