For UK financial advisers only, not approved for use by retail customers

Vanguard launches sustainable active funds

  •  The launch includes the introduction of the Vanguard SustainableLife range consisting of three actively managed multi-asset sustainability funds providing a core portfolio solution for investors.
  • The Vanguard Global Sustainable Equity Fund is an actively managed fund which incorporates sustainability criteria to better align with investor values and help reduce exposure to ESG-related risks.
  • All four sustainable active funds are available at an ongoing charges figure (OCF) of 0.48%, and complement Vanguard’s existing range of ESG index funds and ETFs.

Vanguard today announces the launch of four sustainable actively managed funds, designed for investors aiming to achieve sustainable returns, in a manner that aligns with their values.

The new Vanguard SustainableLife range is a set of three all-in-one sustainable multi-asset portfolios consisting of the Vanguard SustainableLife 40-50% Equity Fund, the Vanguard SustainableLife 60-70% Equity Fund, and the Vanguard SustainableLife 80-90% Equity Fund. The funds invest in equities and bonds from around the world and are designed as a core solution for investors looking to generate sustainable long-term growth. They carry an ongoing charges figure (OCF) of 0.48%.

Vanguard takes a deliberate and thoughtful approach to product development, partnering with some of the world’s best managers to offer a curated range of actively managed portfolios.

In line with this approach, the Vanguard SustainableLife range will be managed by Wellington Management Company LLP (“Wellington”), a world-class leader in integrating ESG considerations into its investment processes.

The Vanguard SustainableLife range is managed according to a strict investment philosophy, which considers not just the investment potential, but also the environmental, social and governance characteristics of each company the funds invest in. Central to this approach are four sustainability principles, namely, a commitment to net zero emissions by 2050 in alignment with the Paris agreement, exclusion of companies that may have a negative impact on society and the environment (e.g., thermal coal, tar sands, tobacco), engagement with portfolio companies on material ESG issues, and the requirement for companies to follow good governance practices as a precondition for investment.

The Vanguard Global Sustainable Equity Fund

In addition, for investors looking to invest in companies with a sustained track record of strong returns and exemplary stewardship, Vanguard today launches the Vanguard Global Sustainable Equity Fund. This actively managed equity fund provides UK investors with exposure to global companies, while actively incorporating sustainable investment criteria to better align with investor values and help reduce ESG-related risks. The fund is also managed by Wellington, has a commitment to net zero emissions by 2050 and carries an OCF of 0.48%. 

Fong Yee Chan, Head of ESG Strategy, Europe, Vanguard, said, “Today’s launch represents our commitment to helping investors balance their personal values with their financial goals as interest in sustainable investing continues to grow. At Vanguard, we integrate ESG considerations into our investment processes and product design in three key ways. We engage with the companies in which we invest through our investment stewardship activities. We offer funds that allow investors to avoid certain ESG risks, and, thirdly, we allocate capital to companies based on certain sustainability criteria in our new actively managed funds, with the aim to outperform the market.” 

Longstanding active management expertise

Vanguard’s actively managed mutual funds and ETFs globally represent $1.8 trillion across traditional active equity, bond, quantitative and balanced assets as at 31 October 2021. The firm has more than 45 years of experience in selecting and partnering with active managers and currently partners with 25 of the world’s top asset managers to oversee a full roster of active mandates. Vanguard’s approach is rooted in an adherence to consistent, repeatable processes over time and a long-term perspective, which is critical to achieving long-term success in active management.

Vanguard’s fund range for environmentally and socially aware investors consists of the funds and ETFs below. The funds are available through Vanguard UK Personal Investor (www.vanguardinvestor.co.uk), retail investment platforms and via financial advisers and wholesale intermediaries.

 

Fund Name Strategy   Domicile   OCF
Vanguard SustainableLife 40-50% Equity Fund Active U.K. 0.48%
Vanguard SustainableLife 60-70% Equity Fund Active U.K. 0.48%
Vanguard SustainableLife 80-90% Equity Fund Active U.K. 0.48%
Vanguard Global Sustainable Equity Fund Active U.K. 0.48%
Vanguard ESG Developed World All Cap Equity Index Fund (UK) Index U.K. 0.20%
Vanguard ESG Developed World All Cap Equity Index Fund Index Ireland 0.20%
Vanguard ESG Emerging Markets All Cap Equity Index Fund Index Ireland 0.25%
Vanguard ESG Global All Cap UCITS ETF Index Ireland 0.24%
Vanguard SRI European Stock Fund Index Ireland 0.14%
Vanguard ESG Global Corporate Bond UCITS ETF Index Ireland 0.15%

 

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