Vanguard's Australian Fixed Interest option invests in a diversified portfolio of around 310 fixed interest securities issued by Commonwealth Government, State Government, semi-government authorities and investment grade corporates.
Who it may suit
- short to medium term investors (usually 3 to 5 years)
- investors requiring a high quality, high yielding super strategy such as those nearing retirement
- investors seeking a low risk, diversified investment portfolio of high quality debt securities
- investors looking to add diversification and balance to a share-oriented portfolio
- investors seeking a tax-effective investment
Objectives
To match the total return of the UBS Australian Composite Bond Index before taking into account expenses, fees and taxes.
Benefits
| Diversification |
|
| Capital stability and growth potential |
|
| Low scaled fees |
|
| Flexibility |
|
Investment requirements and fees
| Minimum investment amounts | |
| Initial contribution |
$20,000
|
| Additional contributions |
$200
|
| Account balance |
$7,500
|
| Buy/sell spread | |
| Purchase |
+0.10%
|
| Withdrawal |
-0.10%
|
| Management costs | |
| Management costs | 0.29% p.a. |
| Member account keeping fee | $66 p.a. |
Administration/plan management fee For the first $50,000 Portion above $50,000 |
0.75% p.a. 0.50% 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 Australian Fixed Interest option 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.
