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Vanguard to offer first active ESG fund

Asset management firm Vanguard has announced it will offer its first active environment, social and governance (ESG) fund from mid-2019.

The fund will be managed by Wellington Management Company, which aims to beat the FTSE All-World Index, a benchmark covering a majority of developed and emerging markets.
Wellington will select about 40 companies with long-standing ESG practices and is going to be responsible for related governance activities for the fund, such as integrating proxy voting and company engagements into the investment strategy, according to a company statement.

“Vanguard’s new Global ESG Select Stock fund is taking a distinctive approach to ESG investing, seeking long-term outperformance through the selection of companies that integrate leading ESG practices into their corporate strategies,” says Matthew Brancato, head of Vanguard’s Portfolio Review Group.