Vanguard, one of the largest investment managers in the world, announced today plans to launch Vanguard Baillie Gifford Global Positive Impact Stock Fund, expanding its lineup of ESG offerings with an impact investing fund, following a dual-mandate investment strategy targeting companies that can generate returns as well as positive social and/or environmental impact.

Vanguard also announced that following the launch, it will seek to adopt the Baillie Gifford Positive Change Equities Fund and combine it with the new impact fund. Launched in 2017, the Baillie Gifford fund invests in global high quality growth companies which can deliver positive social change areas including social inclusion, education, environment, resource needs, healthcare, quality of life, and addressing the needs of the world’s poorest populations.

Vanguard Chairman and CEO Tim Buckley, said:

“We’ll continue to thoughtfully expand our ESG lineup, introducing funds and ETFs with enduring investment merit that reflect clients’ needs and preferences. The new Global Positive Impact Stock Fund will tap Baillie Gifford’s significant expertise in fundamental equity research and impact analysis, helping our clients to achieve both their impact and investment goals.”

The combination, if approved by shareholders of the Baillie Gifford fund, will result in an expense ratio reduction of approximately 0.06% over the existing fund, with an estimated expense ratio of 0.59% for the new fund.

Andrew Telfer, Baillie Gifford Joint Senior Partner, said:

“We hope that this fund adoption will broaden access to impact investing at a very competitive cost. As a result, it should help to channel more capital towards companies driving positive change.”

Vanguard said that it has filed an initial registration statement for the fund with the U.S. Securities and Exchange Commission, and anticipates launching the fund in Q2 2022, followed by the adoption of the Baillie Gifford Positive Change Equities Fund, with the fund available for public investment in Q3.