Vanguard's Sustainability Leaders Australian Shares Fund provides investors an opportunity to invest in companies that lead their industry peers in terms of sustainable business practice ('Sustainable Leaders'). Vanguard has a long established relationship with Sustainable Asset Management (SAM). SAM is a Swiss based company, established in 1995 and recognised as a global leader in the field of sustainability research.
Portfolio Construction
Vanguard uses the Australia SAM Sustainability Index (AuSSI) to create a portfolio with characteristics (industry weights and asset size distribution) similar to those of the broader Australian equity market. At present, the AuSSI itself reflects those characteristics and is used as a reference for the portfolio. To read more about SAM and the stock selection and portfolio construction of this fund you can access the Product Disclosure Statement (PDS) here.
Who it may suit
- investors seeking exposure to companies that support sustainable business practice
- long-term investors (usually five years plus)
- investors seeking long-term capital growth and some tax-effective income
- investors seeking a tax-effective investment
- higher income earners using a gearing strategy
- self managed super funds
Objectives
The fund seeks to capture the performance of Australia's Sustainability Leaders with a well diversified portfolio with risk and return characteristics similar to the broader Australian share market (as represented by the S&P ASX 200 index).Benefits
| Diversification |
|
| Sustainable investing |
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| Capital growth potential and some tax-effective income |
|
| Potential for better after-tax returns |
|
| Low fees |
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| 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 |
-0.20%
|
| Management costs* | |
| Management costs |
0.50% p.a.
|
*The management costs for the funds incorporate Goods and Services Tax (GST) after taking into account any expected input tax credits. Please refer to page x of the PDS
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 Sustainability Leaders Australian Shares 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.
