Vanguard
LifeStrategy High Growth Fund

Download PDF 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.

 

A diversified strategy mainly investing in growth assets (Australian and international shares and property securities), the Vanguard LifeStrategy High Growth Fund suits investors seeking long-term capital growth. The Fund is designed for investors with a high 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. There is a small exposure to Australian and international fixed interest to provide a stabilising effect and some income.

 

Who it may suit

  • long-term investors (usually seven years plus)
  • investors seeking long-term capital growth through a diversified portfolio of mainly growth assets
  • 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 10%
Cash 0%
Australian fixed interest 4%
International fixed interest (hedged) 6%

Growth assets 90%
Australian shares 44%
International shares 29%
Australian and international property securities (hedged) 10%
Emerging markets 3%

International small companies 4%

Benefits

Diversification
  • potential for long-term capital growth and some income
  • half-yearly distributions
Long-term growth potential
  • diversified portfolio with a strong growth bias (90% growth assets)
  • diversified approach lowers risk while providing opportunities for enhanced returns
Potential for better after-tax returns
  • our buy and hold strategy takes advantage of capital gains discounts and the deferral of capital gains liabilities, which may result in better after-tax returns
Low scaled fees
  • low management costs (around half the industry median) and no entry fees
  • scaled management fees apply to balances over $50,000
Regular savings plan
  • once you've opened your investment with $5,000 or more, you can use BPAY® to start a regular investment plan with as little as $100


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
+0.30%
Withdrawal
-0.20%
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 High Growth 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.

 


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.

© Copyright 2008 Vanguard Investments Australia Ltd

Vanguard Investments Australia