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Vanguard Global Bond Index Accumulation (Hedged GBP)

Sell:14,861.69p Buy:14,861.69p Change: 15.80p (0.11%)
Prices as at 12 August 2022
Sell:14,861.69p
Buy:14,861.69p
Change: 15.80p (0.11%)
You can buy or sell holdings in this fund through a Stocks and Shares ISA, Lifetime ISA, SIPP or Fund and Share Account
Prices as at 12 August 2022
Sell:14,861.69p
Buy:14,861.69p
Change: 15.80p (0.11%)
Prices as at 12 August 2022
You can buy or sell holdings in this fund through a Stocks and Shares ISA, Lifetime ISA, SIPP or Fund and Share Account
The selling price currently displayed is higher than the buying price. This can occur temporarily for a variety of reasons; shortly before the market opens, after the market closes or because of extraordinary price volatility during the trading day.

Our view on this Fund

This fund is on the Wealth Shortlist of funds our analysts believe have the potential to outperform their peers over the long term. However, this is not a recommendation to buy.

This fund focuses on bonds issued by global governments and companies that are more financially secure and likely to be able to pay off their debts. We think it's a great choice for broad exposure to this area of the bond market. The team have a good record of tracker fund investing and its simple and low-cost approach should help it mirror the performance of its benchmark.

Our view on the sector

Funds in this sector can invest in government and corporate bonds issued globally. And they can often be denominated in overseas currencies. Foreign currencies boost performance if sterling weakens, like it did after the UK voted to leave the European Union in 2016, but the reverse is true when sterling strengthens. These funds can be very different from each other. Some focus on generating income, others try to shelter investors' money during the bad times and might not generate any income. We think there are only a handful of investors with the skill to successfully manage a fund in this sector.

Performance Analysis

The fund aims to track a broad range of good-quality global bonds. Since launch it's tracked its benchmark closely. As you would expect from an index tracker fund, it's fallen behind the benchmark over the long term because of the costs involved in running the fund such as dealing charges and spreads. However, the techniques used by the team have helped to keep performance as close to the benchmark as possible and reduced the fund's tracking difference. Given Vanguard's size, experience and expertise, we expect the fund to continue to track the benchmark well in the future, though there are no guarantees. As the currency of overseas bonds is hedged back to sterling, we expect the funds performance to be less volatile over time compared to an equivalent unhedged fund.

Investment Philosophy

Tracker funds are one of the simplest ways to invest. They aim to match the performance of an index, rather than beat it. They usually do this by investing in as many companies as possible in the index. This means they don't need analysts to research individual companies, which keeps costs to a minimum. If the fund's costs are low, it's likely to track the index more closely.

Process and Portfolio Construction

The fund invests in nearly half of the number of constituents in the Bloomberg Global Aggregate Index, which is known as partial replication. This helps to keep costs down as the fund doesn't buy and sell every bond that is added to or removed from the index. While the team doesn't invest in every bond, the fund has tended to track its index closely as the team aims to replicate the broader characteristics of the index. For example, they select bonds that together help the fund to closely match the benchmarks credit rating or yield to maturity. A bonds credit rating is an assessment of the ability to pay back it's debt, while the yield to maturity is the total expected return if the bond is held until it matures. The fund also has the flexibility to invest in higher risk emerging markets if they see fit. Vanguard's global team provides 24-hour market access and consistent fund and bond price monitoring. The team also has access to local bond traders and these relationships can help the team find bonds at attractive prices. Please note as this is an offshore fund you are not normally entitled to compensation through the UK Financial Services Compensation Scheme.

question mark Manager Track Record Based on HL Quantitative Research

This information is currently unavailable.

Fund Track Record

12/08/17 to 12/08/18 12/08/18 to 12/08/19 12/08/19 to 12/08/20 12/08/20 to 12/08/21 12/08/21 to 12/08/22
Annual return -0.41% 7.91% 3.86% -0.07% -9.86%

Please remember past performance is not a guide to future returns. Where no data is shown, figures are not available. This information is provided to help you choose your own investments, remember they can fall as well as rise in value so you may not get back the original amount invested.

Fund Management Group Comment

Vanguard launched its first index fund for individual investors in the US in 1976, and launched its UK offering in 2009. Today it manages $1.7 trillion worth of assets for clients worldwide. Vanguard was founded by John C Bogle, who had a love of sailing ships and named the group after Admiral Horatio Nelson's ship, used in the victory over the French at the Battle of the Nile.

Information about the fund

Fund manager biography

manager photo
Manager Name: Vanguard Fixed Income Group
Manager start date: 31 March 2008
Manager located in: TBC

TBC

Data policy - All information should be used for indicative purposes only. You should independently check data before making any investment decision. HL cannot guarantee that the data is accurate or complete, and accepts no responsibility for how it may be used. Benchmark data provided subject to this disclaimer.
You can buy or sell holdings in this fund through a Stocks and Shares ISA, Lifetime ISA, SIPP or Fund and Share Account