Vanguard preps global environmental fund

The active fund will be managed by Ninety One

Vanguard is preparing to launch an actively managed mutual fund that will invest primarily in “environmental companies,” according to a regulatory filing made last week.

The financial giant’s Vanguard Global Environmental Opportunities Stock Fund could go live as soon as November 2 and will be subadvised by Ninety One North America, a subsidiary of the similarly named UK-based firm.

The forthcoming fund will hold about 25 global companies in its portfolio, including those the adviser finds contribute “positively to environmental change.” That is determined by “mapping such company’s revenues to certain industry sub-sectors … aligned to the process of decarbonization,” the initial prospectus states. Those holdings can be related to renewable energy, electrification and resource efficiency, but are not limited to them.

The fund will come in Vanguard’s investor and admiral shares, which have total annual fees of 75 basis points and 60 bps, respectively.

Portfolio managers for the fund will be Ninety One’s Deirdre Cooper and Graeme Baker, according to the filing.