Fund of the month

The Fund of the Month based on our customers' investment choices in January 2010 was the Australian Shares Index Fund from Vanguard.

Brokerage on this fund is discounted to 0.25% until 11am, 12 March 2010

We've asked Vanguard a few questions to learn more about the fund.

January 2010 snapshot ofAustralian Shares Index Fundperformance over this month

The Vanguard Australian Share Index Fund continued to meet its performance objective delivering index-like returns (S&P/ASX 300, -6.17%). We would encourage investors to maintain a long term view of their investments and stay the course. A longer investment timeframe can ride out the market fluctuations resulting in smoother returns over time.

What is the investment objective of the fund?

The Vanguard Australian Shares Index Fund seeks to match the return (income and capital appreciation) of the S&P/ASX 300 Index before taking into account fund fees and expenses.

The index
The S&P/ASX 300 Index comprises approximately 300 Australian equity securities (shares) and represents more than 94% of the value of all Australian-based companies and property trusts listed on the Australian Securities Exchange (ASX).

What is the investment strategy of the fund?

The fund will hold most of the securities in the index, allowing for individual security weightings to vary marginally from the index from time to time. The fund may invest in securities that have been or are expected to be included in the index.

What is the asset allocation?

Asset Allocation (GICS Sector):

Asset allocation

Where this fund may fit within the broader allocation of a portfolio

long-term investors (usually five years plus)
investors seeking long-term capital growth and some tax-effective income
investors seeking a tax-effective investment
investors using a core/satellite strategy seeking an index fund for the core of their Australian shares portfolio
higher income earners using a gearing strategy
self managed super funds

More information

Download the fund profile for information on the fund's performance, investment style and more.

Legals

Past performance is not an indication of future performance.
Vanguard Investments Australia Ltd (ABN 72 072 881 086 / AFS Licence 227263 / RSE Licence L0001335) is the product issuer. We have not taken your circumstances into account when preparing the above information so it may not be applicable to your circumstances. You should consider your circumstances and our Product Disclosure Statement (PDS) before making any investment decision. You can access our PDS at www.vanguard.com.au or by calling 1300 655 101. This information is provided in good faith and we accept no liability for any errors or omissions.

We are the trustee of: Vanguard ® Personal Superannuation Plan ABN 81 550 468 553/ Vanguard ® LifeStrategy ® Index PST - Conservative ABN 73 765 732 050/ Vanguard ® LifeStrategy ® Index PST - Balanced ABN 23 846 775 905/ Vanguard ® LifeStrategy ® Index PST - Growth ABN 95 836 361 772/ Vanguard ® LifeStrategy ® Index PST - High Growth ABN 61 378 605 876.