HomeMy Public PortalAbout2015 1st Quarter ReportPerformance
Review
Metropolitan St. Louis Sewer
District Deferred Compensation
Plan
1st Quarter 2015
Pavilion Advisory Group Inc.
227 W. Monroe Street, Suite 2020
Chicago, IL 60606
Phone: 312-798-3200
Fax: 312-902-1984
www.pavilioncorp.com
1 Executive Summary 1
2 Performance Summary 4
3 Plan Assets 12
4 Manager Evaluation 15
5 Capital Markets Review 49
Table Of Contents
Executive Summary
1
Performance Summary - March 2015
First quarter fund returns were strong overall, due to robust performance from the equity markets and continued resilience from the fixed income market. All
target date retirement funds reported positive performance for the first quarter.
Plan Assets
The investment menu provides a combination of single strategy funds and diversified portfolios including a balanced fund and target retirement date funds. The
retirement dates range from 2010 through 2060 in five year increments.
Manager Evaluation
Vanguard is a market leader and well known for its low cost market index and institutional investment funds. In February 2014, Vanguard announced that the
Vanguard Growth Equity Fund merged with the Vanguard U.S. Growth Fund. The merged fund will keep Vanguard U.S. Growth Fund's current sub advisors,
Delaware, Wellington, and William Blair, while adding Vanguard Growth Equity Fund's sub advisors, Baillie Gifford and Jennison, effectively increasing the
number of advisors from 3 to 5. Additionally, in October 2014, Charles Anniss, CFA, replaced Greg Aldridge as portfolio manager for the portion of the
International Growth Fund managed by M&G Investment Management Limited (M&G). The funds' multimanager approach and other portfolio managers are
unchanged. Pavilion will continue to monitor the manager for further developments. There were no major changes to the other investment options.
First quarter performance for the active managers in the investment menu was strong in relative terms. Vanguard U.S. Growth outpaced the Russell 1000 Growth
Index by 70 basis points due primarily to strong stock selection in the health care sector, while Vanguard International Growth outperformed the MSCI AC World
ex USA Index by 200 basis points as a result of strong stock selection and an overweight allocation to the consumer discretionary sector. The Vanguard Windsor
II Fund was the only fund in the plan to have a negative quarterly return; however the fund outperformed, besting the Russell 1000 Value Index by 60 basis
points.
The international equity segment was the best absolute performer for the quarter. Target retirement date funds modestly trailed their respective benchmarks over
longer-termed periods.
Deferred Compensation Plan Executive Summary
2
Deferred Compensation Plan Executive Summary
Capital Markets Review
The Federal Reserve maintained its ultra-low interest rate policy, further pushing back its expected timeline for raising rates. Investors lowered expectations for a
rate increase after the Fed lowered its unemployment rate target to 5.0-5.2% from5.5%, and cited economic growth’s recent dependency on low rates. Not
wanting to quash economic expansion by raising rates too early remains a tenet of Janet Yellen’s philosophy.
Non-U.S. equities outperformed domestic equities. Aggressive central bank stimulus action, particularly from the ECB and Bank of Japan, bolstered non-U.S.
equities. However, given the increased stimulus measures and anticipation of the first U.S. interest rate hike sometime in 2015, most currencies depreciated versus
the U.S. dollar, hindering U.S. dollar-denominated returns. Despite the strengthening U.S. dollar and weakening commodity prices, emerging market equities also
advanced in U.S. dollar terms.
The euro fell to 2003 levels as it broke the $1.05/€ value during April. Long-term interest rates in Germany, Finland and Switzerland went negative as the ECB
bond-buying program added to the euro’s weakness. Greece continued to teeter on the edge of default as a new government threatened to not repay loans unless
payback terms were eased. European lenders balked at the idea, forcing Greek leaders to abide by current loan covenants.
Recommendations or Action Items
No recommendations at this time.
3
Performance Summary
4
Quarter
Year
To
Date
1
Year
3
Years
5
Years
10
Years
Domestic Equity Options
Vanguard 500 Index (VFINX)0.9 (64)0.9 (64)12.6 (31)15.9 (30)14.3 (29)7.9 (44)
S&P 500 1.0 (64)1.0 (64)12.7 (30)16.1 (28)14.5 (26)8.0 (41)
Large-Cap Equity Peer Group Median 1.5 1.5 10.3 14.8 13.1 7.7
Vanguard US Growth (VWUSX)4.5 (33)4.5 (33)17.3 (17)17.0 (20)15.3 (28)8.8 (47)
Russell 1000 Growth Index 3.8 (46)3.8 (46)16.1 (26)16.3 (30)15.6 (24)9.4 (35)
Large-Cap Growth Equity Peer Group Median 3.4 3.4 14.0 15.1 14.2 8.6
Vanguard Windsor II (VWNFX)-0.1 (71)-0.1 (71)8.0 (57)14.7 (51)12.7 (48)7.2 (46)
Russell 1000 Value Index -0.7 (83)-0.7 (83)9.3 (40)16.4 (23)13.8 (25)7.2 (45)
Large-Cap Value Equity Peer Group Median 0.8 0.8 8.5 14.7 12.5 7.0
Vanguard Mid-Cap Index (VIMSX)4.2 (44)4.2 (44)14.7 (10)17.8 (16)15.9 (20)9.8 (31)
Vanguard Mid-Cap Index Fund Blended Benchmark 4.3 (43)4.3 (43)15.0 (9)18.1 (14)16.2 (18)10.0 (25)
Mid-Cap Equity Peer Group Median 3.8 3.8 8.5 15.1 14.3 9.1
Vanguard Small-Cap Index (NAESX)4.8 (34)4.8 (34)9.7 (23)17.4 (26)15.6 (28)9.9 (13)
Vanguard Small-Cap Index Fund Blended Benchmark 4.8 (33)4.8 (33)9.8 (21)17.6 (22)15.8 (26)10.0 (12)
Small-Cap Equity Peer Group Median 3.7 3.7 6.0 15.1 14.2 8.2
International Equity Option
Vanguard International Growth (VWIGX)5.5 (35)5.5 (35)0.3 (34)8.8 (39)7.4 (29)6.8 (26)
MSCI AC World ex USA (Net)3.5 (84)3.5 (84)-1.0 (45)6.4 (77)4.8 (76)5.5 (46)
International Equity Peer Group Median 4.8 4.8 -1.3 8.2 6.3 5.3
Fixed Income Options
Vanguard Total Bond Market Index (VBMFX)1.6 (51)1.6 (51)5.5 (41)2.9 (80)4.2 (81)4.8 (66)
Vanguard Total Bond Market Index Fund Benchmark 1.7 (43)1.7 (43)5.7 (27)3.1 (73)4.5 (72)4.9 (58)
Market Duration Fixed Income Peer Group Median 1.6 1.6 5.3 3.6 4.9 5.1
Vanguard Retirement Savings Trust 0.5 0.5 1.9 1.9 2.3 3.1
Ryan 3 Yr GIC Master 0.3 0.3 1.0 1.1 1.8 3.0
Performance Summary
Investment Options
As of March 31, 2015
_________________________
Returns are expressed as percentages. Returns for periods greater than one year are annualized.
Peer group percentile ranks are shown in parenthesis.
5
Performance Summary
Investment Options
As of March 31, 2015
Quarter
Year
To
Date
1
Year
3
Years
5
Years
10
Years
Equity/Fixed Income Blend Options
Vanguard Balanced Index (VBINX)1.7 (62)1.7 (62)9.6 (13)10.8 (19)10.6 (14)7.3 (16)
Vanguard Balanced Index Fund Benchmark 1.8 (56)1.8 (56)9.7 (11)11.1 (15)10.8 (11)7.4 (13)
60% Equity / 40% Fixed Peer Group Median 2.0 2.0 6.8 9.9 9.3 6.5
Vanguard Target Retirement Income (VTINX)1.8 (43)1.8 (43)5.7 (17)5.8 (53)6.7 (37)5.6 (23)
Vanguard Target Income Composite Index 1.8 (40)1.8 (40)5.9 (16)6.0 (48)6.8 (33)5.7 (23)
IM Mixed-Asset Target Alloc Consv (MF) Median 1.7 1.7 4.1 5.9 6.2 4.9
Vanguard Target Retirement 2010 (VTENX)1.9 (40)1.9 (40)6.1 (3)7.0 (34)7.6 (23)N/A
Vanguard Target 2010 Composite Index 1.9 (38)1.9 (38)6.3 (2)7.2 (30)7.7 (16)N/A
IM Mixed-Asset Target 2010 (MF) Median 1.7 1.7 4.4 6.5 6.7 4.8
Vanguard Target Retirement 2015 (VTXVX)2.0 (36)2.0 (36)6.8 (3)8.5 (13)8.6 (8)6.3 (6)
Vanguard Target 2015 Composite Index 2.0 (34)2.0 (34)7.1 (1)8.7 (7)8.6 (5)6.3 (6)
IM Mixed-Asset Target 2015 (MF) Median 1.9 1.9 4.8 7.3 7.3 4.6
Vanguard Target Retirement 2020 (VTWNX)2.2 (37)2.2 (37)7.5 (2)9.6 (5)9.3 (6)N/A
Vanguard Target 2020 Composite Index 2.2 (35)2.2 (35)7.7 (2)9.9 (3)9.5 (3)N/A
IM Mixed-Asset Target 2020 (MF) Median 2.0 2.0 5.3 7.6 7.7 5.1
Vanguard Target Retirement 2025 (VTTVX)2.2 (51)2.2 (51)7.7 (4)10.4 (15)9.8 (18)6.6 (16)
Vanguard Target 2025 Composite Index 2.2 (51)2.2 (51)7.9 (3)10.6 (10)10.0 (11)6.7 (10)
IM Mixed-Asset Target 2025 (MF) Median 2.3 2.3 5.9 9.0 8.8 5.9
Vanguard Target Retirement 2030 (VTHRX)2.3 (54)2.3 (54)7.8 (10)11.1 (13)10.3 (15)N/A
Vanguard Target 2030 Composite Index 2.3 (57)2.3 (57)8.0 (7)11.4 (9)10.5 (11)N/A
IM Mixed-Asset Target 2030 (MF) Median 2.4 2.4 6.3 9.7 9.1 5.4
Vanguard Target Retirement 2035 (VTTHX)2.4 (67)2.4 (67)7.9 (14)11.9 (18)10.8 (17)7.0 (22)
Vanguard Target 2035 Composite Index 2.3 (70)2.3 (70)8.1 (9)12.1 (10)11.0 (10)7.1 (12)
IM Mixed-Asset Target 2035 (MF) Median 2.6 2.6 6.6 10.5 9.8 6.2
Vanguard Target Retirement 2040 (VFORX)2.4 (66)2.4 (66)7.9 (20)12.3 (13)11.1 (14)N/A
Vanguard Target 2040 Composite Index 2.4 (72)2.4 (72)8.2 (14)12.6 (8)11.3 (5)N/A
IM Mixed-Asset Target 2040 (MF) Median 2.6 2.6 6.7 10.7 9.7 5.8
_________________________
Returns are expressed as percentages. Returns for periods greater than one year are annualized.
Peer group percentile ranks are shown in parenthesis.
6
Performance Summary
Investment Options
As of March 31, 2015
Quarter
Year
To
Date
1
Year
3
Years
5
Years
10
Years
Equity/Fixed Income Blend Options (cont.)
Vanguard Target Retirement 2045 (VTIVX)2.4 (76)2.4 (76)7.9 (22)12.3 (20)11.1 (21)7.3 (21)
Vanguard Target 2045 Composite Index 2.4 (81)2.4 (81)8.2 (13)12.6 (11)11.3 (8)7.4 (16)
IM Mixed-Asset Target 2045 (MF) Median 2.6 2.6 6.8 11.2 10.3 6.7
Vanguard Target Retirement 2050 (VFIFX)2.4 (79)2.4 (79)7.9 (25)12.3 (18)11.1 (19)N/A
Vanguard Target 2050 Composite Index 2.4 (80)2.4 (80)8.2 (18)12.6 (10)11.3 (9)N/A
IM Mixed-Asset Target 2050 (MF) Median 2.7 2.7 6.9 11.3 10.2 N/A
Vanguard Target Retirement 2055 (VFFVX)2.4 (79)2.4 (79)7.9 (23)12.3 (27)N/A N/A
Vanguard Target 2055 Composite Index 2.4 (80)2.4 (80)8.2 (16)12.6 (18)N/A N/A
IM Mixed-Asset Target 2055+ Funds (MF) Median 2.7 2.7 6.8 11.7 10.3 N/A
Vanguard Target Retirement 2060 (VTTSX)2.4 (79)2.4 (79)7.9 (24)12.4 (24)N/A N/A
Vanguard Target 2060 Composite Index 2.4 (80)2.4 (80)8.2 (16)12.6 (18)N/A N/A
IM Mixed-Asset Target 2055+ Funds (MF) Median 2.7 2.7 6.8 11.7 10.3 N/A
Money Market Option
Vanguard Prime Money Market (VMMXX)0.0 0.0 0.0 0.0 0.0 1.6
BofA Merrill Lynch 3 Month U.S. T-Bill 0.0 0.0 0.0 0.1 0.1 1.5
_________________________
Returns are expressed as percentages. Returns for periods greater than one year are annualized.
Peer group percentile ranks are shown in parenthesis.
7
Pe rformance Summary
Manager Compliance Checklist
As of March 31, 2015
Ma na gers
Vanguard
S&P 500
Inde x
(V FINX)
Va nguard US
Grow th
(VWUSX)
Vanguard
Windsor II
(V WNFX)
Vangua rd
Mid-Ca p
Index
(V IMSX)
Va nguard
Small-Ca p
Inde x
(NAES X)
Vangua rd
Interna tiona l
Grow th
(V WIGX)
Vangua rd
Total Bond
Marke t Inde x
(VBMFX)
Va nguard
Re ti re ment
Trust
Organi zati onal /Produ ct Is sues
No ma teria l c hanges to investment team +-+++-++
No ma teria l o rg aniza tional changes ++++++++
Accounting or regulatory concerns ++++++++
Cu rrently in adherence to guidelin es ++++++++
Po rt fo lio characteris tics me et stylis tic expectations ++++++++
Re lati ve Perfor mance 1
Three-year return better than benchmark N/A +-N/A N/A +N/A N/A
Three-year rankin g better than peer group median ++-+++-N/A
Fiv e year re turn better than benchmark N/A --N/A N/A +N/A N/AFive year re turn better than benchmark N/A --N/A N/A +N/A N/A
Fiv e year ra nkin g better than peer group median ++++++-N/A
Perfor manc e s tatus ++++++++
Summar y s tatus +-++++++
1 Manager performance is evaluated net of investment management fees.
8
Pe rformance Summary
Manager Compliance Checklist (Continued)
As of March 31, 2015
Manage rs
Vanguard
Ba lance d
Index
(V BI NX )
Vanguard
Target
Re ti re ment
Income Fund
(VTINX)
Vangua rd
Target
Re tirement
2010
(VTENX)
Vangua rd
Ta rget
Re tire ment
2015
(V TXVX)
Vangua rd
Ta rge t
Re ti re ment
2020
(V TWNX )
Vangua rd
Ta rge t
Re ti re ment
2025
(V TTVX)
Vanguard
Targe t
Re ti re ment
2030
(V THRX)
Vangua rd
Targe t
Re tire ment
2035
(VTTHX)
Organizati onal /Produ ct Is sues
No ma terial c hanges to investment team ++++++++
No ma terial o rganiza tional changes ++++++++
Accounting or regulatory concerns ++++++++
Cu rrently in adherence to guidelin es ++++++++
Po rt fo lio characteris tics me et stylis tic expectations ++++++++
Relative Perfor mance 1
Three-year return better than benchmark N/A N/A N/A N/A N/A N/A N/A N/A
Three-year rankin g better than peer group median +-++++++
Five year return better than benchmark N/A N/A N/A N/A N/A N/A N/A N/AFive year return better than benchmark N/A N/A N/A N/A N/A N/A N/A N/A
