Vanguard's International Credit Securities Index Fund (Hedged) invests in a broad range of fixed interest securities issued by government owned or guaranteed entities and investment grade corporations around the world. The fund is fully hedged into Australian dollars. Including both international and Australian fixed interest securities in a portfolio has two major benefits for investors:
- increases diversification, which lowers risk
- provides opportunities for enhanced returns without resorting to lower grade, higher risk debt
Who it may suit
- short to medium term investors (usually 3 to 5 years)
- investors requiring a high quality, high yielding income stream such as retirees or those nearing retirement
- investors seeking a low risk, diversified investment portfolio of high quality debt securities
- investors looking to add diversification and balance to a share-oriented portfolio
- self managed super funds
Objectives
The fund seeks to match the total return of the Barclays Capital Global Aggregate Government-Related and Corporate Index (hedged into Australian dollars) before taking into account fund fees and expenses.
Benefits
| Diversification |
|
| International exposure provides opportunities to enhance returns |
|
| Income and capital growth potential |
|
| 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 |
+0.20%
|
| Withdrawal |
-0.15%
|
| Management costs | |
| Management costs |
0.31% 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 International Credit Securities Index Fund (Hedged) 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.
