Vanguard® Personal Pension Plan LifeStrategy® Conservative option
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.

 


As the name suggests, the LifeStrategy® Conservative option is designed with the risk conscious investor in mind. The option invests in a wide variety of assets, with the emphasis on lower risk, income type investments such as fixed interest and cash. The small exposure to Australian and international shares and property securities improves diversification while enhancing the return potential.


Who it may suit

  • investors with short-term investment timeframes
  • investors seeking a low risk, balanced portfolio with a small exposure to growth assets
  • investors seeking capital stability and some capital growth potential
  • 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 70%
Cash 42%
Australian fixed interest 11%
International fixed interest (hedged) 17%

Growth assets 30%
Australian Shares 15%
International Shares 10%
Australian Property Securities 2%
International Property Securities (Hedged) 2%
International Small Companies (Hedged) 1%


Benefits

Diversification
  • diversified portfolio favouring lower risk income assets.

    includes 30% allocation to growth assets.

    diversified approach lowers risk while providing opportunities for enhanced returns
Focus on capital stability with some capital growth potential
  • aims to maintain capital stability

  • exposure to growth assets provides potential for some capital growth
Low fees
  • low management costs (around half the industry median) and no entry fees other than buy/sell spreads


Investment requirements and fees

Minimum investment amounts
Initial investment
$100,000
Buy/sell spread
Purchase
+0.15%
Withdrawal
-0.10%
Management costs
Management costs0.33% p.a.
Member account keeping feeNil

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 ofinvesting, as it is to know about the rewards.

Our risk/return profiler illustrates the expected risk level and potential return for the Vanguard LifeStrategy Conservative 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 fund may vary from year to year.

 

GENERAL ADVICE WARNING
Vanguard Investments Australia Ltd (ABN 72 072 881 086 / AFSL 227263 / RSE Licence L0001335) is the product issuer. We have not taken your or your clients' circumstances into account when preparing our website content so it may not be applicable to the particular situation you are considering. You should consider your and your clients' circumstances, as well as our Product Disclosure Statements (PDS), before making any investment decision or recommendation. You can access our PDS on this website or by calling us. Past performance is not indicative of future performance.

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Vanguard Investments Australia