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Fund focus: Celebrating three years of low-cost active credit

23 September 2020 | Portfolio construction

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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.

Register now

Watch fund manager Sarang Kulkarni discuss the fund in this short video:

Related content:

 

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.

Important information

This document is designed for use by, and is directed only at persons resident in the UK.

The information contained in this document is not to be regarded as an offer to buy or sell or the solicitation of any offer to buy or sell securities in any jurisdiction where such an offer or solicitation is against the law, or to anyone to whom it is unlawful to make such an offer or solicitation, or if the person making the offer or solicitation is not qualified to do so. The information in this document is general in nature and does not constitute legal, tax, or investment advice. Potential investors are urged to consult their professional advisers on the implications of making an investment in, holding or disposing of shares of, and the receipt of distribution from any investment.

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/

Issued by Vanguard Asset Management, Limited which is authorised and regulated in the UK by the Financial Conduct Authority. © 2020 Vanguard Asset Management, Limited.  All rights reserved. 

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