Vanguard Alternatives Global Listed Infrastructure

Vanguard  

Investment Style: Enhanced yield - global listed infrastructure

Vanguard Investments Australia Limited (Vanguard) is a wholly-owned subsidiary of The Vanguard Group, based in Valley Forge, Pennsylvania. The Vanguard Group, Inc. has a history of specialisation in public offer index management dating back to 1976. Vanguard Australia was incorporated in February 1996 to offer index management services to Australian investors, with investment management (excluding regional trading desks), operations and client servicing located in Melbourne.

Vanguard's objective is to target a dividend yield of 0.50 percent per annum above that of an Intech customised global listed infrastructure benchmark before fees, with low transaction costs. The return is expected to be broadly in line with that of the customised index over the long term.

Vanguard employs an optimisation process which allows the highly-efficient management of change, both index change and portfolio cashflows. The firm's view is that optimisation should result in low tracking error with superior after-cost returns than full replication. Vanguard strongly believes that the minimisation of costs is critical to success in managing passive portfolios. Optimisation of structure allows for the avoidance of the high costs associated with many small trades as well as working around the non-availability of assets and minimum transaction sizes.

The global listed infrastructure portfolio is focused on those infrastructure sub-sectors expected by Intech to generally exhibit lower volatility and low correlation with broader sharemarkets.

Vanguard Australia's investment team is led by Joseph Brennan as Chief Investment Officer. The team operates in four divisions; Equities, Fixed Interest, Investment Solutions & Research and Investment Risk. International and Australian shares and property securities are managed by the Equities Team led by Alla Kolganova (Head of Equities).