HomeMy Public PortalAbout2015 2nd Quarter ReportPerformance
Review
Metropolitan St. Louis Sewer
District Deferred Compensation
Plan
2nd 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 - June 2015
Second quarter fund returns were modest overall, due to muted performance from the equity markets and declines from the fixed income market. Target date
retirement funds reported mixed performance for the second quarter, with the longer dated funds being the best performers.
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,
Jackson Square, 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. In May 2015, portfolio manager Ian Tabberer left Baillie Gifford and was replaced by co-head of North American equities,
Gary Robinson. 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). Pavilion will continue to monitor both managers for further developments.
Second quarter performance for the active managers in the investment menu was strong in relative terms. Vanguard U.S. Growth, Vanguard Windsor II, and
Vanguard International Growth outperformed their benchmarks by 130, 90 and 60 basis points respectively, as a result of strong stock selection. The Vanguard
Mid Cap and Small Cap Index Funds had negative quarterly returns of -120 basis points and -60 basis points, respectively.
Target retirement date funds modestly trailed their respective benchmarks over longer-term periods.
Deferred Compensation Plan Executive Summary
2
Deferred Compensation Plan Executive Summary
Capital Markets Review
Treasury rates climbed as Fed comments and improved economic data increased market expectations of a rate hike later in 2015. The yield curve steepened
considerably, as 30 year yields increased 57 basis points while 2 year yields moved only eight basis points higher.Performance differences between market caps
and styles were muted during the quarter. Over the trailing one-year period, growth stocks have outperformed significantly due to heavy exposure to the
healthcare and information technology sectors.
U.S. GDP rebounded in the second quarter, though a breakout period of growth remained elusive. Expectations of tepid oil production growth caused crude oil
prices to rebound 25% during the quarter, while Saudi Arabia appeared content with prices near $60/barrel.
The U.S. dollar weakened slightly versus the Euro and Canadian dollar during the quarter. The ongoing Greek tragedy brought a default on an IMF payment as
Greece remained defiant on economic reforms demanded by its creditors. Non-U.S. equities outperformed domestic equities. Most developed country currencies
appreciated versus the USD, benefiting USD-investors.
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)0.3 (45)1.2 (56)7.3 (37)17.1 (44)17.2 (31)7.8 (41)
S&P 500 0.3 (44)1.2 (55)7.4 (36)17.3 (42)17.3 (28)7.9 (38)
Large-Cap Equity Peer Group Median 0.1 1.5 5.8 16.7 16.1 7.4
Vanguard US Growth (VWUSX)1.4 (21)6.0 (25)13.4 (16)20.1 (14)19.0 (21)8.4 (51)
Russell 1000 Growth Index 0.1 (62)4.0 (52)10.6 (47)18.0 (44)18.6 (27)9.1 (35)
Large-Cap Growth Equity Peer Group Median 0.6 4.1 10.2 17.7 17.4 8.4
Vanguard Windsor II (VWNFX)1.0 (19)0.9 (48)4.3 (49)16.2 (56)16.3 (34)7.0 (46)
Russell 1000 Value Index 0.1 (48)-0.6 (77)4.1 (50)17.3 (37)16.5 (30)7.0 (45)
Large-Cap Value Equity Peer Group Median 0.0 0.8 4.1 16.5 15.5 6.9
Vanguard Mid-Cap Index (VIMSX)-1.2 (72)3.0 (58)8.5 (28)19.5 (21)18.1 (25)9.2 (38)
Vanguard Mid-Cap Index Fund Blended Benchmark -1.2 (71)3.1 (57)8.7 (27)19.8 (19)18.3 (22)9.4 (34)
Mid-Cap Equity Peer Group Median -0.2 3.6 5.7 17.4 16.6 8.7
Vanguard Small-Cap Index (NAESX)-0.6 (66)4.1 (46)5.1 (46)18.6 (30)18.0 (26)9.3 (14)
Vanguard Small-Cap Index Fund Blended Benchmark -0.6 (66)4.2 (45)5.2 (45)18.7 (28)18.1 (25)9.4 (14)
Small-Cap Equity Peer Group Median 0.1 3.6 4.2 17.2 16.3 7.9
International Equity Option
Vanguard International Growth (VWIGX)1.1 (58)6.7 (44)-1.6 (35)12.3 (33)10.5 (29)7.0 (22)
MSCI AC World ex USA (Net)0.5 (75)4.0 (87)-5.3 (74)9.4 (80)7.8 (80)5.5 (51)
International Equity Peer Group Median 1.4 6.4 -3.1 11.4 9.3 5.6
Fixed Income Options
Vanguard Total Bond Market Index (VBMFX)-1.8 (77)-0.2 (76)1.6 (37)1.6 (85)3.1 (85)4.3 (68)
Vanguard Total Bond Market Index Fund Benchmark -1.8 (69)-0.1 (64)1.8 (23)1.8 (76)3.4 (74)4.5 (61)
Market Duration Fixed Income Peer Group Median -1.7 0.0 1.4 2.4 3.9 4.6
Vanguard Retirement Savings Trust 0.5 1.0 1.9 1.9 2.3 3.1
Ryan 3 Yr GIC Master 0.3 0.6 1.1 1.1 1.6 2.9
Performance Summary
Investment Options
As of June 30, 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 June 30, 2015
Quarter
Year
