Vanguard Investor Funds Annual Report

Vanguard Investor Funds

Annual report | 30 June 2021

Responsible Entity

Vanguard Investments Australia Ltd. ABN 72 072 881 086 AFSL 227263

Level 13 130 Lonsdale Street Melbourne VIC 3000 Australia

Telephone: (03) 8888 3888 Facsimile: 1300 765 712

vanguard.com.au

Vanguard Investor Funds

Fund ARSN ABN

Asset Sector Investor Funds

Vanguard High Yield Australian Shares Fund 109 638 379 19 060 820 283

Vanguard Index Australian Property Securities Fund 090 995 494 99 571 736 269

Vanguard Index Australian Shares Fund 090 995 770 38 931 692 506

Vanguard Index Diversified Bond Fund 090 995 841 96 491 646 070

Vanguard Index Hedged International Shares Fund 095 375 894 66 256 805 696

Vanguard Index International Shares Fund 090 995 583 42 389 448 403

Vanguard Investor Short Term Fixed Interest Fund 090 995 887 64 380 598 371 (formerly known as Vanguard Investor Cash Plus Fund)

Diversified Investor Funds

Vanguard LifeStrategy® Balanced Fund 103 186 607 31 948 445 348

Vanguard LifeStrategy® Conservative Fund 090 996 044 68 558 424 817

Vanguard LifeStrategy® Growth Fund 090 996 099 73 804 372 624

Vanguard LifeStrategy® High Growth Fund 090 995 967 38 087 357 469

ContentsAbout Vanguard 1

Directors’ report 2

Auditor’s independence declaration 8

Statements of comprehensive income 9

Balance sheets 11

Statements of changes in equity 13

Statements of cash flows 15

Notes to the financial statements 17

Directors’ declaration 47

Independent auditor’s report 48

About Vanguard

Vanguard Investor Funds 1

Since our establishment in 1975, Vanguard has strived to be the world’s highest-value provider of investment products and services. We have an unwavering focus on our clients with a commitment to champion what’s best for investors by offering outstanding service, while keeping costs low.

Over the years Vanguard has built a reputation as a global leader in client advocacy and earned the trust of millions of investors along the way. Our sole purpose has been to align our interest with those of our investors to ensure they have the best chance for investment success.

With over AUD $10.6 trillion in assets under management as of 30 June 2021, including more than AUD $2.6 trillion in ETFs, Vanguard is one of the world’s largest global investment management companies.

In Australia, Vanguard has been serving financial advisers, retail clients and institutional investors for more than 25 years.

Our unique structure — putting investors’ interests firstWhat sets Vanguard apart — and allows Vanguard to put investors first around the world — is the ownership structure of The Vanguard Group, Inc., in the United States.

Rather than being publicly traded or owned by a small group of individuals, the Vanguard Group is owned by Vanguard’s US-domiciled funds and ETFs. Those funds, in turn, are owned by their investors.

This mutual structure aligns our interests with those of our investors and drives the culture, philosophy and policies throughout the Vanguard organisation worldwide. As a result, Australian investors benefit from Vanguard’s stability and experience, low costs and client focus.

Our investment expertiseWhen you invest with Vanguard, you have more than 40 years of investing experience behind you. So no matter which investment products suit your needs, you can feel confident that Vanguard investments are built on a rigorous investment philosophy that stands the test of time.

Low-cost investingWe know we can’t control the markets, but we can control the costs of investing. To that end, providing low-cost investments isn’t a pricing strategy for us. It’s how we do business.

We can keep costs low because of our unique ownership structure in the United States, which allows us to return profits to investors through lower costs.

Directors’ reportThe Responsible Entity of the Vanguard Investor Funds (the “Funds”) for the year ended 30 June 2021 was VanguardInvestments Australia Ltd (the “Responsible Entity”).

The directors of Vanguard Investments Australia Ltd present their report together with the financial statements for the yearended 30 June 2021.

Principal activities

The Funds invest in accordance with the investment policy of the Funds as set out in their respective Product DisclosureStatements (PDSs) and in accordance with the Funds’ Constitution. The Funds predominantly invest in the VanguardWholesale Funds, a group of unlisted unit trusts which are also managed by the Responsible Entity. The LifeStrategy® Fundsand the Vanguard Index Diversified Bond Fund seek to track the weighted average return of the indices of the variousunderlying Vanguard Wholesale Funds in which they invest, before taking into account fees, expenses and tax. The weightsused are the strategic asset allocations to each asset class, for each individual Fund. Each Fund (other than LifeStrategy®Funds and Vanguard Index Diversified Bond Fund) seeks to track the return of the indices of their respective underlyingVanguard Wholesale Funds in which they invest before taking into account fees, expenses and tax. See note 12 for details onthe Funds’ investments in Vanguard Wholesale Funds.

The Funds did not have any employees during the year.

There were no significant changes in the nature of the activities of the Funds during the year.

Directors

The following persons held office as directors of the Responsible Entity during the year and up to the date of this report:

J M Norris (Resigned 21 September 2020)

C Lui (Resigned 31 December 2020)

J Platt

F Kolimago

C McIsaac (Appointed 25 September 2020)

C Cosby (Appointed 21 May 2021)

D Shrimski (Appointed 21 May 2021)

Review and results of operations

The Funds invest in unlisted unit trusts and cash and cash equivalents. The investment policy of the Funds continues to be inaccordance with the provisions of the Funds’ Constitution.

Results

The results of the operations of the Funds were as follows:

VanguardHigh Yield Australian

Shares Fund

Vanguard IndexAustralian Property

Securities Fund

VanguardIndex Australian

Shares Fund

VanguardIndex Diversified

Bond Fund

30 Jun2021

30 Jun2020

30 Jun2021

30 Jun2020

30 Jun2021

30 Jun2020

30 Jun2021

30 Jun2020

Operating profit/(loss) before finance costsattributable to unitholders ($’000) 39,559 (18,348) 34,307 (29,866) 160,955 (47,341) (440) 2,772

Distributions

Distribution paid and payable ($’000) 4,716 6,385 3,593 5,162 24,757 23,238 7,730 927

Distribution (cents per unit) 4.1858 5.6547 2.9413 4.1351 7.9086 7.8033 11.1045 1.3405

Vanguard IndexHedged International

Shares Fund

VanguardIndex International

Shares Fund

Vanguard InvestorShort Term

Fixed Interest Fund

30 Jun2021

30 Jun2020

30 Jun2021

30 Jun2020

30 Jun2021

30 Jun2020

Operating profit/(loss) before finance costsattributable to unitholders ($’000) 54,996 1,432 107,539 16,052 37 195

Distributions

Distribution paid and payable ($’000) 42,269 4,555 30,465 38,379 106 238

Distribution (cents per unit) 22.2758 2.4898 11.7528 16.3010 0.5067 0.9675

2 Vanguard Annual Report

Directors’ report (continued)

Review and results of operations (continued)

Results (continued)

VanguardLifeStrategy®

Balanced Fund


Conservative Fund

VanguardLifeStrategy®Growth Fund


High Growth Fund

30 Jun2021

30 Jun2020

30 Jun2021

30 Jun2020

30 Jun2021

30 Jun2020

30 Jun2021

30 Jun2020

Operating profit/(loss) before finance costsattributable to unitholders ($’000) 22,381 848 4,383 823 47,705 (488) 75,722 (4,289)

Distributions

Distribution paid and payable ($’000) 19,526 6,221 5,216 2,197 33,025 14,172 39,278 15,734

Distribution (cents per unit) 16.7532 5.8136 12.3541 5.0969 20.2679 9.6748 22.9878 10.5154

Performance

The tables below detail the performance of the Funds as represented by the total return, net of fees, which is calculated as theaggregation of the percentage capital growth and percentage distribution of income. The total return is shown for the past fiveyears to 30 June 2021 and assumes that all distributions were re-invested during that period. These are calculated inaccordance with FSC Standard 6.0 Product Performance - calculation and presentation of returns. The directors assess theperformance of the Funds by comparing each Fund’s total return with the corresponding Index (the “Benchmark”) gross offees.

2021 2020 2019 2018 2017% % % % %

Vanguard High Yield Australian Shares Fund

Capital growth 29.31 (17.37) 4.31 (4.71) 7.15

Distribution of income 4.63 4.32 9.17 6.70 9.08

Total return 33.94 (13.05) 13.48 1.99 16.23

Benchmark

FTSE Australia High Dividend Yield Index 34.55 (12.31) 14.40 3.11 17.61

2021 2020 2019 2018 2017% % % % %

Vanguard Index Australian Property Securities Fund

Capital growth 29.80 (24.75) 12.39 9.73 (8.85)


Total return 33.45 (21.25) 18.47 12.28 (6.15)

Benchmark

S&P/ASX 300 A-REIT Index 33.91 (20.71) 19.39 13.20 (5.64)

2021 2020 2019 2018 2017% % % % %

Vanguard Index Australian Shares Fund

Capital growth 23.71 (11.62) 2.77 5.44 3.47


Total return 28.20 (8.12) 10.54 12.47 13.05

Benchmark

S&P/ASX 300 Index 28.49 (7.61) 11.42 13.24 13.82




Performance (continued)

2021 2020 2019 2018 2017% % % % %

Vanguard Index Diversified Bond Fund

Capital growth (9.98) 3.10 7.15 (4.06) (8.14)


Total return (0.64) 4.27 7.44 1.40 (0.38)

Benchmark

Diversified Bond Composite Index - Retail (1) (0.31) 5.20 8.12 2.16 0.33

(1) Diversified Bond Composite Index - Retail comprises of (weight/index): 30% Bloomberg AusBond Composite 0+ Yr Index, 70% Bloomberg Barclays Global Aggregate Float-Adjusted and Scaled Index hedged into Australiandollars

2021 2020 2019 2018 2017% % % % %

Vanguard Index Hedged International Shares Fund

Capital growth 8.10 (2.14) 3.46 1.65 0.23


Total return 35.51 0.72 5.73 10.78 19.75

Benchmark

MSCI World ex-Australia Index (with net dividends reinvested) hedged into AUD 35.75 1.30 6.22 11.48 20.53

2021 2020 2019 2018 2017% % % % %

Vanguard Index International Shares Fund

Capital growth 19.52 (5.42) 1.74 9.30 7.99


Total return 27.35 4.50 11.30 14.67 14.01

Benchmark

MSCI World ex-Australia Index (with net dividends reinvested) in AUD 27.50 5.18 11.95 15.39 14.73

2021 2020 2019 2018 2017% % % % %

Vanguard Investor Short Term Fixed Interest Fund

Capital growth (0.37) (0.05) 0.41 (0.06) 0.05


Total return 0.14 0.92 2.12 1.38 1.75

Benchmark

Bloomberg AusBond Bank Bill Index 0.06 0.85 1.97 1.78 1.82

2021 2020 2019 2018 2017% % % % %

Vanguard LifeStrategy® Balanced Fund

Capital growth 1.89 (2.46) 5.32 2.30 (1.30)


Total return 13.84 1.49 8.32 6.96 5.60

Benchmark

Balanced Composite Index - Retail (2) 14.38 2.90 9.17 7.87 6.40

(2) Balanced Composite Index - Retail comprises of (weight/index): 20% S&P/ASX 300 Index, 14.5% MSCI World ex-Australia Index (with net dividends reinvested) in Australian dollars, 9% MSCI World ex-Australia Index (with netdividends reinvested) hedged into Australian dollars, 3.5% MSCI World ex-Australia Small Cap Index (with net dividends reinvested) in Australian dollars, 3% MSCI Emerging Markets Index (with net dividends reinvested) inAustralian dollars, 15% Bloomberg AusBond Composite 0+ Yr Index, 35% Bloomberg Barclays Global Aggregate Float-Adjusted and Scaled Index hedged into Australian dollars.




Performance (continued)

2021 2020 2019 2018 2017% % % % %

Vanguard LifeStrategy® Conservative Fund

Capital growth (1.83) (1.60) 4.80 2.45 (2.72)


Total return 7.86 2.30 7.38 4.64 3.31

Benchmark

Conservative Composite Index - Retail (3) 8.33 3.56 8.14 5.51 4.03

(3) Conservative Composite Index - Retail comprises of (weight/index): 12% S&P/ASX 300 Index, 8.5% MSCI World ex-Australia Index (with net dividends reinvested) in Australian dollars, 5.5% MSCI World ex-Australia Index (withnet dividends reinvested) hedged into Australian dollars, 2% MSCI World ex-Australia Small Cap Index (with net dividends reinvested) in Australian dollars, 2% MSCI Emerging Markets Index (with net dividends reinvested) inAustralian dollars, 18% Bloomberg AusBond Composite 0+ Yr Index, 42% Bloomberg Barclays Global Aggregate Float-Adjusted and Scaled Index hedged into Australian dollars, 10% Bloomberg AusBond Bank Bill Index.

2021 2020 2019 2018 2017% % % % %

Vanguard LifeStrategy® Growth Fund

Capital growth 6.27 (5.85) 3.48 1.40 1.30


Total return 20.12 0.14 8.62 9.31 8.13

Benchmark

Growth Composite Index - Retail (4) 20.76 1.54 9.53 10.22 8.91

(4) Growth Composite Index - Retail comprises of (weight/index): 28% S&P/ASX 300 Index, 20.5% MSCI World ex-Australia Index (with net dividends reinvested) in Australian dollars, 12.5% MSCI World ex-Australia Index (with netdividends reinvested) hedged into Australian dollars, 5% MSCI World ex-Australia Small Cap Index (with net dividends reinvested) in Australian dollars, 4% MSCI Emerging Markets Index (with net dividends reinvested) in Australiandollars, 9% Bloomberg AusBond Composite 0+ Yr Index, 21% Bloomberg Barclays Global Aggregate Float-Adjusted and Scaled Index hedged into Australian dollars.

2021 2020 2019 2018 2017% % % % %

Vanguard LifeStrategy® High Growth Fund

Capital growth 13.02 (6.81) 4.03 3.11 2.97


Total return 26.72 (1.25) 8.90 11.70 10.72

Benchmark

High Growth Composite Index - Retail (5) 27.45 (0.06) 9.85 12.59 11.50

(5) High Growth Composite Index - Retail comprises of (weight/index): 36% S&P/ASX 300 Index, 26.5% MSCI World ex-Australia Index (with net dividends reinvested) in Australian dollars, 16% MSCI World ex-Australia Index (withnet dividends reinvested) hedged into Australian dollars, 6.5% MSCI World ex-Australia Small Cap Index (with net dividends reinvested) in Australian dollars, 5% MSCI Emerging Markets Index (with net dividends reinvested) inAustralian dollars, 3% Bloomberg AusBond Composite 0+ Yr Index, 7% Bloomberg Barclays Global Aggregate Float-Adjusted and Scaled Index hedged into Australian dollars.

