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.
A diversified strategy with a bias towards growth assets (Australian and international shares and property securities), the LifeStrategy® Growth option suits investors seeking long-term capital growth with an above average tolerance for risk. As the fund is indexed, it invests in a wide variety of Australian and international assets, which can reduce market risk while enhancing your return potential. The fixed interest and cash exposure adds a stabilising effect.
Who it may suit
- long term investors (usually seven years plus)
- investors seeking long-term capital growth through a diversified portfolio with a bias to growth assets
- investors seeking a professionally managed diversified portfolio
- 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 30% Cash 2% Australian fixed interest 11% International fixed interest (hedged) 17% |
Growth assets 70%
|
Benefits
| Diversification |
|
| Long-term growth potential |
|
| Low fees |
|
Investment requirements and fees
| Minimum investment amounts | |
| Initial investment |
$100,000
|
| Buy/sell spread | |
| Purchase |
+0.25%
|
| Withdrawal |
-0.15%
|
| Management costs | |
| Management costs | 0.36% 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® Growth 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.