To
Date
1
Year
3
Years
5
Years
10
Years
Equity/Fixed Income Blend Options
Vanguard Balanced Index (VBINX)-0.7 (68)1.0 (65)4.9 (24)11.0 (40)11.7 (22)6.9 (16)
Vanguard Balanced Index Fund Benchmark -0.7 (65)1.2 (58)5.1 (22)11.2 (33)11.9 (18)7.1 (13)
60% Equity / 40% Fixed Peer Group Median -0.4 1.4 3.4 10.7 10.9 6.2
Vanguard Target Retirement Income (VTINX)-0.9 (59)0.8 (52)1.9 (14)5.3 (57)6.8 (47)5.2 (27)
Vanguard Target Income Composite Index -0.8 (53)0.9 (43)2.1 (12)5.6 (53)6.9 (42)5.3 (27)
IM Mixed-Asset Target Alloc Consv (MF) Median -0.8 0.8 0.6 5.7 6.7 4.6
Vanguard Target Retirement 2010 (VTENX)-0.8 (83)1.0 (66)2.2 (9)7.0 (51)8.4 (31)N/A
Vanguard Target 2010 Composite Index -0.8 (76)1.1 (61)2.3 (6)7.1 (42)8.5 (27)N/A
IM Mixed-Asset Target 2010 (MF) Median -0.5 1.3 0.8 7.0 7.8 4.5
Vanguard Target Retirement 2015 (VTXVX)-0.6 (54)1.4 (44)2.6 (5)8.8 (19)9.7 (14)5.9 (6)
Vanguard Target 2015 Composite Index -0.6 (45)1.5 (39)2.8 (2)9.0 (12)9.8 (9)6.0 (6)
IM Mixed-Asset Target 2015 (MF) Median -0.6 1.3 1.1 7.9 8.7 4.3
Vanguard Target Retirement 2020 (VTWNX)-0.6 (49)1.6 (39)3.0 (8)10.2 (10)10.7 (9)N/A
Vanguard Target 2020 Composite Index -0.5 (43)1.7 (35)3.2 (4)10.5 (5)10.9 (4)N/A
IM Mixed-Asset Target 2020 (MF) Median -0.6 1.2 1.4 8.0 8.9 4.8
Vanguard Target Retirement 2025 (VTTVX)-0.4 (49)1.8 (45)3.1 (11)11.2 (21)11.5 (25)6.3 (16)
Vanguard Target 2025 Composite Index -0.3 (43)1.9 (40)3.3 (10)11.5 (14)11.8 (14)6.4 (9)
IM Mixed-Asset Target 2025 (MF) Median -0.4 1.6 1.8 10.0 10.4 5.7
Vanguard Target Retirement 2030 (VTHRX)-0.2 (44)2.1 (50)3.2 (19)12.2 (18)12.3 (18)N/A
Vanguard Target 2030 Composite Index -0.2 (40)2.1 (47)3.4 (16)12.5 (12)12.6 (10)N/A
IM Mixed-Asset Target 2030 (MF) Median -0.3 2.1 2.0 10.9 10.9 5.2
Vanguard Target Retirement 2035 (VTTHX)-0.1 (46)2.3 (57)3.3 (24)13.2 (22)13.2 (17)6.8 (16)
Vanguard Target 2035 Composite Index 0.0 (42)2.3 (54)3.5 (20)13.5 (11)13.4 (12)6.9 (11)
IM Mixed-Asset Target 2035 (MF) Median -0.1 2.4 2.4 12.1 12.0 6.1
Vanguard Target Retirement 2040 (VFORX)0.1 (38)2.5 (51)3.3 (26)13.8 (15)13.5 (13)N/A
Vanguard Target 2040 Composite Index 0.2 (33)2.5 (48)3.6 (21)14.1 (9)13.8 (6)N/A
IM Mixed-Asset Target 2040 (MF) Median -0.1 2.5 2.4 12.3 12.1 5.7
_________________________
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 June 30, 2015
Quarter
Year
To
Date
1
Year
3
Years
5
Years
10
Years
Equity/Fixed Income Blend Options (cont.)
Vanguard Target Retirement 2045 (VTIVX)0.1 (42)2.5 (60)3.3 (28)13.8 (23)13.5 (17)7.1 (28)
Vanguard Target 2045 Composite Index 0.2 (36)2.5 (58)3.6 (22)14.1 (14)13.8 (8)7.2 (22)
IM Mixed-Asset Target 2045 (MF) Median 0.0 2.7 2.5 13.0 12.6 6.6
Vanguard Target Retirement 2050 (VFIFX)0.1 (40)2.5 (60)3.3 (29)13.8 (24)13.5 (18)N/A
Vanguard Target 2050 Composite Index 0.2 (38)2.5 (59)3.6 (24)14.1 (16)13.8 (8)N/A
IM Mixed-Asset Target 2050 (MF) Median 0.0 2.7 2.5 13.1 12.6 5.9
Vanguard Target Retirement 2055 (VFFVX)0.1 (58)2.4 (70)3.2 (33)13.8 (32)N/A N/A
Vanguard Target 2055 Composite Index 0.2 (43)2.5 (63)3.6 (24)14.1 (21)13.8 (12)N/A
IM Mixed-Asset Target 2055+ Funds (MF) Median 0.1 2.8 2.7 13.4 12.6 N/A
Vanguard Target Retirement 2060 (VTTSX)0.1 (58)2.4 (69)3.2 (34)13.8 (31)N/A N/A
Vanguard Target 2060 Composite Index 0.2 (43)2.5 (63)3.6 (24)14.1 (21)N/A N/A
IM Mixed-Asset Target 2055+ Funds (MF) Median 0.1 2.8 2.7 13.4 12.6 N/A
Money Market Option
Vanguard Prime Money Market (VMMXX)0.0 0.0 0.0 0.0 0.0 1.5
BofA Merrill Lynch 3 Month U.S. T-Bill 0.0 0.0 0.0 0.1 0.1 1.4
_________________________
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 June 30, 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 June 30, 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)
Vanguard
Ta rget
Re tire ment
2015
(V TXVX)
Vanguard
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 rement
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 June 30, 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
Second 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, Jackson Square,
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. In May
2015, portfolio manager Ian Tabberer left
Baillie Gifford and was replaced by co-
head of North American equities, Gary
Robinson. Additionally, in October
2014, Charles Anniss, CFA, replaced
Greg Aldridge as portfolio manager for
Hold The funds' multimanager approach and other portfolio
managers are unchanged. Pavilion will continue to monitor
the managers for further developments.
Greg Aldridge as portfolio manager for
the portion of the International Growth
Fund managed by M&G Investment
Management Limited (M&G).
