HomeMy Public PortalAbout2013 1st Quarter ReportNot Updated in CRM457 Deferred Compensation PlanFirst Quarter 2013 Plan Executive SummaryApril 30, 2013Kristin Finney-Cooke, CAIA Senior ConsultantKristen Jackson, CFA Senior Analyst
Executive SummaryPLAN ASSETS: $39.1 MILLIONNUMBER OF ACTIVE PARTICIPANTS: 65218%82%3 Month Change: Up $2.7 MillionTarget Date FundsCore OptionsPerformance•Domestic equities had a strong run to start the year, while international equities were comparatively less robust and a shift away from low-risk assets dragged on bond returns.•Several domestic equity Plan offerings returned double-digit gains during the quarter.Manager Due Diligence•There was an announcement from Vanguard regarding a firm-level management change; this was rated “No Action” by our Due Diligence Committee.Additional Items•This quarter we have included an update on the Legal and Regulatory environment for Defined Contribution Plans.PLAN PERFORMANCE: QUARTERRANGE OF CORE FUND RETURNSRANGE OF TARGET DATE FUND RETURNSASSET WEIGHTED PLAN RETURN-0.1% to 12.9% 2.5% to 7.6% 6.84%Vanguard TotalBond Market Index InvVanguard Mid Cap Index InvIncome 2055QUARTERLY UPDATESRECENT ACTIONS/RECOMMENDATIONSRecent Actions•The latest action taken was adding the 2055 Target Date Fund to the Plan line-up in Q2 2012Watch Status•No Plan funds are currently on NEPC’s “Watch” statusRecommendations•NEPC is not recommending any actions at this time either in view of the recent quarter’s developments or any of the longer-term trending data in this reportMarch 31, 2013CAPITAL MARKETS PERFORMANCE: QUARTERBONDSDOMESTIC EQUITYFOREIGNEQUITY 2010 TARGET DATE 2040 TARGET DATE-0.1%BarCap Agg Index10.6%S&P 500 Index3.2%MSCI ACWI ex US Index3.6%S&P TDF 2010 Index7.1%S&P TDF 2040 Index1
" S t r o n g 2 0 1 2 m a r k e t r e t u r n s l e a d t o s u b d u e d e x p e c t a t i o n s W i t h o u t a f u n d a m e n t a l s h i f t i n u n d e r l y i n g e c o n o m i c d r i v e r s , f a v o r a b l e r e c e n t p e r f o r m a n c e r o b s f r o m t h e f u t u r e a n d l o w e r s 5 - 7 y e a r o u t l o o k a c r o s s m a r k e t s M a r k e t s h a v e r a l l i e d b a s e d o n p o l i c y a n n o u n c e m e n t s m o r e t h a n e c o n o m i c r e s u l t s P o l i c y a c c o m m o d a t i o n c o u l d p r o v i d e f u r t h e r t a i l w i n d t o m a r k e t s i n n e a r - t e r m " V a l u a t i o n e x p a n s i o n i s u n l i k e l y t o b e a l a r g e d r i v e r o n i t s o w n a s f e w m a r k e t s l o o k c h e a p " P o t e n t i a l f o r m a c r o s h o c k i s e l e v a t e d i n t h e n e a r t e r m S t i m u l a t i v e m o n e t a r y p o l i c y i n d e v e l o p e d w o r l d c r e a t e s a d e c e p t i v e l y c a l m b a c k d r o p U S f i s c a l c l i f f , E u r o p e a n m i s s t e p , C h i n a s l o w d o w n , o r M i d d l e E a s t c o n f l i c t c o u l d s e n d s h o c k s a c r o s s m a r k e t s " G l o b a l g r o w t h o u t l o o k r e m a i n s c o n s t r a i n e d a s d e v e l o p e d w o r l d l a c k s p o l i t i c a l w i l l t o t r u l y a d d r e s s d e b t b u r d e n P r e s s u r e f o r f i s c a l t i g h t e n i n g ( E u r o p e a n a u s t e r i t y , U S f i s c a l c l i f f ) c o u l d n e u t r a l i z e b e n e f i t s o f m o n e t a r y s t i m u l u s S t r u c t u r a l d e b t i s s u e s p l u s a n c i l l a r y e f f e c t s o f m o n e y p r i n t i n g w i l l e x t e n d d e l e v e r a g i n g " S e e d s o f i n f l a t i o n p l a n t e d b u t n o t y e t w a t e r e d M o n e y p r i n t i n g h a s l e d t o a s s e t p r i c e i n f l a t i o n i n s t e a d o f i n f l a t i o n i n t h e r e a l e c o n o m y M o n e t a r y e a s i n g c r e a t e s l o n g - t e r m i n f l a t i o n t h r e a t , b u t m u t e d c r e d i t g r o w t h l i m i t s n e a r - t e r m i n f l a t i o n p r e s s u r e N E P C 2 0 1 3 C a p i t a l M a r k e t O b s e r v a t i o n s M a r c h 3 1 , 2 0 1 3 2
" F o c u s o n s t r a t e g i c a l l o c a t i o n s i n a t i m e w i t h f e w t a c t i c a l o p p o r t u n i t i e s C o n f i r m y o u r p o l i c y o b j e c t i v e s a n d i n v e s t m e n t g o a l s A v o i d s t r e t c h i n g f o r h i g h e r r e t u r n s t h r o u g h i n c r e a s e d r i s k B e p r e p a r e d t o a c t i f o p p o r t u n i t i e s d o p r e s e n t t h e m s e l v e s " P o s i t i o n f o r a c o n t i n u a t i o n o f m a c r o - d r i v e n t h e m e s E x a m i n e e x i s t i n g m a n a g e r s c a p a b i l i t i e s " A d d t o g l o b a l a s s e t a l l o c a t i o n a n d t o p - d o w n a c t i v e s t r a t e g i e s U s e f l e x i b l e a c t i v e m a n a g e r s t o i m p l e m e n t a l l o c a t i o n s t o p o l i c y - d r i v e n m a r k e t s " N o n - U S e q u i t i e s h a v e a t t r a c t i v e v a l u a t i o n s , b u t r e t u r n p r e m i u m r e f l e c t s d o w n s i d e r i s k " C r e d i t m a r k e t s h a v e r e c o v e r e d b u t l i q u i d i t y h a s f a l l e n , m a k i n g m a r k e t d y n a m i c s l e s s s t a b l e " U s e R i s k P a r i t y a s a s t a b l e f o u n d a t i o n o f a d i v e r s i f i e d p r o g r a m R e c o n s i d e r w h a t c o n s t i t u t e s a c o r e i n v e s t m e n t i n t h i s e n v i r o n m e n t " N o l o n g e r j u s t s t o c k s a n d b o n d s R i s k P a r i t y c a n b e u s e d a s a l i q u i d p l a c e h o l d e r w h i l e t a c t i c a l o p p o r t u n i t i e s a r e l i m i t e d " C o n t i n u e b u i l d i n g a l l o c a t i o n s i n e m e r g i n g m a r k e t s a n d r e a l a s s e t s D e v e l o p i n g c o u n t r i e s c o n s i s t e n t l y d e m o n s t r a t e s u p e r i o r f u n d a m e n t a l s t o G 7 m a r k e t s M o s t i n v e s t o r s r e m a i n v u l n e r a b l e t o h i g h e r i n f l a t i o n , w i t h l i m i t e d r e a l a s s e t s e x p o s u r e " A l l o c a t e t o l e s s l i q u i d s t r a t e g i e s w i t h p a t i e n c e D i s t r e s s e d a s s e t s t h e s i s i s c o m p e l l i n g b u t c u r r e n t o p p o r t u n i t i e s a r e l i m i t e d S t r a t e g i e s p r o v i d i n g c a p i t a l t o m a r k e t s t h a t h a v e t r a d i t i o n a l l y r e l i e d o n b a n k s a r e a p p e a l i n g w i t h h i g h i n c o m e a n d r e l a t i v e l y s h o r t e r t i m e h o r i z o n s S i g n i f i c a n t s y s t e m s t r e s s r e m a i n s i n r e a l e s t a t e m a r k e t b u t c o n d i t i o n s h a v e i m p r o v e d N E P C 2 0 1 3 G e n e r a l A c t i o n s f o r C l i e n t s M a r c h 3 1 , 2 0 1 3 3
" E x p e c t e d r e t u r n s f r o m t r a d i t i o n a l d e f i n e d c o n t r i b u t i o n p l a n i n v e s t m e n t s a r e i n a d e q u a t e C i r c l e d a r e t h e t y p i c a l a s s e t c l a s s e s o f f e r e d i n D C p r o g r a m s A d i v e r s i f i e d p o r t f o l i o o f t h e s e a s s e t c l a s s e s , m a n a g e d p a s s i v e l y , i s e x p e c t e d t o r e t u r n b e t w e e n 5 % a n d 6 % T a r g e t d a t e f u n d s a r e t h e a n s w e r C a s h C o r e B o n d s T I P S H i g h Y i e l d E m e r g D e b t L g C a p E q S m / M i d C a p I n t l E q E m e r g i n g M a r k e t E q u i t y P r i v a t e E q u i t y P r i v a t e D e b t R e a l E s t a t e C o m m o d i t i e s H F L o w V o l H F M o d V o l 0 % 2 % 4 % 6 % 8 % 1 0 % 1 2 % 0 % 5 % 1 0 % 1 5 % 2 0 % 2 5 % 3 0 % 3 5 % R e t u r n % V o l a t i l i t y % N E P C 2 0 1 3 C a p i t a l M a r k e t F o r e c a s t s ( 5 - 7 Y e a r s ) N E P C 2 0 1 3 C a p i t a l M a r k e t O b s e r v a t i o n s E x p e c t e d I n f l a t i o n M a r c h 3 1 , 2 0 1 3 4
" O u r c h a l l e n g e i s h e l p i n g w o r k e r s r e t i r e P a r t i c i p a n t s a r e n o t i n v e s t m e n t e x p e r t s S a v i n g s l e v e l s a r e n o t s u f f i c i e n t E x p e c t e d r e t u r n s f r o m t r a d i t i o n a l d e f i n e d c o n t r i b u t i o n i n v e s t m e n t s a r e i n a d e q u a t e " C a s h r a t e s p i n n e d a t 0 % " S t a b l e v a l u e a n d c o r e b o n d r e t u r n s l e s s t h a n e x p e c t e d i n f l a t i o n " L a r g e c a p e q u i t y r e t u r n s l e s s t h a n 7 % " O v e r c o m e l o w r e t u r n s b y r e - e n r o l l i n g y o u r w o r k e r s R e - d i r e c t p a r t i c i p a n t a s s e t s a n d p a y r o l l d e f e r r a l s t o t h e P l a n s Q u a l i f i e d D e f a u l t I n v e s t m e n t A l t e r n a t i v e ( e . g . t a r g e t d a t e f u n d , b a l a n c e d f u n d , m a n a g e d a c c o u n t ) P a r t i c i p a n t s c a n o p t o u t o f t h e r e - e n r o l l m e n t a n d k e e p t h e i r c u r r e n t e l e c t i o n s S a n c t i o n e d b y t h e P e n s i o n P r o t e c t i o n A c t o f 2 0 0 6 a n d Q D I A R e g u l a t i o n o f 2 0 0 7 " F o r t h o s e s p o n s o r s t h a t h a v e c u s t o m t a r g e t d a t e a n d c o r e o p t i o n s C o n t i n u e b u i l d i n g a l l o c a t i o n s i n e m e r g i n g m a r k e t s a n d r e a l a s s e t s C o n t i n u e i n t r o d u c i n g n e w e r d a i l y - v a l u e d a l t e r n a t i v e f u n d s , e . g . r i s k p a r i t y N E P C A c t i o n s f o r D e f i n e d C o n t r i b u t i o n C l i e n t s M a r c h 3 1 , 2 0 1 3 5
NEPC Actions for Defined Contribution ClientsMarch 31, 20130%10%20%30%40%50%60%70%80%90%100%20 40 60 80 100Percentage of Assets Invested in Equities (%)AgeParticipant Equity Allocation by AgeTwo-Dimensional View of Defined Contribution Plan Asset AllocationThree-Dimensional View of Defined Contribution Plan Asset AllocationThree-Dimensional View of the Solution, Asset-Allocation After Re-Enrollment•Seeing the Problem and the Solution in 3DOne-Dimensional View of Defined Contribution Plan Asset Allocation17%83%Target DateFundsCore FundsPlan Asset Allocation*Assumes a 20% opt out rate by participantsExhibits represent NEPC’s experience with Defined Contribution Plan re-enrollments6
Market Environment7
Investment Market Update: As of March 31, 2013 March 31, 20138
