• The Fund seeks to provide an increase in the value of investments over the long-term (more than 5 years), through a combination of capital growth and income. The Fund aims to achieve this whilst selecting investments which meet certain sustainability criteria.
• The Fund is actively managed and seeks to achieve its investment objective by investing at least 90% of the Fund’s assets in shares issued by large companies worldwide which demonstrate good governance and act as good “stewards” of their capital. Such investments will be selected following a financial assessment, a governance assessment and in accordance with the sustainability approach.
• The Fund can invest in all countries, sectors and industries and will typically hold shares of 35 to 45 companies.
• The Fund will seek to invest in companies whose management teams and boards display strong corporate governance (i.e., companies that balance the interests of all customers, employees, communities and suppliers) in the pursuit of profits and consider environmental, social and governance risks and opportunities in their corporate strategy.
• The Fund will only invest in companies that have at least one of the following: (i) a net zero science-based target; (ii) a non- science-based target which is a public active emissions reduction target; or (iii) a combined scope 1+2 intensity (tons CO2/$M revenue) that is at least 25% below their industry average based on publicly disclosed emissions. Scope 3 emissions are not included.
• The Manager considers that investments in companies with significant exposure to certain activities would not be suitable for the Fund due to the impact that such companies have on society and/or the environment. The exclusions policy can be found at https://funddocs.vanguard.com/Vanguard_Capital_Stewards_Equity_Fund_Exclusions_Policy.pdf The Fund will avoid investing in shares issued by companies involved in and/or deriving revenue (above a threshold specified by the Manager and set out in the exclusions policy) 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.
• The Fund attempts to remain fully invested and hold small amounts of cash except in extraordinary market, political or similar conditions where the Fund may temporarily depart from this investment policy to avoid losses.
• The FTSE All-World Index (the “Index”) serves as a reference benchmark for both performance comparison and weighted average carbon intensity comparison. Whilst the Fund may hold investments that are components of the Index, the Index is not considered during portfolio construction and the Manager will not manage the extent to which the Fund's investments differ from the Index.
• The Fund may use derivatives in order to reduce risk or cost and/or generate extra income or growth (known as “efficient portfolio management”). 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.

Note: Sustainable investment labels help investors find products that have a specific sustainability goal. This product does not have a UK sustainable investment label, as the sustainability characteristics are not aligned to the FCA's labelling criteria. For more information about sustainable investment labels, please see the FCA page linked here.