As an index fund manager, Vanguard structures its portfolio to closely track the performance of a specified market index.

We believe a long term approach to investing delivers the best results. That's why we buy and hold stocks with long term growth in mind, rather than actively trading them in pursuit of short-term gains.

We manage costs wherever we can so your clients can keep more of the returns they earn. Because we hold stocks for the long term we have lower turnover than many active funds. Lower turnover means lower costs and tax, which can lead to better real returns for investors in the long run.

Our approach focuses on the end result. That is, the return your clients take home after expenses and tax. An example of this is the way we take advantage of capital gains discounts to minimise the tax impact for investors.

Instead of holding every security in an index, we aim to build portfolios with the optimal number of securities to closely track the index performance without incurring unnecessary transaction costs. It's what we call optimised indexing. This way investors get all the benefits of holding a diversified portfolio like lower risk and the potential for improved returns, without the associated costs.