Vanguard Australian Shares High Yield Fund

Download PDF Investors with longer term investment objectives often have requirements for regular income and capital growth, especially retirees or those approaching retirement. The Vanguard Australian Shares High Yield Fund combines a tax-effective income stream with the potential for capital growth in the one investment. Using 'dividend enhancement' techniques, Vanguard tilts the portfolio towards companies expected to pay higher than average cash dividends and franking credits.

 

Who it may suit

  • long-term investors (usually seven years plus)
  • investors seeking a tax-effective income stream
  • retirees or those nearing retirement
  • self managed super funds
  • investors drawing down an allocated pension
  • higher income earners using a gearing strategy

Objectives

  • targets a grossed up dividend yield 1% above the index
  • to provide a total return broadly in line with the S&P/ASX 200 ex-A-REIT Index before taking into account fund fees and expenses

Benefits

Diversification
  • invests in more than 100 of Australia's top companies
Tax-effective income and capital growth potential
  • targets companies from Australia's top 200 expected to pay above average franked dividends
  • excludes listed property trusts as they don't offer franking benefits
  • distributes monthly
  • offers long-term capital growth potential through its diversified portfolio of shares listed on the Australian Stock Exchange
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
Low fees
  • low management costs (around half the industry median)
  • no entry fees other than usual buy/sell spreads
Flexibility
  • easily switch funds with no costs other than usual buy/sell spreads
  • 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
+0.20%
Withdrawal
-0.10%
Management costs
Management costs
0.40% 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 Australian Shares High Yield 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.

 

GENERAL ADVICE WARNING
Vanguard Investments Australia Ltd (ABN 72 072 881 086 / AFSL 227263 / RSE Licence L0001335) is the product issuer. We have not taken your or your clients' circumstances into account when preparing our website content so it may not be applicable to the particular situation you are considering. You should consider your and your clients' circumstances, as well as our Product Disclosure Statements (PDS), before making any investment decision or recommendation. You can access our PDS on this website or by calling us. Past performance is not indicative of future performance.

© Copyright 2008 Vanguard Investments Australia Ltd

Vanguard Investments Australia