Relevance of strategy
This fund provides an active approach to invest in the broad emerging market sovereign bonds.
Performance
The fund has a proven track record to outperform the benchmark (JPM EMBI Global Diversified Index) on long term basis.
The Vanguard Group is a US-based private investment firm founded in 1975 by John Bogle, and is best known for offering low cost, uncomplicated mutual fund and ETF solutions. It manages over US$12tn worth of assets.
The Vanguard Emerging Markets Bond Fund is an actively managed bond strategy seeking to provide total return while generating moderate level of income by investing >80% in emerging market sovereign bonds including agencies, local authorities and supranationals. The fund has no maturity or credit rating constraints. The fund can invest in local currency bonds although majority of the assets are expected to be denominated or hedged to USD. The fund combines top-down macroeconomic assessment with bottom-up bond selection in the portfolio construction process. The fund runs a concentrated portfolio of >340 holdings vs benchmark of >1000 holdings.