Vanguard's multi-sector funds use strategic asset allocation targets and a long-term, diversified investment approach. Vanguard takes the worry out of monitoring your investments by expertly selecting and managing the long-term asset allocation of the fund.
A diversified strategy with a bias towards growth assets (Australian and international shares and property securities), the Vanguard Growth Index Fund suits investors seeking long-term capital growth. The Fund is designed for investors with an above average tolerance for risk. As the fund is indexed, it invests in a wide variety of Australian and international assets, which can reduce market risk while enhancing your return potential. The fixed interest and cash exposure adds a stabilising effect and income.
Who it may suit
- long-term investors (usually seven years plus)
- investors seeking long-term capital growth through a diversified portfolio with a bias to growth assets
- investors seeking a tax-effective investment
Objectives
To match the weighted average return of the target indexes for each asset class before taking into account fund fees and expenses. Asset allocation targets are:
Asset allocation targets are:
|
Income assets 30% Cash 2% Australian fixed interest 11% International fixed interest (hedged) 17% |
Growth assets 70%
|
Benefits
| Diversification |
|
| Long-term growth potential and income |
|
| Potential for better after-tax returns |
|
| 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 |
+0.25%
|
| Withdrawal |
-0.15%
|
| Management costs | |
| Management costs |
0.36% 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 Growth Index 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.