11
Plan Assets
12
Plan Summary
Deferred Compensation Plan Assets
As of June 30, 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 $ 6,755,409 13.6%$ (142,764)- 2.1%
Vanguard Windsor II Inv US Large Cap Equit y -Value $ 8,892,484 17.9%$ 85,238 + 1.0%
Vanguard US Growth Inv US Large Cap Equit y -Growth $ 4,649,777 9.4%$ 123,477 + 2.7%
Vanguard M id Cap Index I nv US Mid Cap Equit y -Core $ 2,778,857 5.6%$ 211,487 + 8.2%
Vanguard Small Cap Index Inv US Small Cap Equit y -Core $ 2,389,107 4.8%$ 47,736 + 2.0%
$ 25,465,635 51.3%$ 325,173 + 1.3%
International Equ ity Funds
Vanguard Internat ional Growth Internat ional Equity $ 2,273,614 4.6%$ 44,853 + 2.0%
$ 2,273,614 4.6%$ 44,853 + 2.0%
Fi xed I ncome/Alternative Fu nds
Vanguard T otal Bond M arket Index Inv Market Duration $ 2,453,711 4.9%$ 64,766 + 2.7%
Vanguard Retirement Savings Trust Short Durat ion $ 3,146,675 6.3%$ (92,668)- 2.9%
Vanguard Balanced Index Inv Balanced $ 4,186,404 8.4%$ 25,114 + 0.6%
$ 9,786,789 19.7%$ (2,788)- 0.0%
$ Change
From
Previous Qtr
% C hange
From
Pre vi ous Qtr
$ 9,786,789 19.7%$ (2,788)- 0.0%
Cash
Vanguard Prime M oney Market Cash $ 1,220,476 2.5%$ (40,720)- 3.2%
$ 1,220,476 2.5%$ (40,720)- 3.2%
Ta rge t Date Funds
Vanguard T arget Ret irement Income Inv Blend $ 335,129 0.7%$ 3,553 + 1.1%
Vanguard T arget Ret irement 2010 Inv Blend $ 551,300 1.1%$ (4,561)- 0.8%
Vanguard T arget Ret irement 2015 Inv Blend $ 836,253 1.7%$ (130,605)- 13.5%
Vanguard T arget Ret irement 2020 Inv Blend $ 2,135,700 4.3%$ 63,845 + 3.1%
Vanguard T arget Ret irement 2025 Inv Blend $ 2,400,316 4.8%$ 252,673 + 11.8%
Vanguard T arget Ret irement 2030 Inv Blend $ 998,140 2.0%$ 28,205 + 2.9%
Vanguard T arget Ret irement 2035 Inv Blend $ 1,018,499 2.1%$ 39,172 + 4.0%
Vanguard T arget Ret irement 2040 Inv Blend $ 615,514 1.2%$ 26,158 + 4.4%
Vanguard T arget Ret irement 2045 Inv Blend $ 604,586 1.2%$ 29,749 + 5.2%
Vanguard T arget Ret irement 2050 Inv Blend $ 234,127 0.5%$ 21,863 + 10.3%
Vanguard T arget Ret irement 2055 Inv Blend $ 28,871 0.1%$ 5,516 + 23.6%
Vanguard T arget Ret irement 2060 Inv Blend $ 20,380 0.0%$ 2,015 + 11.0%
9,778,814$ 19.7%337,583$ + 3.6%
Loan Fund
Loan Fund Loan Fund $ 1,155,291 2.3%$ (63,589)- 5.2%
TO TA L $ 49,680,619 100.0%$ 600,512 + 1.2%
13
Plan Summary
Fee Comparison Summary
As of June 30, 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 1.1 0.93 0.15 La rg e Blend eVestment US Pa ssive La rg e Cap Equity
Va nguard US Gro wt h 0.44 1.18 0.93 0.83 La rge Gro wth La rg e Cap No Lo ad US Large Cap Gr owth
Va nguard Windsor 0.36 1.14 0.93 0.82 La rge Value La rg e Cap No Lo ad US Large Cap Va lu e
Va nguard Mid-Ca p Index 0.23 1.1 1.07 0.24 Mid Ble nd Mid Cap No Lo ad US Passive Mid Cap Equity
Va nguard Sma ll-Ca p Index 0.23 1.24 1.16 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 1.28 1.06 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 0.81 0.68 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 0.23 0.89 0.9 0.77 Moderate Allo cation Moderate Allo cation No Load US Ba la nced
Va nguard Target Retirement Income 0.16 0.55 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 0.47 0.7 0.55 Target Date 2000-2010 Target Retireme nt 2000-2010 No Lo ad Life cycle/Target Date 2010Vanguard Target Retirement 2010 0.16 0.47 0.7 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 0.55 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 0.5 0.84 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 0.56 0.83 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 0.51 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 0.57 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 0.51 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 0.54 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 0.44 0.88 0.46 Target Date 2051+Target Retireme nt 2051+ No Lo ad Life cycle/Target Date 2055
Va nguard Target Retirement 2060 0.18 0.44 0.88 N/A Target Date 2051+Target Retireme nt 2051+ No Lo ad N/A
Va nguard Prime Money Marke t 0.16 0.13 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 (Jul-2010 - Jun-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)0.3 1.2 7.3 17.1 17.2 7.8 13.5 32.2 15.8 2.0 14.9 26.5 -37.0 5.4 15.6 4.8
S&P 500 0.3 1.2 7.4 17.3 17.3 7.9 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 0.1 1.5 5.8 16.7 16.1 7.4 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 45 56 37 44 31 41 17 52 38 23 40 57 46 56 33 63
Vanguard 500 Index Fund (VFINX)S&P 500
0
25
50
75
100Return Percentile Rank9/05 9/06 9/07 9/08 9/09 9/10 9/11 9/12 9/13 9/14 6/15 Cumulative Annualized Over/Under Relative Performance
