Vanguard® LifeStrategy® Index PST Conservative

Download PDF Vanguard's Pooled Superannuation Trusts are open to trustees of regulated superannuation funds, approved deposit funds, pooled superannuation trusts and other eligible entities. Vanguard's LifeStrategy® options use strategic asset allocation targets and a long-term, diversified investment approach. Vanguard takes the worry out of monitoring your investment portfolio by expertly selecting and managing the long-term asset allocation of the trust.

 

As the name suggests, the LifeStrategy® Conservative option is designed with the risk conscious trustee in mind. The option invests in a wide variety of assets, with the emphasis on lower risk, income type investments such as fixed interest and cash. The small exposure to Australian and international shares and property securities improves diversification while enhancing the return potential.

 

Who it may suit

  • investors with a short to medium term investment horizon (3 to 5 years)
  • risk-conscious investors seeking returns based on income type assets
  • investors seeking a balanced portfolio with some capital growth potential
  • 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 fees, expenses and taxes.


Asset allocation targets are:


Income assets 70%
Cash 42%
Australian fixed interest 11%
International fixed interest (hedged) 17%

Growth assets 30%
Australian shares 15%
International shares 10%

International small companies (hedged) 1%
International property securities (hedged) 2%
Australian property securities 2%

 

Benefits

Diversification
  • diversified portfolio favouring lower risk income assets.
  • includes 30% allocation to growth assets.
  • diversified approach lowers risk while providing opportunities for enhanced returns
Capital stability and capital growth potential
  • aims to maintain capital stability through a high allocation to income type assets
  • exposure to growth assets provides potential for some capital growth
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 more tax-efficient returns
Low fees
  • low management costs
Flexibility
  • easily switch funds with no costs other than usual buy/sell spreads


Investment requirements and fees

Minimum investment amounts
Initial application
$500,000
Additional contributions
$1
Buy/sell spread
Purchase
+0.15%
Withdrawal
-0.10%
Management costs
Management costs 0.33% 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 LifeStrategy Index PST Conservative 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 trust 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.

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Vanguard Investments Australia