Vanguard has launched the Vanguard UK Short-Term Gilt Index fund, adding to its suite of UK government bond products.
The new fund complements the existing range, including the Vanguard U.K. Gilt UCITS ETF, Vanguard UK Government Bond Index fund, and Vanguard UK Inflation-Linked Gilt Index.
The UK has one of the longest debt maturities among developed economies, said Kelly Gemmell, Vanguard’s head of fixed income product specialism.
“For investors wishing to diversify the duration of their gilts portfolios, the Vanguard UK Short-Term Gilt Index Fund provides a high-quality way to do so.”
Domiciled in Ireland, the fund will track the Bloomberg UK Gilt 1-5Yr Float Adjusted Index, with a 0.12% ongoing charges figure across accumulating and decumulating.
Doug Abott, head of Vanguard’s UK client group, said: “Higher interest rates, and the baby boomer generation retiring, mean our clients increasingly want true-to-label products to provide ballast to portfolios. Building out our fixed income offering is a priority for us this year.”
The fund will be managed by Vanguard’s Fixed Income Group, which manages more than $2.6trn in assets globally.