Vanguard® Index Hedged International Shares Fund Vanguard fund profile At a glance As at 30 September 2014 APIR code Management costs First $50,000 Next $50,000 Balance over $100,000 Buy spread Sell spread Commencement Minimum investment Income distribution Investment style VAN0107AU 0.90% p.a. 0.60% p.a. 0.35% p.a. +0.18% –0.13% 19 January 2001 $5,000 Half yearly Features, benefits & risks Diversification The underlying fund invests in shares listed on the exchanges of the world’s major economies. Capital growth potential Potential for effective after-tax returns Hedged into Australian Dollars Offers long term capital growth potential through a diversified portfolio of international shares. Our buy and hold approach minimises portfolio turnover to take advantage of available capital gains tax concessions. Protects against currency fluctuations. Low cost Low management costs with no entry, exit or switching fees other than usual buy/sell spreads. Easily switch funds and make withdrawals with no associated costs other than usual buy/sell spreads. 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. Please see Product Disclosure Statement for further details. Objective The fund seeks to track the return of the MSCI World ex-Australia Index (with net dividends reinvested) hedged into Australian dollars, before taking into account fees, expenses and tax. Strategy 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) (the underlying fund). Through the underlying fund, the Vanguard Index Hedged International Shares Fund is exposed to index futures, forward foreign exchange contracts and 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. Flexibility Risks Connect with Vanguard™ > vanguard.com.au Vanguard® Index Hedged International Shares Fund Dated 30 September 2014 Overview Holdings Fund Fund size (AUD) Inception date Management costs Buy/sell spread No. of securities6 Benchmark5 Underlying fund $124.5 Million 19 January 2001 0.90% pa - for that portion up to $50,000 0.60% pa - for that portion from $50,001 to $100,000 0.35% pa - for that portion over $100,000 +0.18% / -0.13% 1,545 MSCI World ex-Australia Index (with net dividends reinvested) hedged into Australian dollars Vanguard International Shares Index Fund (Hedged) Top 10 holdings Country 1 Apple United States 2 Exxon Mobil United States 3 Microsoft United States 4 Johnson & Johnson United States 5 Wells Fargo & Co United States 6 General Electric United States 7 Nestle Switzerland 8 JP Morgan Chase United States 9 Procter & Gamble United States 10 Chevron United States The Top 10 holdings represent 9.8% of the total underlying fund Performance return1,2 (%) Fund Gross 1 month 3 months 6 months 1 year 3 years (pa) 5 years (pa) 10 years (pa) Inception (pa) -0.64 1.59 6.87 18.71 23.07 15.10 9.11 5.57 Year to year gross return 1,2 Bmk -0.68 1.48 6.68 18.30 22.69 14.72 8.87 5.39 Fund Total -0.72 1.36 6.39 17.65 21.98 14.08 8.14 4.62 Regional allocation6 (%) Dist Growth 0.00 0.00 0.00 0.00 1.12 5.75 5.98 5.85 -0.72 1.36 6.39 17.65 20.86 8.33 2.16 -1.23 (%) Dec - Dec YTD 2014 2013 2012 2011 Fund Bmk 8.56 n/a 32.55 19.09 -1.52 8.24 n/a 32.25 18.72 -1.92 62.5 62.5 North America 18.3 18.3 Europe ex UK Japan 8.5 8.5 UK 8.7 8.7 Asia Pacific (ex AUS ex JPN) 1.8 1.8 Other 0.0 0.0 Australia 0.0 0.0 Middle East 0.2 0.2 Emerging Markets 0.0 0.0 June - June Fund 1.59 24.96 24.95 0.81 27.14 Bmk 1.48 24.64 24.56 0.42 26.72 Sector allocation6 (%) 9.4 9.4 Energy Unit prices 3 Net asset value $0.8442 Purchase Withdrawal $0.8458 $0.8431 Materials 5.1 5.1 11.1 11.1 Industrials Income distribution4 Half year ended 30 June 2014 Amount (CPU) Reinvestment price nil n/a Notes 1. Past performance is not an indication of future performance 2. Returns assume reinvestment of all distributions. Returns for periods longer than 1 year are annualised. Fund gross returns are before management costs and taxes, but after transaction and operational costs. Fund total return is the fund gross return less management costs. Index returns do not allow for taxes, management, transaction and operational costs. 3. Month end cumulative-distribution 4. Past distributions are not an indication of future distributions 5. Benchmark is calculated by Vanguard using MSCI data and methodology 6. Figures as per underlying fund 12.0 12.1 Consumer Discretionary 9.7 9.7 Consumer Staples 12.6 12.6 Health Care 19.9 19.8 Financials 13.4 13.4 Information Technology Telecom. Services 3.5 3.5 Utilities 3.3 3.3 Connect with VanguardTM > vanguard.com.au > 1300 655 101 Vanguard Investments Australia Ltd (ABN 72 072 881 086 / AFS Licence 227263) 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 on our website or by calling us. This information was prepared in good faith and we accept no liability for any errors or omissions. Past performance is not an indication of future performance. © 2014 Vanguard Investments Australia Ltd. All rights reserved. The data and content contained herein which are sourced from Morningstar are not guaranteed to be accurate, complete or timely. Neither Morningstar, nor its affiliates nor their content providers will have any liability for use or distribution of any of this information. To the extent that any of the content above constitutes advice, it is general advice that has been prepared by Morningstar Australasia Pty Ltd ABN: 95 090 665 544, AFSL: 240892 (a subsidiary of Morningstar, Inc.), without reference to your objectives, financial situation or needs. Before acting on any advice, you should consider the appropriateness of the advice and we recommend you obtain financial, legal and taxation advice before making any financial investment decision. If applicable investors should obtain the relevant product disclosure statement and consider it before making any decision to invest. Please refer to our Financial Services Guide (FSG) for more information at www.morningstar.com.au/fsg.pdf. ©2014 Morningstar, Inc. All rights reserved.