More than 90 per cent of the world's property securities investment opportunities are located overseas. Because there is a low correlation between Australian and overseas property markets, adding international property to an Australian property securities portfolio can improve your risk/return profile.
Vanguard's International Property Securities Index Fund (Hedged) provides a low cost way to access international property markets. Investing in around 250 property securities listed on the exchanges of 20 of the world's major economies, the fund provides a level of diversification not available in the Australian property market. The fund excludes Australia, so investors can add international property to their existing Australian property investments to create a truly global property portfolio.
The fund is fully hedged into the Australian dollar so you can invest in international property markets without currency fluctuations impacting your return.
Who it may suit
- long-term investors (usually five years plus)
- investors seeking long-term capital growth and income
- investors seeking a low-cost, diversified way to access this emerging asset class
- those wanting to increase diversification in the property asset class
- investors seeking an international investment without the currency impact
- self managed super funds
Objectives
To match the total return of the UBS Global Real Estate Investors Index ex-Australia (with net dividends reinvested) hedged into Australian dollars before taking into account fund fees and expenses.
Benefits
| Diversification |
|
| Long-term capital growth potential and income |
|
| Fully hedged into the Australian dollar |
protects against currency fluctuations |
| 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 |
+0.35%
|
| Withdrawal |
-0.35%
|
| Management costs | |
| Management costs |
0.40% 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 Property 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.