Investment Market Update: As of March 31, 2013PERFORMANCE THROUGH 3/29/2013SectorIndex20082009201020112012JANFEBMAR2013Small Cap Growth R2000 Growth-38.5%34.5% 29.1%-2.9%14.6% 6.6% 1.1% 5.1% 13.2%SMID Cap R2500-36.8%34.4% 26.7%-2.5%17.9% 6.8% 1.1% 4.4% 12.8%Small Cap Russell 2000-33.8%27.2% 26.9%-4.2%16.4% 6.3% 1.1% 4.6% 12.4%Large Cap Value R1000 Value-36.9%19.7% 15.5% 0.4% 17.5% 6.5% 1.4% 4.0% 12.3%Small Cap Value R2000 Value-28.9%20.6% 24.5%-5.5%18.1% 6.0% 1.1% 4.2% 11.6%Large Cap Russell 1000-37.6%28.4% 16.1% 1.5% 16.4% 5.4% 1.3% 3.9% 11.0%Large Cap S&P 500-37.0%26.5% 15.1% 2.1% 16.0% 5.2% 1.4% 3.8% 10.6%Large Cap Growth R1000 Growth-38.4%37.2% 16.7% 2.6% 15.3% 4.3% 1.2% 3.8% 9.5%REITS Wilshire REIT-39.2%28.6% 28.6% 9.2% 17.6% 3.5% 0.9% 2.8% 7.4%Diversified Diversified*-24.5%24.1% 13.5% 1.3% 12.7% 3.1% 0.6% 2.0% 5.9%Int. Equity EAFE (net)-43.4%31.8% 7.8%-12.1%17.3% 5.3%-0.9%0.8% 5.1%High Yield BC HY-26.2%58.2% 15.1% 5.0% 15.8% 1.3% 0.5% 1.0% 2.9%Muni Bonds BC Muni (unadj)-2.5%12.9% 2.4% 10.7% 6.8% 0.4% 0.3%-0.4%0.3%Gov/Credit BC 1-5 Yr Gov/Cred 5.1% 4.6% 4.1% 3.1% 2.2%-0.1%0.3% 0.1% 0.3%Int. Gov/Credit BC Intermediate GC5.1%5.2% 5.9% 5.8% 3.9%-0.4%0.5% 0.1% 0.3%Gov/Credit BC 1-3 Yr Gov/Cred 5.0% 3.8% 2.8% 1.6% 1.3% 0.0% 0.1% 0.0% 0.2%Int. Core FI BC Intermediate Agg 5.2% 5.9% 6.5% 7.8% 4.2%-0.7%0.4% 0.1% 0.2%Core FI BC Aggregate 5.2% 5.9% 6.5% 7.8% 4.2%-0.7%0.5% 0.1%-0.1%EMD Loc. GBI-EM Glob. Div.-5.2%22.0% 15.7%-1.8%16.8% 0.7%-0.3% -0.5% -0.1%Commodities DJ UBS Commodity-35.7%18.9% 16.8%-13.3% -1.1%2.4%-4.1%0.7%-1.1%Emerging FI BC Emerging (USD)-14.8%34.2% 12.8% 7.0% 18.0%-0.7% -0.2% -0.6% -1.5%Emerging EM (net)-53.3%78.5% 18.9%-18.4%18.2% 1.4%-1.3% -1.7% -1.6%Long Credit BC Long Credit-3.9%16.8% 10.7% 17.1% 12.7%-2.2%0.9%-0.5% -1.8%Long Gov/Credit BC Long Gov/Credit 8.4% 1.9% 10.2% 22.5% 8.8%-2.7%1.0%-0.3% -2.0%Global FICitigroup WGBI10.9% 2.6% 5.2% 6.4% 1.7%-1.3% -1.2% -0.3% -2.8%Treasury STRIPS BC 20+ STRIPS59.5%-36.0%10.9% 58.5% 3.0%-5.9%1.5%-0.9% -5.4%* 35% LC, 10% SC, 12% Intl, 3% Emerging, 25% FI, 5% HY, 5% Global FI, 5% REITSSources: Barclays, Bloomberg, WilshireMarch 31, 20139
US Economic EnvironmentMarch 31, 201310
US Stock Market PerformanceMarch 31, 201311
Non-US Stock PerformanceMarch 31, 201312
Fixed Income PerformanceMarch 31, 201313
" T a r g e t D a t e F u n d T i p s A t t h e e n d o f F e b r u a r y , t h e U . S . D e p a r t m e n t o f L a b o r i s s u e d a d o c u m e n t t i t l e d , T a r g e t D a t e R e t i r e m e n t F u n d s T i p s f o r E R I S A P l a n F i d u c i a r i e s " T h e T i p s a r e i n t e n d e d t o p r o v i d e g e n e r a l g u i d a n c e o n t h e s e l e c t i o n a n d m o n i t o r i n g o f t a r g e t d a t e f u n d s a n d o t h e r P l a n i n v e s t m e n t o p t i o n s " I n t h e r e l e a s e o f t h e d o c u m e n t , t h e D o L d i d n o t f o l l o w a t y p i c a l r e g u l a t o r y p r o c e s s i n w h i c h l a n g u a g e i s p r o p o s e d a n d a c o m m e n t p e r i o d f o l l o w s . T h i s i s v e r y c l e a r l y n o t a n e w r u l e o r r e g u l a t i o n . W e v e w r i t t e n a p a p e r o u t l i n i n g t h e t h i n g s t h e D o L s p e a k s t o , a n d t h e g o o d n e w s f o r o u r c l i e n t s i s t h e y d o t h e s e t h i n g s t o d a y L e g i s l a t i v e a n d R e g u l a t o r y U p d a t e s M a r c h 3 1 , 2 0 1 3 1 4
Plan Reporting15
The items below summarize any changes or announcements from your Plan managers/funds. A “Yes” indicates there was an announcement and a summary is provided separately. NEPC’s Due Diligence Committee meets every two weeks to review events as they relate to investment managers and determines if any action should be taken by NEPC and/or by our clients. They rate events: No Action, Watch, Hold, Client Review or Terminate. NEPC considers ourselves to be a fiduciary, as ERISA defines the term in Section 3(21). NEPC Due Diligence Committee Recommendation KeyNo ActionInformational items have surfaced; no action is recommended.WatchIssues have surfaced to be concerned over; manager can participate in future searches, but current and prospectiveclients must be made aware of the issues.Hold Serious issues have surfaced to be concerned over; manager cannot be in future searches unless a clientspecifically requests, but current and prospective clients must be made aware of the issues.Client Review Very serious issues have surfaced with a manager; manager cannot be in future searches unless a client specificallyrequests. Current clients must be advised to review the manager.Terminate We have lost all confidence in the product; manager would not be recommended for searches and clients would bediscouraged from using. The manager cannot be in future searches unless a client specifically requests. Currentclients must be advised to replace the manager.A legend key to our recommendations is provided below.Due Diligence MonitorPlan Manager/FundManager Changes/Announcements (Recent Quarter)NEPC Due Diligence Committee RecommendationsVanguard Target Retirement FundsYes No ActionVanguard LifeStrategy Funds--Vanguard Prime Money Market--Vanguard Retirement Savings Trust--Vanguard Total Bond Market Index--Vanguard Balanced Index--Vanguard Windsor II--Vanguard 500 Index--Vanguard U.S. Growth--March 31, 201316
The items below summarize any changes or announcements from your Plan managers/funds. A “Yes” indicates there was an announcement and a summary is provided separately. NEPC’s Due Diligence Committee meets every two weeks to review events as they relate to investment managers and determines if any action should be taken by NEPC and/or by our clients. They rate events: No Action, Watch, Hold, Client Review or Terminate. NEPC considers ourselves to be a fiduciary, as ERISA defines the term in Section 3(21). NEPC Due Diligence Committee Recommendation KeyNo ActionInformational items have surfaced; no action is recommended.WatchIssues have surfaced to be concerned over; manager can participate in future searches, but current and prospectiveclients must be made aware of the issues.Hold Serious issues have surfaced to be concerned over; manager cannot be in future searches unless a clientspecifically requests, but current and prospective clients must be made aware of the issues.Client Review Very serious issues have surfaced with a manager; manager cannot be in future searches unless a client specificallyrequests. Current clients must be advised to review the manager.Terminate We have lost all confidence in the product; manager would not be recommended for searches and clients would bediscouraged from using. The manager cannot be in future searches unless a client specifically requests. Currentclients must be advised to replace the manager.A legend key to our recommendations is provided below.Due Diligence MonitorPlan Manager/FundManager Changes/Announcements (Recent Quarter)NEPC Due Diligence Committee RecommendationsVanguard Mid Cap IndexYes No ActionVanguard Small Cap Index Yes No ActionVanguard International Growth--March 31, 201317
Asset SummaryMarch 31, 2013Periods EndingBeginning YearBeginning QuarterEnd Quarter31-Mar-13($000)(%)($000)(%)($000)(%)Composite$36,481$36,481$39,141 Lifecycle Options $2,0976%$2,0976%$7,44719%Vanguard Target Retirement Income Inv$1841%$1841%$2361%Vanguard Target Retirement 2005 Inv$00%$00%$0%Vanguard Target Retirement 2010 Inv$2761%$2761%$6942%Vanguard Target Retirement 2015 Inv$1650%$1650%$1,4114%Vanguard Target Retirement 2020 Inv$1971%$1971%$1,5434%Vanguard Target Retirement 2025 Inv$7072%$7072%$1,7054%Vanguard Target Retirement 2030 Inv$1450%$1450%$6712%Vanguard Target Retirement 2035 Inv$910%$910%$5171%Vanguard Target Retirement 2040 Inv$1470%$1470%$2811%Vanguard Target Retirement 2045 Inv$1350%$1350%$3091%Vanguard Target Retirement 2050 Inv$460%$460%$770%Vanguard Target Retirement 2055 Inv$20%$20%$40%Lifestyle Options$4,66813%$4,66813%$00%Vanguard LifeStrategy Income Inv$5131%$5131%$00%Vanguard LifeStrategy Cnsrv Gr Inv$6512%$6512%$00%Vanguard LifeStrategy Moderate Gr Inv$2,2046%$2,2046%$00%Vanguard LifeStrategy Growth Inv$1,3004%$1,3004%$00%Core Options $29,71681%$29,71681%$31,69481%Vanguard Prime Money Market Inv$8842%$8842%$9642%Vanguard Retirement Savings Trust$3,3359%$3,3359%$3,1908%Vanguard Total Bond Market Index Inv$3,0638%$3,0638%$3,0958%Vanguard Balanced Index Inv$3,4339%$3,4339%$3,83410%Vanguard Windsor II Inv$6,62918%$6,62918%$7,13818%Vanguard 500 Index Inv$4,27412%$4,27412%$4,61312%Vanguard US Growth Inv$2,6837%$2,6837%$2,9898%Vanguard Mid Cap Index Inv$1,8015%$1,8015%$1,9265%Vanguard Small Cap Index Inv$1,7745%$1,7745%$2,1165%Vanguard International Growth Inv$1,8405%$1,8405%$1,8285%18
Performance Summary – Target Date FundsNotes: Performance is net of fees and is annualized for periods longer than one year. Performance is ranked within Morningstar's style-specific universes, where "1" refers to the top percentile and "100" the bottom percentile. US OE = US open ended mutual fund.March 31, 2013Weightin FundMorningstar UniverseLast QuarterRankLastYearRankThreeYearsRankFiveYearsRankTenYearsRank100% Total Plan$39,14119.0% Target Date Funds$7,4470.6% Vanguard Target Retirement Income InvUS OE Retirement Income2.5556.8567.6285.510 n/a$236Vanguard Target Income Composite Index n/a1.8% Vanguard Target Retirement 2010 InvUS OE Target Date 2000-20103.5477.8398.3135.314 n/a$694Vanguard Target 2010 Composite Index n/a3.6% Vanguard Target Retirement 2015 InvUS OE Target Date 2011-20154.6178.7298.7115.310 n/a$1,411Vanguard Target 2015 Composite Index n/a3.9% Vanguard Target Retirement 2020 InvUS OE Target Date 2016-20205.3179.4269.0195.217 n/a$1,543Vanguard Target 2020 Composite Index n/a4.4% Vanguard Target Retirement 2025 InvUS OE Target Date 2021-20256.02310.1289.3205.014 n/a$1,705Vanguard Target 2025 Composite Index n/a1.7% Vanguard Target Retirement 2030 InvUS OE Target Date 2026-20306.62410.7229.6234.915 n/a$671Vanguard Target 2030 Composite Index n/a1.3% Vanguard Target Retirement 2035 InvUS OE Target Date 2031-20357.31611.4229.9184.916 n/a$517Vanguard Target 2035 Composite Index n/a0.7% Vanguard Target Retirement 2040 InvUS OE Target Date 2036-20407.61911.72310.1205.012 n/a$281Vanguard Target 2040 Composite Index n/a0.8% Vanguard Target Retirement 2045 InvUS OE Target Date 2041-20457.62211.72910.0175.016 n/a$309Vanguard Target 2045 Composite Index n/a0.2% Vanguard Target Retirement 2050 InvUS OE Target Date 2046-20507.62411.72610.1205.017 n/a$77Vanguard Target 2050 Composite Index n/a0.0% Vanguard Target Retirement 2055 InvUS OE Target Date 2051+7.62711.833 n/a n/a n/a$4Vanguard Target 2055 Composite Index n/a n/a n/aAnnualized ReturnsEndingMarket Value19
