SustainableLife active funds

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Offering an uncomplicated all-in-one, actively managed portfolio of equities and bonds from around the world, SustainableLife active funds can provide a core portfolio solution for investors who value sustainability.

Introducing SustainableLife active funds

Vanguard has been offering multi-asset solutions in conjunction with Wellington since 1975 and today manages more than £740bn1 for multi-asset investors around the world. SustainableLife funds are the latest iteration of this range, designed for investors who prefer active management and want to prioritise sustainability.

Sustainable


Incorporates sustainability criteria, including a net zero commitment, helping to build a long-term competitive advantage that delivers sustainable returns.

Active multi-asset


Provides an all-in-one portfolio of equities and bonds that is highly diversified across geographies, sectors and investment styles.

Low-cost


The total cost of the SustainableLife range is 0.48%2, which is significantly below the 1.18% average expense ratio of the Investment Association peer group3, meaning that sustainability and active management don't have to cost more.

We believe that material ESG risks, if left unchecked, can undermine long-term value. Over time, well-governed companies, including those with sound practices to mitigate material ESG risks, should outperform those that are poorly governed.

Matt Piro, Global Head of ESG Product, Vanguard

A choice of three funds

SustainableLife 40-50% Equity Fund

NAV

As at 04 Jul 2022

£93.01

OCF/TER

0.48%

SustainableLife 60-70% Equity Fund

NAV

As at 04 Jul 2022

£164.13

OCF/TER

0.48%

SustainableLife 80-90% Equity Fund

NAV

As at 04 Jul 2022

£96.69

OCF/TER

0.48%

Effective 8th December 2021, the Global Balanced Fund changed its name to Vanguard SustainableLife 60-70% Equity Fund.

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Events and webinars

SustainableLife active funds: the four pillars of sustainability

Our SustainableLife active funds are designed for investors who want to generate long-term growth from their investments, alongside the explicit incorporation of certain sustainability principles. The managers of the fund incorporate sustainability considerations in four main ways:

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. 

How do we pick our active ESG managers?

As one of the largest active managers in the world, here at Vanguard our expertise lies in selecting talented, world-class portfolio managers capable of producing value to investors over the long term. Our approach to manager selection centres on what we believe to be the key drivers of success — firm, people, philosophy and process. Watch the video to find out how Vanguard carefully selects managers whose principles and processes align with the objectives of the funds they manage.

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:

Why Vanguard for multi-asset investing?

£740bn

in multi-asset fund solutions globally1

30+

strategists and analysts in our Investment Strategy Group develop and maintain our portfolio strategies1

1975

When our expertise in both portfolio construction and asset allocation began

Four investment principles

We took a stand for investors value in 1975. Ever since, we have stayed true to four guiding principles that we believe create the foundations of investment success:

View other multi-asset solutions

LifeStrategy funds

Low-cost, passive, all-in-one solutions

View our range

LifeTarget model portfolios

Intelligent planning for retirement

View our range

1 Source: Vanguard. Data as at 31 December, 2020.

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.

Source: Morningstar, as at 31 October 2021.

 

Performance

The Vanguard SustainableLife active funds are actively managed and do not intend to track or replicate performance of the benchmark. Benchmark data is for reference only.

The Fund will be constrained by the Composite Index* to a limited extent, with regard to its investment in sectors, country exposure and credit ratings. Whilst the Fund will invest in components of the Composite Index, it is not tracking the Composite Index and the Fund may hold investments that are not components of the Composite Index.

Vanguard SustainableLife 40-50% Equity Fund

*Composite Index comprised of: 45% FTSE Developed Net Tax Index, 44% Bloomberg Global Aggregate Credit Index, 5.5% Bloomberg Global Aggregate Treasury Index; and 5.5% Bloomberg Global Aggregate Securitized Index (together, the “Composite Index”).

Vanguard SustainableLife 60-70% Equity Fund

*Composite Index comprised of: 65% FTSE Developed Net Tax Index, 28% Bloomberg Global Aggregate Credit Index, 3.5% Bloomberg Global Aggregate Treasury Index; and 3.5% Bloomberg Global Aggregate Securitized Index (together, the “Composite Index”).

Vanguard SustainableLife 80-90% Equity Fund

*Composite Index comprised of: 85% FTSE Developed Net Tax Index, 12% Bloomberg Global Aggregate Credit Index, 1.5% Bloomberg Global Aggregate Treasury Index; and 1.5% Bloomberg Global Aggregate Securitized Index (together, the “Composite Index”).

 

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.

The value of equities and equity-related securities can be affected by daily stock market movements. Other influential factors include political, economic news, company earnings and significant corporate events. Movements in currency exchange rates can adversely affect the return of your investment.

The risks of investments in SustainableLife include, but are not limited to:

Counterparty risk. The insolvency of any institutions providing services such as safekeeping of assets or acting as counterparty to derivatives or other instruments, may expose the Fund to financial loss.

Sustainability risk. The Fund may not make possible investments if they do not meet the Fund's Sustainability Policy. This may affect the Fund's exposure to certain issuers and cause the Fund to forego certain investment opportunities.

Liquidity risk. Lower liquidity means there are insufficient buyers or sellers to allow the Fund to sell or buy investments readily.

Credit risk. The issuer of a financial asset held within the Fund may not pay income or repay capital to the Fund when due.

Inflation risk. The value of your investments may not be worth as much in the future due to changes in purchasing power resulting from inflation.

Use of derivatives. The use of derivatives could increase or reduce exposure to underlying assets and result in greater fluctuations of the Fund's net asset value.

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 on our website at https://global.vanguard.com.

Important information

This document is directed at professional investors and should not be distributed to, or relied upon by retail investors.

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.

The Authorised Corporate Director for Vanguard Investment Funds ICVC is Vanguard Investments UK, Limited. Vanguard Asset Management, Limited is a distributor of Vanguard Investment Funds ICVC.

For further information on the fund’s investment policy, please refer to the Key Investor Information Document (“KIIDs”). The KIIDs for these funds are available, alongside the prospectus via Vanguard’s website https://global.vanguard.com/.

Statements explaining Vanguard’s approach to the integration of sustainability risk, including into its remuneration policy and a transition statement to support the consideration of Principal Adverse Indicators (this is the impact of its investment decisions on sustainability factors, commonly referred to as PAI), will be available on the policy page of Vanguard’s global website.

Issued by Vanguard Asset Management, Limited which is authorised and regulated in the UK by the Financial Conduct Authority.

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