Five year rankin g better than peer group median ++++++++
Performance status ++++++++
Summar y s tatus ++++++++
1 Manager performance is evaluated net of investment management fees.
9
Pe rformance Summary
Manager Compliance Checklist (Continued)
As of March 31, 2015
Mana gers
Vanguard
Ta rge t
Re ti re ment
2040
(V FORX)
Vangua rd
Ta rget
Re ti re ment
2045
(V TIVX)
Va ngua rd
Targe t
Re ti re ment
2050
(V FIFX)
Vangua rd
Targe t
Re ti re ment
2055
(V FFVX)
Vangua rd
Ta rget
Re ti re ment
2060
(V TTSX)
Vangua rd
Prime Mone y
Marke t Fund
(V MMXX)
Organizational /Produ ct Is sues
No ma teria l c hanges to investment team ++++++
No ma teria l o rg aniza tional changes ++++++
Accounting or regulatory concerns ++++++
Cu rre ntly in adherence to guidelin es ++++++
Po rt fo lio characteris tics me et stylis tic expectations ++++++
Re lati ve Performanc e 1
Thre e-year re turn better than benchmark N/A N/A N/A N/A N/A N/A
Thre e-year ra nkin g better than peer group median +++++N/A
Fiv e year return better than benchmark N/A N/A N/A N/A N/A N/A
1 Manager performance is evaluated net of investment management fees.
Fiv e year return better than benchmark N/A N/A N/A N/A N/A N/A
Fiv e year rankin g better than peer group median +++N/A N/A N/A
Performance status ++++++
Summary status ++++++
10
Manager Compliance Checklist
First Quarter 2015
Manager
Compliance
Issue Explanation
Recommended
Ac tion Comments
Vanguard
U.S. Growth
&
International
Growth
Investment
Team
Changes
In February 2014, Vanguard announced
that the Vanguard Growth Equity Fund
merged with the Vanguard U.S. Growth
Fund. The merged fund will keep
Vanguard U.S. Growth Fund's current
sub advisors, Delaware, W ellington, and
William Blair, while adding Vanguard
Growth Equity Fund's sub advisors,
Baillie Gifford and Jennison, effectively
increasing the number of advisors from 3
to 5. Additionally, in October 2014,
Charles Anniss, CFA, replaced Greg
Aldridge as portfolio manager for the
portion of the International Growth Fund
managed by M&G Investment
Management Limited (M&G).
Hold The funds' multimanager approach and other portfolio
managers are unchanged. Pavilion will continue to monitor
the manager for further developments. There were no major
changes to the other investment options.
11
Plan Assets
12
Plan Summary
Deferred Compensation Plan Assets
As of March 31, 2015
Invest ment Options Investm ent Style Al location Percentage
Domestic Eq uity Funds
Vanguard 500 Index I nv US Large Cap Equit y -Core $ 6,898,173 14.1%$ 278,987 + 4.2%
Vanguard Windsor II Inv US Large Cap Equit y -Value $ 8,807,247 17.9%$ (205,184)- 2.3%
Vanguard US Growth Inv US Large Cap Equit y -Growth $ 4,526,300 9.2%$ 251,246 + 5.9%
Vanguard M id Cap Index I nv US Mid Cap Equit y -Core $ 2,567,371 5.2%$ (64,157)- 2.4%
Vanguard Small Cap Index Inv US Small Cap Equit y -Core $ 2,341,371 4.8%$ (129,930)- 5.3%
$ 25,140,462 51.2%$ 130,961 + 0.5%
International Equ ity Funds
Vanguard Internat ional Growth Internat ional Equity $ 2,228,761 4.5%$ 93,928 + 4.4%
$ 2,228,761 4.5%$ 93,928 + 4.4%
Fi xed I ncome/Alternative Fu nds
Vanguard T otal Bond M arket Index Inv Market Duration $ 2,388,945 4.9%$ 39,320 + 1.7%
Vanguard Retirement Savings Trust Short Durat ion $ 3,239,343 6.6%$ (301,696)- 8.5%
Vanguard Balanced Index Inv Balanced $ 4,161,290 8.5%$ 126,159 + 3.1%
$ 9,789,577 19.9%$ (136,217)- 1.4%
$ Change
From
Previous Qtr
% C hange
From
Pre vi ous Qtr
$ 9,789,577 19.9%$ (136,217)- 1.4%
Cash
Vanguard Prime M oney Market Cash $ 1,261,195 2.6%$ 88,136 + 7.5%
$ 1,261,195 2.6%$ 88,136 + 7.5%
Ta rge t Date Funds
Vanguard T arget Ret irement Income Inv Blend $ 331,576 0.7%$ 9,250 + 2.9%
Vanguard T arget Ret irement 2010 Inv Blend $ 555,862 1.1%$ (166,768)- 23.1%
Vanguard T arget Ret irement 2015 Inv Blend $ 966,858 2.0%$ 107,302 + 12.5%
Vanguard T arget Ret irement 2020 Inv Blend $ 2,071,855 4.2%$ 97,392 + 4.9%
Vanguard T arget Ret irement 2025 Inv Blend $ 2,147,643 4.4%$ 196,350 + 10.1%
Vanguard T arget Ret irement 2030 Inv Blend $ 969,935 2.0%$ (986)- 0.1%
Vanguard T arget Ret irement 2035 Inv Blend $ 979,326 2.0%$ 63,903 + 7.0%
Vanguard T arget Ret irement 2040 Inv Blend $ 589,356 1.2%$ 45,696 + 8.4%
Vanguard T arget Ret irement 2045 Inv Blend $ 574,836 1.2%$ 62,544 + 12.2%
Vanguard T arget Ret irement 2050 Inv Blend $ 212,263 0.4%$ 21,712 + 11.4%
Vanguard T arget Ret irement 2055 Inv Blend $ 23,355 0.0%$ 4,671 + 25.0%
Vanguard T arget Ret irement 2060 Inv Blend $ 18,364 0.0%$ 1,295 + 7.6%
9,441,231$ 19.2%442,361$ + 4.9%
Loan Fund
Loan Fund Loan Fund $ 1,218,881 2.5%$ 53,994 + 4.6%
TO TA L $ 49,080,107 100.0%$ 673,163 + 1.4%
13
Plan Summary
Fee Comparison Summary
As of March 31, 2015
Inv estment Option
Expe nse
Ratio
Morningstar
Cate gory
Av erage
Fe e Level
Comp arison
Group Median
eVestment
Al liance
Univ erse
Median Cate gory
Fe e Level Comp arison
Group
eVestment Alliance
Univ erse
Va nguard 500 In dex 0.17 0.58 0.94 0.15 La rg e Blend eVestment US Pa ssive La rg e Cap Equity
Va nguard US Gro wt h 0.44 0.81 0.94 0.83 La rge Gro wth La rg e Cap No Lo ad US Large Cap Gr owth
Va nguard Windsor 0.38 0.91 0.94 0.82 La rge Value La rg e Cap No Lo ad US Large Cap Va lu e
Va nguard Mid-Ca p Index 0.24 1.46 1.10 0.24 Mid Ble nd Mid Cap No Lo ad US Passive Mid Cap Equity
Va nguard Sma ll-Ca p Index 0.24 1.35 1.20 0.24 Small Ble nd Small Ca p No Load US Pas sive Sma ll Ca p Equity
Va nguard International Gr owth 0.47 N/A 1.08 1.09 Foreig n Large Gro wt h Foreign Large Cap No Lo ad ACWI ex-US Gro wt h Equity
Va nguard Total Bo nd Marke t Index 0.20 0.91 0.65 0.50 Interme diate-Term Bond Interme diate-Term Bond No Load US Co re Fixe d Income
Va nguard Retire me nt Saving Trust 0.53 N/A N/A 0.82 N/A N/A US St able Value Fixed Income
Va nguard Balanced Index 0.24 0.65 0.9 0.77 Moderate Allo cation Moderate Allo cation No Load US Ba la nced
Va nguard Target Retirement Income 0.16 0.48 0.76 0.46 Retire me nt Income Retire me nt Income No Load Li fecycle/Target Date Income
Va nguard Target Retirement 2010 0.16 0.54 0.67 0.55 Target Date 2000-2010 Target Retireme nt 2000-2010 No Lo ad Life cycle/Target Date 2010Vanguard Target Retirement 2010 0.16 0.54 0.67 0.55 Target Date 2000-2010 Target Retireme nt 2000-2010 No Lo ad Life cycle/Target Date 2010
Va nguard Target Retirement 2015 0.16 0.47 0.85 0.61 Target Date 2011-2015 Target Retireme nt 2011-2015 No Lo ad Life cycle/Target Date 2015
Va nguard Target Retirement 2020 0.16 0.49 0.78 0.62 Target Date 2016-2020 Target Retireme nt 2016-2020 No Lo ad Life cycle/Target Date 2020
Va nguard Target Retirement 2025 0.17 0.47 0.85 0.64 Target Date 2021-2025 Target Retireme nt 2021-2025 No Lo ad Life cycle/Target Date 2025
Va nguard Target Retirement 2030 0.17 0.49 0.82 0.65 Target Date 2026-2030 Target Retireme nt 2026-2030 No Lo ad Life cycle/Target Date 2030
Va nguard Target Retirement 2035 0.18 0.47 0.90 0.65 Target Date 2031-2035 Target Retireme nt 3031-2035 No Lo ad Life cycle/Target Date 2035
Va nguard Target Retirement 2040 0.18 0.49 0.88 0.67 Target Date 2036-2040 Target Retireme nt 2036-2040 No Lo ad Life cycle/Target Date 2040
Va nguard Target Retirement 2045 0.18 0.47 0.94 0.67 Target Date 2041-2045 Target Retireme nt 2041-2045 No Lo ad Life cycle/Target Date 2045
Va nguard Target Retirement 2050 0.18 0.48 0.84 0.67 Target Date 2046-2050 Target Retireme nt 2046-2050 No Lo ad Life cycle/Target Date 2050
Va nguard Target Retirement 2055 0.18 0.46 0.93 0.46 Target Date 2051+Target Retireme nt 2051+ No Lo ad Life cycle/Target Date 2055
Va nguard Target Retirement 2060 0.18 0.46 0.93 N/A Target Date 2051+Target Retireme nt 2051+ No Lo ad N/A
Va nguard Prime Money Marke t 0.16 0.11 N/A 0.19 Money Marke t Taxable N/A US Cash Management
14
Manager Evaluation
15
Historical Performance
Three Year Rolling Percentile Ranking Relative Performance
Historical Statistics (Apr-2010 - Mar-2015)
Quarter
Year
To
Date
1
Year
3
Years
5
Years
10
Years 2014 2013 2012 2011 2010 2009 2008 2007 2006 2005
Vanguard 500 Index Fund (VFINX)0.9 0.9 12.6 15.9 14.3 7.9 13.5 32.2 15.8 2.0 14.9 26.5 -37.0 5.4 15.6 4.8
S&P 500 1.0 1.0 12.7 16.1 14.5 8.0 13.7 32.4 16.0 2.1 15.1 26.5 -37.0 5.5 15.8 4.9
Large-Cap Equity Peer Group Median 1.5 1.5 10.3 14.8 13.1 7.7 10.3 32.4 14.6 -1.0 14.0 27.8 -37.5 6.2 13.3 5.9
Vanguard 500 Index Fund (VFINX) Rank 64 64 31 30 29 44 17 52 38 23 40 57 46 56 33 63
Vanguard 500 Index Fund (VFINX)S&P 500
0
25
50
75
100Return Percentile Rank6/05 6/06 6/07 6/08 6/09 6/10 6/11 6/12 6/13 6/14 3/15 Cumulative Annualized Over/Under Relative Performance
Over/Under Performance
0.0
0.2
-0.2
-0.4Return (%)6/05 6/06 6/07 6/08 6/09 6/10 6/11 6/12 6/13 6/14 3/15
Return
Standard
Deviation
Excess
Return Alpha Beta
Sharpe
Ratio
Tracking
Error
Information
Ratio
Downside
Risk Consistency
Inception
Date
Vanguard 500 Index Fund (VFINX)14.3 14.1 14.5 -0.1 1.0 1.0 0.0 -12.8 8.2 0.0 38y 7m
S&P 500 14.5 14.1 14.7 0.0 1.0 1.0 0.0 N/A 8.1 0.0 38y 7m
90 Day U.S. Treasury Bill 0.1 0.0 0.0 0.1 0.0 N/A 14.1 -1.0 0.0 20.0 38y 7m
Manager Evaluation
Vanguard 500 Index Fund (VFINX) vs. S&P 500
As of March 31, 2015
16
Portfolio Characteristics
Portfolio Benchmark
Wtd. Avg. Mkt. Cap ($M)133,585 134,167
Median Mkt. Cap ($M)18,789 18,772
Price/Earnings ratio 19.2 19.2
Price/Book ratio 3.1 3.1
5 Yr. EPS Growth Rate (%)13.4 13.4
Current Yield (%)2.0 2.0
Debt to Equity 1.2 1.2
Number of Stocks 506 502
Beta (5 Years, Monthly)1.00 1.00
Consistency (5 Years, Monthly)0.00 1.00
Sharpe Ratio (5 Years, Monthly)1.10 1.11
Information Ratio (5 Years, Monthly)-10.29 -
Up Market Capture (5 Years, Monthly)99.60 -
Down Market Capture (5 Years, Monthly)100.40 -
Top Ten Equity Holdings
Portfolio
Weight
(%)
Benchmark
Weight
(%)
Active
Weight
(%)
Quarterly
Return
(%)
Apple Inc 3.9 4.0 0.0 13.2
Exxon Mobil Corp 1.9 2.0 0.0 -7.4
Microsoft Corp 1.8 1.8 0.0 -11.9
Johnson & Johnson 1.5 1.5 0.0 -3.1
Wells Fargo & Co 1.4 1.4 0.0 -0.1
General Electric Co 1.4 1.4 0.0 -0.9
Berkshire Hathaway Inc 1.3 1.4 -0.1 -3.9
JPMorgan Chase & Co 1.2 1.2 0.0 -2.6
Procter & Gamble Co (The)1.2 1.2 0.0 -9.4
Pfizer Inc 1.2 1.2 0.0 12.7
% of Portfolio 16.9 17.1
Distribution of Market Capitalization (%)
Vanguard 500 Index Fund (VFINX)S&P 500
0.0
15.0
30.0
45.0
60.0
>$75 Bil $20 Bil -
$75 Bil
$5 Bil -
$20 Bil
$0 -
$5 Bil
Cash
50.2
34.1
15.2
0.4 0.0
50.0
34.0
15.2
0.4 0.4
Sector Weights (%)
Vanguard 500 Index Fund (VFINX)S&P 500
0.0 5.0 10.0 15.0 20.0 25.0
Cash
Utilities
Telecommunication Services
Materials
Information Technology
Industrials
Health Care
Financials
Energy
Consumer Staples
Consumer Discretionary
0.4
3.0
2.3
3.1
19.6
10.3
14.9
16.1
8.0
9.7
12.5
0.0
3.0
2.3
3.2
19.7
10.4
14.9
16.2
8.0
9.7
12.6
Manager Evaluation
Vanguard 500 Index Fund (VFINX) vs. S&P 500
As of March 31, 2015
17
Historical Performance
Buy and Hold Attribution
Risk and Return (Apr - 2010 - Mar - 2015)Three Year Rolling Percentile Ranking
Quarter
Year
To
Date
1
Year
3
Years
5
Years
10
Years 2014 2013 2012 2011 2010 2009 2008 2007 2006 2005
Vanguard Windsor II (VWNFX)-0.1 -0.1 8.0 14.7 12.7 7.2 11.2 30.7 16.7 2.7 10.6 27.1 -36.7 2.2 18.2 7.0
Russell 1000 Value Index -0.7 -0.7 9.3 16.4 13.8 7.2 13.5 32.5 17.5 0.4 15.5 19.7 -36.8 -0.2 22.2 7.1
Large-Cap Value Equity Peer Group Median 0.8 0.8 8.5 14.7 12.5 7.0 10.2 31.7 15.0 -1.5 13.5 25.4 -37.3 2.9 16.6 6.1
Vanguard Windsor II (VWNFX) Rank 71 71 57 51 48 46 37 62 29 17 86 42 45 56 36 38
Vanguard Windsor II (VWNFX)Russell 1000 Value Index
0
25
50
75
100Return Percentile Rank6/05 6/06 6/07 6/08 6/09 6/10 6/11 6/12 6/13 6/14 3/15 10.8
11.7
12.6
13.5
14.4
15.3
Return (%)14.5 14.6 14.7
Risk (Standard Deviation %)
Russell 1000 Value Index
Vanguard Windsor II (VWNFX)
Average Active Weight
0.0 8.0 16.0-8.0-16.0
Utilities
Telecommunication Services
Other
Materials
Information Technology
Industrials
Health Care
Financials
Energy
Consumer Staples
Consumer Discretionary
Cash
-2.6
0.4
0.3
-1.5
3.9
-1.1
3.3
-7.9
-2.6
1.4
4.2
2.2
Allocation
(Total: 0.5)
0.0 0.3 0.6-0.3-0.6
0.1
0.0
0.0
0.0
-0.2
0.0
0.3
0.0
0.1
0.0
0.2
0.0
Stock
(Total: 0.2)
0.0 0.5 1.0-0.5-1.0
0.0
0.1
0.0
-0.1
0.2
-0.1
0.2
-0.6
0.3
0.1
0.1
0.0
Vanguard Windsor II (VWNFX)
0.0 0.5 1.0-0.5-1.0-1.5
0.1
0.1
0.0
-0.1
0.0
-0.1
0.5
-0.5
0.4
0.1
0.3
0.0
Manager Evaluation
Vanguard Windsor II (VWNFX) vs. Russell 1000 Value Index
As of March 31, 2015
Differences between the manager return and the attribution return are due primarily to the effects of fees and portfolio trading.