Target Date Fund Performance, 1 Year Near-Dated FundsMarch 31, 2013•One year returns are shown below for 41 distinct funds within Morningstar’s Target Date 2000 to 2010 Universe. The median return was 10.2%. 0.010.020.030.040.050.060.070.080.090.0100.00.02.04.06.08.010.012.014.016.018.020.0Fidelity Freedom Index 2000 WJHancock2 Retirement Choices at 2010 1Wells Fargo Advantage DJ Target 2010 IFidelity Freedom 2000Fidelity Freedom K 2000Fidelity Freedom Index 2005 WAllianceBern 2000 Retirement Strat IWellington Trust Target 2000AllianceBern 2005 Retirement Strat IFidelity Freedom K 2005Fidelity Freedom 2005Fidelity Freedom Index 2010 WPresidential Protected Profile 2010 IGuideStone Funds MyDestination 2005 GS4MFS Lifetime 2010 IVantagepoint Milestone 2010Nationwide Destination 2010 InstlSchwab Target 2010AllianceBern 2010 Retirement Strat IVanguard Target Retirement 2010 InvThe Vanguard Target Retire 2010 CITJPMorgan SmartRetirement 2010 InstlSchwab Managed Retirement Tr Fd 2010 IIIFidelity Freedom 2010American Funds Trgt Date Ret 2010 R6TIAA‐CREF Lifecycle Index 2010 InstFidelity Freedom K 2010Manning & Napier Target 2010 IWellington Trust Target 2010JPMorgan Commingled Pension Sr Inc C ClSSgA Target Retirement 2010 Fund Class IMassMutual RetireSMART 2010 SJPMorgan Commingled Pension Sr2010 C ClT. Rowe Price Retirement 2005Harbor Target Retirement 2010 InstlMainStay Retirement 2010 IHartford Target Retirement 2010 R5Principal LifeTime 2010 InstlT. Rowe Price Retirement 2010TIAA‐CREF Lifecycle 2010 InstlJHancock2 Retire Living through 2010 R6MedianS&P Target Date 2010 IndexEquity Allocation(%)1 Year Return (%)Morningstar Target Date 2000 to 2010 Universe: 1 Yr Return vs Equity Allocations (%)One Year Return (%)Equity Allocation (%)20
Target Date Fund Performance, 1 Year Far-Dated FundsMarch 31, 2013•One year returns are shown below for 43 distinct funds within Morningstar’s Target Date 2036 to 2040 Universe. The median return was 15.3%. 0.010.020.030.040.050.060.070.080.090.0100.00.02.04.06.08.010.012.014.016.018.020.0Presidential Protected Profile 2040 IInvesco Balanced‐Risk Retire 2040 R5Allianz Glbl Inv Solutions 2040 InstlFidelity Freedom Index 2040 WPIMCO RealRetirement 2040 InstlDWS LifeCompass 2040 SAllianceBern 2040 Retirement Strat AdvBlackRock LifePath Active 2040 KUSAA Target Retirement 2040JHancock2 Retirement Choices at 2040 1Fidelity Freedom 2040State Farm LifePath 2040 InstFidelity Freedom K 2040Wells Fargo Advantage DJ Target 2040 IAmerican Century LIVESTRONG 2040 InstlBlackRock Lifepath Index 2040 KBlackRock LifePath 2040 KRussell LifePoints 2040 Strategy R1Great‐West SecureFoundation® LT 2040 GMainStay Retirement 2040 IVantagepoint Milestone 2040ING Solution 2040 Portfolios InitialVanguard Target Retirement 2040 InvING Index Solution 2040 Portfolio InitTIAA‐CREF Lifecycle Index 2040 InstThe Vanguard Target Retire 2040 CITMassMutual RetireSMART 2040 SJHancock2 Retire Living through 2040 R6Nationwide Destination 2040 InstlPutnam RetirementReady 2040 YSSgA Target Retirement 2040 Fund Class IManning & Napier Target 2040 ISchwab Managed Retirement Tr Fd 2040 IIIWellington Trust Target 2040Schwab Target 2040Harbor Target Retirement 2040 InstlPrincipal LifeTime 2040 InstlAmerican Funds Trgt Date Ret 2040 R6MFS Lifetime 2040 IJPMorgan Commingled Pension Sr2040 C ClTIAA‐CREF Lifecycle 2040 InstlT. Rowe Price Retirement 2040JPMorgan SmartRetirement 2040 InstlMedianS&P Target Date 2040 IndexEquity Allocation (%)1 Year Return (%)Morningstar Target Date 2036 to 2040 Universe: 1 Yr Return vs Equity Allocations (%)One Year Return (%)Equity Allocation (%)21
Target Date Fund Performance, 3 Year Near-Dated FundsMarch 31, 2013•Three year annualized returns are shown below for 39 distinct funds within Morningstar’s Target Date 2000 to 2010 Universe. The median return was 7.3%. 0.010.020.030.040.050.060.070.080.090.0100.00.02.04.06.08.010.012.0Fidelity Freedom Index 2000 WFidelity Freedom 2000Fidelity Freedom K 2000Wellington Trust Target 2000Fidelity Freedom Index 2005 WAllianceBern 2000 Retirement Strat INationwide Destination 2010 InstlWells Fargo Advantage DJ Target 2010 IVantagepoint Milestone 2010Fidelity Freedom 2005Fidelity Freedom K 2005AllianceBern 2005 Retirement Strat IWellington Trust Target 2010Fidelity Freedom Index 2010 WAllianceBern 2010 Retirement Strat IFidelity Freedom 2010Fidelity Freedom K 2010Manning & Napier Target 2010 IGuideStone Funds MyDestination 2005 GS4Schwab Target 2010MFS Lifetime 2010 ISchwab Managed Retirement Tr Fd 2010 IIIJPMorgan SmartRetirement 2010 InstlHarbor Target Retirement 2010 InstlMassMutual RetireSMART 2010 ST. Rowe Price Retirement 2005American Funds Trgt Date Ret 2010 R6JHancock2 Retire Living through 2010 R6MainStay Retirement 2010 IJPMorgan Commingled Pension Sr Inc C ClTIAA‐CREF Lifecycle Index 2010 InstVanguard Target Retirement 2010 InvThe Vanguard Target Retire 2010 CITJPMorgan Commingled Pension Sr2010 C ClT. Rowe Price Retirement 2010Hartford Target Retirement 2010 R5TIAA‐CREF Lifecycle 2010 InstlPrincipal LifeTime 2010 InstlSSgA Target Retirement 2010 Fund Class IMedianS&P Target Date 2010 IndexEquity Allocation(%)3 Yr Annualized Return (%)Morningstar Target Date 2000 to 2010 Universe: 3 Yr Annualized Returns vs Equity Allocations (%)3 Year Annualized Return (%)Equity Allocation (%)22
Target Date Fund Performance, 3 Year Far-Dated FundsMarch 31, 2013•Three year annualized returns are shown below for 37 distinct funds within Morningstar’s Target Date 2036 to 2040 Universe. The median return was 8.7%. 0.010.020.030.040.050.060.070.080.090.0100.00.02.04.06.08.010.012.0AllianceBern 2040 Retirement Strat AdvWellington Trust Target 2040DWS LifeCompass 2040 SManning & Napier Target 2040 IAllianz Glbl Inv Solutions 2040 InstlFidelity Freedom 2040Fidelity Freedom K 2040State Farm LifePath 2040 InstRussell LifePoints 2040 Strategy R1Fidelity Freedom Index 2040 WJHancock2 Retire Living through 2040 R6PIMCO RealRetirement 2040 InstlBlackRock LifePath Active 2040 KHarbor Target Retirement 2040 InstlPutnam RetirementReady 2040 YMainStay Retirement 2040 IBlackRock LifePath 2040 KUSAA Target Retirement 2040MassMutual RetireSMART 2040 SAmerican Funds Trgt Date Ret 2040 R6Vantagepoint Milestone 2040Wells Fargo Advantage DJ Target 2040 ISchwab Managed Retirement Tr Fd 2040 IIINationwide Destination 2040 InstlVanguard Target Retirement 2040 InvTIAA‐CREF Lifecycle Index 2040 InstThe Vanguard Target Retire 2040 CITJPMorgan Commingled Pension Sr2040 C ClPrincipal LifeTime 2040 InstlTIAA‐CREF Lifecycle 2040 InstlSchwab Target 2040JPMorgan SmartRetirement 2040 InstlT. Rowe Price Retirement 2040American Century LIVESTRONG 2040 InstlMFS Lifetime 2040 ISSgA Target Retirement 2040 Fund Class IInvesco Balanced‐Risk Retire 2040 R5MedianS&P Target Date 2040 IndexEquity Allocation (%)3 Year Annualized Return (%)Morningstar Target Date 2036 to 2040 Universe: 3 Yr Annualized Returns vs Equity Allocations (%)3 Year Annualized Return (%)Equity Allocation (%)23
Performance Summary – Core FundsNotes: Performance is net of fees and is annualized for periods longer than one year. Performance is ranked within Morningstar's style-specific universes, where "1" refers to the top percentile and "100" the bottom percentile. US OE = US open ended mutual fund.March 31, 20130.0% Lifestyle Funds$00.0% Vanguard LifeStrategy Income InvUS OE Conservative Allocation1.7875.6796.2734.6635.668$0Vanguard Income Benchmark 2.1 5.2 6.2 5.2 5.2 0.0% Vanguard LifeStrategy Cnsrv Gr InvUS OE Conservative Allocation3.4487.4497.3444.6646.632$0Vanguard Conservative Growth Benchmark 3.3 7.4 7.2 5.2 6.1 0.0% Vanguard LifeStrategy Moderate Gr InvUS OE Moderate Allocation5.1639.3498.7414.6587.735$0Vanguard Moderate Growth Benchmark 5.1 9.0 8.6 5.2 5.4 0.0% Vanguard LifeStrategy Growth InvUS OE Aggressive Allocation6.84610.9349.5254.2478.428$0Vanguard Growth Custom Benchmark 6.9 10.6 9.3 4.7 7.824
Performance Summary – Core FundsNotes: Performance is net of fees and is annualized for periods longer than one year. Performance is ranked within Morningstar's style-specific universes, where "1" refers to the top percentile and "100" the bottom percentile. US OE = US open ended mutual fund.March 31, 201310.6% Capital Preservation Funds$4,1532.5% Vanguard Prime Money Market InvUS Money Market Taxable0.0 0.0 0.0 0.5 1.8 $964BofAML US Treasury Bill 3 Mon 0.0 0.1 0.1 0.3 1.8 8.1% Vanguard Retirement Savings TrustStable Value0.5 2.2 2.7 3.0 3.6 $3,190RL 3yr GIC 0.3 1.3 2.2 3.1 3.5 7.9% Fixed Income Funds$3,0957.9% Vanguard Total Bond Market Index InvUS OE Intermediate-Term Bond-0.1793.7805.4725.3694.950$3,095Barclays US Agg Bond TR USD -0.1 3.8 5.5 5.5 5.0 9.8% Balanced Funds$3,8349.8% Vanguard Balanced Index InvUS OE Moderate Allocation6.53010.13310.2146.5117.928$3,83460% S&P 500-40% BarCap Agg 6.2 9.9 10.1 6.1 7.4 37.7% Large Cap Equity Funds$14,74018.2% Vanguard Windsor II InvUS OE Large Value10.37614.65611.4455.8249.421$7,138Russell 1000 Value TR USD 12.3 18.8 12.7 4.8 9.2 11.8% Vanguard 500 Index InvUS OE Large Blend10.64413.83412.5195.7308.435$4,613S&P 500 TR10.6 14.0 12.7 5.8 8.5 7.6% Vanguard US Growth InvUS OE Large Growth9.6269.83711.8326.6277.469$2,989Russell 1000 Growth TR USD 9.5 10.1 13.1 7.3 8.6 10.3% Small/Mid Cap Equity Funds$4,0434.9% Vanguard Mid Cap Index InvUS OE Mid-Cap Blend12.94815.35413.9357.93811.731$1,926MSCI US Mid Cap 450 GR USD 13.3 16.0 14.3 8.2 12.2 5.4% Vanguard Small Cap Index InvUS OE Small Blend12.83618.02514.7279.61712.716$2,116MSCI US Small Cap 1750 GR USD 12.9 18.1 14.8 9.7 12.9 4.7% International Equity Funds$1,8284.7% Vanguard International Growth InvUS OE Foreign Large Growth3.1638.5446.4551.24310.840$1,828MSCI ACWI Ex USA NR USD 3.2 8.4 4.4 -0.4 10.9 25
