In an effort to offer a low-volatile option for defined benefit plans, Vanguard will launch an Extended Duration Treasury Index Fund, tied to the Lehman Brothers Treasury STRIPS 20-25 Year Equal Pay Bond Index.
“We have witnessed a sea change in how our clients are managing defined benefit plans as a result of the Pension Protection Act of 2006,” said Vanguard Chairman and Chief Executive Officer John J. Brennan. “Long-duration bond portfolios can be an important part of an overall solution for pension plans seeking to balance their portfolio risk to pension liabilities.”
