Vanguard continues its active push with the launch of the actively managed Vanguard Emerging Markets Bond fund.
The giant asset manager says it has made the move as the emerging markets debt is under-represented in most global indices, leaving many investors underweight.
Vanguard founder John ‘Jack’ Bogle, who passed away at the beginning of the year, invented index investment. The Pensylvania-based giant has some $5.9trn (£4.54trn) in assets under management globally, with less than a third of those assets – $1.4trn (£1.08trn) – managed actively.
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The company said the fund is “built on Vanguard’s strong expertise in fixed income.” The fund will be managed by Vanguard’s global emerging market and sovereign debt team, led by Daniel Shaykevich, which was formed in 2013 and manages globally more than $10bn (£7.69trn) in actively managed assets across Vanguard funds.
Vanguard’s head of investment in Europe Paul Jakubowski says: “Emerging markets debt is an asset class where we’ve seen a lot of performance differentiation among active managers.
“We believe a strong team and a rigorous investment process can really make a difference in delivering consistent alpha.
“Vanguard has deep roots in active management and we firmly believe that there is a role for both low-cost active and index funds to give investors the best chance for investment success.”
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Vanguard emerging markets strategy head and research lead Nick Eisinger says: “Emerging markets debt remains under-represented in the main global fixed income indices.
“As a result, many investors are underweight in this asset class and may wish to consider this fund as part of a well-diversified portfolio.
“The fund aims to capitalise on best-in-class opportunities, be it across countries, specific bonds or areas of the market.”
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