Over/Under Performance
0.0
0.2
-0.2
-0.4Return (%)9/05 9/06 9/07 9/08 9/09 9/10 9/11 9/12 9/13 9/14 6/15
Return
Standard
Deviation
Excess
Return Alpha Beta
Sharpe
Ratio
Tracking
Error
Information
Ratio
Downside
Risk Consistency
Inception
Date
Vanguard 500 Index Fund (VFINX)17.2 12.4 16.9 -0.1 1.0 1.4 0.0 -11.7 6.3 0.0 38y 10m
S&P 500 17.3 12.4 17.0 0.0 1.0 1.4 0.0 N/A 6.3 0.0 38y 10m
90 Day U.S. Treasury Bill 0.1 0.0 0.0 0.1 0.0 N/A 12.4 -1.4 0.0 15.0 38y 10m
Manager Evaluation
Vanguard 500 Index Fund (VFINX) vs. S&P 500
As of June 30, 2015
16
Portfolio Characteristics
Portfolio Benchmark
Wtd. Avg. Mkt. Cap ($M)133,784 133,863
Median Mkt. Cap ($M)17,911 17,911
Price/Earnings ratio 19.2 19.2
Price/Book ratio 3.1 3.1
5 Yr. EPS Growth Rate (%)13.3 12.8
Current Yield (%)2.1 2.1
Debt to Equity 1.3 1.3
Number of Stocks 506 502
Beta (5 Years, Monthly)1.00 1.00
Consistency (5 Years, Monthly)1.67 1.00
Sharpe Ratio (5 Years, Monthly)1.39 1.41
Information Ratio (5 Years, Monthly)-10.28 -
Up Market Capture (5 Years, Monthly)99.59 -
Down Market Capture (5 Years, Monthly)100.44 -
Top Ten Equity Holdings
Portfolio
Weight
(%)
Benchmark
Weight
(%)
Active
Weight
(%)
Quarterly
Return
(%)
Apple Inc 4.0 4.0 0.0 1.2
Microsoft Corp 2.0 2.0 0.0 9.3
Exxon Mobil Corp 1.9 1.9 0.0 -1.3
Johnson & Johnson 1.5 1.5 0.0 -2.4
General Electric Co 1.5 1.5 0.0 8.0
Wells Fargo & Co 1.5 1.5 0.0 4.1
JPMorgan Chase & Co 1.4 1.4 0.0 12.6
Berkshire Hathaway Inc 1.3 1.4 -0.1 -5.7
Procter & Gamble Co (The)1.2 1.2 0.0 -3.7
Pfizer Inc 1.1 1.1 0.0 -2.8
% of Portfolio 17.2 17.3
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
51.6
32.5
15.5
0.4
51.5
32.5
15.6
0.4
Sector Weights (%)
Vanguard 500 Index Fund (VFINX)S&P 500
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
2.8
2.3
3.2
19.7
10.1
15.4
16.5
7.9
9.4
12.8
2.8
2.3
3.1
19.7
10.1
15.4
16.5
7.9
9.4
12.8
Manager Evaluation
Vanguard 500 Index Fund (VFINX) vs. S&P 500
As of June 30, 2015
17
Historical Performance
Buy and Hold Attribution
Risk and Return (Jul - 2010 - Jun - 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)1.0 0.9 4.3 16.2 16.3 7.0 11.2 30.7 16.7 2.7 10.6 27.1 -36.7 2.2 18.2 7.0
Russell 1000 Value Index 0.1 -0.6 4.1 17.3 16.5 7.0 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 0.0 0.8 4.1 16.5 15.5 6.9 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 19 48 49 56 34 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 Rank9/05 9/06 9/07 9/08 9/09 9/10 9/11 9/12 9/13 9/14 6/15 16.0
16.2
16.4
16.6
16.8
Return (%)12.0 12.3 12.6 12.9 13.2 13.5 13.8
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
-2.9
0.5
0.3
-2.5
4.2
-1.0
2.0
-8.2
-1.8
1.4
4.9
3.1
Allocation
(Total: 0.0)
0.0 0.2 0.4-0.2-0.4
0.2
0.0
0.0
0.0
0.0
0.0
0.0
-0.1
0.1
0.0
-0.1
0.0
Stock
(Total: 1.0)
0.0 0.6 1.2 1.8-0.6-1.2
0.0
-0.1
0.0
0.0
-0.1
-0.2
-0.2
0.8
0.4
0.2
0.1
0.0
Vanguard Windsor II (VWNFX)
0.0 0.4 0.8 1.2-0.4-0.8
0.2
0.0
0.0
0.0
-0.1
-0.2
-0.1
0.7
0.5
0.1
0.0
0.0
Manager Evaluation
Vanguard Windsor II (VWNFX) vs. Russell 1000 Value Index
As of June 30, 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)107,933 107,214
Median Mkt. Cap ($M)21,176 8,159
Price/Earnings ratio 16.6 17.0
Price/Book ratio 2.4 2.1
5 Yr. EPS Growth Rate (%)8.1 7.5
Current Yield (%)2.6 2.5
Debt to Equity 1.5 0.7
Number of Stocks 267 684
Beta (5 Years, Monthly)0.98 1.00
Consistency (5 Years, Monthly)48.33 1.00
Sharpe Ratio (5 Years, Monthly)1.30 1.30
Information Ratio (5 Years, Monthly)-0.09 -
Up Market Capture (5 Years, Monthly)98.68 -
Down Market Capture (5 Years, Monthly)98.29 -
Top Ten Equity Holdings
Portfolio
Weight
(%)
Benchmark
Weight
(%)
Active
Weight
(%)
Quarterly
Return
(%)
JPMorgan Chase & Co 3.1 2.4 0.7 12.6
Pfizer Inc 2.8 2.0 0.8 -2.8
Microsoft Corp 2.8 1.5 1.3 9.3
Medtronic PLC 2.7 1.0 1.7 -4.5
Wells Fargo & Co 2.6 2.5 0.1 4.1
Citigroup Inc 2.4 1.6 0.7 7.3
Anthem Inc 2.2 0.3 1.9 6.7
General Dynamics Corp 2.2 0.3 1.9 5.4
PNC Financial Services Group Inc.2.2 0.5 1.7 3.1
Target Corp 2.1 0.5 1.7 0.1
% of Portfolio 25.0 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
44.7
27.1
22.7
5.5
0.0
48.2
32.0
14.0
2.7 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
3.0
2.6
0.6
13.0
9.0
16.7
22.8
8.7
8.6
11.6
0.0
0.0
5.7
2.5
3.0
11.0
10.2
11.8
29.6
14.2
6.7
5.4
Manager Evaluation
Vanguard Windsor II (VWNFX) vs. Russell 1000 Value Index
As of June 30, 2015
*Manager characteristics are updated through 03/31/2015 as current quarter data was not available at the time of report production.
