#United States #Vanguard #Valley Forge #fixed income #Model Portfolios

Vanguard Introduces New Fixed Income Model Portfolios for Advisors

In a significant development for financial advisory services, Vanguard has announced the expansion of its dynamic asset allocation fixed income model portfolios. This new addition includes two innovative model portfolios: the Vanguard Fixed Income Capital Preservation and the Vanguard Fixed Income Active Total Return. Designed specifically for financial advisors, these portfolios aim to provide distinct strategies that can better serve clients’ investment needs.

Amma Boateng, Managing Director of Financial Advisor Services at Vanguard, highlighted the importance of fixed income in a diversified portfolio. She remarked, “Fixed income remains a cornerstone of a well-diversified portfolio, and with our newest launch of fixed income asset allocation models, we're giving financial advisors the tools to manage this essential component with precision and efficiency.” This reflects Vanguard's commitment to simplifying the investment process for advisors, allowing them to dedicate more time to building client relationships and growing their businesses.

Overview of the New Model Portfolios

The launch of these portfolios follows the introduction of Vanguard’s first fixed income models in May 2025, which included:

• - Vanguard Fixed Income Risk Diversification model portfolio, aiming to offer stability against equity market fluctuations.
• - Vanguard Fixed Income Total Return model portfolio, tailored for clients aiming for wealth accumulation.

Vanguard Fixed Income Capital Preservation

The Vanguard Fixed Income Capital Preservation model is designed with a focus on safeguarding capital while providing modest returns. It emphasizes minimizing volatility, catering to advisors whose clients prioritize maintaining financial security. This model intends to ensure that investors have access to their capital when they require it most, making it a reliable choice during uncertain economic periods.

Vanguard Fixed Income Active Total Return

On the other hand, the Vanguard Fixed Income Active Total Return model offers a blend of higher quality global bonds and high-yield bonds. This actively managed portfolio seeks to outperform passive benchmarks, catering to clients who are more tolerant of volatility in pursuit of higher returns. It empowers advisors to align investment strategies with their clients’ risk appetites and financial goals effectively.

Vanguard’s Expertise in Fixed Income

With $2.6 trillion in assets under management as of June 30, 2025, the Vanguard Fixed Income Group boasts substantial expertise in managing these complex portfolios. The team's differentiating approach to risk management, combined with competitive fees, has consistently yielded strong outcomes for investors over the long haul. As a testament to this success, statistics reveal that 92% of Vanguard's active fixed income funds outperformed their peers over a decade-long period ending June 30, 2025.

In enhancing advisors’ ability to navigate the fixed income landscape, Vanguard’s model portfolios allow them to concentrate more on client engagement and strategic decision-making. Research indicates that such an emphasis can lead to heightened client retention rates and overall satisfaction, as well as favorable referrals.

Conclusion

These latest additions to Vanguard’s model portfolio offerings not only bolster their already extensive lineup but also reaffirm the company's dedication to facilitating effective investment management for financial advisors. Vanguard's dynamic model portfolios serve as a tool for advisors looking to deliver exceptional value to their clients, providing diverse and effective solutions tailored to varying investment time horizons and risk profiles.

As one of the leading investment management firms globally, Vanguard continues to support millions of individual investors and financial intermediaries with a steadfast commitment to their success. For further details on Vanguard's fund offerings and investment strategies, visit their official website.