Bonds have a critical role in a portfolio, offering an essential source of diversification, returns and stability. That’s why our approach to active and index fixed income funds is uncompromising. Everything we do is about creating consistency for investors, whether it’s tracking an index or delivering long-term alpha.
As one of the largest providers of fixed income funds in the world, we have the scale, experience and expertise to deliver value to investors by focusing on time-tested performance. Our specialist team of researchers, portfolio managers and traders work together to ensure that bonds are analysed, selected and traded in a way that’s consistent with each fund’s long-term objectives and risk profile.
*Source: Vanguard. Data as of December 31, 2020
Our goal is to improve long-term investment outcomes for our clients. That’s why our specialised teams follow a disciplined, risk-aware process which aims to either optimise tracking efficiency, or - in our active funds - generate consistent alpha.
Our approach to active investing
We aim to create consistent performance through a long-term collaborative approach, intelligent risk-taking and our commitment to remaining transparent and true-to-label with the target asset class. As a result, our funds can help provide income to your clients, improve risk-adjusted returns and minimise drawdowns.
We thoughtfully define the opportunity set for key risk and return drivers for each fund so you know what to expect.
Our deeply specialised yet collaborative approach reduces sector bias and improves relative-value decisions.
Our low costs mean we aren’t pressured into taking excessive top-down directional risk and instead can focus on high-conviction ideas.
Our approach to indexing
Our active and index fixed income funds are managed by a global team of specialist traders, credit research analysts and portfolio managers. What binds them together is the shared aim of creating value for investors through the careful construction and management of bond portfolios.
Our dedicated credit research team evaluate the creditworthiness and relative value of every holding in the fund.
We optimise our funds to reflect the key attributes of an index while keeping costs as low as possible to maximise tracking quality.
Our bond funds are designed for simplicity: we track broad, diversified indices using physical replication and we don’t lend securities.
Our capabilities span the whole fixed income universe, from government securities to corporate bonds and emerging market debt, enabling us to meet your clients' diverse risk and return needs in both active and index funds.
Important risk information:
The value of investments, and the income from them, may fall or rise and investors may get back less than they invested.
For further information on risks please see the “Risk Factors” section of the prospectus on our website.