Appendix26
Calendar Year Returns
2003 Rank 2004 Rank 2005 Rank 2006 Rank 2007 Rank 2008 Rank 2009 Rank 2010 Rank 2011 Rank 2012 Rank
Vanguard Target Retirement Income Inv
Vanguard Target Income Composite Index
6.8 35 3.3 48 6.4 56 8.2 1 -10.9 6 14.3 80 9.4 42 5.2 9 8.2 67
6.9 3.4 6.5 8.1 -11.4 14.3 9.4 5.3 8.4
Rolling Returns (3 Years)
Top Quartile 2nd Quartile 3rd Quartile Bottom Quartile
Return12 03 06 09 12
2008
03 06 09 12
2009
03 06 09 12
2010
03 06 09 12
2011
03 06 09 12
2012
03 06 09 12
2013
03
-10.0
-5.0
0.0
5.0
10.0
15.0
20.0
Vanguard Target Retirement Income Inv Vanguard Target Income Composite Index
Rolling Risk (3 Years)
Top Quartile 2nd Quartile 3rd Quartile Bottom Quartile
Std Dev12 03 06 09 12
2008
03 06 09 12
2009
03 06 09 12
2010
03 06 09 12
2011
03 06 09 12
2012
03 06 09 12
2013
03
0.0
5.0
10.0
15.0
20.0
25.0
Vanguard Target Retirement Income Inv Vanguard Target Income Composite Index
Vanguard Target Income Composite Index US OE Retirement IncomeVanguard Target Retirement Income Inv VTINX
Risk & Return Illustration (3 Years)
Time Period: 4/1/2010 to 3/31/2013
ReturnStd Dev
0.0 1.0 2.0 3.0 4.0 5.0 6.0
0.0
2.0
4.0
6.0
8.0
10.0 Vanguard Target Retirement Income Inv
Vanguard Target Income Composite Index
Top 10 Holdings
Portfolio Date: 12/31/2012
Broad
Category
Return
Qtr
Return
YTD
Portfolio
Weighting %
Vanguard Total Bond Market II Idx Inv
Vanguard Total Stock Mkt Idx Inv
Vanguard Inflation-Protected Secs Inv
Vanguard Total Intl Stock Index Inv
Vanguard Prime Money Market Inv
CMT Market Liquidity Rate
Fixed Income 0.0 0.0 44.9
Equity 11.0 11.0 21.1
Fixed Income -0.3 -0.3 19.8
Equity 2.9 2.9 9.2
Money Market 0.0 0.0 4.9
0.0
As of 3/31/2013
27
Calendar Year Returns
2003 Rank 2004 Rank 2005 Rank 2006 Rank 2007 Rank 2008 Rank 2009 Rank 2010 Rank 2011 Rank 2012 Rank
Vanguard Target Retirement 2015 Inv
Vanguard Target 2015 Composite Index
9.0 12 4.9 44 11.4 30 7.5 23 -24.1 15 21.3 76 12.5 34 1.7 19 11.4 34
9.1 5.0 11.5 7.5 -24.4 21.4 12.6 1.5 11.5
Rolling Returns (3 Years)
Top Quartile 2nd Quartile 3rd Quartile Bottom Quartile
Return12 03 06 09 12
2008
03 06 09 12
2009
03 06 09 12
2010
03 06 09 12
2011
03 06 09 12
2012
03 06 09 12
2013
03
-15.0
-7.5
0.0
7.5
15.0
22.5
Vanguard Target Retirement 2015 Inv Vanguard Target 2015 Composite Index
Rolling Risk (3 Years)
Top Quartile 2nd Quartile 3rd Quartile Bottom Quartile
Std Dev12 03 06 09 12
2008
03 06 09 12
2009
03 06 09 12
2010
03 06 09 12
2011
03 06 09 12
2012
03 06 09 12
2013
03
0.0
5.0
10.0
15.0
20.0
25.0
Vanguard Target Retirement 2015 Inv Vanguard Target 2015 Composite Index
Vanguard Target 2015 Composite Index US OE Target Date 2011-2015Vanguard Target Retirement 2015 Inv VTXVX
Risk & Return Illustration (3 Years)
Time Period: 4/1/2010 to 3/31/2013
ReturnStd Dev
0.0 2.0 4.0 6.0 8.0 10.0 12.0
0.0
2.0
4.0
6.0
8.0
10.0 Vanguard Target Retirement 2015 Inv
Vanguard Target 2015 Composite Index
Top 10 Holdings
Portfolio Date: 12/31/2012
Broad
Category
Return
Qtr
Return
YTD
Portfolio
Weighting %
Vanguard Total Bond Market II Idx Inv
Vanguard Total Stock Mkt Idx Inv
Vanguard Total Intl Stock Index Inv
Vanguard Inflation-Protected Secs Inv
CMT Market Liquidity Rate
Fixed Income 0.0 0.0 39.8
Equity 11.0 11.0 38.2
Equity 2.9 2.9 16.8
Fixed Income -0.3 -0.3 5.1
0.1
As of 3/31/2013
28
Calendar Year Returns
2003 Rank 2004 Rank 2005 Rank 2006 Rank 2007 Rank 2008 Rank 2009 Rank 2010 Rank 2011 Rank 2012 Rank
Vanguard Target Retirement 2025 Inv
Vanguard Target 2025 Composite Index
10.1 1 5.4 94 13.2 45 7.6 41 -30.1 15 24.8 78 13.8 37 -0.4 16 13.3 43
10.1 5.5 13.4 7.6 -30.5 25.1 13.9 0.0 13.4
Rolling Returns (3 Years)
Top Quartile 2nd Quartile 3rd Quartile Bottom Quartile
Return12 03 06 09 12
2008
03 06 09 12
2009
03 06 09 12
2010
03 06 09 12
2011
03 06 09 12
2012
03 06 09 12
2013
03
-15.0
-7.5
0.0
7.5
15.0
22.5
Vanguard Target Retirement 2025 Inv Vanguard Target 2025 Composite Index
Rolling Risk (3 Years)
Top Quartile 2nd Quartile 3rd Quartile Bottom Quartile
Std Dev12 03 06 09 12
2008
03 06 09 12
2009
03 06 09 12
2010
03 06 09 12
2011
03 06 09 12
2012
03 06 09 12
2013
03
0.0
5.0
10.0
15.0
20.0
25.0
30.0
Vanguard Target Retirement 2025 Inv Vanguard Target 2025 Composite Index
Vanguard Target 2025 Composite Index US OE Target Date 2021-2025Vanguard Target Retirement 2025 Inv VTTVX
Risk & Return Illustration (3 Years)
Time Period: 4/1/2010 to 3/31/2013
ReturnStd Dev
0.0 3.0 6.0 9.0 12.0 15.0
0.0
2.0
4.0
6.0
8.0
10.0
12.0 Vanguard Target Retirement 2025 Inv
Vanguard Target 2025 Composite Index
Top 10 Holdings
Portfolio Date: 12/31/2012
Broad
Category
Return
Qtr
Return
YTD
Portfolio
Weighting %
Vanguard Total Stock Mkt Idx Inv
Vanguard Total Bond Market II Idx Inv
Vanguard Total Intl Stock Index Inv
CMT Market Liquidity Rate
Equity 11.0 11.0 49.5
Fixed Income 0.0 0.0 28.9
Equity 2.9 2.9 21.5
0.1
As of 3/31/2013
29
Calendar Year Returns
2003 Rank 2004 Rank 2005 Rank 2006 Rank 2007 Rank 2008 Rank 2009 Rank 2010 Rank 2011 Rank 2012 Rank
Vanguard Target Retirement 2035 Inv
Vanguard Target 2035 Composite Index
12.0 1 6.3 94 15.2 24 7.5 47 -34.7 13 28.2 64 15.1 26 -2.2 19 15.2 40
11.9 6.5 15.4 7.5 -35.1 28.5 15.2 -1.9 15.3
Rolling Returns (3 Years)
Top Quartile 2nd Quartile 3rd Quartile Bottom Quartile
Return12 03 06 09 12
2008
03 06 09 12
2009
03 06 09 12
2010
03 06 09 12
2011
03 06 09 12
2012
03 06 09 12
2013
03
-20.0
-10.0
0.0
10.0
20.0
30.0
Vanguard Target Retirement 2035 Inv Vanguard Target 2035 Composite Index
Rolling Risk (3 Years)
Top Quartile 2nd Quartile 3rd Quartile Bottom Quartile
Std Dev12 03 06 09 12
2008
03 06 09 12
2009
03 06 09 12
2010
03 06 09 12
2011
03 06 09 12
2012
03 06 09 12
2013
03
5.0
10.0
15.0
20.0
25.0
30.0
Vanguard Target Retirement 2035 Inv Vanguard Target 2035 Composite Index
Vanguard Target 2035 Composite Index US OE Target Date 2031-2035Vanguard Target Retirement 2035 Inv VTTHX
Risk & Return Illustration (3 Years)
Time Period: 4/1/2010 to 3/31/2013
ReturnStd Dev
0.0 3.0 6.0 9.0 12.0 15.0 18.0 21.0
0.0
2.0
4.0
6.0
8.0
10.0
12.0 Vanguard Target Retirement 2035 Inv
Vanguard Target 2035 Composite Index
Top 10 Holdings
Portfolio Date: 12/31/2012
Broad
Category
Return
Qtr
Return
YTD
Portfolio
Weighting %
Vanguard Total Stock Mkt Idx Inv
Vanguard Total Intl Stock Index Inv
Vanguard Total Bond Market II Idx Inv
CMT Market Liquidity Rate
Equity 11.0 11.0 60.0
Equity 2.9 2.9 25.9
Fixed Income 0.0 0.0 14.0
0.1
As of 3/31/2013
30
Calendar Year Returns
2003 Rank 2004 Rank 2005 Rank 2006 Rank 2007 Rank 2008 Rank 2009 Rank 2010 Rank 2011 Rank 2012 Rank
Vanguard Target Retirement 2045 Inv
Vanguard Target 2045 Composite Index
12.9 1 6.9 100 16.0 46 7.5 41 -34.6 11 28.2 83 15.2 40 -2.5 14 15.6 43
11.9 7.0 16.2 7.5 -35.1 28.5 15.2 -2.1 15.5
Rolling Returns (3 Years)
Top Quartile 2nd Quartile 3rd Quartile Bottom Quartile
Return12 03 06 09 12
2008
03 06 09 12
2009
03 06 09 12
2010
03 06 09 12
2011
03 06 09 12
2012
03 06 09 12
2013
03
-20.0
-10.0
0.0
10.0
20.0
30.0
Vanguard Target Retirement 2045 Inv Vanguard Target 2045 Composite Index
Rolling Risk (3 Years)
Top Quartile 2nd Quartile 3rd Quartile Bottom Quartile
Std Dev12 03 06 09 12
2008
03 06 09 12
2009
03 06 09 12
2010
03 06 09 12
2011
03 06 09 12
2012
03 06 09 12
2013
03
5.0
10.0
15.0
20.0
25.0
30.0
Vanguard Target Retirement 2045 Inv Vanguard Target 2045 Composite Index
Vanguard Target 2045 Composite Index US OE Target Date 2041-2045Vanguard Target Retirement 2045 Inv VTIVX
Risk & Return Illustration (3 Years)
Time Period: 4/1/2010 to 3/31/2013
ReturnStd Dev
0.0 3.0 6.0 9.0 12.0 15.0 18.0 21.0
0.0
2.0
4.0
6.0
8.0
10.0
12.0 Vanguard Target Retirement 2045 Inv
Vanguard Target 2045 Composite Index
Top 10 Holdings
Portfolio Date: 12/31/2012
Broad
Category
Return
Qtr
Return
YTD
Portfolio
Weighting %
Vanguard Total Stock Mkt Idx Inv
Vanguard Total Intl Stock Index Inv
Vanguard Total Bond Market II Idx Inv
CMT Market Liquidity Rate
Equity 11.0 11.0 62.9
Equity 2.9 2.9 27.0
Fixed Income 0.0 0.0 9.9
0.2
As of 3/31/2013
31
Calendar Year Returns
2003 Rank 2004 Rank 2005 Rank 2006 Rank 2007 Rank 2008 Rank 2009 Rank 2010 Rank 2011 Rank 2012 Rank
Vanguard Target Retirement 2055 Inv
Vanguard Target 2055 Composite Index
-2.3 9 15.6 48
-2.1 15.5
Rolling Returns (2 Years)
Top Quartile 2nd Quartile 3rd Quartile Bottom Quartile
Return04 05 06 07 08 09 10 11 12
2013
01 02 03
-40.0
-20.0
0.0
20.0
40.0
Vanguard Target Retirement 2055 Inv Vanguard Target 2055 Composite Index
Rolling Risk (2 Years)
Top Quartile 2nd Quartile 3rd Quartile Bottom Quartile
Std Dev04 05 06 07 08 09 10 11 12
2013
01 02 03
15.0
20.0
25.0
30.0
35.0
Vanguard Target Retirement 2055 Inv Vanguard Target 2055 Composite Index
Vanguard Target 2055 Composite Index US OE Target Date 2051+Vanguard Target Retirement 2055 Inv VFFVX
Risk & Return Illustration (2 Years)
Time Period: 4/1/2011 to 3/31/2013
ReturnStd Dev
0.0 3.0 6.0 9.0 12.0 15.0 18.0 21.0
0.0
2.0
4.0
6.0
8.0
10.0 Vanguard Target Retirement 2055 Inv
Vanguard Target 2055 Composite Index
Top 10 Holdings
Portfolio Date: 12/31/2012
Broad
Category
Return
Qtr
Return
YTD
Portfolio
Weighting %
Vanguard Total Stock Mkt Idx Inv
Vanguard Total Intl Stock Index Inv
Vanguard Total Bond Market II Idx Inv
CMT Market Liquidity Rate
Equity 11.0 11.0 62.9
Equity 2.9 2.9 26.7
Fixed Income 0.0 0.0 9.8
0.5
As of 3/31/2013
32
Calendar Year Returns
2003 Rank 2004 Rank 2005 Rank 2006 Rank 2007 Rank 2008 Rank 2009 Rank 2010 Rank 2011 Rank 2012 Rank
Vanguard LifeStrategy Income Inv
Vanguard Income Custom Benchmark
10.8 66 6.0 49 3.2 53 7.9 49 6.7 16 -10.5 11 12.1 92 9.2 66 3.8 15 6.5 86
7.6 5.1 2.8 6.3 6.2 -5.8 11.2 8.1 5.1 6.1
Rolling Returns (3 Years)
Top Quartile 2nd Quartile 3rd Quartile Bottom Quartile
Return2006
03 06 09 12
2007
03 06 09 12
2008
03 06 09 12
2009
03 06 09 12
2010
03 06 09 12
2011
03 06 09 12
2012
03 06 09 12
2013
03
-15.0
-7.5
0.0
7.5
15.0
22.5
Vanguard LifeStrategy Income Inv Vanguard Income Custom Benchmark
Rolling Risk (3 Years)
Top Quartile 2nd Quartile 3rd Quartile Bottom Quartile
Std Dev2006
03 06 09 12
2007
03 06 09 12
2008
03 06 09 12
2009
03 06 09 12
2010
03 06 09 12
2011
03 06 09 12
2012
