Vanguard Launches Fund for LDI Strategy

December 10, 2007 ( - The Vanguard Extended Duration Treasury Index Fund, a low-cost fund designed for pension plans that follow a liability-driven investing strategy, has begun accepting investments, Vanguard announced.

Institutional investors can purchase shares of the fund directly from Vanguard, or can purchase the Vanguard Extended Duration Treasury ETF, which began trading on the American Stock Exchange under the ticker EDV.

The Vanguard Extended Duration Treasury Index Fund seeks to match the performance of the Lehman Brothers Treasury Strips 20-30 Year Equal Par Bond Index, and has a duration generally ranging from 22 to 27 years, the announcement said. The fund was specifically designed for institutions and pension plan providers who are seeking to balance their portfolio assets to pension liabilities.

The new fund is managed by Vanguard Fixed Income Group.