MODERATE
4th Quarter 2018
Level 1, 176 Main Street
Osborne Park, WA 6017
PO Box 1483,
Subiaco, WA 6904
P 08 9207 3844
W www.fwplanners.com.au
E [email protected]
Economic update- Quarter ending 31 December 2018
2017 was a great year for well diversified investors – returns were solid and volatility was
low. So, optimism was high going into 2018 but it turned out to be anything but great for
investors who saw poor returns and volatile markets. As a result, and in contrast to a year
ago, there is much trepidation about the year ahead.
Here is a summary of key insights and views on the investment outlook in simple point form.
In other words, a list of lists.
Five key things that went wrong in 2018
In 2018 global growth was good, profits were up, inflation was benign and monetary
conditions were relatively easy. It should have been good for markets. There were five
reasons it wasn’t:
1. In the U.S. investors became increasingly concerned that their central bank would
increase interest rates by too much and too soon. This peaked in December.
2. US dollar strength – when the US dollar rises the world tends to slow down. This
affected emerging countries particularly in Asia and South America.
3. Geopolitics – President Trump’s trade war affected confidence from March and
morphed into fears of a broader Cold War with China. Other worries around Trump
(with ongoing turmoil in his team, fears of impeachment as the Mueller inquiry
progresses and a return to a divided government) along with the populist government
in Italy also weighed heavily.
4. The economic growth of countries became increasingly disconnected with the America.
US growth was strong, but it slowed everywhere else.
5. In Australia, interest rates started to rise (with fears of a credit crunch due to the Royal
Commission) and falling house prices weighed growth expectations.
Five lessons from 2018
1. Global growth remains fragile with echoes of the 2008 GFC ringing in some people’s
ears. This and technological change are helping to keep inflation down. Trade war fears
didn’t help. Amongst other things this means that the central banks of the world need
to be extremely carefully with their plans to increase interest rates.
2. Investors continue to find it easy to fear the worst – this has been evident in three
major share-market declines since the GFC – in 2011, 2015-16 & now 2018.
3. Geopolitics remains a significant driver of markets and economic conditions.
4. Government bonds remain a great diversifier – they rallied when shares plunged.
5. Stuff happens – history tells us markets have periodic setbacks. 2018 was just another
example.
Financial Planning services are provided by Future Wealth Planners Pty Ltd ATF the B & G Business Trust is a Corporate Authorised Representative of Sentry Advice Pty Ltd. Australian Financial Services License No. 227748 ABN: 77 103 642 888
Five big picture themes for 2019
1. Interest rate increases - the turmoil in markets and threat to global growth is likely to
result in the US central bank pausing its interest rate increase plans with China
providing more stimulus and the European Central Bank providing cheap bank
financing. There remains some possibility of interest rate decreases in Europe.
2. While global growth is likely to weaken a bit further in the coming months, it’s likely
to stabilise and re-synchronise as the year progresses with interest rates decreasing.
3. Global inflation is likely to remain benign helped by the 2018 growth slowdown and
fall in energy costs. In this sense the malaise of 2018 by forestalling inflation and
hence interest rate increases has arguably helped extend the economic cycle. The US
remains most at risk on the inflation front though given its still tight labour market.
4. Unfortunately we have to expect volatility to remain high given the lower level of spare
capacity in the US and ongoing political risk.
5. Australian growth is expected to be sub-par as the housing price downturn continues
and wipes 1%-1.5% or so off our national growth forecast for 2019.
8 Key views on markets for 2019
1. Global shares could still make new lows early in 2019 (as much as occurred in 2016)
and volatility is likely to remain high but valuations are now improved and reasonable
growth and profits should see a recovery through 2019 as interest rates decrease.
2. Economies from Asia and South America can outperform if the $US rises.
3. After a low early in the year, Australian shares are likely to do okay, with the Australian
share-market recovering as the year progresses.
4. Low yields are likely to see low returns from bonds, but they continue to provide an
excellent portfolio diversifier.
5. Unlisted commercial property and infrastructure could see slower returns over the year
ahead. This is likely to be particularly the case for Australian retail property.
6. National capital city house prices are likely to fall roughly 5% led again by 10% or so
price falls in Sydney and Melbourne off the back of tight lending conditions, rising
supply, reduced foreign demand & possible tax changes under a Labor Government.
7. Cash and bank deposits are likely to provide poor returns as the Australian Reserve
Bank cuts the official cash rate to 1% by end 2019.
8. Assuming the US markets stay about where they are now then the US central bank
will have a case to pause increasing rates meaning that the $A is likely to fall as low
as $US0.60’s as the gap between the Australian cash rate and US interest rates likely
pushes further into negative territory.
Five things to watch
1. The US trade war – while it may now be on hold thanks to negotiations with China,
Europe and Japan, these could go wrong and see it flare up again. US/China tensions
generally pose a significant risk for markets.
2. US inflation and the US central bank – If US inflation remains around 2% then the
US central bank would have a good case to pause increasing interest rates, but if it
accelerates then the opposite will occur and a stronger $US would be bad for emerging
markets. Global growth indicators need to stabilise in the next six months.
Financial Planning services are provided by Future Wealth Planners Pty Ltd ATF the B & G Business Trust is a Corporate Authorised Representative of Sentry Advice Pty Ltd. Australian Financial Services License No. 227748 ABN: 77 103 642 888
3. Chinese growth – a continued slowing in China would be a major concern for global
growth and commodity prices.
4. Politics – political risks abound in the US with the Mueller inquiry getting ever closer
to President Trump and a return to divided government leading to risks around raising
the debt ceiling and Trump adopting more populist policies. In Europe the main risks
are around Brexit, Italy and the EU parliamentary elections in May. Australia’s election
risks are more interventionist government policy and tax changes.
5. The property price downturn in Australia – how deep it gets and whether non-
mining investment, infrastructure spending and export earnings are able to offset the
drag from housing construction and consumer spending.
Three reasons why global growth is likely to be okay
Global growth indicators are likely to weaken further in the next few months but then stabilise,
resulting in okay global growth of around 3.5% this year:
1. Global lending conditions are still relatively easy and likely remain so.
2. Market volatility and associated uncertainty are likely to result in the US central bank
pausing its interest rates increases, with a possible fiscal stimulus in Europe.
3. We still have not seen the excesses – massive debt growth, overinvestment, capacity
constraints or excessive inflation – that normally precede recessions.
Three reasons why Chinese growth won’t slow much
1. Historically speaking, the Chinese Government’s tolerance for a sharp slowing in
growth is low given the risk of social instability it may bring.
2. Interest rates are on hold or decreasing.
3. In the absence of much lower savings (the main driver of debt growth), a rapid
movement to loan repayments would be dangerous, and the Chinese Government
knows this.
Five reasons Australia still won't have a recession
1. The current downturn in the housing cycle and its flow on to consumer spending will
detract around 1%-1.5% from our national growth. Growth is likely to be constrained
to around 2.5%-3%, but recession still seems unlikely.
2. The growth drag from falling mining investment (which was up to 2%) has faded.
3. Non-mining investment & infrastructure spending are rising.
4. Interest rates can still fall further, and the RBA is expected to cut the cash rate to 1%.
5. The $A will likely fall further, providing a support to growth.
Three reasons why the Reserve Bank of Australia will cut rates this year
1. The housing downturn will constrain growth to at or below potential.
2. This will keep underemployment high, wages growth weak and inflation low.
3. The RBA may ultimately want to prevent the decline in house prices getting so deep it
threatens financial instability.
Financial Planning services are provided by Future Wealth Planners Pty Ltd ATF the B & G Business Trust is a Corporate Authorised Representative of Sentry Advice Pty Ltd. Australian Financial Services License No. 227748 ABN: 77 103 642 888
Four reasons why a deep and long fall in our share-market is unlikely
1. Shares could still fall further in the short term given various uncertainties resulting in
a brief bear market before recovering. But a deep bear market (where shares fall 20%
and a year after are a lot lower again) is unlikely
2. A recession is unlikely. Most deep bear markets are associated with recession.
3. Measures of investor sentiment suggest investors are cautious, which is positive from
a contrarian perspective.
4. The liquidity backdrop for shares is still positive. For example, bank term deposit rates
in Australia are around 2% (and likely to fall) compared to a grossed-up dividend yield
for Australian shares of around 6% making shares relatively attractive.
Seven things investors should allow for in rough times
Times like the present are stressful for investors. No one likes to see their wealth fall and
uncertainty seems very high. I don’t have a perfect crystal ball, so from the point of sensible
long-term investing the following points are worth bearing in mind:
1. First, periodic sharp setbacks in share markets are healthy and normal. Shares
literally climb a wall of worry over many years with periodic setbacks, but with the
long-term trend providing higher returns than more stable assets. The setbacks are
the price we pay for the higher long-term return from shares.
2. Second, selling shares or switching to a more conservative strategy after a major fall
just locks in a loss. The best way to guard against selling on the basis of emotion is to
adopt a well thought out, long-term investment strategy.
3. Third, when growth assets fall they are cheaper and offer higher long-term return
prospects. So, the key is to look for opportunities that pullbacks provide.
4. Fourth, while shares may have fallen in value, the dividends from the market haven’t.
The income flow you are receiving from a diversified portfolio of shares remains
attractive.
5. Fifth, shares often bottom at the point of maximum negative sentiment. So, when
everyone is negative and cautious it’s often time to buy.
6. Sixth, turn down the noise on financial news. In periods of market turmoil, the flow
of negative news reaches fever pitch, which makes it very hard to stick to a well-
considered, long-term strategy let alone see the opportunities.
Finally, accept that it’s a low nominal return world – low nominal growth and low bond yields
and earnings yields mean lower long-term returns. This means that periods of relative high
returns like in 2017 are often followed by weaker years.
As always, if you have any questions about what you read in this report please always feel
welcome to call at any time.
