Investors with longer term investment objectives often have requirements for regular income and capital growth, especially retirees or those approaching retirement. The Vanguard Australian Shares High Yield Fund combines a tax-effective income stream with the potential for capital growth in the one investment. Using 'dividend enhancement' techniques, Vanguard tilts the portfolio towards companies expected to pay higher than average cash dividends and franking credits.
Who it may suit
- long-term investors (usually seven years plus)
- investors seeking a tax-effective income stream
- retirees or those nearing retirement
- self managed super funds
- investors drawing down an allocated pension
- higher income earners using a gearing strategy
Objectives
- targets a grossed up dividend yield 1% above the index
- to provide a total return broadly in line with the S&P/ASX 200 ex-A-REIT Index before taking into account fund fees and expenses
Benefits
| Tax-effective income |
|
| Diversification and long-term capital growth potential |
|
| Potential for better after-tax returns |
|
| Low scaled fees |
|
| Regular savings plan |
|
Investment requirements and fees
| Minimum investment amounts | |
| Initial investment |
$5,000
|
| Additional investment by cheque |
$1,000
|
| Additional investment by BPAY® |
$100
|
| Holding balance |
$3,000
|
| Switch/withdrawal |
$1,000
|
| Buy/sell spread | |
| Purchase |
+0.20%
|
| Withdrawal |
-0.10%
|
| Management costs | |
| For the first $50,000 |
0.90% p.a.
|
| For the next $50,000 |
0.60% p.a.
|
| Balance over $100,000 |
0.45% 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 High Yield Australian Shares Fund based on historical data. It's important to remember that past performance is no guarantee of future performance and return profile of each fund may vary from year to year.
