investment professionals

Vanguard's active fixed income advantage

Helping your firm succeed over the long run.

Overview

Overview

Collaborative culture and top talent. Disciplined risk-taking. A firm structure and scale that enable us to keep costs low. Over $2 trillion* in fixed income assets under management. These are just a few things that Vanguard can offer your firm to help clients reach their goals. Our consistent outperformance helps provide more income to clients, improve risk-adjusted returns, and preserve capital.

This site will take you inside our process and philosophy, and familiarize you with our people. You’ll also dive into relevant thought leadership and get introduced to some of our funds.

We share the same ambition: the best long-term client outcomes. Look around and see why.

*As of December 31, 2023

Process

Process

Vanguard’s active taxable fixed income funds follow a portfolio manager-driven process that uses both top-down inputs from the Senior Investment Committee (SIC) and Investment Strategy Group and bottom-up inputs from each specialized sector team. The Taxable Strategy Committee combines these inputs into a broad taxable investment strategy.

Portfolio managers (PMs) are responsible for using these inputs to establish a portfolio construction strategy for each fund or ETF, while sector analysts and traders own the execution, with PM oversight. Risk management and optimization are present throughout the process, and the SIC provides governance and oversight.

Our active taxable strategy is a team-based, portfolio manager-led process built on specialization, collaboration, and accountability.

Vanguard’s fixed income group follows a top-down and bottom-up investment process with three primary decision points. First, develop broad strategy. The Senior Investment Committee (SIC) provides top-down macro inputs and an investment strategy outlook that is formally updated every month. The Investment Strategy Group, particularly its macroeconomics team, provides other top-down inputs, including global outlooks on macroeconomics, fiscal and monetary policy, and long-term market returns. The rates and credit sector teams provide bottom-up inputs in the form of cross-sector relative value recommendations based on the team’s deep expertise and ongoing market surveillance and analysis. Second, tailor to portfolio type. Portfolio types include funds with similar primary exposures or designs – multisector, single sector, investment-grade credit, and government – and these funds’ and ETFs’ strategies are discussed and updated together. Third, construct individual portfolio. Named portfolio managers (PM), in collaboration with senior credit research analysts and risk managers, distill and apply the portfolio strategy to a portfolio construction plan for each individual fund and ETF. The PM would communicate this plan to the investment-grade corporates sector team which would put it into action.
People and performance

People and performance1

For more than 40 years, Vanguard Fixed Income Group has distinguished itself with deep investment capabilities, disciplined security selection processes, and rigorous risk management techniques, resulting in consistent, long-term outperformance.

We are a highly credentialed and experienced team of nearly 200 professionals, with more than 110 CFA Charterholders and nearly 90 graduate degree holders. Our portfolio managers and analysts have, on average, 21 and 19 years of experience, respectively.

Within the Fixed Income Group, Sara Devereux, Vanguard Principal and Global Head of Fixed Income, leads teams with deep sector expertise and significant experience across credit research, trading, and portfolio management functions.

While we’re well-known as an indexing pioneer and powerhouse, our roots are in active management. Below reflects people and performance numbers for our active fixed income capabilities.

$219B

Taxable bond AUM
19 funds/ETF

$208B

Municipal bond AUM
5 national funds/7 state-specific funds

25+

Portfolio managers

35+

Traders

60+

Credit research
analysts

130+

Active team members

95%

Outperformed peer averages in 10 years2

85%

Outperformed peer averages in 5 years2

1 All data as of December 31, 2023.

2 For the one-year period, 43 of 57 Vanguard active bond funds outperformed their peer group averages. For the three-year period, 35 of 54 Vanguard active bond funds outperformed their peer-group averages. For the five-year period, 46 of 54 Vanguard active bond funds outperformed their peer-group averages. For the ten-year period, 42 of 44 Vanguard active bond funds outperformed their peer-group averages. All data as of December 31, 2023. Results will vary for other time periods. Only funds with a minimum one-, three-, five-, or ten-year history, respectively, were included in the comparison. Source: Lipper, a Thomson Reuters Company. Note that the competitive performance data shown represent past performance, which is not a guarantee of future results, and that all investments are subject to risks. View most recent fund performance. View most recent fund performance