Yours sincerely,
Brenton Jones
Chief Investment Officer
Superannuation |Retirement | Investment
Authorised Representative No. 224479
Financial Planning services are provided by Future Wealth Planners Pty Ltd ATF the B & G Business Trust is a Corporate Authorised Representative of Sentry Advice Pty Ltd. Australian Financial Services License No. 227748 ABN: 77 103 642 888
CORE Portfolio Returns
Investment Growth The charts and tables on this page
compare the returns of the FWP Moderate
Time Period: 01-Jan-14 to 31-Dec-18 risk profile portfolio against the returns of
135.0 what Morningstar Research considers is
the average equivalent portfolio in
130.0 Australia. In each case FWP's fees have
been included.
125.0
Although it is disappointing that the FWP Core Moderate
120.0 portfolio has underperformed the average portfolio over
the past year, in particular owing to the volatile last 6
115.0 months, it is pleasing to see that on a cumulative basis,
the FWP portfolio has only slightly underperformed the
110.0 average portfolio over the last 5 years.
105.0 Please note that performance results are reported net of
investment management and adviser fees. Individual
100.0 portfolio results will vary depending on how much is
held in the cash account.
95.0
2018
2014 2016
FWP Core Moderate Morningstar Aus Msec Balanced
Performance
Time Period: 01-Jan-14 to 31-Dec-18
FWP Core Moderate Return Best Quarter Best Month
Morningstar Aus Msec Balanced 4.91 5.51 3.54
5.13 5.68 3.02
ReturnTrailing Returns 6 Months YTD 1 Year 3 Years 5 Years 01/01/14 - 31/12/18
(Cumulative)
As of Date: 31-Dec-18
30.0
25.0
20.0
15.0
10.0
5.0
0.0
-5.0
-10.0
-15.0
-20.0
3 Months
FWP Core Moderate Morningstar Aus Msec Balanced
Trailing Returns
Data Point: Return
FWP Core Moderate 3 Months 6 Months YTD 1 Year 3 Years 5 Years
Morningstar Aus Msec Balanced -17.38 -5.44 -1.20 -1.20 4.71 4.91
-16.43 -4.61 0.33 0.33 4.15 5.13
Page 6 of 28
CORE Portfolio Returns
Rolling Returns
Time Period: 01-Jan-14 to 31-Dec-18
6.0
4.0
2.0
0.0
-2.0
-4.0
Return -6.0
06 09 12 03 06 09 12 03 06 09 12 03 06 09 12 03 06 09 12
2015 2016 2017 2018
FWP Core Moderate CPI + 2.5% Morningstar Aus Msec Balanced
* Please note that the December 2018 quarter returns for the ABS Australian CPI are yet to be published.
The chart called ‘Rolling Returns’ illustrates what is arguably a more realistic review of the past
performance of this portfolio.
If you download and read our booklet titled ‘A guide to investing in the FWP CORE Portfolios’ and go to the
section called ‘The FWP CORE Portfolios at a glance’ you will note that the performance objective of the Moderate
Risk Profile Portfolio is 2.5% above inflation over a rolling 5 year period. What is being shown in the above chart is the
past performance of the FWP CORE Portfolio for a Moderate risk profile (the green line) at the end of every quarter on
a rolling five year basis, compared to the rate of inflation (the light blue line), and also compared to the average similar
risk portfolio in Australia (the black line). This chart clearly shows just how volatile markets are over the years when
viewed on a quarterly basis. The FWP portfolio see-sawed between exceeding the returns of the average funds in some
quarters, and lagging in others. We are pleased with the performance of the FWP portfolio prior to the volatily of last 6
months, where the FWP portfolio has held its own relative to the average portfolio.
The chart on the top left corner called 'Investment Growth' serves to illustrate what the value of $100 would be for a
client who had invested in the FWP CORE Portfolio for a Moderate risk profile since January 2014.
In simple terms, what we are looking to achieve for this portfolio is a performance result that exceeds the average
return of other portfolios with very similar investment risk profiles.
The section called 'Trailing Returns' is more about reporting how the FWP Portfolio (in green) has done over the last
3, 6 and 12 months, stretching out to 5 years. These results are compared against the average similar risk profiles in
Australia.
Page 7 of 28
CORE Portfolio Composition
Portfolio Holdings Vanguard International Crdt Secs Idx Hdg %
Vanguard Australian Shares Index 28.0
Portfolio Date: 31-Dec-18 Vanguard Australian Fixed Interest Index 20.0
Vanguard International Shares Index 15.0
Surveyed Asset Class (AUS) Vanguard International Shrs Idx Hdg AUD 14.5
Vanguard International Fxd Intr Idx Hdg
Portfolio Date: 31-Dec-18 Vanguard Global Infrastructure Index 9.0
Vanguard Intl Small Companies Index Hgd 7.0
Vanguard Emerging Markets Shares Index 3.3
Vanguard Cash Plus 1.8
Total 1.5
0.0
100.0
Domestic Equity (AUS) %
Domestic Fixed Interest (AUS) 20.0
International Equity (AUS) 15.8
International Fixed Interest (AUS) 30.0
Total 34.2
100.0
These pages contain a good deal of information about the FWP CORE Portfolio for a Moderate risk profile. The first pie
chart shown above lists each of the funds that your portfolio currently invests in and in what proportion. The second
pie chart shows you how much of your portfolio is invested in each asset class.
As you would expect with a Moderate risk profile portfolio, there is a balanced diversification between defensive and
growth asset classes.
Page 8 of 28
CORE Portfolio Composition
Equity Sectors Vanguard Vanguard Vanguard Vanguard Vanguard Vanguard
Australian Emerging Global International International Intl
Portfolio Date
Basic Materials % Shares Markets Infrastructure Shares Shrs Small
Consumer Cyclical % Index Shares Index Index Idx Companies
Financial Services % Index Hdg
Real Estate % 31-Dec-18 31-Dec-18 Index
Consumer Defensive % 17.27 31-Dec-18 30-Nov-18 4.30 AUD Hgd
Healthcare % 5.22 7.88 0.00
Utilities % 32.35 0.42 11.86 31-Dec-18 31-Dec-18
Communication Services % 7.65 10.86 0.00 17.09 4.30 7.22
Energy % 7.55 24.78 2.57
Industrials % 8.79 0.00 2.92 11.86 13.69
Technology % 1.99 3.17 0.00 9.11 17.10 13.85
2.66 6.78 13.41 11.87
Fixed Interest Breakdown 4.95 2.67 52.93 3.45 2.92
7.69 2.61 5.42 3.87 9.11 5.14
Portfolio Date 3.89 4.78 5.99 13.42 10.28
Cash & Equivalents % 7.72 11.10 11.03 3.39
Municipal Taxable % 5.05 27.34 16.97 3.87 2.74
Government % 23.72 5.99 1.29
Government Related % 0.21 11.04 3.54
Corporate % 16.98 16.32
Securitized % 14.05
Vanguard Vanguard Vanguard
Australian Cash International Vanguard
Plus International
Fixed Crdt
Interest 30-Sep-18 Secs Fxd
40.56 Intr
Index 0.00 Idx Idx
0.00 Hdg Hdg
31-Dec-18 31.31
0.74 27.71 31-Dec-18 31-Dec-18
0.00 0.00 0.11 0.11
0.86 0.00
51.60 4.01
37.83 99.88
28.83 0.00
9.11 65.50 0.00
0.72 0.00
0.68
The first table on this page, titled 'Equity Sectors', provides an X-ray of sorts of the various funds to reveal how much
of each fund is invested in the various sectors of the Australian and International share markets. The same concept
also applies to the table called 'Fixed Interest Breakdown' where you can see what type of fixed interest
investments your portfolio is currently invested in.
Page 9 of 28
CORE Portfolios Comparison Review
Investment Growth
Time Period: 01-Jan-12 to 31-Dec-18
220.0
200.0
180.0
160.0
140.0
120.0
100.0
2012 2013 2014 2015 2016 2017 2018
FWP Core Moderate FWP Core Aggressive FWP Core Conservative
FWP Core Moderately Aggressive FWP Core Moderately Conservative
The above chart serves to illustrate the growth of $100 from January 2012 through to the end of December
2018. Charts like this one provide an excellent insight into how the FWP Moderate portfolio's growth
compares against the other risk profiles.
The charts on this page compare risk and return characteristics of the other FWP portfolios against each other. These
have been provided to further illustrate how risk and return are strongly linked.
There can be no doubt that the relationship between risk and return is alive and well. Whilst it might be seem by some
that the Aggressive risk profile has outperformed the other portfolios, the substantial difference is the level of volatility.
The further up the risk list you go, the more volatile the portfolio's valuation becomes.
It is plain to see that when markets move positively, the more aggressive portfolios perform better, but conversely,
when markets experience a period of poor performance, the less aggressive portfolios do not report such a heavy
decline.
As we all know, hindsight is a wonderful thing but human nature often overrides sticking to long-term objectives and
history has shown that a great many people will consider changing risk profiles if they feel like they can't endure the
sometimes rapid changes in portfolio valuations of the higher risk profiles. The core message these charts serve to
illustrate is the need to "stay the course". Your choice of agreed risk profile was made with a purpose and outcome in
mind which often only becomes clear over the long term.
Risk-Reward Returns
12.0 FWP Core Moderate 10.0
10.0 FWP Core Aggressive 5.0
FWP Core Conservative
8.0
FWP Core Moderately Aggressive 0.0
FWP Core Moderately Conservative -5.0
-10.0
6.0 -15.0
-20.0
4.0 -25.0
Return -30.0
Return -35.0
2.0 1 Year 3 Years 5 Years
3 Months
0.0 FWP Core Moderately Conservative FWP Core Moderate
0.0 2.0 4.0 6.0 8.0 10.0 12.0 FWP Core Conservative FWP Core Aggressive
FWP Core Moderately Aggressive Page 10 of 28
Std Dev
CORE Competitor Analysis
FWP Core Moderate - Multi Lens Peer Group Performance
YTD 1 Year 3 Years 5 Years
-1.20 4.71 4.91
FWP Core Moderate 7.05
878 of 1,058 129 of 282 132 of 271
Peer group rank of peer group count 217 of 370 2.35 4.56 4.76
Median 10.19
We are always very keen to see how all of our portfolios are performing against similar risk profile funds in
Australia.
