Investment

Conservative

Investment requirements and fees

Minimum investment amounts

Initial investment$500,000

Additional investmentsNil

Holding balanceNil

Switch/withdrawalNil

Buy/sell spread

Purchase0.15%

Withdrawal0.10%

Management costs

Management costs0.33% p.a.

Ratings

Standard & Poor'sFour Stars

MorningstarHighly Recommended

LonsecRecommended

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Multi-Sector Solutions Brochure

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.

As the name suggests, the Vanguard Conservative Index Fund is designed with the risk conscious investor in mind. The fund 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 of the fund.

Who it may suit

short to medium term investors (usually three to five years)
investors seeking a low risk, balanced portfolio with a small exposure to growth assets
investors seeking capital stability and 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 fund fees and expenses. The weights used are the strategic asset allocations to each asset class.

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
Income and long-term growth potential	steady income with potential for some capital growth quarterly distributions
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

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Knowledge Centre

Managed over $500,000 - Funds at a Glance*

Show all funds or Hide all Funds.

Cash Cash funds suit investors who prefer capital stability and regular income to long-term growth.

	Index/ Benchmark	Minimum Initial Application	Application Fee	Access to Funds	Income Distributions	Buy/Sell Spread	Ratings and Recommendations
	Index/ Benchmark	Minimum Initial Application	Application Fee	Access to Funds	Income Distributions	Buy/Sell Spread	Standard & Poors	Morningstar	Lonsec
Vanguard® Cash Reserve	UBS Australia Bank Bill Index	$500,000	Nil	Withdrawals are normally paid within seven business days	Monthly	Nil	4 Stars	-	-
Vanguard® Cash Plus Index Fund	A customised Index, the Vanguard Cash Plus Index	$500,000	Nil	Withdrawals are normally paid within seven business days	Monthly	Nil	3 Stars	-	-

Fixed Interest Fixed interest funds suit short to medium-term investors seeking a steady and reliable income stream.

	Index/ Benchmark	Minimum Initial Application	Application Fee	Access to Funds	Income Distributions	Buy/Sell Spread	Ratings and Recommendations
	Index/ Benchmark	Minimum Initial Application	Application Fee	Access to Funds	Income Distributions	Buy/Sell Spread	Standard & Poors	Morningstar	Lonsec
Vanguard® Australian Government Bond Index Fund	UBS Government Bond Index	$500,000	Nil	Withdrawals are normally paid within seven business days	Quarterly	0.10%/ 0.10	4 Stars
Vanguard® Australian Fixed Interest Index Fund	UBS Australian Composite Bond Index	$500,000	Nil	Withdrawals are normally paid within seven business days	Quarterly	0.20%/ 0.20	4 Stars	-	Highly Recommended
Vanguard® International Fixed Interest Index Fund (Hedged)	Barclays Capital Global Treasury Index in $A (Hedged)	$500,000	Nil	Withdrawals are normally paid within seven business days	Quarterly	0.20%/ 0.20	4 Stars	-	Recommended
Vanguard® International Credit Securities Index Fund (Hedged)	Barclays Capital Global Aggregate Government-related and Corporate Index in $A (Hedged)	$500,000	Nil	Withdrawals are normally paid within seven business days	Quarterly	0.40%/ 0.40%	-	-	-

Property Property trusts suit investors with a long-term time frame (five years plus).

	Index/ Benchmark	Minimum Initial Application	Application Fee	Access to Funds	Income Distributions	Buy/Sell Spread	Ratings and Recommendations
	Index/ Benchmark	Minimum Initial Application	Application Fee	Access to Funds	Income Distributions	Buy/Sell Spread	Standard & Poors	Morningstar	Lonsec
Vanguard® Australian Property Securities Index Fund	S&P/ASX 300 A-REIT Index	$500,000	Nil	Withdrawals are normally paid within seven business days	Quarterly	0.20%/ 0.20%	4 Stars	Highly Recommended	Highly Recommended
Vanguard® International Property Securities Index Fund	UBS Global Real Estate Investors Index ex-Australia in $A	$500,000	Nil	Withdrawals are normally paid within seven business days	Quarterly	0.30%/ 0.30%	4 Stars	Recommended	Recommended
Vanguard® International Property Securities Index Fund (Hedged)	UBS Global Real Estate Investors Index ex-Australia in $A (Hedged)	$500,000	Nil	Withdrawals are normally paid within seven business days	Quarterly	0.40%/ 0.40%	4 Star	Recommended	Recommended

Australian Shares Shares are high risk and generally suited to longer-term investors (seven years plus)