18
Portfolio Characteristics
Portfolio Benchmark
Wtd. Avg. Mkt. Cap ($M)105,759 107,001
Median Mkt. Cap ($M)22,394 7,600
Price/Earnings ratio 16.3 17.3
Price/Book ratio 2.5 2.1
5 Yr. EPS Growth Rate (%)10.4 8.1
Current Yield (%)2.5 2.4
Debt to Equity 1.5 1.4
Number of Stocks 267 700
Beta (5 Years, Monthly)0.99 1.00
Consistency (5 Years, Monthly)43.33 1.00
Sharpe Ratio (5 Years, Monthly)0.96 1.03
Information Ratio (5 Years, Monthly)-0.44 -
Up Market Capture (5 Years, Monthly)96.50 -
Down Market Capture (5 Years, Monthly)100.09 -
Top Ten Equity Holdings
Portfolio
Weight
(%)
Benchmark
Weight
(%)
Active
Weight
(%)
Quarterly
Return
(%)
Pfizer Inc 2.9 2.2 0.7 12.7
Medtronic PLC 2.9 1.1 1.8 8.4
JPMorgan Chase & Co 2.7 2.3 0.5 -2.6
Microsoft Corp 2.6 1.2 1.4 -11.9
Wells Fargo & Co 2.5 2.6 -0.1 -0.1
Citigroup Inc 2.2 1.5 0.7 -4.8
Target Corp 2.2 0.5 1.7 8.9
PNC Financial Services Group Inc.2.1 0.5 1.6 2.8
General Dynamics Corp 2.1 0.4 1.7 -0.9
Anthem Inc 2.1 0.4 1.6 23.4
% of Portfolio 24.1 12.6
Distribution of Market Capitalization (%)
Vanguard Windsor II (VWNFX)Russell 1000 Value Index
0.0
15.0
30.0
45.0
60.0
>$75 Bil $20 Bil -
$75 Bil
$5 Bil -
$20 Bil
$0 -
$5 Bil
Cash
43.5
29.8
21.1
5.6
0.0
47.4
33.2
13.4
2.9 3.1
Sector Weights (%)
Vanguard Windsor II (VWNFX)Russell 1000 Value Index
0.0 8.0 16.0 24.0 32.0 40.0
Other
Cash
Utilities
Telecommunication Services
Materials
Information Technology
Industrials
Health Care
Financials
Energy
Consumer Staples
Consumer Discretionary
0.3
3.1
3.2
2.6
0.6
13.2
9.2
16.7
21.6
9.0
8.6
11.8
0.0
0.0
6.2
2.1
3.1
9.0
10.2
14.7
29.8
10.9
7.2
6.9
Manager Evaluation
Vanguard Windsor II (VWNFX) vs. Russell 1000 Value Index
As of March 31, 2015
19
Historical Performance
Buy and Hold Attribution
Risk and Return (Apr - 2010 - Mar - 2015)Three Year Rolling Percentile Ranking
Quarter
Year
To
Date
1
Year
3
Years
5
Years
10
Years 2014 2013 2012 2011 2010 2009 2008 2007 2006 2005
Vanguard US Growth (VWUSX)4.5 4.5 17.3 17.0 15.3 8.8 13.1 35.5 18.4 -0.7 11.5 35.0 -37.8 10.1 1.8 11.2
Russell 1000 Growth Index 3.8 3.8 16.1 16.3 15.6 9.4 13.1 33.5 15.3 2.6 16.7 37.2 -38.4 11.8 9.1 5.3
Large-Cap Growth Equity Peer Group Median 3.4 3.4 14.0 15.1 14.2 8.6 10.5 34.6 14.6 -0.8 15.3 33.4 -38.3 13.8 7.1 6.2
Vanguard US Growth (VWUSX) Rank 33 33 17 20 28 47 24 41 16 48 83 40 46 75 90 17
Vanguard US Growth (VWUSX)Russell 1000 Growth Index
0
25
50
75
100Return Percentile Rank6/05 6/06 6/07 6/08 6/09 6/10 6/11 6/12 6/13 6/14 3/15 14.8
15.2
15.6
16.0
16.4
Return (%)13.2 13.8 14.4 15.0 15.6 16.2 16.8 17.4
Risk (Standard Deviation %)
Russell 1000 Growth Index
Vanguard US Growth (VWUSX)
Average Active Weight
0.0 8.0 16.0-8.0-16.0
Utilities
Telecommunication Services
Other
Materials
Information Technology
Industrials
Health Care
Financials
Energy
Consumer Staples
Consumer Discretionary
Cash
-0.1
-1.6
0.0
-2.1
5.0
-6.1
1.4
2.2
-0.2
-3.5
2.6
2.4
Allocation
(Total: 0.2)
0.0 0.2 0.4-0.2-0.4
0.0
0.0
0.0
0.0
0.0
0.2
0.0
-0.1
0.0
0.0
0.0
-0.1
Stock
(Total: 0.2)
0.0 0.6 1.2-0.6-1.2
0.0
0.0
0.0
0.1
-0.6
0.0
0.3
0.2
0.0
0.1
0.0
0.0
Vanguard US Growth (VWUSX)
0.0 0.4 0.8-0.4-0.8-1.2
0.0
0.0
0.0
0.1
-0.6
0.2
0.4
0.1
0.0
0.1
0.0
-0.1
Manager Evaluation
Vanguard US Growth (VWUSX) vs. Russell 1000 Growth Index
As of March 31, 2015
Differences between the manager return and the attribution return are due primarily to the effects of fees and portfolio trading.
20
Portfolio Characteristics
Portfolio Benchmark
Wtd. Avg. Mkt. Cap ($M)104,931 130,254
Median Mkt. Cap ($M)23,242 9,154
Price/Earnings ratio 26.2 21.8
Price/Book ratio 4.9 5.3
5 Yr. EPS Growth Rate (%)19.8 18.8
Current Yield (%)1.1 1.5
Debt to Equity 3.6 1.4
Number of Stocks 161 679
Beta (5 Years, Monthly)1.10 1.00
Consistency (5 Years, Monthly)51.67 1.00
Sharpe Ratio (5 Years, Monthly)1.03 1.16
Information Ratio (5 Years, Monthly)-0.02 -
Up Market Capture (5 Years, Monthly)106.03 -
Down Market Capture (5 Years, Monthly)114.71 -
Top Ten Equity Holdings
Portfolio
Weight
(%)
Benchmark
Weight
(%)
Active
Weight
(%)
Quarterly
Return
(%)
Apple Inc 4.4 6.8 -2.5 13.2
MasterCard Inc 3.5 0.8 2.7 0.5
Celgene Corp 2.7 0.8 1.9 3.1
Priceline Group Inc (The)2.4 0.6 1.9 2.1
Microsoft Corp 2.4 2.0 0.4 -11.9
Google Inc (Class C)2.2 1.4 0.7 4.1
Walgreens Boots Alliance Inc 2.1 0.6 1.5 11.6
Home Depot Inc. (The)1.9 1.4 0.5 8.8
eBay Inc.1.8 0.7 1.2 2.8
Qualcomm Inc.1.7 1.1 0.7 -6.2
% of Portfolio 25.1 16.1
Distribution of Market Capitalization (%)
Vanguard US Growth (VWUSX)Russell 1000 Growth Index
0.0
15.0
30.0
45.0
60.0
>$75 Bil $20 Bil -
$75 Bil
$5 Bil -
$20 Bil
$0 -
$5 Bil
Cash
44.7
31.7
20.3
3.3
0.0
38.0
32.9
23.1
2.2 3.8
Sector Weights (%)
Vanguard US Growth (VWUSX)Russell 1000 Growth Index
0.0 8.0 16.0 24.0 32.0 40.0
Other
Cash
Utilities
Telecommunication Services
Materials
Information Technology
Industrials
Health Care
Financials
Energy
Consumer Staples
Consumer Discretionary
0.0
3.8
0.0
0.5
1.4
33.4
5.8
14.7
7.7
4.6
7.1
21.0
0.0
0.0
0.1
2.2
3.9
28.6
11.9
14.3
5.2
4.5
10.6
18.8
Manager Evaluation
Vanguard US Growth (VWUSX) vs. Russell 1000 Growth Index
As of March 31, 2015
21
Historical Performance
Three Year Rolling Percentile Ranking Relative Performance
Historical Statistics (Apr-2010 - Mar-2015)
Quarter
Year
To
Date
1
Year
3
Years
5
Years
10
Years 2014 2013 2012 2011 2010 2009 2008 2007 2006 2005
Vanguard Mid-Cap Index Fund (VIMSX)4.2 4.2 14.7 17.8 15.9 9.8 13.6 35.0 15.8 -2.1 25.5 40.2 -41.8 6.0 13.6 13.9
Vanguard Mid-Cap Index Fund Blended Benchmark 4.3 4.3 15.0 18.1 16.2 10.0 13.8 35.4 16.0 -1.9 25.7 40.5 -41.8 6.2 13.7 13.9
Mid-Cap Equity Equity Peer Group Median 3.8 3.8 8.5 15.1 14.3 9.1 6.2 34.6 14.6 -2.7 21.8 34.2 -40.2 8.1 11.9 9.4
Vanguard Mid-Cap Index Fund (VIMSX) Rank 44 44 10 16 20 31 7 48 40 45 26 32 61 59 38 17
Vanguard Mid-Cap Index Fund (VIMSX)
Vanguard Mid-Cap Index Fund Blended Benchmark
0
25
50
75
100Return Percentile Rank6/05 6/06 6/07 6/08 6/09 6/10 6/11 6/12 6/13 6/14 3/15
Cumulative Annualized Over/Under Relative Performance
Over/Under Performance
0.0
0.2
0.4
-0.2
-0.4Return (%)6/05 6/06 6/07 6/08 6/09 6/10 6/11 6/12 6/13 6/14 3/15
Return
Standard
Deviation
Excess
Return Alpha Beta
Sharpe
Ratio
Tracking
Error
Information
Ratio
Downside
Risk Consistency
Inception
Date
Vanguard Mid-Cap Index Fund (VIMSX)15.9 16.3 16.3 -0.2 1.0 1.0 0.1 -3.6 9.9 0.0 16y 10m
Vanguard Mid-Cap Index Fund Blended Benchmark 16.2 16.3 16.6 0.0 1.0 1.0 0.0 N/A 9.9 0.0 16y 10m
90 Day U.S. Treasury Bill 0.1 0.0 0.0 0.1 0.0 N/A 16.3 -1.0 0.0 25.0 16y 10m
Manager Evaluation
Vanguard Mid-Cap Index Fund (VIMSX) vs. Vanguard Mid-Cap Index Fund Blended Benchmark
As of March 31, 2015
Note: Prior to May 16, 2003, the Vanguard Mid-Cap Index was benchmarked to the S&P MidCap 400 Index. From May 16, 2003 to January 30, 2013, the Index
fund was benchmarked to the MSCI US Mid Cap 450 Index. Starting on January 31, 2013, the benchmark transitioned to the CRSP US Mid Cap Index.
