Investment

Diversified Bond

Investment details and fees

Fund commenced19 Jan 2000

Minimum investment amounts

Initial investment$5,000

Additional investment - cheque$1,000

Additional investment - BPAY®$100

Minimum account balance$3,000

Minimum withdrawal or switch$1,000

Fees and costs

Establishment feeNil

Application/contribution feeNil

Withdrawal feeNil

Termination feeNil

Switching feeNil

Management costs

First $50,0000.70% p.a

Next $50,0000.50% p.a

Balance over $100,0000.35% p.a

Buy spread cost (purchase)0.16%

Sell spread cost (withdrawal)0.16%

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Fund ratings

Standard & Poor'sFour Stars

The Vanguard Index Diversified Bond Fund invests in both Australian and international fixed interest securities (bonds). The Australian bond market comprises approximately 330 securities, whilst the international bond market comprises approximately 10,000 securities.

Including both Australian and international bonds in your portfolio has two major benefits:

increases diversification, which lowers risk
provides opportunities for enhanced returns without resorting to lower grade, higher risk debt

Who it may suit

short to medium term investors (usually 3 to 5 years)
investors requiring a high quality, high yielding income stream such as retirees or 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
self managed super funds

Objectives

To match the return (income and capital appreciation) of a customised index before taking into account fund fees and expenses.

The index comprises:

40% UBS Australian Composite Bond Index
60% Barclays Capital Global Aggregate ex Securitised Index (hedged to Australian dollars)

Benefits

Diversification

the UBS Australian Composite Bond Index comprises approximately 330 Australian fixed interest securities (bonds) and the Barclays Capital Global Aggregate ex Securitised Index comprises approximately 10,000 international fixed interest securities (bonds)
diversified approach lowers risk while providing opportunities for enhanced returns

International exposure

International exposure provides opportunities to enhance returns

Income and capital growth potential

steady and reliable income stream and potential for some capital growth
quarterly distributions

Low scaled fees

low management fees and no entry or exit fees (other than buy/sell spread costs)
scaled management fees apply to balances over $50,000

Regular savings plan

once you've opened your investment with $5,000 or more, you can use BPAY® to start a regular investment plan with as little as $100

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Managed funds up to $500,000 - Funds at a Glance*

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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	Management Costs
	Index/ Benchmark	Minimum Initial Application	Application Fee	Access to Funds	Income Distributions	Buy/Sell Spread	For first $50,000	For next $50,000	Balance over $100,000
Vanguard® Index Cash Plus Fund	A customised Index, the Vanguard Cash Plus Index	$5,000	Nil	Withdrawals are normally paid within four business days	Quarterly	Nil	0.70% p.a	0.50% p.a	0.35% p.a

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	Management Costs
	Index/ Benchmark	Minimum Initial Application	Application Fee	Access to Funds	Income Distributions	Buy/Sell Spread	For first $50,000	For next $50,000	Balance over $100,000
Vanguard® Index Diversified Bond Fund	A customised Index comprising a 40% allocation to Australian fixed interest securities (bonds) and 60% allocation to international bonds.	$5,000	Nil	Withdrawals are normally paid within four business days	Quarterly	0.16%/ 0.16%	0.75% p.a	0.50% p.a	0.35% p.a

PropertyProperty 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	Management Costs
	Index/ Benchmark	Minimum Initial Application	Application Fee	Access to Funds	Income Distributions	Buy/Sell Spread	For first $50,000	For next $50,000	Balance over $100,000
Vanguard® Index Australian Property Securities Fund	S&P/ASX 300 A-REIT Index	$5,000	Nil	Withdrawals are normally paid within four business days	Half Yearly	0.20%/ 0.20%	0.90% p.a	0.60% p.a	0.35% p.a

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	Management Costs
	Index/ Benchmark	Minimum Initial Application	Application Fee	Access to Funds	Income Distributions	Buy/Sell Spread	For first $50,000	For next $50,000	Balance over $100,000
Vanguard® Index Australian Shares Fund	S&P/ASX 300 Index	$5,000	Nil	Withdrawals are normally paid within four business days	Half Yearly	0.20%/ 0.10%	0.75% p.a	0.50% p.a	0.35% p.a
Vanguard® High Yield Australian Shares Fund	FTSE ASFA Australia High Dividend Yield Index	$5,000	Nil	Withdrawals are normally paid within four business days	Quarterly	0.20%/ 0.10%	0.90% p.a	0.60% p.a	0.45% p.a

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

	Index/ Benchmark	Minimum Initial Application	Application Fee	Access to Funds	Income Distributions	Buy/Sell Spread	Management Costs
	Index/ Benchmark	Minimum Initial Application	Application Fee	Access to Funds	Income Distributions	Buy/Sell Spread	For first $50,000	For next $50,000	Balance over $100,000
Vanguard® Index International Shares Fund	MSCI World ex-Australia Index in AUD	$5,000	Nil	Withdrawals are normally paid within four business days	Half Yearly	0.30%/ 0.10%	0.90% p.a	0.60% p.a	0.35% p.a
Vanguard® Index Hedged International Shares Fund	MSCI World ex-Australia Index hedged to AUD	$5,000	Nil	Withdrawals are normally paid within four business days	Half Yearly	0.35%/ 0.15%	0.90% p.a	0.60% p.a	0.35% p.a

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	Management Costs
	Index/ Benchmark	Minimum Initial Application	Application Fee	Access to Funds	Income Distributions	Buy/Sell Spread	For first $50,000	For next $50,000	Balance over $100,000
Vanguard® LifeStrategy® Conservative Fund	70% income and 30% growth (Weighted average of target indexes of the underlying Vanguard Wholesale Index Funds)	$5,000	Nil	Withdrawals are normally paid within four business days	Half Yearly	0.12%/ 0.09%	0.90% p.a	0.60% p.a	0.35% p.a
Vanguard® LifeStrategy® Balanced Fund	50% income and 50% growth (Weighted average of target indexes of the underlying Vanguard Wholesale Index Funds)	$5,000	Nil	Withdrawals are normally paid within four business days	Half Yearly	0.18%/ 0.12%	0.90% p.a	0.60% p.a	0.35% p.a
Vanguard® LifeStrategy® Growth Fund	30% income and 70% growth (Weighted average of target indexes of the underlying Vanguard Wholesale Index Funds)	$5,000	Nil	Withdrawals are normally paid within four business days	Half Yearly	0.23%/ 0.15%	0.90% p.a	0.60% p.a	0.35% p.a
Vanguard® LifeStrategy® High Growth Fund	10% income and 90% growth (Weighted average of target indexes of the underlying Vanguard Wholesale Index Funds)	$5,000	Nil	Withdrawals are normally paid within four business days	Half Yearly	0.26%/ 0.15%	0.90% p.a	0.60% p.a	0.35% p.a

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