Vanguard is introducing two new dynamic asset allocation fixed income model portfolios for advisors, the Vanguard Fixed Income Capital Preservation and Vanguard Fixed Income Active Total Return.
“Fixed income remains a cornerstone of a well-diversified portfolio, and with our newest launch of fixed income asset allocation models, we’re giving financial advisors the tools to manage this essential component with precision and efficiency,” Amma Boateng, Managing Director of Financial Advisor Services at Vanguard, said in a news release. “Streamlining investment manager research, portfolio construction, and portfolio monitoring through model portfolios empowers advisors to spend more time strengthening client relationships and growing their business.”
In addition, Vanguard introduced its first two fixed income models in May. Vanguard Fixed Income Risk Diversification model portfolio intends to help provide ballast against equity market volatility. Vanguard Fixed Income Total Return model portfolio is designed for advisors whose clients seek wealth accumulation.
Vanguard Fixed Income Capital Preservation model focuses on minimizing volatility to safeguard capital while generating modest returns. The model is designed to ensure that capital remains available when investors need it, according to the release.
Vanguard Fixed Income Active Total Return model is an actively managed fixed income portfolio that uses higher quality global bonds and high-yield bonds to outperform a passive benchmark. The company said the model is appropriate for clients who are at ease with more volatility in pursuit of higher returns.
Vanguard Fixed Income Group currently manages $2.6 trillion in assets. The company reports that 92% of its active fixed income funds outperformed their peer group averages over the past ten years ended June 30.
