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Vanguard to offer further choice on international equities

Vanguard | 08 November 2016


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Vanguard Australia has announced the upcoming launch of a new international shares index fund that will exclude the tobacco, controversial weapons and nuclear weapons sectors.

The Vanguard International Shares Select Exclusions Index Fund will be available to Australian and New Zealand investors, with an expected launch in late 2016.

The fund will provide investors with exposure to more than 1500 listed companies across 20 developed international markets (excluding Australia) for an annual management fee of 0.20 per cent. The product will also be available as an Australian Dollar hedged fund for 0.23% per annum, and a New Zealand Dollar hedged fund for 0.26% per annum.

Vanguard Australia Head of Market Strategy, Robin Bowerman, said the fund manager was committed to offering greater choice for investors, while delivering a low-cost and broadly diversified product, which are the hallmarks of Vanguard's offering to investors globally.

"We know from our global experience that there are a variety of humanitarian, ethical and social concerns many people want to factor into their decision-making process when it comes to selecting investment funds," Mr Bowerman said.

"Tobacco and weapons are among the most common sector exclusions that our large institutional clients implement through separately managed accounts, and so it is a logical extension to add this fund to our suite of wholesale products for investors in Australia."

In selecting this benchmark for the product Vanguard consulted with a range of Australian and New Zealand institutional clients to ensure it met their needs.

The new fund will track the MSCI World ex Australia ex Tobacco ex Controversial Weapons ex Nuclear Weapons Index.

Consistent with the existing Vanguard International Shares Index Fund, the third-party index provider for this new international equities product is MSCI, who have more than 40 years' experience building research-based indexes.

"We are pleased that after a thorough due diligence process Vanguard has selected MSCI as a standard benchmark for their new fund on this important theme" said Theodore Niggli, APAC head of MSCI Index Products.