Sara Devereux
Principal, Global Head of Fixed Income Group

Sara Devereux

Sara Devereux

Principal, Global Head of Fixed Income Group

  • Years in investment industry: 31*
  • Years at Vanguard: 4*
  • Education:
    • B.S., University of North Carolina at Chapel Hill
    • M.B.A., The Wharton School of the University of Pennsylvania
  • Additional roles: Chair of the senior investment strategy team for Vanguard’s actively managed fixed income portfolios and a member of the firm’s Global Investment Committee
  • Prior experience:
    • Goldman Sachs: Mortgage-backed securities and structured products trading and sales
    • HSBC: Risk management advisory and interest rate derivatives structuring
    • AXA Equitable Life Insurance: Actuary

*As of September 30, 2023

Christopher Alwine
CFA, Principal, Global Head of Credit

Christopher Alwine

Christopher Alwine

CFA, Principal, Global Head of Credit

  • Current specialty: Taxable bond market
  • Years in investment industry: 33*
  • Years at Vanguard: 33*
  • Education:
    • B.B.A., Temple University
    • M.S., Drexel University
  • Additional roles: Member of the senior investment committee at Vanguard that is responsible for developing macro strategies for the firm’s internally managed active fixed income funds
  • Prior experience:
    • Trading, credit research, and portfolio management in both taxable and municipal markets, as well as active and index funds

*As of September 30, 2023

Roger Hallam
CFA, Global Head of Rates

Roger Hallam

Roger Hallam

CFA, Global Head of Rates

  • Current specialty: Taxable bond market
  • Years in investment industry: 23*
  • Years at Vanguard: 1*
  • Education:
    • B.S., University of Warwick
  • Additional roles: Member of the Vanguard Senior Leadership team and the Senior Investor team
  • Prior experience:
    • J.P. Morgan Asset Management: Senior global fixed income portfolio manager, chief investment officer for currencies

*As of September 30, 2023

Paul Malloy
CFA, Head of Municipals

Paul Malloy

Paul Malloy

CFA, Head of Municipals

  • Current specialty: Municipal bond market
  • Years in investment industry: 18*
  • Years at Vanguard: 18*
  • Education:
    • B.S., Saint Francis University
    • M.B.A., Wharton School of the University of Pennsylvania
  • Prior experience:
    • Head of Vanguard Fixed Income Group, Europe, and other various portfolio management positions in Vanguard's offices in the U.K. and U.S.
    • Managed Vanguard's U.S. fixed income ETFs and index mutual funds

*As of September 30, 2023

Arvind Narayanan
CFA, Portfolio Manager and Head of Investment-Grade Corporates

Arvind Narayanan

Arvind Narayanan

CFA, Portfolio Manager and Head of Investment-Grade Corporates

  • Current specialty: Taxable bond market
  • Years in investment industry: 22*
  • Years at Vanguard: 4*
  • Education:
    • B.A., Goucher College
    • M.B.A., New York University's Stern School of Business
  • Prior experience:
    • State Street Global Advisors: Managing director, head of investment-grade credit
    • GE Asset Management: Senior vice president and portfolio manager for investment-grade credit; head trader for fixed income; portfolio manager-structured products

*As of September 30, 2023

Daniel Shaykevich
Portfolio Manager and Head of Emerging Markets

Daniel Shaykevich

Daniel Shaykevich

Portfolio Manager and Head of Emerging Markets

  • Current specialty: Taxable bond market
  • Years in investment industry: 22*
  • Years at Vanguard: 10*
  • Education:
    • B.S., Carnegie Mellon University
  • Prior experience:
    • BlackRock: Emerging market debt in dedicated and crossover portfolios; alternative investments

