Vanguard Ethically Conscious Global Aggregate Bond Index Fund (Hedged) - AUD Hedged

Product Name

Vanguard Ethically Conscious Global Aggregate Bond Index Fund (Hedged) - AUD Hedged

Issuer

Vanguard

Category

Investment

Type

Fund or Trust

Target

Wholesale, Institutional

Certified Since

2018

Asset Classes

Fixed income

Markets

Australia

Investment Approaches

Negative Screening, Negative Screening

It Includes:

  • No inclusions5 No inclusions

It fully excludes:

  • Riaa icons 41 Alcohol
  • Riaa icons 36 Armaments
  • Riaa icons 33 Fossil fuels
  • Riaa icons 42 Gambling
  • Riaa icons 50 Nuclear power
  • Riaa icons 99 Pornography
  • Riaa icons 35 Tobacco

Overview

The Fund seeks to track the return of the Bloomberg Barclays MSCI Global Aggregate SRI Exclusions Float Adjusted Index hedged into Australian dollars before taking into account fees, expenses and tax. The Bloomberg Barclays MSCI Global Aggregate SRI Exclusions Float Adjusted Index hedged into Australian dollars is a market value weighted index comprised of global investment grade securities (bonds). This includes government, government-related, corporate and securitised fixed rate bonds from both developed and emerging market issuers.


Description


The index excludes companies with significant business activities involving fossil fuels, alcohol, tobacco, gambling, military weapons and civilian firearms, nuclear power and adult entertainment.  

The fund aims to hold an appropriate number of securities so as to produce a portfolio risk exposure profile consistent with that of the index.  This is achieved by holding a representative sample of securities included in the index or securities that provide similar characteristics to those securities in the index.  Security weightings in the Fund may vary from the index weightings.  The Fund may gain exposure to securities directly or through interests in other funds, such as exchange traded funds.
 
The Fund may utilise derivative instruments including futures traded on a licensed exchange and over the counter derivative financial instruments.  Derivative instruments are used to manage the overall interest rate and credit risk exposure of the Fund where it is either unable to invest directly in physical securities or is in the Fund’s best interest to do so.  Derivative financial instruments will not be used to leverage the assets of the Fund.  Vanguard will seek to hedge the Fund’s currency exposure back to the Australian dollar using forward foreign exchange contracts.

Exclusion notes:

Fossil fuels
Issuers that have proved & probable coal reserves, and/or proved reserves for oil and natural gas regardless of their industries, including companies that own less than 50% of a reserves field.

Alcohol
All issuers classified as a “Producer” that earn more than 5% in revenue, or more than $500 million in revenue from alcohol-related products.

Tobacco
All issuers classified as a “Producer”;
All issuers classified as “Distributor”, “Retailer” and “Supplier” that earn 15% or more of their revenue from tobacco-related products.

Gambling
All issuers classified as involved in “Operations” or “Support” that earn 5% or more in revenue, or more than $500 million in revenue, from gambling-related activities.

Civilian Firearms
All issuers classified as a “Producer”.
All issuers classified as a “Retailer” that earn 5% or more in revenue, or more than $20 million in revenue from civilian firearms-related products.

Military Weapons
All issuers classified as involved in manufacturing of Nuclear Weapons, Nuclear Weapons Components, Chemical and Biological Weapons Components, or Depleted Uranium Weapons.
All issuers that earn 5% or more in revenue, or more than $500 million in revenue, from manufacturing of Conventional Weapons, Conventional Weapons Components, or Conventional Weapons Support Systems and Services

Nuclear Power
All issuers classified as a nuclear “Utility”
All issuers classified as involved in uranium mining, designing nuclear reactors or enrichment of fuel for nuclear reactors
All issuers that earn 15% or more revenues as a supplier to the nuclear power industry.

Adult entertainment
All issuers classified as a “Producer” that earn more than 5% in revenue, or more than $500 million in revenue, from adult entertainment materials.

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