Vanguard has changed the benchmark for the Vanguard International Fixed Interest Index Fund (Hedged) and the Vanguard International Credit Securities Index Fund (Hedged) in which the Vanguard Index Diversified Bond Fund invests. These changes will be effective 30 June 2008.
For each underlying fund, the indexes will change as follows:
| Fund | Previous Index | New Index |
|---|---|---|
| Vanguard International Fixed Interest Index Fund (Hedged) | Citigroup World Government Bond Index | Lehman Global Treasury Index |
| Vanguard International Credit Securities Index Fund (Hedged) | Citigroup non-MBS non-WGBI WorldBIG Bond Index | Lehman Global Aggregate Government-Related and Corporate Index |
There are a number of benefits that have been identified in switching to the Lehman Index including broader diversification for the funds, as these Lehman Indexes provide greater geographic coverage compared to Citigroup. The Lehman family of indexes is the most widely tracked for global bond portfolios with over USD6.1 trillion following over 10,000 benchmarks. Investors will see no change to the style of their investment and the risk/return characteristics of the Lehman Indexes are almost identical to the related Citigroup Indexes.
You can access the supplementary product disclosure statements to our index funds and investor index funds which detail these changes here:
Vanguard Investor Index Funds Supplementary Product Disclosure Statement
Vanguard Index Funds Supplementary Product Disclosure Statement
If you would like to order any stock of these supplements please contact our Adviser Services Associates on 1300 655 205 or email us at adviserservices@vanguard.com.au
