Press Release--Vanguard Continues To Expand Active Fixed Income Offerings With Proposed Global Credit Bond Fund

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Paul Romano
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Press Release--Vanguard Continues To Expand Active Fixed Income Offerings With Proposed Global Credit Bond Fund

Post by Paul Romano » Thu Aug 09, 2018 10:20 am

https://www.prnewswire.com/news-releas ... 4764.html


Vanguard Continues To Expand Active Fixed Income Offerings With Proposed Global Credit Bond Fund



"VALLEY FORGE, Pa., Aug. 9, 2018 /PRNewswire/ -- Vanguard today filed a preliminary registration statement with the Securities and Exchange Commission for Vanguard Global Credit Bond Fund. The new actively managed fund, expected to launch in November 2018, will provide investors with diversified, predominately investment-grade exposure to the U.S. and international credit markets.

"Our clients are increasingly looking to reduce their home bias and harness the return potential and diversification benefits offered by the international equity and fixed income markets," said John Hollyer, global head of Vanguard Fixed Income Group. "The new Global Credit Bond Fund's wide range of security selection opportunities and regional and sector exposures, combined with the flexibility of active management, will make it an attractive core or satellite portfolio holding."

The fund will invest in both corporate and non-corporate obligations, and will exclude government-guaranteed issues. Most of the non-U.S. portion of the portfolio will be hedged to the U.S. dollar, enabling investors to pursue a global credit premium without adding currency risk."

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jhfenton
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Re: Press Release--Vanguard Continues To Expand Active Fixed Income Offerings With Proposed Global Credit Bond Fund

Post by jhfenton » Thu Aug 09, 2018 10:40 am

Admiral Shares at 0.25% and Investor Shares at 0.35%. No purchase fee. It says a majority will be invested in U.S. securities. I wonder how that will break down over down time. SEC filing here. Should launch on or within a few days after November 12.

I will not be a buyer, but it'll be interesting to watch.

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Barry Barnitz
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New fund: Vanguard Global Credit Bond Fund

Post by Barry Barnitz » Thu Aug 09, 2018 3:14 pm

Hi:

Vanguard has filed a preliminary prospectusfor an actively managed global investment grade bond fund.

From the August 9, 2018 Vanguard press release:
Today, Vanguard filed a registration statement with the U.S. Securities and Exchange Commission for the proposed launch of Vanguard Global Credit Bond Fund, a U.S.-domiciled active fixed income product that is expected to be available during the fourth quarter of 2018. The fund will offer broad, diversified exposure to U.S. and non-U.S. predominantly investment-grade debt securities, including corporate and non-corporate obligations. The majority of the non-U.S. securities will be hedged to the U.S. dollar, allowing investors to pursue a global credit premium without adding significant currency risk.
The fund will offer both an Admiral share class and an Investor share class, with estimated expense ratios of 0.25% and 0.35%, respectively. The fund will be benchmarked to the Bloomberg Barclays Global Aggregate Credit Index (USD-hedged).

The high-quality, globally diversified focus of the fund allows it to be used as a core holding for investors with an active management preference. It can also be used in combination with a U.S. or global aggregate or government portfolio to achieve the desired exposure to investment grade credit.
regards,
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ReformedSpender
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Re: New fund: Vanguard Global Credit Bond Fund

Post by ReformedSpender » Thu Aug 09, 2018 3:18 pm

No thanks

:beer
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triceratop
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Re: Press Release--Vanguard Continues To Expand Active Fixed Income Offerings With Proposed Global Credit Bond Fund

Post by triceratop » Thu Aug 09, 2018 6:31 pm

^^ I merged Barry's duplicate topic into the ongoing discussion.
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spdoublebass
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Re: Press Release--Vanguard Continues To Expand Active Fixed Income Offerings With Proposed Global Credit Bond Fund

Post by spdoublebass » Thu Aug 09, 2018 9:19 pm

I thought this new fund was going to be a compliment to Total World stock fund.

Why wouldn't they just follow an index instead of actively managing it?
I'm trying to think, but nothing happens

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Re: Press Release--Vanguard Continues To Expand Active Fixed Income Offerings With Proposed Global Credit Bond Fund

Post by bertilak » Fri Aug 10, 2018 6:20 pm

spdoublebass wrote:
Thu Aug 09, 2018 9:19 pm
I thought this new fund was going to be a compliment to Total World stock fund.

Why wouldn't they just follow an index instead of actively managing it?
I am no expert, but there may be a hint in another thread: Why does TBM have such high turnover?
I looked at VBTLX (Total Bond Index) and VBILX (Intermediate bond index) and both have a turnover rate of 55%

I believe the high turnover is required to maintain the fund's target duration. Perhaps a non-index fund will have more freedom to (somehow?) reduce the turnover, resulting in lower costs.
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columbia
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Re: Press Release--Vanguard Continues To Expand Active Fixed Income Offerings With Proposed Global Credit Bond Fund

Post by columbia » Sun Aug 12, 2018 6:47 pm

I’m not interested in non-US debt, but I suppose I can see the theoretical appeal of the international component of this fund, as opposed to BNDX. Why would an investor want the proportions/weights of the various countries in that fund? Simply because they carry the most debt (in the context of the countries tracked by the index)? That doesn’t seem like a very good reason.

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CyberBob
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Re: Press Release--Vanguard Continues To Expand Active Fixed Income Offerings With Proposed Global Credit Bond Fund

Post by CyberBob » Sun Aug 12, 2018 7:56 pm

spdoublebass wrote:
Thu Aug 09, 2018 9:19 pm
I thought this new fund was going to be a compliment to Total World stock fund.
That’s another fund that’s global credit and government.
viewtopic.php?t=249955

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spdoublebass
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Re: Press Release--Vanguard Continues To Expand Active Fixed Income Offerings With Proposed Global Credit Bond Fund

Post by spdoublebass » Tue Aug 14, 2018 10:40 am

CyberBob wrote:
Sun Aug 12, 2018 7:56 pm
spdoublebass wrote:
Thu Aug 09, 2018 9:19 pm
I thought this new fund was going to be a compliment to Total World stock fund.
That’s another fund that’s global credit and government.
viewtopic.php?t=249955

Thank you.
I'm trying to think, but nothing happens

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