The above table is pretty self-explanatory. For example, if you take the 5 Year performance result, you can see that
the FWP CORE Portfolio for a Moderate risk profile was rated number 132 out of 271 competitors. Similarly, the 3 Year
performance result shows that our portfolio was rated 129 out of 282 competitors.
The chart below segregates all of the competitor funds into top 25% (Top Quartile - the yellow band), then the next
25% (2nd Quartile - red band), then the following 25% (3rd Quartile - grey band), and finally the Bottom Quartile
(blue band).
The result we are working to achieve is for the Moderate Portfolio to be placed in the second or Top Quartile, which is
the yellow section. We are pleased to see that this objective has been met, both in 2018 and on a cumulative basis
over the last 5 years.
Performance Relative to Peer Group
Peer Group (5-95%): Open End Funds - Australia - Multisector Balanced
Top Quartile 2nd Quartile 3rd Quartile Bottom Quartile
32.5
30.0
27.5
25.0
22.5
20.0
17.5
15.0
12.5
10.0
7.5
5.0
2.5
0.0
Return -2.5
-5.0 2018 2017 2016 2015 2014 01/01/14 - 31/12/18
YTD Cumulative
FWP Core Moderate Morningstar Aus Msec Balanced Page 11 of 28
Fund Commentaries
The following pages contain the most recent research and detailed explanations from the Morningstar Australia
Investment Analysts about each of the underlying funds from Vanguard that comprise your portfolio.
We are very pleased to be working with Morningstar Australia. Having access to the extremely capable analysts and
the amazing technology available to us is a collaboration that allows us to provide you information and insight to the
various investments in your portfolio at a level that is very hard to find in Australia.
For many people, this level of detailed information might be a little much, but for others I know it is more than
welcome and highly valued.
Why we exclusively employ Vanguard funds at the CORE of your portfolio
What is a (CORE) Fund?
Vanguard is Australia’s and the worlds’ largest provider of ultra-low fee index funds. An index fund is a type
of managed fund with a portfolio constructed to match or track the components of a market index, such as the
Australian Stock Exchange’s 300 largest companies called the S&P/ASX 300 which is what the Vanguard Australian
Share Index Funds in in. An index fund provides a very broad market exposure, low operating expenses and low
portfolio turnover. These funds adhere to specific rules or standards (e.g. efficient tax management or reducing
tracking errors) that stay in place no matter the state of the markets.
"Indexing" is a passive form of fund management that has a long history of successfully outperforming most actively
managed funds in Australia and around the world. While the most popular index fund in Australia tracks the S&P/ASX
300 (via the Vanguard Australian Share Index Fund, a number of other indexes, including the S&P/ASX 100 comprised
of the top 100 largest companies listed on the Stock Exchange, the S&P/ASX 300 A-REIT comprised of all the listed
property companies on the Stock Exchange (via the Vanguard Australian Property Index Fund), the MSCI World Ex-
Australia Index comprising large and mid-sized companies across 22 of 23 Developed Markets countries excluding
Australia (via the Vanguard International Share Fund) as well as the Barclays Capital Aggregate Bond Index total bond
market (via the Vanguard Fixed Interest Funds) are widely used for index funds.
Investing in an index fund from Vanguard is a form of investing. The primary advantage to such a strategy is the much
lower management expense ratio on an index fund and as such are widely recognised as being considered ideal core
portfolio holdings for investment portfolios. Investing via an index fund is an investment strategy that aims to
maximise returns over the long run by keeping the amount of buying and selling to a minimum. The idea is to avoid
the fees and the drag on performance that potentially occur from frequent trading. Index fund investing is not aimed at
making quick gains or at getting rich with one great bet, but rather on building slow, steady wealth over time.
Also known as a buy-and-hold strategy, index fund investing involves buying a security with the intention of owning it
for many years. Unlike active traders, index fund investors are not attempting to profit from short-term price
fluctuations, or otherwise "time the market." The basic assumption that underpins an index fund investment strategy is
that the market generally posts positive returns given enough time. The most difficult skill for index fund investors to
master is emotional control. Resisting the urge to sell when the market experiences a downturn requires patience and
a strong stomach. Index Fund investors must have the presence of mind to weather these storms and trust that the
market will correct itself with time.
Page 12 of 28
Investment Detail | Print Date: 19 January 2019 Page 1 of 11
Vanguard International Fxd Intr Idx Hdg
....................................................................................................................................................................................................................................................................................
Morningstar Category Product Type Legal Type Fund Status Morningstar Rating
Bonds - Global Wholesale Investment Trusts Open QQQ
Out of 53 funds as at 31 Dec 2018
Manager's Quarterly Comments 30 Sep 2018 Performance 31 Dec 2018
The Vanguard International Fixed Interest Index Fund 13.0 Growth of $10,000
(Hedged) returned -0.45% gross of fees over the Fund
September quarter compared to the benchmark return of 12.25 $12,378
-0.44%. The yield to maturity increased by 0.22% to
1.56%. Returns were impacted by rising bond yields late in 11.5 Market Index
the quarter, particularly in the US. 10.75 $12,443
10K
PDS Objective Category
$12,101
The Fund seeks to track the return (income and capital
appreciation) of the Barclays Capital Global Treasury Index 2014 2015 2016 2017 2018 YTD Annual
hedged into Australian dollars before taking into account
fees, expenses, and tax. 10.59 3.40 4.95 2.52 2.39 NAv Total Return %
0.00 1.81 1.72 9.21 2.89 NAv Income Return %
10.59 1.52 3.18 -6.47 -0.49 NAv Growth Return %
10.59 3.13 NAv NAv NAv NAv Tax-Adj Return %
Fund Investment Strategy Trailing 6 Mth 1 Yr 3 Yr 5 Yr 10 Yr
The Barclays Global Treasury Index is a value-weighted .Q..u..a..r.t.i.l.e...R..a..n..k............................................&...........................&............................*............................&............................(....
index of approximately 1,300 securities (bonds) issued by Total Return % 1.64 2.39 3.28 4.73 5.55
the governments of approximately 34 countries. Bond
indices change far more quickly than share indices Income Return % 1.84 2.89 4.56 3.08 4.16
because bonds have a finite life (maturity). Every maturity
and inclusion of new issues changes the composition of Growth Return % -0.20 -0.49 -1.34 1.52 1.14
the index and requires Vanguard to modify the portfolio.
Tax Adjusted Return % NAv NAv NAv NAv NAv
...................................................................................................................................................................................
Market Index % 1.59 1.65 3.51 4.82 6.35
Category % 1.08 1.05 3.06 4.16 6.13
Market Index: BBgBarc Global Aggregate TR Hdg AUD
Asset Allocation Risk Measures
Composition (31 Dec 2018) % Assets 3-Year Risk Measures Fund Category Index
Domestic Equity 0.00 Standard Deviation 2.81 2.96 2.46
Int'l Equity 0.00 Sharpe Ratio 0.50 0.40 0.66
Listed Property 0.00 R-Squared 92.22
Unlisted Property 0.00 Beta 1.10 70.88 --
Dom Fixed Interest 1.07 Alpha -0.37 0.89 --
Intl Fixed Interest -0.28 --
Cash 98.93
Other 0.00
0.00
Operations Fees
Investment Details One-time
Ticker 6428 Entry Fee/Contribution Fee 0.00%
APIR Code VAN0103AU Exit Fee/Withdrawal Fee 0.00%
Fund Inception 27 Jul 1999 .B..u..y./.S...e..ll..S..p..r.e..a..d......................................................0....1..1..%..
Annual
Net Assets (Mil) 31 Dec 2018 $1506.36
Entry Price 17 Jan 2019 $1.1795 ICR pa (30 Jun 2018) 0.26%
.E.x..i.t..P..r.i.c..e...1..7...J..a..n..2..0..1..9.........................................$..1....1..7..7..5. Performance Fee pa (30 Jun 2018) NAv
Purchase Information
Management Fee pa 0.26%
Minimum Initial Investment $500,000
Admin Fee pa 0.00%
Minimum Additional Investment $5,000
Distribution
Minimum Withdrawal $1,000 Year Ended 30 June 2015 2016 2017 2018
2.21 2.22 8.53 3.86
Switching Allowed Yes Distributed CPU
.D..i.s.t..r.i.b.u..t..io..n..s...F..r.e..q..u..e.n..c..y......................................Q...u.a..r.t..e..r.l.y
Manager Info
Responsible Entity(RE) Vanguard Investments
Australia Ltd
RE Telephone +61 1300655101
RE Website www.vanguard.com.au
Fund Manager Vanguard Investments
Australia Ltd
© 2019 Morningstar, Inc. All rights reserved. Neither Morningstar, its affiliates, nor the content providers guarantee the data or content contained herein to be accurate, complete or timely nor will they have any liability for its use or
distribution. Any Morningstar ratings/recommendations contained in this report are based on the full research report available from Morningstar or your adviser. Any general advice or ‘class service’ have been prepared by Morningstar
Australasia Pty Ltd (ABN: 95 090 665 544, AFSL: 240892) and/or Morningstar Research Ltd, subsidiaries of Morningstar, Inc, without reference to your objectives, financial situation or needs. Refer to our Financial Services Guide (FSG) for more
information at www.morningstar.com.au/s/fsg.pdf. You should consider the advice in light of these matters and if applicable, the relevant Product Disclosure Statement before making any decision to invest. Our publications, ratings and
products should be viewed as an additional investment resource, not as your sole source of information. Past performance does not necessarily indicate a financial product’s future performance. To obtain advice tailored to your situation,
contact a professional financial adviser. Some material is copyright and published under licence from ASX Operations Pty Ltd ACN 004 523 782.
Investment Detail | Print Date: 19 January 2019 Page 2 of 11
Vanguard Global Infrastructure Index
....................................................................................................................................................................................................................................................................................
