Vanguard Global Aggregate Bond Index Fund (Hedged)
About this Fund
|FUND MANAGER||Vanguard Investments Australia|
|ASSET CLASS||EXCHANGE TRADED FUNDS|
The Fund seeks to track the return of the Bloomberg Global Aggregate Float-Adjusted and Scaled Index hedged into Australian
The Fund aims to hold an appropriate number of securities so as to produce a portfolio risk exposure profile consistent with that of
|BENCHMARK||Bloomberg Barclays Global Aggregate Float-Adjusted and Scaled Index hedged into AUD|
|FUND SIZE||Bloomberg Barclays Global Aggregate Float-Adjusted and Scaled Index hedged into AUD|
|NO. OF HOLDINGS||5000+|
Benefits of investing in the Vanguard Global Aggregate Bond Index Fund (Hedged)
The significant features and benefits of investing in the Fund include:
Competitive long-term performance
Vanguard's investment approach provides investors with an efficient way to capture long-term market performance.
The Fund provides exposure to a diversified portfolio of securities, which means the Fund is less exposed to the performance fluctuations of individual securities. This moderates the volatility of the portfolio and smooths out' investment returns over time. The Fund provides exposure to a wide selection of available securities in the relevant index, generally holding significantly more securities than most active funds with the same benchmark. From time to time, however, the number of securities in a given index may reduce due to factors such as index rebalancing.
Low cost investing
The Fund has low ongoing fees as we strive to minimise the costs of managing and operating the Fund. The Fund typically has low portfolio turnover resulting in low trading costs such as brokerage and other transaction costs.
Benefits of investing with Vanguard
Stability and experience
The Vanguard Group, Inc. was established in 1975 and has been a leader in low cost investing ever since. In Australia, Vanguard leverages the scale, experience and resources of our established global business. Investing in the funds allows you to access the knowledge and skill of Vanguard as a specialist investment manager.
The Vanguard Group, Inc. was founded on a simple but revolutionary idea - that an investment company should manage the funds it offers in the sole interest of its clients. From rigorous risk management to transparent pricing to plain talk communications, we put our clients' interests first.
Investors can't control the markets, but they can control the costs of investing. Providing low cost investments isn't a pricing strategy for us. It's how we do business. Vanguard's scale also helps to keep costs low.
Investors seeking exposure to a diversified portfolio of international fixed interest securities that is relatively unaffected by currency fluctuations.
|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 seeking exposure to a diversified portfolio of international fixed interest securities
About the Fund
The Fund provides low cost exposure to high-quality, income-generating securities issued by governments, government-owned entities, government-guaranteed entities, investment-grade corporate issues and securitised assets from around the world. The investments in the Fund are predominantly rated BBB- or higher by Standard & Poor's or equivalent ratings agency. The Fund is hedged to Australian dollars so the value of the Fund is relatively unaffected by currency fluctuations.
How we invest your money
The Fund seeks to track the return of the Bloomberg Barclays Global Aggregate Float-Adjusted and Scaled Index hedged into Australian dollars before taking into account fees, expenses and tax.
The Bloomberg Barclays Global Aggregate Float-Adjusted and Scaled Index hedged into Australian dollars is a market value weighted index comprised of global investment grade securities (bonds). This includes government, government-related, corporate and securitised fixed rate bonds from both developed and emerging market issuers.
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 securities included in the index or securities that provide similar characteristics to those securities 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 gain exposure to securities directly or through interests in other funds, such as exchange traded funds.
The Fund may utilise derivative instruments including futures traded on a licensed exchange and over the counter derivative financial instruments. Derivative instruments are used to manage the overall interest rate and credit risk exposure of the Fund where it is either unable to invest directly in physical securities or is in the Fund's best interest to do so. Derivative financial instruments will not be used to leverage the assets of the Fund. Vanguard will seek to hedge the Fund's currency exposure back to the Australian dollar using forward foreign exchange contracts.
Strategic asset allocation