22
Portfolio Characteristics
Portfolio Benchmark
Wtd. Avg. Mkt. Cap ($M)12,561 12,559
Median Mkt. Cap ($M)9,482 9,482
Price/Earnings ratio 22.2 22.2
Price/Book ratio 3.3 3.3
5 Yr. EPS Growth Rate (%)15.8 15.8
Current Yield (%)1.4 1.4
Debt to Equity 2.9 2.9
Number of Stocks 367 365
Beta (5 Years, Monthly)1.02 1.00
Consistency (5 Years, Monthly)31.67 1.00
Sharpe Ratio (5 Years, Monthly)1.08 1.13
Information Ratio (5 Years, Monthly)-0.62 -
Up Market Capture (5 Years, Monthly)99.77 -
Down Market Capture (5 Years, Monthly)102.84 -
Top Ten Equity Holdings
Portfolio
Weight
(%)
Benchmark
Weight
(%)
Active
Weight
(%)
Quarterly
Return
(%)
AmerisourceBergen Corp 0.7 0.7 0.0 26.4
Boston Scientific Corp 0.7 0.7 0.0 34.0
Delphi Automotive PLC 0.7 0.7 0.0 10.0
AvalonBay Communities Inc.0.7 0.7 0.0 7.4
Cerner Corp 0.7 0.7 0.0 13.3
Moody's Corp.0.6 0.6 0.0 8.7
Monster Beverage Corp 0.6 0.6 0.0 27.7
Ross Stores Inc 0.6 0.6 0.0 12.0
O'Reilly Automotive Inc 0.6 0.6 0.0 12.3
Chipotle Mexican Grill Inc 0.6 0.6 0.0 -5.0
% of Portfolio 6.6 6.5
Distribution of Market Capitalization (%)
Vanguard Mid-Cap Index Fund (VIMSX)
CRSP U.S. Mid Cap TR Index
0.0
50.0
100.0
150.0
$20 Bil -
$75 Bil
$5 Bil -
$20 Bil
$0 -
$5 Bil
11.2
86.4
2.4
11.2
86.4
2.4
Sector Weights (%)
Vanguard Mid-Cap Index Fund (VIMSX)
CRSP U.S. Mid Cap TR Index
0.0 5.0 10.0 15.0 20.0 25.0
Utilities
Telecommunication Services
Materials
Information Technology
Industrials
Health Care
Financials
Energy
Consumer Staples
Consumer Discretionary
5.0
1.2
6.3
14.8
12.1
12.0
17.0
6.2
5.9
19.5
5.0
1.2
6.3
14.8
12.0
12.2
17.0
6.2
5.8
19.5
Manager Evaluation
Vanguard Mid-Cap Index Fund (VIMSX) vs. CRSP U.S. Mid Cap TR Index
As of March 31, 2015
23
Historical Performance
Three Year Rolling Percentile Ranking Relative Performance
Historical Statistics (Apr-2010 - Mar-2015)
Quarter
Year
To
Date
1
Year
3
Years
5
Years
10
Years 2014 2013 2012 2011 2010 2009 2008 2007 2006 2005
Vanguard Small-Cap Index Fund (NAESX)4.8 4.8 9.7 17.4 15.6 9.9 7.4 37.6 18.0 -2.8 27.7 36.1 -36.1 1.2 15.6 7.4
Vanguard Small-Cap Index Fund Blended Benchmark 4.8 4.8 9.8 17.6 15.8 10.0 7.5 37.8 18.2 -2.8 27.8 36.1 -36.2 1.2 15.8 7.5
Small-Cap Equity Peer Group Median 3.7 3.7 6.0 15.1 14.2 8.2 3.5 39.0 14.6 -3.4 26.4 31.8 -38.2 0.3 13.5 6.3
Vanguard Small-Cap Index Fund (NAESX) Rank 34 34 23 26 28 13 13 59 24 46 39 34 41 47 37 40
Vanguard Small-Cap Index Fund (NAESX)
Vanguard Small-Cap Index Fund Blended Benchmark
0
25
50
75
100Return Percentile Rank6/05 6/06 6/07 6/08 6/09 6/10 6/11 6/12 6/13 6/14 3/15
Cumulative Annualized Over/Under Relative Performance
Over/Under Performance
0.0
0.2
0.4
-0.2
-0.4Return (%)6/05 6/06 6/07 6/08 6/09 6/10 6/11 6/12 6/13 6/14 3/15
Return
Standard
Deviation
Excess
Return Alpha Beta
Sharpe
Ratio
Tracking
Error
Information
Ratio
Downside
Risk Consistency
Inception
Date
Vanguard Small-Cap Index Fund (NAESX)15.6 17.8 16.4 -0.1 1.0 0.9 0.0 -3.4 11.0 10.0 47y 2m
Vanguard Small-Cap Index Fund Blended Benchmark 15.8 17.8 16.5 0.0 1.0 0.9 0.0 N/A 11.0 0.0 47y 2m
90 Day U.S. Treasury Bill 0.1 0.0 0.0 0.1 0.0 N/A 17.8 -0.9 0.0 25.0 47y 2m
Manager Evaluation
Vanguard Small-Cap Index Fund (NAESX) vs. Vanguard Small-Cap Index Fund Blended Benchmark
As of March 31, 2015
Note: Prior to May 16, 2003, the Vanguard Small-Cap Index was benchmarked to the Russell 2000 Index. From May 16, 2003 to January 30, 2013, the Index
fund was benchmarked to the MSCI US Small Cap 1750 Index. Starting on January 31, 2013, the benchmark transitioned to the CRSP US Small Cap Index.
24
Portfolio Characteristics
Portfolio Benchmark
Wtd. Avg. Mkt. Cap ($M)3,673 3,673
Median Mkt. Cap ($M)1,900 1,901
Price/Earnings ratio 20.6 20.6
Price/Book ratio 2.7 2.7
5 Yr. EPS Growth Rate (%)14.6 14.6
Current Yield (%)1.4 1.4
Debt to Equity 0.5 0.5
Number of Stocks 1,481 1,472
Beta (5 Years, Monthly)1.02 1.00
Consistency (5 Years, Monthly)28.33 1.00
Sharpe Ratio (5 Years, Monthly)0.95 1.00
Information Ratio (5 Years, Monthly)-0.60 -
Up Market Capture (5 Years, Monthly)100.17 -
Down Market Capture (5 Years, Monthly)103.45 -
Top Ten Equity Holdings
Portfolio
Weight
(%)
Benchmark
Weight
(%)
Active
Weight
(%)
Quarterly
Return
(%)
Cooper Companies Inc. (The)0.3 0.3 0.0 15.6
Alaska Air Group Inc.0.3 0.3 0.0 11.1
Snap-On Inc 0.3 0.3 0.0 7.9
Rite Aid Corp.0.3 0.3 0.0 15.6
Gannett Co Inc.0.3 0.3 0.0 16.8
E*TRADE Financial Corporation 0.3 0.3 0.0 17.7
WhiteWave Foods Co (The)0.3 0.3 0.0 26.7
Arthur J. Gallagher & Co.0.3 0.3 0.0 0.1
Packaging Corp Of America 0.3 0.3 0.0 0.9
United Therapeutics Corp 0.3 0.3 0.0 33.2
% of Portfolio 2.8 2.7
Distribution of Market Capitalization (%)
Vanguard Small-Cap Index (NAESX)
CRSP U.S. Small Cap TR Index
0.0
25.0
50.0
75.0
100.0
$5 Bil -
$20 Bil
$0 -
$5 Bil
23.7
76.3
23.8
76.2
Sector Weights (%)
Vanguard Small-Cap Index (NAESX)
CRSP U.S. Small Cap TR Index
0.0 6.0 12.0 18.0 24.0 30.0
Utilities
Telecommunication Services
Materials
Information Technology
Industrials
Health Care
Financials
Energy
Consumer Staples
Consumer Discretionary
3.8
0.3
5.3
17.0
15.6
11.8
24.4
4.0
3.2
14.7
3.8
0.3
5.3
16.9
15.6
11.7
24.5
4.0
3.2
14.7
Manager Evaluation
Vanguard Small-Cap Index (NAESX) vs. CRSP U.S. Small Cap TR Index
As of March 31, 2015
25
Historical Performance
Buy and Hold Attribution
Risk and Return (Apr - 2010 - Mar - 2015)Three Year Rolling Percentile Ranking
Quarter
Year
To
Date
1
Year
3
Years
5
Years
10
Years 2014 2013 2012 2011 2010 2009 2008 2007 2006 2005
Vanguard International Growth (VWIGX)5.5 5.5 0.3 8.8 7.4 6.8 -5.6 22.9 20.0 -13.7 15.7 41.6 -44.9 16.0 25.9 15.0
MSCI AC World ex USA (Net)3.5 3.5 -1.0 6.4 4.8 5.5 -3.9 15.3 16.8 -13.7 11.2 41.4 -45.5 16.7 26.7 16.6
International Equity Peer Group Median 4.8 4.8 -1.3 8.2 6.3 5.3 -5.3 20.8 18.4 -13.7 11.6 33.5 -44.4 11.9 25.2 15.0
Vanguard International Growth (VWIGX) Rank 35 35 34 39 29 26 55 31 32 51 25 23 54 28 43 50
Vanguard International Growth (VWIGX)MSCI AC World ex USA (Net)
0
25
50
75
100Return Percentile Rank6/05 6/06 6/07 6/08 6/09 6/10 6/11 6/12 6/13 6/14 3/15 0.0
3.0
6.0
9.0
12.0
Return (%)14.7 15.4 16.1 16.8 17.5 18.2 18.9 19.6 20.3
Risk (Standard Deviation %)
MSCI AC World ex USA (Net)
Vanguard International Growth (VWIGX)
Average Active Weight
0.0 8.0 16.0-8.0-16.0
Utilities
Telecommunication Services
Materials
Information Technology
Industrials
Health Care
Financials
Energy
Consumer Staples
Consumer Discretionary
Cash
-3.3
-1.4
-2.2
8.5
1.9
-1.2
-3.1
-4.8
-4.2
7.8
2.0
Allocation
(Total: 1.2)
0.0 0.3 0.6-0.3-0.6
0.3
0.0
0.0
0.3
0.0
-0.1
0.0
0.4
0.0
0.3
-0.1
Stock
(Total: 1.1)
0.0 1.0 2.0-1.0-2.0
0.0
0.0
-0.1
-0.8
0.6
0.1
0.1
0.0
0.0
1.2
0.0
0.0 0.7 1.4 2.1 2.8-0.7-1.4
0.3
0.0
0.0
-0.4
0.6
0.1
0.2
0.4
0.0
1.5
-0.1
Manager Evaluation
Vanguard International Growth (VWIGX) vs. MSCI AC World ex USA (Net)
As of March 31, 2015
Differences between the manager return and the attribution return are due primarily to the effects of fees and portfolio trading.
26
Total Attribution
0.0 0.2 0.4 0.6 0.8 1.0 1.2 1.4-0.2-0.4-0.6
Pacific
Other
North America
Middle East
Frontier Markets
Europe ex EMU
EMU
EM Latin America
EM Europe + Middle East + Africa
EM Asia
Cash
0.0
0.0
0.8
0.0
-0.1
0.6
0.8
0.0
-0.2
0.5
-0.1
Performance Attribution
Average Active Weight
0.0 5.0 10.0 15.0-5.0-10.0-15.0
Pacific
Other
North America
Middle East
Frontier Markets
Europe ex EMU
EMU
EM Latin America
EM Europe + Middle East + Africa
EM Asia
Cash
-6.0
0.0
-4.2
0.7
0.7
5.1
2.8
-0.8
-2.2
1.7
2.0
Allocation
(Total: 0.2)
0.0 0.3 0.6 0.9-0.3-0.6
-0.3
0.0
0.4
0.0
-0.1
-0.1
0.1
0.1
0.0
0.0
-0.1
Stock
(Total: 2.2)
0.0 0.4 0.8 1.2 1.6-0.4-0.8
0.3
0.0
0.4
-0.1
0.0
0.7
0.7
-0.1
-0.2
0.4
0.0
Manager Evaluation
Vanguard International Growth (VWIGX) vs. MSCI AC World ex USA (Net)
1 Quarter Ending March 31, 2015
27
Portfolio Characteristics
Portfolio Benchmark
Wtd. Avg. Mkt. Cap ($M)56,101 57,202
Median Mkt. Cap ($M)22,223 7,239
Price/Earnings ratio 19.5 16.2
Price/Book ratio 2.9 2.2
5 Yr. EPS Growth Rate (%)21.0 12.0
Current Yield (%)1.8 2.8
Debt to Equity 1.1 1.0
Number of Stocks 175 1,841
Beta (5 Years, Monthly)1.07 1.00
Consistency (5 Years, Monthly)55.00 1.00
Sharpe Ratio (5 Years, Monthly)0.49 0.37
Information Ratio (5 Years, Monthly)0.78 -
Up Market Capture (5 Years, Monthly)109.39 -
Down Market Capture (5 Years, Monthly)97.65 -
Top Ten Equity Holdings
Portfolio
Weight
(%)
Benchmark
Weight
(%)
Active
Weight
(%)
Quarterly
Return
(%)
Tencent Holdings LTD 3.3 0.5 2.7 30.9
AIA Group Ltd 3.0 0.4 2.6 13.1
Fiat Chrysler Automobiles NV 2.7 0.1 2.6 40.1
Baidu Inc 2.4 0.0 2.4 -8.6
Arm Holdings PLC 2.1 0.1 1.9 5.7
Industria De Diseno Textil Inditex SA 2.1 0.2 1.9 11.9
Softbank Corp 2.0 0.3 1.7 -2.9
Smc Corp 1.9 0.1 1.9 12.4
Amazon.com Inc 1.8 0.0 1.8 19.9
Rakuten Inc 1.6 0.1 1.5 25.9
% of Portfolio 22.8 1.8
Distribution of Market Capitalization (%)
Vanguard International Growth (VWIGX)
MSCI AC World ex USA (Net)
0.0
15.0
30.0
45.0
60.0
>$75 Bil $20 Bil -
$75 Bil
$5 Bil -
$20 Bil
$0 -
$5 Bil
Cash
25.4
37.5
30.1
6.9
0.0
25.6
42.7
25.4
4.4 1.9
Sector Weights (%)
Vanguard International Growth (VWIGX)
MSCI AC World ex USA (Net)
0.0 8.0 16.0 24.0 32.0 40.0
Cash
Utilities
Telecommunication Services
Materials
Information Technology
Industrials
Health Care
Financials
Energy
Consumer Staples
Consumer Discretionary
1.9
0.3
3.5
5.0
15.4
13.6
8.4
24.6
2.6
5.5
19.3
0.0
3.4
5.1
7.6
7.8
11.1
9.1
27.3
6.9
9.9
11.8
Manager Evaluation
Vanguard International Growth (VWIGX) vs. MSCI AC World ex USA (Net)
As of March 31, 2015
28
Vanguard
International Growth
(VWIGX)
MSCI AC World ex
USA (Net)
Australia 1.3 5.2
Hong Kong 5.5 3.8
Japan 12.3 15.9
New Zealand 0.0 0.1
Singapore 0.4 1.1
Pacific 19.5 26.2
Austria 0.0 0.1
Belgium 0.0 0.9
Finland 0.6 0.6
France 6.5 6.6
Germany 6.4 6.8
Ireland 0.8 0.2
Italy 4.9 1.6
Netherlands 1.2 2.1
Portugal 0.2 0.1
Spain 5.2 2.5
EMU 25.8 21.8
Denmark 2.0 1.2
Norway 1.3 0.5
Sweden 5.8 2.2
Switzerland 6.6 6.7
United Kingdom 13.3 14.2
Europe ex EMU 28.9 24.7
Canada 1.7 6.8
United States 1.9 0.0
Israel 1.1 0.4
Middle East 1.1 0.4
Developed Markets 78.9 79.9
Vanguard
International Growth
(VWIGX)
MSCI AC World ex
USA (Net)
Brazil 0.9 1.6
Cayman Islands 0.0 0.0
Chile 0.2 0.3
Colombia 0.0 0.1
Mexico 0.3 1.0
Peru 0.8 0.1
Virgin Islands 0.0 0.0
EM Latin America 2.1 3.1
China 8.2 3.4
India 2.5 1.6
Indonesia 0.3 0.6
Korea 2.2 3.2
Malaysia 0.0 0.8
Philippines 0.0 0.3
Taiwan 1.0 2.8
Thailand 0.7 0.5
EM Asia 14.9 13.1
Czech Republic 0.0 0.0
Egypt 0.0 0.1
Greece 0.0 0.1
Hungary 0.0 0.0
Poland 0.0 0.3
Qatar 0.0 0.2
Russia 0.3 0.8
South Africa 0.1 1.7
Turkey 0.8 0.3
United Arab Emirates 0.0 0.1
EM Europe + Middle East + Africa 1.2 3.7
Emerging Markets 18.2 19.9
Frontier Markets 0.7 0.0
Cash 1.9 0.0
Other 0.3 0.2
Total 100.0 100.0
Manager Evaluation
Vanguard International Growth (VWIGX) vs. MSCI AC World ex USA (Net)
As of March 31, 2015
29
Historical Performance
Three Year Rolling Percentile Ranking Relative Performance
Historical Statistics (Apr-2010 - Mar-2015)
Quarter
Year
To
Date
1
Year
3
Years
5
Years
10
Years 2014 2013 2012 2011 2010 2009 2008 2007 2006 2005
Vanguard Total Bond Market Index Fund (VBMFX)1.6 1.6 5.5 2.9 4.2 4.8 5.8 -2.3 4.0 7.6 6.4 5.9 5.1 6.9 4.3 2.4
Vanguard Total Bond Market Index Fund Benchmark 1.7 1.7 5.7 3.1 4.5 4.9 5.9 -2.0 4.3 7.9 6.6 5.9 5.2 7.0 4.3 2.4
Market Duration Fixed Income Peer Group Median 1.6 1.6 5.3 3.6 4.9 5.1 5.7 -1.8 7.0 6.7 7.5 12.5 -1.7 5.7 4.2 2.1
Vanguard Total Bond Market Index Fund (VBMFX) Rank 51 51 41 80 81 66 47 74 91 18 82 93 13 18 45 32
Vanguard Total Bond Market Index Fund (VBMFX)
Vanguard Total Bond Market Index Fund Benchmark
0
25
50
75
100Return Percentile Rank6/05 6/06 6/07 6/08 6/09 6/10 6/11 6/12 6/13 6/14 3/15
Cumulative Annualized Over/Under Relative Performance
Over/Under Performance
0.0
0.3
0.6
-0.3
-0.6Return (%)6/05 6/06 6/07 6/08 6/09 6/10 6/11 6/12 6/13 6/14 3/15
Return
Standard
Deviation
Excess
Return Alpha Beta
Sharpe
Ratio
Tracking
Error
Information
Ratio
Downside
Risk Consistency
Inception
Date
Vanguard Total Bond Market Index Fund (VBMFX)4.2 3.0 4.1 -0.3 1.0 1.4 0.2 -1.2 1.3 30.0 28y 3m
Vanguard Total Bond Market Index Fund Benchmark 4.5 3.0 4.3 0.0 1.0 1.5 0.0 N/A 1.2 0.0 28y 3m
90 Day U.S. Treasury Bill 0.1 0.0 0.0 0.1 0.0 N/A 3.0 -1.5 0.0 20.0 28y 3m
Manager Evaluation
Vanguard Total Bond Market Index Fund (VBMFX) vs. Vanguard Total Bond Market Index Fund Benchmark
As of March 31, 2015
Note: Prior to January 1, 2010, the Vanguard Total Bond Market Index was benchmarked to the Barclays Aggregate Index. Starting on January 1, 2010, the
benchmark was transitioned to the Barclays Aggregate Float Adjusted Index.