Morningstar Category Product Type Legal Type Fund Status Morningstar Rating
Infrastructure - Global Wholesale Investment Trusts Open QQQ
Out of 43 funds as at 31 Dec 2018
Manager's Quarterly Comments 30 Sep 2018 Performance 31 Dec 2018
The Vanguard Global Infrastructure Index Fund returned 17.2 Growth of $10,000
4.69% gross of fees over the September quarter compared Fund
to the benchmark return of 4.57% with the Fund benefiting 15.4 $16,220
from lower withholding tax than the benchmark. At a
country level, the US (+6.46%) with an average weight of 13.6 Market Index
62.4% made the largest positive contribution of 4.0% to $13,887
returns. Canada (+3.07%) and Hong Kong (+6.56%) also
made sizeable contributions, adding 0.4% and 0.2% 11.8 Category
respectively. From a sector perspective, Railroads 10K $15,041
(+16.44%) and Conventional Electricity (+4.27%) had the
most meaningful impact on performance, adding 2.8% and 2014 2015 2016 2017 2018 YTD Annual
1.4% respectively. Pipelines (-2.17%) and Transport
Services (-5.94%) both detracted somewhat from returns, 25.99 -0.29 12.72 6.70 9.68 NAv Total Return %
subtracting -0.3% each. This quarter, the AUD mostly 8.61 3.82 3.82 6.57 6.05 NAv Income Return %
depreciated against the major currencies with a decline of 15.86 -4.11 8.59 -0.35 3.43 NAv Growth Return %
-2.1% against the US dollar, -1.6% against the Euro and NAv NAv NAv NAv NAv NAv Tax-Adj Return %
-0.9% against the British Pound. However, it appreciated
against the Japanese Yen, with a rise of 0.4%. The Trailing 6 Mth 1 Yr 3 Yr 5 Yr 10 Yr
depreciation of the AUD led to the Fund outperforming the
hedged Fund by 1.98%. Q...u..a..r.t.i.l.e...R..a..n..k............................................&...........................&............................&............................*............................)....
Total Return % 2.86 9.68 9.67 10.63 6.04
PDS Objective
Income Return % 1.33 6.05 5.47 5.76 4.65
The Fund seeks to track the return of the FTSE Developed
Core Infrastructure Hedged into Australian Dollars Index Growth Return % 1.48 3.43 3.83 4.45 1.25
(with net dividends reinvested), before taking into account
fees, expenses and tax. Tax Adjusted Return % NAv NAv NAv NAv NAv
...................................................................................................................................................................................
Fund Investment Strategy Market Index % -5.62 -6.71 6.78 6.91 9.51
The index comprises securities in developed countries, Category % -2.33 -1.24 7.00 8.71 11.16
which provide exposure to transportation, energy and
telecommunications infrastructure. Market Index: S&P Global Infrastructure NR Hdg AUD
Asset Allocation Risk Measures
Composition (31 Dec 2018) % Assets 3-Year Risk Measures Fund Category Index
Domestic Equity 0.00 Standard Deviation 9.25 8.51 8.12
Int'l Equity Sharpe Ratio 0.84 0.59 0.62
Listed Property 100.00 R-Squared 24.13
Unlisted Property 0.00 Beta 0.56 63.08 --
Dom Fixed Interest 0.00 Alpha 5.00 0.80 --
Intl Fixed Interest 0.00 0.92 --
Cash 0.00
Other 0.00
0.00
Operations Fees
Investment Details One-time
Ticker 16241 Entry Fee/Contribution Fee 0.00%
APIR Code VAN0023AU Exit Fee/Withdrawal Fee 0.00%
Fund Inception 30 Nov 2007 .B..u..y./.S...e..ll..S..p..r.e..a..d......................................................0....1..8..%..
Annual
Net Assets (Mil) 31 Dec 2018 $484.08
Entry Price 17 Jan 2019 $1.1615 ICR pa (30 Jun 2018) 0.49%
.E.x..i.t..P..r.i.c..e...1..7...J..a..n..2..0..1..9.........................................$..1....1..5..9..5. Performance Fee pa (30 Jun 2018) NAv
Purchase Information
Management Fee pa 0.49%
Minimum Initial Investment $500,000
Admin Fee pa 0.00%
Minimum Additional Investment $5,000
Distribution
Minimum Withdrawal $1,000 Year Ended 30 June 2015 2016 2017 2018
8.59 4.13 7.58 6.22
Switching Allowed Yes Distributed CPU
.D..i.s.t..r.i.b.u..t..io..n..s...F..r.e..q..u..e.n..c..y......................................Q...u.a..r.t..e..r.l.y
Manager Info
Responsible Entity(RE) Vanguard Investments
Australia Ltd
RE Telephone +61 1300655101
RE Website www.vanguard.com.au
Fund Manager Vanguard Investments
Australia Ltd
© 2019 Morningstar, Inc. All rights reserved. Neither Morningstar, its affiliates, nor the content providers guarantee the data or content contained herein to be accurate, complete or timely nor will they have any liability for its use or
distribution. Any Morningstar ratings/recommendations contained in this report are based on the full research report available from Morningstar or your adviser. Any general advice or ‘class service’ have been prepared by Morningstar
Australasia Pty Ltd (ABN: 95 090 665 544, AFSL: 240892) and/or Morningstar Research Ltd, subsidiaries of Morningstar, Inc, without reference to your objectives, financial situation or needs. Refer to our Financial Services Guide (FSG) for more
information at www.morningstar.com.au/s/fsg.pdf. You should consider the advice in light of these matters and if applicable, the relevant Product Disclosure Statement before making any decision to invest. Our publications, ratings and
products should be viewed as an additional investment resource, not as your sole source of information. Past performance does not necessarily indicate a financial product’s future performance. To obtain advice tailored to your situation,
contact a professional financial adviser. Some material is copyright and published under licence from ASX Operations Pty Ltd ACN 004 523 782.
Investment Detail | Print Date: 19 January 2019 Page 3 of 11
Vanguard Intl Small Companies Index Hgd
....................................................................................................................................................................................................................................................................................
Morningstar Category Product Type Legal Type Fund Status Morningstar Rating
Equity World - Currency Hedged Wholesale Investment Trusts Open QQQQ
Out of 80 funds as at 31 Dec 2018
Manager's Quarterly Comments 30 Sep 2018 Performance 31 Dec 2018
The Vanguard International Small Companies Index Fund 18.0 Growth of $10,000
(Hedged) returned 2.72% gross of fees over the Fund
September quarter compared to the benchmark return of 16.0 $13,801
2.67% with the Fund benefiting from lower withholding tax
than the benchmark. This quarter, the AUD mostly 14.0 Market Index
depreciated against the major currencies with a decline of $14,767
-2.1% against the US dollar, -1.6% against the Euro and
-0.9% against the British Pound. However, it appreciated 12.0 Category
against the Japanese Yen, with a rise of 0.4%. The 10K $14,038
depreciation of the AUD led to the Fund underperforming
the unhedged Fund by -1.54%. 2014 2015 2016 2017 2018 YTD Annual
PDS Objective 8.77 3.70 15.28 19.92 -12.70 NAv Total Return %
NAv Income Return %
The Fund seeks to track the return (income and capital 0.00 0.00 33.13 13.10 3.59 NAv Growth Return %
appreciation) of the MSCI World ex-Australia Small Cap NAv Tax-Adj Return %
Index (with net dividends reinvested) hedged into 8.77 3.70 -23.77 5.62 -15.81
Australian dollars before taking into account fees,
expenses, and tax. 8.77 3.70 NAv NAv NAv
Fund Investment Strategy Trailing 6 Mth 1 Yr 3 Yr 5 Yr 10 Yr
The MSCI World ex-Australia Small Cap Index comprises Q...u..a..r.t.i.l.e...R..a..n..k............................................)...........................)............................*............................*............................&....
approximately 4,200 securities (shares) listed on the Total Return % -15.85 -12.70 6.47 6.36 14.30
exchanges of approximately 23 of the world’s major
developed economies. The Fund meets its investment Income Return % 0.00 3.59 15.97 9.30 6.83
strategy by investing in the Vanguard International Small
Companies Index Fund, securities in the index, and forward Growth Return % -15.85 -15.81 -12.16 -5.23 5.35
foreign exchange contracts.
Tax Adjusted Return % NAv NAv NAv NAv NAv
...................................................................................................................................................................................
Market Index % -8.93 -7.69 7.01 7.46 NAv
Category % -8.67 -7.84 6.34 6.35 10.98
Market Index: Morningstar DM xAus Large-Mid NR Hdg AUD
Asset Allocation Risk Measures
Composition (31 Dec 2018) % Assets 3-Year Risk Measures Fund Category Index
Domestic Equity 0.00 Standard Deviation 12.49 10.08 10.02
Int'l Equity Sharpe Ratio 0.49
Listed Property 100.00 R-Squared 0.42 89.35 0.54
Unlisted Property 0.00 Beta 88.48 0.95 --
Dom Fixed Interest 0.00 Alpha 1.17 -0.24 --
Intl Fixed Interest 0.00 -1.16 --
Cash 0.00
Other 0.00
0.00
Operations Fees
Investment Details One-time
Ticker 15898 Entry Fee/Contribution Fee 0.00%
APIR Code VAN0022AU Exit Fee/Withdrawal Fee 0.00%
Fund Inception 31 Oct 2007 .B..u..y./.S...e..ll..S..p..r.e..a..d......................................................0....3..5..%..
