Rising to the sustainability challenge
Vanguard has been offering multi-asset solutions in conjunction with Wellington since 1975 and today manages more than £1 trillion1 for multi-asset investors around the world. SustainableLife funds of this range are designed for investors who prefer active management and want to prioritise sustainability.
1 Source: Vanguard. Data as at 30 June 2023.
Why SustainableLife?
Sustainable
Incorporates sustainability criteria, including a net zero commitment, helping to build a long-term competitive advantage that delivers sustainable returns.
Active
Provides an actively managed all-in-one portfolio of equities and bonds that is highly diversified across geographies, sectors and investment styles.
Proven expertise
Vanguard and Wellington have a long history in multi-asset investing. Wellington's expertise in multi-asset investing dates back to 1929.
Low-cost
The Ongoing Charges Figure of the SustainableLife range is 0.48%2, which is significantly below the 1.1% average expense ratio of the Investment Association peer group3, meaning that sustainability and active management don't have to cost more.
2 Source: Vanguard. The Ongoing Charges Figure (OCF) covers the fund manager’s costs of managing the fund. It does not include dealing costs or additional costs such as audit fees. The ongoing charges figure/total expense ratio (OCF/TER) covers administration, audit, depository, legal, registration and regulatory expenses incurred in respect of the funds.
3 Source: Morningstar, as at 7 November 2023, peer group: IA Sector = Mixed Investment 40-85% Shares.
Active engagement
Wellington and its fund managers have a long history of actively engaging with the companies they invest in on environmental, social and corporate governance (ESG) matters. Additionally, they use portfolio screening techniques to avoid companies that may have a negative impact on society or the environment, and they integrate ESG considerations into their research to ensure they allocate capital wisely.
Net zero commitment
The managers have set a 2050 net zero target aligned to the Paris Agreement.
ESG risk avoidance
The fund managers implement a set of clear exclusions.
Engagement with portfolio companies
The fund managers engage with company management on ESG matters and promote net zero targets.
Good governance assessment
The companies in which the fund invests must follow good governance practices as a precondition for investment.
A choice of three funds
There are three SustainableLife funds to choose from. Each is designed to broadly meet a set risk-return profile, providing advisers with a straightforward default portfolio solution, or a core investment around which to build fine-tuned, bespoke portfolios for their clients.
SustainableLife 40-50% Equity Fund
An asset mix around the 45% equities and 55% fixed income mark, with -+5% flexibility. For investors with less tolerance to risk.
SustainableLife 60-70% Equity Fund
An asset mix around the 65% equities and 35% fixed income mark, with -+5% flexibility. For investors with moderate tolerance to risk.
SustainableLife 80-90% Equity Fund
An asset mix around the 85% equities and 15% fixed income mark, with -+5% flexibility. For investors with a higher tolerance to risk.
Documents for you and your clients
Brochures
Other documents
Sustainability and Engagement Reporting
Risk ratings
If you'd like to read more about how the SustainableLife active range has been rated, you can access the risk ratings here:
Important risk information
Investment risk information
The value of investments, and the income from them, may fall or rise and investors may get back less than they invested.
Some funds invest in emerging markets which can be more volatile than more established markets. As a result the value of your investment may rise or fall.
Investments in smaller companies may be more volatile than investments in well-established blue chip companies.
Funds investing in fixed interest securities carry the risk of default on repayment and erosion of the capital value of your investment and the level of income may fluctuate. Movements in interest rates are likely to affect the capital value of fixed interest securities. Corporate bonds may provide higher yields but as such may carry greater credit risk increasing the risk of default on repayment and erosion of the capital value of your investment. The level of income may fluctuate and movements in interest rates are likely to affect the capital value of bonds.
The fund may use derivatives in order to reduce risk or cost and/or generate extra income or growth. The use of derivatives could increase or reduce exposure to underlying assets and result in greater fluctuations of the Fund’s net asset value. A derivative is a financial contract whose value is based on the value of a financial asset (such as a share, bond, or currency) or a market index.
Some funds invest in securities which are denominated in different currencies. Movements in currency exchange rates can affect the return of investments.
For further information on risks please see the “Risk Factors” section of the prospectus.
Important information
This document is directed at professional investors and should not be distributed to, or relied upon by retail investors.
For further information on the fund's investment policies and risks, please refer to the prospectus of the UCITS and to the KIID before making any final investment decisions. The KIID for this fund is available, alongside the prospectus via Vanguard’s website.
This document is designed for use by, and is directed only at persons resident in the UK.
The information contained in this document is not to be regarded as an offer to buy or sell or the solicitation of any offer to buy or sell securities in any jurisdiction where such an offer or solicitation is against the law, or to anyone to whom it is unlawful to make such an offer or solicitation, or if the person making the offer or solicitation is not qualified to do so. The information in this document is general in nature and does not constitute legal, tax, or investment advice. Potential investors are urged to consult their professional advisers on the implications of making an investment in, holding or disposing of shares of, and the receipt of distribution from any investment.
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