Vanguard is launching the firm’s first dynamic asset allocation fixed income model portfolios. Vanguard Fixed Income Risk Diversification and Vanguard Fixed Income Total Return join the firm’s lineup of model portfolios that provide financial advisors with access to broadly diversified, low-cost, and high-quality Vanguard-managed solutions. “Model portfolios empower financial advisors with streamlined investment manager research and ongoing portfolio construction and monitoring, so they can spend time on the things that really matter to their clients—like ensuring they’re meeting their investment goals,” said Brent Beardsley, Head of Advisor Solutions for Vanguard. Built to serve a variety of investment time horizons and risk profiles, Vanguard’s model portfolios support financial advisors’ portfolio construction needs so they can spend more time scaling their practice and deepening client relationships. Deeper client relationships lead to improved client loyalty and trust, according to Vanguard’s Advisor’s Alpha research, which can then assist with asset retention and referrals. Vanguard Fixed Income Risk Diversification and Vanguard Fixed Income Total Return model portfolios seek to outperform a market-capitalization-weighted benchmark—the Bloomberg U.S. Aggregate Index and Bloomberg U.S. Universal Index respectively—and allocations are recalibrated throughout the year to align with the Vanguard Capital Markets Model® (VCMM) 10-year forecasts. Vanguard’s Investment Strategy Group oversees the asset allocations for the models and Vanguard’s Fixed Income Group manages the fixed income funds included in each portfolio. The Vanguard Fixed Income Risk Diversification model portfolio features a weighted average expense ratio of 0.05% and is constructed for advisors and their clients in search of a highly diversified fixed income portfolio with exposure to global investment grade bonds intended to provide ballast against equity market volatility. Vanguard Fixed Income Total Return model portfolio is designed for advisors and clients seeking wealth accumulation and risk diversification from the fixed income sleeve of their portfolio. This model portfolio contains exposure to global investment grade and high yield bonds at a weighted average expense ratio of 0.08%.