19
Historical Performance
Buy and Hold Attribution
Risk and Return (Jul - 2010 - Jun - 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)1.4 6.0 13.4 20.1 19.0 8.4 13.1 35.5 18.4 -0.7 11.5 35.0 -37.8 10.1 1.8 11.2
Russell 1000 Growth Index 0.1 4.0 10.6 18.0 18.6 9.1 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 0.6 4.1 10.2 17.7 17.4 8.4 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 21 25 16 14 21 51 24 41 16 48 83 40 46 75 90 17
Vanguard US Growth (VWUSX)Russell 1000 Growth Index
0
25
50
75
100Return Percentile Rank9/05 9/06 9/07 9/08 9/09 9/10 9/11 9/12 9/13 9/14 6/15 18.0
18.5
19.0
19.5
20.0
Return (%)12.0 12.5 13.0 13.5 14.0 14.5 15.0 15.5
Risk (Standard Deviation %)
Russell 1000 Growth Index
Vanguard US Growth (VWUSX)
Average Active Weight
0.0 6.0 12.0-6.0-12.0
Utilities
Telecommunication Services
Other
Materials
Information Technology
Industrials
Health Care
Financials
Energy
Consumer Staples
Consumer Discretionary
Cash
-0.1
-1.6
0.0
-2.5
4.8
-6.1
0.4
2.5
0.1
-3.5
2.1
3.8
Allocation
(Total: 0.5)
0.0 0.2 0.4 0.6-0.2-0.4
0.0
0.1
0.0
0.0
0.0
0.3
0.0
-0.1
0.0
0.1
0.1
0.0
Stock
(Total: 0.4)
0.0 0.7 1.4-0.7-1.4
0.0
0.0
0.0
0.0
0.6
0.3
0.0
0.1
0.0
-0.1
-0.5
0.0
Vanguard US Growth (VWUSX)
0.0 0.5 1.0 1.5-0.5-1.0
0.0
0.1
0.0
0.0
0.6
0.6
0.0
0.1
0.0
0.0
-0.5
0.0
Manager Evaluation
Vanguard US Growth (VWUSX) vs. Russell 1000 Growth Index
As of June 30, 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)105,289 128,063
Median Mkt. Cap ($M)22,959 9,279
Price/Earnings ratio 25.5 22.6
Price/Book ratio 4.5 5.6
5 Yr. EPS Growth Rate (%)20.1 18.8
Current Yield (%)1.1 1.5
Debt to Equity 0.4 1.7
Number of Stocks 161 644
Beta (5 Years, Monthly)1.10 1.00
Consistency (5 Years, Monthly)55.00 1.00
Sharpe Ratio (5 Years, Monthly)1.33 1.45
Information Ratio (5 Years, Monthly)0.18 -
Up Market Capture (5 Years, Monthly)106.51 -
Down Market Capture (5 Years, Monthly)113.18 -
Top Ten Equity Holdings
Portfolio
Weight
(%)
Benchmark
Weight
(%)
Active
Weight
(%)
Quarterly
Return
(%)
Apple Inc 4.3 6.8 -2.5 1.2
MasterCard Inc 3.7 0.9 2.8 8.4
Actavis PLC 3.1 0.5 2.6 2.0
Celgene Corp 2.7 0.9 1.8 0.4
Microsoft Corp 2.5 1.9 0.6 9.3
Priceline Group Inc (The)2.4 0.6 1.8 -1.1
Google Inc (Class C)2.0 1.5 0.6 -4.8
Walgreens Boots Alliance Inc 2.0 0.1 1.9 0.1
Gilead Sciences Inc 1.9 1.6 0.3 19.7
eBay Inc.1.9 0.7 1.2 4.4
% of Portfolio 26.4 15.4
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
45.2
31.6
19.9
3.3
0.0
40.3
33.1
20.7
2.1 3.7
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
3.7
0.0
0.5
1.3
33.2
5.7
17.0
7.4
4.5
6.7
20.0
0.0
0.0
0.0
1.8
3.9
27.1
11.1
18.3
5.2
1.0
10.5
21.0
Manager Evaluation
Vanguard US Growth (VWUSX) vs. Russell 1000 Growth Index
As of June 30, 2015
*Manager characteristics are updated through 03/31/2015 as current quarter data was not available at the time of report production.
21
Historical Performance
Three Year Rolling Percentile Ranking Relative Performance
Historical Statistics (Jul-2010 - Jun-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)-1.2 3.0 8.5 19.5 18.1 9.2 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 -1.2 3.1 8.7 19.8 18.3 9.4 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 -0.2 3.6 5.7 17.4 16.6 8.7 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 72 58 28 21 25 38 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 Rank9/05 9/06 9/07 9/08 9/09 9/10 9/11 9/12 9/13 9/14 6/15
Cumulative Annualized Over/Under Relative Performance
Over/Under Performance
0.0
0.2
-0.2
-0.4Return (%)9/05 9/06 9/07 9/08 9/09 9/10 9/11 9/12 9/13 9/14 6/15
Return
Standard
Deviation
Excess
Return Alpha Beta
Sharpe
Ratio
Tracking
Error
Information
Ratio
Downside
Risk Consistency
Inception
Date
Vanguard Mid-Cap Index Fund (VIMSX)18.1 15.2 18.1 -0.2 1.0 1.2 0.1 -3.4 8.9 0.0 17y 1m
Vanguard Mid-Cap Index Fund Blended Benchmark 18.3 15.2 18.3 0.0 1.0 1.2 0.0 N/A 8.9 0.0 17y 1m
90 Day U.S. Treasury Bill 0.1 0.0 0.0 0.1 0.0 N/A 15.2 -1.2 0.0 25.0 17y 1m
Manager Evaluation
Vanguard Mid-Cap Index Fund (VIMSX) vs. Vanguard Mid-Cap Index Fund Blended Benchmark
As of June 30, 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)12,013 11,980
Median Mkt. Cap ($M)9,299 9,288
Price/Earnings ratio 21.4 21.5
Price/Book ratio 3.2 3.2
5 Yr. EPS Growth Rate (%)16.0 15.8
Current Yield (%)1.4 1.4
Debt to Equity 1.6 1.6
Number of Stocks 372 371
Beta (5 Years, Monthly)1.02 1.00
Consistency (5 Years, Monthly)35.00 1.00
Sharpe Ratio (5 Years, Monthly)1.28 1.33
Information Ratio (5 Years, Monthly)-0.49 -
Up Market Capture (5 Years, Monthly)99.89 -
Down Market Capture (5 Years, Monthly)102.87 -
Top Ten Equity Holdings
Portfolio
Weight
(%)
Benchmark
Weight
(%)
Active
Weight
(%)
Quarterly
Return
(%)
Biomarin Pharmaceutical Inc 0.7 0.7 0.0 9.8
Cerner Corp 0.7 0.7 0.0 -5.7
O'Reilly Automotive Inc 0.7 0.7 0.0 4.5
AvalonBay Communities Inc.0.7 0.6 0.0 -7.5
Monster Beverage Corp 0.6 0.6 0.0 -3.2