03 06 09 12
2013
03
0.0
5.0
10.0
15.0
20.0
25.0
Vanguard LifeStrategy Income Inv Vanguard Income Custom Benchmark
Vanguard Income Custom Benchmark US OE Conservative AllocationVanguard LifeStrategy Income Inv VASIX
Risk & Return Illustration (5 Years)
Time Period: 4/1/2008 to 3/31/2013
ReturnStd Dev
0.0 1.0 2.0 3.0 4.0 5.0 6.0 7.0
0.0
1.0
2.0
3.0
4.0
5.0
6.0 Vanguard LifeStrategy Income Inv
Vanguard Income Custom Benchmark
Asset Allocation
Portfolio Date: 12/31/2012
%
Stock 20.1
Bond 73.3
Cash 6.5
Other 0.1
Total 100.0
As of 3/31/2013
33
Calendar Year Returns
2003 Rank 2004 Rank 2005 Rank 2006 Rank 2007 Rank 2008 Rank 2009 Rank 2010 Rank 2011 Rank 2012 Rank
Vanguard LifeStrategy Cnsrv Gr Inv
Vanguard Conservative Growth Custom Benchmark
16.6 20 8.0 13 4.5 18 10.6 12 7.0 13 -19.5 54 17.1 75 11.1 32 1.8 48 9.2 57
11.3 7.2 4.1 9.2 6.4 -15.1 16.2 10.1 2.3 9.1
Rolling Returns (3 Years)
Top Quartile 2nd Quartile 3rd Quartile Bottom Quartile
Return2006
03 06 09 12
2007
03 06 09 12
2008
03 06 09 12
2009
03 06 09 12
2010
03 06 09 12
2011
03 06 09 12
2012
03 06 09 12
2013
03
-15.0
-7.5
0.0
7.5
15.0
22.5
Vanguard LifeStrategy Cnsrv Gr Inv Vanguard Conservative Growth Custom Benchmark
Rolling Risk (3 Years)
Top Quartile 2nd Quartile 3rd Quartile Bottom Quartile
Std Dev2006
03 06 09 12
2007
03 06 09 12
2008
03 06 09 12
2009
03 06 09 12
2010
03 06 09 12
2011
03 06 09 12
2012
03 06 09 12
2013
03
0.0
5.0
10.0
15.0
20.0
25.0
Vanguard LifeStrategy Cnsrv Gr Inv Vanguard Conservative Growth Custom Benchmark
Vanguard Conservative Growth Custom Benchmark US OE Conservative AllocationVanguard LifeStrategy Cnsrv Gr Inv VSCGX
Risk & Return Illustration (5 Years)
Time Period: 4/1/2008 to 3/31/2013
ReturnStd Dev
0.0 2.0 4.0 6.0 8.0 10.0 12.0
0.0
1.0
2.0
3.0
4.0
5.0
6.0 Vanguard LifeStrategy Cnsrv Gr Inv
Vanguard Conservative Growth Custom Benchmark
Asset Allocation
Portfolio Date: 12/31/2012
%
Stock 40.3
Bond 54.7
Cash 4.9
Other 0.1
Total 100.0
As of 3/31/2013
34
Calendar Year Returns
2003 Rank 2004 Rank 2005 Rank 2006 Rank 2007 Rank 2008 Rank 2009 Rank 2010 Rank 2011 Rank 2012 Rank
Vanguard LifeStrategy Moderate Gr Inv
Vanguard Moderate Growth Custom Benchmark
22.4 29 10.6 25 5.7 37 13.3 17 7.4 31 -26.5 35 20.3 74 13.3 24 0.3 45 11.8 56
4.1 4.3 8.4 11.8 6.6 -23.0 19.6 12.4 0.9 11.5
Rolling Returns (3 Years)
Top Quartile 2nd Quartile 3rd Quartile Bottom Quartile
Return2006
03 06 09 12
2007
03 06 09 12
2008
03 06 09 12
2009
03 06 09 12
2010
03 06 09 12
2011
03 06 09 12
2012
03 06 09 12
2013
03
-15.0
-7.5
0.0
7.5
15.0
22.5
Vanguard LifeStrategy Moderate Gr Inv Vanguard Moderate Growth Custom Benchmark
Rolling Risk (3 Years)
Top Quartile 2nd Quartile 3rd Quartile Bottom Quartile
Std Dev2006
03 06 09 12
2007
03 06 09 12
2008
03 06 09 12
2009
03 06 09 12
2010
03 06 09 12
2011
03 06 09 12
2012
03 06 09 12
2013
03
0.0
5.0
10.0
15.0
20.0
25.0
Vanguard LifeStrategy Moderate Gr Inv Vanguard Moderate Growth Custom Benchmark
Vanguard Moderate Growth Custom Benchmark US OE Moderate AllocationVanguard LifeStrategy Moderate Gr Inv VSMGX
Risk & Return Illustration (5 Years)
Time Period: 4/1/2008 to 3/31/2013
ReturnStd Dev
0.0 3.0 6.0 9.0 12.0 15.0 18.0
0.0
1.0
2.0
3.0
4.0
5.0
6.0 Vanguard LifeStrategy Moderate Gr Inv
Vanguard Moderate Growth Custom Benchmark
Asset Allocation
Portfolio Date: 12/31/2012
%
Stock 60.2
Bond 36.2
Cash 3.3
Other 0.2
Total 100.0
As of 3/31/2013
35
Calendar Year Returns
2003 Rank 2004 Rank 2005 Rank 2006 Rank 2007 Rank 2008 Rank 2009 Rank 2010 Rank 2011 Rank 2012 Rank
Vanguard LifeStrategy Growth Inv
Vanguard Growth Custom Benchmark
28.5 15 12.6 26 6.9 55 16.1 10 7.5 47 -34.4 52 25.0 80 15.1 22 -2.3 34 14.4 37
22.1 11.6 6.4 14.5 6.4 -31.2 24.2 13.9 -1.6 13.8
Rolling Returns (3 Years)
Top Quartile 2nd Quartile 3rd Quartile Bottom Quartile
Return2006
03 06 09 12
2007
03 06 09 12
2008
03 06 09 12
2009
03 06 09 12
2010
03 06 09 12
2011
03 06 09 12
2012
03 06 09 12
2013
03
-20.0
-10.0
0.0
10.0
20.0
30.0
Vanguard LifeStrategy Growth Inv Vanguard Growth Custom Benchmark
Rolling Risk (3 Years)
Top Quartile 2nd Quartile 3rd Quartile Bottom Quartile
Std Dev2006
03 06 09 12
2007
03 06 09 12
2008
03 06 09 12
2009
03 06 09 12
2010
03 06 09 12
2011
03 06 09 12
2012
03 06 09 12
2013
03
0.0
5.0
10.0
15.0
20.0
25.0
30.0
Vanguard LifeStrategy Growth Inv Vanguard Growth Custom Benchmark
Vanguard Growth Custom Benchmark US OE Aggressive AllocationVanguard LifeStrategy Growth Inv VASGX
Risk & Return Illustration (5 Years)
Time Period: 4/1/2008 to 3/31/2013
ReturnStd Dev
0.0 4.0 8.0 12.0 16.0 20.0 24.0
0.0
1.0
2.0
3.0
4.0
5.0
6.0 Vanguard LifeStrategy Growth Inv
Vanguard Growth Custom Benchmark
Asset Allocation
Portfolio Date: 12/31/2012
%
Stock 79.9
Bond 18.0
Cash 1.8
Other 0.2
Total 100.0
As of 3/31/2013
36
BofAML US Treasury Bill 3 Mon US Money Market TaxableVanguard Prime Money Market Inv VMMXX
Asset Allocation
Portfolio Date: 11/30/2012
%
Stock 0.0
Bond 2.1
Cash 94.1
Other 3.7
Total 100.0
Rolling Returns (3 Years)
Top Quartile 2nd Quartile 3rd Quartile Bottom Quartile
Return2006
03 06 09 12
2007
03 06 09 12
2008
03 06 09 12
2009
03 06 09 12
2010
03 06 09 12
2011
03 06 09 12
2012
03 06 09 12
2013
03
0.0
1.0
2.0
3.0
4.0
5.0
Vanguard Prime Money Market Inv BofAML US Treasury Bill 3 Mon
Calendar Year Returns
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
Vanguard Prime Money Market Inv
BofAML US Treasury Bill 3 Mon
0.9 1.1 3.0 4.9 5.1 2.8 0.5 0.1 0.0 0.0
1.1 1.3 3.1 4.8 5.0 2.1 0.2 0.1 0.1 0.1
As of 3/31/2013
37
Historical Sector Allocations (10 Years)
0.0
10.0
20.0
30.0
40.0
50.0
60.0
70.0
80.0
90.0
100.0
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
Cash %US Govt Debt %Mortgage %
US Credit %Non-US %
Top Holdings
Detail
Holding
Type
Portfolio
Weighting %
CMT Market Liquidity Rate
Ginnie Mae Jumbos TBA 3.5% 2042-01-01
Fannie Mae Single Family TBA 3.5% 2042-01-01
US Treasury Bond 6.25%
US Treasury Note 1.875%
US Treasury Note 0.375%
US Treasury Note 1%
US Treasury Note 0.375%
US Treasury Note 0.25%
Freddie Mac Gold Single Family TBA 3.5% 2042-01-01
MUTUAL FUND - MONEY MARKET 6.99
BOND - GOV'T AGENCY PASS-THRU 0.94
BOND - GOV'T AGENCY PASS-THRU 0.87
BOND - GOV'T/TREASURY 0.76
BOND - GOV'T/TREASURY 0.64
BOND - GOV'T/TREASURY 0.63
BOND - GOV'T/TREASURY 0.60
BOND - GOV'T/TREASURY 0.58
BOND - GOV'T/TREASURY 0.55
BOND - GOV'T AGENCY PASS-THRU 0.53
Asset Allocation
Portfolio Date: 12/31/2012
%
Stock 0.0
Bond 92.5
Cash 7.5
Other 0.1
Total 100.0
Fixed Income Statistics
Portfolio Date: 12/31/2012
Morningstar Fixed Income Style Box™High Med Low
Ltd Mod Ext
Fixed-Income Stats
Average Eff Duration 5.2
Average Eff Maturity 7.1
Average Coupon 3.9
Average Price 111.3
Average Credit Quality AA
Credit Quality Breakdown
Portfolio Date: 12/31/2012
Fund Index
AAA %
AA %
A %
BBB %
BB %
B %
Below B %
Not Rated %
Yield to Maturity
72.6
4.49
11.64
11.28
0.00
0.00
0.00
0.00
1.54
BarCap US Agg Bond TR USD US OE Intermediate-Term BondVanguard Total Bond Market Index Inv VBMFX
As of 3/31/2013
38
Calendar Year Returns
2003 Rank 2004 Rank 2005 Rank 2006 Rank 2007 Rank 2008 Rank 2009 Rank 2010 Rank 2011 Rank 2012 Rank
Vanguard Total Bond Market Index Inv
BarCap US Agg Bond TR USD
4.0 58 4.2 38 2.4 19 4.3 35 6.9 11 5.1 10 5.9 90 6.4 73 7.6 15 4.0 84
4.1 4.3 2.4 4.3 7.0 5.2 5.9 6.5 7.8 4.2
Rolling Returns (3 Years)
Top Quartile 2nd Quartile 3rd Quartile Bottom Quartile
Return2006
03 06 09 12
2007
03 06 09 12
2008
03 06 09 12
2009
03 06 09 12
2010
03 06 09 12
2011
03 06 09 12
2012
03 06 09 12
2013
03
-5.0
0.0
5.0
10.0
15.0
20.0
Vanguard Total Bond Market Index Inv BarCap US Agg Bond TR USD
Rolling Risk (3 Years)
Top Quartile 2nd Quartile 3rd Quartile Bottom Quartile
Std Dev2006
03 06 09 12
2007
03 06 09 12
2008
03 06 09 12
2009
03 06 09 12
2010
03 06 09 12
2011
03 06 09 12
2012
03 06 09 12
2013
03
0.0
2.0
4.0
6.0
8.0
10.0
12.0
Vanguard Total Bond Market Index Inv BarCap US Agg Bond TR USD
US OE Intermediate-Term BondBarCap US Agg Bond TR USDVanguard Total Bond Market Index Inv VBMFX
Risk & Return Illustration (5 Years)
Time Period: 4/1/2008 to 3/31/2013
ReturnStd Dev
0.0 1.0 2.0 3.0 4.0
0.0
1.0
2.0
3.0
4.0
5.0
6.0
7.0 Vanguard Total Bond Market Index Inv
BarCap US Agg Bond TR USD
Risk & Return Characteristics (5 Years)
Time Period: 4/1/2008 to 3/31/2013
Fund Index
R2
Alpha
Beta
Std Dev
Up Capture Ratio
Down Capture Ratio
Sharpe Ratio (geo)
Information Ratio (geo)
Tracking Error
Correlation
3.4
1.5
100.7
97.7
1.0
-0.1
99.6
0.2
-0.6
1.0
100.0
0.0
1.0
3.4
100.0
100.0
1.5
0.0
1.0
As of 3/31/2013
39
Historical Sector Allocations (5 Years)
0.0
10.0
20.0
30.0
40.0
50.0
60.0
70.0
80.0
90.0
100.0
12/2008 6/2009 12/2009 6/2010 12/2010 6/2011 12/2011 6/2012 12/2012
Energy %Materials %Industrials %
Consumer Discretionary %Consumer Staples %Healthcare %
Financials %Information Technology %Telecom Services %
Utilities %
Attribution (Quarter)
Portfolio
Weights
Benchmark
Weights
Portfolio
Return
Benchmark
Return
Allocation
Effect
Selection
Effect
Active
Return
Consumer Discretionary
Consumer Staples
Energy
Financials
Health Care
Industrials
Information Technology
Materials
Telecommunication Services
Utilities
Unclassified
Attribution Total
Cash
Bond
Other
Missing Performance
Total
7.19 0.00 12.36 0.22 0.00 0.22
5.50 0.00 14.60 0.38 0.00 0.38
5.97 0.00 10.55 -0.01 0.00 -0.01
9.72 0.00 11.95 0.22 0.00 0.22
6.91 0.00 15.52 0.58 0.00 0.58
6.48 0.00 12.14 0.17 0.00 0.17
10.50 0.00 5.57 -0.93 0.00 -0.93
2.30 0.00 5.32 -0.21 0.00 -0.21
1.54 0.00 8.66 -0.05 0.00 -0.05
1.99 0.00 13.55 0.10 0.00 0.10
0.00 60.00 10.61 0.00 0.00 0.00
58.11 60.00 11.07 10.61 0.46 0.00 0.46
3.59 0.00
38.21 40.00
0.01 0.00
0.04 0.00
99.97 100.00
Market Capitalization Breakdown
Portfolio Date: 12/31/2012
Fund Index
Market Cap Giant %
Market Cap Large %
Market Cap Mid %
Market Cap Small %
Market Cap Micro %
Average Market Cap (mil) (Long)
50.2
36.8
12.8
0.1
0.0
54,821.2
40.8
31.0
19.6
6.3
2.3
30,872.1
Portfolio Statistics
Fund Index
# of Holdings
% Asset in Top 10 Holdings
Turnover Ratio %
P/E Ratio
P/B Ratio
LT Earn Growth
Hist Earn Growth
12 Mo Yield
9,454
9.3
43.0
15.3
2.1
10.6
6.0
1.9
2
100.0
16.6
2.3
9.9
7.9
0.0
Holdings Based Style Trail (5 Years)
Time Period: 6/30/2008 to 12/31/2012
Micro Small Mid Large Giant
