Fund focus: Celebrating three years of low-cost active credit
23 September 2020 | Portfolio construction
The Vanguard Global Credit Bond Fund has reached a milestone anniversary with an excellent track record in meeting its objective to offer investors a core fixed income holding, providing consistent income and capital growth.
The management team focuses on providing a diversified source of high quality returns from primarily investment grade bonds. The fund is designed to provide diversification from equities in a portfolio as well as aiming to protect investor returns in weak markets. They focus on achieving consistent returns through primarily bottom-up selection, targeting a broad variety of focused opportunities with a good probability of success. Being true to label, the fund will be primarily invested in global investment grade bonds but the fund does have a remit to seek opportunities elsewhere in a risk-controlled manner.
The management team
The fund is managed by a focused team that has the advantage of being part of Vanguard’s Global Fixed Income Group (FIG), one of the largest fixed income groups in the world. FIG has over 35 years’ experience managing active portfolios. The group’s philosophy emphasises rigorous portfolio construction, driven by research, to achieve highly controlled, cost-effective results for clients.
As testament to the rigorous approach applied by the management team, The Vanguard Global Credit Bond Fund remains the best performing fund in its Morningstar category1.
Key fund attributes
*Source: Morningstar: Global Corporate Bond – GBP hedged as at December 2019. Please read the risk factors section in the prospectus available here.
Meet the manager
To mark the fund's third anniversary, fund manager Sarang Kulkarni and credit analyst Loubna Moudanib will join us in a live CPD-accredited adviser webinar on the 8th October to discuss what goes into their day-to-day investment decisions.
Watch fund manager Sarang Kulkarni discuss the fund in this short video:
- Read the Vanguard Global Credit Bond Fund in a Nutshell
- View the Global Credit Bond Fund
- Learn more about Vanguard low-cost active funds
1Source: Morningstar as of 31st August 2020. The peer group is based on EAA OE Global Corporate Bond funds (GBP hedged), a Morningstar category comprising funds that pursue a similar strategy. Past performance is not a reliable indicator of future results.
Investment risk information
The value of investments, and the income from them, may fall or rise and investors may get back less than they invested.
Past performance is not a reliable indicator of future results
Funds investing in fixed interest securities carry the risk of default on repayment and erosion of the capital value of your investment and the level of income may fluctuate. Movements in interest rates are likely to affect the capital value of fixed interest securities. Corporate bonds may provide higher yields but as such may carry greater credit risk increasing the risk of default on repayment and erosion of the capital value of your investment. The level of income may fluctuate and movements in interest rates are likely to affect the capital value of bonds.
The Global Credit Bond Fund may use derivatives, including for investment purposes, in order to reduce risk or cost and/or generate extra income or growth. For all other funds they will be used to reduce risk or cost and/or generate extra income or growth. The use of derivatives could increase or reduce exposure to underlying assets and result in greater fluctuations of the Fund’s net asset value. A derivative is a financial contract whose value is based on the value of a financial asset (such as a share, bond, or currency) or a market index.
Some funds invest in securities which are denominated in different currencies. Movements in currency exchange rates can affect the return of investments.
Some funds invest in emerging markets which can be more volatile than more established markets. As a result the value of your investment may rise or fall.
Investments in smaller companies may be more volatile than investments in well-established blue chip companies.
For further information on risks please see the “Risk Factors” section of the prospectus on our website at https://global.vanguard.com.
This document is designed for use by, and is directed only at persons resident in the UK.
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Vanguard Investment Series plc has been authorised by the Central Bank of Ireland as a UCITS and has been registered for public distribution in certain EU countries. Prospective investors are referred to the Funds’ prospectus for further information. Prospective investors are also urged to consult their own professional advisers on the implications of making an investment in, and holding or disposing shares of the Funds and the receipt of distributions with respect to such shares under the law of the countries in which they are liable to taxation.
The Manager of Vanguard Investment Series plc is Vanguard Group (Ireland) Limited. Vanguard Asset Management, Limited is a distributor of Vanguard Investment Series plc.
For further information on the fund's investment policies, please refer to the Key Investor Information Document (“KIID”). The KIID for this fund is available, alongside the prospectus via Vanguard’s website https://global.vanguard.com/
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