Marking a continued expansion of its investment lineup for non-U.S. investors, Vanguard launched a new fixed income index portfolio on 31 March 2008: Vanguard® Global Bond Index Fund. The fund will track the performance of the Lehman Brothers Global Aggregate Bond Index, which includes a wide spectrum of global government, agency, corporate, and securitized fixed income investments.
“Investors now have a single option for worldwide fixed income exposure that includes the benefits of an index approach—namely low costs and broad diversification,” said James M. Norris, principal and head of Vanguard International Group. Mr. Norris noted that, like Vanguard’s other Ireland-domiciled UCITS funds, Vanguard Global Bond Index Fund is most appropriate for institutional investors, such as pension schemes, multinational organizations, and endowments and trusts.
Vanguard Global Bond Index Fund is structured as a fund of funds, investing in a group of up to eight underlying Vanguard Ireland-domiciled portfolios that reflect the overall world bond-market capitalization. The funds include:
Initial allocation of underlying Vanguard funds |
| Euro Government Bond Index Fund |
19.5% |
| Euro Investment Grade Bond Index Fund |
10.8% |
| U.S. Government Bond Index Fund |
12.0% |
| U.S. Mortgage Backed Securities Bond Index Fund |
13.4% |
| U.S. Investment Grade Credit Index Fund |
11.8% |
| U.K. Investment Grade Bond Index Fund |
2.6% |
| Japan Government Bond Index Fund |
16.9% |
| U.K. Government Bond Index Fund* |
— |
| Remaining benchmark exposure achieved by purchasing individual securities. |
13.0% |
The fund will offer U.S. dollar, euro, and yen currency share classes, as well as a U.S. dollar-hedged share class and a euro-hedged share class.
Vanguard Global Bond Index Fund joins ten existing Ireland-domiciled bond index portfolios and eight U.S.-domiciled bond index funds advised by The Vanguard Group Inc.’s Fixed Income Group. Kenneth E. Volpert, CFA, and Gregory Davis, CFA, will jointly manage the portfolio. Mr. Volpert, a principal and head of Vanguard Bond Index Group, has 26 years of investment experience and has managed portfolio investments for Vanguard since 1992. Mr. Davis, a principal in The Vanguard Group Inc.’s Fixed Income Group, has managed portfolio investments for Vanguard since 2000.
All data as of 29 February 2008.
Notes:
- The information contained herein does not constitute an offer or solicitation and may not be treated as an offer or solicitation 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 sale of Vanguard Investment Series plc funds is subject to conditions stipulated in the prospectus, supplements to the prospectus, simplified prospectuses, and, in some countries, local addenda. These documents can be obtained free of cost at the statutory office of Vanguard Investment Series plc in JPMorgan House, International Financial Services Centre, Dublin 1, Ireland, by contacting us at +32.2.357.1410, or by visiting our website at www.vanguardeurope.com. These documents contain detailed information on the management, costs, possible limitations and investments risks associated with investing in the Vanguard Investment Series plc funds and should be carefully read before investing.
- Vanguard Investment Series plc has been authorized in Ireland as a UCITS pursuant to the European Communities (Undertakings for Collective Investment in Transferable Securities) Regulations, 2003 as amended.
- Vanguard Investments Europe SA is a Distributor of the Vanguard Investment Series plc.
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