Sustainable Finance

Vanguard Expands its ESG Lineup, Launches Impact Investing Equity Fund

Published on: 21 January 2022 09:40 AM
by KnowESG

A Brief Summary

Vanguard, one of the world's largest asset managers, announced today that it would launch the Vanguard Baillie Gifford Global Positive Impact Stock Fund, expanding its ESG offerings with an impact investing fund. The fund will follow a dual-mandate investment strategy, focusing on companies that can generate both financial returns and positive social and environmental impact.

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Following the introduction, Vanguard said it would look to adopt the Baillie Gifford Positive Change Equities Fund and merge it with the new impact fund. The Baillie Gifford fund, which was launched in 2017, invests in global high-quality growth companies that can deliver positive social change in areas such as social inclusion, education, the environment, resource needs, healthcare, quality of life, and meeting the needs of the world's poorest people.

If shareholders of the Baillie Gifford fund accept the merger, it will result in a 0.06 percent expense ratio decrease over the present fund, with an expected expense ratio of 0.59 percent for the new fund.

Vanguard said it has filed an initial registration statement with the Securities and Exchange Commission for the fund, and it plans to debut it in Q2 2022, followed by the adoption of the Baillie Gifford Positive Change Equities Fund, which will be accessible for public investment in Q3.