Vanguard on Monday announced two new fixed income asset allocation model portfolios — Vanguard Fixed Income Capital Preservation and Vanguard Fixed Income Active Total Return — two months after introducing its first two fixed income models.
“Fixed income remains a cornerstone of a well-diversified portfolio, and with our newest launch of fixed income asset allocation models, we’re giving financial advisors the tools to manage this essential component with precision and efficiency,” said Amma Boateng, Vanguard's financial advisor services managing director.
The Vanguard Fixed Income Capital Preservation model seeks to protect capital while generating modest returns and minimizing volatility. The model could make sense for advisors whose clients aim to maintain their sense of financial security, the company suggested.
The Vanguard Fixed Income Active Total Return model combines higher-quality global bonds with high-yield bonds for an actively managed portfolio that seeks to outperform a passive benchmark. This model could work for advisors whose clients accept greater volatility in pursuing higher returns, Vanguard said.
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