As Vanguard retail funds are now closed to new investors, there is a risk that over time these funds may no longer be economically viable to operate and could result in increased fees or termination of the funds. This proposal gives you the opportunity to participate in a one-time transaction to transition to our larger wholesale funds without triggering a capital gain.
I heard it changes the custodian of the portfolio. Currently we are custodians, but this would change it so Vanguard are custodians. So if Vanguard Australia goes out of business, you might not get your money back. It might be unlikely they'll go out of business, but still a consideration.