Vanguard launches two Ucits corporate bond funds

Ridhima Sharma
clock • 1 min read

Vanguard has expanded its range of low-cost fixed income products with the launch of two Ucits corporate bond funds.

The Vanguard Global Corporate Bond Index fund offers simple, low-cost access to investment grade debt issued by companies in both developed and developing markets worldwide. The Vanguard Global Short-Term Corporate Bond Index fund is a passive option for investors seeking exposure to 1-5 year duration corporate bonds.

Both funds track Bloomberg Barclays’ indices. The new Ucits funds aim to provide high-quality, low-cost access to global investment grade corporate bonds with an ongoing charge of 0.25% for investor share classes and 0.20% for institutional classes.

Paul Malloy, head of Fixed Income for Vanguard in Europe, commented: “We are committed to lowering the cost of investing in the U.K, and doing so in a way that empowers investors to make choices appropriate to their investment objectives, and appetite for risk.”

“These new funds sit alongside our existing range of indexing tracking fixed income mutual funds and ETFs, as well as our recently launched active Vanguard Global Credit fund, in providing options for investors looking to put together balanced, diversified, long-term portfolios.”

Vanguard’s fixed income products are managed by Vanguard’s Fixed Income Group with more than $1.2trn in assets under management globally as of 31 July 2017.