Investors should be aware that past performance is not necessarily an indicator of future performance.

Unit redemption prices

Unit redemption prices (quoted including distribution) are shown as follows:

At 30 June Period high Period low

2021 2020 2021 2020 2021 2020$ $ $ $ $ $

Vanguard High Yield Australian Shares Fund 1.3555 1.0455 1.3655 1.2907 1.0011 0.8199

Vanguard Index Australian Property Securities Fund 1.0966 0.8572 1.1044 1.2040 0.8225 0.6127

Vanguard Index Australian Shares Fund 2.3292 1.8743 2.3479 2.2511 1.8284 1.4353

Vanguard Index Diversified Bond Fund 1.0787 1.1954 1.1966 1.2104 1.0665 1.1370

Vanguard Index Hedged International Shares Fund 1.0702 0.8700 1.0717 0.9766 0.8492 0.6269

Vanguard Index International Shares Fund 1.9428 1.6905 1.9455 1.9166 1.5442 1.4618

Vanguard Investor Short Term Fixed Interest Fund 1.0006 1.0047 1.0031 1.0049 1.0001 1.0000

Vanguard LifeStrategy® Balanced Fund 1.5646 1.4779 1.5646 1.5772 1.4294 1.2973

Vanguard LifeStrategy® Conservative Fund 1.3451 1.3268 1.3513 1.3739 1.2845 1.2131

Vanguard LifeStrategy® Growth Fund 1.7373 1.5839 1.7373 1.7457 1.5081 1.3393

Vanguard LifeStrategy® High Growth Fund 2.1276 1.8189 2.1276 2.0707 1.7395 1.4782



Significant changes in state of affairs

On 19 August 2020, the Directors approved the name change of the Vanguard Investor Cash Plus Fund to Vanguard InvestorShort Term Fixed Interest Fund with the name change effective 1 October 2020.

Jim Norris resigned as a Director of Vanguard Investments Australia Ltd on 21 September 2020.

Chris McIsaac was appointed as a Director of Vanguard Investments Australia Ltd on 25 September 2020.

Cynthia Lui resigned as a Director of Vanguard Investments Australia Ltd on 31 December 2020.

Caroline Cosby was appointed as a Director of Vanguard Investments Australia Ltd on 21 May 2021.

Daniel Shrimski was appointed as a Director of Vanguard Investments Australia Ltd on 21 May 2021.

Since 1 October 2020, Vanguard no longer accept new applications into the Vanguard Investor Funds.

Market disruptions associated with the COVID-19 pandemic have had a global impact, and uncertainty exists as to the long-term implications. Such disruptions can adversely affect assets of the Funds and thus performance of the Funds.

In the opinion of the directors, there were no other significant changes in the state of affairs of the Funds that occurred duringthe financial year.

Matters subsequent to the end of the financial year

No matter or circumstance has arisen since 30 June 2021 that has significantly affected, or may significantly affect:

(i) the operations of the Funds in future financial years; or

(ii) the results of those operations in future financial years; or

(iii) the state of affairs of the Funds in future financial years.

Likely developments and expected results of operations

The Funds will continue to be managed in accordance with the investment objectives and guidelines as set out in thegoverning documents of the Funds and in accordance with the provisions of the Funds’ Constitution.

The results of the Funds’ operations will be affected by a number of factors, including the performance of investment marketsin which the Funds invest. Investment performance is not guaranteed and future returns may differ from past returns. Asinvestment conditions change over time, past returns should not be used to predict future returns.

Indemnity and insurance of officers and auditors

No insurance premiums were paid for out of the assets of the Funds in regards to insurance cover provided to either theofficers of Vanguard Investments Australia Ltd or the auditors of the Funds. So long as the officers of Vanguard InvestmentsAustralia Ltd act in accordance with the Funds’ Constitution and the Law, the officers remain indemnified out of the assets ofthe Funds against losses incurred while acting on behalf of the Funds. The auditors of the Funds are in no way indemnifiedout of the assets of the Funds.

Fees paid to and interests held in the Funds by the Responsible Entity or its associates

Fees paid to the Responsible Entity and its associates out of the Funds’ property during the year are disclosed in note 12 ofthe financial statements.

No fees were paid out of the Funds’ property to the directors of the Responsible Entity during the year.

The number of interests in the Funds held by the Responsible Entity or its associates as at the end of the financial year aredisclosed in note 12 of the financial statements.

Interests in the Funds

The movement in units on issue in the Funds during the year is disclosed in note 7 of the financial statements.

The value of the Funds’ assets and liabilities are disclosed on the balance sheet and derived using the basis set out in note 2of the financial statements.



Environmental regulation

The operations of the Funds are not subject to any particular or significant environmental regulations under eitherCommonwealth, State or Territory law.

Rounding of amounts to the nearest thousand dollars

Amounts in the directors’ report have been rounded to the nearest thousand dollars in accordance with ASIC Corporations(Rounding in Financial/Directors’ Report) Instrument 2016/191, unless otherwise indicated.

Auditor’s independence declaration

A copy of the auditor's independence declaration as required under Section 307C of the Corporations Act 2001 is set out onpage 8.

This report is made in accordance with a resolution of the directors.

F Kolimago

Managing Director

Melbourne

9 September 2021


PricewaterhouseCoopers, ABN 52 780 433 757 2 Riverside Quay, SOUTHBANK VIC 3006, GPO Box 1331, MELBOURNE VIC 3001 T: 61 3 8603 1000, F: 61 3 8603 1999, www.pwc.com.au

Liability limited by a scheme approved under Professional Standards Legislation.

Auditor’s Independence Declaration Vanguard High Yield Australian Shares Fund Vanguard Index Australian Property Securities Fund Vanguard Index Australian Shares Fund Vanguard Index Diversified Bond Fund Vanguard Index Hedged International Shares Fund Vanguard Index International Shares Fund Vanguard Investor Short Term Fixed Interest Fund

(formerly known as Vanguard Investor Cash Plus Fund) Vanguard LifeStrategy® Balanced Fund Vanguard LifeStrategy® Conservative Fund Vanguard LifeStrategy® Growth Fund Vanguard LifeStrategy® High Growth Fund

referred to collectively as Vanguard Investor Funds.

As lead auditor for the audit of Vanguard Investor Funds for the year ended 30 June 2021, I declare that to the best of my knowledge and belief, there have been:

(a) no contraventions of the auditor independence requirements of the Corporations Act 2001 in relation to the audit; and

(b) no contraventions of any applicable code of professional conduct in relation to the audit.

Britt Hawkins Melbourne Partner PricewaterhouseCoopers

9 September 2021

Statements of comprehensive incomeFor the year ended 30 June 2021


Shares Fund


Securities Fund


Shares Fund


Bond Fund

30 Jun2021

30 Jun2020

30 Jun2021

30 Jun2020

30 Jun2021

30 Jun2020

30 Jun2021

30 Jun2020

Notes $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000

Investment income

Interest income - 1 - 1 - 4 - 1

Distribution income 4,831 5,782 7,041 6,882 22,706 19,807 6,706 2,018

Net gains/(losses) on financial instruments at fair valuethrough profit or loss 5 34,904 (23,399) 27,455 (35,885) 139,152 (63,600) (7,004) 1,168

Total net investment income/(loss) 39,735 (17,616) 34,496 (29,002) 161,858 (43,789) (298) 3,187

Expenses

Responsible Entity’s fees 12 171 720 184 853 877 3,499 139 408

Other operating expenses 5 12 5 11 26 53 3 7

Total operating expenses 176 732 189 864 903 3,552 142 415

Profit/(loss) for the year 39,559 (18,348) 34,307 (29,866) 160,955 (47,341) (440) 2,772

Other comprehensive income - - - - - - - -

Total comprehensive income for the year 39,559 (18,348) 34,307 (29,866) 160,955 (47,341) (440) 2,772


Shares Fund


Shares Fund


Fixed Interest Fund

30 Jun2021

30 Jun2020

30 Jun2021

30 Jun2020

30 Jun2021

30 Jun2020

Notes $’000 $’000 $’000 $’000 $’000 $’000

Investment income

Interest income - 1 - 3 - -

Distribution income 38,106 3,180 23,701 22,999 134 332

Net gains/(losses) on financial instruments at fair valuethrough profit or loss 5 17,184 (628) 84,578 (3,981) (67) (39)

Total net investment income/(loss) 55,290 2,553 108,279 19,021 67 293

Expenses

Responsible Entity’s fees 12 287 1,107 722 2,932 29 96

Other operating expenses 7 14 18 37 1 2

Total operating expenses 294 1,121 740 2,969 30 98

Profit/(loss) for the year 54,996 1,432 107,539 16,052 37 195

Other comprehensive income - - - - - -

Total comprehensive income for the year 54,996 1,432 107,539 16,052 37 195

The above statements of comprehensive income should be read in conjunction with the accompanying notes.


Statements of comprehensive income (continued)For the year ended 30 June 2021


Balanced Fund


Conservative Fund



High Growth Fund

30 Jun2021

30 Jun2020

30 Jun2021

30 Jun2020

30 Jun2021

30 Jun2020

30 Jun2021

30 Jun2020

Notes $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000

Investment income

Interest income - 1 - - - 1 - 2

Distribution income 13,721 5,099 4,122 1,595 20,180 8,320 24,396 10,562

Net gains/(losses) on financial instruments at fair valuethrough profit or loss 5 9,023 (3,209) 392 (410) 28,080 (7,228) 52,010 (12,993)

Total net investment income/(loss) 22,744 1,891 4,514 1,185 48,260 1,093 76,406 (2,429)

Expenses

Responsible Entity’s fees 12 356 1,029 129 357 544 1,560 672 1,835

Other operating expenses 7 14 2 5 11 21 12 25

Total operating expenses 363 1,043 131 362 555 1,581 684 1,860

Profit/(loss) for the year 22,381 848 4,383 823 47,705 (488) 75,722 (4,289)


Total comprehensive income for the year 22,381 848 4,383 823 47,705 (488) 75,722 (4,289)

The above statements of comprehensive income should be read in conjunction with the accompanying notes.


Balance sheetsAs at 30 June 2021


Shares Fund


Securities Fund


Shares Fund


Bond Fund

30 Jun2021

30 Jun2020

30 Jun2021

30 Jun2020

30 Jun2021

30 Jun2020

30 Jun2021

30 Jun2020

Notes $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000

Assets

Cash and cash equivalents 9 - 34 17 56 - 254 1,538 3

Receivables 27 9 24 12 146 49 60 6

Accrued income 719 483 4,134 3,288 4,275 1,521 441 867

Due from brokers - receivable for securities sold 377 94 929 1,326 4,013 2,244 206 245

Financial assets at fair value through profit or loss 6 152,009 120,393 127,898 102,035 725,368 573,882 70,586 81,704

Total assets 153,132 121,013 133,002 106,717 733,802 577,950 72,831 82,825

Liabilities

Bank overdraft 9 5 - - - 41 - - -

Distribution payable 8 775 305 2,492 3,517 15,630 9,750 764 798

Payables 111 52 49 71 310 289 83 34

Total liabilities 891 357 2,541 3,588 15,981 10,039 847 832

Net assets attributable to unitholders (equity) 7 152,241 120,656 130,461 103,129 717,821 567,911 71,984 81,993


Shares Fund


Shares Fund


Fixed Interest Fund

30 Jun2021

30 Jun2020

30 Jun2021

30 Jun2020

30 Jun2021

30 Jun2020

Notes $’000 $’000 $’000 $’000 $’000 $’000

Assets

Cash and cash equivalents 9 - 101 347 369 54 5

Receivables 29 16 159 45 1 1

Accrued income 9,158 3,180 12,600 13,631 37 30

Due from brokers - receivable for securities sold 7,567 1,078 6,865 10,149 8 18

Financial assets at fair value through profit or loss 6 189,479 154,896 485,897 373,258 18,966 27,696

Total assets 206,233 159,271 505,868 397,452 19,066 27,750

Liabilities

Bank overdraft 9 17 - - - - -

Distribution payable 8 29,733 4,240 24,689 33,925 47 82

Payables 404 96 317 280 4 9

Total liabilities 30,154 4,336 25,006 34,205 51 91

Net assets attributable to unitholders (equity) 7 176,079 154,935 480,862 363,247 19,015 27,659

The above balance sheets should be read in conjunction with the accompanying notes.


Balance sheets (continued)As at 30 June 2021


Balanced Fund


Conservative Fund



High Growth Fund

30 Jun2021

30 Jun2020

30 Jun2021

30 Jun2020

30 Jun2021

30 Jun2020

30 Jun2021

30 Jun2020

Notes $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000

Assets

Cash and cash equivalents 9 - - 49 40 230 - 235 190

Receivables 22 15 12 7 94 23 189 26

Accrued income 2,471 2,179 552 654 4,695 3,520 7,082 4,508

Due from brokers - receivable for securities sold 2,794 1,082 877 484 3,169 1,640 4,504 1,658

Financial assets at fair value through profit or loss 6 180,099 155,629 54,837 56,387 279,775 229,120 357,362 269,324

Total assets 185,386 158,905 56,327 57,572 287,963 234,303 369,372 275,706

Liabilities

Bank overdraft 9 35 27 - - - 177 - -

Distribution payable 8 12,718 5,261 3,450 1,816 22,434 11,437 28,587 12,526

Payables 208 92 30 31 232 185 526 153

Total liabilities 12,961 5,380 3,480 1,847 22,666 11,799 29,113 12,679

Net assets attributable to unitholders (equity) 7 172,425 153,525 52,847 55,725 265,297 222,504 340,259 263,027

The above balance sheets should be read in conjunction with the accompanying notes.