30
Portfolio Characteristics
Portfolio Benchmark
Effective Duration 5.6 5.6
Avg. Maturity 7.8 7.8
Avg. Quality AA+AA+
Yield To Maturity (%)2.0 2.0
Credit Quality Distribution (%)
Vanguard Total Bond Market Index (VBMFX)
Barclays U.S. Aggregate Float Adjusted
0.0
25.0
50.0
75.0
100.0
AAAAAABBB68.3
5.0
12.9 13.8
69.9
3.9
12.7 13.5
Maturity Distribution (%)
Vanguard Total Bond Market Index (VBMFX)
Barclays U.S. Aggregate Float Adjusted
0.0
15.0
30.0
45.0
60.0
< 1 Yr1 < 3 Yrs3 < 5 Yrs5 < 10 Yrs10 < 20 Yrs> 20 Yrs0.0
26.3 24.2
33.4
3.5
12.6
1.4
25.8 22.8
34.3
3.4
12.3
Sector Distribution (%)
Vanguard Total Bond Market Index (VBMFX)
Barclays U.S. Aggregate Float Adjusted
0.0
15.0
30.0
45.0
60.0
TreasuriesAgenciesCreditMBSABSNon-USEmergingOtherCMBS40.1
4.5
22.0 20.4
0.6
7.6
2.6 0.0 2.2
40.6
3.4
25.9
20.0
0.6
6.8
0.0 0.5 2.2
Manager Evaluation
Vanguard Total Bond Market Index (VBMFX) vs. Barclays U.S. Aggregate Float Adjusted
As of March 31, 2015
31
Historical Performance
Three Year Rolling Percentile Ranking Relative Performance
Historical Statistics (Apr-2010 - Mar-2015)
Quarter
Year
To
Date
1
Year
3
Years
5
Years
10
Years 2014 2013 2012 2011 2010 2009 2008 2007 2006 2005
Vanguard Retirement Savings Trust 0.5 0.5 1.9 1.9 2.3 3.1 1.8 1.7 2.4 2.9 2.9 3.0 4.3 4.5 4.3 4.1
Ryan 3 Yr GIC Master 0.3 0.3 1.0 1.1 1.8 3.0 1.0 1.1 1.5 2.4 3.5 4.5 4.8 4.5 3.8 3.2
Short Duration Fixed Income Peer Group 0.6 0.6 0.9 1.3 1.9 3.0 0.7 0.3 2.7 1.4 3.4 6.7 -0.1 5.4 4.2 1.6
Vanguard Retirement Savings Trust Rank 64 64 9 21 28 35 7 5 55 8 68 79 28 70 38 1
Vanguard Retirement Savings Trust Ryan 3 Yr GIC Master
0
25
50
75
100Return Percentile Rank6/05 6/06 6/07 6/08 6/09 6/10 6/11 6/12 6/13 6/14 3/15 Cumulative Annualized Over/Under Relative Performance
Over/Under Performance
0.0
0.7
1.4
2.1
-0.7
-1.4Return (%)6/05 6/06 6/07 6/08 6/09 6/10 6/11 6/12 6/13 6/14 3/15
Return
Standard
Deviation
Excess
Return Alpha Beta
Sharpe
Ratio
Tracking
Error
Information
Ratio
Downside
Risk Consistency
Inception
Date
Vanguard Retirement Savings Trust 2.3 0.3 2.2 1.3 0.5 8.8 0.2 2.3 0.0 85.0 12y 3m
Ryan 3 Yr GIC Master 1.8 0.4 1.7 0.0 1.0 4.1 0.0 N/A 0.0 0.0 12y 3m
90 Day U.S. Treasury Bill 0.1 0.0 0.0 0.0 0.0 N/A 0.4 -4.1 0.0 0.0 12y 3m
Manager Evaluation
Vanguard Retirement Savings Trust vs. Ryan 3 Yr GIC Master
As of March 31, 2015
32
Historical Performance
Three Year Rolling Percentile Ranking Relative Performance
Historical Statistics (Apr-2010 - Mar-2015)
Quarter
Year
To
Date
1
Year
3
Years
5
Years
10
Years 2014 2013 2012 2011 2010 2009 2008 2007 2006 2005
Vanguard Balanced Index Fund (VBINX)1.7 1.7 9.6 10.8 10.6 7.3 9.8 17.9 11.3 4.1 13.1 20.1 -22.2 6.2 11.0 4.7
Vanguard Balanced Index Fund Benchmark 1.8 1.8 9.7 11.1 10.8 7.4 9.9 18.2 11.6 4.1 13.5 19.7 -22.0 6.3 11.1 4.9
60% Equity / 40% Fixed Peer Group Median 2.0 2.0 6.8 9.9 9.3 6.5 6.6 19.2 10.7 0.8 12.3 21.6 -23.1 6.0 9.7 5.0
Vanguard Balanced Index Fund (VBINX) Rank 62 62 13 19 14 16 10 70 39 10 34 63 41 49 30 58
Vanguard Balanced Index Fund (VBINX)
Vanguard Balanced Index Fund Benchmark
0
25
50
75
100Return Percentile Rank6/05 6/06 6/07 6/08 6/09 6/10 6/11 6/12 6/13 6/14 3/15
Cumulative Annualized Over/Under Relative Performance
Over/Under Performance
0.0
0.4
0.8
-0.4
-0.8Return (%)6/05 6/06 6/07 6/08 6/09 6/10 6/11 6/12 6/13 6/14 3/15
Return
Standard
Deviation
Excess
Return Alpha Beta
Sharpe
Ratio
Tracking
Error
Information
Ratio
Downside
Risk Consistency
Inception
Date
Vanguard Balanced Index Fund (VBINX)10.6 8.2 10.5 -0.1 1.0 1.3 0.2 -1.0 4.3 30.0 22y 4m
Vanguard Balanced Index Fund Benchmark 10.8 8.3 10.7 0.0 1.0 1.3 0.0 N/A 4.3 0.0 22y 4m
90 Day U.S. Treasury Bill 0.1 0.0 0.0 0.1 0.0 N/A 8.3 -1.3 0.0 15.0 22y 4m
Manager Evaluation
Vanguard Balanced Index Fund (VBINX) vs. Vanguard Balanced Index Fund Benchmark
As of March 31, 2015
Note: Prior to June 1, 2005, the Vanguard Balanced Index was benchmarked to 60% DJ U.S. Total Stock Market Index/40% LB Aggregate Bond Index. From
June 1, 2005 to December 31, 2009, the Index fund was benchmarked to 60% MSCI US Broad Market Index/40% BC Aggregate Index. From January 1, 2010
to January 14, 2013, the Index fund was benchmarked to 60% MSCI US Broad Market Index/40% BC Aggregate Float Adjusted Index. Starting January 15,
2013, the benchmark transitioned to 60% CRSP US Total Market Index/40% BC Aggregate Float Adjusted Index.
33
Portfolio Characteristics
Portfolio Benchmark
Wtd. Avg. Mkt. Cap ($M)103,473 108,894
Median Mkt. Cap ($M)1,264 936
Price/Earnings ratio 19.5 19.5
Price/Book ratio 3.1 3.1
5 Yr. EPS Growth Rate (%)13.8 14.0
Current Yield (%)1.9 1.9
Debt to Equity 1.3 1.3
Number of Stocks 3,340 3,795
Beta (5 Years, Monthly)0.57 1.00
Consistency (5 Years, Monthly)36.67 1.00
Sharpe Ratio (5 Years, Monthly)1.34 1.10
Information Ratio (5 Years, Monthly)-0.74 -
Up Market Capture (5 Years, Monthly)62.51 -
Down Market Capture (5 Years, Monthly)52.49 -
Top Ten Equity Holdings
Portfolio
Weight
(%)
Benchmark
Weight
(%)
Active
Weight
(%)
Quarterly
Return
(%)
Apple Inc 3.0 3.2 -0.2 13.2
Exxon Mobil Corp 1.5 1.6 -0.1 -7.4
Microsoft Corp 1.3 1.3 -0.1 -11.9
Wells Fargo & Co 1.2 1.2 -0.1 -0.1
Johnson & Johnson 1.2 1.2 -0.1 -3.1
General Electric Co 1.0 1.1 -0.1 -0.9
Berkshire Hathaway Inc 1.0 0.7 0.3 -3.9
JPMorgan Chase & Co 0.9 1.0 -0.1 -2.6
Procter & Gamble Co (The)0.9 1.0 -0.1 -9.4
Pfizer Inc 0.9 1.0 -0.1 12.7
% of Portfolio 12.9 13.3
Distribution of Market Capitalization (%)
Vanguard Balanced Index Fund (VBINX) - Equity Holdings
CRSP U.S. Total Market TR Index
0.0
15.0
30.0
45.0
60.0
>$75 Bil $20 Bil -
$75 Bil
$5 Bil -
$20 Bil
$0 -
$5 Bil
Cash
40.4
28.1
19.5
12.0
0.0
38.4
26.7
18.5
11.5
4.9
Sector Weights (%)
Vanguard Balanced Index Fund (VBINX) - Equity Holdings
CRSP U.S. Total Market TR Index
0.0 5.0 10.0 15.0 20.0 25.0
Cash
Utilities
Telecommunication Services
Materials
Information Technology
Industrials
Health Care
Financials
Energy
Consumer Staples
Consumer Discretionary
4.9
2.9
1.9
3.4
18.1
10.5
14.0
16.9
7.0
8.0
12.4
0.0
3.1
2.0
3.5
19.1
11.1
14.7
17.7
7.4
8.4
13.0
Manager Evaluation
Vanguard Balanced Index Fund (VBINX) - Equity Holdings vs. CRSP U.S. Total Market TR Index
As of March 31, 2015
34
Portfolio Characteristics
Portfolio Benchmark
Effective Duration 5.6 5.6
Avg. Maturity 7.8 7.8
Avg. Quality AA+AA+
Yield To Maturity (%)2.0 2.0
Credit Quality Distribution (%)
Vanguard Balanced Index Fund (VBINX) - Fixed Income Holdings
Barclays U.S. Aggregate Float Adjusted
0.0
25.0
50.0
75.0
100.0
AAAAAABBB68.3
5.0
12.9 13.8
69.8
3.9
12.6 13.7
Maturity Distribution (%)
Vanguard Balanced Index Fund (VBINX) - Fixed Income Holdings
Barclays U.S. Aggregate Float Adjusted
0.0
15.0
30.0
45.0
60.0
< 1 Yr1 < 3 Yrs3 < 5 Yrs5 < 10 Yrs10 < 20 Yrs> 20 Yrs0.0
26.3 24.2
33.4
3.5
12.6
0.5
28.5
21.0 22.6
12.5 14.8
Sector Distribution (%)
Vanguard Balanced Index Fund (VBINX) - Fixed Income Holdings
Barclays U.S. Aggregate Float Adjusted
0.0
15.0
30.0
45.0
60.0
TreasuriesAgenciesCreditMBSABSNon-USEmergingOtherCMBS40.1
4.5
22.0 20.4
0.6
7.6
2.6 0.0 2.2
40.8
3.2
26.1
20.1
3.0 5.8
0.0 1.0 0.0
Manager Evaluation
Vanguard Balanced Index Fund (VBINX) - Fixed Income Holdings vs. Barclays U.S. Aggregate Float Adjusted
As of March 31, 2015
35
Historical Performance
Three Year Rolling Percentile Ranking Risk and Return (Apr-2010 - Mar-2015)
Historical Statistics (Apr-2010 - Mar-2015)
Quarter
Year
To
Date
1
Year
3
Years
5
Years
10
Years 2014 2013 2012 2011 2010 2009 2008 2007 2006 2005
Vanguard Target Retirement Income (VTINX)1.8 1.8 5.7 5.8 6.7 5.6 5.5 5.9 8.2 5.2 9.4 14.3 -10.9 8.2 6.4 3.3
Vanguard Target Income Composite Index 1.8 1.8 5.9 6.0 6.8 5.7 5.8 6.0 8.4 5.3 9.4 14.3 -11.3 8.1 6.5 3.4
35% Equity / 65% Fixed Peer Group Median 1.7 1.7 5.8 7.1 7.3 5.7 5.8 10.7 8.2 2.8 9.8 16.8 -13.2 6.0 7.5 3.7
Vanguard Target Retirement Income (VTINX) Rank 48 48 51 82 67 56 55 93 50 12 58 68 34 15 73 63
Vanguard Target Retirement Income (VTINX)
Vanguard Target Income Composite Index
0
25
50
75
100Return Percentile Rank6/05 6/06 6/07 6/08 6/09 6/10 6/11 6/12 6/13 6/14 3/15
6.4
6.6
6.8
7.0
Return (%)3.9 4.0
Risk (Standard Deviation %)
Vanguard Target Income Composite Index
Vanguard Target Retirement Income (VTINX)
Return
Standard
Deviation
Excess
Return Alpha Beta
Sharpe
Ratio
Tracking
Error
Information
Ratio
Downside
Risk Consistency
Inception
Date
Vanguard Target Retirement Income (VTINX)6.7 3.9 6.5 -0.1 1.0 1.7 0.1 -1.0 1.5 35.0 11y 5m
Vanguard Target Income Composite Index 6.8 3.9 6.7 0.0 1.0 1.7 0.0 N/A 1.5 0.0 11y 5m
90 Day U.S. Treasury Bill 0.1 0.0 0.0 0.1 0.0 N/A 3.9 -1.7 0.0 20.0 11y 5m
Manager Evaluation
Vanguard Target Retirement Income (VTINX) vs. Vanguard Target Income Composite Index
As of March 31, 2015
36
Historical Performance
Three Year Rolling Percentile Ranking Risk and Return (Apr-2010 - Mar-2015)
Historical Statistics (Apr-2010 - Mar-2015)
Quarter
Year
To
Date
1
Year
3
Years
5
Years
10
Years 2014 2013 2012 2011 2010 2009 2008 2007 2006 2005
Vanguard Target Retirement 2010 (VTENX)1.9 1.9 6.1 7.0 7.6 N/A 5.9 9.1 10.1 3.4 11.4 19.3 -20.7 7.7 N/A N/A
Vanguard Target 2010 Composite Index 1.9 1.9 6.3 7.2 7.7 N/A 6.1 9.3 10.2 3.3 11.5 19.3 -20.9 7.7 N/A N/A
40% Equity / 60% Fixed Peer Group Median 1.7 1.7 5.9 7.5 7.7 5.8 6.0 12.5 8.7 2.4 10.4 17.4 -15.5 5.8 7.9 4.0
Vanguard Target Retirement 2010 (VTENX) Rank 41 41 46 68 55 N/A 51 90 32 32 31 36 80 24 N/A N/A
Vanguard Target Retirement 2010 (VTENX)
Vanguard Target 2010 Composite Index
0
25
50
75
100Return Percentile Rank6/05 6/06 6/07 6/08 6/09 6/10 6/11 6/12 6/13 6/14 3/15
7.5
7.6
7.7
7.8
7.9
Return (%)6.2 6.3 6.4
Risk (Standard Deviation %)
Vanguard Target 2010 Composite Index
Vanguard Target Retirement 2010 (VTENX)
Return
Standard
Deviation
Excess
Return Alpha Beta
Sharpe
Ratio
Tracking
Error
Information
Ratio
Downside
Risk Consistency
Inception
Date
Vanguard Target Retirement 2010 (VTENX)7.6 6.3 7.5 -0.1 1.0 1.2 0.1 -0.8 3.3 30.0 8y 9m
Vanguard Target 2010 Composite Index 7.7 6.3 7.6 0.0 1.0 1.2 0.0 N/A 3.3 0.0 8y 9m
90 Day U.S. Treasury Bill 0.1 0.0 0.0 0.1 0.0 N/A 6.3 -1.2 0.0 25.0 8y 9m
Manager Evaluation
Vanguard Target Retirement 2010 (VTENX) vs. Vanguard Target 2010 Composite Index
