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VMSIX / VMSAX is a newer low-cost (10/2021- ; ER 0.40%/0.30%) multisector bond fund from VG. It had restricted availability so far and had a bad 2022, like other multisector bond funds. The AUM is $22.5 million only and the data on it are sparse. Now that it will be generally available, its AUM may pick up. It would need a longer record for comparison with FADMX, PONAX / PIMIX, etc.
VMSAX is managed by several members of Vanguard's Fixed Income Group:
Daniel Shaykevich, Arvind Narayanan, and Michael Chang.
Some other funds managed by these folks are listed below.
Daniel Shaykevich and Arvind Narayanan (plus Brian Quigley and Samuel Martinez)
Daniel Shaykevich, Arvind Narayanan, and Michael Chang (plus Brian Quigley)
Daniel Shaykevich and Arvind Narayanan (plus Samuel Martinez)
Daniel Shaykevich (plus Mauro Favini)
A couple of oddities about the Vanguard fund:
- Vanguard doesn't show its annual report on the fund page
(You can find it at the SEC here; search for multi-sector)
- On the page linked to by Yogi, the fund is described as " investing in 3 different sector allocations (IG, HY, and EM)"; developed markets aren't mentioned.
-- Contrast this with FADMX. Prospectus says: "four general investment categories: high yield securities, U.S. Government and investment-grade securities, emerging market securities, and foreign developed market securities.".
-- Or PONAX, whose prospectus speaks of investing in debt located "in the United States and non-U.S. countries, including emerging market countries."
FWIW, FADMX's foreign holdings are about 3/4 EM, 1/4 DM, while VMSIX's are split pretty evenly between EM and DM.
After having funds in core, core-plus, HY, EM bond categories, a multisector bond fund is the next step, as noted by @Observant1. I will just watch it for now as I do have Vanguard accounts.
@msf, I see the website showing foreign as 9.1% (total 52.7% investment-grade). May be the promos just highlighted IG, HY and EM.
The latest SEC filings (including monthly filings) go only through September. Looking at the annual report (with Sept data), only 75% of the portfolio was domestic, so 25% was foreign. A reallocation of over 15% of the portfolio (from foreign to domestic) in three months - from Sept to Dec - would be quite substantial.
More likely Vanguard is counting only ex-US sovereign debt as foreign debt and counting all other foreign debt (such as Air Canada and Credit Suisse AG) in various other buckets of corporate bonds.
Counting this way, it does look like 100% of Vanguard's "foreign" (i.e. sovereign) debt is EM. In Sept. that was 9.7% of the fund's portfolio (vs. 9.1% in Dec.).
Contrast that with the clear breakdown Fidelity gives for FADMX, where foreign corporate debt still counts as foreign debt: I generally assume that promo material borrows from legal filings - companies risk suits if they deviate. What the VG prospectus says is: While the wording doesn't say that this list is exhaustive ("bonds which include ...."), developed market debt is conspicuous by its absence. The odd wording is consistent with not considering corporate foreign debt to be foreign debt.