Vanguard is expanding its range of socially responsible investing with the Vanguard Global ESG Select Stock Fund, a new active equity fund run by Wellington Management that should launch later this year, writes Erin Arvedlund for the Philadelphia Inquirer.
ESG funds are focused on environmental, social, and governance issues. The fund will be different from the Malvern-based investment giant’s existing index-based ESG choices as it will have an active portfolio strategy.
“Vanguard’s new Global ESG Select Stock Fund is taking a distinctive approach to ESG investing,” said Matthew Brancato, head of Vanguard’s portfolio review group. It “seeks out long-term out-performance through companies that integrate leading ESG practices into their corporate strategies.”
Vanguard’s Global ESG Select Stock will complement its existing ESG International Stock and ESG U.S. Stock ETFs, along with the Vanguard FTSE Social Index.
With the new fund, Wellington Management aims to outdo the FTSE All-World Index, which holds around 40 companies with “exemplary long-standing ESG practices.”
Another key feature is that the investment giant will not oversee its governance. Instead, any potentially controversial proxy voting and company engagements will be handled by Wellington.
Read more about Vanguard in the Philadelphia Inquirer here.