Ross Stores Inc 0.6 0.6 0.0 -7.5
Skyworks Solutions Inc 0.6 0.6 0.0 6.1
Electronic Arts Inc.0.6 0.6 0.0 13.1
Fiserv Inc.0.6 0.6 0.0 4.3
Constellation Brands Inc 0.6 0.6 0.0 0.1
% of Portfolio 6.3 6.2
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
8.1
89.6
2.28.2
89.6
2.2
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
4.7
1.1
6.0
15.9
12.5
11.1
17.5
6.3
5.7
19.3
4.6
1.1
6.2
15.8
12.4
11.0
17.4
6.4
5.9
19.1
Manager Evaluation
Vanguard Mid-Cap Index Fund (VIMSX) vs. CRSP U.S. Mid Cap TR Index
As of June 30, 2015
23
Historical Performance
Three Year Rolling Percentile Ranking Relative Performance
Historical Statistics (Jul-2010 - Jun-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)-0.6 4.1 5.1 18.6 18.0 9.3 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 -0.6 4.2 5.2 18.7 18.1 9.4 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 0.1 3.6 4.2 17.2 16.3 7.9 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 66 46 46 30 26 14 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 Rank9/05 9/06 9/07 9/08 9/09 9/10 9/11 9/12 9/13 9/14 6/15
Cumulative Annualized Over/Under Relative Performance
Over/Under Performance
0.0
0.2
0.4
-0.2
-0.4Return (%)9/05 9/06 9/07 9/08 9/09 9/10 9/11 9/12 9/13 9/14 6/15
Return
Standard
Deviation
Excess
Return Alpha Beta
Sharpe
Ratio
Tracking
Error
Information
Ratio
Downside
Risk Consistency
Inception
Date
Vanguard Small-Cap Index Fund (NAESX)18.0 16.7 18.3 -0.1 1.0 1.1 0.0 -3.2 10.0 10.0 47y 5m
Vanguard Small-Cap Index Fund Blended Benchmark 18.1 16.7 18.4 0.0 1.0 1.1 0.0 N/A 10.0 0.0 47y 5m
90 Day U.S. Treasury Bill 0.1 0.0 0.0 0.1 0.0 N/A 16.7 -1.1 0.0 25.0 47y 5m
Manager Evaluation
Vanguard Small-Cap Index Fund (NAESX) vs. Vanguard Small-Cap Index Fund Blended Benchmark
As of June 30, 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)3,579 3,578
Median Mkt. Cap ($M)1,902 1,902
Price/Earnings ratio 20.4 20.4
Price/Book ratio 2.6 2.6
5 Yr. EPS Growth Rate (%)14.0 14.0
Current Yield (%)1.5 1.5
Debt to Equity 0.3 0.3
Number of Stocks 1,486 1,476
Beta (5 Years, Monthly)1.02 1.00
Consistency (5 Years, Monthly)30.00 1.00
Sharpe Ratio (5 Years, Monthly)1.13 1.18
Information Ratio (5 Years, Monthly)-0.59 -
Up Market Capture (5 Years, Monthly)99.95 -
Down Market Capture (5 Years, Monthly)103.32 -
Top Ten Equity Holdings
Portfolio
Weight
(%)
Benchmark
Weight
(%)
Active
Weight
(%)
Quarterly
Return
(%)
WhiteWave Foods Co (The)0.3 0.3 0.0 10.2
Rite Aid Corp.0.3 0.3 0.0 -3.9
Goodyear Tire & Rubber Co 0.3 0.3 0.0 11.6
Arthur J. Gallagher & Co.0.3 0.3 0.0 2.0
United Therapeutics Corp 0.3 0.3 0.0 0.9
Acuity Brands Inc.0.3 0.3 0.0 7.1
Spirit Aerosystems Holdings Inc 0.3 0.3 0.0 5.6
SVB Financial Group 0.3 0.3 0.0 13.3
HCC Insurance Holdings Inc.0.3 0.3 0.0 36.1
Gannett Co Inc.0.3 0.3 0.0 6.7
% of Portfolio 2.6 2.6
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
22.3
77.7
22.4
77.6
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
3.7
0.4
5.1
16.9
15.0
12.4
24.5
4.0
3.4
14.6
3.7
0.4
5.1
16.9
15.0
12.4
24.6
3.9
3.4
14.6
Manager Evaluation
Vanguard Small-Cap Index (NAESX) vs. CRSP U.S. Small Cap TR Index
As of June 30, 2015
25
Historical Performance
Buy and Hold Attribution
Risk and Return (Jul - 2010 - Jun - 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)1.1 6.7 -1.6 12.3 10.5 7.0 -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)0.5 4.0 -5.3 9.4 7.8 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 1.4 6.4 -3.1 11.4 9.3 5.6 -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 58 44 35 33 29 22 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 Rank9/05 9/06 9/07 9/08 9/09 9/10 9/11 9/12 9/13 9/14 6/15 3.0
6.0
9.0
12.0
15.0
Return (%)13.6 14.4 15.2 16.0 16.8 17.6 18.4 19.2
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
-3.1
-1.5
-2.6
7.6
2.5
-0.7
-2.8
-4.3
-4.4
7.4
1.9
Allocation
(Total: -0.5)
0.0 0.2-0.2-0.4-0.6
0.0
0.0
0.0
-0.2
0.0
0.0
0.0
-0.1
0.0
-0.1
0.0
Stock
(Total: 0.4)
0.0 0.4 0.8-0.4-0.8
0.0
0.0
0.4
0.4
-0.3
-0.1
-0.1
0.0
0.2
-0.1
0.0
0.0 0.3 0.6 0.9-0.3-0.6-0.9
0.0
-0.1
0.4
0.2
-0.3
-0.1
-0.2
-0.1
0.2
-0.1
0.0
Manager Evaluation
Vanguard International Growth (VWIGX) vs. MSCI AC World ex USA (Net)
As of June 30, 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 0.8-0.2-0.4-0.6-0.8
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
0.4
0.0
0.1
-0.1
-0.3
0.0
0.0
-0.2
0.0
Performance Attribution
Average Active Weight
0.0 5.0 10.0-5.0-10.0-15.0
Pacific
Other
North America
Middle East
Frontier Markets
Europe ex EMU
EMU
EM Latin America
EM Europe + Middle East + Africa
EM Asia
Cash
-6.7
0.1
-3.2
0.6
0.7
4.1
4.1
-1.0
-2.5
1.8
1.9
Allocation
(Total: 0.0)
0.0 0.1 0.2-0.1-0.2-0.3
0.0
0.0
0.0
0.0
0.1
0.1
-0.1
0.0
0.0
0.0
0.0
Stock
(Total: -0.1)
0.0 0.3 0.6-0.3-0.6
0.0
0.0
0.3
0.0
0.0
-0.1
-0.2
0.1
0.0
-0.2
0.0
Manager Evaluation
Vanguard International Growth (VWIGX) vs. MSCI AC World ex USA (Net)
1 Quarter Ending June 30, 2015
