Vanguard Index International 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 International Shares Fund seeks to track the return of the MSCI World ex-Australia Index (with net dividends reinvested) in Australian dollars before taking into account fees, expenses and tax.
The Vanguard Index International Shares Fund gains its exposure to securities in the index by investing in the Vanguard International 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 Fund will be fully exposed to the fluctuating values of foreign currencies, as there will not be any hedging of foreign currencies to the Australian dollar.
The MSCI World ex-Australia Index comprises securities (shares) listed on the exchanges of the world’s major developed economies.
Strategic asset allocation* International 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 income, international diversification 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
  Connect with Vanguard 18 > vanguard.com.au > 1300 655 101
  Vanguard Index Hedged International 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 Hedged International Shares Fund seeks to track the return of the MSCI World ex-Australia (with net dividends reinvested) hedged into Australian dollars (AUD) Index before taking into account fees, expenses and tax.
  The Vanguard Index Hedged International Shares Fund gains its exposure to securities in the index by investing in the Vanguard International Shares Index Fund (Hedged) (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 Fund will also be exposed to foreign exchanged contracts and may be exposed to futures contracts.
  The MSCI World ex-Australia hedged into AUD Index comprises securities (shares) listed on the exchanges of the world’s major developed economies.
  Strategic asset allocation* International 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
  Investors seeking exposure to a diversified portfolio of international shares that is relatively unaffected by currency fluctuations.
• 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 19
  Diversified Index Funds
  The Vanguard LifeStrategy® Funds (Diversified Index Funds) invest across a number of asset sectors, including growth assets and income assets.
  Fund
  Income assets (%)
  Growth assets (%)
  Vanguard LifeStrategy® Conservative Fund
  70
  30
  Vanguard LifeStrategy® Balanced Fund
  50
  50
  Vanguard LifeStrategy® Growth Fund
  30
  70
  Vanguard LifeStrategy® High Growth Fund
  10
  90
  The Diversified Index Funds provide a choice of asset allocations by maintaining differing allocations to cash, bonds, property and shares and vary from conservative to growth oriented allocations. The Diversified Index Funds seek to achieve their investment objectives by investing in a blend of the underlying Vanguard Wholesale Funds in accordance with their strategic asset allocations. Each Diversified Index Fund currently achieves its allocation to a particular sector by investing in the Underlying Funds that correspond to the relevant sector.
  The Diversified Index Funds hold units in other Vanguard funds and are not expected to hold other securities directly. However, Vanguard may change the Underlying Funds in which the Funds invest at its discretion. For example, in future, some or all of the Funds may commence investing directly in securities and/or may commence investing in different or additional Underlying Funds.
  The following pages provide a description of the Diversified Index Funds, including a broad outline of the investment objectives, investment strategy, asset allocation and other relevant information specific to each Fund.
  20 Connect with Vanguard > vanguard.com.au > 1300 655 101
  Vanguard LifeStrategy® Conservative Fund
  For the latest information on this Fund including performance data, please visit the Vanguard website.
  Investment strategy and investment return objective
  The Vanguard LifeStrategy® Conservative Fund seeks to track the weighted average return of the various indices of the Underlying Funds in which it invests, in proportion to the Strategic Asset Allocation (SAA), before taking into account fees, expenses and tax.
  Vanguard Cash Plus Fund
  Vanguard Australian Fixed Interest Index Fund Vanguard Global Aggregate Bond Index Fund (Hedged) Vanguard Australian Shares Index Fund
  Vanguard International Shares Index Fund Vanguard International Shares Index Fund (Hedged)
  Vanguard International Small Companies Index Fund Vanguard Emerging Markets Shares Index Fund
  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 or other Funds. For more information about the Underlying Funds, visit the Vanguard website.
  Strategic asset allocation
  Income assets
  SAA (%)
  Range (%)
  Cash
  10
  8 – 12
  Australian fixed interest
  18
  16 – 20
  International fixed interest (hedged)
  42
  40 – 44
  Total income assets
  70
  68 – 72
  Growth assets
  Australian shares
  12
  10 – 14
  International shares
  8.5
  6.5 – 10.5
  International shares (hedged)
  5.5
  3.5 – 7.5
  International small companies
  2
  0 – 4
  Emerging markets shares
  2
  0 – 4
  Total growth assets
  30
  28 – 32
  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 short to medium term investment horizon, seeking a steady source of income with some capital growth potential.
  Vanguard Investor Funds Product Disclosure Statement 21
  Vanguard LifeStrategy® Balanced Fund
  For the latest information on this Fund including performance data, please visit the Vanguard website.