	Index/ Benchmark	Minimum Initial Application	Application Fee	Access to Funds	Income Distributions	Buy/Sell Spread	Ratings and Recommendations
	Index/ Benchmark	Minimum Initial Application	Application Fee	Access to Funds	Income Distributions	Buy/Sell Spread	Standard & Poors	Morningstar	Lonsec
Vanguard® Australian Shares Index Fund	S&P/ASX 300 Index	$500,000	Nil	Withdrawals are normally paid within seven business days	Quarterly	0.20%/ 0.10%	4 Stars	Recommended	Recommended
Vanguard® Australian High Yield Shares Fund	S&P/ASX 200 ex-A-REIT Index	$500,000	Nil	Withdrawals are normally paid within seven business days	Monthly	0.20%/ 0.10%	4 Stars	Investment Grade	Recommended
Vanguard® Sustainability Leaders Australian Shares Fund	S&P/ASX 200 Index	$500,000	Nil	Withdrawals are normally paid within seven business days	Quarterly	0.20%/ 0.20%	-	-	-

International Shares International Shares are high risk and generally suited to longer-term investors (seven years plus).

	Index/ Benchmark	Minimum Initial Application	Application Fee	Access to Funds	Income Distributions	Buy/Sell Spread	Ratings and Recommendations
	Index/ Benchmark	Minimum Initial Application	Application Fee	Access to Funds	Income Distributions	Buy/Sell Spread	Standard & Poors	Morningstar	Lonsec
Vanguard® International Shares Index Fund	MSCI World ex-Australia Index in AUD	$500,000	Nil	Withdrawals are normally paid within seven business days	Quarterly	0.30%/ 0.10%	4 Stars	Recommended	Recommended
Vanguard® International Shares Index Fund (Hedged)	MSCI World ex-Australia Index hedged to AUD	$500,000	Nil	Withdrawals are normally paid within seven business days	Quarterly	0.40%/ 0.20%	4 Stars	Recommended	Recommended
Vanguard® Emerging Markets Shares Index Fund	MSCI Emerging Markets Index in AUD	$500,000	Nil	Withdrawals are normally paid within seven business days	Quarterly	0.75%/ 1.00%	4 Stars
Vanguard® International Small Companies Index Fund	MSCI World ex-Australia Small Cap Index in AUD	$500,000	Nil	Withdrawals are normally paid within seven business days	Quarterly	0.35%/ 0.25%	4 Stars	-	-
Vanguard® International Small Companies Index Fund (Hedged)	MSCI World ex-Australia Small Cap Index hedged to AUD	$500,000	Nil	Withdrawals are normally paid within seven business days	Quarterly	0.45%/ 0.35%	4 Stars	-	-
Vanguard® Global Infrastructure Fund	A customised index, the Vanguard Global Infrastructure Index in AUD	$500,000	Nil	Withdrawals are normally paid within seven business days	Quarterly	0.30%/ 0.30%	4 Stars	Recommended	Recommended (upper end)
Vanguard® Global Infrastructure Fund (Hedged)	A customised index, the Vanguard Global Infrastructure Index hedged to AUD	$500,000	Nil	Withdrawals are normally paid within seven business days	Quarterly	0.40%/ 0.40%	4 Stars	Recommended	Recommended (upper end)
Vanguard® Sustainability Leaders International Shares Fund	MSCI World ex-Australia Index in AUD	$500,000	Nil	Withdrawals are normally paid within seven business days	Quarterly	0.30%/ 0.30%	-	-	-

DiversifiedDiversified funds allow investors to select the portfolio that best matches their risk profile.

	Index/ Benchmark	Minimum Initial Application	Application Fee	Access to Funds	Income Distributions	Buy/Sell Spread	Ratings and Recommendations
	Index/ Benchmark	Minimum Initial Application	Application Fee	Access to Funds	Income Distributions	Buy/Sell Spread	Standard & Poors	Morningstar	Lonsec
Vanguard ® Conservative Index Fund	30% growth and 70% income (Weighted average of target indexes of Vanguard Index Funds)	$500,000	Nil	Withdrawals are normally paid within seven business days	Quarterly	0.15%/ 0.10%	4 Stars	Highly Recommended	Recommended
Vanguard® Balanced Index Fund	50% growth and 50% income (Weighted average of target indexes of Vanguard Index Funds)	$500,000	Nil	Withdrawals are normally paid within seven business days	Quarterly	0.20%/ 0.15%	4 Stars	Highly Recommended	Recommended
Vanguard® Growth Index Fund	70% growth and 30% income (Weighted average of target indexes of Vanguard Index Funds)	$500,000	Nil	Withdrawals are normally paid within seven business days	Quarterly	0.25%/ 0.15%	4 Stars	Highly Recommended	Recommended
Vanguard® High Growth Index Fund	90% growth and 10% income (Weighted average of target indexes of Vanguard Index Funds)	$500,000	Nil	Withdrawals are normally paid within seven business days	Quarterly	0.30%/ 0.20%	4 Stars	Highly Recommended	Recommended

* Information correct as of March 1 2010.