Transacting with Vanguard

How do I invest with Vanguard?

To start investing with Vanguard, simply follow these steps:

  1. Read the Product Disclosure Statement.
  2. Complete the relevant application form.
  3. Complete a Tax File Number Declaration form.
  4. Get your identification documents certified.
  5. Post your documents along with a cheque for your initial investment to Vanguard. Those investing in managed funds under $500,000 can use BPAY®.
  6. Vanguard will then be in touch to open your account.
What documentation do I need to provide for the identification check?

If you are a new investor, you will need to provide certified copies of identification documentation with your application. Certified copies must include the statement:

"I certify this is a true copy of the original document" 

or similar wording and must be signed by an eligible certifier. The certifier must state their qualification or occupation that makes them eligible. Please note that we require the copy that was actually signed by the certifier.
Forms of identification documentation that will be accepted are listed below.
Individuals and joint investors

  • Certified copy of each investor’s current driver’s licence; or
  • Certified copy of the photo page from each investor’s current passport.

Superannuation funds and trusts

  • Certified copy of the trust deed (or extract from the trust deed or other official document) that shows the name of the trust; and
  • If there is a company acting as trustee, a certified copy of a certificate of incorporation (or other official document) that confirms the company’s name, identification number (e.g. ACN) and whether the company is a public or proprietary (private) company; or
  • If there is an individual acting as trustee, a certified copy of the trustee’s current driver’s licence or current passport that confirms the name and date of birth of the first trustee named in the form.

Companies

  • Certified copy of a certificate of incorporation (or other official document) that confirms the company’s name, identification number (e.g. ACN) and whether the company is a public or proprietary (private) company.

Partnerships

  • Certified copy of the partnership agreement (or extract from the partnership agreement) that confirms the full legal name of the partnership; and
  • For one of the partners, a certified copy of their current driver’s licence or current passport that confirms their name and date of birth.

Associations

  • Certified copy of the constitution, articles or rules of the association (or an extract from one of these documents) that confirms the full legal name of the association; and
  • Certified copy of an official certificate or notice that confirms any official identification number issued to the association; and
  • For the secretary (or equivalent) of the association, a certified copy of their current driver’s licence or current passport that confirms their name and date of birth.
Who can certify my identification documents?

A list of eligible certifiers can be downloaded from our Forms & Notices page.

What is AML?

AML refers to the Anti-Money Laundering and Counter-Terrorism Financing Act 2006 (Cth). Under AML, new investors must pass an identification check when opening a managed fund account. Existing investors do not need to provide additional identification unless setting up an account in a different name.

How are unit prices calculated?

The net asset value per unit is determined by dividing the net asset value of a fund by the number of units on issue in the fund at the time of valuation (the valuation point). The net asset value for a fund is the value of assets of that fund, less liabilities of that fund. A valuation point for a fund is generally the close of business on a particular day in relevant markets.

The prices are calculated as follows:
Purchase price = net asset value per unit plus the buy spread
Withdrawal price = net asset value per unit minus the sell spread

What is the buy/sell spread?

The buy/sell spread is the difference between the entry and exit prices of a fund.

It is Vanguard's reasonable estimate of the transaction costs when buying and selling assets. These costs include things like brokerage, custody costs, government taxes and bank charges. The buy/sell spreads are paid to the funds, not Vanguard, to meet these expenses. The purpose of the buy/sell spread is to protect investors in the fund from the costs associated with other investors moving money in and out of the fund.

How are distributions paid?

You can choose to have your distributions re-invested in additional units in the same fund or paid directly to a nominated Australian bank account. If you don't make a choice, income will automatically be reinvested in additional units in the fund. All distributions will normally be paid within 15 business days after the distribution dates. To change your distribution option, please complete a Change of Details form.

When is a BPAY transfer invested?

While your BPAY® transaction may be processed from your bank account immediately, your funds and payment instructions may take some time to be transferred to Vanguard from your financial institution.

We will issue units once we receive your funds at the unit price applicable to the day payment is received. Provided your BPAY® request is made before your financial institution's cut-off time (usually 5 p.m. EST), Vanguard would typically receive your funds before 2 p.m. (EST) on the following business day.

How do I withdraw my money?

You can withdraw all or part of your investment by completing a withdrawal form.

Does Vanguard have a regular savings plan?

You can start a regular investment plan in the Vanguard Retail Managed Funds with as little as $100 by using BPAY®. You select how much and how often you want to invest through BPAY® by contacting your financial institution. By taking advantage of dollar-cost averaging, where you invest a fixed amount in a particular investment at regular intervals, you can help build your investment over time. For example, as markets rise, your money may buy fewer units in your managed fund but when the market is falling your money is buying more units because the price is cheaper.

What are the fees and costs for Vanguard's funds?

Vanguard has no entry fees, no exit fees (other than normal buy/sell spreads), no commissions to advisers and its funds management costs are substantially lower than the industry average at less than 1%.

What information do I receive as an investor?

Throughout the year, you will receive:

  • Transaction confirmations.
  • Quarterly transaction statements.
  • Income distribution statements.
  • Annual tax statements and tax guide.
  • Annual capital gains tax statement after each 30 June, if you have withdrawn, switched or transferred units during the period.
  • Vanguard's most current PDS when issued.

You can access monthly performance for all funds, including specific fund fact sheets/updates, monthly after-tax reporting for all funds, fund profiles, unit price history and income distributions on our website.

Vanguard's Client Services Team can help you with your investment queries and are available between 8 a.m. to 6 p.m., Monday to Friday (Melbourne time) on 1300 655 101 or you can email us.

Why do some funds not pay a distribution every period?

Distributions for a fund vary from period to period and there can be times when no distribution is made. The distribution for a fund is determined by the level of distributable income for the period. If there is insufficient distributable income, there may not be a distribution.

Are your funds available through financial advisers?

Yes. If you invest through a financial adviser, our funds are available through many of the master trusts and wrap accounts. Find a master trust or wrap service.

Some financial advisers invest with Vanguard directly. To find a financial planner in your area, contact the Financial Planning Association on 1800 626 393 or visit fpa.asn.au.