Annual
Net Assets (Mil) 31 Dec 2018 $78.94
Entry Price 17 Jan 2019 $0.9181 ICR pa (30 Jun 2018) 0.42%
.E.x..i.t..P..r.i.c..e...1..7...J..a..n..2..0..1..9.........................................$..0....9..1..4..9. Performance Fee pa (30 Jun 2018) NAv
Purchase Information
Management Fee pa 0.42%
Minimum Initial Investment $500,000
Admin Fee pa 0.00%
Minimum Additional Investment $5,000
Distribution
Minimum Withdrawal $1,000 Year Ended 30 June 2014 2015 2016 2017
0 0 42.99 9.62
Switching Allowed Yes Distributed CPU
.D..i.s.t..r.i.b.u..t..io..n..s...F..r.e..q..u..e.n..c..y......................................Q...u.a..r.t..e..r.l.y
Manager Info
Responsible Entity(RE) Vanguard Investments
Australia Ltd
RE Telephone +61 1300655101
RE Website www.vanguard.com.au
Fund Manager Vanguard Investments
Australia Ltd
© 2019 Morningstar, Inc. All rights reserved. Neither Morningstar, its affiliates, nor the content providers guarantee the data or content contained herein to be accurate, complete or timely nor will they have any liability for its use or
distribution. Any Morningstar ratings/recommendations contained in this report are based on the full research report available from Morningstar or your adviser. Any general advice or ‘class service’ have been prepared by Morningstar
Australasia Pty Ltd (ABN: 95 090 665 544, AFSL: 240892) and/or Morningstar Research Ltd, subsidiaries of Morningstar, Inc, without reference to your objectives, financial situation or needs. Refer to our Financial Services Guide (FSG) for more
information at www.morningstar.com.au/s/fsg.pdf. You should consider the advice in light of these matters and if applicable, the relevant Product Disclosure Statement before making any decision to invest. Our publications, ratings and
products should be viewed as an additional investment resource, not as your sole source of information. Past performance does not necessarily indicate a financial product’s future performance. To obtain advice tailored to your situation,
contact a professional financial adviser. Some material is copyright and published under licence from ASX Operations Pty Ltd ACN 004 523 782.
Investment Detail | Print Date: 19 January 2019 Page 4 of 11
Vanguard International Shrs Idx Hdg AUD
....................................................................................................................................................................................................................................................................................
Morningstar Category Product Type Legal Type Fund Status Morningstar Rating
Equity World - Currency Hedged Wholesale Investment Trusts Open QQQQ
Out of 80 funds as at 31 Dec 2018
Manager's Quarterly Comments 30 Sep 2018 Performance 31 Dec 2018
The Vanguard Index Hedged International Shares Fund 18.0 Growth of $10,000
returned 5.69% gross of fees over the September quarter Fund
compared to the benchmark return of 5.56% with the Fund 16.0 $14,791
benefiting from lower withholding tax than the benchmark.
This quarter, the AUD mostly depreciated against the 14.0 Market Index
major currencies with a decline of -2.1% against the US $14,767
dollar, -1.6% against the Euro and -0.9% against the British
Pound. However, it appreciated against the Japanese Yen, 12.0 Category
with a rise of 0.4%. The depreciation of the AUD led to the 10K $14,038
Fund underperforming the unhedged Fund by --1.73%.
2014 2015 2016 2017 2018 YTD Annual
PDS Objective
12.80 3.92 10.31 20.16 -7.58 NAv Total Return %
The Fund seeks to track the return (income and capital 0.50 NAv Income Return %
appreciation) of the MSCI World ex-Australia Index (with 12.25 0.00 8.65 21.56 3.70 NAv Growth Return %
net dividends reinvested) hedged into Australian dollars 12.97 NAv Tax-Adj Return %
before taking into account fees, expenses, and tax. 3.92 0.66 -2.91 -10.98
Fund Investment Strategy 3.92 NAv NAv NAv
The Vanguard Index Hedged International Shares Fund Trailing 6 Mth 1 Yr 3 Yr 5 Yr 10 Yr
gains its exposure to securities in the index by investing in
the Vanguard International Shares Index Fund (Hedged) Q...u..a..r.t.i.l.e...R..a..n..k............................................*...........................*............................*............................&............................&....
(the underlying fund). The fund is exposed to forward Total Return % -8.70 -7.58 7.00 7.50 12.16
foreign exchange contracts and all of the securities in the
index most of time, allowing for individual security Income Return % 0.11 3.70 11.05 6.60 5.89
weightings to vary marginally from the index from time to
time. The fund may be exposed to securities that have Growth Return % -8.80 -10.98 -4.54 0.29 5.38
been removed from or are expected to be included in the
index. Tax Adjusted Return % NAv NAv NAv NAv NAv
...................................................................................................................................................................................
Market Index % -8.93 -7.69 7.01 7.46 NAv
Category % -8.67 -7.84 6.34 6.35 10.98
Market Index: Morningstar DM xAus Large-Mid NR Hdg AUD
Asset Allocation Risk Measures
Composition (31 Dec 2018) % Assets 3-Year Risk Measures Fund Category Index
Domestic Equity 0.00 Standard Deviation 10.04 10.08 10.02
Int'l Equity Sharpe Ratio 0.49
Listed Property 100.00 R-Squared 0.54 89.35 0.54
Unlisted Property 0.00 Beta 99.87 0.95 --
Dom Fixed Interest 0.00 Alpha 1.00 -0.24 --
Intl Fixed Interest 0.00 -0.01 --
Cash 0.00
Other 0.00
0.00
Operations Fees
Investment Details One-time
Ticker 6430 Entry Fee/Contribution Fee 0.00%
APIR Code VAN0105AU Exit Fee/Withdrawal Fee 0.00%
Fund Inception 02 Aug 2000 .B..u..y./.S...e..ll..S..p..r.e..a..d......................................................0....0..4..%..
Annual
Net Assets (Mil) 31 Dec 2018 $4010.77
Entry Price 17 Jan 2019 $0.7735 ICR pa (30 Jun 2018) 0.21%
.E.x..i.t..P..r.i.c..e...1..7...J..a..n..2..0..1..9.........................................$..0....7..7..3..4. Performance Fee pa (30 Jun 2018) NAv
Purchase Information
Management Fee pa 0.21%
Minimum Initial Investment $500,000
Admin Fee pa 0.00%
Minimum Additional Investment $5,000
Distribution
Minimum Withdrawal $1,000 Year Ended 30 June 2015 2016 2017 2018
0 7.42 15.65 5.24
Switching Allowed Yes Distributed CPU
.D..i.s.t..r.i.b.u..t..io..n..s...F..r.e..q..u..e.n..c..y......................................Q...u.a..r.t..e..r.l.y
Manager Info
Responsible Entity(RE) Vanguard Investments
Australia Ltd
RE Telephone +61 1300655101
RE Website www.vanguard.com.au
Fund Manager Vanguard Investments
Australia Ltd
© 2019 Morningstar, Inc. All rights reserved. Neither Morningstar, its affiliates, nor the content providers guarantee the data or content contained herein to be accurate, complete or timely nor will they have any liability for its use or
distribution. Any Morningstar ratings/recommendations contained in this report are based on the full research report available from Morningstar or your adviser. Any general advice or ‘class service’ have been prepared by Morningstar
Australasia Pty Ltd (ABN: 95 090 665 544, AFSL: 240892) and/or Morningstar Research Ltd, subsidiaries of Morningstar, Inc, without reference to your objectives, financial situation or needs. Refer to our Financial Services Guide (FSG) for more
information at www.morningstar.com.au/s/fsg.pdf. You should consider the advice in light of these matters and if applicable, the relevant Product Disclosure Statement before making any decision to invest. Our publications, ratings and
products should be viewed as an additional investment resource, not as your sole source of information. Past performance does not necessarily indicate a financial product’s future performance. To obtain advice tailored to your situation,
contact a professional financial adviser. Some material is copyright and published under licence from ASX Operations Pty Ltd ACN 004 523 782.
Investment Detail | Print Date: 19 January 2019 Page 5 of 11
Vanguard Australian Fixed Interest Index
....................................................................................................................................................................................................................................................................................
Morningstar Category Product Type Legal Type Fund Status Morningstar Rating
Bonds - Australia Wholesale Investment Trusts Open QQQ
Out of 92 funds as at 31 Dec 2018
Manager's Quarterly Comments 30 Sep 2018 Performance 31 Dec 2018 13.0 Growth of $10,000
Fund
The Vanguard Australian Fixed Interest Index Fund returned 2014 2015 2016 2017 2018 12.25 $12,306
0.55% gross of fees over the September quarter compared 9.70 2.26 2.84 3.37 4.38
to the benchmark return of 0.54%. The yield to maturity 4.50 3.84 4.32 2.85 2.74 11.5 Market Index
increased by 0.03% to 2.59%. Returns were impacted by 4.96 -1.56 -1.45 0.47 1.60 10.75 $12,427
rising bond yields late in the quarter. 8.98 NAv NAv NAv NAv 10K
Category
PDS Objective $11,925
The Fund seeks to track the return (income and capital YTD Annual
appreciation) of the UBS Australian Composite Bond Index
before taking into account fees, expenses, and tax. NAv Total Return %
NAv Income Return %
Fund Investment Strategy NAv Growth Return %
NAv Tax-Adj Return %
The UBS Australian Composite Bond Index is a value
weighted index of approximately 360 securities (bonds) Trailing 6 Mth 1 Yr 3 Yr 5 Yr 10 Yr
issued by the Commonwealth Government of Australia,
State Government authorities and treasury corporations, as Q...u..a..r.t.i.l.e...R..a..n..k............................................&...........................&............................*............................*............................(....
well as investment-grade corporate issuers. Total Return % 2.77 4.38 3.53 4.48 5.03
Investment-grade issuers are defined as those rated BBB-
or higher by Standard & Poor¡¯s or Baa3 or higher by Income Return % 1.27 2.74 3.30 3.65 4.74
Moody¡¯s. Bond indices change far more quickly than share
indices because bonds have a finite life (maturity). Growth Return % 1.48 1.60 0.20 0.77 0.23
Tax Adjusted Return % NAv NAv NAv NAv NAv
...................................................................................................................................................................................
Market Index % 2.80 4.54 3.70 4.67 5.19
Category % 2.17 3.50 3.02 3.79 4.84
Market Index: Bloomberg AusBond Composite 0+Y TR AUD
Asset Allocation Risk Measures
Composition (31 Dec 2018) % Assets 3-Year Risk Measures Fund Category Index
Domestic Equity 0.00 Standard Deviation 2.51 2.28 2.48
Int'l Equity 0.00 Sharpe Ratio 0.65 0.59 0.73
Listed Property 0.00 R-Squared 99.60
Unlisted Property 0.00 Beta 1.01 86.68 --
Dom Fixed Interest Alpha -0.18 0.87 --
Intl Fixed Interest 100.00 -0.34 --
Cash 0.00
Other 0.00
0.00
Operations Fees
Investment Details One-time
Ticker 4487 Entry Fee/Contribution Fee 0.00%
APIR Code VAN0001AU Exit Fee/Withdrawal Fee 0.00%
Fund Inception 06 Jun 1997 .B..u..y./.S...e..ll..S..p..r.e..a..d......................................................0....0..4..%..
