Vanguard to align Global Balanced portfolio with sustainability criteria

The investment policy of the £235m fund will also be updated to reflect the incorporation of certain sustainability criteria to which the fund must adhere to.

A letter seen by Investment Week confirmed the changes will come into effect from 8 December.

In a letter to clients a platform warned that the changes may affect the value of the fund.

“As a result of the change to the investment policy, portfolio realignment costs will be incurred, which will be borne by the fund,” said Anthony Scammell, UK operations director of Quilter. “Vanguard do not consider the costs to be material.”

Vanguard expands ESG range with global corporate bond ETF

The fund manager believes the risk profile of the fund will not change, however, despite the realignment of holdings to make it more sustainable, according to Scammell.

The annual management charge of the fund has not changed.

Earlier this year, in a bid to further boost its sustainability credentials, Vanguard expanded its ESG ETF range with the launch of a global corporate bond UCITS vehicle, managed by the firm’s $1.7trn AUM fixed income group.

In December last year the firm made history as one of its equity index funds became the first ever to hold overf $1trn in assets.


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