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Recently, Vanguard incorporated the Vanguard Total International Bond II Index Fund, a broadly diversified international bond index fund. The fund will provide Vanguard Target Retirement Funds, Vanguard Target Retirement Trusts, and Vanguard LifeStrategy Funds with international fixed income exposure, which will be the ultimate investors in the new investment venture.

The investment strategy of the new fund, as initially reported, reflects that of the Vanguard Total International Bond Index Fund and will actively seek to document the same benchmark. The Total International Bond II Index Fund will acquire new cash flows from the Target Retirement series and the LifeStrategy series, starting immediately. The current Total International Bond Index Fund holdings of the fund will change over time to the new fund in a tax-sensitive and prudent direction.

Kaitlyn Caughlin, Head of the Department of Portfolio Review at Vanguard, stated that this would facilitate Vanguard categorizing transaction fees generated by the fund.  These funds are produced by other investors in the Total International Bond Index Fund, something they expect to be in investors’ best interest.

In light of the significant market, fluctuations witnessed last year and, in an attempt to protect investors’ interests, Vanguard postponed the release until the market’s situation improved. In the Vanguard Target Retirement series and LifeStrategy series, the investment strategies, glide path, expense ratios, and asset allocations remain the same.

About Vanguard

Vanguard is among the most prominent investment management organizations worldwide. Vanguard handled $7.1 trillion in global assets as of December 31, 2020. Headquartered in Valley Forge, Pennsylvania, the company provides 423 funds worldwide to its more than 30 million investors.

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