Annual
Net Assets (Mil) 31 Dec 2018 $5263.98
Entry Price 17 Jan 2019 $1.1384 ICR pa (30 Jun 2018) 0.24%
.E.x..i.t..P..r.i.c..e...1..7...J..a..n..2..0..1..9.........................................$..1....1..3..7..7. Performance Fee pa (30 Jun 2018) NAv
Purchase Information
Management Fee pa 0.24%
Minimum Initial Investment $500,000
Admin Fee pa 0.00%
Minimum Additional Investment $5,000
Distribution
Minimum Withdrawal $1,000 Year Ended 30 June 2015 2016 2017 2018
4.53 5.38 3.4 3.23
Switching Allowed Yes Distributed CPU
.D..i.s.t..r.i.b.u..t..io..n..s...F..r.e..q..u..e.n..c..y......................................Q...u.a..r.t..e..r.l.y
Manager Info
Responsible Entity(RE) Vanguard Investments
Australia Ltd
RE Telephone +61 1300655101
RE Website www.vanguard.com.au
Fund Manager Vanguard Investments
Australia Ltd
© 2019 Morningstar, Inc. All rights reserved. Neither Morningstar, its affiliates, nor the content providers guarantee the data or content contained herein to be accurate, complete or timely nor will they have any liability for its use or
distribution. Any Morningstar ratings/recommendations contained in this report are based on the full research report available from Morningstar or your adviser. Any general advice or ‘class service’ have been prepared by Morningstar
Australasia Pty Ltd (ABN: 95 090 665 544, AFSL: 240892) and/or Morningstar Research Ltd, subsidiaries of Morningstar, Inc, without reference to your objectives, financial situation or needs. Refer to our Financial Services Guide (FSG) for more
information at www.morningstar.com.au/s/fsg.pdf. You should consider the advice in light of these matters and if applicable, the relevant Product Disclosure Statement before making any decision to invest. Our publications, ratings and
products should be viewed as an additional investment resource, not as your sole source of information. Past performance does not necessarily indicate a financial product’s future performance. To obtain advice tailored to your situation,
contact a professional financial adviser. Some material is copyright and published under licence from ASX Operations Pty Ltd ACN 004 523 782.
Investment Detail | Print Date: 19 January 2019 Page 6 of 11
Vanguard Australian Shares Index
....................................................................................................................................................................................................................................................................................
Morningstar Category Product Type Legal Type Fund Status Morningstar Rating
Equity Australia Large Blend Wholesale Investment Trusts Open QQQQ
Out of 277 funds as at 31 Dec 2018
Manager's Quarterly Comments 30 Sep 2018 Performance 31 Dec 2018
The Vanguard Index Australian Shares Fund returned 15.2 Growth of $10,000
1.48% gross of fees over the September quarter compared Fund
to the benchmark return of 1.50%. At a sector level the 13.9 $13,424
largest contributors were Communication Services
(+16.92%) and Health Care (+4.56%) which contributed 12.6 Market Index
0.6% and 0.4% respectively. Meanwhile, Materials $13,564
(-1.27%) were the largest detractor, negatively impacting
the Fund’s performance by -0.2%. From an individual 11.3 Category
security perspective, Telstra Corporation (+26.05%) was 10K $12,829
the largest contributor, while Westpac Banking Corporation
(-4.68%) detracted the most, subtracting -0.3%. 2014 2015 2016 2017 2018 YTD Annual
PDS Objective 5.16 2.62 11.44 11.82 -3.17 NAv Total Return %
NAv Income Return %
The Fund seeks to track the return (income and capital 3.96 4.53 5.16 4.98 4.68 NAv Growth Return %
appreciation) of the S&P/ASX 300 Index before taking into NAv Tax-Adj Return %
account fees, expenses, and tax. 1.05 -1.93 6.01 6.49 -7.57
Fund Investment Strategy 5.60 15.00 12.03 NAv NAv
The Vanguard Index Australian Shares Fund gains its Trailing 6 Mth 1 Yr 3 Yr 5 Yr 10 Yr
exposure to securities in the index by investing in the
Vanguard Australian Shares Index Fund (the underlying .Q..u..a..r.t.i.l.e...R..a..n..k............................................&...........................&............................&............................*............................*....
fund). The fund is exposed to all of the securities in the Total Return % -7.06 -3.17 6.46 5.42 8.69
index most of time, allowing for individual security
weightings to vary marginally from the index from time to Income Return % 2.43 4.68 4.94 4.66 4.50
time. The fund may be exposed to securities that have
been removed from or are expected to be included in the Growth Return % -9.32 -7.57 1.43 0.67 3.99
index.
Tax Adjusted Return % NAv NAv NAv NAv NAv
...................................................................................................................................................................................
Market Index % -6.83 -2.84 6.69 5.63 9.00
Category % -8.88 -5.44 4.88 4.43 7.95
Market Index: S&P/ASX 200 TR AUD
Asset Allocation Risk Measures
Composition (31 Dec 2018) % Assets 3-Year Risk Measures Fund Category Index
Domestic Equity 100.00 Standard Deviation 9.75 10.07 9.83
Int'l Equity Sharpe Ratio 0.50 0.34 0.52
Listed Property 0.00 R-Squared 99.93 89.87
Unlisted Property 0.00 Beta 0.99 0.97 --
Dom Fixed Interest 0.00 Alpha -0.18 -1.51 --
Intl Fixed Interest 0.00 --
Cash 0.00
Other 0.00
0.00
Operations Fees
Investment Details One-time
Ticker 4488 Entry Fee/Contribution Fee 0.00%
APIR Code VAN0002AU Exit Fee/Withdrawal Fee 0.00%
Fund Inception 30 Jun 1997 .B..u..y./.S...e..ll..S..p..r.e..a..d......................................................0....0..3..%..
Annual
Net Assets (Mil) 31 Dec 2018 $9729.24
Entry Price 17 Jan 2019 $2.0905 ICR pa (30 Jun 2018) 0.18%
.E.x..i.t..P..r.i.c..e...1..7...J..a..n..2..0..1..9.........................................$..2....0..9..0..1. Performance Fee pa (30 Jun 2018) NAv
Purchase Information
Management Fee pa 0.18%
Minimum Initial Investment $500,000
Admin Fee pa 0.00%
Minimum Additional Investment $5,000
Distribution
Minimum Withdrawal $1,000 Year Ended 30 June 2015 2016 2017 2018
8.46 9.71 10.67 9.91
Switching Allowed Yes Distributed CPU
.D..i.s.t..r.i.b.u..t..io..n..s...F..r.e..q..u..e.n..c..y......................................Q...u.a..r.t..e..r.l.y
Manager Info
Responsible Entity(RE) Vanguard Investments
Australia Ltd
RE Telephone +61 1300655101
RE Website www.vanguard.com.au
Fund Manager Vanguard Investments
Australia Ltd
© 2019 Morningstar, Inc. All rights reserved. Neither Morningstar, its affiliates, nor the content providers guarantee the data or content contained herein to be accurate, complete or timely nor will they have any liability for its use or
distribution. Any Morningstar ratings/recommendations contained in this report are based on the full research report available from Morningstar or your adviser. Any general advice or ‘class service’ have been prepared by Morningstar
Australasia Pty Ltd (ABN: 95 090 665 544, AFSL: 240892) and/or Morningstar Research Ltd, subsidiaries of Morningstar, Inc, without reference to your objectives, financial situation or needs. Refer to our Financial Services Guide (FSG) for more
information at www.morningstar.com.au/s/fsg.pdf. You should consider the advice in light of these matters and if applicable, the relevant Product Disclosure Statement before making any decision to invest. Our publications, ratings and
products should be viewed as an additional investment resource, not as your sole source of information. Past performance does not necessarily indicate a financial product’s future performance. To obtain advice tailored to your situation,
contact a professional financial adviser. Some material is copyright and published under licence from ASX Operations Pty Ltd ACN 004 523 782.
Investment Detail | Print Date: 19 January 2019 Page 7 of 11
Vanguard International Shares Index
....................................................................................................................................................................................................................................................................................
Morningstar Category Product Type Legal Type Fund Status Morningstar Rating
Equity World Large Blend Wholesale Investment Trusts Open QQQ
Out of 193 funds as at 31 Dec 2018
Manager's Quarterly Comments 30 Sep 2018 Performance 31 Dec 2018
The Vanguard Index International Shares Fund returned 19.2 Growth of $10,000
7.42% gross of fees over the September quarter compared Fund
to the benchmark return of 7.35% with the Fund benefiting 16.9 $16,242
from lower withholding tax than the benchmark. From a
country perspective, the US (+9.62%) again made the 14.6 Market Index
largest positive contribution by adding 6.0% to the Fund’s $16,164
return. Also, Japan (+5.91%) and Switzerland (+9.57%)
both contributed, adding 0.5% and 0.3% respectively. 12.3 Category
There were no significant detracting countries. At a sector 10K $15,176
level, Information Technology (+12.98%) and Health Care
(+14.06%) were the largest contributors adding 2.0% and 2014 2015 2016 2017 2018 YTD Annual
1.7% respectively, and no one sector detracted overall.
This quarter, the AUD mostly depreciated against most 15.25 11.97 7.93 13.55 1.52 NAv Total Return %
major currencies with a decline of -2.1% against the US 2.97 4.69 NAv Income Return %
dollar, -1.6% against the Euro and -0.9% against the British 11.90 6.71 3.40 6.22 4.39 NAv Growth Return %
Pound. However, it appreciated against the 14.91 NAv NAv Tax-Adj Return %
4.27 6.52 -2.82
PDS Objective
NAv NAv NAv
The fund seeks to track the return (income and capital
appreciation) of the MSCI World (ex-Australia) Index (net Trailing 6 Mth 1 Yr 3 Yr 5 Yr 10 Yr
dividends reinvested), in Australian dollars, before taking
into account Fund fees, expenses and tax. .Q..u..a..r.t.i.l.e...R..a..n..k............................................*...........................*............................*............................&............................*....
