Vanguard has expanded its active income range with a US dollar corporate bond fund focused on US businesses.
The Vanguard USD High Yield Corporate Bond fund targets a higher total return than its benchmark, Bloomberg’s US High Yield 2% Issuer Cap Index. To achieve this, the firm employs disciplined security selection and risk management, alongside intensive research.
The fund may also invest in off-benchmark opportunities, including leveraged loans.
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Claire Aley, head of product and PRD, Europe, said: “We know investors are looking for fixed income solutions that can help them generate income without significantly increasing complexity within their portfolios.
“This fund provides access to a well-established part of the bond market through a straightforward, actively managed approach, at a highly competitive cost.”
The fund has an OCF of 0.25%, and will be domiciled in Ireland.
Michael Chang, head of high yield and lead portfolio manager, said: “Successful high yield investing requires discipline and selectivity. Our approach is grounded in rigorous credit research, disciplined security selection and a strong focus on risk management.”