Deep-Val Core-Val Core Core-Grth High-Grth
Vanguard Balanced Index Inv 60% S&P 500-40% BarCap Agg
60% S&P 500-40% BarCap Agg US OE Moderate AllocationVanguard Balanced Index Inv VBINX
As of 3/31/2013
40
Calendar Year Returns
2003 Rank 2004 Rank 2005 Rank 2006 Rank 2007 Rank 2008 Rank 2009 Rank 2010 Rank 2011 Rank 2012 Rank
Vanguard Balanced Index Inv
60% S&P 500-40% BarCap Agg
19.9 49 9.3 42 4.7 56 11.0 53 6.2 49 -22.2 13 20.1 77 13.1 27 4.1 7 11.3 65
18.5 8.3 4.0 11.1 6.2 -22.1 18.4 12.1 4.7 11.3
Rolling Returns (3 Years)
Top Quartile 2nd Quartile 3rd Quartile Bottom Quartile
Return2006
03 06 09 12
2007
03 06 09 12
2008
03 06 09 12
2009
03 06 09 12
2010
03 06 09 12
2011
03 06 09 12
2012
03 06 09 12
2013
03
-15.0
-7.5
0.0
7.5
15.0
22.5
Vanguard Balanced Index Inv 60% S&P 500-40% BarCap Agg
Rolling Risk (3 Years)
Top Quartile 2nd Quartile 3rd Quartile Bottom Quartile
Std Dev2006
03 06 09 12
2007
03 06 09 12
2008
03 06 09 12
2009
03 06 09 12
2010
03 06 09 12
2011
03 06 09 12
2012
03 06 09 12
2013
03
0.0
5.0
10.0
15.0
20.0
25.0
Vanguard Balanced Index Inv 60% S&P 500-40% BarCap Agg
60% S&P 500-40% BarCap Agg US OE Moderate AllocationVanguard Balanced Index Inv VBINX
Risk & Return Illustration (5 Years)
Time Period: 4/1/2008 to 3/31/2013
ReturnStd Dev
0.0 3.0 6.0 9.0 12.0 15.0
0.0
2.0
4.0
6.0
8.0 Vanguard Balanced Index Inv
60% S&P 500-40% BarCap Agg
Risk & Return Characteristics (5 Years)
Time Period: 04/01/2008 to 03/31/2013
Fund Index
R2
Alpha
Beta
Std Dev
Up Capture Ratio
Down Capture Ratio
Sharpe Ratio (geo)
Information Ratio (geo)
Tracking Error
Correlation
13.1 12.7
100.0
100.0
103.1
100.8
0.5
0.8 0.0
0.5
99.7
0.2
1.0
1.0
100.0
0.0
1.0
0.5
1.0
As of 3/31/2013
41
Historical Sector Allocations (5 Years)
0.0
10.0
20.0
30.0
40.0
50.0
60.0
70.0
80.0
90.0
100.0
12/2008 6/2009 12/2009 6/2010 12/2010 6/2011 12/2011 6/2012 12/2012
Energy %Materials %Industrials %
Consumer Discretionary %Consumer Staples %Healthcare %
Financials %Information Technology %Telecom Services %
Utilities %
Attribution (Quarter)
Portfolio
Weights
Benchmark
Weights
Portfolio
Return
Benchmark
Return
Allocation
Effect
Selection
Effect
Active
Return
Consumer Discretionary
Consumer Staples
Energy
Financials
Health Care
Industrials
Information Technology
Materials
Telecommunication Services
Utilities
Unclassified
Attribution Total
Cash
Bond
Other
Missing Performance
Total
7.87 8.24 10.13 12.67 0.00 -0.21 -0.21
10.00 7.20 8.35 16.87 0.14 -0.87 -0.73
12.82 16.16 11.83 9.79 0.07 0.27 0.34
19.53 27.52 11.31 12.10 0.02 -0.16 -0.14
15.64 11.61 13.64 14.61 0.10 -0.15 -0.05
11.76 9.14 8.18 12.52 0.01 -0.53 -0.53
9.74 6.49 8.60 16.89 0.16 -0.83 -0.67
1.19 3.78 6.08 3.05 0.25 0.04 0.28
2.98 3.34 12.30 7.50 0.01 0.15 0.16
4.72 6.49 14.50 13.60 -0.02 0.05 0.03
1.17 0.00 11.37 -0.01 0.00 -0.01
97.44 99.97 10.81 12.34 0.72 -2.24 -1.52
2.52 0.00
0.05 0.00
0.00 0.00
0.00 0.03
100.00 100.00
Market Capitalization Breakdown
Portfolio Date: 12/31/2012
Fund Index
Market Cap Giant %
Market Cap Large %
Market Cap Mid %
Market Cap Small %
Market Cap Micro %
Average Market Cap (mil) (Long)
49.5
38.7
10.6
1.2
0.0
48,625.3
41.8
34.6
21.1
2.4
0.0
37,830.4
Portfolio Statistics
Fund Index
# of Holdings
% Asset in Top 10 Holdings
Turnover Ratio %
P/E Ratio
P/B Ratio
LT Earn Growth
Hist Earn Growth
12 Mo Yield
695
27.0
15.1
1.6
7.2
2.1
282
24.3
22.0
13.3
1.6
8.7
6.7
2.1
Holdings Based Style Trail (5 Years)
Time Period: 4/30/2008 to 3/31/2013
Micro Small Mid Large Giant
Deep-Val Core-Val Core Core-Grth High-Grth
Vanguard Windsor II Inv Russell 1000 Value TR USD
Russell 1000 Value TR USD US OE Large ValueVanguard Windsor II Inv VWNFX
As of 3/31/2013
42
Calendar Year Returns
2003 Rank 2004 Rank 2005 Rank 2006 Rank 2007 Rank 2008 Rank 2009 Rank 2010 Rank 2011 Rank 2012 Rank
Vanguard Windsor II Inv
Russell 1000 Value TR USD
30.1 33 18.3 7 7.0 34 18.2 50 2.2 47 -36.7 53 27.1 28 10.6 88 2.7 24 16.7 25
30.0 16.5 7.1 22.2 -0.2 -36.8 19.7 15.5 0.4 17.5
Rolling Returns (3 Years)
Top Quartile 2nd Quartile 3rd Quartile Bottom Quartile
Return2006
03 06 09 12
2007
03 06 09 12
2008
03 06 09 12
2009
03 06 09 12
2010
03 06 09 12
2011
03 06 09 12
2012
03 06 09 12
2013
03
-20.0
-10.0
0.0
10.0
20.0
30.0
Vanguard Windsor II Inv Russell 1000 Value TR USD
Rolling Risk (3 Years)
Top Quartile 2nd Quartile 3rd Quartile Bottom Quartile
Std Dev2006
03 06 09 12
2007
03 06 09 12
2008
03 06 09 12
2009
03 06 09 12
2010
03 06 09 12
2011
03 06 09 12
2012
03 06 09 12
2013
03
5.0
10.0
15.0
20.0
25.0
30.0
35.0
Vanguard Windsor II Inv Russell 1000 Value TR USD
Russell 1000 Value TR USD US OE Large ValueVanguard Windsor II Inv VWNFX
Risk & Return Illustration (5 Years)
Time Period: 4/1/2008 to 3/31/2013
ReturnStd Dev
0.0 4.0 8.0 12.0 16.0 20.0 24.0 28.0
0.0
1.0
2.0
3.0
4.0
5.0
6.0
7.0 Vanguard Windsor II Inv
Russell 1000 Value TR USD
Risk & Return Characteristics (5 Years)
Time Period: 4/1/2008 to 3/31/2013
Fund Index
R2
Alpha
Beta
Std Dev
Up Capture Ratio
Down Capture Ratio
Sharpe Ratio (geo)
Information Ratio (geo)
Tracking Error
Correlation
0.2
23.322.4
0.2
1.0
0.0
100.0
1.0
3.1
1.0
0.3
93.2
98.3
1.0
1.0
98.3
0.0
100.0
100.0
As of 3/31/2013
43
Historical Sector Allocations (5 Years)
0.0
10.0
20.0
30.0
40.0
50.0
60.0
70.0
80.0
90.0
100.0
12/2008 6/2009 12/2009 6/2010 12/2010 6/2011 12/2011 6/2012 12/2012
Energy %Materials %Industrials %
Consumer Discretionary %Consumer Staples %Healthcare %
Financials %Information Technology %Telecom Services %
Utilities %
Attribution (Quarter)
Portfolio
Weights
Benchmark
Weights
Portfolio
Return
Benchmark
Return
Allocation
Effect
Selection
Effect
Active
Return
Consumer Discretionary
Consumer Staples
Energy
Financials
Health Care
Industrials
Information Technology
Materials
Telecommunication Services
Utilities
Attribution Total
Cash
Bond
Total
11.37 11.43 12.27 12.18 0.00 0.01 0.01
10.71 10.72 14.58 14.58 0.00 0.00 0.00
11.11 11.12 10.19 10.18 0.00 0.00 0.00
15.77 15.79 11.43 11.44 0.00 0.00 0.00
12.17 12.18 15.57 15.83 0.00 -0.03 -0.03
10.18 10.19 10.68 10.67 0.00 0.00 0.00
18.54 18.55 4.67 4.66 0.00 0.00 0.00
3.55 3.55 4.80 4.80 0.00 0.00 0.00
3.03 3.02 9.47 9.44 0.00 0.00 0.00
3.43 3.43 13.02 13.02 0.00 0.00 0.00
99.87 100.00 10.61 10.63 0.00 -0.02 -0.02
0.12 0.00
0.01 0.00
100.00 100.00
Market Capitalization Breakdown
Portfolio Date: 12/31/2012
Fund Index
Market Cap Giant %
Market Cap Large %
Market Cap Mid %
Market Cap Small %
Market Cap Micro %
Average Market Cap (mil) (Long)
50.2
36.8
12.8
0.1
0.0
54,821.2
50.2
36.8
12.8
0.1
0.0
54,866.4
Portfolio Statistics
Fund Index
# of Holdings
% Asset in Top 10 Holdings
Turnover Ratio %
P/E Ratio
P/B Ratio
LT Earn Growth
Hist Earn Growth
12 Mo Yield
508
19.6
3.0
15.0
2.1
10.3
8.7
1.9
500
18.5
16.6
2.3
9.9
7.9
Holdings Based Style Trail (5 Years)
Time Period: 4/30/2008 to 3/31/2013
Micro Small Mid Large Giant
Deep-Val Core-Val Core Core-Grth High-Grth
Vanguard 500 Index Inv S&P 500 TR
S&P 500 TR US OE Large BlendVanguard 500 Index Inv VFINX
As of 3/31/2013
44
Calendar Year Returns
2003 Rank 2004 Rank 2005 Rank 2006 Rank 2007 Rank 2008 Rank 2009 Rank 2010 Rank 2011 Rank 2012 Rank
Vanguard 500 Index Inv
S&P 500 TR 28.7 10.9 4.9 15.8 5.5 -37.0 26.5 15.1 2.1 16.0
28.5 28 10.7 36 4.8 60 15.6 24 5.4 51 -37.0 38 26.5 54 14.9 31 2.0 19 15.8 38
Rolling Returns (3 Years)
Top Quartile 2nd Quartile 3rd Quartile Bottom Quartile
Return2006
03 06 09 12
2007
03 06 09 12
2008
03 06 09 12
2009
03 06 09 12
2010
03 06 09 12
2011
03 06 09 12
2012
03 06 09 12
2013
03
-20.0
-10.0
0.0
10.0
20.0
30.0
Vanguard 500 Index Inv S&P 500 TR
Rolling Risk (3 Years)
Top Quartile 2nd Quartile 3rd Quartile Bottom Quartile
Std Dev2006
03 06 09 12
2007
03 06 09 12
2008
03 06 09 12
2009
03 06 09 12
2010
03 06 09 12
2011
03 06 09 12
2012
03 06 09 12
2013
03
5.0
10.0
15.0
20.0
25.0
30.0
35.0
Vanguard 500 Index Inv S&P 500 TR
S&P 500 TR US OE Large BlendVanguard 500 Index Inv VFINX
Risk & Return Illustration (5 Years)
Time Period: 4/1/2008 to 3/31/2013
ReturnStd Dev
0.0 4.0 8.0 12.0 16.0 20.0 24.0
0.0
1.0
2.0
3.0
4.0
5.0
6.0
7.0 Vanguard 500 Index Inv
S&P 500 TR
Risk & Return Characteristics (5 Years)
Time Period: 4/1/2008 to 3/31/2013
Fund Index
R2
Alpha
Beta
Std Dev
Up Capture Ratio
Down Capture Ratio
Sharpe Ratio (geo)
Information Ratio (geo)
Tracking Error
Correlation
100.0
0.0
1.0
21.6
100.0
100.0
0.3
0.0
1.01.0
0.0
-2.0
0.3
100.2
99.7
21.6
1.0
-0.1
100.0
As of 3/31/2013
45
Historical Sector Allocations (5 Years)
0.0
10.0
20.0
30.0
40.0
50.0
60.0
70.0
80.0
90.0
100.0
12/2008 6/2009 12/2009 6/2010 12/2010 6/2011 12/2011 6/2012 12/2012
Energy %Materials %Industrials %
Consumer Discretionary %Consumer Staples %Healthcare %
Financials %Information Technology %Telecom Services %
Utilities %
Attribution (Quarter)
Portfolio
Weights
Benchmark
Weights
Portfolio
Return
Benchmark
Return
Allocation
Effect
Selection
Effect
Active
Return
Consumer Discretionary
Consumer Staples
Energy
Financials
Health Care
Industrials
Information Technology
Materials
Telecommunication Services
Utilities
Unclassified
Attribution Total
Cash
Bond
Other
Missing Performance
Total
19.12 16.71 10.96 12.18 0.07 -0.24 -0.16
5.95 12.63 23.37 13.40 -0.25 0.59 0.34
6.57 4.19 9.35 13.56 0.11 -0.29 -0.18
5.79 4.84 19.66 10.68 0.01 0.51 0.52
11.17 12.24 17.35 17.08 -0.06 0.02 -0.04
6.04 12.89 12.08 11.66 -0.14 0.03 -0.11
37.63 30.06 4.45 2.47 -0.61 0.80 0.18
2.90 3.98 7.57 6.66 0.03 0.03 0.06
2.55 2.26 -2.64 10.78 0.00 -0.36 -0.36
0.00 0.20 14.57 -0.01 0.00 -0.01
0.01 0.00 9.27 0.00 0.00 0.00
97.73 100.00 9.82 9.59 -0.84 1.08 0.23
1.71 0.00
0.10 0.00
0.39 0.00
0.07 0.00
100.00 100.00
Market Capitalization Breakdown
Portfolio Date: 12/31/2012
Fund Index
Market Cap Giant %
Market Cap Large %
Market Cap Mid %
Market Cap Small %
Market Cap Micro %
Average Market Cap (mil) (Long)
35.9
38.7
24.5
0.9
0.0
34,188.4
47.5
31.9
19.6
1.0
0.0
45,092.2
Portfolio Statistics
Fund Index
# of Holdings
% Asset in Top 10 Holdings
Turnover Ratio %
P/E Ratio
P/B Ratio
LT Earn Growth
Hist Earn Growth
12 Mo Yield
125
30.8
43.0
20.0
3.3
14.8
20.0
0.5
574
24.3
19.0
4.3
12.8
13.6
Holdings Based Style Trail (5 Years)
Time Period: 4/30/2008 to 3/31/2013
Micro Small Mid Large Giant
Deep-Val Core-Val Core Core-Grth High-Grth
