Vanguard launches government bond index fund
Vanguard Investments has launched an Australian Government Bond Index Fund which it said will offer investors a simple, low-cost and diversified investment in a government backed guaranteed asset base.
The fund invests in government and semi-government bonds, and seeks to match the total return of the UBS Australian Government Bond Index, before fees and expenses.
Vanguard principal and head of fixed interest Roger McIntosh said a key feature of the fund is its zero exposure to non-government bonds.
He said the fund “together with the Vanguard International Fixed Interest Index Fund (hedged) will allow investors access to a highly diversified, global portfolio of fixed interest securities that are backed by government, semi-government and government guaranteed entities”.
The fund has management fees of just 0.29 per cent per annum with no entry, exit or switching fees. Unit prices are calculated daily with income paid quarterly. The fund is open to minimum applications of $500,000.
Recommended for you
Digital advice tools are on the rise, but licensees will need to ensure they still meet adviser obligations or potentially risk a class action if clients lose money from a rogue algorithm.
Shaw and Partners has merged with Sydney wealth manager Kennedy Partners Wealth, while Ord Minnett has hired a private wealth adviser from Morgan Stanley.
Australian investors are more confident than their APAC peers in reaching their financial goals and are targeting annual gains of more than 10 per cent, according to Fidelity International.
Zenith Investment Partners has lost its head of portfolio solutions Steven Tang after 17 years with the firm, the latest in a series of senior exits from the research house.
