The latest in funds and investments news from across Europe and the UK.
Vanguard has launched the actively managed Vanguard Emerging Markets Bond Fund. The fund will be managed by Vanguard’s global emerging market and sovereign debt team led by Daniel Shaykevich. It will aim to provide total return while generating a moderate income by investing primarily in a diversified portfolio of emerging markets debt that “remains under-represented” in the main global fixed income indices, the group said.
The EM debt team, formed in 2013, manages around $10 billion in actively managed assets across Vanguard funds globally. The fund sits alongside Vanguard's actively managed Global Credit Bond Fund and is benchmarked against JP Morgan's EMBI Global Diversified Index. The majority of its assets will be either denominated in, or hedged back to, the US dollar. Currency hedged share classes are also available.
In comment, Paul Jakubowski, head of investment in Europe for Vanguard, said: “Emerging markets debt is an asset class where we’ve seen a lot of performance differentiation among active managers. We believe that there is a role for both low-cost active and index funds to give investors the best chance for investment success.”