Vanguard Expands Active List with Launch of Core-Plus Bond Fund
VALLEY FORGE, Pennsylvania., 12 October 2021 / PRNewswire / – Vanguard today launched the actively managed Vanguard Core-Plus Bond Fund, which aims to provide clients with a broadly diversified, single-fund core fixed income portfolio invested primarily in the Treasury American, backed by mortgages and other American investments. quality titles. In addition, the fund may invest beyond the US investment grade bond market in areas such as high yield corporate securities and emerging market debt of all credit quality ratings.
The more flexible but risk-controlled mandate of the Core-Plus Bond Fund allows portfolio managers to seek opportunities in various fixed income sectors and credit qualities. The fund is managed by Vanguard’s world-class fixed income group, an experienced portfolio management team with proven expertise and a history of delivering strong results for clients across the active line. taxable fixed income securities of Vanguard.
“Vanguard continues to invest in talent and active management capabilities, drawing on four decades of expertise in managing fixed income portfolios,” noted Sara Devereux, Global Head of Vanguard Fixed Income Group. “This initiative represents our continued efforts to improve long-term investor outcomes by delivering higher potential fixed income strategies with sustainable low-cost investment merit.”
With the addition of Core-Plus Bond, Vanguard now offers three carefully designed core bond offerings, each of which can serve as the centerpiece of an investor’s fixed income allocation: Vanguard Total Bond Market Index Fund, Vanguard Core Bond Fund and Vanguard Core- Plus Bond Fund. The Total Bond Market Index Fund is the most conservative option for investors who prefer index management. While remaining conservative, the Core Bond Fund offers the potential for outperformance thanks to active management. With greater exposure to high yield investments and emerging markets, the new Core-Plus Bond Fund is designed for investors who are more comfortable with higher risk in their fixed income allocation and the potential to outperform through active management. However, the fund’s greater exposure to high yield investments may not be suitable for some investors.
The Core-Plus Bond Fund accepts investments for a 10-day subscription period and will start trading on 25 october. The fund will have an estimated expense ratio of 0.30% for investor stocks and 0.20% for Admiral stocks, compared to an average expense ratio of 0.45% for industry peers.1
As announced earlier this year, the company is also launching the Vanguard Multi-Sector Income Bond Fund. The fund will provide exposure primarily to investment grade US securities, US high yield corporate securities and emerging market debt of all credit quality ratings, and will be made available to the public at a later date.
A Renowned Leader in Global Fixed Income
With 2,100 billion dollars in assets under management, Vanguard Fixed Income Group is the world’s largest manager of bond funds and ETFs. Vanguard’s portfolio of active and index fixed income investment products include US Treasury Bills, Inflation Protected Treasury Securities, Agency Bonds, Mortgage Backed Securities, Corporate Loans , municipal debt, sovereign bonds, emerging market debt and money markets.
For 40 years, the Fixed Income Group has continuously refined its investment process and evolved decision-making concepts to improve fund returns, and the team has distinguished itself with deep investment capabilities, a process disciplined stock selection and rigorous risk management techniques.
The active benefit of the team is to target alpha-generating strategies that are repeatable and scalable without relying too much on big macroeconomic calls. Vanguard also manages funds according to their etiquette, which means that portfolio managers seek outperformance, but investors can rest assured that they will stay true to the fund’s objective. Additionally, Vanguard’s active fixed income investment teams are bolstered by the company’s unique investor ownership.2 structure â lower fees allow portfolio managers to aim to avoid taking unattractive risks. Together, these elements are designed to produce strong risk-adjusted returns and lower drawdowns during times of market stress. As a result, Vanguard’s track record as an investment manager remains unmatched: 96% of Vanguard’s active fixed income funds have outperformed their peer group average over the past five years. June 30, 2021.3
Vanguard is one of the world’s largest investment management firms. From August 31, 2021, Vanguard managed $ 8.3 trillion in global assets. The company, headquartered in Valley Forge, Pennsylvania, offers 417 funds to its more than 30 million investors worldwide. For more information, visit vanguard.com.
Asset figures at August 31, 2021 unless otherwise stated.
1 Sources: Vanguard and Morningstar.
2 Vanguard is owned by investors, which means the fund shareholders own the funds, which in turn own Vanguard.
3 For the five-year period ending June 30, 2021, 49 out of 51 active bond funds outperformed their peers’ averages. Results will vary for other periods. Only funds with a history of at least five years were included in the comparisons. (Source: Lipper, a Thomson Reuters company). Note that the competitive performance data presented represents past performance, which is not a guarantee of future results, and that all investments are subject to risk. For the most recent performance, visit our website at www.vanguard.com/performance.
For more information on Vanguard funds, visit vanguard.com for a prospectus or, if available, a summary prospectus. The investment objectives, risks, charges, expenses and other important information about a fund are contained in the prospectus; read it and review it carefully before investing.
Any investment is subject to risk, including the possible loss of the money you invest. Diversification does not guarantee a profit or protect against a loss.
Bond funds are subject to the risk that an issuer will not make payments on time and that bond prices fall due to rising interest rates or negative perceptions of an issuer’s ability to make payments. payments. Investments in bonds are subject to interest rate, credit and inflation risks. High yield bonds generally have medium and low credit quality ratings and are therefore subject to a higher level of credit risk than bonds with higher credit quality ratings.
Investments in securities issued by non-US companies and governments are subject to risks, including country / regional risk and currency risk. These risks are particularly high in emerging markets.
Vanguard Marketing Corporation, distributor.
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