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Vanguard - Investment strategy and policy
Personal Investors

Strategy and policy

Investment strategy

The portfolio invests in Vanguard High-Yield Corporate Fund, which invests mainly in a diversified group of low-quality, high-risk corporate bonds, commonly referred to as “junk bonds.” The fund invests at least 80% of its assets in corporate bonds that are rated below “Baa” by Moody’s Investors Services, Inc., or below “BBB” by Standard & Poor’s Corporation. In addition, not more than 20% of the fund’s assets may be invested, in the aggregate, in the following types of securities: bonds that are rated less than “B” or that are unrated, convertible securities, and preferred stocks. 

Investment policy

The portfolio invests in a Vanguard fund, which follows its own investment policies.

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