Vanguard's LifeStrategy® options use strategic asset allocation targets and a long term, diversified investment approach. Vanguard takes the worry out of monitoring your investments by expertly selecting and managing the long term asset allocation of the option.
Vanguard's LifeStrategy® Balanced option is designed for investors seeking a balance between growth and income assets with an average tolerance for risk. The fund offers diversification with exposure to a wide variety of Australian and international assets. The exposure to Australian and international shares and property securities provides opportunities for long term capital growth while the fixed interest and cash exposure provides a stabilising effect.
Who it may suit
- medium to long term investors (usually five years plus)
- investors seeking a medium risk, balanced portfolio of growth and income assets
- investors seeking a balance between capital growth and capital stability
- investors seeking a tax-effective investment
Objectives
Seeks to provide a diversified investment with a target asset allocation. Each option seeks to match the weighted average return of the various target indexes selected by Vanguard for the various asset classes in which the chosen option invests, before taking into account fees and expenses.
Asset allocation targets are:
|
Income assets 50% Cash 22% Australian Fixed Interest 11% International Fixed Interest (hedged) 17% |
Growth assets 50%
|
Benefits
| Diversification |
|
| Long-term growth potential |
|
| Low fees |
|
Investment requirements and fees
| Minimum investment amounts | |
| Initial investment |
$100,000
|
| Buy/sell spread | |
| Purchase |
+0.20%
|
| Withdrawal |
-0.15%
|
| Management costs | |
| Management costs | 0.34% p.a. |
| Member account keeping fee | Nil |
|
Administration/plan management fee For the first $50,000 For the balance over $50,000 |
0.75% p.a. 0.50% p.a. |
Risk/return profile
At Vanguard, we believe it's just as important to understand the risks and costs of investing, as it is to know about the rewards.
Our risk/return profiler illustrates the expected risk level and potential return for the Vanguard LifeStrategy® Balanced option based on historical data. It's important to remember that past performance is no guarantee of future performance and the risk/return profile of each option may vary from year to year.
