Vanguard Balanced Index Fund
About this Fund
|FUND MANAGER||Vanguard Investments Australia|
|ASSET CLASS||EXCHANGE TRADED FUNDS|
Investment strategy and investment return objective. The Fund seeks to track the weighted average return of the indices of the underlying funds in proportion to the Strategic Asset Allocation (SAA), before taking into account fees, expenses and tax.
|INVESTMENT PROFILE||Vanguard Balanced Index Fund seeks to track the weighted average return of the various indices of the underlying funds in which it invests, in proportion to the Strategic Asset Allocation, before taking into account fees, expenses and tax.|
|BENCHMARK||Balanced Composite Index - Wholesale|
|FUND SIZE||Balanced Composite Index - Wholesale|
|NO. OF HOLDINGS|
Benefits of investing in the Vanguard Balanced Index Fund
The significant features and benefits of investing in the Fund include:
The significant features and benefits of investing with Vanguard include:
Risk Level - Medium
Relatively stable returns, with the potential for higher returns than low risk investments, however there is the potential for below average returns and/or some loss of capital.
Investors with a medium term investment horizon, seeking a balance between income and capital growth potential.
|RISK LEVEL||Medium: The potential for relatively higher returns than lower risk investments with the potential for loss of capital over the medium term|
Investors with a medium term investment horizon, seeking a balance between income and
How Vanguard invests
While 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 management
To 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.
How we invest your money
Investment strategy and investment return objective
The Fund seeks to track the weighted average return of the various indices of the underlying funds in which the Fund invests in proportion to the Strategic Asset Allocation (SAA) for the Fund, before taking into account fees, expenses and tax. The Fund holds units in underlying funds, including but not limited to:
*The Vanguard Global Aggregate Bond Index Fund (Hedged) is not currently available at the date of this PDS. It is expected to become available during July 2017. This Fund will seek to track the return of the Bloomberg Barclays Global Aggregate Bond Index (Hedged to AUD) before taking into account fees, expenses and tax.
Vanguard may, at its discretion, commence investing directly in the securities that are, have been or are expected to be in the indices of the underlying funds or in different funds. For more information about the underlying funds and the indices that they track, visit the Vanguard website at www.vanguard.com.au.
Income assets (SAA (%) / Range (%))
Total income assets 50 / 48 - 52
Growth assets (SAA (%) / Range (%))
Total growth assets 50 / 48 - 52