Vanguard's multi-sector 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.
As the name suggests, the Vanguard Conservative Index Fund is designed with the risk conscious investor in mind. The fund 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 of the fund.
Who it may suit
- short to medium term investors (usually three to five years)
- 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
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 70% Cash 42% Australian fixed interest 11% International fixed interest (hedged) 17% |
Growth assets 30%
|
Benefits
| Diversification |
|
| Income and long-term growth potential |
|
| Potential for better after-tax returns |
|
| Low fees |
|
| Flexibility |
|
Investment requirements and fees
| Minimum investment amounts | |
| Initial investment |
$500,000
|
| Additional investments |
Nil
|
| Holding balance |
Nil
|
| Switch/withdrawal |
Nil
|
| Buy/sell spread* | |
| Purchase |
+0.15%
|
| Withdrawal |
-0.10%
|
| Management costs | |
| Management costs |
0.33% p.a.
|
* Note that the sell spread is an estimate. There may be circumstances where the sell spread will be lower or higher - for example, the sell spread may be higher when there are large or prolonged withdrawals from the fund. In these circumstances, the sell spread could potentially be as much as the buy spread for the fund.
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 Conservative Index Fund 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.
