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Opening your Vanguard PersonalInvestor AccountWho can open an accountYou do not need to have a financial adviser toopen a Vanguard Personal Investor Account.Vanguard Personal Investor is availableto Australian residents aged 18 years orolder. Applicants must have an Australianbank account and an Australian mobilephone number that will be used for ongoingsecurity authentication. You must also havean Australian residential address and a validemail address.Vanguard Personal Investor is currentlyavailable for individual investors, joint investors, trustees of self-managed super funds(SMSFs), and Australian registered private companies(subject to the limitations noted below)How to apply for a VanguardPersonal Investor AccountVanguard Personal Investor is an onlineinvestment service. To apply, please visit ourwebsite www.vanguard.com.au/personal.When you commence your application,you will create a username and passwordwhich you can use to log into our secureportal, Vanguard Online.To complete your application you will needto provide us with personal details such asyour name, date of birth, Australian residentialaddress, Australian mobile phone numberand email address. Note: Your mobile phonenumber provides important security featuresfor your Vanguard Personal Investor Accountand will be used to authenticate your identitywhen setting up, updating, or trading onyour account.You will also need to provide an Australianbank account (linked bank account) held inthe same name as your Vanguard PersonalInvestor account. The linked bank accountmust be held with an authorised Australiandeposit-taking institution, (which may includefinancial institutions other than banks, suchas a building society or credit union). You mustkeep a bank account linked at all times.Vanguard Personal Investor Guide – As at 15 November 2021To verify your identity, we may ask for yourAustralian driver’s licence number, Australianpassport number or Medicare number.You will need to provide your occupationdetails, source of funds, tax details (Tax FileNumber (TFN) or a tax exemption) and taxresidency information. Whilst not mandatory,if you do not provide your TFN or exemption,income from your investments may be subjectto Australian withholding tax.To complete your application, you mustconfirm you have read and understoodthe Vanguard Personal Investor Guide PartsA & B, and accepted the associated Termsand Conditions.Once you have completed the applicationprocess successfully and accepted our Termsand Conditions, your Vanguard PersonalInvestor Account is ready to go. You cantransfer money into your Vanguard CashAccount to begin investing.Joint Investors: Joint Investor accountsare available to two individuals who meetthe eligibility criteria above. Joint applicationsare initiated by one of the joint accountholders and must be reviewed and approvedby the second joint account-holder. Jointaccount-holders agree that either partyon the account is authorised to operatethe account on behalf of the other accountholder – i.e. ‘any to sign’. Once the applicationis complete, the additional account-holderwill receive an invitation to register for onlineaccess to the secure portal, Vanguard Online.Joint investor accounts are offered as “Jointtenants” under Australian law which meansthat the entire account holding is equally andjointly owned by each account holder.SMSFs: SMSF applications are initiatedby one Trustee or one Director of CorporateTrustees of the SMSF. Each individualtrustee is required to review and approvethe application. Directors of corporatetrustees require one additional directorto review and approve the application(where there is more than one director—single directors of corporate trusteesdo not require an additional revieweror approver). Each approving trustee/directormust also verify their identity as outlinedabove. Trustees/directors agree that any6

