Vanguard hired a Morgan Stanley portfolio manager to accelerate the expansion of its actively managed fund lineup. The move strengthens the firm's fixed-income capabilities as it challenges established bond-picking incumbents like Pimco.
The firm is pivoting from its traditional focus on passive index funds to grow its active bond management division. Vanguard aims to exploit market complexities and inefficiencies to generate alpha for investors.
This strategy includes developing new internal capabilities and launching several active bond ETFs. The firm continues to recruit specialized talent to compete in the active fixed-income space.