PeterC
NES Member
So, got a response from Vanguard:
"Thank you for taking the time to contact us. Vanguard is not making any changes to our funds at this time. The majority of our funds are indexed products, which seek to track a target benchmark constructed by independent third parties. Vanguard follows, wherever possible, a full replication strategy (i.e., owning all stocks in the benchmark) in order to provide investment results that track the performance of the index as closely as possible. When full replication is impractical or too costly, we use an optimization strategy in which we hold a representative sampling of the benchmark in order to mirror its returns. We will continue to adhere to these strategies. As a fiduciary, Vanguard is required to manage our funds in the best interests of shareholders, and is obligated to maximize returns in order to help shareholders meet their financial goals. We appreciate that Vanguard’s 20 million clients hold a wide variety of humanitarian, religious, political, and ethical beliefs. As a result, Vanguard, along with many other mutual fund firms, has been called upon over the years to take actions against a wide range of companies. However, given the diversity of our client base, it would be exceedingly difficult to manage our clients’ funds effectively and efficiently while satisfying the personal beliefs of all of our clients. Our Investment Stewardship team engages with companies when there is a material risk to your long-term investment, which is why we are meeting with the leaders of gun manufacturers and distributors. We want to know how they will mitigate the risks associated with their products and the impact regulations or other actions will have on their long-term value. We believe that when a business poses a risk to society, it can also pose a risk to investors.
For more information on our approach to corporate governance and engagement, please visit our Investment Stewardship page on vanguard.com here: Investment Stewardship at Vanguard"
I guess it says they're not worrying about Mr H, but this one line is a little concerning. Who decides what is dangerous ?
"We believe that when a business poses a risk to society, it can also pose a risk to investors"
P
"Thank you for taking the time to contact us. Vanguard is not making any changes to our funds at this time. The majority of our funds are indexed products, which seek to track a target benchmark constructed by independent third parties. Vanguard follows, wherever possible, a full replication strategy (i.e., owning all stocks in the benchmark) in order to provide investment results that track the performance of the index as closely as possible. When full replication is impractical or too costly, we use an optimization strategy in which we hold a representative sampling of the benchmark in order to mirror its returns. We will continue to adhere to these strategies. As a fiduciary, Vanguard is required to manage our funds in the best interests of shareholders, and is obligated to maximize returns in order to help shareholders meet their financial goals. We appreciate that Vanguard’s 20 million clients hold a wide variety of humanitarian, religious, political, and ethical beliefs. As a result, Vanguard, along with many other mutual fund firms, has been called upon over the years to take actions against a wide range of companies. However, given the diversity of our client base, it would be exceedingly difficult to manage our clients’ funds effectively and efficiently while satisfying the personal beliefs of all of our clients. Our Investment Stewardship team engages with companies when there is a material risk to your long-term investment, which is why we are meeting with the leaders of gun manufacturers and distributors. We want to know how they will mitigate the risks associated with their products and the impact regulations or other actions will have on their long-term value. We believe that when a business poses a risk to society, it can also pose a risk to investors.
For more information on our approach to corporate governance and engagement, please visit our Investment Stewardship page on vanguard.com here: Investment Stewardship at Vanguard"
I guess it says they're not worrying about Mr H, but this one line is a little concerning. Who decides what is dangerous ?
"We believe that when a business poses a risk to society, it can also pose a risk to investors"
P
![[puke2]](/xen/styles/default/xenforo/smilies.vb/031.gif "Puke2 [puke2]")
![[bs2]](/xen/styles/default/xenforo/smilies.vb/047.gif "BS2 [bs2]")
