Active managers can leverage these and other factors and adjust based on changing market conditions. Has the currency exchange rate changed? Perhaps the premium for ex-U.S. bonds is lower than Vanguard believes to be fair value, so managers may decide to wait to buy a particular bond or set of bonds.
Spread-widening because of country-specific concerns may present an opportunity for better risk compensation, prompting a potential buy. Our expert teams around the world are well positioned to find the best prospects for our funds.
The market is always changing. It is our job as active managers to ferret out what we believe are the best choices. We believe that successful active management over time is not about leveraging large macro bets, but consistently finding value, sometimes in small differences, so investors who can benefit from exposure to global bonds can fully leverage those opportunities.
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