Ditching ESG improves global passive manager Vanguard's returns

Fund manager Vanguard dropped out of a widely used ESG initiative. (Image: Getty)

Tue, 17 Jan 2023

(Bloomberg) – Vanguard Group, which quit the world’s biggest climate-finance alliance in December, was the only major exchange-traded fund provider to post an increase in European assets last year thanks to its lower exposure to environmental, social and governance strategies, according to Morningstar.The world’s second-largest asset manager, which is widely used also by KiwiSaver and other New Zealand passively managed funds, is “an outlier in the European context,” Jose Garcia-Zarate, associate director of passiv...

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