  Investment strategy and investment return objective
  The Vanguard LifeStrategy® Balanced Fund seeks to track the weighted average return of the various indices of the Underlying Funds in which it invests, in proportion to the Strategic Asset Allocation (SAA), before taking into account fees, expenses and tax.
  Vanguard Australian Fixed Interest Index Fund
  Vanguard Global Aggregate Bond Index Fund (Hedged)
  Vanguard Australian Shares Index Fund
  Vanguard International Shares Index Fund Vanguard International Shares Index Fund (Hedged)
  Vanguard International Small Companies Index Fund Vanguard Emerging Markets Shares Index Fund
  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 or other Funds. For more information about the Underlying Funds, visit the Vanguard website.
  Strategic asset allocation
  Income assets
  SAA (%)
  Range (%)
  Australian fixed interest
  15
  13 – 17
  International fixed interest (hedged)
  35
  33 – 37
  Total income assets
  50
  48 – 52
  Growth assets
  Australian shares
  20
  18 – 22
  International shares
  14.5
  12.5 – 16.5
  International shares (hedged)
  9
  7 – 11
  International small companies
  3.5
  1.5 – 5.5
  Emerging markets shares
  3
  1 – 5
  Total growth assets
  50
  48 – 52
  Minimum suggested investment timeframe Five years.
  Summary risk level
  Medium – The potential for relatively higher returns than lower risk investments with the potential for some loss of capital over the medium term
  Who it may suit
  Investors with a medium term investment horizon, seeking a balance between income and capital growth potential.
  22 Connect with Vanguard > vanguard.com.au > 1300 655 101
  Vanguard LifeStrategy® Growth Fund
  For the latest information on this Fund including performance data, please visit the Vanguard website.
  Investment strategy and investment return objective
  The Vanguard LifeStrategy® Growth Fund seeks to track the weighted average return of the various indices of the Underlying Funds in which it invests, in proportion to the Strategic Asset Allocation (SAA), before taking into account fees, expenses and tax.
  Vanguard Australian Fixed Interest Index Fund Vanguard Global Aggregate Bond Index Fund (Hedged) Vanguard Australian Shares Index Fund
  Vanguard International Shares Index Fund Vanguard International Shares Index Fund (Hedged)
  Vanguard International Small Companies Index Fund Vanguard Emerging Markets Shares Index Fund
  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 or other Funds. For more information about the Underlying Funds, visit the Vanguard website.
  Strategic asset allocation
  Income assets
  SAA (%)
  Range (%)
  Australian fixed interest
  9
  7 – 11
  International fixed interest (hedged)
  21
  19 – 23
  Total income assets
  30
  28 – 32
  Growth assets
  Australian shares
  28
  26 – 30
  International shares
  20.5
  18.5 – 22.5
  International shares (hedged)
  12.5
  10.5 – 14.5
  International small companies
  5
  3 – 7
  Emerging markets shares
  4
  2 – 6
  Total growth assets
  70
  68 – 72
  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, but requiring some diversification benefits of fixed income to reduce volatility.
  Vanguard Investor Funds Product Disclosure Statement 23
  Vanguard LifeStrategy® High Growth Fund
  For the latest information on this Fund including performance data, please visit the Vanguard website.
  Investment strategy and investment return objective
  The Vanguard LifeStrategy® High Growth Fund seeks to track the weighted average return of the various indices of the Underlying Funds in which it invests, in proportion to the Strategic Asset Allocation (SAA), before taking into account fees, expenses and tax.
  Vanguard Australian Fixed Interest Index Fund Vanguard Global Aggregate Bond Index Fund (Hedged) Vanguard Australian Shares Index Fund
  Vanguard International Shares Index Fund
  Vanguard International Shares Index Fund (Hedged)
  Vanguard International Small Companies Index Fund Vanguard Emerging Markets Shares Index Fund
  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 or other funds. For more information about the Underlying Funds, visit the Vanguard website.
  Strategic asset allocation
  Income assets
  SAA (%)
  Range (%)
  Australian fixed interest
  3
  1 – 5
  International fixed interest (hedged)
  7
  5 – 9
  Total income assets
  10
  8 – 12
  Growth assets
  Australian shares
  36
  34 – 40
  International shares
  26.5
  24.5 – 28.5
  International shares (hedged)
  16
  14 – 18
  International small companies
  6.5
  4.5 – 8.5
  Emerging markets shares
  5
  3 – 7
  Total growth assets
  90
  88 – 92
  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 and with a higher tolerance for the risks associated with share market volatility.