TORONTO, March 29, 2019 /CNW/ - Vanguard Investments Canada Inc. announced today that the Vanguard Global ex-Canada Fixed Income Index Pooled Fund (CAD-hedged) will seek to track a new benchmark, the Bloomberg Barclays Global Aggregate ex-CAD Float Adjusted and Scaled Index (CAD-hedged), effective April 1, 2019.
This change reflects the addition of Chinese government and policy bank bonds to the Bloomberg Barclays Global Aggregate Bond Index and related fixed income indexes. The bonds, denominated in China's renminbi (RMB) currency, will be phased in over 20 months.
Rather than fully including the China onshore bonds in the same proportion as the existing benchmark, namely Bloomberg Barclays Global Aggregate ex-CAD Float Adjusted Index (CAD Hedged), which would result in allocations of approximately 7.5% for the Vanguard Global ex-Canada Fixed Income Index Pooled Fund (CAD-hedged), Vanguard Investments Canada Inc. will use a partial inclusion approach offered by the new benchmark, Bloomberg Barclays Global Aggregate ex-CAD Float Adjusted and Scaled Index (CAD Hedged).
This partial inclusion approach caps the weighting of China onshore bonds in the Vanguard fund at 5% of the full-inclusion allocation in the existing Bloomberg Barclays indexes and follows a careful evaluation of the potential risk, return and cost of including exposure to China's $11 trillion onshore bond market.
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Vanguard Investments Canada Inc. is a wholly owned indirect subsidiary of The Vanguard Group, Inc. and manages over CAD 19 billion in assets (as of March 1, 2019) with 39 Canadian ETFs and four mutual funds, along with a suite of 12 target retirement funds and eight pooled funds currently available. The Vanguard Group, Inc. is one of the world's largest investment management companies and a leading provider of company-sponsored retirement plan services. Vanguard manages USD 5.3 trillion (CAD $7 trillion) in global assets, including over USD 1 trillion (CAD $1.3 trillion) in global ETF assets (as of February 28, 2019). Vanguard has offices in the United States, Canada, Europe, Australia and Asia. The firm offers 415 funds, including ETFs, to its more than 20 million investors worldwide.
Vanguard operates under a unique operating structure. Unlike firms that are publicly held or owned by a small group of individuals, The Vanguard Group, Inc. is owned by Vanguard's U.S.-domiciled funds and ETFs. Those funds, in turn, are owned by Vanguard clients. This unique mutual structure aligns Vanguard interests with those of its investors and drives the culture, philosophy, and policies throughout the Vanguard organization worldwide. As a result, Canadian investors benefit from Vanguard's stability and experience, low-cost investing, and client focus. For more information, please visit vanguardcanada.ca.
Commissions, management fees, and expenses all may be associated with investment funds. Investment objectives, risks, fees, expenses, and other important information are contained in the offering memorandum; please read it before investing. Investment funds are not guaranteed, their values change frequently, and past performance may not be repeated. Vanguard funds are managed by Vanguard Investments Canada Inc.
SOURCE Vanguard Investments Canada Inc.
For further information: Matt Gierasimczuk, Vanguard Canada Public Relations, Phone: 416-263-7087, [email protected]