27
Portfolio Characteristics
Portfolio Benchmark
Wtd. Avg. Mkt. Cap ($M)57,180 55,401
Median Mkt. Cap ($M)21,345 7,498
Price/Earnings ratio 18.5 15.5
Price/Book ratio 2.9 2.1
5 Yr. EPS Growth Rate (%)16.3 11.2
Current Yield (%)1.8 3.0
Debt to Equity 1.1 1.3
Number of Stocks 175 1,843
Beta (5 Years, Monthly)1.07 1.00
Consistency (5 Years, Monthly)53.33 1.00
Sharpe Ratio (5 Years, Monthly)0.67 0.56
Information Ratio (5 Years, Monthly)0.78 -
Up Market Capture (5 Years, Monthly)108.33 -
Down Market Capture (5 Years, Monthly)96.05 -
Top Ten Equity Holdings
Portfolio
Weight
(%)
Benchmark
Weight
(%)
Active
Weight
(%)
Quarterly
Return
(%)
Tencent Holdings LTD 3.5 0.6 2.9 5.3
AIA Group Ltd 3.2 0.4 2.7 4.7
Fiat Chrysler Automobiles NV 2.5 0.1 2.4 -10.0
Baidu Inc 2.3 0.0 2.3 -4.5
Amazon.com Inc 2.1 0.0 2.1 16.7
Industria De Diseno Textil Inditex SA 2.1 0.2 1.9 2.2
Arm Holdings PLC 2.1 0.1 2.0 -0.2
Softbank Corp 2.1 0.3 1.8 1.2
Smc Corp 2.0 0.1 1.9 0.8
Prudential PLC 1.5 0.3 1.2 -2.9
% of Portfolio 23.3 2.1
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
24.4
38.1
30.6
6.9
0.0
26.1
39.6
27.2
5.2
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
3.6
5.3
15.6
12.9
8.4
24.4
2.7
5.7
19.1
0.0
3.4
5.2
7.5
7.4
11.0
9.0
27.8
7.0
9.9
11.8
Manager Evaluation
Vanguard International Growth (VWIGX) vs. MSCI AC World ex USA (Net)
As of June 30, 2015
*Manager characteristics are updated through 03/31/2015 as current quarter data was not available at the time of report production.
28
Vanguard
International Growth
(VWIGX)
MSCI AC World ex
USA (Net)
Australia 1.4 4.9
Hong Kong 5.8 3.9
Japan 12.1 16.4
New Zealand 0.0 0.1
Singapore 0.4 1.0
Pacific 19.7 26.3
Austria 0.0 0.1
Belgium 0.0 0.9
Finland 0.6 0.6
France 6.4 6.6
Germany 6.2 6.3
Ireland 0.9 0.3
Italy 4.8 1.7
Netherlands 1.2 2.2
Portugal 0.2 0.1
Spain 5.2 2.5
EMU 25.5 21.2
Denmark 2.1 1.2
Norway 1.1 0.5
Sweden 4.6 2.1
Switzerland 6.7 6.6
United Kingdom 13.8 14.5
Europe ex EMU 28.3 24.9
Canada 1.7 6.7
United States 2.2 0.0
Israel 1.0 0.4
Middle East 1.0 0.4
Developed Markets 78.5 79.6
Vanguard
International Growth
(VWIGX)
MSCI AC World ex
USA (Net)
Brazil 1.1 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 2.3 3.1
China 8.5 3.8
India 2.4 1.7
Indonesia 0.3 0.5
Korea 2.1 3.1
Malaysia 0.0 0.7
Philippines 0.0 0.3
Taiwan 1.0 2.8
Thailand 0.6 0.5
EM Asia 14.9 13.3
Czech Republic 0.0 0.0
Egypt 0.0 0.0
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 0.2
EM Europe + Middle East + Africa 1.2 3.8
Emerging Markets 18.4 20.2
Frontier Markets 0.8 0.0
Cash 1.9 0.0
Other 0.4 0.2
Total 100.0 100.0
Manager Evaluation
Vanguard International Growth (VWIGX) vs. MSCI AC World ex USA (Net)
As of June 30, 2015
29
Historical Performance
Three Year Rolling Percentile Ranking Relative Performance
Historical Statistics (Jul-2010 - Jun-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)-1.8 -0.2 1.6 1.6 3.1 4.3 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 -1.8 -0.1 1.8 1.8 3.4 4.5 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 -1.7 0.0 1.4 2.4 3.9 4.6 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 77 76 37 85 85 68 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 Rank9/05 9/06 9/07 9/08 9/09 9/10 9/11 9/12 9/13 9/14 6/15
Cumulative Annualized Over/Under Relative Performance
Over/Under Performance
0.0
0.3
0.6
-0.3
-0.6Return (%)9/05 9/06 9/07 9/08 9/09 9/10 9/11 9/12 9/13 9/14 6/15
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)3.1 3.1 3.1 -0.3 1.0 1.0 0.2 -1.5 1.5 25.0 28y 6m
Vanguard Total Bond Market Index Fund Benchmark 3.4 3.0 3.3 0.0 1.0 1.1 0.0 N/A 1.4 0.0 28y 6m
90 Day U.S. Treasury Bill 0.1 0.0 0.0 0.1 0.0 N/A 3.0 -1.1 0.0 25.0 28y 6m
Manager Evaluation
Vanguard Total Bond Market Index Fund (VBMFX) vs. Vanguard Total Bond Market Index Fund Benchmark
As of June 30, 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 5.7 5.7
Avg. Maturity 7.9 7.9
Avg. Quality AA AA+
Yield To Maturity (%)2.3 2.3
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
AAAAAABBB68.2
4.9
12.8 14.1
69.3
3.9
12.8 14.0
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
26.5
20.9
36.3
4.2
12.1
1.7
25.8
19.5
36.2
4.9
11.9
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-USEmergingOtherCMBS40.2
4.3
22.2 20.3
0.6
7.5
2.7 0.0 2.2
40.1
3.2
26.4
22.4
0.6
6.8
0.0 0.5 0.0
Manager Evaluation
Vanguard Total Bond Market Index (VBMFX) vs. Barclays U.S. Aggregate Float Adjusted
As of June 30, 2015
31
Historical Performance
Three Year Rolling Percentile Ranking Relative Performance
Historical Statistics (Jul-2010 - Jun-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 1.0 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 0.6 1.1 1.1 1.6 2.9 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 0.0 0.6 0.5 1.1 1.6 2.9 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 1 16 1 15 20 33 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 Rank9/05 9/06 9/07 9/08 9/09 9/10 9/11 9/12 9/13 9/14 6/15 Cumulative Annualized Over/Under Relative Performance
