Fund overview
The fund is actively managed and seeks to invest in 35 to 45 companies worldwide that display good stewardship.
This means looking for companies that can balance the interests of shareholders with other stakeholders, including:
- customers
- employees
- communities
- stakeholders in the supply chain
Those companies should also consider environmental, social and governance risks and opportunities.
The fund aims to increase the value of investments over 5 years or more, through capital growth and income.
ESG Principles
Net-zero commitment
The fund manager aims to invest a proportion of the fund’s shares in companies with net-zero science-based targets to reduce greenhouse-gas emissions(1). Net-zero science-based targets are targets that provide a way for companies to reduce their greenhouse-gas emissions.
Carbon considerations
The fund manager looks to invest in companies that have at least one of the following three attributes: A net-zero based target A non-science-based target which is a public active emissions reduction target; or A combined Scope 1 and Scope 2 carbon intensity (generally referred to as a company’s annual emissions divided by its annual revenue, expressed in tons of carbon dioxide equivalent(2) (CO2e) per million dollars of revenue, or tons CO2e / $M revenue). This should be at least 25% below the industry average.
Exclusions policy
The fund manager excludes companies involved in and/or deriving revenue(3) from thermal coal extraction or thermal coal-based power generation, production and generation of oil sands, production of tobacco related products, nuclear weapons and controversial weapons
Engagement with companies
The fund manager will engage directly (meet) with a company if it is not aligned with the fund’s ESG criteria. If initial engagements do not lead to material improvements, the fund manager may then engage further through, for example, board-level engagement and proxy voting actions.
(1) Net-zero targets are considered to be ‘science-based’ if they are in line with what scientists deem is necessary to meet the goals of the Paris Agreement. This is an international treaty to limit global warming to well below 2 degrees C above pre-industrial levels and to pursue efforts to limit global warming to 1.5 degrees C above pre-industrial levels. The fund managers aim to invest at least 65% of the Fund’s assets in companies with net zero science-based targets by 2030, and all companies that the Fund invests in will have net zero science-based targets by 2040.
(2) Carbon dioxide equivalent is a metric measure used to standardise the emissions from various greenhouse gases.
(3) Revenue above certain thresholds, as determined by the external manager of the fund according to the manager’s exclusions policy.
The value of investments, and the income from them, may fall or rise and investors may get back less than they invested.
Fund documents
Please note that a shareholder notice has been sent out to investors to inform them of changes. See full details of the notice. In due course, these materials will be updated to reflect the changes during Q1 2025.
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.
The Funds 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 on our website.
Important information
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 is designed for use by, and is directed only at persons resident in the UK.
The information contained herein 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 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 and /or units of, and the receipt of distribution from any investment.
The Authorised Corporate Director for Vanguard Investments Funds ICVC is Vanguard Investments UK, Limited. Vanguard Asset Management, Limited is a distributor of Vanguard Investments Funds ICVC.
For investors in UK domiciled funds, a summary of investor rights is available in English.