INVESTMENT STRATEGIES

Active fixed income

Active fixed income

RELATED STRATEGIES

 

Stable value

 

Cash/Short-term

 

Active

Vanguard’s active fixed income approach

Whether a plan sponsor, a pension fund, a nonprofit, or a consultant, all are seeking that holy grail—consistent outperformance without undue risk. Over the long term, it's not implausible with the right combination of factors, especially in fixed income.

Some firms may tout their size, talent, process, or results, but none can match the unique blend of all that Vanguard brings. We’re one of the most trusted companies in asset management for a reason.

We're also one of the largest, giving us the scale, clout, and ability to deliver cost efficiencies and attract top talent. We’ve been actively managing bond funds for nearly four decades, enhancing our research, talent pool, and risk management strategy, further refining our time-tested, repeatable investment process.


Philosophy

The following pillars of our investment management

approach are all geared toward delivering

compounding alpha—more consistent outperformance

with less downside risk.


Talent, culture, process

Deep expertise, a collaborative culture, and a repeatable investment process are the foundation of our success.


Diversified sources of alpha

We construct portfolios from a diverse set of high information ratio strategies rather than relying on concentrated risk positions.


True-to-label products

You can be confident that our funds and trusts are designed to behave the way you would expect for their mandates and asset classes. There are no surprises that could sabotage your asset allocation strategy when you need it most.


Smart risk-taking

Risk optimization is integral in every step of the process. Lower fees also enable competitive net alpha without undue risk.


Client-aligned business

Our scale and unique investor-owned structure1 allow us to deliver superior value through lower fees2 that help clients keep more of their returns.


People and process

Our investment process is characterized by deep specialization and constant collaboration.

Vanguard’s dedicated active taxable fixed income team of 90+ professionals—senior leaders, portfolio managers, researchers, traders, and risk specialists—work together to support all relevant products. Unlike at other firms that may have an "A team" or a "B team," all Vanguard bond funds and trusts benefit from our top talent.

Credit and rates

Leaders of the credit and rates teams develop a macroeconomic framework of top-down insights combined with bottom-up views from the sector teams, exploring relative values across sectors and setting the overall credit and rates strategy.


Portfolio management

Fund-specific portfolio management teams collaborate to tailor these strategies to their respective portfolios given each specific mandate’s opportunity set and objectives.


Sector teams

We provide bottom-up selection of subsectors, issuers, and securities through rigorous fundamental research.


Oversight

The Senior Investment Committee and Risk Management Group maintain oversight and governance through every stage of the process.


Looking to fill a mandate?

 

Adding Vanguard products to your approved lists?

 

Reaching out with an RFI or RFP?

1Vanguard is investor owned. This means investors own the funds that own Vanguard.

2Vanguard's asset-weighted average expense ratio of 0.09% is less than one-fifth the industry average of 0.49%. Sources: Vanguard and Morningstar, Inc., as of December 31, 2021.

All investing is subject to risk, including possible loss of principal. Diversification does not ensure a profit or protect against a loss.