US-based asset manager Vanguard has launched a global government bond index fund.
The fund is the seventh fixed income fund launched by Vanguard in Europe this year and 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, said: “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 new fund will be managed by Vanguard’s Fixed Income Group which manages more than $2.6 trillion in assets globally. With today’s addition, Vanguard now offers 40 fixed income index products in Europe.
