Investment

Australian Fixed Interest

Investment details and fees

Minimum investment amounts

Initial investment$500,000

Additional investmentsNil

Holding balanceNil

Switch/withdrawalNil

Buy/sell spread

Purchase0.20%

Withdrawal0.20%

Management costs

Management costs0.29% p.a

Ratings

Standard & Poor'sFour Stars

LonsecHighly Recommended

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Bonds, or fixed interest investments as they are commonly known, play an important role in a balanced investment strategy. In addition to providing a regular income stream - an important feature for many investors - bonds can provide a stabilising effect during periods of share market volatility.

Vanguard's Australian Fixed Interest Index Fund invests in a diversified portfolio of around 330 fixed interest securities issued by Commonwealth Government, State Government, semi-government authorities and investment grade corporates.

Who it may suit

short to medium term investors (usually 3 to 5 years)
investors requiring a high quality, high yielding income stream such as retirees or those nearing retirement
investors seeking a low risk, diversified investment portfolio of high quality debt securities
investors looking to add diversification and balance to a share-oriented portfolio
self managed super funds

Objectives

To match the return (income and capital appreciation) of the UBS Australian Composite Bond Index before taking into account expenses, fees and taxes.

Benefits

Diversification

invests in around 330 corporate, semi-Government and Government bonds
diversified approach lowers risk while providing opportunities for enhanced returns

Income and capital growth potential

steady and reliable income stream and potential for some capital growth
quarterly distributions

Low fees

low management fees
no entry fees other than usual buy/sell spreads

Flexibility

easily switch funds with no costs other than usual buy / sell spreads
no minimum additional investment requirements mean you can add to your investment as much and as often as you like

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Resources

Managed over $500,000 - Funds at a Glance*

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Cash Cash Funds maintain liquidity and are lower risk when used as part of diversified investment strategy.

	Index/ Benchmark	Management Costs	Buy/Sell Spreads	Fund Size	No. of Securities in a fund	Income Distributions	Ratings and Recommendations
	Index/ Benchmark	Management Costs	Buy/Sell Spreads	Fund Size	No. of Securities in a fund	Income Distributions	Standard & Poors	Morningstar	Lonsec
Vanguard® Cash Reserve Fund	UBS Australia Bank Bill Index	0.15% p.a	Nil	$959.3m	43	Monthly	4 Stars	-	-
Vanguard® Cash Plus Fund	A customised Index, the Vanguard Cash Plus Index	0.29% p.a	Nil	$892.1m	53	Monthly	3 Stars	-	-

Fixed Interest Fixed interest funds play an important role in a balanced portfolio, providing broad diversification.

	Index/ Benchmark	Management Costs	Buy/Sell Spreads	Fund Size	No. of Securities in a fund	Income Distributions	Ratings and Recommendations
	Index/ Benchmark	Management Costs	Buy/Sell Spreads	Fund Size	No. of Securities in a fund	Income Distributions	Standard & Poors	Morningstar	Lonsec
Vanguard® Australian Government Bond Index Fund	UBS Australian Government Bond Index	0.29% p.a	0.10%/ 0.10%	$45.3m	17	Quarterly	4 Stars	-	-
Vanguard® Australian Fixed Interest Index Fund	UBS Australian Composite Bond Index	0.29% p.a	0.20%/ 0.20	$1,933.0m	324	Quarterly	4 Stars	-	Highly Recommended
Vanguard® International Fixed Interest Index Fund (Hedged)	Barclays Capital Global Treasury Index in $A (Hedged)	0.34% p.a	0.20%/ 0.20%	$2,695.6m	364	Quarterly	4 Stars	-	Recommended
Vanguard® International Credit Securities Index Fund (Hedged)	Barclays Capital Global Aggregate Government-related and Corporate Index in $A (Hedged)	0.34%	0.40%/ 0.40%	$218.5m	676	Quarterly	-	-	-

PropertyProperty securities combine growth and income asset attributes, traditionally providing capital growth potential

	Index/ Benchmark	Management Costs	Buy/Sell Spreads	Fund Size	No. of Securities in a fund	Income Distributions	Ratings and Recommendations
	Index/ Benchmark	Management Costs	Buy/Sell Spreads	Fund Size	No. of Securities in a fund	Income Distributions	Standard & Poors	Morningstar	Lonsec
Vanguard® Australian Property Securities Index Fund	S&P/ASX 300 A-REIT Index	0.34% p.a	0.20%/ 0.20%	$1,174.0m	28	Quarterly	4 Stars	Highly Recommended	Highly Recommended
Vanguard® International Property Securities Index Fund	UBS Global Real Estate Investors Index ex-Australia in $A	0.40% p.a	0.30%/ 0.30%	$215.0m	226	Quarterly	4 Stars	Recommended	Recommended
Vanguard® International Property Securities Index Fund (Hedged)	UBS Global Real Estate Investors Index ex-Australia in $A (Hedged)	0.43% p.a	0.40%/ 0.40%	$147.8m	226	Quarterly	4 Stars	Recommended	Recommended

Australian Shares Australian Shares provide a tax-effective income while capital grows over time.