Statements of changes in equityFor the year ended 30 June 2021


Shares Fund


Securities Fund


Shares Fund


Bond Fund

30 Jun2021

30 Jun2020

30 Jun2021

30 Jun2020

30 Jun2021

30 Jun2020

30 Jun2021

30 Jun2020

Notes $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000

Total equity at the beginning of the financial year 120,656 136,614 103,129 121,164 567,911 584,371 81,993 67,552

Comprehensive income for the year



Total comprehensive income for the year 39,559 (18,348) 34,307 (29,866) 160,955 (47,341) (440) 2,772

Transactions with unitholders

Applications 8,430 21,230 9,158 34,735 55,786 101,567 12,963 32,244

Redemptions (14,306) (18,633) (15,370) (21,540) (56,050) (78,361) (19,963) (19,751)

Units issued upon reinvestment of distributions 2,618 6,178 2,830 3,798 13,976 30,913 5,161 103

Distributions paid and payable 8 (4,716) (6,385) (3,593) (5,162) (24,757) (23,238) (7,730) (927)

Total transactions with unitholders (7,974) 2,390 (6,975) 11,831 (11,045) 30,881 (9,569) 11,669

Total equity at the end of the financial year 152,241 120,656 130,461 103,129 717,821 567,911 71,984 81,993


Shares Fund


Shares Fund


Fixed Interest Fund

30 Jun2021

30 Jun2020

30 Jun2021

30 Jun2020

30 Jun2021

30 Jun2020

Notes $’000 $’000 $’000 $’000 $’000 $’000

Total equity at the beginning of the financial year 154,935 160,055 363,247 362,558 27,659 17,430



Other comprehensive income - - - - - -

Total comprehensive income for the year 54,996 1,432 107,539 16,052 37 195


Applications 13,440 16,267 53,052 79,652 2,709 31,636

Redemptions (17,458) (20,992) (39,960) (76,409) (11,405) (21,560)

Units issued upon reinvestment of distributions 12,435 2,728 27,449 19,773 121 196

Distributions paid and payable 8 (42,269) (4,555) (30,465) (38,379) (106) (238)

Total transactions with unitholders (33,852) (6,552) 10,076 (15,363) (8,681) 10,034

Total equity at the end of the financial year 176,079 154,935 480,862 363,247 19,015 27,659

The above statements of changes in equity should be read in conjunction with the accompanying notes.


Statements of changes in equity (continued)For the year ended 30 June 2021


Balanced Fund


Conservative Fund



High Growth Fund

30 Jun2021

30 Jun2020

30 Jun2021

30 Jun2020

30 Jun2021

30 Jun2020

30 Jun2021

30 Jun2020

Notes $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000

Total equity at the beginning of the financial year 153,525 131,714 55,725 44,361 222,504 214,834 263,027 247,164




Total comprehensive income for the year 22,381 848 4,383 823 47,705 (488) 75,722 (4,289)


Applications 25,340 52,390 7,064 26,488 35,413 47,810 54,956 69,347

Redemptions (18,720) (28,073) (11,733) (14,630) (26,026) (34,557) (33,799) (43,440)

Units issued upon reinvestment of distributions 9,425 2,867 2,624 880 18,726 9,077 19,631 9,979

Distributions paid and payable 8 (19,526) (6,221) (5,216) (2,197) (33,025) (14,172) (39,278) (15,734)

Total transactions with unitholders (3,481) 20,963 (7,261) 10,541 (4,912) 8,158 1,510 20,152

Total equity at the end of the financial year 172,425 153,525 52,847 55,725 265,297 222,504 340,259 263,027

The above statements of changes in equity should be read in conjunction with the accompanying notes.


Statements of cash flowsFor the year ended 30 June 2021


Shares Fund


Securities Fund


Shares Fund


Bond Fund

30 Jun2021

30 Jun2020

30 Jun2021

30 Jun2020

30 Jun2021

30 Jun2020

30 Jun2021

30 Jun2020

Notes $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000

Cash flows from operating activities

Proceeds from sale of financial instruments at fairvalue through profit or loss 11,775 16,071 12,411 13,508 29,370 42,660 21,980 14,256

Purchases of financial instruments at fair valuethrough profit or loss (4,175) (13,915) (4,227) (22,895) (23,521) (51,443) (10,695) (26,264)

Interest received - 1 - 1 - 4 - 1

Other income received 6 2 12 1 46 4 31 -

Responsible Entity’s fees paid (223) (727) (245) (861) (1,148) (3,510) (170) (402)

Operating expenses paid - (15) (5) (11) (26) (53) - (8)

Net cash inflow/(outflow) from operating activities 10(a) 7,383 1,417 7,946 (10,257) 4,721 (12,338) 11,146 (12,417)

Cash flows from financing activities

Proceeds from applications by unitholders 8,407 21,230 9,134 34,735 55,643 101,567 12,909 32,244

Payments for redemptions by unitholders (14,201) (18,734) (15,331) (21,574) (55,758) (78,413) (19,917) (19,751)

Distributions paid from operating activities (1,628) (3,932) (1,788) (2,985) (4,901) (11,054) (2,603) (59)

Net cash inflow/(outflow) from financing activities (7,422) (1,436) (7,985) 10,176 (5,016) 12,100 (9,611) 12,434

Net increase/(decrease) in cash and cashequivalents (39) (19) (39) (81) (295) (238) 1,535 17

Cash and cash equivalents at the beginning of theyear 34 53 56 137 254 492 3 (14)

Cash and cash equivalents at the end of the year 9 (5) 34 17 56 (41) 254 1,538 3

Non-cash financing activities 10(b) 2,618 6,178 2,830 3,798 13,976 30,913 5,161 103


Shares Fund


Shares Fund


Fixed Interest Fund

30 Jun2021

30 Jun2020

30 Jun2021

30 Jun2020

30 Jun2021

30 Jun2020

Notes $’000 $’000 $’000 $’000 $’000 $’000


Proceeds from sale of financial instruments at fairvalue through profit or loss 16,883 15,520 25,628 48,835 11,117 18,830

Purchases of financial instruments at fair valuethrough profit or loss (8,643) (8,629) (25,673) (37,558) (2,317) (28,767)

Interest received - 1 - 3 - -

Other income received 16 2 43 - - -

Responsible Entity’s fees paid (377) (1,108) (956) (2,924) (38) (93)

Operating expenses paid (7) (14) (18) (39) (1) (2)

Net cash inflow/(outflow) from operating activities 10(a) 7,872 5,772 (976) 8,317 8,761 (10,032)


Proceeds from applications by unitholders 13,411 16,267 52,895 79,652 2,709 31,636

Payments for redemptions by unitholders (17,060) (21,076) (39,689) (76,944) (11,401) (21,562)

Distributions paid from operating activities (4,341) (972) (12,252) (11,048) (20) (36)

Net cash inflow/(outflow) from financing activities (7,990) (5,781) 954 (8,340) (8,712) 10,038

Net increase/(decrease) in cash and cashequivalents (118) (9) (22) (23) 49 6

Cash and cash equivalents at the beginning of theyear 101 110 369 392 5 (1)

Cash and cash equivalents at the end of the year 9 (17) 101 347 369 54 5

Non-cash financing activities 10(b) 12,435 2,728 27,449 19,773 121 196

The above statements of cash flows should be read in conjunction with the accompanying notes.


Statements of cash flows (continued)For the year ended 30 June 2021


Balanced Fund


Conservative Fund



High Growth Fund

30 Jun2021

30 Jun2020

30 Jun2021

30 Jun2020

30 Jun2021

30 Jun2020

30 Jun2021

30 Jun2020

Notes $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000


Proceeds from sale of financial instruments at fairvalue through profit or loss 50,332 38,242 26,919 27,694 63,235 46,235 61,326 48,459

Purchases of financial instruments at fair valuethrough profit or loss (54,062) (61,004) (21,146) (38,845) (68,334) (56,311) (78,378) (70,824)

Interest received - 1 - - - 1 - 2

Other income received 8 - 5 - 16 - 15 1

Responsible Entity’s fees paid (433) (1,015) (152) (350) (657) (1,552) (803) (1,822)

Operating expenses paid (7) (16) (2) (8) (11) (21) (12) (25)

Net cash inflow/(outflow) from operating activities 10(a) (4,162) (23,792) 5,624 (11,509) (5,751) (11,648) (17,852) (24,209)


Proceeds from applications by unitholders 25,325 52,390 7,054 26,488 35,326 47,810 54,778 69,347

Payments for redemptions by unitholders (18,527) (28,081) (11,711) (14,630) (25,866) (34,648) (33,295) (43,446)

Distributions paid from operating activities (2,644) (831) (958) (319) (3,302) (1,807) (3,586) (1,702)

Net cash inflow/(outflow) from financing activities 4,154 23,478 (5,615) 11,539 6,158 11,355 17,897 24,199

Net increase/(decrease) in cash and cashequivalents (8) (314) 9 30 407 (293) 45 (10)

Cash and cash equivalents at the beginning of theyear (27) 287 40 10 (177) 116 190 200

Cash and cash equivalents at the end of the year 9 (35) (27) 49 40 230 (177) 235 190

Non-cash financing activities 10(b) 9,425 2,867 2,624 880 18,726 9,077 19,631 9,979

The above statements of cash flows should be read in conjunction with the accompanying notes.


Notes to the financial statementsFor the year ended 30 June 2021

1 General informationThese financial statements cover the Vanguard Investor Funds (the “Funds”) as registered managed investment schemes.The respective constitution dates are as follows:

Vanguard High Yield Australian Shares Fund 21 June 2004

Vanguard Index Australian Property Securities Fund 16 June 1998

Vanguard Index Australian Shares Fund 16 June 1998

Vanguard Index Diversified Bond Fund 10 December 1999

Vanguard Index Hedged International Shares Fund 12 December 2000

Vanguard Index International Shares Fund 16 June 1998


(formerly known as Vanguard Investor Cash Plus Fund) 10 December 1999

Vanguard LifeStrategy® Balanced Fund 16 December 2002

Vanguard LifeStrategy® Conservative Fund 16 June 1998

Vanguard LifeStrategy® Growth Fund 16 June 1998

Vanguard LifeStrategy® High Growth Fund 16 June 1998

The Responsible Entity of the Vanguard Investor Funds is Vanguard Investments Australia Ltd (the “Responsible Entity”). TheResponsible Entity’s registered office is Level 13, 130 Lonsdale Street, Melbourne VIC 3000.

The Funds invest in accordance with the investment policy of the Funds as set out in their respective Product DisclosureStatements (PDSs) and in accordance with the Funds’ Constitution. The Funds predominantly invest in the VanguardWholesale Funds, a group of unlisted unit trusts which are also managed by the Responsible Entity. The LifeStrategy® Fundsand the Vanguard Index Diversified Bond Fund seek to track the weighted average return of the indices of the variousunderlying Vanguard Wholesale Funds in which they invest, before taking into account fees, expenses and tax. The weightsused are the strategic asset allocations to each asset class, for each individual Fund. Each Fund (other than LifeStrategy®Funds and Vanguard Index Diversified Bond Fund) seeks to track the return of the indices of their respective underlyingVanguard Wholesale Funds in which they invest before taking into account fees, expenses and tax. See note 12 for details onthe Funds’ investments in Vanguard Wholesale Funds.

The financial statements were authorised for issue by the directors on 9 September 2021. The directors of the ResponsibleEntity have the power to amend and reissue the financial statements.

2 Summary of significant accounting policiesThe principal accounting policies applied in the preparation of these financial statements are set out below. These policieshave been consistently applied to all periods presented, unless otherwise stated in the following text.

(a) Basis of preparation

These general purpose financial statements have been prepared in accordance with Australian Accounting Standards andInterpretations issued by the Accounting Standards Board and the Corporations Act 2001 in Australia. The Funds are for-profitunit trusts for the purpose of preparing the financial statements.

The financial statements are prepared on the basis of fair value measurement of assets and liabilities except where otherwisestated.

The balance sheet is presented on a liquidity basis. Assets and liabilities are presented in decreasing order of liquidity and donot distinguish between current and non-current. All material balances are expected to be recovered or settled within twelvemonths, except for investments in financial assets at fair value through profit or loss and net assets attributable to unitholders.The amount expected to be recovered or settled within twelve months after the end of each reporting period cannot be reliablydetermined.

The Funds manage financial assets at fair value through profit or loss based on the economic circumstances at any givenpoint in time, as well as to meet any liquidity requirements. As such it is expected that a portion of the portfolio will be realisedwithin 12 months, however, an estimate of that amount cannot be determined as at balance date.

In the case of net assets attributable to unitholders, the units are redeemed on demand at the unitholder’s option. However,holders of these instruments typically retain them for the medium to long term. As such, the amount expected to be settledwithin 12 months cannot be reliably determined.


Notes to the financial statements (continued)For the year ended 30 June 2021

2 Summary of significant accounting policies (continued)

(a) Basis of preparation (continued)

(i) Compliance with International Financial Reporting Standards

The financial statements of the Funds also comply with International Financial Reporting Standards as issued by theInternational Accounting Standards Board.

(ii) New and amended standards adopted by the Funds

There are no standards, interpretations or amendments to existing standards that are effective for the first time for thefinancial year beginning 1 July 2020 that have a material impact on the amounts recognised in the prior periods or will affectthe current or future periods.

(iii) New standards, amendments and interpretations effective after 1 July 2021 and have not been earlyadopted

A number of new standards, amendments to standards and interpretations are effective for annual periods beginning after 1July 2021, and have not been early adopted in preparing these financial statements. None of these are expected to have amaterial effect on the financial statements of the Funds.

(b) Financial instruments

(i) Classification

The Funds classify their investments based on their business model for managing those financial assets and the contractualcash flow characteristics of the financial assets. The Funds’ portfolio of financial assets is managed and performance isevaluated on a fair value basis in accordance with the Funds’ documented investment strategy. The Funds’ policy is for theResponsible Entity to evaluate the information about these financial assets on a fair value basis together with other relatedfinancial information.

Equity securities and derivatives are measured at fair value through profit or loss.

(ii) Recognition/derecognition

The Funds recognise financial assets and financial liabilities on the date they become party to the contractual agreement(trade date) and recognise changes in fair value of the financial assets or financial liabilities from this date.

Investments are derecognised when the right to receive cash flows from the investments has expired or the Funds havetransferred substantially all risks and rewards of ownership.

(iii) Measurement

At initial recognition, the Funds measure financial assets and financial liabilities at fair value. Transaction costs of financialassets carried at fair value through profit and loss are expensed in the statement of comprehensive income.

Subsequent to initial recognition, all financial assets and financial liabilities at fair value through profit or loss are measured atfair value. Gains and losses arising from changes in the fair value of the ‘financial assets or financial liabilities at fair valuethrough profit or loss’ category are presented in the statement of comprehensive income within net gains/(losses) on financialinstruments at fair value through profit or loss in the period in which they arise.

For further details on how the fair value of the financial instruments is determined are disclosed in note 4.

(iv) Offsetting financial instruments

Financial assets and liabilities are offset and the net amount reported in the balance sheet when there is a legally enforceableright to offset the recognised amounts and there is an intention to settle on a net basis, or realise the asset and settle theliability simultaneously.




