Vanguard Australia has unveiled new environmental, social and governance (ESG) funds in response to growing investor demand for investment opportunities that are in line with their values.
The Vanguard Ethically Conscious International Shares Index Fund and the Ethically Conscious Global Aggregate Bond Index Fund will offer investors access to broadly diversified international equities and international fixed income exposures that exclude fossil fuel reserves, alcohol, tobacco, gambling, weapons, nuclear power and adult entertainment.
The new managed funds are available now and will be offered as exchange-traded funds (ETF) from September.
The Vanguard Ethically Conscious Global Aggregate Bond Index Fund (Hedged) and the ETF cover exposure to over 18,000 fixed income securities in major developed and emerging countries.
The fund will be available at 0.28 per cent for the managed fund and 0.26 per cent for the ETF.
The managed fund offerings will provide both hedged and unhedged options.
Vanguard Australia head of product and marketing Evan Reedman said the investment manager was committed to offering greater choice to investors while maintaining broad diversification at a low cost.
“We understand that some investors want products that allow them to achieve their investment objectives while also investing in line with their values,” Reedman noted.
“We are pleased to be offering ESG equities and fixed income funds that meet this need while maintaining the low-cost and broad diversification hallmarks of Vanguard.”
The funds add to the manager’s existing ESG offering, joining the Vanguard International Shares Select Exclusions Index Fund, launched in November 2016.
“We have been offering screened ESG products internationally for almost 20 years and are excited we are able to provide more choice for Australian investors while leveraging our global scale and investment management expertise,” Reedman said.
The Ethically Conscious International Shares Index Funds track the FTSE Developed ex-Australia ex-Non-Renewable Energy/Vice Products/Weapons Index.
The Ethically Conscious Global Aggregate Bond Index Funds track the Bloomberg Barclays MSCI Global Aggregate ex-SRI Exclusions Index, hedged to Australian dollars.
The new products bring the total number of Vanguard fund offerings to 76, including 26 ETFs.
