In the fast-changing world of global bond markets, investors have access to the broad capabilities and tight risk controls harnessed by the Vanguard Global Credit Bond Fund, all at Vanguard’s characteristic low cost.
A bottom-up approach, focused on security selection and relative value opportunities
A specialised, global team of 60+ credit research analysts
Designed for outperformance – without relying on overall market direction
Global credit can offer investors a number of key features, including a combination of income, diversification, strong risk-adjusted returns and liquidity. An active approach backed by the right process and level of expertise can help consistently deliver investors these qualities from the asset class.
The Global Credit Bond Fund aims to provide investors with a consistent level of return and income, while mitigating downside risk. It does this by adopting a true-to-label approach that derives alpha from careful securities selection across diversified sources, without taking excessive top-down directional risk.
As the manager of the Global Credit Bond Fund, Vanguard’s Fixed Income Group leverages the capabilities of portfolio managers, traders, credit analysts and quantitative strategists across the globe, and the expertise that comes with a 40-year history in active fixed income.
The lead portfolio managers have a wide remit to invest wherever they see the best risk/reward potential with the emphasis being on cross-sector relative value, tactical opportunities and risk management. The result is a portfolio of more than 1,000 bonds issued by corporates and governments. These are largely high-quality, investment-grade bonds that should act as a diversifier to equities through varying market cycles.
“Vanguard’s Fixed Income Group has the research resources, market relationships and quantitative tools needed to generate long-term, consistent levels of alpha from the vast opportunity set available in global credit.”
Lead portfolio manager, Vanguard Global Credit Bond Fund.
Focused on high-quality, investment-grade bonds that can act as a long-term diversifier to equities through varying market conditions.
Our heritage in active fund management dates back to the year we were founded – 1975. For almost half a century we have strived to provide consistent returns while limiting downside risk.
A disciplined, research-driven and tightly risk-controlled approach which aims to generate long-term, consistent levels of outperformance.
The fund harnesses the wide-ranging expertise of a global credit research team of 60+ members with an average of 15 years’ experience*.
Our scale helps us to provide value to investors with an ongoing charge of 0.35% versus an industry peer group average of 0.62%.**
Our teams are solely focused on our mutual fund range – not stretched across multiple investment vehicles or mandates.
* Source: Vanguard. Data as at 31 March 2023
** Source: Vanguard. Data as at 31 March 2023. Peer group average OCF for IA Sector = Global Corporate Bond – USD Hedged. The ongoing charges figure (OCF) refers to the Investor GBP hedged Acc share class. The OCF covers the fund manager’s costs of managing the fund. It does not include dealing costs or additional costs such as audit fees.
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. The performance data does not take account of the commissions and costs incurred in the issue and redemption of shares.
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.
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 Vanguard 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 Funds 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.
For further information on risks please see the “Risk Factors” section of the prospectus on our website.
This is a marketing communication.
This document is directed at professional investors and should not be distributed to, or relied upon by retail investors.
For further information on the fund's investment policies and risks, please refer to the prospectus of the UCITS and to the KID before making any final investment decisions. The KID for this fund is available in local languages, alongside the prospectus via Vanguard’s website.
The information contained herein 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 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 and /or units of, and the receipt of distribution from any investment.
For Swiss professional investors: Potential investors will not benefit from the protection of the FinSA on assessing appropriateness and suitability.
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 EEA countries and the UK. 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 Swiss professional investors: The Manager of Vanguard Investment Series plc is Vanguard Group (Ireland) Limited. Vanguard Investments Switzerland GmbH is a financial services provider, providing services in the form of purchase and sales according to Art. 3 (c)(1) FinSA . Vanguard Investments Switzerland GmbH will not perform any appropriateness or suitability assessment. Furthermore, Vanguard Investments Switzerland GmbH does not provide any services in the form of advice. Vanguard Investment Series plc has been authorised by the Central Bank of Ireland as a UCITS. Prospective investors are referred to the Funds' prospectus for further information. Prospective investors are also urged to consult their own professional advisors 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.
For Swiss professional investors: Vanguard Investment Series plc has been approved for offer in Switzerland by the Swiss Financial Market Supervisory Authority (FINMA). The information provided herein does not constitute an offer of Vanguard Investment Series plc in Switzerland pursuant to FinSA and its implementing ordinance. This is solely an advertisement pursuant to FinSA and its implementing ordinance for Vanguard Investment Series plc. The Representative and the Paying Agent in Switzerland is BNP Paribas Securities Services, Paris, succursale de Zurich, Selnaustrasse 16, 8002 Zurich. Copies of the Articles of Incorporation, KID, Prospectus, Declaration of Trust, By-Laws, Annual Report and Semiannual Report for these funds can be obtained free of charge from the Swiss Representative or from Vanguard Investments Switzerland GmbH via our website.
The Manager of the Ireland domiciled funds may determine to terminate any arrangements made for marketing the shares in one or more jurisdictions in accordance with the UCITS Directive, as may be amended from time-to-time.
For investors in Ireland domiciled funds, a summary of investor rights can be obtained here and is available in English, German, French, Spanish, Dutch and Italian.
Information has been obtained from sources believed to be reliable but J.P. Morgan does not warrant its completeness or accuracy. The Index referenced herein is used with permission. The Index may not be copied, used, or distributed without J.P. Morgan’s prior written approval. Copyright 2016, J.P. Morgan Chase & Co. All rights reserved.
For Dutch investors only: The fund(s) referred to herein are listed in the AFM register as defined in section 1:107 Dutch Financial Supervision Act (Wet op het financieel toezicht). For details of the Risk indicator for each fund listed, please see the fact sheet(s) which are available from Vanguard via our website.