(c) Net assets attributable to unitholders

Units are redeemable at the unitholders’ option, however, applications and redemptions may be suspended by theResponsible Entity if it is in the best interests of the unitholders.

The units can be put back to the Funds at any time for cash based on the redemption price, which is equal to a proportionateshare of the Funds’ net asset value attributable to the unitholders.

The units are carried at the redemption amount that is payable at balance sheet date if the holder exercises the right to put theunits back to the Funds. This amount represents the expected cash flows on redemption of these units.

Units are classified as equity when they satisfy the following criteria under AASB 132 Financial instruments: Presentation:

the puttable financial instrument entitles the holder to a pro-rata share of net assets in the event of the Fund’s liquidation

the puttable financial instrument is in the class of instruments that is subordinate to all other classes of instruments and

class features are identical

apart from the contractual obligation to redeem the units, the puttable financial instrument does not include any contractual

obligations to deliver cash or another financial asset, or to exchange financial instruments with another entity under

potentially unfavourable conditions to the Fund, and it is not a contract settled in the Fund’s own equity instruments; and

the total expected cash flows attributable to the puttable financial instrument over the life are based substantially on the

profit or loss.

(d) Cash and cash equivalents

For the purpose of presentation in the statement of cash flows, cash and cash equivalents includes cash on hand, depositsheld at call with financial institutions, other short term, highly liquid investments with original maturities of three months or lessfrom the date of acquisition that are readily convertible to known amounts of cash and which are subject to an insignificant riskof changes in value, and bank overdrafts. Bank overdrafts are shown as a liability in the balance sheet.

Payments and receipts relating to the purchase and sale of investment securities are classified as cash flows from operatingactivities, as movements in the fair value of these securities represent the Funds’ main income generating activity.

(e) Investment income

Dividend and distribution income from financial assets at fair value through profit or loss is recognised in the statement ofcomprehensive income within dividend income and distribution income when the Fund’s right to receive payments isestablished.

Other changes in fair value for such instruments are recorded in accordance with the policies described in note 2(b) to thefinancial statements.

(f) Expenses

All expenses, including Responsible Entity’s fees and custodian fees, are recognised in the statement of comprehensiveincome on an accruals basis.

(g) Income tax

Under current legislation, Funds that have elected into the AMIT tax regime are not subject to income tax provided theyattribute the entirety of their taxable income to their unitholders.

The benefits of imputation credits and foreign tax paid are passed on to unitholders.

(h) Distributions

Distributions are payable as set out in the Funds’ Product Disclosure Statement and/or Funds’ Constitution. Such distributionsare recognised as payable when they are determined by the Responsible Entity of the Funds.




(i) Increase/decrease in net assets attributable to unitholders

Income not distributed is included in net assets attributable to unitholders. Where the Funds’ units are classified as liabilities,movements in net assets attributable to unitholders are recognised in the statement of comprehensive income as financecosts.

(j) Functional and presentation currency

Items included in the Funds’ financial statements are measured using the currency of the primary economic environment inwhich it operates (the ‘functional currency’). This is the Australian dollar, which reflects the currency of the economy in whichthe Funds compete for funds and is regulated. The Australian dollar is also the Funds’ presentation currency.

(k) Due from/to brokers

Amounts due from/to brokers represent receivables for securities sold and payables for securities purchased that have beencontracted for but not yet delivered by the end of the year.

These amounts are recognised initially at fair value and subsequently measured at amortised cost. At each reporting date, theFunds shall measure the loss allowance on amounts due from broker at an amount equal to the lifetime expected credit lossesif the credit risk has increased significantly since initial recognition. If, at the reporting date, the credit risk has not increasedsignificantly since initial recognition, the Funds shall measure the loss allowance at an amount equal to 12-month expectedcredit losses. Significant financial difficulties of the broker, probability that the broker will enter bankruptcy or financialreorganisation, and default in payments are all considered indicators that a loss allowance may be required. If the credit riskincreases to the point that it is considered to be credit impaired, interest income will be calculated based on the gross carryingamount adjusted for the loss allowance.

(l) Receivables and accrued income

Receivables may include amounts for trust distributions. Trust distributions are accrued when the right to receive payment isestablished. Amounts are generally received within 30 days of being recorded as receivables.

(m) Payables

Payables include liabilities and accrued expenses owing by the Funds which are unpaid as at the end of the reporting period.

As the Funds have a contractual obligation to distribute their distributable income, a separate distribution payable isrecognised in the balance sheet as at the end of each reporting period where this amount remains unpaid as at the end of thereporting period.

(n) Applications and redemptions

Applications received for units in the Funds are recorded net of any entry fees payable prior to the issue of units in the Funds.Redemptions from the Funds are recorded gross of any exit fees payable after the cancellation of units redeemed.

(o) Goods and Services Tax (GST)

The GST incurred on the costs of various services provided to the Responsible Entity by third parties have been passed ontothe Funds. The Funds qualify for Reduced Input Tax Credit recovery rate of between 55% and 75%, hence ResponsibleEntity’s fees, custodial fees and other expenses have been recognised in the statement of comprehensive income net of theamount of GST recoverable from the Australian Taxation Office (ATO). Accounts payable are inclusive of GST. The netamount of GST recoverable from the ATO is included in receivables in the balance sheet. Cash flows relating to GST areincluded in the statement of cash flows on a gross basis.




(p) Use of estimates

The Funds make estimates and assumptions that affect the reported amounts of assets and liabilities within the next financialyear. Estimates are continually evaluated and based on historical experience and other factors, including expectations offuture events that are believed to be reasonable under the circumstances.

For the majority of the Funds’ financial instruments, quoted market prices are readily available. However, certain financialinstruments, for example, over-the-counter derivatives or unquoted securities, are fair valued using valuation techniques. Where valuation techniques (for example, pricing models) are used to determine fair values, they are validated andperiodically reviewed by experienced personnel of the Responsible Entity, independent of the area that created them.

Models use observable data, to the extent practicable. However, areas such as credit risk (both own and counterparty),volatilities and correlations require management to make estimates. Changes in assumptions about these factors could affectthe reported fair value of financial instruments.

For certain other financial instruments, including amounts due from/to brokers and payables, the carrying amountsapproximate fair value due to the immediate or short-term nature of these financial instruments.

(q) Investment entity exception

The Funds have determined that they are investment entities under the definition in AASB 10, as they meet the followingcriteria:

(a) the Funds have obtained funds from unitholders for the purpose of providing them with investment management services;

(b) the Funds’ business purpose, which is communicated directly to unitholders, is investing solely for returns from capitalappreciation and investment income; and

(c) the performance of investments made by the Funds are measured and evaluated on a fair value basis.

The Funds also meet all of the typical characteristics of an investment entity.

The Funds do not control any of the entities where they have an investment and therefore do not prepare consolidatedfinancial statements. Instead, the Funds’ investments are accounted for at fair value through profit or loss as disclosed in note 2(b).

(r) Rounding of amounts

The Funds are registered schemes of the kind referred to in ASIC Corporations (Rounding in Financial/Directors’ Reports)Instrument 2016/191, relating to the “rounding off” amounts in the financial statements. Amounts in the financial statementshave been rounded off to the nearest thousand dollars, unless otherwise indicated.



3 Financial risk managementThe Funds’ activities expose them to a variety of financial risks: market risk (including price risk, foreign exchange risk andinterest rate risk), credit risk and liquidity risk.

The Funds’ overall risk management program focuses on ensuring compliance with the Funds’ Product Disclosure Statementand seeks to maximise the returns derived for the level of risk to which the Funds are exposed. The Funds use derivativefinancial instruments to moderate and create certain risk exposures. Financial risk management is carried out by theinvestment management department of the Responsible Entity under policies approved by the Board of Directors of theResponsible Entity (the “Board”).

The Funds use different methods to measure different types of risks to which they are exposed. These methods are explainedon the following pages.

Market disruptions associated with the COVID-19 pandemic have had a global impact, and uncertainty exists as to the long-term implications. Such disruptions can adversely affect assets of the Funds and thus performance of the Funds.

(a) Market risk

(i) Price risk

The Funds are exposed to equity securities price risk. This arises from investments held by the Funds for which prices in thefuture are uncertain. Where non-monetary financial instruments are denominated in currencies other than the Australiandollar, the price in the future will also fluctuate because of changes in foreign exchange rates. Paragraph (ii) ‘Foreignexchange risk’ below sets out how this component of price risk is managed and measured.

In any asset sector the returns of individual securities are a combination of the market returns and returns specific to eachsecurity. By diversifying their holdings across the market, index funds are generally well protected from the specific risk ofindividual securities. Vanguard employs an indexing investment strategy in all asset classes in which the Funds invest.

At 30 June, the fair value of equities exposed to price risk were as follows:


Shares Fund


Securities Fund


Shares Fund


Bond Fund

30 Jun2021

30 Jun2020

30 Jun2021

30 Jun2020

30 Jun2021

30 Jun2020

30 Jun2021

30 Jun2020

$’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000

Unlisted unit trusts 152,009 120,393 127,898 102,035 725,368 573,882 70,586 81,704

Net total 152,009 120,393 127,898 102,035 725,368 573,882 70,586 81,704


Shares Fund


Shares Fund


Fixed Interest Fund

30 Jun2021

30 Jun2020

30 Jun2021

30 Jun2020

30 Jun2021

30 Jun2020

$’000 $’000 $’000 $’000 $’000 $’000

Unlisted unit trusts 189,479 154,896 485,897 373,258 18,966 27,696

Net total 189,479 154,896 485,897 373,258 18,966 27,696


Balanced Fund


Conservative Fund



High Growth Fund

30 Jun2021

30 Jun2020

30 Jun2021

30 Jun2020

30 Jun2021

30 Jun2020

30 Jun2021

30 Jun2020

$’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000


Net total 180,099 155,629 54,837 56,387 279,775 229,120 357,362 269,324

The table presented in note 3(b) summarises the impact on operating profit before finance costs attributable to unitholders andliabilities attributable to unitholders from possible changes in market prices that were reasonably based on the risk that theFunds were exposed to at reporting date.



3 Financial risk management (continued)

(a) Market risk (continued)

(ii) Foreign exchange risk

Foreign exchange risk arises as a result of investments in financial instruments denominated in foreign currencies.Fluctuations in the value of Australian dollar and foreign currencies can affect the returns from overseas investments, aslosses or gains must be converted to Australian Dollars.

The Funds have no significant direct exposure to foreign exchange risk. However, the Funds are indirectly exposed to foreignexchange risk via their investment strategy of investing in the Vanguard Wholesale Funds where those Funds may have adirect foreign exchange exposure.

Of the Vanguard Wholesale Funds, the Vanguard International Shares Index Fund, Vanguard Emerging Markets Shares IndexFund and the Vanguard International Small Companies Index Fund do not hedge any of their exposure to foreign currencies.Accordingly, these Funds are affected by currency fluctuations.

The Vanguard International Shares Index Fund (Hedged) and Vanguard Global Aggregate Bond Index Fund (Hedged) investon a fully hedged basis (to Australian dollars), reducing their exposure to currency risk. Foreign currency exposure isaccounted for by marking to market in a manner consistent with the valuation of the underlying securities.

(iii) Cash flow and fair value interest rate risk

Interest rate risk is the risk that the fair value of a financial instrument will fluctuate because of changes in market interestrates.

The Funds have insufficient direct exposure to interest rate risk to be material. The Funds are indirectly exposed to interestrate risk via their investment strategy of investing in the Vanguard Wholesale Funds. All financial liabilities are non-interestbearing.

(b) Summarised sensitivity analysis

The following tables summarise the sensitivity of the Funds’ operating profit and net assets attributable to unitholders to pricerisk. The reasonably possible movements in the risk variables have been determined based on management’s best estimate,having regard to a number of factors, including historical levels of changes in interest rates and foreign exchange rates as wellas the indices that the individual Funds are designed to track. However, actual movements in the risk variables may be greateror less than anticipated due to a number of factors, including unusually large market shocks resulting from changes in theperformance of the economies, markets and securities in which the Funds invest. As a result, historic variations in riskvariables are not a definitive indicator of future variations in the risk variables.

The Funds have revised the assumptions used to determine their sensitivity to price risk compared to the comparative periodas a result of increases in market volatility in the recent period. Price risk movement represents the range of historical indexreturns from the average return based on the minimum suggested investment time frames indicated within the Funds’respective PDS minus one standard deviation to average return plus one standard deviation. The Funds have not made anyother changes to the methods used to determine its sensitivity to the market risk compared to the comparative period.

The Funds have a limited direct exposure to interest rate risk which is considered to be immaterial. The Funds do not havedirect exposure to foreign exchange risk. However, the Funds have an indirect exposure to interest rate risk and foreignexchange rate risk via their investments in Vanguard Wholesale Funds. No sensitivity analysis tables for interest rate risk andforeign exchange risk have been prepared on a look-through basis.

Impact on operating profit/(loss) and net assets attributable to unitholders


Shares Fund


Securities Fund


Shares Fund


Bond Fund


Shares Fund


Shares Fund

Price risk Price risk Price risk Price risk Price risk Price risk$’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000

Low High Low High Low High Low High Low High Low High

-4% +5% -5% +7% -3% +5% -1% +1% -3% +5% -2% +4%

30 Jun 2021 (6,080) 7,600 (6,395) 8,953 (21,761) 36,268 (706) 706 (5,684) 9,474 (9,718) 19,436

-3% +5% -4% +5% -3% +5% 0% +1% -4% +5% -3% +4%

30 Jun 2020 (3,612) 6,020 (4,081) 5,102 (17,216) 28,694 - 817 (6,196) 7,745 (11,198) 14,930




(b) Summarised sensitivity analysis (continued)

Impact on operating profit/(loss) and net assets attributable to unitholders


Fixed Interest Fund


Balanced Fund


Conservative Fund



High Growth Fund

Price risk Price risk Price risk Price risk Price risk$’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000

Low High Low High Low High Low High Low High

0% 0% -1% +3% -1% +2% -2% +4% -3% +5%

30 Jun 2021 - - (1,801) 5,403 (548) 1,097 (5,595) 11,191 (10,721) 17,868

0% 0% -1% +2% 0% +2% -2% +3% -2% +4%

30 Jun 2020 - - (1,556) 3,113 - 1,128 (4,582) 6,874 (5,386) 10,773

(c) Credit risk

Credit risk is the risk that the Funds trading counterparties become insolvent or cannot otherwise meet their obligations of theFunds in full when they fall due.

