The firm says it will cost less than all active retail funds offered in the global credit bond category in the UK.

Asset management firm Vanguard has launched its first low-cost, actively managed global credit bond fund in the UK. The fund will be actively managed by Vanguard’s fixed income group.

The Vanguard Global Credit Bond Fund will invest in a diverse portfolio of global credit bonds, including high-quality bonds from corporate issuers, government agencies and supranational organisations around the world, the firm said in a statement.

According to Vanguard, the new fund will costs less than all active retail funds offered in the global credit bond category in the UK, helping investors keep more of their returns in a low-yield environment. It will carry an ongoing charge figure (OCF) of 0.35 per cent for investor share classes, and 0.30 per cent for institutional share classes.

“The case for investing in high quality, liquid global credit bonds is compelling as it can offer a reasonable income compared with other bond and equity income strategies," said ​Paul Malloy, head of fixed income Europe. "Another important element is the universe the fund will invest in will typically have lower volatility than high yield bonds or equities, helping to offset a portfolio’s return volatility. Investors should also pay close attention to costs, as the impact of fees is amplified in a low-yield market environment."