Vanguard Partners with Scottish Firm to Enhance ESG Investment Offerings

Image via Vanguard.

Vanguard is partnering with Scottish firm Baillie Gifford to strengthen its growing environmental, social, and governance (ESG) investment offerings, writes Jeff Blumenthal for the Philadelphia Business Journal.

To introduce Vanguard Baillie Gifford Global Positive Impact Stock Fund, the investment giant has already filed an initial registration statement with the SEC. The fund offers a dual-mandate investment strategy in which portfolio managers focus on companies that will both generate returns and create a positive social and/or environmental impact.

The fund will launch in the second quarter of 2022 and will seek to adopt the existing Baillie Gifford Positive Change Equities Fund, pending shareholder approval. The combined fund is expected to become available for public investment before the end of the third quarter.

The two companies believe that the new fund will serve both existing and prospective investors, as it is expected to have lower shareholder costs. According to Vanguard, its estimated expense ratio of 0.59 percent will put the new fund in a favorable position regarding price, compared with similar funds in its category, which average a 1.49 expense ratio.

Read more about Vanguard in the Philadelphia Business Journal.