Vanguard Investor Cash Plus Fund

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Vanguard Investor Cash Plus Fund
For the latest information on this Fund including performance data, please visit our website.
Investment strategy and investment return objective
The Vanguard Investor Cash Plus Fund aims to deliver regular income and a total return that exceeds that of the Bloomberg AusBond Bank Bill Index in two out of every three years, before taking into account fees, expenses and tax.
The Vanguard Investor Cash Plus Fund aims to meet its investment objective by investing in the Vanguard Cash Plus Fund (Underlying Fund).
Vanguard‘s approach to managing the Underlying Fund involves investing in high-quality money market and debt securities issued by a variety of government, government related and corporate entities in Australia.
The Underlying Fund targets a modified duration of seven to eight months to take advantage of the term yield premium that exists in this segment of the debt securities’ yield curve over the long term. Combining short term debt securities with money market securities provides the potential for the Underlying Fund and consequently the Fund to deliver higher yields than traditional style cash funds.
The Underlying Fund’s investment process is governed by a tightly controlled investment framework that seeks to reduce credit risk and ensure diversity of holdings across issuers. As part of this framework, the investments to which the Underlying Fund is exposed are restricted to:
a) Commonwealth Government securities;
b) high quality debt securities;
c) deposits secured by a) or b);
d) cash deposits with licensed banks; and
e) derivative financial instruments provided they are not used to leverage the assets of the Underlying Fund.
Additional controls are also employed to manage risk and ensure liquidity of the Underlying Fund. These include:
 the Underlying Fund’s modified duration is not permitted to exceed nine months
 at least 65% of the Underlying Fund’s investments to be held in liquid securities
Strategic asset allocation* Australian fixed interest 100%.
Minimum suggested investment timeframe Three year.
Summary risk level
Low – The potential for relatively stable returns, with a low potential for loss of capital.
Who it may suit
Investors with a short-term investment horizon or seeking a steady and reliable income stream.

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• This is a targeted strategic asset allocation. In addition, cash may be held for the purpose of liquidity management and derivatives may be used to manage market exposure
  Vanguard Investor Funds Product Disclosure Statement 13
  Vanguard Index Diversified Bond Fund
  For the latest information on this Fund including performance data, please visit our website. Investment strategy and investment return objective
  The 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 Bond Index (hedged to Australian dollars), before taking into account fees, expenses and tax.
  The Vanguard Index Diversified Bond Fund gains its exposure to securities in the index by investing in the following Underlying Funds:
   Vanguard Australian Fixed Interest Index Fund
   Vanguard Global Aggregate Bond Index Fund (Hedged)
  Strategic asset allocation
  Income assets
  SAA (%)
  Range (%)
  Australian fixed interest
  30
  28 – 32
  International fixed interest (Hedged to AUD)
  70
  68 – 72
  Minimum suggested investment timeframe Three years.
  Summary risk level
  Low – The potential for relatively stable returns, with a low potential for loss of capital.
  Who it may suit
  Investors with a medium term investment horizon, seeking an income stream through Australian and international fixed interest securities.
  14
  Connect with Vanguard > vanguard.com.au > 1300 655 101
  Vanguard Index Australian Shares Fund
  For the latest information on this Fund including performance data, please visit our website.
  Investment strategy and investment return objective
  The Vanguard Index Australian Shares Fund seeks to track the return of the S&P/ASX 300 Index before taking into account fees, expenses and tax.
  The Vanguard Index Australian Shares Fund gains its exposure to securities in the index by investing in the Vanguard Australian Shares Index Fund (Underlying Fund).
  The Fund is exposed to all of the securities in the index most of time, allowing for individual security weightings to vary marginally from the index from time to time. The Fund may be exposed to securities that have been removed from or are expected to be included in the index.
  The S&P/ASX 300 Index is liquid, float-adjusted and includes up to 300 of Australia’s largest securities by float-adjusted market capitalisation.
  Strategic asset allocation* Australian shares 100%
  Minimum suggested investment timeframe Seven years.
  Summary risk level
  High – The potential for higher returns than lower risk investments, however there is the higher potential for below-average returns and/or some loss of capital.
  Who it may suit
  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.
• This is a targeted strategic asset allocation. In addition, cash may be held for the purpose of liquidity management and derivatives may be used to manage market exposure
  Vanguard Investor Funds Product Disclosure Statement 15
  Vanguard High Yield Australian Shares Fund
  For the latest information on this Fund including performance data, please visit our website.
  Investment strategy and investment return objective
  The Vanguard High Yield Australian Shares Fund seeks to track the return of the FTSE Australia High Dividend Yield Index before taking into account fees, expenses and tax.
  The Vanguard High Yield Australian Shares Fund gains its exposure to securities in the index by investing in the Vanguard Australian Shares High Yield Fund (Underlying Fund).
  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). The index is calculated on a before tax basis. The Fund is exposed to all of the securities in the index most of time, allowing for individual security weightings to vary marginally from the index from time to time. The Fund may be exposed to securities that have been removed from or are expected to be included in the index.
  The securities in the index are selected from the companies included in the FTSE ASFA Australia 200 Index2 (Eligible Securities), a market capitalisation-weighted 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 12 month forecast dividend yield (sourced from I/B/E/S3 – 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 approximately half of the float adjusted market capitalisation of the Eligible Securities are included. Lastly, diversification requirements are applied to restrict the proportion of the index invested in any one industry4 or company. At each review 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.
  Strategic asset allocation* Australian shares 100%
  Minimum suggested investment timeframe Seven years.
  Summary risk level
  High – The potential for higher returns than lower risk investments, however there is the higher potential for below-average returns and/or some loss of capital.
  Who it may suit
  Buy and hold investors seeking a higher than market average dividend yield and with a higher tolerance for the risks associated with share market volatility.
  2 The FTSE ASFA Australia 200 Index typically represents the largest 200 companies listed on the Australian Securities Exchange meeting certain liquidity, free float criteria. For more information on this index please refer to www.ftse.com
  3 I/B/E/S is the Institutional Brokers’ Estimate System; a data service that collates detailed and consensus estimates of forecast measures of company earnings and performance.
  4 Industries are grouped according to the Industry Classification Benchmark (ICB), a global standard developed by FTSE.
• This is a targeted strategic asset allocation. In addition, cash may be held for the purpose of liquidity management and derivatives may be used to manage market exposure
  Connect with Vanguard 16 > vanguard.com.au > 1300 655 101
  Vanguard Index Australian Property Securities Fund
  For the latest information on this Fund including performance data, please visit our website.
  Investment strategy and investment return objective
  The Vanguard Index Australian Property Securities Fund seeks to track the return of the S&P/ASX 300 A-REIT Index before taking into account fees, expenses and tax.
  The Vanguard Index Australian Property Securities Fund gains its exposure to securities in the index by investing in the Vanguard Australian Property Securities Index Fund (Underlying Fund).
  The Fund is exposed to all of the securities in the index most of time, allowing for individual security weightings to vary marginally from the index from time to time. The Fund may be exposed to securities that have been removed from or are expected to be included in the index.
  The S&P/ASX 300 A-REIT Index comprises property securities (shares) listed on the ASX. These securities are real estate investment trusts and companies that own real estate assets and derive a significant proportion of their revenue from rental income.
  Strategic asset allocation*
  Australian property securities 100%
  Minimum suggested investment timeframe Seven years.
  Summary risk level
  High – The potential for higher returns than lower risk investments, however there is the higher potential for below-average returns and/or some loss of capital.
  Who it may suit
  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.
  *