NextBillion - An Initiative of the William Davidson Institute at the University of Michigan

Monday, March 11, 2019

By Vicky Ge Huang

Vanguard is planning to launch its first actively-managed ESG fund, the Vanguard Global ESG Select Stock fund, which will be subadvised by Wellington Management Company.

The fund will charge 0.55% and 0.45% in operating expenses for Investor shares and Admiral shares, respectively. It will be managed by Wellington’s Mark D. Mandel and Yolanda C. Courtines.

Benchmarked against the FTSE All-World index, the fund will have a concentrated portfolio of approximately 40 companies that the managers believe ‘demonstrate exemplary long-standing ESG practices, have strong business fundamentals and management teams with proven track records of good capital allocation decisions for shareholders.’

In addition to managing the fund, Wellington Management will also be responsible for all governance activities such as proxy voting and company engagements for the fund.

Photo courtesy of GotCredit.