Vanguard Investments

International Equities Manager Profile

PRODUCT

Vanguard International Shares Index Fund

ORGANISATION

Vanguard Investments Australia Ltd is a wholly owned subsidiary of The Vanguard Group, Inc., which is based in the United States and currently manages more than A$1.6 trillion for over 23 million institutional and personal investor accounts as at 30 June 2011.

Vanguard has a global presence with offices in the United States, Australia, Asia and Europe. Vanguard has established a reputation in Australia as an index specialist, managing over A$80 billion as at 30 June 2010. Vanguard offers a range of low-cost index funds, diversified funds and exchange traded funds (ETFs) covering major asset sectors.

INVESTMENT PROCESS

Investment Philosophy

The Manager employs an indexing investment approach whereby a fund is designed to track a chosen index or benchmark – an index fund. This is achieved by seeking to replicate the returns of the index or benchmark, either by holding all of the securities included in the index or benchmark or a representative sample of these securities.

Investment Strategy

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.

PERFORMANCE to 30 June 2011 (before fees)

* Inception: 6 June 1997

ASSESSMENT

The Fund’s performance closely tracks its benchmark. As consistent with the passive nature of the Fund, its management fee is considerably below peer average.