Total Return % -4.52 1.52 7.55 9.93 9.62
Income Return % 1.67 4.39 4.67 4.33 3.13
Growth Return % -6.15 -2.82 2.58 5.21 6.20
Tax Adjusted Return % NAv NAv NAv NAv NAv
...................................................................................................................................................................................
Market Index % -4.56 1.52 7.49 9.81 9.57
Category % -5.67 -0.70 6.37 8.42 8.97
Fund Investment Strategy Market Index: MSCI World Ex Australia NR AUD
The Fund will hold most of the securities in the Index, Asset Allocation Risk Measures
allowing for individual security weightings to vary from the
Index from time to time. The Fund will be fully exposed to Composition (31 Dec 2018) % Assets 3-Year Risk Measures Fund Category Index
the fluctuating values of foreign currencies, as there will Domestic Equity 0.00 Standard Deviation 9.78 9.90 9.83
not be any hedging of foreign currencies to the Australian Int'l Equity Sharpe Ratio 0.60 0.53 0.59
dollar. Listed Property 100.00 R-Squared 99.95
Unlisted Property 0.00 Beta 1.00 86.12 --
Dom Fixed Interest 0.00 Alpha 0.08 0.93 --
Intl Fixed Interest 0.00 -0.22 --
Cash 0.00
Other 0.00
0.00
Operations Fees
Investment Details One-time
Ticker 4489 Entry Fee/Contribution Fee 0.00%
APIR Code VAN0003AU Exit Fee/Withdrawal Fee 0.00%
Fund Inception 06 Jun 1997 .B..u..y./.S...e..ll..S..p..r.e..a..d......................................................0....0..4..%..
Annual
Net Assets (Mil) 31 Dec 2018 $12467.28
Entry Price 17 Jan 2019 $2.098 ICR pa (30 Jun 2018) 0.18%
.E.x..i.t..P..r.i.c..e...1..7...J..a..n..2..0..1..9.........................................$..2....0..9..7..2. Performance Fee pa (30 Jun 2018) NAv
Purchase Information
Management Fee pa 0.18%
Minimum Initial Investment $500,000
Admin Fee pa 0.00%
Minimum Additional Investment $1,000
Distribution
Minimum Withdrawal $1,000 Year Ended 30 June 2015 2016 2017 2018
8.7 6.19 12.81 7.74
Switching Allowed Yes Distributed CPU
.D..i.s.t..r.i.b.u..t..io..n..s...F..r.e..q..u..e.n..c..y......................................Q...u.a..r.t..e..r.l.y
Manager Info
Responsible Entity(RE) Vanguard Investments
Australia Ltd
RE Telephone +61 1300655101
RE Website www.vanguard.com.au
Fund Manager Vanguard Investments
Australia Ltd
© 2019 Morningstar, Inc. All rights reserved. Neither Morningstar, its affiliates, nor the content providers guarantee the data or content contained herein to be accurate, complete or timely nor will they have any liability for its use or
distribution. Any Morningstar ratings/recommendations contained in this report are based on the full research report available from Morningstar or your adviser. Any general advice or ‘class service’ have been prepared by Morningstar
Australasia Pty Ltd (ABN: 95 090 665 544, AFSL: 240892) and/or Morningstar Research Ltd, subsidiaries of Morningstar, Inc, without reference to your objectives, financial situation or needs. Refer to our Financial Services Guide (FSG) for more
information at www.morningstar.com.au/s/fsg.pdf. You should consider the advice in light of these matters and if applicable, the relevant Product Disclosure Statement before making any decision to invest. Our publications, ratings and
products should be viewed as an additional investment resource, not as your sole source of information. Past performance does not necessarily indicate a financial product’s future performance. To obtain advice tailored to your situation,
contact a professional financial adviser. Some material is copyright and published under licence from ASX Operations Pty Ltd ACN 004 523 782.
Investment Detail | Print Date: 19 January 2019 Page 8 of 11
Vanguard Cash Plus
....................................................................................................................................................................................................................................................................................
Morningstar Category Product Type Legal Type Fund Status Morningstar Rating
Australian Cash Wholesale Investment Trusts Open
Manager's Quarterly Comments 30 Sep 2018 Performance 31 Dec 2018 12.0 Growth of $10,000
Fund
The Vanguard Cash Plus Fund returned 0.63% gross of fees 2014 2015 2016 2017 2018 11.5 $11,152
over the September quarter compared to the benchmark 2.65 2.24 2.39 2.07 1.93
return of 0.52%. The yield to maturity decreased by 0.09% 2.63 2.38 2.31 2.00 2.11 11.0 Market Index
to 2.26%. 0.02 -0.13 0.08 0.07 -0.17 $11,082
NAv NAv NAv NAv NAv
PDS Objective 10.5 Category
10K $10,950
The Fund aims to deliver regular income and a total return
that exceeds that of the UBS Australian Bank Bill Index in YTD Annual
two out of every three years, before taking into account
fees, expenses and tax. NAv Total Return %
NAv Income Return %
Fund Investment Strategy NAv Growth Return %
NAv Tax-Adj Return %
The Fund invests in high-quality, short-term money market
and debt securities. The Fund will maintain a modified Trailing 6 Mth 1 Yr 3 Yr 5 Yr 10 Yr
duration of nine months or less. Futures can be used to
manage the duration of the portfolio in line with the index. .Q..u..a..r.t.i.l.e...R..a..n..k............................................&...........................&............................&............................*............................*....
Total Return % 1.06 1.93 2.13 2.26 3.12
Income Return % 1.07 2.11 2.14 2.28 3.33
Growth Return % -0.01 -0.17 -0.01 -0.03 -0.21
Tax Adjusted Return % NAv NAv NAv NAv NAv
...................................................................................................................................................................................
Market Index % 0.99 1.95 1.89 2.12 3.00
Category % 0.86 1.60 1.65 1.87 2.73
Market Index: RBA Bank accepted Bills 90 Days
Asset Allocation Risk Measures
Composition (31 Dec 2018) % Assets 3-Year Risk Measures Fund Category Index
Domestic Equity 0.00 Standard Deviation 0.21 0.20 0.05
Int'l Equity 0.00 Sharpe Ratio 1.18 -3.30
Listed Property 0.00 R-Squared --
Unlisted Property 0.00 Beta -- -- --
Dom Fixed Interest Alpha -- -- --
Intl Fixed Interest 68.95 -- -- --
Cash 0.00
Other 31.05
0.00
Operations Fees
Investment Details One-time
Ticker 6427 Entry Fee/Contribution Fee 0.00%
APIR Code VAN0102AU Exit Fee/Withdrawal Fee 0.00%
Fund Inception 26 Aug 1998 .B..u..y./.S...e..ll..S..p..r.e..a..d......................................................0....0..5..%..
Annual
Net Assets (Mil) 31 Dec 2018 $1224.58
Entry Price 17 Jan 2019 $1.0194 ICR pa (30 Jun 2018) 0.29%
.E.x..i.t..P..r.i.c..e...1..7...J..a..n..2..0..1..9.........................................$..1....0..1..8..8. Performance Fee pa (30 Jun 2018) NAv
Purchase Information
Management Fee pa 0.29%
Minimum Initial Investment $500,000
Admin Fee pa 0.00%
Minimum Additional Investment $5,000
Distribution
Minimum Withdrawal $1,000 Year Ended 30 June 2015 2016 2017 2018
2.58 2.34 2.14 2.01
Switching Allowed Yes Distributed CPU
.D..i.s.t..r.i.b.u..t..io..n..s...F..r.e..q..u..e.n..c..y.......................................M....o..n..t.h..l.y
Manager Info
Responsible Entity(RE) Vanguard Investments
Australia Ltd
RE Telephone +61 1300655101
RE Website www.vanguard.com.au
Fund Manager Vanguard Investments
Australia Ltd
© 2019 Morningstar, Inc. All rights reserved. Neither Morningstar, its affiliates, nor the content providers guarantee the data or content contained herein to be accurate, complete or timely nor will they have any liability for its use or
distribution. Any Morningstar ratings/recommendations contained in this report are based on the full research report available from Morningstar or your adviser. Any general advice or ‘class service’ have been prepared by Morningstar
Australasia Pty Ltd (ABN: 95 090 665 544, AFSL: 240892) and/or Morningstar Research Ltd, subsidiaries of Morningstar, Inc, without reference to your objectives, financial situation or needs. Refer to our Financial Services Guide (FSG) for more
information at www.morningstar.com.au/s/fsg.pdf. You should consider the advice in light of these matters and if applicable, the relevant Product Disclosure Statement before making any decision to invest. Our publications, ratings and
products should be viewed as an additional investment resource, not as your sole source of information. Past performance does not necessarily indicate a financial product’s future performance. To obtain advice tailored to your situation,
contact a professional financial adviser. Some material is copyright and published under licence from ASX Operations Pty Ltd ACN 004 523 782.
Investment Detail | Print Date: 19 January 2019 Page 9 of 11
Vanguard International Crdt Secs Idx Hdg
....................................................................................................................................................................................................................................................................................
Morningstar Category Product Type Legal Type Fund Status Morningstar Rating
Diversified Credit Wholesale Investment Trusts Open QQQQ
Out of 55 funds as at 31 Dec 2018
Manager's Quarterly Comments 30 Sep 2018 Performance 31 Dec 2018 13.0 Growth of $10,000
Fund
The Vanguard International Credit Securities Index Fund 2014 2015 12.25 $12,243
(Hedged) returned 0.63% gross of fees over the 9.46 2.13
September quarter compared to the benchmark return of 2.14 0.00 11.5 Market Index
0.56%. The yield to maturity increased by 0.06% to 2.78%. 7.13 2.13 10.75 $12,475
The income return offset the impact of rising bond yields. 9.12 2.13 10K
Category
PDS Objective $11,740
The Fund seeks to track the return (income and capital 2016 2017 2018 YTD Annual
appreciation) of the Barclays Capital Global Aggregate
Government-Related and Corporate Index hedged into 6.02 5.24 -0.21 NAv Total Return %
Australian dollars before taking into account fees, 4.17 9.43 3.63 NAv Income Return %
expenses, and tax. 1.67 -4.09 -3.73 NAv Growth Return %
NAv NAv NAv NAv Tax-Adj Return %
Fund Investment Strategy Trailing 6 Mth 1 Yr 3 Yr 5 Yr 10 Yr
The Fund aims to hold an appropriate number of securities .Q..u..a..r.t.i.l.e...R..a..n..k............................................*...........................)............................*............................&............................&....
so as to produce a portfolio risk exposure profile consistent Total Return % 1.03 -0.21 3.65 4.48 6.50
with that of the index. The Fund may hold non-index
securities that were index securities at the time of Income Return % 1.14 3.63 5.71 3.83 4.62
purchase, or had the risk characteristics of index securities
at the time of purchase. Growth Return % -0.11 -3.73 -2.08 0.54 1.55
Tax Adjusted Return % NAv NAv NAv NAv NAv
...................................................................................................................................................................................
