Vanguard Australian Shares Index Fund
About this Fund
Fund Detail
PDS | https://informedinvestor.com.au/view/pds/100059-2024-02-16-03:34.pdf |
FUND MANAGER | Vanguard Investments Australia |
ASX Code | |
APIR | VAN0002AU |
ASSET CLASS | EXCHANGE TRADED FUNDS |
INVESTMENT STYLE | The Fund provides low cost, broadly diversified exposure to Australian companies and property trusts listed on the Australian Securities Exchange. It also offers potential long-term capital growth along with dividend income and franking credits. |
INVESTMENT PROFILE | The Vanguard Australian Shares Index Fund seeks to track the return of the S&P/ASX 300 Index before taking into account fees, expenses and tax. |
CURRENCY MANAGEMENT | Unhedged |
INCEPTION DATE | 30-06-1997 |
BENCHMARK | S&P/ASX 300 Index |
FUND SIZE | S&P/ASX 300 Index |
DISTRIBUTION FREQUENCY | Quarterly |
NO. OF HOLDINGS | Around 300 |
FEES | 0.16% p.a. |
STRUCTURE |
Benefits
Benefits | Benefits of investing in the Vanguard Australian Shares Index Fund
The significant features and benefits of investing with Vanguard include:
Risk level - HighThe potential for higher returns than lower risk investments, however there is the higher potential for below-average returns and/or some loss of capital. Investor SuitabilityBuy and hold investors seeking long-term capital growth, some tax-effective income, and with a higher tolerance for the risks associated with share market volatility. |
RISK LEVEL | High: The potential for higher returns than lower risk investments, however there is the higher potential for below average returns and/or loss of capital. |
INVESTOR SUITABILITY | Buy and hold investors seeking long-term capital growth, some tax effective income, and with a higher tolerance for the risks associated with share market volatility |
Risks
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Detail |
Key Features
How Vanguard investsWhile maintaining the objective of a fund, Vanguard tries to minimise the transaction costs associated with managing cash flows and making adjustments for index or benchmark changes. Cash and liquidity managementTo manage day-to-day transaction requirements such as investor withdrawals and collateral requirements, the Fund may maintain a variable balance of cash. To effectively manage this cash, the Fund may transact in cash equivalent instruments that aim to preserve capital and provide liquidity to the Fund. Cash equivalent instruments include, but are not limited to, high quality short-term money market instruments and short dated debt securities such as government issued securities, government-related (semi-government) issued securities and repurchase agreements, where a high quality government or government related security is received or provided as collateral for the term of the agreement. Derivative financial instrumentsA fund may utilise over-the-counter and exchange traded derivatives such as futures, forwards and swaps, to help achieve its investment objective. Derivative financial instruments may be used for the purposes of maintaining fund liquidity and managing market exposure. Derivative financial instruments will not be used to leverage the assets of the Funds. BorrowingsWhile the Funds' constitutions permit borrowing, Vanguard does not currently intend to borrow for the purposes of gearing. A Fund will only borrow where Vanguard believes it is in the best interests of investors to do so. |
Mandate
Investment strategy and investment return objectiveThe Fund seeks to track the return of the S&P/ASX 300 Index before taking into account fees, expenses, and tax. The S&P/ASX 300 Index includes the large cap, mid cap and small cap components of the S&P/ASX index family. The index covers approximately 81% of Australian equity market capitalisation. The Fund will hold most of the securities in the index, allowing for individual security weightings to vary marginally from the index from time to time. The Fund may invest in securities that have been removed from or are expected to be included in the index. How we invest your moneyStrategic asset allocation* Australian shares 100% *This is a targeted strategic asset allocation. In addition, cash may be held for the purposes of liquidity management and derivatives may be used to manage market exposure. |