Vanguard Diversified Bond Index Fund
About this Fund
Fund Detail
PDS | https://informedinvestor.com.au/view/pds/100086-2024-02-16-03:34.pdf |
FUND MANAGER | Vanguard Investments Australia |
ASX Code | |
APIR | VAN0042AU |
ASSET CLASS | EXCHANGE TRADED FUNDS |
INVESTMENT STYLE | The Fund seeks to track the return of a tailored diversified index representing a 30% allocation to the Bloomberg AusBond |
INVESTMENT PROFILE | The Fund provides low-cost access to a broadly diversified portfolio of Australian and International bonds. It invests in high-grade securities issued by government, government-owned and government guaranteed entities, corporate issues and securitised assets. The Fund delivers regular income along with moderate long-term growth. |
CURRENCY MANAGEMENT | Hedged |
INCEPTION DATE | 09-05-2011 |
BENCHMARK | Diversified Bond Composite Index - Wholesale |
FUND SIZE | Diversified Bond Composite Index - Wholesale |
DISTRIBUTION FREQUENCY | Quarterly |
NO. OF HOLDINGS | |
FEES | 0.29% p.a. |
STRUCTURE |
Benefits
Benefits | Benefits of investing in the Vanguard Diversified Bond Index FundThe significant features and benefits of investing in the Fund include:
The significant features and benefits of investing with Vanguard include:
Risk Level - ModerateRelatively stable returns, with a potential for loss of capital over shorter time periods. Investor SuitabilityInvestors with a medium term investment horizon, seeking an income stream through Australian and international fixed interest securities. |
RISK LEVEL | Medium: The potential for relatively higher returns than lower risk investments with the potential for loss of capital over the medium term |
INVESTOR SUITABILITY | Investors with a medium term investment horizon, seeking an income stream through |
Risks
Title | |
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 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 a tailored diversified index representing a 30% allocation to the Bloomberg AusBond Composite 0+ Yr Index and a 70% allocation to the Bloomberg Barclays Global Aggregate Index (hedged to Australian dollars), before taking into account fees, expenses and tax. The Fund meets its investment strategy by investing in the following underlying funds:
*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 returns 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 and www.vanguard.com.au. Strategic asset allocationIncome assets (SAA (%) / Range (%))
|