As of March 31, 2015
37
Historical Performance
Three Year Rolling Percentile Ranking Risk and Return (Apr-2010 - Mar-2015)
Historical Statistics (Apr-2010 - Mar-2015)
Quarter
Year
To
Date
1
Year
3
Years
5
Years
10
Years 2014 2013 2012 2011 2010 2009 2008 2007 2006 2005
Vanguard Target Retirement 2015 (VTXVX)2.0 2.0 6.8 8.5 8.6 6.3 6.6 13.0 11.4 1.7 12.5 21.3 -24.1 7.5 11.4 4.9
Vanguard Target 2015 Composite Index 2.0 2.0 7.1 8.7 8.6 6.3 6.8 13.3 11.5 1.6 12.5 21.2 -24.4 7.6 11.5 5.0
55% Equity / 45% Fixed Peer Group Median 1.8 1.8 6.7 9.3 8.9 6.3 6.5 17.5 10.2 1.3 11.7 20.9 -21.2 6.1 9.4 4.7
Vanguard Target Retirement 2015 (VTXVX) Rank 42 42 48 73 62 53 49 91 30 42 35 48 72 32 17 44
Vanguard Target Retirement 2015 (VTXVX)
Vanguard Target 2015 Composite Index
0
25
50
75
100Return Percentile Rank6/05 6/06 6/07 6/08 6/09 6/10 6/11 6/12 6/13 6/14 3/15
8.4
8.5
8.6
8.7
8.8
Return (%)7.9 8.0 8.1
Risk (Standard Deviation %)
Vanguard Target 2015 Composite Index
Vanguard Target Retirement 2015 (VTXVX)
Return
Standard
Deviation
Excess
Return Alpha Beta
Sharpe
Ratio
Tracking
Error
Information
Ratio
Downside
Risk Consistency
Inception
Date
Vanguard Target Retirement 2015 (VTXVX)8.6 8.0 8.5 -0.1 1.0 1.1 0.1 -0.7 4.5 30.0 11y 5m
Vanguard Target 2015 Composite Index 8.6 8.0 8.6 0.0 1.0 1.1 0.0 N/A 4.5 0.0 11y 5m
90 Day U.S. Treasury Bill 0.1 0.0 0.0 0.1 0.0 N/A 8.0 -1.1 0.0 25.0 11y 5m
Manager Evaluation
Vanguard Target Retirement 2015 (VTXVX) vs. Vanguard Target 2015 Composite Index
As of March 31, 2015
38
Historical Performance
Three Year Rolling Percentile Ranking Risk and Return (Apr-2010 - Mar-2015)
Historical Statistics (Apr-2010 - Mar-2015)
Quarter
Year
To
Date
1
Year
3
Years
5
Years
10
Years 2014 2013 2012 2011 2010 2009 2008 2007 2006 2005
Vanguard Target Retirement 2020 (VTWNX)2.2 2.2 7.5 9.6 9.3 N/A 7.1 15.8 12.3 0.6 13.1 23.1 -27.0 7.5 N/A N/A
Vanguard Target 2020 Composite Index 2.2 2.2 7.7 9.9 9.5 N/A 7.4 16.2 12.5 1.0 13.3 23.3 -27.4 7.6 N/A N/A
65% Equity / 35% Fixed Peer Group Median 2.0 2.0 7.2 10.5 9.9 6.5 6.9 20.9 11.3 0.3 12.9 22.7 -25.1 6.2 10.3 5.3
Vanguard Target Retirement 2020 (VTWNX) Rank 43 43 44 73 69 N/A 46 91 32 46 46 48 69 39 N/A N/A
Vanguard Target Retirement 2020 (VTWNX)
Vanguard Target 2020 Composite Index
0
25
50
75
100Return Percentile Rank6/05 6/06 6/07 6/08 6/09 6/10 6/11 6/12 6/13 6/14 3/15
8.7
9.0
9.3
9.6
9.9
10.2
Return (%)9.1 9.2 9.3
Risk (Standard Deviation %)
Vanguard Target 2020 Composite Index
Vanguard Target Retirement 2020 (VTWNX)
Return
Standard
Deviation
Excess
Return Alpha Beta
Sharpe
Ratio
Tracking
Error
Information
Ratio
Downside
Risk Consistency
Inception
Date
Vanguard Target Retirement 2020 (VTWNX)9.3 9.3 9.3 -0.3 1.0 1.0 0.2 -1.5 5.5 25.0 8y 9m
Vanguard Target 2020 Composite Index 9.5 9.2 9.6 0.0 1.0 1.0 0.0 N/A 5.4 0.0 8y 9m
90 Day U.S. Treasury Bill 0.1 0.0 0.0 0.1 0.0 N/A 9.2 -1.0 0.0 25.0 8y 9m
Manager Evaluation
Vanguard Target Retirement 2020 (VTWNX) vs. Vanguard Target 2020 Composite Index
As of March 31, 2015
39
Historical Performance
Three Year Rolling Percentile Ranking Risk and Return (Apr-2010 - Mar-2015)
Historical Statistics (Apr-2010 - Mar-2015)
Quarter
Year
To
Date
1
Year
3
Years
5
Years
10
Years 2014 2013 2012 2011 2010 2009 2008 2007 2006 2005
Vanguard Target Retirement 2025 (VTTVX)2.2 2.2 7.7 10.4 9.8 6.6 7.2 18.1 13.3 -0.4 13.8 24.8 -30.1 7.6 13.2 5.4
Vanguard Target 2025 Composite Index 2.2 2.2 7.9 10.6 10.0 6.7 7.4 18.5 13.4 0.1 13.9 25.2 -30.4 7.6 13.4 5.6
70% Equity / 30% Fixed Peer Group Median 2.1 2.1 7.1 11.0 10.3 6.8 7.0 22.5 11.8 -0.1 13.1 23.5 -27.1 6.2 10.8 5.5
Vanguard Target Retirement 2025 (VTTVX) Rank 44 44 43 65 68 61 46 89 24 57 38 41 80 35 20 52
Vanguard Target Retirement 2025 (VTTVX)
Vanguard Target 2025 Composite Index
0
25
50
75
100Return Percentile Rank6/05 6/06 6/07 6/08 6/09 6/10 6/11 6/12 6/13 6/14 3/15
9.3
9.6
9.9
10.2
10.5
Return (%)10.3 10.4 10.5 10.6
Risk (Standard Deviation %)
Vanguard Target 2025 Composite Index
Vanguard Target Retirement 2025 (VTTVX)
Return
Standard
Deviation
Excess
Return Alpha Beta
Sharpe
Ratio
Tracking
Error
Information
Ratio
Downside
Risk Consistency
Inception
Date
Vanguard Target Retirement 2025 (VTTVX)9.8 10.5 9.9 -0.3 1.0 0.9 0.2 -1.3 6.4 30.0 11y 5m
Vanguard Target 2025 Composite Index 10.0 10.4 10.2 0.0 1.0 1.0 0.0 N/A 6.2 0.0 11y 5m
90 Day U.S. Treasury Bill 0.1 0.0 0.0 0.1 0.0 N/A 10.4 -1.0 0.0 20.0 11y 5m
Manager Evaluation
Vanguard Target Retirement 2025 (VTTVX) vs. Vanguard Target 2025 Composite Index
As of March 31, 2015
40
Historical Performance
Three Year Rolling Percentile Ranking Risk and Return (Apr-2010 - Mar-2015)
Historical Statistics (Apr-2010 - Mar-2015)
Quarter
Year
To
Date
1
Year
3
Years
5
Years
10
Years 2014 2013 2012 2011 2010 2009 2008 2007 2006 2005
Vanguard Target Retirement 2030 (VTHRX)2.3 2.3 7.8 11.1 10.3 N/A 7.2 20.5 14.2 -1.3 14.4 26.7 -32.9 7.5 N/A N/A
Vanguard Target 2030 Composite Index 2.3 2.3 8.0 11.4 10.5 N/A 7.5 20.9 14.3 -0.9 14.6 27.0 -33.3 7.6 N/A N/A
80% Equity / 20% Fixed Peer Group Median 2.1 2.1 7.9 12.1 11.1 7.1 7.4 25.8 12.9 -0.8 14.2 25.7 -30.9 6.3 11.7 5.9
Vanguard Target Retirement 2030 (VTHRX) Rank 44 44 52 73 73 N/A 55 89 27 59 45 43 76 38 N/A N/A
Vanguard Target Retirement 2030 (VTHRX)
Vanguard Target 2030 Composite Index
0
25
50
75
100Return Percentile Rank6/05 6/06 6/07 6/08 6/09 6/10 6/11 6/12 6/13 6/14 3/15
9.9
10.2
10.5
10.8
11.1
Return (%)11.5 11.6 11.7 11.8
Risk (Standard Deviation %)
Vanguard Target 2030 Composite Index
Vanguard Target Retirement 2030 (VTHRX)
Return
Standard
Deviation
Excess
Return Alpha Beta
Sharpe
Ratio
Tracking
Error
Information
Ratio
Downside
Risk Consistency
Inception
Date
Vanguard Target Retirement 2030 (VTHRX)10.3 11.7 10.5 -0.3 1.0 0.9 0.2 -1.1 7.3 40.0 8y 9m
Vanguard Target 2030 Composite Index 10.5 11.6 10.7 0.0 1.0 0.9 0.0 N/A 7.1 0.0 8y 9m
90 Day U.S. Treasury Bill 0.1 0.0 0.0 0.1 0.0 N/A 11.6 -0.9 0.0 20.0 8y 9m
Manager Evaluation
Vanguard Target Retirement 2030 (VTHRX) vs. Vanguard Target 2030 Composite Index
As of March 31, 2015
41
Historical Performance
Three Year Rolling Percentile Ranking Risk and Return (Apr-2010 - Mar-2015)
Historical Statistics (Apr-2010 - Mar-2015)
Quarter
Year
To
Date
1
Year
3
Years
5
Years
10
Years 2014 2013 2012 2011 2010 2009 2008 2007 2006 2005
Vanguard Target Retirement 2035 (VTTHX)2.4 2.4 7.9 11.9 10.8 7.0 7.2 22.8 15.2 -2.2 15.1 28.2 -34.7 7.5 15.2 6.3
Vanguard Target 2035 Composite Index 2.3 2.3 8.1 12.1 11.0 7.1 7.6 23.3 15.2 -1.9 15.2 28.7 -35.1 7.6 15.4 6.5
85% Equity / 15% Fixed Peer Group Median 2.1 2.1 8.4 12.8 11.6 7.3 7.5 27.3 13.3 -1.0 14.6 26.8 -32.7 6.5 12.2 6.3
Vanguard Target Retirement 2035 (VTTHX) Rank 44 44 56 70 71 65 56 87 21 68 41 40 75 41 19 51
Vanguard Target Retirement 2035 (VTTHX)
Vanguard Target 2035 Composite Index
0
25
50
75
100Return Percentile Rank6/05 6/06 6/07 6/08 6/09 6/10 6/11 6/12 6/13 6/14 3/15
10.2
10.5
10.8
11.1
11.4
11.7
Return (%)12.7 12.8 12.9 13.0 13.1
Risk (Standard Deviation %)
Vanguard Target 2035 Composite Index
Vanguard Target Retirement 2035 (VTTHX)
Return
Standard
Deviation
Excess
Return Alpha Beta
Sharpe
Ratio
Tracking
Error
Information
Ratio
Downside
Risk Consistency
Inception
Date
Vanguard Target Retirement 2035 (VTTHX)10.8 12.9 11.1 -0.3 1.0 0.9 0.3 -0.8 8.1 40.0 11y 5m
Vanguard Target 2035 Composite Index 11.0 12.8 11.3 0.0 1.0 0.9 0.0 N/A 8.0 0.0 11y 5m
90 Day U.S. Treasury Bill 0.1 0.0 0.0 0.1 0.0 N/A 12.8 -0.9 0.0 20.0 11y 5m
Manager Evaluation
Vanguard Target Retirement 2035 (VTTHX) vs. Vanguard Target 2035 Composite Index
As of March 31, 2015
42
Historical Performance
Three Year Rolling Percentile Ranking Risk and Return (Apr-2010 - Mar-2015)
Historical Statistics (Apr-2010 - Mar-2015)
Quarter
Year
To
Date
1
Year
3
Years
5
Years
10
Years 2014 2013 2012 2011 2010 2009 2008 2007 2006 2005
Vanguard Target Retirement 2040 (VFORX)2.4 2.4 7.9 12.3 11.1 N/A 7.1 24.4 15.6 -2.5 15.2 28.3 -34.5 7.5 N/A N/A
Vanguard Target 2040 Composite Index 2.4 2.4 8.2 12.6 11.3 N/A 7.6 24.8 15.6 -2.1 15.3 28.7 -35.1 7.6 N/A N/A
90% Equity / 10% Fixed Peer Group Median 2.2 2.2 8.4 13.3 12.1 7.5 8.0 29.4 13.7 -1.4 15.2 27.5 -34.5 6.5 12.6 6.5
Vanguard Target Retirement 2040 (VFORX) Rank 42 42 57 72 75 N/A 63 87 24 68 51 46 51 42 N/A N/A
Vanguard Target Retirement 2040 (VFORX)
Vanguard Target 2040 Composite Index
0
25
50
75
100Return Percentile Rank6/05 6/06 6/07 6/08 6/09 6/10 6/11 6/12 6/13 6/14 3/15
10.5
10.8
11.1
11.4
11.7
Return (%)13.0 13.1 13.2 13.3
Risk (Standard Deviation %)
Vanguard Target 2040 Composite Index
Vanguard Target Retirement 2040 (VFORX)
Return
Standard
Deviation
Excess
Return Alpha Beta
Sharpe
Ratio
Tracking
Error
Information
Ratio
Downside
Risk Consistency
Inception
Date
Vanguard Target Retirement 2040 (VFORX)11.1 13.2 11.4 -0.3 1.0 0.9 0.2 -1.0 8.3 40.0 8y 9m
Vanguard Target 2040 Composite Index 11.3 13.1 11.7 0.0 1.0 0.9 0.0 N/A 8.1 0.0 8y 9m
90 Day U.S. Treasury Bill 0.1 0.0 0.0 0.1 0.0 N/A 13.1 -0.9 0.0 20.0 8y 9m
Manager Evaluation
Vanguard Target Retirement 2040 (VFORX) vs. Vanguard Target 2040 Composite Index
As of March 31, 2015
43
Historical Performance
Three Year Rolling Percentile Ranking Risk and Return (Apr-2010 - Mar-2015)
Historical Statistics (Apr-2010 - Mar-2015)
Quarter
Year
To
Date
1
Year
3
Years
5
Years
10
Years 2014 2013 2012 2011 2010 2009 2008 2007 2006 2005
Vanguard Target Retirement 2045 (VTIVX)2.4 2.4 7.9 12.3 11.1 7.3 7.2 24.4 15.6 -2.5 15.2 28.2 -34.6 7.5 16.0 6.9
Vanguard Target 2045 Composite Index 2.4 2.4 8.2 12.6 11.3 7.4 7.6 24.8 15.6 -2.1 15.3 28.7 -35.1 7.6 16.2 7.1
90% Equity / 10% Fixed Peer Group Median 2.2 2.2 8.4 13.3 12.1 7.5 8.0 29.4 13.7 -1.4 15.2 27.5 -34.5 6.5 12.6 6.5
Vanguard Target Retirement 2045 (VTIVX) Rank 41 41 57 71 75 60 63 87 23 67 51 47 51 42 17 43
Vanguard Target Retirement 2045 (VTIVX)
Vanguard Target 2045 Composite Index
0
25
50
75
100Return Percentile Rank6/05 6/06 6/07 6/08 6/09 6/10 6/11 6/12 6/13 6/14 3/15
10.5
10.8
11.1
11.4
11.7
Return (%)13.0 13.1 13.2 13.3
Risk (Standard Deviation %)
Vanguard Target 2045 Composite Index
Vanguard Target Retirement 2045 (VTIVX)
Return
Standard
Deviation
Excess
Return Alpha Beta
Sharpe
Ratio