The Funds have no significant direct exposure to credit risk. However, the Funds are indirectly exposed to credit risk via theirinvestment strategy of investing in the Vanguard Wholesale Funds where those Funds may have a direct credit risk exposure.

The maximum exposure to credit risk at the reporting date is the carrying amount of the financial assets. There were nosignificant concentrations of credit risk to counterparties at 30 June 2021 or 30 June 2020.

(d) Liquidity risk

Liquidity risk is the risk that the Funds may not be able to generate sufficient cash resources to settle its obligations in full asthey fall due or can only do so on terms that are materially disadvantageous.

The Funds’ financial instruments are predominantly investments in the Vanguard Wholesale Funds, a group of unlisted unittrusts which are also managed by the Responsible Entity. The Vanguard Wholesale Funds’ financial instruments includeinvestments in equity investments, fixed interest securities and derivative contracts traded over-the-counter. The VanguardWholesale Funds’ listed securities are considered to be readily realisable as they are all listed on major stock exchanges. TheVanguard Wholesale Funds may use futures to gain market exposure without investing directly in the securities. This allowsthe Vanguard Wholesale Funds to maintain liquidity without being under-invested in their respective investment policies. Thederivatives are not used to leverage the Vanguard Wholesale Funds’ portfolios.

The tables below analyses the Funds’ non-derivative financial liabilities into relevant maturity groupings based on theremaining period at balance sheet date to the contractual maturity date. The amounts in the tables are the contractualundiscounted cash flows.


30 Jun 2021 30 Jun 2020

Less than1 month

1-6months

6-12months

1-2years Total

Less than1 month

1-6months

6-12months

1-2years Total

$’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000

Bank overdraft 5 - - - 5 - - - - -

Distribution payable 775 - - - 775 305 - - - 305

Payables 111 - - - 111 52 - - - 52

Total liabilities 891 - - - 891 357 - - - 357


30 Jun 2021 30 Jun 2020

Less than1 month

1-6months

6-12months

1-2years Total

Less than1 month

1-6months

6-12months

1-2years Total

$’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000

Distribution payable 2,492 - - - 2,492 3,517 - - - 3,517

Payables 49 - - - 49 71 - - - 71

Total liabilities 2,541 - - - 2,541 3,588 - - - 3,588




(d) Liquidity risk (continued)


30 Jun 2021 30 Jun 2020

Less than1 month

1-6months

6-12months

1-2years Total

Less than1 month

1-6months

6-12months

1-2years Total

$’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000

Bank overdraft 41 - - - 41 - - - - -


Payables 310 - - - 310 289 - - - 289



30 Jun 2021 30 Jun 2020

Less than1 month

1-6months

6-12months

1-2years Total

Less than1 month

1-6months

6-12months

1-2years Total

$’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000


Payables 83 - - - 83 34 - - - 34



30 Jun 2021 30 Jun 2020

Less than1 month

1-6months

6-12months

1-2years Total

Less than1 month

1-6months

6-12months

1-2years Total

$’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000

Bank overdraft 17 - - - 17 - - - - -


Payables 404 - - - 404 96 - - - 96



30 Jun 2021 30 Jun 2020

Less than1 month

1-6months

6-12months

1-2years Total

Less than1 month

1-6months

6-12months

1-2years Total

$’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000


Payables 317 - - - 317 280 - - - 280



30 Jun 2021 30 Jun 2020

Less than1 month

1-6months

6-12months

1-2years Total

Less than1 month

1-6months

6-12months

1-2years Total

$’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000


Payables 4 - - - 4 9 - - - 9





(d) Liquidity risk (continued)


30 Jun 2021 30 Jun 2020

Less than1 month

1-6months

6-12months

1-2years Total

Less than1 month

1-6months

6-12months

1-2years Total

$’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000

Bank overdraft 35 - - - 35 27 - - - 27


Payables 208 - - - 208 92 - - - 92



30 Jun 2021 30 Jun 2020

Less than1 month

1-6months

6-12months

1-2years Total

Less than1 month

1-6months

6-12months

1-2years Total

$’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000


Payables 30 - - - 30 31 - - - 31



30 Jun 2021 30 Jun 2020

Less than1 month

1-6months

6-12months

1-2years Total

Less than1 month

1-6months

6-12months

1-2years Total

$’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000

Bank overdraft - - - - - 177 - - - 177


Payables 232 - - - 232 185 - - - 185



30 Jun 2021 30 Jun 2020

Less than1 month

1-6months

6-12months

1-2years Total

Less than1 month

1-6months

6-12months

1-2years Total

$’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000


Payables 526 - - - 526 153 - - - 153




4 Fair value measurementThe Funds measure and recognise the following assets and liabilities at fair value on a recurring basis:

Financial assets / liabilities at fair value through profit or loss (FVPL) (see note 6)

The Funds have no assets or liabilities at fair value on a non-recurring basis in the current reporting period.

AASB 13 requires disclosure of fair value measurements by level of the following fair value hierarchy:

(a) quoted prices (unadjusted) in active markets for identical assets or liabilities (level 1);

(b) inputs other than quoted prices included within level 1 that are observable for the asset or liability, either directly orindirectly (level 2); and

(c) inputs for the asset or liability that are not based on observable market data (unobservable inputs) (level 3).

(i) Fair value in an active market (level 1)

The fair value of financial assets and liabilities traded in active markets is based on their quoted market prices at the end ofthe reporting period without any deduction for estimated future selling costs.

The Funds value their investments in accordance with the accounting policies set out in note 2(b) to the financial statements.For the majority of investments, the Funds rely on information provided by independent pricing services for the valuation ofinvestments.

The quoted market price used for financial assets held by the Funds is the current bid price; the appropriate quoted marketprice for financial liabilities is the current asking price. When the Funds hold derivatives with offsetting market risks, they usemid-market prices as a basis for establishing fair values for the offsetting risk positions and applies this bid or asking price tothe net open position, as appropriate.

A financial instrument is regarded as quoted in an active market if quoted prices are readily and regularly available from anexchange, dealer, broker, industry group, pricing service, or regulatory agency, and those prices represent actual andregularly occurring market transactions on an arm’s length basis.

(ii) Fair value in an inactive or unquoted market (level 2 and level 3)

The fair value of financial assets and liabilities that are not traded in an active market is determined using valuationtechniques. These include the use of recent arm’s length market transactions, reference to the current fair value of asubstantially similar other instrument, discounted cash flow techniques, option pricing models or any other valuation techniquethat provides a reliable estimate of prices obtained in actual market transactions. The carrying amounts of the Funds’ assetsand liabilities at the balance sheet date approximate their fair values.

During the year, the Funds only held investments in unlisted unit trusts, which are recorded at the redemption value per unit asreported by the investment managers of such funds. The output of valuation techniques is always an estimate orapproximation of a value that cannot be determined with certainty, and valuation techniques employed may not fully reflect allfactors relevant to the positions the Funds hold. Valuations are therefore adjusted, where appropriate to allow for additionalfactors including liquidity risk and counterparty risk.

Recognised fair value measurements

The following tables present the Funds’ financial assets and liabilities (by asset class) measured at fair value according to thefair value hierarchy at 30 June 2021 and 30 June 2020.


30 Jun 2021 30 Jun 2020

Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total$’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000

Financial assets at fair value through profit or loss

Unlisted unit trusts - 152,009 - 152,009 - 120,393 - 120,393

Total - 152,009 - 152,009 - 120,393 - 120,393



4 Fair value measurement (continued)Recognised fair value measurements (continued)


30 Jun 2021 30 Jun 2020




Total - 127,898 - 127,898 - 102,035 - 102,035


30 Jun 2021 30 Jun 2020




Total - 725,368 - 725,368 - 573,882 - 573,882


30 Jun 2021 30 Jun 2020




Total - 70,586 - 70,586 - 81,704 - 81,704


30 Jun 2021 30 Jun 2020




Total - 189,479 - 189,479 - 154,896 - 154,896


30 Jun 2021 30 Jun 2020




Total - 485,897 - 485,897 - 373,258 - 373,258


30 Jun 2021 30 Jun 2020




Total - 18,966 - 18,966 - 27,696 - 27,696



4 Fair value measurement (continued)Recognised fair value measurements (continued)


30 Jun 2021 30 Jun 2020




Total - 180,099 - 180,099 - 155,629 - 155,629


30 Jun 2021 30 Jun 2020




Total - 54,837 - 54,837 - 56,387 - 56,387


30 Jun 2021 30 Jun 2020




Total - 279,775 - 279,775 - 229,120 - 229,120


30 Jun 2021 30 Jun 2020




Total - 357,362 - 357,362 - 269,324 - 269,324

The Funds’ policy is to recognise transfers into and transfers out of fair value hierarchy levels as at the end of the reportingperiod.

Transfers between levels

There were no transfers between the levels of the fair value hierarchy for the year ended 30 June 2021 and 30 June 2020.



5 Net gains/(losses) on financial instruments at fair value through profit orlossNet gains/(losses) recognised in relation to financial assets and financial liabilities at fair value through profit or loss:


Shares Fund


Securities Fund


Shares Fund


Bond Fund

30 Jun2021

30 Jun2020

30 Jun2021

30 Jun2020

30 Jun2021

30 Jun2020

30 Jun2021

30 Jun2020

$’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000

Net unrealised gain/(loss) on financial instrumentsat fair value through profit or loss 35,369 (21,831) 31,235 (31,571) 133,986 (70,091) (7,442) 230

Net realised gain/(loss) on financial instruments atfair value through profit or loss (465) (1,568) (3,780) (4,314) 5,166 6,491 438 938

Total net gains/(losses) on financial instrumentsat fair value through profit or loss 34,904 (23,399) 27,455 (35,885) 139,152 (63,600) (7,004) 1,168


Shares Fund


Shares Fund


Fixed Interest Fund

30 Jun2021

30 Jun2020

30 Jun2021

30 Jun2020

30 Jun2021

30 Jun2020

$’000 $’000 $’000 $’000 $’000 $’000

Net unrealised gain/(loss) on financial instrumentsat fair value through profit or loss 15,108 (693) 78,037 (16,544) (53) (25)

Net realised gain/(loss) on financial instruments atfair value through profit or loss 2,076 65 6,541 12,563 (14) (14)

Total net gains/(losses) on financial instrumentsat fair value through profit or loss 17,184 (628) 84,578 (3,981) (67) (39)


Balanced Fund


Conservative Fund



High Growth Fund

30 Jun2021

30 Jun2020

30 Jun2021

30 Jun2020

30 Jun2021

30 Jun2020

30 Jun2021

30 Jun2020

$’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000

Net unrealised gain/(loss) on financial instrumentsat fair value through profit or loss 4,348 (5,351) (852) (1,267) 19,164 (11,576) 42,573 (16,682)

Net realised gain/(loss) on financial instruments atfair value through profit or loss 4,675 2,142 1,244 857 8,916 4,348 9,437 3,689

Total net gains/(losses) on financial instrumentsat fair value through profit or loss 9,023 (3,209) 392 (410) 28,080 (7,228) 52,010 (12,993)



6 Financial assets at fair value through profit or loss


Shares Fund


Securities Fund


Shares Fund


Bond Fund

30 Jun2021

30 Jun2020

30 Jun2021

30 Jun2020

30 Jun2021

30 Jun2020

30 Jun2021

30 Jun2020

Fair value Fair value Fair value Fair value Fair value Fair value Fair value Fair value$’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000

Financial assets at fair value through profit orloss


Total financial assets at fair value through profitor loss 152,009 120,393 127,898 102,035 725,368 573,882 70,586 81,704

Comprising:

Unlisted unit trusts

Units in Australian equity trusts 152,009 120,393 - - 725,368 573,882 - -

Units in Australian property trusts - - 127,898 102,035 - - - -

Units in Australian fixed interest trusts - - - - - - 21,155 24,349

Units in international fixed interest trusts - - - - - - 49,431 57,355

Total unlisted unit trusts 152,009 120,393 127,898 102,035 725,368 573,882 70,586 81,704



Shares Fund


Shares Fund


Fixed Interest Fund

30 Jun2021

30 Jun2020

30 Jun2021

30 Jun2020

30 Jun2021

30 Jun2020

Fair value Fair value Fair value Fair value Fair value Fair value$’000 $’000 $’000 $’000 $’000 $’000


Unlisted unit trusts 189,479 154,896 485,897 373,258 18,966 27,696

Total financial assets at fair value through profitor loss 189,479 154,896 485,897 373,258 18,966 27,696

Comprising:


Units in international equity trusts 189,479 154,896 485,897 373,258 - -

Units in cash trusts - - - - 18,966 27,696

Total unlisted unit trusts 189,479 154,896 485,897 373,258 18,966 27,696

Total financial assets at fair value through profitor loss 189,479 154,896 485,897 373,258 18,966 27,696



6 Financial assets at fair value through profit or loss (continued)


Balanced Fund


Conservative Fund



High Growth Fund

30 Jun2021

30 Jun2020

30 Jun2021

30 Jun2020

30 Jun2021

30 Jun2020

30 Jun2021

30 Jun2020

Fair value Fair value Fair value Fair value Fair value Fair value Fair value Fair value$’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000




Comprising:


Units in Australian equity trusts 36,180 31,481 6,634 6,867 79,035 64,945 129,978 98,352

Units in international equity trusts 53,158 46,544 9,628 10,070 116,231 95,444 191,146 144,216

Units in Australian fixed interest trusts 27,126 23,354 9,888 10,078 25,152 20,694 10,798 7,960

Units in international fixed interest trusts 63,635 54,250 23,122 23,635 59,357 48,037 25,440 18,796

Units in cash trusts - - 5,565 5,737 - - - -

Total unlisted unit trusts 180,099 155,629 54,837 56,387 279,775 229,120 357,362 269,324


An overview of the risk exposures relating to financial assets at fair value through profit or loss is included in note 3.

7 Net assets attributable to unitholdersUnder AASB 132 Financial instruments: Presentation, puttable financial instruments meet the definition of a financial liability tobe classified as equity where certain strict criteria are met. The Funds shall classify a financial instrument as an equityinstrument from the date when the instrument has all the features and meets the conditions. Otherwise the financialinstrument should be disclosed as a liability.