Market Index % 0.77 -1.17 4.10 4.90 8.13
Category % 0.73 1.10 3.39 3.37 6.04
Market Index: BBgBarc Global Agg Corp TR Hdg AUD
Asset Allocation Risk Measures
Composition (31 Dec 2018) % Assets 3-Year Risk Measures Fund Category Index
Domestic Equity 0.00 Standard Deviation 2.58 1.48 3.02
Int'l Equity 0.00 Sharpe Ratio 0.68 1.37 0.73
Listed Property 0.00 R-Squared 96.19
Unlisted Property 0.00 Beta 0.84 25.83 --
Dom Fixed Interest 2.63 Alpha -0.10 0.27 --
Intl Fixed Interest 0.85 --
Cash 97.37
Other 0.00
0.00
Operations Fees
Investment Details One-time
Ticker 9152 Entry Fee/Contribution Fee 0.00%
APIR Code VAN0106AU Exit Fee/Withdrawal Fee 0.00%
Fund Inception 23 Feb 2001 .B..u..y./.S...e..ll..S..p..r.e..a..d......................................................0....4..1..%..
Annual
Net Assets (Mil) 31 Dec 2018 $667.65
Entry Price 17 Jan 2019 $1.1352 ICR pa (30 Jun 2018) 0.32%
.E.x..i.t..P..r.i.c..e...1..7...J..a..n..2..0..1..9.........................................$..1....1..3..0..6. Performance Fee pa (30 Jun 2018) NAv
Purchase Information
Management Fee pa 0.32%
Minimum Initial Investment $500,000
Admin Fee pa 0.00%
Minimum Additional Investment $5,000
Distribution
Minimum Withdrawal $1,000 Year Ended 30 June 2015 2016 2017 2018
0 5.24 7.93 5.98
Switching Allowed Yes Distributed CPU
.D..i.s.t..r.i.b.u..t..io..n..s...F..r.e..q..u..e.n..c..y......................................Q...u.a..r.t..e..r.l.y
Manager Info
Responsible Entity(RE) Vanguard Investments
Australia Ltd
RE Telephone +61 1300655101
RE Website www.vanguard.com.au
Fund Manager Vanguard Investments
Australia Ltd
© 2019 Morningstar, Inc. All rights reserved. Neither Morningstar, its affiliates, nor the content providers guarantee the data or content contained herein to be accurate, complete or timely nor will they have any liability for its use or
distribution. Any Morningstar ratings/recommendations contained in this report are based on the full research report available from Morningstar or your adviser. Any general advice or ‘class service’ have been prepared by Morningstar
Australasia Pty Ltd (ABN: 95 090 665 544, AFSL: 240892) and/or Morningstar Research Ltd, subsidiaries of Morningstar, Inc, without reference to your objectives, financial situation or needs. Refer to our Financial Services Guide (FSG) for more
information at www.morningstar.com.au/s/fsg.pdf. You should consider the advice in light of these matters and if applicable, the relevant Product Disclosure Statement before making any decision to invest. Our publications, ratings and
products should be viewed as an additional investment resource, not as your sole source of information. Past performance does not necessarily indicate a financial product’s future performance. To obtain advice tailored to your situation,
contact a professional financial adviser. Some material is copyright and published under licence from ASX Operations Pty Ltd ACN 004 523 782.
Investment Detail | Print Date: 19 January 2019 Page 10 of 11
Vanguard Emerging Markets Shares Index
....................................................................................................................................................................................................................................................................................
Morningstar Category Product Type Legal Type Fund Status Morningstar Rating
Equity Emerging Markets Wholesale Investment Trusts Open QQQ
Out of 50 funds as at 31 Dec 2018
Manager's Quarterly Comments 30 Sep 2018 Performance 31 Dec 2018
The Vanguard Emerging Markets Shares Index Fund 16.0 Growth of $10,000
returned 1.04% gross of fees over the September quarter Fund
compared to the benchmark return of 1.00% with the Fund 14.5 $14,149
benefiting from lower withholding tax than the benchmark.
At a country level, Taiwan (+9.34%) and Brazil (+8.54%) 13.0 Market Index
were the largest contributors to the portfolio’s return $14,382
adding 1.1% and 0.5% respectively, while China (-5.43%)
and South Africa (-5.26%) were the largest detractors, 11.5 Category
subtracting -0.3% and -1.8%. From a sector perspective, 10K $13,748
Energy (+16.68%) and Financials (+4.11%) were the
most material contributors adding +1.0% and 0.9% 2014 2015 2016 2017 2018 YTD Annual
respectively, and Consumer Services (-7.51%) and
Consumer Discretionary (-8.05%) were the most notable 5.96 -4.63 11.68 26.53 -5.69 NAv Total Return %
detractors, subtracting -1.1% and -0.9% respectively. NAv Income Return %
2.39 2.14 5.42 3.98 2.01 NAv Growth Return %
PDS Objective NAv Tax-Adj Return %
3.47 -6.69 5.82 21.54 -7.58
The Fund seeks to track the return (income and capital
appreciation) of the MSCI Emerging Markets Index (with NAv NAv NAv NAv NAv
net dividends reinvested) in Australian dollars before taking
into account fees, expenses, and tax. Trailing 6 Mth 1 Yr 3 Yr 5 Yr 10 Yr
Fund Investment Strategy Q...u..a..r.t.i.l.e...R..a..n..k............................................(...........................(............................*............................*............................*....
Total Return % -4.63 -5.69 10.04 6.13 7.61
The MSCI Emerging Markets Index comprises
approximately 800 securities (shares) from approximately Income Return % 1.16 2.01 3.79 3.18 2.62
21 of the world’s emerging economies. The Fund will hold
most of the securities in the index, allowing for individual Growth Return % -5.74 -7.58 5.93 2.79 4.82
security weightings to vary marginally from the index from
time to time. The Fund may invest in securities that have Tax Adjusted Return % NAv NAv NAv NAv NAv
been removed from or are expected to be included in the ...................................................................................................................................................................................
index. Market Index % -3.96 -5.10 10.45 6.64 7.92
Category % -3.84 -5.21 8.79 5.71 6.74
Market Index: MSCI EM NR AUD
Asset Allocation Risk Measures
Composition (31 Dec 2018) % Assets 3-Year Risk Measures Fund Category Index
Domestic Equity 0.00 Standard Deviation 8.88 9.09 9.09
Int'l Equity Sharpe Ratio 0.91 0.78 0.94
Listed Property 100.00 R-Squared 99.17
Unlisted Property 0.00 Beta 0.97 79.98 --
Dom Fixed Interest 0.00 Alpha -0.16 0.89 --
Intl Fixed Interest 0.00 -0.49 --
Cash 0.00
Other 0.00
0.00
Operations Fees
Investment Details One-time
Ticker 4743 Entry Fee/Contribution Fee 0.00%
APIR Code VAN0005AU Exit Fee/Withdrawal Fee 0.00%
Fund Inception 31 Dec 1997 .B..u..y./.S...e..ll..S..p..r.e..a..d......................................................0....5..1..%..
Annual
Net Assets (Mil) 31 Dec 2018 $1123.30
Entry Price 17 Jan 2019 $2.0511 ICR pa (30 Jun 2018) 0.56%
.E.x..i.t..P..r.i.c..e...1..7...J..a..n..2..0..1..9.........................................$..2....0..4..0..7. Performance Fee pa (30 Jun 2018) NAv
Purchase Information
Management Fee pa 0.56%
Minimum Initial Investment $500,000
Admin Fee pa 0.00%
Minimum Additional Investment $5,000
Distribution
Minimum Withdrawal $1,000 Year Ended 30 June 2015 2016 2017 2018
3.96 9.09 7.67 4.42
Switching Allowed Yes Distributed CPU
.D..i.s.t..r.i.b.u..t..io..n..s...F..r.e..q..u..e.n..c..y......................................Q...u.a..r.t..e..r.l.y
Manager Info
Responsible Entity(RE) Vanguard Investments
Australia Ltd
RE Telephone +61 1300655101
RE Website www.vanguard.com.au
Fund Manager Vanguard Investments
Australia Ltd
© 2019 Morningstar, Inc. All rights reserved. Neither Morningstar, its affiliates, nor the content providers guarantee the data or content contained herein to be accurate, complete or timely nor will they have any liability for its use or
distribution. Any Morningstar ratings/recommendations contained in this report are based on the full research report available from Morningstar or your adviser. Any general advice or ‘class service’ have been prepared by Morningstar
Australasia Pty Ltd (ABN: 95 090 665 544, AFSL: 240892) and/or Morningstar Research Ltd, subsidiaries of Morningstar, Inc, without reference to your objectives, financial situation or needs. Refer to our Financial Services Guide (FSG) for more
information at www.morningstar.com.au/s/fsg.pdf. You should consider the advice in light of these matters and if applicable, the relevant Product Disclosure Statement before making any decision to invest. Our publications, ratings and
products should be viewed as an additional investment resource, not as your sole source of information. Past performance does not necessarily indicate a financial product’s future performance. To obtain advice tailored to your situation,
contact a professional financial adviser. Some material is copyright and published under licence from ASX Operations Pty Ltd ACN 004 523 782.
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