Tracking
Error
Information
Ratio
Downside
Risk Consistency
Inception
Date
Vanguard Target Retirement 2045 (VTIVX)11.1 13.2 11.4 -0.3 1.0 0.9 0.2 -1.0 8.3 40.0 11y 5m
Vanguard Target 2045 Composite Index 11.3 13.1 11.7 0.0 1.0 0.9 0.0 N/A 8.1 0.0 11y 5m
90 Day U.S. Treasury Bill 0.1 0.0 0.0 0.1 0.0 N/A 13.1 -0.9 0.0 20.0 11y 5m
Manager Evaluation
Vanguard Target Retirement 2045 (VTIVX) vs. Vanguard Target 2045 Composite Index
As of March 31, 2015
44
Historical Performance
Three Year Rolling Percentile Ranking Risk and Return (Apr-2010 - Mar-2015)
Historical Statistics (Apr-2010 - Mar-2015)
Quarter
Year
To
Date
1
Year
3
Years
5
Years
10
Years 2014 2013 2012 2011 2010 2009 2008 2007 2006 2005
Vanguard Target Retirement 2050 (VFIFX)2.4 2.4 7.9 12.3 11.1 N/A 7.2 24.3 15.6 -2.5 15.2 28.3 -34.6 7.5 N/A N/A
Vanguard Target 2050 Composite Index 2.4 2.4 8.2 12.6 11.3 N/A 7.6 24.8 15.6 -2.1 15.3 28.7 -35.1 7.6 N/A N/A
90% Equity / 10% Fixed Peer Group Median 2.2 2.2 8.4 13.3 12.1 7.5 8.0 29.4 13.7 -1.4 15.2 27.5 -34.5 6.5 12.6 6.5
Vanguard Target Retirement 2050 (VFIFX) Rank 43 43 57 72 75 N/A 63 87 23 68 51 46 52 42 N/A N/A
Vanguard Target Retirement 2050 (VFIFX)
Vanguard Target 2050 Composite Index
0
25
50
75
100Return Percentile Rank6/05 6/06 6/07 6/08 6/09 6/10 6/11 6/12 6/13 6/14 3/15
10.5
10.8
11.1
11.4
11.7
Return (%)13.0 13.1 13.2 13.3
Risk (Standard Deviation %)
Vanguard Target 2050 Composite Index
Vanguard Target Retirement 2050 (VFIFX)
Return
Standard
Deviation
Excess
Return Alpha Beta
Sharpe
Ratio
Tracking
Error
Information
Ratio
Downside
Risk Consistency
Inception
Date
Vanguard Target Retirement 2050 (VFIFX)11.1 13.2 11.4 -0.3 1.0 0.9 0.2 -1.0 8.3 40.0 8y 9m
Vanguard Target 2050 Composite Index 11.3 13.1 11.7 0.0 1.0 0.9 0.0 N/A 8.1 0.0 8y 9m
90 Day U.S. Treasury Bill 0.1 0.0 0.0 0.1 0.0 N/A 13.1 -0.9 0.0 20.0 8y 9m
Manager Evaluation
Vanguard Target Retirement 2050 (VFIFX) vs. Vanguard Target 2050 Composite Index
As of March 31, 2015
45
Historical Performance
Three Year Rolling Percentile Ranking Risk and Return (Oct-2010 - Mar-2015)
Historical Statistics (Oct-2010 - Mar-2015)
Quarter
Year
To
Date
1
Year
3
Years
5
Years
10
Years 2014 2013 2012 2011 2010 2009 2008 2007 2006 2005
Vanguard Target Retirement 2055 (VFFVX)2.4 2.4 7.9 12.3 N/A N/A 7.2 24.3 15.6 -2.3 N/A N/A N/A N/A N/A N/A
Vanguard Target 2055 Composite Index 2.4 2.4 8.2 12.6 N/A N/A 7.6 24.8 15.6 -2.1 N/A N/A N/A N/A N/A N/A
90% Equity / 10% Fixed Peer Group Median 2.2 2.2 8.4 13.3 12.1 7.5 8.0 29.4 13.7 -1.4 15.2 27.5 -34.5 6.5 12.6 6.5
Vanguard Target Retirement 2055 (VFFVX) Rank 42 42 58 71 N/A N/A 63 87 23 63 N/A N/A N/A N/A N/A N/A
Vanguard Target Retirement 2055 (VFFVX)
Vanguard Target 2055 Composite Index
0
25
50
75
100Return Percentile Rank6/05 6/06 6/07 6/08 6/09 6/10 6/11 6/12 6/13 6/14 3/15
12.0
12.2
12.4
12.6
12.8
Return (%)11.6 11.7 11.8
Risk (Standard Deviation %)
Vanguard Target 2055 Composite Index
Vanguard Target Retirement 2055 (VFFVX)
Return
Standard
Deviation
Excess
Return Alpha Beta
Sharpe
Ratio
Tracking
Error
Information
Ratio
Downside
Risk Consistency
Inception
Date
Vanguard Target Retirement 2055 (VFFVX)12.4 11.7 12.5 -0.2 1.0 1.1 0.2 -0.7 7.2 33.3 4y 6m
Vanguard Target 2055 Composite Index 12.6 11.6 12.6 0.0 1.0 1.1 0.0 N/A 7.1 0.0 4y 6m
90 Day U.S. Treasury Bill 0.1 0.0 0.0 0.1 0.0 N/A 11.6 -1.1 0.0 16.7 4y 6m
Manager Evaluation
Vanguard Target Retirement 2055 (VFFVX) vs. Vanguard Target 2055 Composite Index
As of March 31, 2015
46
Historical Performance
Three Year Rolling Percentile Ranking Risk and Return (Apr-2012 - Mar-2015)
Historical Statistics (Feb-2012 - Mar-2015)
Quarter
Year
To
Date
1
Year
3
Years
5
Years
10
Years 2014 2013 2012 2011 2010 2009 2008 2007 2006 2005
Vanguard Target Retirement 2060 (VTTSX)2.4 2.4 7.9 12.4 N/A N/A 7.2 24.3 N/A N/A N/A N/A N/A N/A N/A N/A
Vanguard Target 2060 Composite Index 2.4 2.4 8.2 12.6 N/A N/A 7.6 24.8 15.6 N/A N/A N/A N/A N/A N/A N/A
90% Equity / 10% Fixed Peer Group Median 2.2 2.2 8.4 13.3 12.1 7.5 8.0 29.4 13.7 -1.4 15.2 27.5 -34.5 6.5 12.6 6.5
Vanguard Target Retirement 2060 (VTTSX) Rank 43 43 58 70 N/A N/A 63 87 N/A N/A N/A N/A N/A N/A N/A N/A
Vanguard Target Retirement 2060 (VTTSX)
Vanguard Target 2060 Composite Index
0
25
50
75
100Return Percentile Rank6/05 6/06 6/07 6/08 6/09 6/10 6/11 6/12 6/13 6/14 3/15
12.0
12.2
12.4
12.6
12.8
13.0
Return (%)6.7 6.8 6.9 7.0 7.1
Risk (Standard Deviation %)
Vanguard Target 2060 Composite Index
Vanguard Target Retirement 2060 (VTTSX)
Return
Standard
Deviation
Excess
Return Alpha Beta
Sharpe
Ratio
Tracking
Error
Information
Ratio
Downside
Risk Consistency
Inception
Date
Vanguard Target Retirement 2060 (VTTSX)N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A 3y 2m
Vanguard Target 2060 Composite Index 15.3 8.0 14.8 0.0 1.0 1.8 0.0 N/A 2.3 0.0 3y 2m
90 Day U.S. Treasury Bill 0.1 0.0 0.0 0.1 0.0 N/A 8.0 -1.8 0.0 15.4 3y 2m
Manager Evaluation
Vanguard Target Retirement 2060 (VTTSX) vs. Vanguard Target 2060 Composite Index
As of March 31, 2015
47
Manager Evaluation
Ta rget-Date Funds Asset Allocation
As of March 31, 2015
U.S.Equi ty 20.8%25.1%34.9%41.8%47.0%52.1%57.5%62.3%62.2%62.1%61.6%62.0%
Va nguard Total St ock M arke t Index Fu nd 20.8%25.1%34.9%41.8%47.0%52.1%57.5%62.3%62.2%62.1%61.6%62.0%
Non-U.S . Equ ity 9.1%11.0%15.3%18.2%25.4%22.7%24.9%27.6%27.6%27.9%28.3%27.9%
Va nguard Total In ternational Stock In dex F und 9.1%11.0%15.3%18.2%25.4%22.7%24.9%27.6%27.6%27.9%28.3%27.9%
Fi xe d In come 70.1%63.9%49.8%40.0%27.6%25.2%17.6%10.1%10.2%10.0%10.1%10.1%
Va nguard Total Bo nd Marke t II In dex F und 39.0%36.2%31.4%31.3%20.5%19.4%13.5%7.9%8.0%7.8%7.6%7.1%
Va nguard Total In ternational Bo nd Index Fu nd 14.3%13.5%10.4%8.7%7.1%5.8%4.1%2.2%2.2%2.2%2.5%3.0%
Va nguard Infla tion-Pro tected Securit ie s Fund 16.8%14.2%8.0%0.0%0.0%0.0%0.0%0.0%0.0%0.0%0.0%0.0%
TO TA L 100.0%100.0%100.0%100.0%100.0%100.0%100.0%100.0%100.0%100.0%100.0%100.0%
Tar get
Date
2060
Tar get
Date
2030
Tar get
Date
2035
Tar get
Date
2040
Tar get
Date
2055VanguardComponent Funds
Re ti rement
In come
Tar get
Date
2045
Tar get
Date
2050
Tar get
Date
2015
Tar get
Date
2020
Tar get
Date
2025
Tar get
Date
2010
0%
10%
20%
30%
40%
50%
60%
70%
80%
U.S.Equity Non-U.S.Equity Fixed In come
Re ti rem ent Inc om e
Target Date 2010
Target Date 2015
Target Date 2020
Target Date 2025
Target Date 2030
Target Date 2035
Target Date 2040
Target Date 2045
Target Date 2050
Target Date 2055
Target Date 2060
48
Capital Markets Review
49
Capital Markets Rev iew
Economy
0
10
20
30
40
50
60
0 25 50 75 10 0Probability (%)Fed Rate Increase (bps)
Interest Rate Hike Expectations Fall
4/29/201 5
6/17/201 5
7/29/201 5
9/17/201 5
10/28/20 15
12/16/20 15
1/27/201 6
FOMC
Me etings:
3/31/2015
3/31/2014
Source: Bloomberg
0.5
0.7
0.9
1.1
1.3
1.5
1.7
1.9
2.1
2.3
$/Foreign Currency US D Reaches Multi-Year Highs
$/Euro $/Swiss Franc $/Pound
$/100 Yen $/$CAN
So ur ce: Bloomberg
Interest Rate Hike Delayed as Economic Growth Remains Tepid
•The Federal Reserve maintained its ultra-low interest rate policy,further pushing
back its expected timeline for raising rates.Investors lowered expectations for a
rate increase after the Fed lowered its unemployment rate target to 5.0-5.2%from
5.5%,and cited economic growth’s recent dependency on low rates.Not wanting
to quash economic expansion by raising rates too early remains a tenet of Janet
Yellen’s philosophy.
•The Saudi Arabian plan to maintain market share in the global crude oil market
began to take its toll on U.S.and Canadian oil producers.WTI crude prices fell to
six year lows,prompting drillers to significantly lower their rig counts and layoff
thousands of workers.Although U.S.oil output continued to rise,concerns over
diminishing storage capacity added to the price drop,fueling fears that a global oil
glut might further bring down prices.By quarter end,prices had rebounded to the
mid-$50/barrel range as demand ticked up and expectations of future U.S.
production diminished.
•The euro fell to 2003 levels as it broke the $1.05/€value during April.Long-term
interest rates in Germany,Finland and Switzerland went negative as the ECB
bond-buying program added to the euro’s weakness.The Swiss National Bank
decoupled the Swiss franc from the euro to prevent inflation caused by the weak
euro.The Bank of Canada surprised with a 0.25%rate cut in January,citing a
sharp drop in oil prices as a risk to growth.Greece continued to teeter on the edge
of default as a new government threatened to not repay loans unless payback
terms were eased.European lenders balked at the idea,forcing Greek leaders to
abide by current loan covenants.
25 0
30 0
35 0
40 0
45 0
50 0
Barrels (Millions)U.S.Crude Oil in St or age
So ur ce:D.O.E.
50
-12.0%
-8.0%
-4.0%
0.0%
4.0%
8.0%
12.0%
3.5%
7.6%
5.3%4.9%
3.5%
1.0%
-6.0%
5.2%
2.2%2.0%1.9%
-9.6%
1st Quarter and Trailing One-Year Sector Returns
Capital Markets Rev iew
Equities
1st Quarter 2015 World Equity Returns (USD)
Developed Markets Emerging Markets
10.6%
-13.4%
10.5%
7.9%
3.7%
16.6%
17.3%
12.4%
4.0%
16.8%
27.6%
-4.6%
-2.2%
-0.7%
0.4%
1.0%
1.3%
1.7%
1.8%
1.9%
4.7%
7.8%
-20.0%-10.0%0.0%10.0%20.0%30.0%
Utilities
Energy
Financials
In dustrials
Materials
Cons.Stapl es
In fo Tech
Russell 30 00
Te lecom
Cons. Disc.
Health Care 1Q 15
On e
Year
1.6%
4.3%
-0.7%
2.0%
3.8%
6.6%
12.7%
8.2%
9.3%
4.4%
16.1%
12.1%
-2.0%
0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
12.0%
14.0%
16.0%
18.0%
Russell
1000
In dex
Russell
2000
Index
Russell
1000
Value
Russell
2000
Value
Russell
1000
Growth
Russell
2000
Growth
1Q15 One Year
Russell 1000 Index vs. Russell 2000 Index Central Bank Measures Boost Markets;Strong USD a Hindrance
•The Russell 3000 Index experienced modest gains during the first quarter,
returning 1.8%.Stocks fell sharply to start the quarter as the price of crude oil
continued to fall;however,domestic indices rebounded strongly mid-quarter with
oil price stabilization,positive European economic data,and Fed reassurances
that they were in no hurry to raise interest rates.Equity markets gave back much
of their mid-quarter gains late in the quarter on worse-than-expected U.S.
economic data and a strengthening U.S.dollar.
