Vanguard's Global Infrastructure Fund provides a low cost way to gain exposure to around 124 companies with activities concentrated in integrated regulated utilities, toll roads, transmission and distribution and water projects.
The fund combines a steady and reliable income stream with capital growth potential through a diversified portfolio of securities.
The fund is fully hedged into the Australian dollar so you can invest in global infrastructure projects without currency fluctuations impacting your return.
Who it may suit
- long-term investors (usually five years plus)
- investors seeking a tax-effective income stream
- investors seeking long-term capital growth
- investors seeking an international investment without the currency impact
- self managed super funds
Objectives
To closely track the total return of a customised index (the Global Infrastructure Index) hedged into Australian dollars, before taking into account fund fees and expenses.
Benefits
| Diversification | invests in around 124 securities in 14 predominantly developed markets |
| Tax-effective income stream and capital growth potential |
provides a dividend yield of 0.50% above that of the customised index quarterly income distributions |
| 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 fully hedged into the Australian dollar, protects against currency fluctuations |
| Low fees | low management costs (around half the industry median) no entry fees other than usually buy/sell spreads |
| Flexibility | easily switch funds with no costs no minimum additional investment requirements mean you can add to your investment as much and as often as you like |
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 |
0.51% 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 Global Infrastructure (Hedged) Index 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.
