VALLEY FORGE, PA (August 16, 2022)—Vanguard today 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.”
Founded in 1991, Ninety One manages approximately $160 billion globally.1 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.2 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.
Founded in 1975, Vanguard is one of the world's leading investment management companies. The firm offers investments, advice, and retirement services to individual investors, institutions, and financial professionals. Vanguard operates under a unique, investor-owned structure where Vanguard fund shareholders own the funds, which in turn own Vanguard. As such, Vanguard adheres to a simple purpose: To take a stand for all investors, to treat them fairly, and to give them the best chance for investment success. For more information, visit vanguard.com.
1 Data as of June 30, 2022.
2 Sources: Morningstar, Vanguard.
Registration statements relating to Vanguard Global Environmental Opportunities Stock Fund have been filed with the Securities and Exchange Commission (SEC) but have not yet become effective. The SEC has not approved or disapproved these securities or passed upon the adequacy of either fund’s preliminary prospectus. Any representation to the contrary is considered a criminal offense. These securities may not be sold nor may offers to buy be accepted prior to the time the registration statements become effective. This communication shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of, these securities in any state in which such offer, solicitation, or sale would be unlawful prior to registration or qualification under the securities laws of any such state.
For more information about Vanguard funds, visit vanguard.com to obtain a prospectus or, if available, a summary prospectus. Investment objectives, risks, charges, expenses, and other important information about a fund are contained in the prospectus; read and consider it carefully before investing.
All investing is subject to risk, including the possible loss of the money you invest. Diversification does not ensure a profit or protect against a loss.
ESG funds are subject to ESG investment risk, which is the chance that the stocks or bonds screened by the index provider for ESG criteria generally will underperform the market as a whole or, in the aggregate, will trail returns of other funds screened for ESG criteria. The index provider’s assessment of a company, based on the company’s level of involvement in a particular industry or the index provider’s own ESG criteria, may differ from that of other funds or of the advisor’s or an investor’s assessment of such company. As a result, the companies deemed eligible by the index provider may not reflect the beliefs and values of any particular investor and may not exhibit positive or favorable ESG characteristics. The evaluation of companies for ESG screening or integration is dependent on the timely and accurate reporting of ESG data by the companies. Successful application of the screens will depend on the index provider’s proper identification and analysis of ESG data. The advisor may not be successful in assessing and identifying companies that have or will have a positive impact or support a given position. In some circumstances, companies could ultimately have a negative impact, or no impact.
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