	Index/ Benchmark	Management Costs	Buy/Sell Spreads	Fund Size	No. of Securities in a fund	Income Distributions	Ratings and Recommendations
	Index/ Benchmark	Management Costs	Buy/Sell Spreads	Fund Size	No. of Securities in a fund	Income Distributions	Standard & Poors	Morningstar	Lonsec
Vanguard® Australian Shares Index Fund	S&P/ASX 300 Index	0.34% p.a	0.20%/ 0.10%	$3,042.8.2m	280	Quarterly	4 Stars	Recommended	Recommended
Vanguard® Australian Shares High Yield Fund	S&P/ASX 200 ex-A-REIT Index	0.40% p.a	0.20%/ 0.10%	$219.6m	105	Monthly	4 Stars	Investment Grade	Recommended
Vanguard® Sustainability Leaders Australian Shares Fund	S&P/ASX 200 Index	0.50% p.a	0.20%/ -0.20%	$149.0m	74	Quarterly	-	-	-

International Shares International Shares provide diversification across countries, industries and companies which help lower risk.

	Index/ Benchmark	Management Costs	Buy/Sell Spreads	Fund Size	No. of Securities in a fund	Income Distributions	Ratings and Recommendations
	Index/ Benchmark	Management Costs	Buy/Sell Spreads	Fund Size	No. of Securities in a fund	Income Distributions	Standard & Poors	Morningstar	Lonsec
Vanguard® International Shares Index Fund	MSCI World ex-Australia Index in $A	0.36% p.a	0.30%/ 0.10%	$3,787.4m	1,380	Quarterly	4 Stars	Recommended	Recommended
Vanguard® International Shares Index Fund (Hedged)	MSCI World ex-Australia Index in $A	0.39% p.a	0.40%/ 0.20%	$1,340.4m	1,380	Quarterly	4 Stars	Recommended	Recommended
Vanguard® Emerging Markets Shares Index Fund	MSCI Emerging Markets Index ex-Columbia and Pakistan in $A	0.56% p.a	0.75%/ 1.00%	$294.4m	688	Quarterly	4 Stars	-	-
Vanguard® International Small Companies Index Fund	MSCI Small Cap Index ex-Australia	0.39% p.a	0.35%/ 0.25%	$81.4m	2,192	Quarterly	4 Stars	-	-
Vanguard® International Small Companies Index Fund (Hedged)	MSCI Small Cap Index ex-Australia (Hedged) in $A	0.42% p.a	0.45%/ 0.35%	$73.3m	2,192	Quarterly	4 Stars	-	-
Vanguard® Global Infrastructure Fund	A customised Index, the Vanguard Global Infrastructure Index	0.49% p.a	0.30%/ 0.30%	$54.3	117	Quarterly	4 Stars	Recommended	Recommended (Upper)
Vanguard® Global Infrastructure Fund (Hedged)	A customised Index, the Vanguard Global Infrastructure Index in $A (Hedged)	0.52% p.a	0.40%/ 0.40%	$49.3m	117	Quarterly	4 Stars	Recommended	Recommended (Upper)
Vanguard® Sustainability Leaders International Shares Fund	MSCI World ex-Australia Index	0.52% p.a	0.30%/ 0.30%	$153.7m	278	Quarterly	-	-	-

Diversified Diversified funds invest in a blend of Vanguard index funds covering cash, fixed interest, property and shares.

	Index/ Benchmark	Management Costs	Buy/Sell Spreads	Fund Size	No. of Securities in a fund	Income Distributions	Ratings and Recommendations
	Index/ Benchmark	Management Costs	Buy/Sell Spreads	Fund Size	No. of Securities in a fund	Income Distributions	Standard & Poors	Morningstar	Lonsec
Vanguard ® Conservative Index Fund	30% growth and 70% income (Weighted average of target indexes of Vanguard Index Funds)	0.33% p.a	0.15%/ 0.10%	$71.1	n/a	Quarterly	4 Stars	Highly Recommended	Recommended
Vanguard® Balanced Index Fund	50% growth and 50% income (Weighted average of target indexes of Vanguard Index Funds)	0.34% p.a	0.20%/ 0.15%	$74.6m	n/a	Quarterly	4 Stars	Highly Recommended	Recommended
Vanguard® Growth Index Fund	70% growth and 30% income (Weighted average of target indexes of Vanguard Index Funds)	0.36% p.a	0.25%/ 0.15%	$94.4m	n/a	Quarterly	4 Stars	Highly Recommended	Recommended
Vanguard® High Growth Index Fund	90% growth and 10% income (Weighted average of target indexes of Vanguard Index Funds)	0.37% p.a	0.30%/ 0.20%	$49.6m	n/a	Quarterly	4 Stars	Highly Recommended	Recommended

* Information correct as of June 1 2009.