Vanguard International Fixed Interest Index Fund (Hedged)
About this Fund
Fund Detail
PDS | https://informedinvestor.com.au/view/pds/100060-2023-10-31-03:33.pdf |
FUND MANAGER | Vanguard Investments Australia |
ASX Code | |
APIR | VAN0103AU |
ASSET CLASS | EXCHANGE TRADED FUNDS |
INVESTMENT STYLE | The Fund seeks to track the return of the Bloomberg Global Treasury Scaled Index hedged into Australian dollars before taking into |
INVESTMENT PROFILE | The Fund aims to hold an appropriate number of securities so as to produce a portfolio risk exposure profile consistent with that of |
CURRENCY MANAGEMENT | Hedged |
INCEPTION DATE | 27-07-1999 |
BENCHMARK | Bloomberg Barclays Global Treasury Index hedged into Australian Dollars |
FUND SIZE | Bloomberg Barclays Global Treasury Index hedged into Australian Dollars |
DISTRIBUTION FREQUENCY | Quarterly |
NO. OF HOLDINGS | 1000+ |
FEES | 0.26% p.a. |
STRUCTURE |
Benefits
Benefits | Benefits of investing in the Vanguard International Fixed Interest Index Fund (Hedged)The significant features and benefits of investing in the Fund include:
The significant features and benefits of investing with Vanguard include:
Risk Level - LowRelatively stable returns, with a low potential for loss of capital. Investor SuitabilityInvestors seeking exposure to a diversified portfolio of international government fixed interest securities that is relatively unaffected by currency fluctuations. |
RISK LEVEL | Low: The potential for relatively stable returns, with a low potential for loss of capital |
INVESTOR SUITABILITY | Investors seeking exposure to a diversified portfolio of international government fixed interest securities that is relatively unaffected by currency fluctuations. |
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
How we invest your moneyInvestment strategy and investment return objectiveThe Fund seeks to track the return of the Bloomberg Barclays Global Treasury Index hedged into Australian dollars before taking into account fees, expenses and tax. The Bloomberg Barclays Global Treasury Index is a value-weighted index of securities (bonds) issued by the governments of countries that hold an investment grade credit rating. Bond indices change far more quickly than share indices because bonds have a finite life (maturity). Index eligibility criteria such as time to maturity and investment grading may cause bonds to enter or fall out of the index at month end when the index is rebalanced. Every time a security is either added to or removed from the benchmark, its composition changes and requires Vanguard to modify the portfolio. The Fund aims to hold an appropriate number of securities so as to produce a portfolio risk exposure profile consistent with that of the index. This is generally achieved by holding a representative sample of the securities included in the index. Security weightings in the Fund may vary from the index weightings. The Fund may exclude certain securities that are included in the index or may invest in securities that have been or are expected to be included in the index. The Fund may utilise futures traded on a licensed exchange to manage the overall interest rate risk exposure of the portfolio where it is unable to invest directly in physical securities. To help manage counterparty risk, Vanguard may employ collateralisation of the contracts as part of its currency hedging program. As part of the currency hedging and collateralisation program the Fund may utilise derivatives (including over-the-counter derivatives) to effectively manage the cash held for collateral requirements. These derivatives are used solely to support the hedging of currency risk on assets held by the Fund. The Fund may also use over-the-counter derivatives generally to manage the overall interest rate and credit risk exposure of the portfolio. The use of over-the-counter derivatives, other than forward foreign exchange contracts, will not be used to a material extent - that is, use will generally not exceed 5% of the net asset value of the Fund, other than temporarily and in exceptional circumstances. Importantly, derivatives will not be used to leverage the assets of the Fund. Strategic asset allocation*International fixed interest (Hedged to AUD) 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. |