Vanguard has added another fund to its roster of actively managed funds, which comprise almost one-quarter of its $5.3 trillion in assets under management.
The Vanguard Global Credit Bond Fund (VGCAX) joins the firm’s roster of 25 actively managed fixed income funds. It invests in U.S. and international investment-grade credit markets, split roughly 2 to 1 between U.S. dollar-dominated and non U.S. dollar-denominated bonds, and the majority of its non-dollar-denominated portfolio is hedged to the U.S. dollar to preserve the fund’s credit focus.
“The new Global Credit Bond Fund is an attractive option for investors seeking an active core holding with diversified, global exposure to credit,” said John Hollyer, global head of the Vanguard Fixed Income Group, in a statement.
The fund uses a fundamental approach to identify relative value based on security selection, sector allocation and interest rate views and seeks relative value across multiple countries, yields, currencies, credit ratings and cost bases.