•After lagging behind in 2014,small-caps outperformed large-caps.Small-cap
indices have less exposure to both the energy sector and foreign currency relative
to large-caps,which shielded them from falling oil prices and a strengthening U.S.
dollar.Additionally,quarterly performance dispersion among growth and value
styles was its largest in more than five years during the first quarter as growth
stocks outpaced value stocks.
•Non-U.S.equities outperformed domestic equities.Aggressive central bank
stimulus action,particularly from the ECB and Bank of Japan,bolstered non-U.S.
equities.However,given the increased stimulus measures and anticipation of the
first U.S.interest rate hike sometime in 2015,most currencies depreciated versus
the U.S.dollar,hindering U.S.dollar-denominated returns.Despite the
strengthening U.S.dollar and weakening commodity prices,emerging market
equities also advanced in U.S.dollar terms.
Broad Va lue Growth
51
Source: Barclays
Source: Barclays
Duration-adjusted Excess Returns to Treasuries (bps) Trailing Ten-Year High Yield Spreads vs. Energy Sector
Capital Markets Rev iew
Fixed Income
Best Period Second Best Period Wors t Period Second W orst Period
2008 2009 2010 2011 2012 2013 2014 1Q15
Aggre ga te -710 746 171 -114 226 93 10 -9
Age ncy -110 288 77 -25 166 1 10 -3
MBS -232 495 225 -106 91 98 40 -50
ABS -2223 2496 169 52 246 24 53 14
CMBS -3274 2960 1501 47 841 97 108 37
Cre dit -1786 1990 192 -322 693 226 -18 17
Hi gh Yield -3832 5955 974 -240 1394 923 -112 109
Em erging -2842 3797 508 -537 1503 -32 -120 49
0
250
500
750
1000
1250
1500
1750
2000
Option-Adjusted Spread (OAS)U.S. High Yie ld - OAS
U.S. HY 10-Year Average
HY Energy - OAS
HY Energy 10-Year Av erage
-1 .2%
-1 .0%
-0 .8%
-0 .6%
-0 .4%
-0 .2%
0.0%
0.2%Change in YieldMa turity (Years)
1Q 15
1 Yr E nd ing 1Q15
US Treasury Yield Curve Change by Maturity
Source: US Dept of The Treasury
Risk Appetite Returns in First Quarter
•All major fixed income sectors generated positive total returns during the first
quarter as continued global central bank accommodation bolstered investor
demand for risk assets.U.S.rates declined across the curve in response to
dovish comments from the Fed,softer domestic economic data,and growing
demand from global investors as many Europeans face negative yields in their
home markets.TIPS lagged nominal Treasuries during the quarter as
inflations expectations remained subdued.
•High yield credit generated the strongest duration-adjusted excess returns to
Treasuries during the quarter.Although the sector remained volatile,high yield
energy spreads tightened after reaching six-year highs in December.Energy
spreads have traded inside the broader high yield segment for much of the past
ten years,but remained considerably wider at quarter-end.
•Within the securitized markets,CMBS and ABS outperformed MBS on a
duration-adjusted basis.MBS lagged due to elevated interest rate volatility and
faster-than-expected prepayment speeds.
•Global government rates generally declined as many central banks eased
policies to stimulate growth,while the U.S.Dollar continued to rally strongly
against most developed and emerging currencies.
52
Capital Markets Review
Hedge Funds
HFRI Index Performance –First Quarter and Trailing 12 Months Hedge Fund Strategies Sought by Investors over the Next 12 Months
Source: Preqin
55%
38%
17%16%13%11%11%
6%5%5%
0%
10%
20%
30%
40%
50%
60%Proportion of Fund Searches5.7%
6.0%
5.4%
4.3%
3.4%
9.5%
1.1%
3.5%
3.0%
-3.6%
1.4%
1.6%
2.4%
2.5%
2.4%
2.4%
3.4%
2.0%
1.7%
2.3%
0.6%
2.1%
-6%-4%-2%0%2%4%6%8%10%12%
BC Aggregate Bond Index
MSCI All-Country World Index
Fund of Fu nds
Hedge Fu nd Composite
Merger Arbitra ge
Gl obal Macro
Event Driven
Equity Market Ne utral
Equity Hedge
Distressed Securities
Converti bl e Arbitrag e
Q1
One
Year
Source: HFR Inc.
Hedge Funds Rise on Macro Trends and Corporate Activity
•Hedge Funds posted their best quarterly performance since the first quarter of
2013,with the HFRI Hedge Fund Composite Index returning 2.4%.All of the
Composites’sub indices,with the exception of the HFRI Equity Hedge:Short
Biased Index,produced positive returns.Managers benefited from trends in
currency and commodity markets as well as continued merger and acquisition
activity.
•Global macro was again the top performing strategy in the first quarter with a return
of 3.4%as CTAs continued to lead the segment.CTAs benefited from trends in oil
and natural gas markets and long exposure to the U.S.dollar as the dollar
continued to appreciate relative to other major currencies.Long/short equity funds
outperformed the S&P 500 for the first time since the fourth quarter 2012.
Managers benefited from increased volatility in global equity markets and corporate
activity,specifically in the health care sector.Distressed was the worst performing
strategy during the quarter as exposure to European stressed and distressed credit
assets dampened results.
•Fund of hedge funds returned 2.5%during the quarter and saw net positive inflows
for the first time since the fourth quarter 2012.Fund of hedge funds managers
benefited from activist investments and sector focused funds,specifically health
care and technology managers.
•The hedge-fund industry saw inflows of $18.2 billion during the first quarter
according to Hedge Fund Research.According to eVestment,hedge fund assets
ended the quarter at a record $2.9 trillion.
Hedge Fund Assets and Flows
-$500 ,000
$0
$500 ,000
$1,0 00,000
$1,5 00,000
$2,0 00,000
$2,5 00,000
$3,0 00,000
Assets ($MM)Net Asse t Flow Estim ated Ass ets
53
NCREIF 3 M on.1 Yr.3 Yrs.5 Yrs.10 Yr s.
NCREIF 3.0%11.8%11.1%12.1%8.4%
Ap artm ents 2.8%10.3%10.7%13.1%8.1%
In dus trials 3.9%13.4%12.1%12.1%8.3%
Offic e 3.1%11.5%10.3%11.3%8.2%
Retail 2.7%13.1%12.5%12.8%9.2%
Hotel 4.3%11.1%9.0%9.5%7.0%
East 2.4%9.3%9.2%9.3%8.0%
Mi dwes t 3.0%11.4%10.6%10.7%7.1%
South 3.2%13.2%12.2%12.3%8.6%
West 3.5%13.6%12.4%13.2%9.1%
20.1x 18.7x17.3x
12.8x
Global U.S.
Capital Markets Review
Real Assets
REIT Valuations Look Expensive
Brent Price Prospects Uncertainty Remains High
Real Estate Return as of December 31, 2014
Real Estate Performs Well; Commodities Prices Suffer
Source: Cohen & Steers
Source: NCREIF
0.1%
5.1%
-7.3%
3.2%
Gl obal U.S.
Price-to-NAV Price/Cash Flow Multiple
5.1%
Curr en t 20 yr Average
Source: IMF, April 2015
Date: March 17, 2015
Brent Price Prospects Uncertainty Remains High •Private real estate returned 3.0%during the fourth quarter and 11.8%during 2014.By
sector,industrial properties experienced the best returns for the quarter and year.By
region,the West and South performed best both in the quarter and year.Low interest
rates and strong property fundamentals contributed to modestly declining cap rates
and property appreciation.During 2014,NCREIF properties appreciated 6.2%on
average.The income return for the year was 5.4%While the income return to real
estate has been declining,it exceeds the yield on core fixed income.
•Following a stellar 2014,U.S.REITs once again outperformed U.S.equities with a
4.8%first quarter return,compared to 1.0%for the S&P 500.Global REITs trailed U.S.
REITs,but still performed strongly with a 4.0%return.Improving European and
Japanese economies are leading to better property fundamentals,while high yields in
comparison to fixed income are attracting capital.Valuations on REITs,however,look
expensive,although yields remain attractive relative to fixed income.
•The Bloomberg Commodity Index declined 6.0%during the first quarter and 27.0%
during the trailing 12 months,led by energy,which returned -8.9%during the quarter
and -48.8%during the trailing 12 months.Rising production,growing stockpiles,and
falling demand have contributed to oil price declines.The Brent futures curve suggests
that oil prices will rise to about $70/barrel sometime in 2016 and about $78/barrel by
December 2020,which implies about a 10%annualized return to oil.One year ago,
the Brent futures curve predicted a decline in oil prices to about $100/barrel currently
and $90/barrel in 2020.Uncertainty,however,remains high.Metals and agricultural
commodities also have declined,but by less.Weaker demand from China has largely
affected metals prices while good weather and strong harvests have put downward
pressure on major crop prices.
54
0
2000
4000
6000
8000
10000
12000
14000
16000
18000
20000
0
5
10
15
20
25
30
35
40
Total Offer Amount ($,Billions)# of IPOsVentu re -B ac ked I PO s #Ventu re -B ac ked I PO s $Value
Venture-Backed IPO ActivityInvestment Horizon Pooled IRR (Preliminary as of 12/31/14)
Fund Type 3 Months 1 Year 3 Years 5 Years 10 Years 20 Years
Early Stage VC 17.0%32.7%23.3%19.9%11.4%53.4%
Late/Expansion Stage VC 4.9%10.4%17.1%20.7%14.0%15.5%
Multi-Stage VC 10.6%20.8%17.8%14.2%10.0%15.5%
Al l Venture Capital 14.0%27.0%21.1%18.2%11.2%34.5%
Small Buyouts 1.3%7.2%10.5%13.6%17.3%13.9%
Medium Buyouts 2.8%8.3%13.7%13.6%17.7%18.4%
Large Buyouts 2.3%9.5%13.6%14.5%15.8%16.7%
Mega Buyouts 2.7%11.4%16.4%15.1%11.3%11.6%
Al l Buyouts 2.6%10.6%15.4%14.8%13.4%14.2%
Mezzanine/Sub Debt 1.0%9.7%12.5%12.4%10.7%10.1%
Distressed 0.8%6.7%14.4%11.9%10.2%11.4%
Al l Private Equity 2.3%11.1%14.9%14.3%12.6%16.2%
MSCI AC World Index 0.5%4.8%15.1%9.8%6.7%6.9%
Capital Markets Rev iew
Pr ivate Equity
Ventu re -B ac ked I PO s #Ventu re -B ac ked I PO s $Value
$0
$20
$40
$60
$80
$100
$120
$140
$,BillionsVC Buyout Rea l A ssets Seconda ry Fu nds Di st re ss ed /SS
Venture-backed IPO Activity Dips Following Banner Year in 2014
•Based on preliminary data as of December 31,2014,the pooled IRR for all
private equity funds exceeded that of the MSCI All Country World Index by 180
basis points during the fourth quarter.For the 2014 calendar year,private
equity funds significantly outperformed global public equity markets.Venture
capital funds performed extremely well in 2014 boosted by a strong IPO
environment.Within the buyout space,large-and mega-cap buyout funds
outperformed their smaller counterparts for the year.
•Private equity fundraising dipped during the first quarter of 2015 compared to
the levels seen in 2014.In total,private equity funds raised approximately $89
billion during 1Q15,a decline of 13%from the prior quarter.However,that total
was just slightly below the amount raised during the same quarter last year and
well above the quarterly averages seen from 2010-2012.
•Venture-backed IPO activity dipped during 1Q15 after completing a banner
year in 2014,the most active year for IPOs since the dot-com bubble in 2000.A
total of 17 venture-backed IPOs with an aggregate offer amount of $1.4 billion
were completed in 1Q15,representing declines of 54%and 58%,respectively,
compared to 1Q14.Additionally,1Q15 ended a string of seven consecutive
quarters with more than 20 IPOs and at least $2.2 billion in aggregate value.
Source: ThomsonOne/Cambridge Associates database, April 2015.
Note: Data is continuously updated and is therefore subject to change.
MSCI AC World Index 0.5%4.8%15.1%9.8%6.7%6.9%
Source: Thomson Reuters, ThomsonOne database, April 2015.
Source: Thomson Reuters & National Venture Capital Association, April 2015.
Global Fundraising
55
Quarter
Year
To
Date
1
Year
2
Years
3
Years
5
Years
7
Years
10
Years
Domestic Equity Indices
Dow Jones Wilshire 5000 1.6 1.6 12.2 17.2 16.2 14.5 9.3 8.4
S&P 500 1.0 1.0 12.7 17.2 16.1 14.5 8.9 8.0
Russell 1000 Index 1.6 1.6 12.7 17.5 16.4 14.7 9.3 8.3
Russell 1000 Growth Index 3.8 3.8 16.1 19.6 16.3 15.6 10.7 9.4
Russell 1000 Value Index -0.7 -0.7 9.3 15.3 16.4 13.8 7.7 7.2
Russell Midcap Index 4.0 4.0 13.7 18.5 18.1 16.2 11.2 10.0
Russell Midcap Growth Index 5.4 5.4 15.6 19.8 17.4 16.4 11.2 10.2
Russell Midcap Value Index 2.4 2.4 11.7 17.2 18.6 15.8 10.9 9.6
Russell 2000 Index 4.3 4.3 8.2 16.3 16.3 14.6 10.5 8.8
Russell 2000 Growth Index 6.6 6.6 12.1 19.4 17.7 16.6 11.9 10.0
Russell 2000 Value Index 2.0 2.0 4.4 13.2 14.8 12.5 8.9 7.5
International Equity Indices
MSCI EAFE 4.9 4.9 -0.9 7.9 9.0 6.2 1.6 4.9
MSCI EAFE Growth Index 5.8 5.8 1.1 7.8 9.0 7.0 2.1 5.6
MSCI EAFE Value Index 3.9 3.9 -2.9 8.1 9.0 5.3 1.0 4.2
MSCI EAFE Small Cap 5.6 5.6 -2.9 9.4 10.7 8.8 4.1 6.2
MSCI AC World Index 2.3 2.3 5.4 10.8 10.7 9.0 4.5 6.4
MSCI AC World ex US 3.5 3.5 -1.0 5.4 6.4 4.8 1.2 5.5
MSCI Emerging Markets Index 2.2 2.2 0.4 -0.5 0.3 1.7 0.6 8.5
Fixed Income Indices
Barclays U.S. Aggregate 1.6 1.6 5.7 2.8 3.1 4.4 4.7 4.9
Barcap Intermediate U.S. Government/Credit 1.4 1.4 3.6 1.7 2.3 3.5 3.8 4.3
Barclays U.S. Long Government/Credit 3.4 3.4 15.7 7.1 7.7 10.2 8.8 7.7
Barclays US Corp: High Yield 2.5 2.5 2.0 4.7 7.5 8.6 9.6 8.2
BofA Merrill Lynch 3 Month U.S. T-Bill 0.0 0.0 0.0 0.0 0.1 0.1 0.3 1.5
Barclays U.S. TIPS 1.4 1.4 3.1 -1.8 0.6 4.3 3.6 4.6
Citigroup Non-U.S. World Government Bond -4.4 -4.4 -9.8 -3.9 -3.3 0.4 0.5 2.5
JPM EMBI Global Diversified (external currency)2.0 2.0 5.6 3.1 5.4 7.1 7.6 8.1
JPM GBI-EM Global Diversified (local currency)-4.0 -4.0 -11.1 -9.2 -3.9 0.7 3.1 6.3
Real Asset Indices
Dow Jones - UBS Commodity -5.9 -5.9 -27.0 -15.5 -11.5 -5.7 -9.6 -3.6
Dow Jones Wilshire REIT 4.7 4.7 25.2 14.4 14.2 16.1 8.6 9.6
Capital Markets Review
Index Returns
As of March 31, 2015
(Percentage Return)
_________________________
Returns for periods greater than one year are annualized.
56