Movement in number of units and net assets attributable to unitholders during the year were as follows:

Vanguard High YieldAustralian Shares Fund

Vanguard Index AustralianProperty Securities Fund

30 Jun2021

30 Jun2020

30 Jun2021

30 Jun2020

30 Jun2021

30 Jun2020

30 Jun2021

30 Jun2020

No. ’000 No. ’000 $’000 $’000 No. ’000 No. ’000 $’000 $’000

Balance as at 1 July 115,693 108,244 120,656 136,614 124,380 109,926 103,129 121,164

Applications 7,054 18,389 8,430 21,230 9,695 32,401 9,158 34,735

Redemptions (12,210) (16,258) (14,306) (18,633) (16,153) (21,404) (15,370) (21,540)

Units issued upon reinvestment of distributions 2,286 5,318 2,618 6,178 3,273 3,457 2,830 3,798

Distributions paid and payable - - (4,716) (6,385) - - (3,593) (5,162)

Profit/(loss) for the year - - 39,559 (18,348) - - 34,307 (29,866)

Closing balance as at 30 June 112,823 115,693 152,241 120,656 121,195 124,380 130,461 103,129



7 Net assets attributable to unitholders (continued)

Vanguard Index AustralianShares Fund

Vanguard Index DiversifiedBond Fund

30 Jun2021

30 Jun2020

30 Jun2021

30 Jun2020

30 Jun2021

30 Jun2020

30 Jun2021

30 Jun2020

No. ’000 No. ’000 $’000 $’000 No. ’000 No. ’000 $’000 $’000


Applications 26,937 52,282 55,786 101,567 11,192 27,388 12,963 32,244

Redemptions (27,436) (39,160) (56,050) (78,361) (17,616) (16,966) (19,963) (19,751)

Units issued upon reinvestment of distributions 7,188 14,786 13,976 30,913 4,609 88 5,161 103

Distributions paid and payable - - (24,757) (23,238) - - (7,730) (927)

Profit/(loss) for the year - - 160,955 (47,341) - - (440) 2,772


Vanguard Index HedgedInternational Shares Fund

Vanguard Index InternationalShares Fund

30 Jun2021

30 Jun2020

30 Jun2021

30 Jun2020

30 Jun2021

30 Jun2020

30 Jun2021

30 Jun2020

No. ’000 No. ’000 $’000 $’000 No. ’000 No. ’000 $’000 $’000


Applications 14,014 19,353 13,440 16,267 31,160 46,382 53,052 79,652

Redemptions (18,239) (24,347) (17,458) (20,992) (23,357) (45,124) (39,960) (76,409)

Units issued upon reinvestment of distributions 13,609 3,128 12,435 2,728 17,544 11,962 27,449 19,773


Profit/(loss) for the year - - 54,996 1,432 - - 107,539 16,052



Fixed Interest FundVanguard LifeStrategy®

Balanced Fund

30 Jun2021

30 Jun2020

30 Jun2021

30 Jun2020

30 Jun2021

30 Jun2020

30 Jun2021

30 Jun2020

No. ’000 No. ’000 $’000 $’000 No. ’000 No. ’000 $’000 $’000


Applications 2,702 31,518 2,709 31,636 16,980 34,966 25,340 52,390

Redemptions (11,384) (21,495) (11,405) (21,560) (12,542) (19,302) (18,720) (28,073)

Units issued upon reinvestment of distributions 121 196 121 196 6,466 1,939 9,425 2,867

Distributions paid and payable - - (106) (238) - - (19,526) (6,221)

Profit/(loss) for the year - - 37 195 - - 22,381 848


Vanguard LifeStrategy®Conservative Fund

Vanguard LifeStrategy®Growth Fund

30 Jun2021

30 Jun2020

30 Jun2021

30 Jun2020

30 Jun2021

30 Jun2020

30 Jun2021

30 Jun2020

No. ’000 No. ’000 $’000 $’000 No. ’000 No. ’000 $’000 $’000


Applications 5,363 19,859 7,064 26,488 21,924 29,573 35,413 47,810

Redemptions (8,895) (11,104) (11,733) (14,630) (16,092) (21,677) (26,026) (34,557)

Units issued upon reinvestment of distributions 2,021 669 2,624 880 12,101 5,616 18,726 9,077


Profit/(loss) for the year - - 4,383 823 - - 47,705 (488)




7 Net assets attributable to unitholders (continued)

Vanguard LifeStrategy®High Growth Fund

30 Jun2021

30 Jun2020

30 Jun2021

30 Jun2020

No. ’000 No. ’000 $’000 $’000

Balance as at 1 July 151,468 132,599 263,027 247,164

Applications 28,528 37,157 54,956 69,347

Redemptions (17,528) (23,576) (33,799) (43,440)

Units issued upon reinvestment of distributions 10,873 5,288 19,631 9,979

Distributions paid and payable - - (39,278) (15,734)

Profit/(loss) for the year - - 75,722 (4,289)

Closing balance as at 30 June 173,341 151,468 340,259 263,027

Each unit represents a right to an individual share in the Funds and does not extend to a right to the underlying assets of theFunds. There are no separate classes of units and each unit has the same rights attaching to it as all other units of the Funds.

Capital risk management

The Funds consider their net assets attributable to unitholders as capital, notwithstanding net assets attributable to unitholdersare classified either as a liability or equity. The amount of net assets attributable to unitholders can change significantly on adaily basis as the Funds are subject to daily applications and redemptions at the discretion of unitholders.

Daily applications and redemptions are reviewed relative to the liquidity of the Funds’ underlying assets on a daily basis by theResponsible Entity. Under the terms of the Funds’ Constitution, the Responsible Entity has the discretion to reject anapplication for units and to defer or adjust a redemption of units if the exercise of such discretion is in the best interests ofunitholders.

8 Distributions to unitholders paid and payableThe distributions during the year were as follows:

Vanguard High YieldAustralian Shares Fund

Vanguard Index AustralianProperty Securities Fund

30 Jun 2021 30 Jun 2020 30 Jun 2021 30 Jun 2020$’000 CPU $’000 CPU $’000 CPU $’000 CPU

Distributions paid

- 30 September 1,135 0.9942 2,403 2.1460 - - - -

- 31 December 959 0.8540 1,682 1.4773 1,101 0.8848 1,645 1.3076

- 31 March 1,847 1.6507 1,995 1.7678 - - - -

Distributions payable

- 30 June 775 0.6869 305 0.2636 2,492 2.0565 3,517 2.8275

4,716 4.1858 6,385 5.6547 3,593 2.9413 5,162 4.1351

Vanguard Index AustralianShares Fund

Vanguard Index DiversifiedBond Fund


Distributions paid

- 30 September - - - - 1,932 2.6680 11 0.0157

- 31 December 9,127 2.9450 13,488 4.6396 1,489 2.1142 50 0.0726

- 31 March - - - - 3,545 5.1894 68 0.0993


- 30 June 15,630 4.9636 9,750 3.1637 764 1.1329 798 1.1529

24,757 7.9086 23,238 7.8033 7,730 11.1045 927 1.3405



8 Distributions to unitholders paid and payable (continued)

Vanguard Index HedgedInternational Shares Fund

Vanguard Index InternationalShares Fund


Distributions paid

- 31 December 12,536 6.8133 315 0.1718 5,776 2.2645 4,454 1.8565


- 30 June 29,733 15.4625 4,240 2.3180 24,689 9.4883 33,925 14.4445

42,269 22.2758 4,555 2.4898 30,465 11.7528 38,379 16.3010


Fixed Interest FundVanguard LifeStrategy®

Balanced Fund


Distributions paid

- 30 September 2 0.0078 74 0.3488 - - - -

- 31 December 15 0.0618 39 0.1890 6,808 6.0046 960 0.9163

- 31 March 42 0.1923 43 0.1313 - - - -


- 30 June 47 0.2448 82 0.2984 12,718 10.7486 5,261 4.8973

106 0.5067 238 0.9675 19,526 16.7532 6,221 5.8136

Vanguard LifeStrategy®Conservative Fund

Vanguard LifeStrategy®Growth Fund


Distributions paid

- 31 December 1,766 4.1111 381 0.9092 10,591 6.7214 2,735 1.9298


- 30 June 3,450 8.2430 1,816 4.1877 22,434 13.5465 11,437 7.7450

5,216 12.3541 2,197 5.0969 33,025 20.2679 14,172 9.6748

Vanguard LifeStrategy®High Growth Fund

30 Jun 2021 30 Jun 2020$’000 CPU $’000 CPU

Distributions paid

- 31 December 10,691 6.4961 3,208 2.2459


- 30 June 28,587 16.4917 12,526 8.2695

39,278 22.9878 15,734 10.5154

9 Cash and cash equivalents


Shares Fund


Securities Fund


Shares Fund


Bond Fund

30 Jun2021

30 Jun2020

30 Jun2021

30 Jun2020

30 Jun2021

30 Jun2020

30 Jun2021

30 Jun2020

$’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000

Domestic cash at bank - 34 17 56 - 254 1,538 3

Bank overdraft (5) - - - (41) - - -

Total cash and cash equivalents (5) 34 17 56 (41) 254 1,538 3



9 Cash and cash equivalents (continued)


Shares Fund


Shares Fund


Fixed Interest Fund

30 Jun2021

30 Jun2020

30 Jun2021

30 Jun2020

30 Jun2021

30 Jun2020

$’000 $’000 $’000 $’000 $’000 $’000

Domestic cash at bank - 101 347 369 54 5

Bank overdraft (17) - - - - -

Total cash and cash equivalents (17) 101 347 369 54 5


Balanced Fund


Conservative Fund



High Growth Fund

30 Jun2021

30 Jun2020

30 Jun2021

30 Jun2020

30 Jun2021

30 Jun2020

30 Jun2021

30 Jun2020

$’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000

Domestic cash at bank - - 49 40 230 - 235 190

Bank overdraft (35) (27) - - - (177) - -

Total cash and cash equivalents (35) (27) 49 40 230 (177) 235 190

10 Reconciliation of profit/(loss) to net cash inflow/(outflow) from operatingactivities


Shares Fund


Securities Fund


Shares Fund


Bond Fund

30 Jun2021

30 Jun2020

30 Jun2021

30 Jun2020

30 Jun2021

30 Jun2020

30 Jun2021

30 Jun2020

$’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000

(a) Reconciliation of profit/(loss) to net cashinflow/(outflow) from operating activities


Proceeds from sale of financial instruments at fair valuethrough profit or loss 11,775 16,071 12,411 13,508 29,370 42,660 21,980 14,256

Purchases of financial instruments at fair value through profitor loss (4,175) (13,915) (4,227) (22,895) (23,521) (51,443) (10,695) (26,264)

Net (gains)/losses on financial instruments at fair valuethrough profit or loss (34,904) 23,399 (27,455) 35,885 (139,152) 63,600 7,004 (1,168)

Net change in receivables (231) 1,257 (834) 732 (2,708) 4,323 426 (512)

Net change in payables (46) (10) (61) (8) (271) (11) 3 6

Non-cash items (4,595) (7,037) (6,195) (7,613) (19,952) (24,126) (7,132) (1,507)

Net cash inflow/(outflow) from operating activities 7,383 1,417 7,946 (10,257) 4,721 (12,338) 11,146 (12,417)

(b) Non-cash financing activities

During the year, the following distribution payments weresatisfied by the issue of units under the distributionreinvestment plan 2,618 6,178 2,830 3,798 13,976 30,913 5,161 103



10 Reconciliation of profit/(loss) to net cash inflow/(outflow) from operatingactivities (continued)


Shares Fund


Shares Fund


Fixed Interest Fund

30 Jun2021

30 Jun2020

30 Jun2021

30 Jun2020

30 Jun2021

30 Jun2020

$’000 $’000 $’000 $’000 $’000 $’000



Proceeds from sale of financial instruments at fair valuethrough profit or loss 16,883 15,520 25,628 48,835 11,117 18,830

Purchases of financial instruments at fair value through profitor loss (8,643) (8,629) (25,673) (37,558) (2,317) (28,767)

Net (gains)/losses on financial instruments at fair valuethrough profit or loss (17,184) 628 (84,578) 3,981 67 39

Net change in receivables (5,962) (2,297) 1,074 (4,890) (7) 10

Net change in payables (90) (1) (234) 8 (9) 3

Non-cash items (32,128) (881) (24,732) (18,111) (127) (342)

Net cash inflow/(outflow) from operating activities 7,872 5,772 (976) 8,317 8,761 (10,032)


During the year, the following distribution payments weresatisfied by the issue of units under the distributionreinvestment plan 12,435 2,728 27,449 19,773 121 196


Balanced Fund


Conservative Fund



High Growth Fund

30 Jun2021

30 Jun2020

30 Jun2021

30 Jun2020

30 Jun2021

30 Jun2020

30 Jun2021

30 Jun2020

$’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000



Proceeds from sale of financial instruments at fair valuethrough profit or loss 50,332 38,242 26,919 27,694 63,235 46,235 61,326 48,459

Purchases of financial instruments at fair value through profitor loss (54,062) (61,004) (21,146) (38,845) (68,334) (56,311) (78,378) (70,824)

Net (gains)/losses on financial instruments at fair valuethrough profit or loss (9,023) 3,209 (392) 410 (28,080) 7,228 (52,010) 12,993

Net change in receivables (284) (857) 107 (310) (1,159) (913) (2,559) (1,035)

Net change in payables (77) 14 (23) 7 (113) 8 (131) 13

Non-cash items (13,429) (4,244) (4,224) (1,288) (19,005) (7,407) (21,822) (9,526)

Net cash inflow/(outflow) from operating activities (4,162) (23,792) 5,624 (11,509) (5,751) (11,648) (17,852) (24,209)


During the year, the following distribution payments weresatisfied by the issue of units under the distributionreinvestment plan 9,425 2,867 2,624 880 18,726 9,077 19,631 9,979



11 Remuneration of auditorsThe auditor's remuneration is borne by the Responsible Entity. During the year, the following fees were paid or payable forservices provided by the auditor of the Funds.