Vanguard US Growth Inv Russell 1000 Growth TR USD
Russell 1000 Growth TR USD US OE Large GrowthVanguard US Growth Inv VWUSX
As of 3/31/2013
46
Calendar Year Returns
2003 Rank 2004 Rank 2005 Rank 2006 Rank 2007 Rank 2008 Rank 2009 Rank 2010 Rank 2011 Rank 2012 Rank
Vanguard US Growth Inv
Russell 1000 Growth TR USD
26.1 58 7.0 55 11.2 18 1.8 88 10.1 68 -37.8 28 35.0 47 11.5 83 -0.7 36 18.4 18
29.7 6.3 5.3 9.1 11.8 -38.4 37.2 16.7 2.6 15.3
Rolling Returns (3 Years)
Top Quartile 2nd Quartile 3rd Quartile Bottom Quartile
Return2006
03 06 09 12
2007
03 06 09 12
2008
03 06 09 12
2009
03 06 09 12
2010
03 06 09 12
2011
03 06 09 12
2012
03 06 09 12
2013
03
-20.0
-10.0
0.0
10.0
20.0
30.0
40.0
Vanguard US Growth Inv Russell 1000 Growth TR USD
Rolling Risk (3 Years)
Top Quartile 2nd Quartile 3rd Quartile Bottom Quartile
Std Dev2006
03 06 09 12
2007
03 06 09 12
2008
03 06 09 12
2009
03 06 09 12
2010
03 06 09 12
2011
03 06 09 12
2012
03 06 09 12
2013
03
5.0
10.0
15.0
20.0
25.0
30.0
35.0
Vanguard US Growth Inv Russell 1000 Growth TR USD
Russell 1000 Growth TR USD US OE Large GrowthVanguard US Growth Inv VWUSX
Risk & Return Illustration (5 Years)
Time Period: 4/1/2008 to 3/31/2013
ReturnStd Dev
0.0 4.0 8.0 12.0 16.0 20.0 24.0 28.0
0.0
2.0
4.0
6.0
8.0
10.0 Vanguard US Growth Inv
Russell 1000 Growth TR USD
Risk & Return Characteristics (5 Years)
Time Period: 4/1/2008 to 3/31/2013
Fund Index
R2
Alpha
Beta
Std Dev
Up Capture Ratio
Down Capture Ratio
Sharpe Ratio (geo)
Information Ratio (geo)
Tracking Error
Correlation
22.3
99.7
3.2
-0.2
1.0
0.3
103.5
1.0
-0.6
97.9 100.0
0.0
1.0
21.8
100.0
100.0
0.3
0.0
1.0
As of 3/31/2013
47
Historical Sector Allocations (5 Years)
0.0
10.0
20.0
30.0
40.0
50.0
60.0
70.0
80.0
90.0
100.0
12/2008 6/2009 12/2009 6/2010 12/2010 6/2011 12/2011 6/2012 12/2012
Energy %Materials %Industrials %
Consumer Discretionary %Consumer Staples %Healthcare %
Financials %Information Technology %Telecom Services %
Utilities %
Attribution (Quarter)
Portfolio
Weights
Benchmark
Weights
Portfolio
Return
Benchmark
Return
Allocation
Effect
Selection
Effect
Active
Return
Attribution Total
Cash
Bond
Other
Missing Performance
Total
99.68 99.36 13.36 13.34 0.02 0.02
0.11 0.00
0.01 0.00
0.00 0.34
0.20 0.30
100.00 100.00
Market Capitalization Breakdown
Portfolio Date: 12/31/2012
Fund Index
Market Cap Giant %
Market Cap Large %
Market Cap Mid %
Market Cap Small %
Market Cap Micro %
Average Market Cap (mil) (Long)
0.0
4.9
94.1
1.0
0.0
6,440.4
0.0
4.5
94.5
1.0
0.0
6,438.4
Portfolio Statistics
Fund Index
# of Holdings
% Asset in Top 10 Holdings
Turnover Ratio %
P/E Ratio
P/B Ratio
LT Earn Growth
Hist Earn Growth
12 Mo Yield
452
4.8
17.0
17.0
2.1
11.2
8.4
1.1
446
5.1
18.2
2.3
7.7
5.9
Holdings Based Style Trail (5 Years)
Time Period: 4/30/2008 to 3/31/2013
Micro Small Mid Large Giant
Deep-Val Core-Val Core Core-Grth High-Grth
Vanguard Mid Cap Index Inv MSCI US Mid Cap 450 GR USD
MSCI US Mid Cap 450 GR USD US OE Mid-Cap BlendVanguard Mid Cap Index Inv VIMSX
As of 3/31/2013
48
Calendar Year Returns
2003 Rank 2004 Rank 2005 Rank 2006 Rank 2007 Rank 2008 Rank 2009 Rank 2010 Rank 2011 Rank 2012 Rank
Vanguard Mid Cap Index Inv
MSCI US Mid Cap 450 GR USD
34.1 55 20.4 19 13.9 13 13.6 46 6.0 44 -41.8 69 40.2 25 25.5 29 -2.1 34 15.8 57
39.0 20.5 13.9 13.7 6.2 -41.8 40.5 25.7 -1.9 16.0
Rolling Returns (3 Years)
Top Quartile 2nd Quartile 3rd Quartile Bottom Quartile
Return2006
03 06 09 12
2007
03 06 09 12
2008
03 06 09 12
2009
03 06 09 12
2010
03 06 09 12
2011
03 06 09 12
2012
03 06 09 12
2013
03
-40.0
-20.0
0.0
20.0
40.0
Vanguard Mid Cap Index Inv MSCI US Mid Cap 450 GR USD
Rolling Risk (3 Years)
Top Quartile 2nd Quartile 3rd Quartile Bottom Quartile
Std Dev2006
03 06 09 12
2007
03 06 09 12
2008
03 06 09 12
2009
03 06 09 12
2010
03 06 09 12
2011
03 06 09 12
2012
03 06 09 12
2013
03
0.0
7.5
15.0
22.5
30.0
37.5
45.0
Vanguard Mid Cap Index Inv MSCI US Mid Cap 450 GR USD
MSCI US Mid Cap 450 GR USD US OE Mid-Cap BlendVanguard Mid Cap Index Inv VIMSX
Risk & Return Illustration (5 Years)
Time Period: 4/1/2008 to 3/31/2013
ReturnStd Dev
0.0 5.0 10.0 15.0 20.0 25.0 30.0
0.0
2.0
4.0
6.0
8.0
10.0 Vanguard Mid Cap Index Inv
MSCI US Mid Cap 450 GR USD
Risk & Return Characteristics (5 Years)
Time Period: 4/1/2008 to 3/31/2013
Fund Index
R2
Alpha
Beta
Std Dev
Up Capture Ratio
Down Capture Ratio
Sharpe Ratio (geo)
Information Ratio (geo)
Tracking Error
Correlation
25.8
99.2
1.0
-0.2
100.0
100.2
0.3
-1.2
0.2
1.0
100.0
0.0
1.0
25.9
100.0
100.0
0.3
0.0
1.0
As of 3/31/2013
49
Historical Sector Allocations (5 Years)
0.0
10.0
20.0
30.0
40.0
50.0
60.0
70.0
80.0
90.0
100.0
12/2008 6/2009 12/2009 6/2010 12/2010 6/2011 12/2011 6/2012 12/2012
Energy %Materials %Industrials %
Consumer Discretionary %Consumer Staples %Healthcare %
Financials %Information Technology %Telecom Services %
Utilities %
Attribution (Quarter)
Portfolio
Weights
Benchmark
Weights
Portfolio
Return
Benchmark
Return
Allocation
Effect
Selection
Effect
Active
Return
Attribution Total
Cash
Bond
Other
Missing Performance
Total
99.20 98.68 12.82 12.83 -0.01 -0.01
0.56 0.00
0.05 0.00
0.00 1.22
0.19 0.10
100.00 100.00
Market Capitalization Breakdown
Portfolio Date: 12/31/2012
Fund Index
Market Cap Giant %
Market Cap Large %
Market Cap Mid %
Market Cap Small %
Market Cap Micro %
Average Market Cap (mil) (Long)
0.0
0.0
22.9
58.3
18.8
1,497.3
0.0
0.0
23.0
58.2
18.9
1,496.4
Portfolio Statistics
Fund Index
# of Holdings
% Asset in Top 10 Holdings
Turnover Ratio %
P/E Ratio
P/B Ratio
LT Earn Growth
Hist Earn Growth
12 Mo Yield
1,759
2.3
14.0
16.2
1.7
12.0
-0.8
1.5
1,719
2.5
17.6
2.0
12.1
2.5
Holdings Based Style Trail (5 Years)
Time Period: 4/30/2008 to 3/31/2013
Micro Small Mid Large Giant
Deep-Val Core-Val Core Core-Grth High-Grth
Vanguard Small Cap Index Inv MSCI US Small Cap 1750 GR USD
MSCI US Small Cap 1750 GR USD US OE Small BlendVanguard Small Cap Index Inv NAESX
As of 3/31/2013
50
Calendar Year Returns
2003 Rank 2004 Rank 2005 Rank 2006 Rank 2007 Rank 2008 Rank 2009 Rank 2010 Rank 2011 Rank 2012 Rank
Vanguard Small Cap Index Inv
MSCI US Small Cap 1750 GR USD 47.4 20.0 7.5 15.8 1.2 -36.2 36.1 27.8 -2.8 18.2
45.6 36 19.9 43 7.4 42 15.7 42 1.2 30 -36.1 53 36.1 26 27.7 25 -2.8 44 18.0 22
Rolling Returns (3 Years)
Top Quartile 2nd Quartile 3rd Quartile Bottom Quartile
Return2006
03 06 09 12
2007
03 06 09 12
2008
03 06 09 12
2009
03 06 09 12
2010
03 06 09 12
2011
03 06 09 12
2012
03 06 09 12
2013
03
-40.0
-20.0
0.0
20.0
40.0
Vanguard Small Cap Index Inv MSCI US Small Cap 1750 GR USD
Rolling Risk (3 Years)
Top Quartile 2nd Quartile 3rd Quartile Bottom Quartile
Std Dev2006
03 06 09 12
2007
03 06 09 12
2008
03 06 09 12
2009
03 06 09 12
2010
03 06 09 12
2011
03 06 09 12
2012
03 06 09 12
2013
03
7.5
15.0
22.5
30.0
37.5
45.0
Vanguard Small Cap Index Inv MSCI US Small Cap 1750 GR USD
MSCI US Small Cap 1750 GR USD US OE Small BlendVanguard Small Cap Index Inv NAESX
Risk & Return Illustration (5 Years)
Time Period: 4/1/2008 to 3/31/2013
ReturnStd Dev
0.0 5.0 10.0 15.0 20.0 25.0 30.0
0.0
2.0
4.0
6.0
8.0
10.0
12.0 Vanguard Small Cap Index Inv
MSCI US Small Cap 1750 GR USD
Risk & Return Characteristics (5 Years)
Time Period: 4/1/2008 to 3/31/2013
Fund Index
R2
Alpha
Beta
Std Dev
Up Capture Ratio
Down Capture Ratio
Sharpe Ratio (geo)
Information Ratio (geo)
Tracking Error
Correlation
27.227.2
0.3 0.3
100.0
0.0
1.0
99.8
99.9
-0.4
0.1
1.0
100.0
0.0
1.0
100.0
100.0
0.0
1.0
As of 3/31/2013
51
Attribution (Quarter)
Portfolio
Weights
Benchmark
Weights
Portfolio
Return
Benchmark
Return
Allocation
Effect
Selection
Effect
Active
Return
Consumer Discr
Consumer Stapl
Energy
Financials
Health Care
Industrials
Information Tech
Materials
Telecommunicat
Utilities
Unclassified
Attribution Total
Cash
Bond
Other
Missing Perform
Total
15.84 9.58 4.79 5.46 0.17 -0.11 0.06
7.92 10.40 9.86 8.92 -0.12 0.07 -0.05
5.00 10.10 -2.75 -2.33 0.26 -0.02 0.24
19.98 26.24 4.85 3.76 -0.03 0.23 0.19
7.59 7.31 9.60 11.98 0.06 -0.18 -0.13
14.04 10.51 6.33 4.54 0.06 0.26 0.32
13.10 6.33 -0.62 2.95 0.00 -0.50 -0.49
9.48 10.65 -5.76 -7.23 0.07 0.16 0.24
1.87 5.32 12.38 2.15 0.03 0.20 0.23
0.36 3.43 2.96 -0.31 0.10 0.01 0.12
0.00 0.05 4.99 0.00 0.00 0.00
95.17 99.93 3.74 3.01 0.61 0.12 0.73
2.86 0.00
0.20 0.00
1.57 0.00
0.20 0.07
100.00 100.00
Historical Country Allocations (5 Years)
0.0
10.0
20.0
30.0
40.0
50.0
60.0
70.0
80.0
90.0
100.0
12/2008 6/2009 12/2009 6/2010 12/2010 6/2011 12/2011 6/2012 12/2012
North America %Latin America %United Kingdom %
Europe dev %Europe emrg %Africa/Middle East %
Australasia %Japan %Asia dev %
Asia emrg %
Portfolio Statistics
Fund Index
# of Holdings
% Asset in Top 10 Holdings
Turnover Ratio %
P/E Ratio
P/B Ratio
LT Earn Growth
Hist Earn Growth
12 Mo Yield
185
20.3
30.0
12.0
1.8
18.5
39.1
1.7
1,827
9.5
12.9
1.5
9.9
-11.2
Holdings Based Style Trail (5 Years)
Time Period: 4/30/2008 to 3/31/2013
Micro Small Mid Large Giant
Deep-Val Core-Val Core Core-Grth High-Grth
Vanguard International Growth Inv MSCI ACWI Ex USA NR USD
Market Capitalization Breakdown
Portfolio Date: 12/31/2012
Fund Index
Market Cap Giant %
Market Cap Large %
Market Cap Mid %
Market Cap Small %
Market Cap Micro %
Average Market Cap
Equity Region Developed %
Equity Region Emerging %
54.6
33.0
11.9
0.6
0.0
28,758.2
81.4
18.6
54.6
34.4
10.9
0.1
0.0
27,867.5
MSCI ACWI Ex USA NR USD US OE Foreign Large GrowthVanguard International Growth Inv VWIGX
As of 3/31/2013
52
Calendar Year Returns
2003 Rank 2004 Rank 2005 Rank 2006 Rank 2007 Rank 2008 Rank 2009 Rank 2010 Rank 2011 Rank 2012 Rank
Vanguard International Growth Inv
MSCI ACWI Ex USA NR USD
34.4 39 19.0 30 15.0 39 25.9 37 16.0 22 -44.9 62 41.6 10 15.7 8 -13.7 47 20.0 25
40.8 20.9 16.6 26.7 16.7 -45.5 41.4 11.2 -13.7 16.8
Rolling Returns (3 Years)
Top Quartile 2nd Quartile 3rd Quartile Bottom Quartile
Return2006
03 06 09 12
2007
03 06 09 12
2008
03 06 09 12
2009
03 06 09 12
2010
03 06 09 12
2011
03 06 09 12
2012
03 06 09 12
2013
03
-20.0
0.0
20.0
40.0
60.0
Vanguard International Growth Inv MSCI ACWI Ex USA NR USD
Rolling Risk (3 Years)
Top Quartile 2nd Quartile 3rd Quartile Bottom Quartile
Std Dev2006
03 06 09 12
2007
03 06 09 12
2008
03 06 09 12
2009
03 06 09 12
2010
03 06 09 12
2011
03 06 09 12
2012
03 06 09 12
2013
03
7.5
15.0
22.5