*As of September 30, 2023

Brian Quigley
CFA, Portfolio Manager and Head of MBS and Agencies

Brian Quigley

Brian Quigley

CFA, Portfolio Manager and Head of MBS and Agencies

  • Current specialty: Taxable bond market
  • Years in investment industry: 21*
  • Years at Vanguard: 21*
  • Education:
    • B.S., Lehigh University

*As of September 30, 2023

Michael Chang
CFA, Portfolio Manager and Head of High-Yield

Michael Chang

Michael Chang

CFA, Portfolio Manager and Head of High-Yield

  • Current specialty: Taxable bond market
  • Years in investment industry: 23*
  • Years at Vanguard: 6*
  • Education:
    • B.Com., University of British Columbia
  • Prior experience:
    • Goldman Sachs: Portfolio manager across several non-investment grade portfolios, senior credit analyst, head bank loan trader
    • PIMCO and Deutsche Bank: Credit analyst, bank loan trader

*As of September 30, 2023

Mauro Favini
Emerging Markets Portfolio Manager

Mauro Favini

Mauro Favini

Emerging Markets Portfolio Manager

  • Current specialty: Taxable bond market
  • Years in investment industry: 15*
  • Years at Vanguard: 6*
  • Education:
    • B.A., Hunter College
  • Prior experience:
    • Marathon Asset Management: Portfolio manager focused on absolute return and long-only strategies

*As of September 30, 2023

David Van Ommeren
Portfolio Manager and Head of Structured Products

David Van Ommeren

David Van Ommeren

Portfolio Manager and Head of Structured Products

  • Current specialty: Taxable bond market
  • Years in investment industry: 32*
  • Years at Vanguard: 32*
  • Education:
    • B.S., Temple University
    • M.S., Drexel University
  • Prior experience:
    • Led Vanguard's Global Operational Risk team within Investment Management, responsible for teams in the U.S., U.K., and Australia

*As of September 30, 2023

John Madziyire
CFA, Portfolio Manager and Head of U.S. Treasuries and TIPS

John Madziyire

John Madziyire

CFA, Portfolio Manager and Head of U.S. Treasuries and TIPS

  • Current specialty: Taxable bond market
  • Years in investment industry: 22*
  • Years at Vanguard: 6*
  • Education:
    • B.Com, University of Cape Town
    • Post-graduate, University of Cape Town
  • Prior experience:
    • AXA Investment Managers: Portfolio manager across U.K., Euro, and Global government bond portfolios
    • Legal and General Investment Management: Assistant fund manager and risk analyst

*As of September 30, 2023

Sarang Kulkarni
CFA, European Credit Portfolio Manager

Sarang Kulkarni

Sarang Kulkarni

CFA, European Credit Portfolio Manager

  • Current specialty: Taxable bond market
  • Years in investment industry: 21*
  • Years at Vanguard: 8*
  • Education:
    • B.S., University of Bombay
    • Post-graduate diploma, Indian Institute of Management—Calcutta
  • Prior experience:
    • Schroders Investment Management: Co-lead manager of investment-grade, high-yield, and emerging market debt global credit funds
    • Aerion Fund Management: Senior portfolio manager
    • Peregrine Capital: Corporate financier
    • Anderson Corporate Finance: Created innovative debt financing solutions for infrastructure, utilities, and acquisition financing sectors

*As of September 30, 2023

Justin Schwartz
CFA, Portfolio Manager and Head of Municipal Money Markets

Justin Schwartz

Justin Schwartz

CFA, Portfolio Manager and Head of Municipal Money Markets

  • Current specialty: Municipal bond market
  • Years in investment industry: 19*
  • Years at Vanguard: 19*
  • Education:
    • B.S., University of Richmond

*As of September 30, 2023

Adam Ferguson
CFA, Municipal Portfolio Manager

Adam Ferguson

Adam Ferguson

CFA, Municipal Portfolio Manager

  • Current specialty: Municipal bond market
  • Years in investment industry: 19*
  • Years at Vanguard: 19*
  • Education:
    • B.S., Wilmington University
  • Prior experience:
    • Co-leading Vanguard’s high-yield investment team