Shares Fund


Securities Fund


Shares Fund


Bond Fund

30 Jun2021

30 Jun2020

30 Jun2021

30 Jun2020

30 Jun2021

30 Jun2020

30 Jun2021

30 Jun2020

$ $ $ $ $ $ $ $

Auditors of the Funds - PwC

Audit and review of financial statements 13,765 11,500 13,765 11,500 13,765 11,500 13,765 11,500

Other assurance services

Audit of compliance plan 1,933 1,968 1,933 1,968 1,933 1,968 1,933 1,968

Other non-audit services

Tax compliance services 5,905 5,375 5,905 5,375 5,905 5,375 5,905 5,375

Total services provided by PwC 21,603 18,843 21,603 18,843 21,603 18,843 21,603 18,843


Shares Fund


Shares Fund


Fixed Interest Fund

30 Jun2021

30 Jun2020

30 Jun2021

30 Jun2020

30 Jun2021

30 Jun2020

$ $ $ $ $ $


Audit and review of financial statements 13,765 11,500 13,765 11,500 13,765 11,500


Audit of compliance plan 1,933 1,968 1,933 1,968 1,933 1,968


Tax compliance services 5,905 5,375 5,905 5,375 5,905 5,375

Total services provided by PwC 21,603 18,843 21,603 18,843 21,603 18,843


Balanced Fund


Conservative Fund



High Growth Fund

30 Jun2021

30 Jun2020

30 Jun2021

30 Jun2020

30 Jun2021

30 Jun2020

30 Jun2021

30 Jun2020

$ $ $ $ $ $ $ $


Audit and review of financial statements 13,765 11,500 13,765 11,500 13,765 11,500 13,765 11,500


Audit of compliance plan 1,933 1,968 1,933 1,968 1,933 1,968 1,933 1,968


Tax compliance services 5,905 5,375 5,905 5,375 5,905 5,375 5,905 5,375

Total services provided by PwC 21,603 18,843 21,603 18,843 21,603 18,843 21,603 18,843



12 Related party transactions

Responsible Entity

The Responsible Entity of the Vanguard Investor Funds is Vanguard Investments Australia Ltd (ABN 72 072 881 086 AFSL227263), which is a wholly owned subsidiary of The Vanguard Group, Inc.

Key management personnel

Key management personnel includes persons who were directors of Responsible Entity at any time during the financial yearas follows:

J M Norris (Resigned 21 September 2020)

C Lui (Resigned 31 December 2020)

J Platt

F Kolimago

C McIsaac (Appointed 25 September 2020)

C Cosby (Appointed 21 May 2021)

D Shrimski (Appointed 21 May 2021)

No other person had authority and responsibility for planning, directing and controlling the activities of the Funds, directly orindirectly during the financial year.

Transactions with key management personnel

Key management personnel services are provided by Vanguard Investments Australia Ltd and included in the managementfees. There is no separate charge for these services. There was no compensation paid directly by the Funds to any of the keymanagement personnel.

Key management personnel unitholdings

The key management personnel of Vanguard Investments Australia Ltd (VIA) held units in the Funds as follows:


30 Jun 2021

Number ofunits held

opening

Number ofunits held

closingFair value ofinvestments

Interestheld at

year end

Numberof units

acquired

Numberof units

disposed

Distributionspaid/payableby the Fund

Unitholder Units Units $ % Units Units $

C Lui and related parties* 60,536 63,713 105,585 0.07 3,177 - 8,971

*The balance is reflective up until the 31st December 2020, the resignation date of Cynthia Lui.


30 Jun 2020

Number ofunits held

opening

Number ofunits held

closingFair value ofinvestments

Interestheld at

year end

Numberof units

acquired

Numberof units

disposed

Distributionspaid/payableby the Fund

Unitholder Units Units $ % Units Units $

C Lui and related parties 57,577 60,536 95,883 0.04 2,959 - 4,689

Key management personnel remuneration

Key management personnel are paid by the Responsible Entity. Payments made from the Funds do not include any amountsdirectly attributable to key management personnel remuneration.

Key management personnel loan disclosures

The Funds have not made, guaranteed or secured, directly or indirectly, any loans to the key management personnel or theirpersonally related entities at any time during the reporting period.



12 Related party transactions (continued)

Responsible Entity’s fees and other transactions

During the year ended 30 June 2021, the Responsible Entity received an all-inclusive management fee (inclusive of GST, netof RITC available to the Funds) over the Funds’ average net assets attributable to unitholders for the year as follows:

Management costsManagement cost deducted

directly from the FundManagement cost deducted from

underlying Funds

2021 2020 2021 2020 2021 2020% per annum % per annum % per annum % per annum % per annum % per annum

Vanguard High Yield Australian Shares Fund 0.35 0.90 - 0.52 0.35 0.38

Vanguard Index Australian Property Securities Fund 0.23 0.90 - 0.67 0.23 0.23

Vanguard Index Australian Shares Fund 0.16 0.75 - 0.57 0.16 0.18

Vanguard Index Diversified Bond Fund 0.29 0.75 0.05 0.51 0.24 0.24

Vanguard Index Hedged International Shares Fund 0.21 0.90 - 0.69 0.21 0.21

Vanguard Index International Shares Fund 0.18 0.90 - 0.72 0.18 0.18

Vanguard Investor Short Term Fixed Interest Fund 0.19 0.70 - 0.41 0.19 0.29

Vanguard LifeStrategy® Balanced Fund 0.29 0.90 0.06 0.67 0.23 0.23

Vanguard LifeStrategy® Conservative Fund 0.29 0.90 0.06 0.66 0.23 0.24

Vanguard LifeStrategy® Growth Fund 0.29 0.90 0.07 0.67 0.22 0.23

Vanguard LifeStrategy® High Growth Fund 0.29 0.90 0.08 0.68 0.21 0.22

All related party transactions are conducted on normal commercial terms and conditions. The transactions during the year andamounts payable at year end between the Funds and the Responsible Entity are as follows:


Shares Fund


Securities Fund


Shares Fund


Bond Fund

30 Jun2021

30 Jun2020

30 Jun2021

30 Jun2020

30 Jun2021

30 Jun2020

30 Jun2021

30 Jun2020

$ $ $ $ $ $ $ $

Responsible Entity’s fees for the year 171,046 719,906 184,442 852,891 877,300 3,499,493 139,148 408,325

Fees earned by the Responsible Entity in respect ofinvestments by the Funds in other schemes managedby the Responsible Entity* 470,351 460,094 273,588 292,848 1,033,864 952,046 193,719 192,399

Total fees payable to the Responsible Entity at year end - 51,788 - 60,859 - 271,000 3,257 34,331


Shares Fund


Shares Fund


Fixed Interest Fund

30 Jun2021

30 Jun2020

30 Jun2021

30 Jun2020

30 Jun2021

30 Jun2020

$ $ $ $ $ $

Responsible Entity’s fees for the year 286,533 1,106,600 722,113 2,931,823 28,573 95,509

Fees earned by the Responsible Entity in respect ofinvestments by the Funds in other schemes managedby the Responsible Entity* 382,566 336,946 785,977 733,047 52,966 67,526

Total fees payable to the Responsible Entity at year end - 90,224 26 234,403 7 9,431

*Where monies are invested into other Funds managed by the Responsible Entity, the Responsible Entity fee is calculated taking into account the fees charged in the underlying Funds.




Responsible Entity’s fees and other transactions (continued)


Balanced Fund


Conservative Fund



High Growth Fund

30 Jun2021

30 Jun2020

30 Jun2021

30 Jun2020

30 Jun2021

30 Jun2020

30 Jun2021

30 Jun2020

$ $ $ $ $ $ $ $

Responsible Entity’s fees for the year 355,760 1,029,170 129,021 357,313 544,309 1,560,299 672,205 1,834,814

Fees earned by the Responsible Entity in respect ofinvestments by the Funds in other schemes managedby the Responsible Entity* 391,912 348,196 125,598 128,499 575,714 511,135 690,018 581,582

Total fees payable to the Responsible Entity at year end 9,394 87,045 8,271 31,054 16,004 128,536 22,047 153,263

*Where monies are invested into other Funds managed by the Responsible Entity, the Responsible Entity fee is calculated taking into account the fees charged in the underlying Funds.

Related party unitholdings

Vanguard Investments Australia Ltd did not hold any units in the Funds during the year.

Parties related to the Funds including the Responsible Entity, its affiliates or other schemes managed by the ResponsibleEntity did not hold any units in the Funds during the year.

Investments

The Funds held investments in the following schemes which were also managed by the Responsible Entity or its relatedparties:


30 Jun 2021Fair value of

investmentInterest

held

Distributionreceived/

receivable

Numberof units

acquired

Numberof units

disposed

Distributionreceivable

unpaid$ % $ Units Units $

Vanguard Australian Shares High Yield Fund 152,008,773 13.49 4,830,613 6,008,105 8,239,424 718,685

152,008,773 4,830,613 6,008,105 8,239,424 718,685



investmentInterest

held


receivable

Numberof units

acquired

Numberof units

disposed



Vanguard Australian Shares High Yield Fund 120,392,840 13.50 5,781,994 14,717,575 10,493,450 482,800

120,392,840 5,781,994 14,717,575 10,493,450 482,800



investmentInterest

held


receivable

Numberof units

acquired

Numberof units

disposed



Vanguard Australian Property Securities Index Fund 127,898,083 3.05 7,041,267 11,970,706 13,080,362 4,133,587

127,898,083 7,041,267 11,970,706 13,080,362 4,133,587



investmentInterest

held


receivable

Numberof units

acquired

Numberof units

disposed



Vanguard Australian Property Securities Index Fund 102,035,352 3.24 6,881,624 29,508,753 13,556,245 3,288,386

102,035,352 6,881,624 29,508,753 13,556,245 3,288,386




Investments (continued)



investmentInterest

held


receivable

Numberof units

acquired

Numberof units

disposed



Vanguard Australian Shares Index Fund 725,367,572 4.42 22,706,120 18,726,512 13,369,953 4,274,533

725,367,572 22,706,120 18,726,512 13,369,953 4,274,533



investmentInterest

held


receivable

Numberof units

acquired

Numberof units

disposed



Vanguard Australian Shares Index Fund 573,882,449 4.55 19,807,139 34,541,189 16,324,419 1,521,430

573,882,449 19,807,139 34,541,189 16,324,419 1,521,430



investmentInterest

held


receivable

Numberof units

acquired

Numberof units

disposed



Vanguard Australian Fixed Interest Index Fund 21,155,563 0.27 624,253 5,280,636 7,304,495 163,404

Vanguard Global Aggregate Bond Index Fund (Hedged) 49,431,009 0.74 6,081,999 11,170,052 13,029,564 277,178

70,586,572 6,706,252 16,450,688 20,334,059 440,582



investmentInterest

held


receivable

Numberof units

acquired

Numberof units

disposed





81,704,127 2,018,113 24,714,641 12,946,831 866,713



investmentInterest

held


receivable

Numberof units

acquired

Numberof units

disposed



Vanguard International Shares Index Fund (Hedged) - AUD Class 189,478,775 2.78 38,106,309 44,949,841 24,660,420 9,157,544

189,478,775 38,106,309 44,949,841 24,660,420 9,157,544



investmentInterest

held


receivable

Numberof units

acquired

Numberof units

disposed




154,895,715 3,180,488 11,477,537 18,245,690 3,180,488



investmentInterest

held


receivable

Numberof units

acquired

Numberof units

disposed



Vanguard International Shares Index Fund 485,896,689 2.48 23,701,400 20,720,466 8,595,934 12,599,924

485,896,689 23,701,400 20,720,466 8,595,934 12,599,924







investmentInterest

held


receivable

Numberof units

acquired

Numberof units

disposed




373,258,453 22,998,720 23,169,116 20,773,921 13,631,210



investmentInterest

held


receivable

Numberof units

acquired

Numberof units

disposed



Vanguard Short Term Fixed Interest Fund(formerly known as Vanguard Cash Plus Fund) 18,965,890 3.27 134,301 2,394,545 10,891,143 37,066

18,965,890 134,301 2,394,545 10,891,143 37,066



investmentInterest

held


receivable

Numberof units

acquired

Numberof units

disposed



Vanguard Cash Plus Fund 27,696,037 2.35 332,380 28,509,361 18,455,451 30,316

27,696,037 332,380 28,509,361 18,455,451 30,316



investmentInterest

held


receivable

Numberof units

acquired

Numberof units

disposed




Vanguard International Small Companies Index Fund 6,230,054 0.44 478,029 474,354 989,364 198,523

Vanguard Australian Shares Index Fund 36,179,784 0.22 1,203,242 3,796,204 4,882,699 213,205

Vanguard International Shares Index Fund 25,823,101 0.13 1,309,996 5,613,316 6,009,108 669,626

Vanguard Emerging Markets Shares Index Fund 5,478,716 0.33 149,218 328,843 463,419 67,743

Vanguard International Shares Index Fund (Hedged) - AUD Class 15,625,749 0.23 3,231,528 6,616,950 6,496,321 755,195


180,098,730 13,721,187 52,200,053 34,466,305 2,470,639



investmentInterest

held


receivable

Numberof units

acquired

Numberof units

disposed




Vanguard International Small Companies Index Fund 5,570,811 0.54 302,241 1,412,394 439,863 96,694


Vanguard International Shares Index Fund 22,215,952 0.15 1,318,003 4,255,267 2,787,616 811,315


Vanguard International Shares Index Fund (Hedged) - AUD Class 14,094,566 0.27 289,405 5,467,019 2,868,430 289,405


155,628,921 5,099,164 47,378,393 29,567,562 2,179,006







investmentInterest

held


receivable

Numberof units

acquired

Numberof units

disposed



Vanguard Short Term Fixed Interest Fund(formerly known as Vanguard Cash Plus Fund) - - 6,214 365,764 5,991,740 -



Vanguard Australian Shares Index Fund 6,633,769 0.04 237,033 989,610 1,707,643 39,092

Vanguard International Shares Index Fund 4,585,469 0.02 243,188 858,145 1,240,889 118,907




Vanguard Cash Reserve Fund 5,565,495 0.35 - 6,391,877 840,261 -

54,837,039 4,122,460 22,080,482 21,959,916 551,487



investmentInterest

held


receivable

Numberof units

acquired

Numberof units

disposed



Vanguard Cash Plus Fund 5,737,370 0.49 76,364 2,403,896 1,044,214 6,280



Vanguard Australian Shares Index Fund 6,866,945 0.05 234,013 4,291,731 3,233,228 18,205

Vanguard International Shares Index Fund 4,659,602 0.03 281,570 2,240,493 1,836,794 170,166



Vanguard Global Aggregate Bond Index Fund (Hedged) 23,635,327 0.47 513,504 12,387,708 8,518,455 221,102

56,387,352 1,594,655 30,273,144 20,808,610 654,498



investmentInterest

held


receivable

Numberof units

acquired

Numberof units

disposed




Vanguard International Small Companies Index Fund 13,768,977 0.96 1,039,569 1,414,777 2,034,192 438,753






279,774,596 20,179,651 65,173,953 41,823,943 4,695,162







investmentInterest

held


receivable

Numberof units

acquired

Numberof units

disposed










229,119,781 8,319,788 46,023,097 35,767,059 3,519,620



investmentInterest

held


receivable

Numberof units

acquired

Numberof units

disposed




Vanguard International Small Companies Index Fund 22,780,031 1.59 1,696,288 1,995,216 1,982,410 725,894



Vanguard Emerging Markets Shares Index Fund 18,155,925 1.08 469,705 1,754,519 1,153,475 224,494



357,362,137 24,395,671 64,894,642 37,512,617 7,081,955



investmentInterest

held


receivable

Numberof units

acquired

Numberof units

disposed







Vanguard Emerging Markets Shares Index Fund 13,354,203 1.16 689,356 1,321,267 388,205 211,806


Vanguard Global Aggregate Bond Index Fund (Hedged) 18,795,970 0.37 408,934 12,593,733 12,056,763 175,831

269,323,557 10,562,412 54,521,088 37,119,852 4,507,628

Interest held represents the entity’s year end percentage interest in the Wholesale class of the investee funds.

