Vanguard has announced its plans to launch Vanguard Global Environmental Opportunities Stock Fund. The actively managed fund will hold a concentrated portfolio of companies that both are involved in the process of decarbonization and derive at least half of their revenue from activities deemed by the fund’s advisor to contribute positively to environmental change. The fund will be managed by Ninety One, an experienced active investment manager with a proven track record in environmental, decarbonization, and global investing.

“Vanguard has been thoughtful and deliberate in building out our ESG lineup by ensuring each new fund addresses investors’ enduring needs,” said Dan Reyes, head of Vanguard Portfolio Review Department. “We are confident that Ninety One’s differentiated approach to global ESG investing will add long-term value for risk-tolerant investors who have a preference for environmental investing.”

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Founded in 1991, Ninety One manages approximately $160 billion globally. The Global Environmental Opportunities Stock Fund takes a structured, research-driven approach to investing that targets companies seeking to accelerate the transition to a low-carbon world. Ninety One’s investment philosophy is cemented in the conviction that there are structural growth opportunities resulting from trends in regulation, technology, and consumer preferences, which are driving a multi-decade energy transition. The firm believes that companies that successfully navigate this transition are likely to create value for investors over the long term. This will be the first Vanguard fund advised by Ninety One.

The fund is designed for environmentally conscious investors who have a high tolerance for risk and want to augment a broadly diversified portfolio with a satellite position. The fund is expected to launch in the fourth quarter of 2022 with a competitive expense ratio of 0.75% for Investor Shares and 0.60% for Admiral Shares, compared with the industry average of 0.99% for similar funds. The fund’s minimum investments are $3,000 for Investor Shares and $50,000 for Admiral Shares.

Vanguard’s ESG lineup
Vanguard takes a disciplined, research-based approach to product development and has thoughtfully expanded its lineup of ESG funds, introducing funds and ETFs that exhibit enduring investment merit while addressing investors’ evolving preferences. The new fund will complement Vanguard’s existing ESG lineup, including its two existing actively managed ESG funds. The recently launched Vanguard Baillie Gifford Global Positive Impact Stock Fund is designed for clients who want a strategy that targets both investment and impact objectives. Vanguard Global ESG Select Stock Fund caters to clients who want to maximize returns while having greater exposure to companies with attractive ESG characteristics. Vanguard also offers exclusionary-screened index equity and fixed income ETFs for investors who want to avoid or reduce exposure to certain sectors or ESG risks in their portfolio.

Source: Vanguard