Vanguard Group Inc. announced that it plans to merge the $3.2 billion Vanguard Insured Long-Term Tax-Exempt Fund into the $2.8 billion Vanguard Long-Term Tax-Exempt Fund on Dec. 12.

In conjunction with the merger, the insured fund has closed to new accounts, the Valley Forge, Pa., company said Tuesday.

Reid O. Smith will remain the portfolio manager for the Vanguard Long-Term Tax-Exempt Fund. John Carbone, who manages the insured fund, will continue to manage three other municipal funds for Vanguard.

As of Oct. 31, Vanguard managed more than $1 trillion of U.S. mutual fund assets, including more than $390 billion of employer-sponsored retirement plans.

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