*As of September 30, 2023

Stephen McFee
CFA, Municipal Portfolio Manager

Stephen McFee

Stephen McFee

CFA, Municipal Portfolio Manager

  • Current specialty: Municipal bond market
  • Years in investment industry: 18*
  • Years at Vanguard: 18*
  • Education:
    • B.A., East Stroudsburg University
    • M.S., Saint Joseph's University
  • Prior experience:
    • Municipal bond trader

*As of September 30, 2023

Mathew Kiselak
CFA, Head of Long-Term Municipal Portfolio Management

Mathew Kiselak

Mathew Kiselak

CFA, Head of Long-Term Municipal Portfolio Management

  • Current specialty: Municipal bond market
  • Years in investment industry: 36*
  • Years at Vanguard: 13*
  • Education:
    • B.A., Pace University
  • Prior experience:
    • Wells Fargo Capital Management: Senior portfolio manager
    • Evergreen: Director of municipals
    • Nations Fund: Senior portfolio manager

*As of September 30, 2023

James D’Arcy
CFA, Municipal Portfolio Manager

James D’Arcy

James D’Arcy

CFA, Municipal Portfolio Manager

  • Current specialty: Municipal bond market
  • Years in investment industry: 28*
  • Years at Vanguard: 12*
  • Education:
    • B.A., University of Colorado, Boulder
  • Prior experience:
    • Columbia Management: Senior portfolio manager

*As of September 30, 2023

Grace Boraas
Portfolio Manager

Grace Boraas

Grace Boraas

Portfolio Manager

  • Current specialty: Municipal bond market
  • Years in investment industry: 18*
  • Years at Vanguard: 10*
  • Education:
    • B.S., Stetson University
  • Prior experience:
    • Income Research and Management: Municipal bond trader, risk management and portfolio construction analyst

*As of September 30, 2023

Philosophy

Philosophy

Our investment edge is defined by three pillars:

  1.  A specialized yet collaborative team that enables the best investment opportunities to be identified and efficiently deployed across our portfolios.
  2.  A focus on generating alpha across a variety of repeatable, scalable strategies rather than primarily relying on concentrated positions.
  3.  A thoughtful approach to risk-taking, enabled by our cost advantage, in which our team is not forced to take undue risk just to deliver net alpha to our investors.
Funds

Funds

 

See the Vanguard advantage

Our experts have a rigorous and time-tested approach to active bond fund management.

Fund literature

Download product summaries.

DOWNLOAD

  • VUSB Ultra-Short Bond ETF

  • VGCAX Global Credit Bond Fund

  • VEGBX Emerging Markets Bond Fund

  • VMSAX Multi-Sector Income Bond Fund

Fixed income insights

Fixed income insights

Have questions about active fixed income? Contact us.

Disclosures

All investing is subject to risk, including the possible loss of the money you invest.

Diversification does not ensure a profit or protect against a loss.
Be aware that fluctuations in the financial markets and other factors may cause declines in the value of your account. There is no guarantee that any particular asset allocation or mix of funds will meet your investment objectives or provide you with a given level of income. Past performance is not a guarantee of future results.

International investing is subject to additional risks, including the possibility that returns will be hurt by a decline in the value of foreign currencies or by unfavorable developments in a particular country or region.

Stocks and bonds of issuers based in emerging markets are subject to national and regional political and economic risks and to the risk of currency fluctuations. These risks are especially high in emerging markets.

Bond funds are subject to the risk that an issuer will fail to make payments on time, and that bond prices will decline because of rising interest rates or negative perceptions of an issuer's ability to make payments.

U.S. government backing of Treasury or agency securities applies only to the underlying securities and does not prevent share-price fluctuations. Unlike stocks and bonds, U.S. Treasury bills are guaranteed as to the timely payment of principal and interest.

High-yield bonds generally have medium- and lower-range credit-quality ratings and are therefore subject to a higher level of credit risk than bonds with higher credit-quality ratings.