VALLEY FORGE, PA (January 26, 2023)—Vanguard today announced that the actively managed Vanguard Multi-Sector Income Bond Fund is now available for public investment, offering investors diversified exposure to fixed income credit sectors. The fund, managed by Vanguard Fixed Income Group, provides clients with a flexible, risk-controlled approach that enables portfolio managers to seek the best opportunities across various sectors and credit qualities.
“Vanguard Multi-Sector Income Bond Fund provides investors access to our world-class fixed income investment talent through a low-cost strategy with high alpha potential,” said Sara Devereux, global head of Vanguard Fixed Income Group. “We believe the fund can help clients meet their long-term investment objectives by serving as a complement to a well-diversified portfolio.”
Vanguard Multi-Sector Income Bond Fund can invest in a wide range of fixed income asset classes but will offer exposure primarily to U.S. high-yield corporate securities, U.S. investment-grade securities, and emerging markets debt of all credit quality ratings—three areas of the market where Vanguard has demonstrated expertise. By appropriately weighting these three allocations within the fund’s custom benchmark, Vanguard aims to provide greater performance transparency than solely using a broad fixed income benchmark commonly used by competing multisector products. The fund has an estimated expense ratio of 0.40% for Investor Shares and 0.30% for Admiral™, compared with an average expense ratio of 0.66% for industry peers.1
A distinguished leader in global fixed income
For more than 40 years, Vanguard Fixed Income Group has distinguished itself with deep investment capabilities, disciplined security selection processes, and rigorous risk management techniques, resulting in consistent, long-term performance. Vanguard continues to invest in its active bond portfolio management capabilities and offers a carefully curated and enduring lineup that continues to provide long-term value and meets evolving investor needs.
Vanguard’s active and index fixed income investment product lineup encompasses a full range of broadly diversified core and more targeted satellite exposures across the duration and credit quality spectrums. Vanguard has a long track record of outperformance with 98% of Vanguard active fixed income funds surpassing their peer group averages over the past 10 years ended December 31, 2022.2
Founded in 1975, Vanguard is one of the world's leading investment management companies. The firm offers investments, advice, and retirement services to individual investors, institutions, and financial professionals. Vanguard operates under a unique, investor-owned structure where Vanguard fund shareholders own the funds, which in turn own Vanguard. As such, Vanguard adheres to a simple purpose: To take a stand for all investors, to treat them fairly, and to give them the best chance for investment success. For more information, visit vanguard.com.
All figures as of December 31, 2022, unless stated otherwise.
1 Peer group is Morningstar’s multisector income category
2 For the ten-year period ended December 31, 2022, 80 of 90 Vanguard bond funds outperformed their peer group averages; results will vary for other time periods. Only funds with a minimum ten-year history were included in the comparisons. (Source: Lipper, a Thomson Reuters Company) Note that this competitive performance data represents past performance, which is not a guarantee of future results, and that all investments are subject to risks. For the most recent performance, visit our website at www.vanguard.com/performance.
For more information about Vanguard funds, visit vanguard.com to obtain a prospectus or, if available, a summary prospectus. Investment objectives, risks, charges, expenses, and other important information are contained in the prospectus; read and consider it carefully before investing.
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