Vanguard has reported the launch of the Vanguard Global Government Bond Index Fund. The fund is the 7th fixed income fund launched by Vanguard in Europe this year and will serve as an additional core building block for investors’ portfolios. The fund complements the existing Vanguard Global Government Bond UCITS ETF, providing investors with a choice of investment wrapper.
Mark Fitzgerald, head of product specialism at Vanguard Europe, comments:
“When it comes to fixed income it can be tempting for investors to invest locally. However, underscored by recent market events, the added breadth of a global allocation can help diversify risk. By adding a global government bond fund, investors gain exposure to more securities, different inflation and economic environments, as well as different business cycles, from a wider range of markets.”
The fund seeks to track the Bloomberg Global Treasury Developed Countries Float Adjusted Index and is hedged to reduce currency risk. The following share classes will be available at launch and carry the following ongoing charges figure[1] (OCF):
| Fund | Share class[2] | OCF[3] |
| Vanguard Global Government Bond Index Fund | Vanguard Global Government Bond Index Fund EUR Hedged Acc | 0.14% |
| Vanguard Global Government Bond Index Fund EUR Hedged Dist | ||
| Vanguard Global Government Bond Index Fund GBP Hedged Acc | ||
| Vanguard Global Government Bond Index Fund GBP Hedged Dist | ||
| Vanguard Global Government Bond Index Fund CHF Hedged Acc | ||
| Vanguard Global Government Bond Index Fund USD Hedged Acc |
The new fund will be managed by Vanguard’s Fixed Income Group. The Fixed Income Group manages more than $2.6 trillion in assets across the globe and draws on diverse perspectives and knowledge to deliver accurate benchmark tracking, prudent risk management and highly competitive investment performance. With today’s addition, Vanguard now offers 40 fixed income index products in Europe.
