Vanguard Australian Shares High Yield Fund
About this Fund
Fund Detail
PDS | https://informedinvestor.com.au/view/pds/100084-2024-02-16-03:34.pdf |
FUND MANAGER | Vanguard Investments Australia |
ASX Code | |
APIR | VAN0104AU |
ASSET CLASS | EXCHANGE TRADED FUNDS |
INVESTMENT STYLE | The Fund seeks to track the return of the FTSE Australia High Dividend Yield Index before taking into account fees, expenses and tax. The FTSE Australia High Dividend Yield Index is a real-time, dividend focussed index consisting of companies with higher forecast dividends relative to other companies listed on the Australian Stock Exchange (ASX). |
INVESTMENT PROFILE | The Fund will hold or be exposed to most of the securities in the index, allowing for individual security weightings to vary marginally |
CURRENCY MANAGEMENT | Unhedged |
INCEPTION DATE | 14-06-2000 |
BENCHMARK | FTSE ASFA Australia High Dividend Yield Index |
FUND SIZE | FTSE ASFA Australia High Dividend Yield Index |
DISTRIBUTION FREQUENCY | Quarterly |
NO. OF HOLDINGS | 30-50 |
FEES | 0.35% p.a. |
STRUCTURE |
Benefits
Benefits | Benefits of investing in the Vanguard Australian Shares High Yield FundThe significant features and benefits of investing in the Fund include:
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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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 instruments A 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. Borrowings While 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 FTSE ASFA Australia High Dividend Yield Index before taking into account fees, expenses, and tax. The FTSE ASFA Australia High Dividend Yield Index is a real-time, market capitalisation-weighted index consisting of companies with higher forecast dividends relative to other companies listed on the Australian Securities Exchange ("ASX). The securities in the index are selected from the companies included in the FTSE ASFA Australia 200 Index (Eligible Securities), a broad market index of ordinary and preferred equity securities listed on the ASX. Real estate investment trusts ("A-REITS) are excluded from the Eligible Securities. The Eligible Securities are ranked according to each security's median 12 month forecast dividend yield (sourced from I/B/E/S - the Institutional Brokers' Estimate System) with companies not forecast to pay dividends in the next 12 months being eliminated. Companies with the highest forecast dividend yield are included in the index until 50% of the float adjusted market capitalisation of the eligible securities is met. Lastly, diversification requirements are applied to restrict the proportion of the index invested in any one industry or company. Industries are grouped according to the Industry Classification Benchmark ("ICB), a global standard developed by FTSE. No more than 40% of the index can be invested in any one industry, and no more than 10% can be invested in any one company. The index constituents are reviewed on a half-yearly basis in June and December based on data from the close of business on the last trading day of the previous month. 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.
Asset Allocation
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