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A Milestone For Vanguard: New Fund Could Include Junk Bonds

FYI: Vanguard Group’s new bond fund would pave the way for the fund giant’s in-house portfolio managers to buy or sell junk bonds for the first time.
Regards,
Ted
http://blogs.barrons.com/focusonfunds/2015/12/21/a-milestone-for-vanguard-new-fund-could-include-junk-bonds/tab/print/

Comments

  • edited December 2015
    Vanguard Core Bond Fund filing:
    http://www.sec.gov/Archives/edgar/data/836906/000093247115009408/malvern485a.htm

    In the appended SAI, one finds:

    " Brian W. Quigley, Gemma Wright-Casparius and Gregory S. Nassour co-manage Vanguard Core Bond Fund; which as of the date of this Statement of Additional Information had not yet commenced operations.

    As of May 31, 2015, Mr. Quigley managed 1 other registered investment company with total assets of $5 billion (advisory fee not based on account performance). As of May 31, 2015, Ms. Wright-Casparius managed 4 other registered investment companies with total assets of $41 billion (advisory fees not based on account performance). As of May 31, 2015, Mr. Nassour managed 3 other registered investment companies with total assets of $75 billion, co-managed 2 other registered investment companies with total assets $15.8 billion, and co-managed 1 other pooled investment vehicle with total assets of $10 billion (none of which had advisory fees based on account performance)."


    And, not touched upon in the Barron's blog:

    "Daniel Shaykevich manages Vanguard Emerging Markets Bond Fund, which as of the date of this Statement of Additional Information had not yet commenced operations. As of May 31, 2015, Mr. Shaykevich managed X other registered investment companies with total assets of $X billion, and co-managed X other pooled investment vehicle with total assets of $XX billion (none of which had advisory fees based on account performance)."

    So, not only will Vanguard have an actively-managed Core Bond fund, they apparently will also have an actively-managed Emerging Mkts. Bond Fund. Well, whaddayaknow, that's a change.

    Vanguard's announcement:
    https://personal.vanguard.com/us/insights/article/fund-announcement-C-122015?link=topStories&linkLocation=Position1
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