Vanguard High-Yield Corporate Fund

[roi2020]

Supplement Dated July 31, 2023, to the Prospectus and Summary Prospectus Dated May 25, 2023

Important Changes to Vanguard High-Yield Corporate Fund (the Fund)
Effective immediately, Michael L. Hong will no longer serve as a co-portfolio manager
of Wellington Management Company LLP’s (Wellington Management) portion of the Fund.
Elizabeth H. Shortsleeve will continue to manage Wellington Management’s portion of the Fund.
The Fund’s investment objective, strategies, and policies remain unchanged.
Link

[yogibearbull]

M* has put VWEHX / VWEAX on review due to sudden manager change. The new manager has been an analyst for years, been a manager of an analyst group, but has no prior experience with fund management except for a short overlap with the departing manager.

Vanguard has also developed in-house bond capabilities. Its new multisector bond VMSIX / VMSAX is managed entirely in-house. So, it isn't surprising that a sleeve (about 1/3rd) of VWEHX / VWEAX is also managed internally.

[roi2020]

"A Wellington spokesperson said that while Hong is stepping off the fund, he ‘is not leaving Wellington.’"

"'It has been anticipated that Liz would expand her portfolio management abilities and eventually assume full responsibility for the fund,’ the spokesperson said.
‘While Michael no longer manages high yield portfolios for Vanguard, he continues to be a valued resource for Liz and he continues as a portfolio manager
on Wellington’s high yield team.’"

"Jeff DeMaso, who writes The Independent Vanguard Adviser newsletter, said he didn’t believe the change was any reason to sell.
‘Any manager departure is a yellow flag, but I don’t expect any change to the strategy or approach at High-Yield Corporate,’ DeMaso wrote Monday in a note.
‘Plus, the fund is still in good hands: Wellington is a deeply talented firm, and Vanguard’s active bond team doesn’t get the credit I think they deserve.’"

Link (may be paywalled)