Pennsylvania-based investment firm Vanguard, which manages $8.4 trillion in global assets across more than 400 funds, has expanded its popular LifeStrategy range with new products aimed at investors wanting to include ESG (environmental, social and governance) factors in their process.

The new SustainableLife range consists of three actively managed multi-asset funds with an ESG screen as well as a global sustainable equity-only fund, all managed by US investment firm Wellington.

The three multi-asset products offer investors a 40-50% equity fund, a 60-70% equity fund and an 80-90% equity fund, with the remainder of each portfolio in bonds. All three products have a 0.48% ongoing charge and account for the ESG credentials of each firm in the portfolio.

The manager will use four sustainability principles: favouring firms with a commitment to net zero carbon emissions by 2050, in line with the Paris Accord; excluding firms which may have a negative societal impact, such as thermal coal and tobacco; fostering engagement on material ESG issues; and insisting on strong corporate governance.

The standalone Vanguard Sustainable Equity Fund also carries a 0.48% ongoing charge and will use sustainable investment criteria such as the net-zero commitment to ‘help investors balance their personal values with their financial goals as interest in sustainable investing continues to grow’ according to the firm’s European head of ESG strategy, Fong Yee Chan.

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