ASIC successfully pursues Vanguard Investments Australia for making misleading statements

The Australian Securities and Investments Commission (ASIC) has successfully pursued Vanguard Investments Australia for making misleading statements in respect of the Vanguard Ethically Conscious Global Aggregate Bond Index Fund. The Federal Court held that representations made by Vanguard about the Vanguard Ethically Conscious Global Aggregate Bond Index Fund’s environmental, social and governance (ESG) credentials were false and misleading as the fund held investments which included companies which had significant business activities in a range of industries, including those involving fossil fuels.

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According to an ASIC statement, Vanguard admitted to misleading its customers that their investment would be screened to exclude bond issuers with significant business activities in certain industries, including fossil fuels, when this was not always the case.
The penalty hearing will be heard in August 2024.

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If you invested in the Vanguard Ethically Conscious Global Aggregate Bond Index Fund on the basis of the ESG credentials, and believe you were misled, we encourage you to contact FD Legal to discuss your matter. We are committed to helping client’s recovering losses from financial institutions. Contact FD Legal on 1300 433 533 or enquiry@fdlegal.com.au