30.0
37.5
Vanguard International Growth Inv MSCI ACWI Ex USA NR USD
MSCI ACWI Ex USA NR USD US OE Foreign Large GrowthVanguard International Growth Inv VWIGX
Risk & Return Illustration (5 Years)
Time Period: 4/1/2008 to 3/31/2013
ReturnStd Dev
0.0 10.0 20.0 30.0 40.0
-0.7
-0.3
0.1
0.5
0.9
1.3
1.7 Vanguard International Growth Inv
MSCI ACWI Ex USA NR USD
Risk & Return Characteristics (5 Years)
Time Period: 4/1/2008 to 3/31/2013
Fund Index
R2
Alpha
Beta
Std Dev
Up Capture Ratio
Down Capture Ratio
Sharpe Ratio (geo)
Information Ratio (geo)
Tracking Error
Correlation
26.927.7
0.0 0.0
99.1
1.7
1.0
109.3
101.4
0.6
2.7
1.0
100.0
0.0
1.0
100.0
100.0
0.0
1.0
As of 3/31/2013
53
" R - S q u a r e d ( R 2 ) A s t a t i s t i c a l m e a s u r e o f t h e p e r c e n t a g e o f a F u n d s m o v e m e n t s t h a t c a n b e e x p l a i n e d b y m o v e m e n t s i n a n i n d e x b e n c h m a r k . V a l u e s c a n r a n g e f r o m 0 t o 1 ( 0 % t o 1 0 0 % ) . G e n e r a l R a n g e f o r R - S q u a r e d : 7 0 - 1 0 0 % = h i g h e x p l a n a t o r y v a l u e o f t h e b e n c h m a r k ' s r e t u r n s 4 0 - 7 0 % = a v e r a g e e x p l a n a t o r y v a l u e o f t h e b e n c h m a r k ' s r e t u r n s 0 - 4 0 % = l o w e x p l a n a t o r y v a l u e o f t h e b e n c h m a r k ' s r e t u r n s " A l p h a A m e a s u r e o f p e r f o r m a n c e o n a r i s k - a d j u s t e d b a s i s . T h e r i s k - a d j u s t e d p e r f o r m a n c e i s c o m p a r e d t o t h a t o f a b e n c h m a r k i n d e x a n d a n y e x c e s s r e t u r n i s A l p h a . A p o s i t i v e A l p h a o f 1 . 0 i n d i c a t e s t h e f u n d o u t p e r f o r m e d i t s b e n c h m a r k b y 1 % . " B e t a A m e a s u r e o f a F u n d s v o l a t i l i t y , o r s y s t e m a t i c r i s k , c o m p a r e d t o t h a t o f i t s b e n c h m a r k . T h e B e t a o f t h e m a r k e t ( b e n c h m a r k ) i s 1 . 0 . G e n e r a l R a n g e f o r B e t a : A b e t a g r e a t e r t h a n 1 . 0 i n d i c a t e s t h e F u n d s r e t u r n s a r e m o r e v o l a t i l e t h a n t h e b e n c h m a r k s A b e t a l e s s t h a n 1 . 0 i n d i c a t e s t h e F u n d s r e t u r n s a r e l e s s v o l a t i l e t h a n t h e b e n c h m a r k s A b e t a o f 1 . 0 i n d i c a t e s t h e F u n d w i l l g e n e r a t e t h e s a m e l e v e l o f r i s k a s t h e m a r k e t " S t a n d a r d D e v i a t i o n A s t a t i s t i c a l m e a s u r e m e n t o f d i s p e r s i o n a r o u n d a n a v e r a g e , w h i c h r e p r e s e n t s h o w w i d e l y a F u n d ' s r e t u r n s v a r i e d o v e r a s p e c i f i e d t i m e p e r i o d . I t i s m e a s u r e d a s t h e s q u a r e r o o t o f v a r i a n c e . A F u n d w i t h a s t a n d a r d d e v i a t i o n o f 1 9 % a n d a m e a n r e t u r n o f 5 % o v e r 5 y e a r s i n d i c a t e s a b o u t 6 8 % o f t h e d a t a v a l u e s h a v e r a n g e d b e t w e e n - 1 4 % a n d 2 4 % ( w i t h i n o n e s t a n d a r d d e v i a t i o n o f t h e m e a n ) a n d a b o u t 9 5 % o f t h e d a t a v a l u e s h a v e r a n g e d b e t w e e n - 3 3 % a n d 4 3 % ( w i t h i n t w o s t a n d a r d d e v i a t i o n s o f t h e m e a n ) S t a n d a r d d e v i a t i o n i s a r e p r e s e n t a t i o n o f r i s k ; h i g h e r s t a n d a r d d e v i a t i o n r e p r e s e n t s g r e a t e r f l u c t u a t i o n s i n r e t u r n s t h a n l o w e r s t a n d a r d d e v i a t i o n G l o s s a r y o f T e r m s M a r c h 3 1 , 2 0 1 3 5 4
" U p C a p t u r e R a t i o M e a s u r e s a F u n d ' s p e r f o r m a n c e i n u p m a r k e t s r e l a t i v e t o a b e n c h m a r k . A r a t i o g r e a t e r t h a n 1 0 0 % i n d i c a t e s t h e F u n d h a s o u t p e r f o r m e d t h e b e n c h m a r k d u r i n g p e r i o d s o f r i s i n g m a r k e t s . " D o w n C a p t u r e R a t i o M e a s u r e s a F u n d ' s p e r f o r m a n c e i n d o w n m a r k e t s r e l a t i v e t o a b e n c h m a r k . A r a t i o g r e a t e r t h a n 1 0 0 % i n d i c a t e s t h e F u n d h a s u n d e r p e r f o r m e d t h e b e n c h m a r k d u r i n g p e r i o d s o f d e c l i n i n g m a r k e t s . " S h a r p e R a t i o A r i s k - a d j u s t e d p e r f o r m a n c e m e a s u r e t h a t i s u s e d t o d e t e r m i n e r e w a r d p e r u n i t o f r i s k . T h e S h a r p e R a t i o i s c a l c u l a t e d b y s u b t r a c t i n g t h e r i s k - f r e e r a t e f r o m t h e r e t u r n ( h i s t o r i c a l o r e x p e c t e d ) o f a p o r t f o l i o a n d t h e n d i v i d i n g t h e r e s u l t b y t h e s t a n d a r d d e v i a t i o n o f p o r t f o l i o r e t u r n s . I t i s u s e d t o s t a n d a r d i z e p e r f o r m a n c e c o m p a r i s o n s g i v e n d i f f e r e n t l e v e l s o f r i s k e m p l o y e d a c r o s s f u n d s . " T r a c k i n g E r r o r T r a c k i n g e r r o r i s t h e s t a n d a r d d e v i a t i o n o f t h e d i f f e r e n c e s b e t w e e n t h e F u n d r e t u r n a n d t h e b e n c h m a r k r e t u r n , i . e . t h e s t a n d a r d d e v i a t i o n o f e x c e s s r e t u r n s T r a c k i n g e r r o r i s a m e a s u r e o f h o w b e n c h m a r k - s e n s i t i v e a F u n d i s I n d e x f u n d s g e n e r a l l y h a v e t r a c k i n g e r r o r b e t w e e n 0 a n d 1 . 5 % B e n c h m a r k - a w a r e F u n d s g e n e r a l l y h a v e t r a c k i n g e r r o r b e t w e e n 2 % a n d 5 % B e n c h m a r k - a g n o s t i c F u n d s g e n e r a l l y h a v e t r a c k i n g e r r o r g r e a t e r t h a n 6 % " I n f o r m a t i o n R a t i o ( I R ) A r i s k - a d j u s t e d p e r f o r m a n c e m e a s u r e t h a t c a l c u l a t e s t h e r a t i o o f e x c e s s r e t u r n v e r s u s a b e n c h m a r k d i v i d e d b y t h e T r a c k i n g E r r o r . A h i g h e r I R i n d i c a t e s g r e a t e r r i s k - a d j u s t e d r e t u r n s a n d c a n b e u s e d a s a n i n d i c a t o r o f c o n s i s t e n c y G e n e r a l R a n g e f o r I n f o r m a t i o n R a t i o : - 0 . 5 t o 0 . 5 A F u n d w i t h A l p h a o f 0 . 5 % a n d T r a c k i n g E r r o r o f 4 % w o u l d h a v e a n I n f o r m a t i o n R a t i o o f 0 . 1 2 5 A F u n d w i t h A l p h a o f 1 % a n d T r a c k i n g E r r o r o f 4 % w o u l d h a v e a n I n f o r m a t i o n R a t i o o f 0 . 2 5 A F u n d w i t h A l p h a o f 1 % a n d T r a c k i n g E r r o r o f 8 % w o u l d h a v e a n I n f o r m a t i o n R a t i o o f 0 . 1 2 5 I n f o r m a t i o n r a t i o s f a l l i n a t i g h t r a n g e a n d a r e n e g a t i v e i f A l p h a i s n e g a t i v e . I n f o r m a t i o n r a t i o s > 0 i n d i c a t e p o s i t i v e r i s k - a d j u s t e d p e r f o r m a n c e , a n d i n f o r m a t i o n r a t i o s > 0 . 2 5 i n d i c a t e s t r o n g r i s k - a d j u s t e d p e r f o r m a n c e G l o s s a r y o f T e r m s M a r c h 3 1 , 2 0 1 3 5 5
" C o r r e l a t i o n - A s t a t i s t i c a l m e a s u r e o f h o w t w o s e c u r i t i e s ( f u n d a n d b e n c h m a r k ) m o v e i n r e l a t i o n t o e a c h o t h e r . V a l u e s c a n r a n g e f r o m - 1 . 0 t o + 1 . 0 P e r f e c t p o s i t i v e c o r r e l a t i o n - A c o e f f i c i e n t o f + 1 . 0 ; i m p l i e s a F u n d a n d b e n c h m a r k m o v e i n l o c k s t e p , u p o r d o w n P e r f e c t n e g a t i v e c o r r e l a t i o n A c o e f f i c i e n t o f - 1 . 0 ; i m p l i e s a F u n d a n d b e n c h m a r k m o v e p e r f e c t l y o p p o s i t e l y , u p o r d o w n Z e r o c o r r e l a t i o n A c o e f f i c i e n t o f 0 ; i m p l i e s t h a t m o v e m e n t s b e t w e e n t h e F u n d a n d b e n c h m a r k a r e r a n d o m a n d t h e c h a n g e i n v a l u e o f o n e w i l l h a v e n o i m p a c t i n t h e c h a n g e i n v a l u e o f t h e o t h e r G l o s s a r y o f T e r m s M a r c h 3 1 , 2 0 1 3 5 6
" N E P C u s e s , a s a d a t a s o u r c e , t h e p l a n s c u s t o d i a n b a n k o r s e r v i c e p r o v i d e r f o r a s s e t b a l a n c e s , c a l c u l a t i o n o f a c c r u a l s , t r a n s f e r s , e x c h a n g e s a n d c o n t r i b u t i o n d e f e r r a l i n f o r m a t i o n . W h i l e N E P C h a s e x e r c i s e d r e a s o n a b l e p r o f e s s i o n a l c a r e i n p r e p a r i n g t h i s r e p o r t , w e c a n n o t g u a r a n t e e t h e a c c u r a c y o f a l l s o u r c e i n f o r m a t i o n c o n t a i n e d w i t h i n . " T h i s r e p o r t i s p r o v i d e d a s a m a n a g e m e n t a i d f o r t h e c l i e n t s i n t e r n a l u s e o n l y . F u n d p e r f o r m a n c e c o n t a i n e d i n t h i s r e p o r t d o e s n o t c o n s t i t u t e a r e c o m m e n d a t i o n b y N E P C . " I n f o r m a t i o n i n t h i s r e p o r t o n f u n d r e t u r n s , m a r k e t i n d i c e s a n d s e c u r i t y c h a r a c t e r i s t i c s i s r e c e i v e d f r o m s o u r c e s e x t e r n a l t o N E P C . W h i l e e f f o r t s a r e m a d e t o e n s u r e t h a t t h i s e x t e r n a l d a t a i s a c c u r a t e , N E P C c a n n o t a c c e p t r e s p o n s i b i l i t y f o r e r r o r s t h a t m a y o c c u r . " ( c ) M o r n i n g s t a r 2 0 1 1 . A l l R i g h t s R e s e r v e d . F o r i n s t i t u t i o n a l u s e o n l y . T h e i n f o r m a t i o n c o n t a i n e d h e r e i n : ( 1 ) i s p r o p r i e t a r y t o M o r n i n g s t a r a n d / o r i t s c o n t e n t p r o v i d e r s ; ( 2 ) m a y n o t b e c o p i e d o r d i s t r i b u t e d ; a n d ( 3 ) i s n o t w a r r a n t e d t o b e a c c u r a t e , c o m p l e t e o r t i m e l y . N e i t h e r M o r n i n g s t a r n o r i t s c o n t e n t p r o v i d e r s a r e r e s p o n s i b l e f o r a n y d a m a g e s o r l o s s e s a r i s i n g f r o m a n y u s e o f t h i s i n f o r m a t i o n . P a s t f i n a n c i a l p e r f o r m a n c e i s n o g u a r a n t e e o f f u t u r e r e s u l t s . D i s c l a i m e r M a r c h 3 1 , 2 0 1 3 5 7