The latest in funds and investment news from across the world.

Vanguard
Vanguard has launched two new ESG equity index funds: the Vanguard ESG Developed World All Cap Equity Index Fund (UK), with ongoing charges of 0.20 per cent, and the Vanguard ESG Emerging Markets All Cap Equity Index Fund, with ongoing charges of 0.25 per cent. Both funds are aimed at building ESG friendly portfolios that offer broad and diversified exposure to global markets, while screening out companies that fail to meet established environmental, social and governance standards, Vanguard said.

The  asset house said both funds will follow selected FTSE indices that exclude companies involved in non-renewable energy (such as nuclear power and fossil fuels), weapons (such as civilian, controversial and military), and “vice” products, including alcohol, tobacco, gambling and adult entertainment. Companies from any sector failing to meet the UN's Global Compact Principles on labour rights, human rights, and environmental and anti-corruption measures are also excluded.

The funds are available to both retail and professional investors in income and accumulation share classes.

River and Mercantile
River and Mercantile has launched what it says is a low-cost share class for emerging market investment strategies.

The strategies are the River and Mercantile Emerging Market Opportunities ILC Equity and Emerging Market ILC Equity Funds, both with eight-year track records. From yesterday, “partner share classes” for each fund are available at a discounted annual management charge of 35 basis points. 

“It’s a long time since I can recall such value and embedded return potential being available in emerging market equities. It’s a consequence of a challenging few years combined with the impact of COVID-19. But drill into the performance and trading outlook of growth, quality, and select cyclical EM companies and the investment case is extremely compelling,” Al Bryant, head of Emerging Market Equities at River and Mercantile, said. 

“The relative value of emerging market equities and underlying currencies are now complimented by renewed growth expectations of 14 per cent over the next two years, their best absolute rate in 10 years. Double digit growth trading at 15 times and yielding 3 per cent is unmatched by US and European equities alike, creating an upgrade for investors on all fronts,” he said. 

River and Mercantile oversaw assets under management of £40.5 billion ($51.6 billion) as of the end of March this year.