The new funds will invest in equities and bonds from around the world and are aimed at long-term growth. The ongoing charges figure is 0.48 per cent.

The portfolio will be managed according to the environmental, social and governance characteristics of each company the funds invest in, including four sustainability principles, namely, a commitment to net-zero emissions by 2050 in alignment with the Paris agreement, exclusion of companies that may have a negative impact on society and the environment (e.g. thermal coal, tar sands, tobacco), engagement with portfolio companies on material ESG issues, and the requirement for companies to follow good governance practices as a precondition for investment, the company said.

“Today’s launch represents our commitment to helping investors balance their personal values with their financial goals as interest in sustainable investing continues to grow,” Fong Yee Chan, head of ESG Strategy, Europe, Vanguard, said.

He added: “At Vanguard, we integrate ESG considerations into our investment processes and product design in three key ways. We engage with the companies in which we invest through our investment stewardship activities. We offer funds that allow investors to avoid certain ESG risks, and, thirdly, we allocate capital to companies based on certain sustainability criteria in our new actively managed funds, with the aim to outperform the market.”