Vanguard's latest quarterly active fixed income perspectives newsletter summarises global economic and bond market news and discusses how managers are positioning our active bond funds.
The variation in asset class returns over the years might be framed as an opportunity to capitalise on short-term outperformance but guessing which assets will perform consistently well is notoriously difficult. That’s why LifeStrategy funds maintain broad diversification across global investment markets.
Watch the video to find out how Vanguard carefully selects managers whose principles and processes align with the objectives of the funds they manage.
There is a misconception that sustainable investing is purely values-based and that it could negatively impact financial returns. However, at Vanguard, we know that the same rules apply for active ESG strategies as they do for traditional active strategies; that without talent or an enduring advantage a portfolio manager is unlikely to outperform.
Vanguard’s global chief economist expects fixed income returns to be modest over the next decade but doesn’t see a bear bond market on the horizon.
Changes to equity and bond market benchmarks will have implications for our LifeStrategy funds. Our experienced investment teams that drive the LifeStrategy range will continue to seek to match the risk and return characteristics of the underlying benchmarks.