Active fixed income | Vanguard Netherlands Professional

Consistency is key

Managed by our global Fixed Income Group, our active fixed income funds are founded on a commitment to deliver value to investors by focusing on consistent, long-term alpha generation and reducing downside risk.

We believe a long-term approach, based on bottom-up security selection, to deliver consistent returns can help investors and our clients meet their objectives. We began managing active bond portfolios 40 years ago – today, we are one of the largest active fixed income managers in the world, with more than USD 470 billion¹ in active fixed income assets globally.

91% of our active bond funds globally beat peers over 10 years (2)

We seek outperformance while staying true to the character and objective of each fund.

⁽¹⁾Source: Vanguard. Data as at 31 May 2025.

⁽²⁾ Source: LSEG Lipper. Data as at 31 March 2025. The percentage of Vanguard funds globally in each category that outperformed the average return of their peer group of mutual funds. For the 10-year period, 42 of 46 bond funds outperformed their peer-group averages. Results will vary for other time periods. Only funds with a minimum 10-year history were included in the comparison. Not all funds included are available in Europe.

Note that the competitive performance data shown represent past performance, which is not a guarantee of future results, and that all investments are subject to risks.

Vanguard’s Active Fixed Income Approach

Vanguard is well known for our index funds, but here's something you may not know. Vanguard is one of the world's largest active fixed income fund managers. Our 40 years of experience have honed a time-tested trifecta. Our active team, our process, and our low fees, which enable our differentiated approach to risk taking, have delivered strong outcomes for our clients. It starts with our team.

In our active business, we have about 150 portfolio managers, traders, and research analysts worldwide, specializing in all publicly traded fixed income sectors. That allows for a depth of expertise across the bond market. Rather than relying on concentrated risk positions, our managers deploy a diversified set of strategies that we believe offers our clients a better chance of investment success. Our process thrives on close collaboration and specialized skill.

Portfolio managers marry the macroeconomic trends with the perspectives from the sector analysts, creating an optimal approach for each fund. Simultaneously, our analysts and traders actively pursue the best opportunities in the markets they cover. And, our low expense ratios allow us to take a differentiated approach when taking risks. Given our low fees, we have an asymmetric advantage to deliver net outperformance to our clients.

When the risk reward outlook appears less attractive, for example, when a recession may be on the horizon, we could take a more defensive approach in credit. We don't have to take significant risks through all market environments just to try to deliver outperformance above our fees. And when the market presents attractive opportunities, our specialized teams are intent on finding the best course to implement across our portfolios. Taken together, our active fixed income team, process, and low fees have enabled Vanguard to deliver strong outcomes for our clients.

We’re built for success

Investment talent

Our deep specialisation and collaborative culture are the foundation of our investment process.

True-to-label

We seek outperformance while staying true to the character and objective of each fund.

Low costs

Our scale and client-owned structure in the US² allow us to offer lower fees so that clients keep more of their returns.

Diversified alpha

Our teams seek to outperform by constructing diversified portfolios of high-information ratio strategies rather than relying on concentrated risk positions.

Smart risk-taking

Risk optimisation is an integral part of our investment process, and lower fees enable us to deliver competitive net alpha without taking undue risk.

²The Vanguard Group Inc. (VGI) is owned by Vanguard’s US-domiciled mutual funds and ETFs. While VGI’s ownership structure can’t be replicated outside of the US, we believe that this unique mutual structure aligns Vanguard’s interests with those of our investors globally.

More about our approach to active fixed income

Active fixed income at Vanguard

Read more about Vanguard’s active fixed income strategy – built for consistent, cost-effective performance.

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Our active fixed income product range

Vanguard Global Credit Bond Fund

A high-quality global credit bond portfolio, designed for outperformance through bottom-up security selection and deep credit insight.

More about the Global Credit Bond Fund

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Vanguard Emerging Markets Bond Fund

An emerging markets bond portfolio designed to outperform by identifying diversified sources of alpha while avoiding the potential for significant drawdown.

More about the Emerging Markets Bond Fund

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The value of investments, and the income from them, may fall or rise and investors may get back less than they invested.

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Bond market viewpoints

Our senior portfolio managers share their highest conviction ideas.

Some funds invest in emerging markets which can be more volatile than more established markets. As a result the value of your investment may rise or fall.

For fund risks please refer to the disclaimer wording in the videos.

Investment risk information

The value of investments, and the income from them, may fall or rise and investors may get back less than they invested.

Some funds invest in emerging markets which can be more volatile than more established markets. As a result the value of your investment may rise or fall.

Investments in smaller companies may be more volatile than investments in well-established blue chip companies.

Funds investing in fixed interest securities carry the risk of default on repayment and erosion of the capital value of your investment and the level of income may fluctuate. Movements in interest rates are likely to affect the capital value of fixed interest securities. Corporate bonds may provide higher yields but as such may carry greater credit risk increasing the risk of default on repayment and erosion of the capital value of your investment. The level of income may fluctuate and movements in interest rates are likely to affect the capital value of bonds.

The Vanguard Emerging Markets Bond Fund and Vanguard Global Credit Bond Fund may use derivatives, including for investment purposes, in order to reduce risk or cost and/or generate extra income or growth. For all other funds they will be used to reduce risk or cost and/or generate extra income or growth. The use of derivatives could increase or reduce exposure to underlying assets and result in greater fluctuations of the Funds net asset value. A derivative is a financial contract whose value is based on the value of a financial asset (such as a share, bond, or currency) or a market index.

Some funds invest in securities which are denominated in different currencies. Movements in currency exchange rates can affect the return of investments.

For further information on risks please see the “Risk Factors” section of the prospectus on our website.

Important information

This is a marketing communication.

For further information on the fund's investment policies and risks, please refer to the prospectus of the UCITS and to the KID before making any final investment decisions. The KID for this fund is available in local languages, alongside the prospectus via Vanguard’s website.

The information contained herein is not to be regarded as an offer to buy or sell or the solicitation of any offer to buy or sell securities in any jurisdiction where such an offer or solicitation is against the law, or to anyone to whom it is unlawful to make such an offer or solicitation, or if the person making the offer or solicitation is not qualified to do so. The information is general in nature and does not constitute legal, tax, or investment advice. Potential investors are urged to consult their professional advisers on the implications of making an investment in, holding or disposing of shares and /or units of, and the receipt of distribution from any investment.

Vanguard Investment Series plc has been authorised by the Central Bank of Ireland as a UCITS and has been registered for public distribution in certain EEA countries and the UK. Prospective investors are referred to the Funds' prospectus for further information. Prospective investors are also urged to consult their own professional advisers on the implications of making an investment in, and holding or disposing shares of the Funds and the receipt of distributions with respect to such shares under the law of the countries in which they are liable to taxation.

The Manager of Vanguard Investment Series plc is Vanguard Group (Ireland) Limited. Vanguard Asset Management, Limited is a distributor of Vanguard Investment Series plc.

The Manager of the Ireland domiciled funds may determine to terminate any arrangements made for marketing the shares in one or more jurisdictions in accordance with the UCITS Directive, as may be amended from time-to-time.

For investors in Ireland domiciled funds, a summary of investor rights is available in English, German, French, Spanish, Dutch and Italian.

For Dutch investors only: The fund(s) referred to herein are listed in the AFM register as defined in section 1:107 Dutch Financial Supervision Act (Wet op het financieel toezicht).For details of the Risk indicator for each fund listed, please see the fact sheet(s) which are available from Vanguard via our website.

Vanguard active fixed income funds