Vanguard's LifeStrategy® funds 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 fund.
Vanguard's LifeStrategy Balanced Fund is designed for investors seeking a balance between growth and income assets with an average tolerance for risk. The fund offers excellent 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 and income.
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
To match the weighted average return of the target indexes for each asset class before taking into account fund fees and expenses.
Asset allocation targets are:
|
Income assets 50% Cash 22% Australian fixed interest 11% International fixed interest (hedged) 17% |
Growth assets 50%
International small companies (hedged) 2% |
Benefits
| Diversification |
|
| Long-term 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 |
-0.15%
|
| Management costs | |
| For the first $50,000 |
0.90% p.a.
|
| For the next $50,000 |
0.60% p.a.
|
| Balance over $100,000 |
0.35% 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 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.
