Vanguard, one of the largest investment managers in the world, announced plan to launch the Vanguard Global Environmental Opportunities Stock Fund, investing in companies seeking to accelerate the transition to a low-carbon world.
According to Vanguard, the fund is targeted at “environmentally conscious investors who have a high tolerance for risk,” seeking to augment a broadly diversified portfolio.
The new fund will be Vanguard’s first to be managed by active asset manager Ninety One. In a press release announcing the new fund, the companies said:
“Ninety One’s investment philosophy is cemented in the conviction that there are structural growth opportunities resulting from trends in regulation, technology, and consumer preferences, which are driving a multi-decade energy transition. The firm believes that companies that successfully navigate this transition are likely to create value for investors over the long term.”
Anticipated to launch in Q4 2022, the new fund will hold a concentrated portfolio of companies that are involved in the process of decarbonization and that derive at least half of their revenue from activities contributing positively to environmental change.
The new fund follows the launch earlier this summer of Vanguard’s first actively managed impact fund, the Vanguard Baillie Gifford Global Positive Impact Stock Fund.
Dan Reyes, head of Vanguard Portfolio Review Department, said:
“Vanguard has been thoughtful and deliberate in building out our ESG lineup by ensuring each new fund addresses investors’ enduring needs. We are confident that Ninety One’s differentiated approach to global ESG investing will add long-term value for risk-tolerant investors who have a preference for environmental investing.”