one signatory on the account is authorisedto operate the account on behalf of theother signatories to the account – i.e. ‘any tosign’. Once the application is complete, eachnominated signatory will receive an invitationto register for online access to the secureportal, Vanguard Online.Companies: Company accounts are onlyavailable to companies that meet thefollowing criteria:1. The company must be solely a tax residentof Australia2. The company is a proprietary company3. The company isn’t controlledby a foreign person(s)4. The company shareholders comprise solelyof individual persons residing in Australia5. There are no more than 10 companyofficers (Directors and company secretary)associated to the company;6. The company is not a regulated entityor institution undertaking investmentactivities on behalf of others (such as anAPRA regulated superannuation fund,public companies, platforms or ManagedInvestment Schemes (MIS)), or anyother entity type deemed institutionalby Vanguard.Companies require a minimum of twocompany officers to complete and approvethe application. For single company officercompanies (e.g. sole director/companysecretary companies) do not require anadditional approver. Each company officer isrequired to review and approve the applicationand must also consent to us verifyingtheir individual identity as outlined above.Applicants agree that any one signatory on theaccount is authorised to operate the accounton behalf of the other signatories to theaccount – i.e. ‘any to sign’. Once the applicationis complete, each signatory will receive aninvitation to register for online access to thesecure portal, Vanguard Online.How your Vanguard PersonalInvestor Account worksYour Vanguard Cash AccountWhen you open a Vanguard PersonalInvestor Account, a Vanguard Cash Accountis automatically created for you. This accountVanguard Personal Investor Guide – As at 15 November 2021holds your cash balance and is used to settleall investment transactions. These transactionsinclude the funding of investment purchases,proceeds of investment sales, dividends anddistributions received from your investments aswell as money deposited or withdrawn by you.The money in your Vanguard Cash Accountis held on deposit with ANZ, an AuthorisedDeposit-taking Institution (ADI), and earnsyou a competitive variable interest rate.Please refer to the Cash Account InterestRate document on our website for the currentinterest rate.Once deposited money has cleared intoyour Vanguard Cash Account, you are readyto purchase investments listed on theInvestment Menu. Any cash balance showingas ‘available cash’ in your Vanguard CashAccount can be withdrawn at your request.Withdrawals will be paid to your linked bankaccount. Generally, Vanguard will not processpayments to third party bank accountsor pay to international bank accounts.All transfers of money into and outof your Vanguard Cash Account are madeat your direction, subject to the Terms andConditions outlined in the Statement ofAdditional Information.Auto InvestAuto Invest is a feature that allows youto regularly invest via direct debit fromyour linked bank account into one or moremanaged fund investment options or intoyour Vanguard Cash Account. You simplyselect the amount, frequency and startdate of your deposit and then selectthe relevant managed fund investmentoption for your investment.The minimum Auto Invest amount is 200either fortnightly, monthly, or quarterly andthere is no minimum amount of investmentinto each managed fund . Investmenttransactions will typically be executed3 business days after your scheduled regulardeposit date.Auto Invest is not currently availablefor ETFs or ASX listed direct shares. Thismay change in future.Under Auto Invest, a regular investmentacquisition of a managed fund may occur7

without you having been given a currentProduct Disclosure Statement (PDS) inrelation to the managed fund. You canobtain a copy of each PDS available throughVanguard Personal Investor from our website.For more information about Auto Investand the terms and conditions please referto Vanguard Personal Investor Guide Part B—Statement of Additional Information (includingTerms and Conditions).Table 1. Who can transact on your Vanguard Personal Investor AccountAuthorities on your accountACCOUNT T YPEIndividualOnly the named account holder, or their legally authorised representative(s), can operate the account(i.e. transact and other activities such as updating your contact information).JointBoth account-holders, or their legally authorised representative(s), can operate the account and authorisethat either party is authorised to operate the account on behalf of the other signatories to the account—this isin accordance with the ‘any to sign’ condition which allows both joint account holders to operate the account.SMSFTrustees and/or directors of corporate trustees of SMSFs, or their legally authorised representative(s),can operate the account and authorise that any one person on the account can operate the account on behalfof other signatories to the account—this is in accordance with the ‘any to sign’ condition allowing any oneperson on the account to operate it.CompanyCompany officers, or their legally authorised representative(s) can operate the account and authorise thatany one signatory on the account can operate the account behalf of the other signatories—this is in accordancewith the ‘any to sign’ condition allowing any one person on the account to operate it.To maintain the security and integrity ofyour account, we will ask you to authenticateyourself for certain transactions and accountactions. In these circumstances we willsend an SMS code to your mobile phone forauthentication purposes.There are certain scenarios such as suspectedfraud or where we see unusual account activitywhere we might restrict or freeze access toyour account. This includes suspending orrestricting any transactions to the account.If your access is restricted, you will not be ableto view or access your account online. If youraccount is frozen, please contact us by phone.Vanguard Personal Investor Guide – As at 15 November 2021Closing your Vanguard Personal Investor AccountIf you wish to close your Vanguard PersonalInvestor Account you should contact us usingsecure message via Vanguard Online or by phone.You will need to sell or transfer your assetsout of your account before it can be closed.Once all pending transactions have settled, wewill pay the remaining balance of your VanguardCash Account (plus any interest payable to youand minus any outstanding fees) to your linkedbank account, then close your VanguardPersonal Investor Account. For further detailson the account closure process please referto the Statement of Additional Information.8