A Fund’s maximum exposure to loss from its interest in investee funds is equal to the total fair value of its investments in theinvestee funds as there is no off-balance sheet exposure relating to any of the investee funds. Once the Fund has disposed ofits shares in an investee fund, it ceases to be exposed to any risk from that investee fund.

The proportion of ownership interest is equal to the proportion of the voting power held.

The Funds did not hold any investments in Vanguard Investments Australia Ltd during the year.

Other transactions within the Funds

Apart from those details disclosed in this note, no directors have entered into a material contract with the Funds during thefinancial year and there were no material contracts involving directors’ interests subsisting at year end.



13 Events occurring after the reporting periodThere are no significant events that have occurred since balance date which would impact on the financial position of theFunds as disclosed in the balance sheet as at 30 June 2021 or on the results and cash flows of the Funds for the year endedon that date.

14 Contingent assets, contingent liabilities and commitmentsThere are no outstanding contingent assets, liabilities or commitments as at 30 June 2021 (30 June 2020: Nil).


Directors’ declarationIn the opinion of the directors of the Responsible Entity:

(a) the financial statements and notes set out on pages 9 to 46 are in accordance with the Corporations Act 2001, including:

(i) complying with Accounting Standards, the Corporations Regulations 2001 and other mandatory professional reportingrequirements; and

(ii) giving a true and fair view of the Funds’ financial position as at 30 June 2021 and of their performance, asrepresented by the results of their operations for the financial year ended on that date.

(b) there are reasonable grounds to believe that the Funds will be able to pay their debts as and when they become due andpayable.

(c) Note 2(a) confirms that the financial statements comply with International Financial Reporting Standards as issued by theInternational Accounting Standards Board.

This declaration is made in accordance with a resolution of the directors.

F Kolimago

Managing Director

Melbourne

9 September 2021


PricewaterhouseCoopers, ABN 52 780 433 757 2 Riverside Quay, SOUTHBANK VIC 3006, GPO Box 1331, MELBOURNE VIC 3001 T: 61 3 8603 1000, F: 61 3 8603 1999, www.pwc.com.au

Liability limited by a scheme approved under Professional Standards Legislation.

Independent auditor’s report To the unitholders of:

Vanguard High Yield Australian Shares Fund Vanguard Index Australian Property Securities Fund Vanguard Index Australian Shares Fund Vanguard Index Diversified Bond Fund Vanguard Index Hedged International Shares Fund Vanguard Index International Shares Fund Vanguard Investor Short Term Fixed Interest Fund

(formerly known as Vanguard Investor Cash Plus Fund) Vanguard LifeStrategy® Balanced Fund Vanguard LifeStrategy® Conservative Fund Vanguard LifeStrategy® Growth Fund Vanguard LifeStrategy® High Growth Fund

referred to collectively as Vanguard Investor Funds.

Report on the audit of the financial report

Our opinion

In our opinion:

The accompanying financial report of Vanguard Investor Funds (the Funds) is in accordance with the Corporations Act 2001, including:

(a) giving a true and fair view of the Funds’ financial positions as at 30 June 2021 and of their financial performance for the year then ended

(b) complying with Australian Accounting Standards and the Corporations Regulations 2001.

What we have audited The financial report comprises:

the balance sheets as at 30 June 2021

the statements of comprehensive income for the year then ended

the statements of changes in equity for the year then ended

the statements of cash flows for the year then ended

the notes to the financial statements, which include significant accounting policies and other explanatory information

the directors’ declaration.

Basis for opinion

We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial report section of our report.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Independence We are independent of the Funds in accordance with the auditor independence requirements of the Corporations Act 2001 and the ethical requirements of the Accounting Professional & Ethical Standards Board’s APES 110 Code of Ethics for Professional Accountants (including Independence Standards) (the Code) that are relevant to our audit of the financial report in Australia. We have also fulfilled our other ethical responsibilities in accordance with the Code.

Our audit approach

An audit is designed to provide reasonable assurance about whether the financial report is free from material misstatement. Misstatements may arise due to fraud or error. They are considered material if individually or in aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of the financial report.

We tailored the scope of our audit in order to perform sufficient work to enable us to provide an opinion on the financial report as a whole, taking into account the structure of the Funds, the accounting processes and controls and the industry in which the Funds operate.

Materiality

For the purpose of our audit, we used approximately 1% of each Fund's net assets to set our overall materiality for each Fund.

We applied this threshold, together with qualitative considerations, to determine the scope of our audit and the nature, timing and extent of our audit procedures and to evaluate the effect of misstatements on the financial report as a whole.

We chose net assets because, in our view, it is the metric against which the performance of the Funds are most commonly measured and is a generally accepted benchmark in the fund industry.

We utilised 1% as the threshold based on our professional judgement, noting it is within the range of commonly acceptable thresholds.

Audit Scope

Our audit focused on where the Funds made subjective judgements; for example, significant accounting estimates involving assumptions and inherently uncertain future events.

Our audit approach reflects the nature of the investments held by the Funds and the consideration of the work undertaken by third-party service providers.

Key audit matters

Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of the financial report for the current period. The key audit matters were addressed in the context of our audit of the financial report as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters. Further, any commentary on the outcomes of a particular audit procedure is made in that context. We communicated the key audit matters to the Audit Committee.

Key audit matter How our audit addressed the key audit matter

Investments in financial assets at fair value through profit or loss Refer to note 2 (Summary of significant accounting policies) and note 4 (Fair value measurement)

At 30 June 2021, investments in financial assets at fair value through profit or loss comprised primarily of investments in unlisted unit trusts.

Investments in financial assets at fair value through profit or loss was a key audit matter because investments represent the principal element of the balance sheet. A discrepancy in the valuation or existence of investments could cause the net asset value to be materially misstated which would also impact the Funds' reported performance as the valuation of investments is the main driver of movements in the profit of the Funds.

To assess the design and operating effectiveness of the service provider's relevant controls, we:

inspected the most recent reports provided by the service provider setting out the controls in place at that service provider, and that included an independent audit opinion over the design and operating effectiveness of those controls.

developed an understanding of the control objectives and associated control activities and evaluated the results of the tests undertaken and the conclusions formed by the auditor on the design and operating effectiveness of controls, to the extent relevant to our audit of the Funds.

We performed the following procedures, amongst others, to assess the valuation and existence of the Funds' investments in unlisted unit trusts:

We obtained confirmation from the unit registry for investments in unlisted unit trusts at year end and compared the

Key audit matter How our audit addressed the key audit matter

confirmed balance to the accounting records.

We compared the price used by the Funds to value these investments to the most recent audited financial statements of the unlisted unit trusts and to the 30 June 2021 price quoted by the unlisted unit trusts' Responsible Entity.

Other information

The directors of the Responsible Entity are responsible for the other information. The other information comprises the information included in the annual report for the year ended 30 June 2021, but does not include the financial report and our auditor’s report thereon.

Our opinion on the financial report does not cover the other information and accordingly we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial report, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial report or our knowledge obtained in the audit, or otherwise appears to be materially misstated.

If, based on the work we have performed on the other information that we obtained prior to the date of this auditor’s report, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Responsibilities of the directors of the Responsible Entity for the financial report

The directors of the Responsible Entity are responsible for the preparation of the financial report that gives a true and fair view in accordance with Australian Accounting Standards and the Corporations Act 2001 and for such internal control as the directors of the Responsible Entity determines is necessary to enable the preparation of the financial report that gives a true and fair view and is free from material misstatement, whether due to fraud or error.

In preparing the financial report, the directors of the Responsible Entity are responsible for assessing the ability of the Funds to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors of the Responsible Entity either intends to liquidate the Funds or to cease operations, or have no realistic alternative but to do so.

Auditor’s responsibilities for the audit of the financial report

Our objectives are to obtain reasonable assurance about whether the financial report as a whole is free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with the Australian Auditing Standards will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of the financial report.

A further description of our responsibilities for the audit of the financial report is located at the Auditing and Assurance Standards Board website at: http://www.auasb.gov.au/auditors_responsibilities/ar6.pdf. This description forms part of our auditor's report.

PricewaterhouseCoopers

Britt Hawkins Melbourne Partner 9 September 2021

Vanguard Investments Australia Ltd (ABN 72 072 881 086 / AFSL 227263) (“Vanguard”) is the product issuer andResponsible Entity of the interests in the Vanguard Investor Funds. Interests in the Vanguard Investor Funds are offeredthrough a Product Disclosure Statement (“PDS”) only. You can access the relevant PDS at www.vanguard.com.au or bycalling 1300 655 102. New applications into the Vanguard Investor Funds are no longer accepted.

Past performance is not an indication of future performance. In preparing this Annual report, individual circumstances, forexample tax implications, have not been taken into account and it may, therefore, not be applicable to an individual’s situation.Before making an investment decision, you should consider your circumstances and whether the information contained in theAnnual report is applicable to your situation. This Annual report was prepared in good faith and we accept no liability for anyerrors or omissions. All marks are the exclusive property of their respective owners.

The funds or securities referred to herein are not sponsored, endorsed, or promoted by MSCI, and MSCI bears no liability withrespect to any such funds or securities. The PDS contains a more detailed description of the limited relationship MSCI haswith Vanguard and any related funds.

London Stock Exchange Group companies include FTSE International Limited (‘FTSE’), Frank Russell Company (‘Russell’),MTS Next Limited (‘MTS’), and FTSE TMX Global Debt Capital Markets Inc. (‘FTSE TMX’). All rights reserved. ‘FTSE®’,‘Russell®’, ‘MTS®’, ‘FTSE TMX®’ and ‘FTSE Russell’ and other service marks and trademarks related to the FTSE or Russellindexes are trademarks of the London Stock Exchange Group companies and are used by FTSE, MTS, FTSE TMX andRussell under licence. All information is provided for information purposes only. No responsibility or liability can be acceptedby the London Stock Exchange Group companies nor its licensors for any errors or for any loss from use of this publication.Neither the London Stock Exchange Group companies nor any of their licensors make any claim, prediction, warranty orrepresentation whatsoever, expressly or impliedly, either as to the results to be obtained from the use of the FTSE Indices orthe fitness or suitability of the Indices for any particular purpose to which they might be put.

Bloomberg Finance L.P. and its affiliates (collectively, “Bloomberg”) are not affiliated with Vanguard and do not approve,endorse, review, or recommend the fund(s). BLOOMBERG and the Index are trademarks or service marks of Bloomberg andhave been licensed to Vanguard. Bloomberg does not guarantee the timeliness, accurateness, or completeness of any data orinformation relating to the Index.

BLOOMBERG® is a trademark and service mark of Bloomberg Finance L.P. BARCLAYS® is a trademark and service mark ofBarclays Bank Plc, used under license. Bloomberg Finance L.P. and its affiliates, including Bloomberg Index Services Limited(“BISL”) (collectively, “Bloomberg”), or Bloomberg's licensors own all proprietary rights in the Bloomberg Barclays Indices.

The products are not sponsored, endorsed, issued, sold or promoted by “Bloomberg or Barclays”. Bloomberg and Barclaysmake no representation or warranty, express or implied, to the owners or purchasers of the products or any member of thepublic regarding the advisability of investing in securities generally or in the products particularly or the ability of theBloomberg Barclays Indices to track general bond market performance. Neither Bloomberg nor Barclays has passed on thelegality or suitability of the products with respect to any person or entity. Bloomberg’s only relationship to Vanguard and theproducts are the licensing of the Bloomberg Barclays Indices which are determined, composed and calculated by BISL withoutregard to Vanguard or the products or any owners or purchasers of the products. Bloomberg has no obligation to take theneeds of the products or the owners of the products into consideration in determining, composing or calculating theBloomberg Barclays Indices. Neither Bloomberg nor Barclays is responsible for and has not participated in the determinationof the timing of, prices at, or quantities of the products to be issued. Neither Bloomberg nor Barclays has any obligation orliability in connection with the administration, marketing or trading of the products.

The S&P Index is a product of S&P Dow Jones Indices LLC, a division of S&P Global, or its affiliates (“SPDJI”) and ASXOperations Pty Limited and has been licensed for use by Vanguard. Standard & Poor’s® and S&P® are registered trademarksof Standard & Poor’s Financial Services LLC, a division of S&P Global (“S&P”); Dow Jones® is a registered trademark of DowJones Trademark Holdings LLC (“Dow Jones”); and these trademarks have been licensed for use by SPDJI and sublicensedfor certain purposes by Vanguard. ASX is a trademark of the ASX Operations Pty Limited and has been licensed for use bySPDJI and Vanguard. Vanguard Product is not sponsored, endorsed, sold or promoted by SPDJI, Dow Jones, S&P, theirrespective affiliates, or ASX Operations Pty Limited and none of such parties make any representation regarding theadvisability of investing in such product(s) nor do they have any liability for any errors, omissions, or interruptions of the S&PIndex.

©2021 Vanguard Investments Australia Ltd. All rights reserved.

Responsible EntityVanguard Investments Australia LtdABN 72 072 881 086AFSL 227263

Level 13130 Lonsdale StreetMelbourne VIC 3000

Telephone: (03) 8888 3888Facsimile: 1300 765 712

vanguard.com.au

vanguard.com.au1300 655 101

Vanguard Investments Australia Ltd (ABN 72 072 881 086 / AFS Licence 227263) is the product issuer. We have not taken yours or your clients’ circumstances into account when preparing the information so it may not be applicable to the particular situation you are considering. You should consider yours and your clients’ circumstances, and our Product Disclosure Statements (“PDSs”), before making any investment decision or recommendation. You can access our PDSs at vanguard.com.au or by calling 1300 655 205. Past performance is not an indication of future performance. This publication was prepared in good faith and we accept no liability for any errors or omissions. © 2021 Vanguard Investments Australia Ltd. All rights reserved.ARRTLDIV_092021

Documents

Vanguard Investor Funds Annual Report