The Fund provides low-cost access to a broadly diversified range of securities that excludes companies involved in certain activities.

The Fund seeks to track the return of the MSCI World ex Australia ex Tobacco ex Controversial Weapons ex Nuclear Weapons 
Index (“The Index”) (with net dividends reinvested) hedged into Australian dollars (AUD) before taking into account fees, expenses 
and tax.

Benefits of investing in the Vanguard International Shares Select Exclusions Index Fund - AUD 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.

Diversification

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.

Tax efficiency

Vanguard's buy and hold strategy means that securities are generally held within a portfolio over a long period of time. If certain securities are held for more than 12 months, any capital gain (if applicable) on the disposal of those securities may be reduced under the capital gains tax discount rules - a tax efficient outcome for eligible investors.

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.

Client focus

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.

Low costs

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.

Risk level

High

Investor suitability

Investors seeking exposure to a diversified portfolio of international shares included in the index.

Investors seeking exposure to a diversified portfolio of international shares included in the index that is relatively unaffected by currency fluctuations.

About the Fund

The Fund provides low-cost access to a broadly diversified range of securities that excludes companies involved in the production of tobacco, controversial weapons and companies that manufacture nuclear weapons, components that were developed or significantly modified for exclusive use in nuclear weapons, and companies that provide auxiliary services related to nuclear weapons. The Fund is hedged to Australian dollars so the value of the Fund is relatively unaffected by currency fluctuations.

Investment objective

Vanguard International Shares Select Exclusions Index Fund seeks to track the return of the MSCI World ex Australia, ex Tobacco, ex Controversial Weapons, ex Nuclear Weapons (with net dividends reinvested) hedged into Australian dollars Index before taking into account fees, expenses and tax.

How we invest your money

The Fund seeks to track the return of the MSCI World ex Australia, ex Tobacco, ex Controversial Weapons, ex Nuclear Weapons (with net dividends reinvested) hedged into Australian dollars Index before taking into account fees, expenses and tax.

The Fund holds all of the securities in the index most of the time, allowing for individual security weightings to vary marginally from the index from time to time. The Fund may hold securities that have been removed from or are expected to be included in the index. The Fund also holds forward foreign exchange contracts and may invest in futures contracts.

The MSCI World ex Australia, ex Tobacco, ex Controversial Weapons, ex Nuclear Weapons Index comprises securities (shares) listed on the exchanges of the world's major developed economies. The index excludes securities involved in the production, manufacturing or significant sales of tobacco, controversial weapons, and companies that manufacture nuclear weapons, manufacture components that were developed or significantly modified for exclusive use in nuclear weapons, and companies that provide auxiliary services related to nuclear weapons.

The Fund may engage in securities lending. Securities lending is a common practice where holders of securities make short term loans of shares in return for a fee, to incrementally increase returns to investors.

Strategic asset allocation*

• International shares (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.