Investment optionsVanguard Personal Investor offers access toa wide range of investment options includingVanguard managed funds, Vanguard ETFsand selected ASX listed direct shares so thatyou can invest according to your personalneeds. The range of available investmentswill vary from time to time. Please refer tothe Investment Menu for the most up todate list. You should consult the relevant PDSor disclosure document of each investmentoption (where applicable) before making aninvestment decision.Investment Selection policyThe investments available throughVanguard Personal Investor are selectedin accordance with our Investment SelectionPolicy. For further information regardingthis policy please see the Statementof Additional Information.Managed FundsManaged funds provide a cost-effective wayfor investors to access professionally managedinvestments. Your money is pooled with otherinvestors so you can invest in assets that mayotherwise be difficult or not cost effective toaccess directly. When you invest in a managedfund you are buying units in that fund and thefund owns the underlying investments.You can select managed funds from a varietyof investment styles and asset classes suchas equities, fixed interest, listed property andcash, or diversified (multi-sector) funds thathold a combination of asset classes to suitvarying investor risk profiles. These includeconservative, balanced, growth or high growthfunds. The PDS of the relevant managed fundwill detail the type of assets the fund holds,how the investments will be managed andthe types of risk associated with the fund, sothat you can compare your risk tolerance andinvestment objectives with that of the fund todetermine if it meets your needs.Please refer to the Investment Menufor the full list of available managed funds.At the date of issue of this Guide, the availablemanaged funds are limited to those offeredby Vanguard.Vanguard Personal Investor Guide – As at 15 November 2021Trade instructions to buy or sell managedfunds are placed through Vanguard Onlineand are subject to the terms and conditionsof the fund, as outlined in the relevant fundPDS. We will make the PDS for each fundavailable to you as part of the purchase process.Please take the time to review and understandthe investment options you select.The proceeds of any sale of managed funds willbe deposited into your Vanguard Cash Account.Distributions from managed fundsAny distribution you receive from a managedfund will automatically be reinvested in furtherunits of the same fund, if allowable by the fundand subject to you providing Vanguard withyour Tax File Number or tax exemption. Pleasecontact us via secure message if you wouldprefer to have these distributions paid to yourVanguard Cash Account.Exchanged Traded Funds (ETFs)An ETF is a managed fund traded on a stockexchange and are available for various assetclasses including equities, fixed interest, listedproperty and cash. You can buy and sell theVanguard ETFs listed on the Investment Menufrom your Vanguard Personal Investor Account.ETFs are bought and sold through VanguardOnline. The proceeds of any sale of ETFs (netof any brokerage costs) will be deposited intoyour Vanguard Cash Account.Distributions from ETFsDistribution payments received from theETFs you hold, will be paid into your VanguardCash Account. Distribution reinvestmentsfrom ETFs are not currently available.Direct SharesShares are an ownership interestin a corporation or financial asset. Sharesof Australian listed public companies areavailable to the public generally via the ASXor other exchanges. The value of direct shareinvestments is determined by the company’sshare price, which generally will move up anddown on a daily basis depending on a rangeof factors.9

