Fund Management
Vanguard Launches Short-term Bond Index Fund

Vanguard Asset Management, a UK-based subsidiary of the Vanguard Group, has unveiled a global short-term bond index fund for investors that are looking to manage volatility in their portfolios.
Vanguard Asset
Management, a UK-based subsidiary of the Vanguard Group, has
unveiled a global short-term bond index fund for investors that
are looking to manage volatility in their portfolios.
The Vanguard Global Short-Term Bond Index fund will be managed on
a hedged basis to help reduce the volatility created by currency
movements and preserve the risk-return profile offered by the
underlying asset class, Vanguard said in a statement.
Vanguard said that the new fund has a total expense ratio of 0.2
per cent and is aimed at investors seeking a diversified low-cost
index fund to help manage interest rate, currency and credit risk
in their portfolios.
The fund will track the Barclays Global Aggregate 1-5 Years ex-US
MBS Float Adjusted Bond Index and will invest broadly across a
global universe of securities including government, investment
grade corporate, government related and securitised ex-US
mortgage-backed securities.
“Not only do global short-term bonds provide stability and
diversification, they also play a valuable role in protecting the
downside risk of portfolios. The Vanguard Global Short-Term Bond
Index fund aims to serve that purpose by offering broad
diversification, lower expected volatility compared to longer
maturity global bond funds, and low-cost access," said head of
product Axel Lomholt.