Ratings Roundup

We are pleased to announce that Square Mile is awarding a recommended rating to the Vanguard Global Corporate Bond Index and the Vanguard Global Short Term Corporate Bond Index funds.

The Vanguard Global Corporate Bond Index tracks the Bloomberg Barclays Global Aggregate Float Adjusted Corporate Index Hedged in GBP and provides investors with access to global corporate bonds at a competitive price.

Likewise, the Vanguard Global Short Term Corporate Bond Index tracks the Bloomberg Barclays Global Aggregate Corporate 1-5 Year Float Adjusted Index Hedged in GBP and provides investors with access to short dated global corporate bonds at a price cheaper than an active fund in this space.

Both funds’ benchmarks are structured in such a way that the largest constituents will be companies with the highest absolute levels of debt. This could create a concern from a credit risk perspective; however it is difficult to avoid given the size of the investment universe.