You can buy and sell direct shares listed on theInvestment Menu from your Vanguard PersonalInvestor Account through Vanguard Online.The proceeds of any sale of direct shares (netof any brokerage costs) will be deposited intoyour Vanguard Cash Account.Please note, Vanguard Personal Investor iscurrently unable to facilitate the holding ofChess Depository Interests (CDI’s) and maybe required to remove securities from theInvestment Menu from time to time wherecorporate actions such as restructuring,mergers or takeovers modify the legalstructure of the corporation and result in achange in listing status.Corporate ActionsA corporate action is an event carried outby a listed entity that may have a materialimpact on its shareholders or creditors.Corporate actions can be either mandatoryor voluntary. Mandatory corporate actionsVanguard Personal Investor Guide – As at 15 November 2021are automatically applied to the investmentsinvolved (e.g. dividends) while voluntarycorporate actions require an investor'sresponse to be applied.Participation in voluntary corporate actionsis not currently available through VanguardPersonal Investor. You should considerthis limitation before choosing to invest indirect shares.Dividends from direct sharesDividend payments received from thedirect shares you hold, will be paid intoyour Vanguard Cash Account. Dividendreinvestments from direct shares are notcurrently available.Transferring investments to yourVanguard Personal Investor AccountAs at the date of issue of this Guide, transfersof investments you hold directly or on anotherplatform into your Vanguard Personal Investoraccount are not available.10

Investing throughVanguard Personal InvestorInvesting through Vanguard Personal Investor is different to investing directly. You, as the investor,should understand how your rights differ under the different structures.Table 2. How investing through Vanguard Personal Investor is different to investing directlyINVESTING THROUGH VANGUARD PERSONAL INVESTORINVESTING DIRECTLYAccess to yourinvestmentsYou can invest in the range of Vanguard managed funds,ETFs and ASX listed direct shares that are listed as availablefor purchase on our Investment Menu.Some managed funds may not beavailable for you to invest in directlyor they may have prohibitive minimumpurchase amounts. All exchangetraded products and shares availablefor direct (retail) investment areavailable to you.Ownership ofyour unlistedinvestmentsVanguard is the custodian of Vanguard Personal Investorand holds your Vanguard Cash Account and any unlistedassets (managed funds) you hold, on your behalf.You as the investor are both thelegal and beneficial owner of allyour investments and hold all rightsattached to ownership.Vanguard retains legal ownership of your unlisted assetsand you (the investor) retain beneficial ownership.Ownershipof your listedinvestmentsJPMorgan has been appointed as the sub-custodianto hold any listed securities (ETFs and direct shares) in yourVanguard Personal Investor Account on your behalf.JPMorgan holds legal ownership of these listed securitiessubject to Vanguard’s direction, and you (the investor) retainbeneficial ownership.You as the investor are both thelegal and beneficial owner of allyour investments and hold all rightsattached to ownership.ConsolidatedreportingYou will have access to online comprehensive consolidatedreporting on all investments held in your Vanguard Personal InvestorAccount. This includes transactional information, portfolio holdingdetails, annual investor statements and annual tax reports.You will receive separate reportingfor each product issuer that you holdinvestments with.OnlinecommunicationsYour investment communications will all be available electronically.You will receive communicationsfrom each product issuer orregistry provider which may or maynot be online.For communications regarding direct shares, you can accessthese via the issuer website or the ASX website.You can contact us to request these communications be sentto you by post.Continued next pageVanguard Personal Investor Guide – As at 15 November 202111

Cooling-offrightsINVESTING THROUGH VANGUARD PERSONAL INVESTORINVESTING DIRECTLYAs you are not the registered holder of the investments in yourVanguard Personal Investor Account, you are not entitled to anycooling off rights for those investments.You may be entitled to a 14 day coolingoff period for some financial productsif you are a retail investor. Thismeans you have a right to cancel yourinvestment and receive a refund fromthe product issuer (less fees, taxes andadjusted for market movements).The unavailability of cooling off rights may be particularlyimportant for any investments that have restricted withdrawalrights. Some products may also have exit fees that would not haveapplied if cooling off rights were able to be exercised.WithdrawalrightsAs you are not the registered owner of the investments in yourVanguard Personal Investor Account, withdrawal rights are notavailabl

— No Account Fee for Vanguard managed funds, Vanguard ETFs and Vanguard Cash Account — 0.10% p.a. Account Fee on ASX listed direct shares: This is calculated daily on the value of your ASX listed direct shares investment account balance and deducted quarterly in arrears. (Refer to the section Fees and Costs for more information).