Investment

Fixed Interest

Fixed interest investments, or bonds as they are commonly known, play an important role in a diversified investment strategy, providing steady and reliable income – an important feature for many investors – and a stabilising effect during periods of sharemarket volatility.

Typically, fixed interest funds invest in debt securities issued by governments, as well as investment grade debt securities issued by companies.

As fixed interest securities have longer investment timeframes than cash, they usually offer a higher interest rate or yield than traditional cash investments.

Vanguard offers five fixed interest options to investors with $500,000 or more to invest:

Benefits

low to medium risk
steady and reliable income stream and some potential for capital growth
potential for higher yields than cash
international fixed interest options provide opportunities to increase diversification
can help stabilise returns during periods of share market volatility when used as part of a diversified investment strategy

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Knowledge Centre

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

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 Fund	UBS Australian Bank Bill Index	$500,000	Nil	Withdrawals are normally paid within two business days	Monthly	Nil	4 Stars	-	-
Vanguard® Cash Plus Index Fund	Vanguard Cash Plus Index (custom index)	$500,000	Nil	Withdrawals are normally paid within two 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 Australian Government Bond Index	$500,000	Nil	Withdrawals are normally paid within four business days	Quarterly	0.05%/ 0.05%	4 Stars	-	-
Vanguard® Diversified Bond Index Fund	UBS Australian Composite Bond Index and Barclays Capital Global Aggregate ex Securitised Index hedged into AUD	$500,000	Nil	Withdrawals are normally paid within four business days	Quarterly	0.16%/0.16%	-	-	-
Vanguard® Australian Fixed Interest Index Fund	UBS Australian Composite Bond Index	$500,000	Nil	Withdrawals are normally paid within four business days	Quarterly	0.10%/ 0.10%	4 Stars	Recommended	Recommended
Vanguard® International Fixed Interest Index Fund (Hedged)	Barclays Capital Global Treasury Index hedged into AUD	$500,000	Nil	Withdrawals are normally paid within four business days	Quarterly	0.15%/ 0.15%	4 Stars	Recommended	Recommended
Vanguard® International Credit Securities Index Fund (Hedged)	Barclays Capital Global Aggregate Government-related and Corporate Index hedged into AUD	$500,000	Nil	Withdrawals are normally paid within four business days	Quarterly	0.30%/ 0.30%	-	Recommended	Recommended
Infrastructure - Infrastructure funds suit investors with a longer-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® Global Infrastructure Fund	Vanguard Global Infrastructure Index in AUD (custom index)	$500,000	Nil	Withdrawals are normally paid within four business days	Quarterly	0.30%/ 0.30%	4 Stars	Recommended	Recommended
Vanguard® Global Infrastructure Fund (Hedged)	Vanguard Global Infrastructure Index hedged into AUD (custom index)	$500,000	Nil	Withdrawals are normally paid within four business days	Quarterly	0.35%/ 0.35%	4 Stars	Recommended	Recommended
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 four 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 AUD	$500,000	Nil	Withdrawals are normally paid within four 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 hedged into AUD	$500,000	Nil	Withdrawals are normally paid within four business days	Quarterly	0.35%/ 0.35%	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 four business days	Quarterly	0.20%/ 0.10%	4 Stars	Recommended	Recommended
Vanguard® Australian High Yield Shares Fund	FTSE ASFA Australia High Dividend Yield Index	$500,000	Nil	Withdrawals are normally paid within four business days	Quarterly	0.20%/ 0.10%	4 Stars	Investment Grade	Investment Grade
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 four business days	Quarterly	0.30%/ 0.10%	4 Stars	Recommended	Recommended
Vanguard® International Shares Index Fund (Hedged) - AUD Class	MSCI World ex-Australia Index hedged to AUD	$500,000	Nil	Withdrawals are normally paid within four business days	Quarterly	0.35%/ 0.15%	4 Stars	Recommended	Recommended
Vanguard® International Shares Index Fund (Hedged) - NZD Class	MSCI World ex-Australia Index hedged to NZD	$500,000	Nil	Withdrawals are normally paid within four business days	Quarterly	0.35%/ 0.15%	4 Stars	Recommended	Recommended
Vanguard® International Small Companies Index Fund	MSCI World ex-Australia Small Cap Index in AUD	$500,000	Nil	Withdrawals are normally paid within four business days	Quarterly	0.35%/ 0.25%	4 Stars	-	-
Vanguard® International Small Companies Index Fund (Hedged)	MSCI World ex-Australia Small Cap hedged to AUD	$500,000	Nil	Withdrawals are normally paid within four business days	Quarterly	0.40%/ 0.30%	4 Stars	-	-
Vanguard® Emerging Markets Shares Index Fund	MSCI Emerging Markets Index in AUD	$500,000	Nil	Withdrawals are normally paid within five business days	Quarterly	0.60%/ 0.60%	4 Stars	Recommended
Diversified - Diversified 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	70% income oriented and 30% growth oriented assets (Weighted average of target indexes of the underlying Vanguard Wholesale Funds)	$500,000	Nil	Withdrawals are normally paid within four business days	Quarterly	0.12%/ 0.09%	4 Stars	Highly Recommended	Recommended
Vanguard® Balanced Index Fund	50% income oriented and 50% growth oriented assets (Weighted average of target indexes of the underlying Vanguard Wholesale Funds)	$500,000	Nil	Withdrawals are normally paid within four business days	Quarterly	0.18%/ 0.12%	4 Stars	Highly Recommended	Recommended
Vanguard® Growth Index Fund	30% income oriented and 70% growth oriented assets (Weighted average of target indexes of the underlying Vanguard Wholesale Funds)	$500,000	Nil	Withdrawals are normally paid within four business days	Quarterly	0.23%/ 0.15%	4 Stars	Highly Recommended	Recommended
Vanguard® High Growth Index Fund	10% income oriented and 90% growth oriented assets (Weighted average of target indexes of the underlying Vanguard Wholesale Funds)	$500,000	Nil	Withdrawals are normally paid within four business days	Quarterly	0.26%/ 0.15%	4 Stars	Highly Recommended	Recommended

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