Over/Under Performance
0.0
0.6
1.2
1.8
-0.6
-1.2Return (%)9/05 9/06 9/07 9/08 9/09 9/10 9/11 9/12 9/13 9/14 6/15
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 1.2 0.6 8.7 0.2 3.6 0.0 90.0 12y 6m
Ryan 3 Yr GIC Master 1.6 0.4 1.6 0.0 1.0 4.3 0.0 N/A 0.0 0.0 12y 6m
90 Day U.S. Treasury Bill 0.1 0.0 0.0 0.0 0.1 N/A 0.4 -4.3 0.0 0.0 12y 6m
Manager Evaluation
Vanguard Retirement Savings Trust vs. Ryan 3 Yr GIC Master
As of June 30, 2015
32
Historical Performance
Three Year Rolling Percentile Ranking Relative Performance
Historical Statistics (Jul-2010 - Jun-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)-0.7 1.0 4.9 11.0 11.7 6.9 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 -0.7 1.2 5.1 11.2 11.9 7.1 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 -0.4 1.4 3.4 10.7 10.9 6.2 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 68 65 24 40 22 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 Rank9/05 9/06 9/07 9/08 9/09 9/10 9/11 9/12 9/13 9/14 6/15
Cumulative Annualized Over/Under Relative Performance
Over/Under Performance
0.0
0.4
0.8
-0.4
-0.8Return (%)9/05 9/06 9/07 9/08 9/09 9/10 9/11 9/12 9/13 9/14 6/15
Return
Standard
Deviation
Excess
Return Alpha Beta
Sharpe
Ratio
Tracking
Error
Information
Ratio
Downside
Risk Consistency
Inception
Date
Vanguard Balanced Index Fund (VBINX)11.7 7.5 11.4 -0.1 1.0 1.5 0.2 -1.2 3.5 25.0 22y 7m
Vanguard Balanced Index Fund Benchmark 11.9 7.5 11.6 0.0 1.0 1.5 0.0 N/A 3.6 0.0 22y 7m
90 Day U.S. Treasury Bill 0.1 0.0 0.0 0.1 0.0 N/A 7.5 -1.5 0.0 15.0 22y 7m
Manager Evaluation
Vanguard Balanced Index Fund (VBINX) vs. Vanguard Balanced Index Fund Benchmark
As of June 30, 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)103,524 108,212
Median Mkt. Cap ($M)1,238 927
Price/Earnings ratio 19.5 19.5
Price/Book ratio 3.0 3.0
5 Yr. EPS Growth Rate (%)13.8 15.1
Current Yield (%)1.9 1.9
Debt to Equity 1.2 1.2
Number of Stocks 3,389 3,803
Beta (5 Years, Monthly)0.58 1.00
Consistency (5 Years, Monthly)35.00 1.00
Sharpe Ratio (5 Years, Monthly)1.57 1.37
Information Ratio (5 Years, Monthly)-1.05 -
Up Market Capture (5 Years, Monthly)61.91 -
Down Market Capture (5 Years, Monthly)53.28 -
Top Ten Equity Holdings
Portfolio
Weight
(%)
Benchmark
Weight
(%)
Active
Weight
(%)
Quarterly
Return
(%)
Apple Inc 3.1 3.2 -0.1 1.2
Exxon Mobil Corp 1.5 1.5 -0.1 -1.3
Microsoft Corp 1.4 1.4 -0.1 9.3
Johnson & Johnson 1.2 1.2 0.0 -2.4
Wells Fargo & Co 1.1 1.2 0.0 4.1
JPMorgan Chase & Co 1.1 1.1 0.0 12.6
General Electric Co 1.1 1.2 -0.1 8.0
Berkshire Hathaway Inc 1.0 0.7 0.3 -5.7
Pfizer Inc 0.9 0.9 0.0 -2.8
Procter & Gamble Co (The)0.9 0.9 -0.1 -3.7
% of Portfolio 13.1 13.4
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
41.3
26.9
19.6
12.2
0.0
39.4
25.9
18.5
11.8
4.3
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
Other
Cash
Utilities
Telecommunication Services
Materials
Information Technology
Industrials
Health Care
Financials
Energy
Consumer Staples
Consumer Discretionary
0.0
4.3
2.8
2.0
3.3
18.3
10.3
14.6
17.1
6.9
7.8
12.6
0.0
0.0
2.9
2.0
3.5
19.1
10.8
15.3
17.8
7.2
8.2
13.2
Manager Evaluation
Vanguard Balanced Index Fund (VBINX) - Equity Holdings vs. CRSP U.S. Total Market TR Index
As of June 30, 2015
34
Portfolio Characteristics
Portfolio Benchmark
Effective Duration 5.7 5.7
Avg. Maturity 7.9 7.9
Avg. Quality AA+AA+
Yield To Maturity (%)2.3 2.3
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
AAAAAABBB68.2
4.9
12.8 14.1
69.1
3.8
12.8 14.3
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
26.5
20.9
36.3
4.2
12.1
0.0
22.8
17.1
21.6
8.5
30.0
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-USEmergingOtherCMBS40.2
4.3
22.2 20.3
0.6
7.5
2.7 0.0 2.2
40.2
3.2
26.4
20.3
3.2 5.8
0.0 0.9 0.0
Manager Evaluation
Vanguard Balanced Index Fund (VBINX) - Fixed Income Holdings vs. Barclays U.S. Aggregate Float Adjusted
As of June 30, 2015
35
Historical Performance
Three Year Rolling Percentile Ranking Risk and Return (Jul-2010 - Jun-2015)
Historical Statistics (Jul-2010 - Jun-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)-0.9 0.8 1.9 5.3 6.8 5.2 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 -0.8 0.9 2.1 5.6 6.9 5.3 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 -0.8 1.0 2.5 7.1 7.7 5.4 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 61 59 65 91 78 57 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 Rank9/05 9/06 9/07 9/08 9/09 9/10 9/11 9/12 9/13 9/14 6/15
6.4
6.6
6.8
7.0
7.2
Return (%)3.8 3.9
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)6.8 3.9 6.6 -0.1 1.0 1.7 0.1 -1.3 1.5 30.0 11y 8m
Vanguard Target Income Composite Index 6.9 3.9 6.7 0.0 1.0 1.7 0.0 N/A 1.5 0.0 11y 8m
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 8m
Manager Evaluation
Vanguard Target Retirement Income (VTINX) vs. Vanguard Target Income Composite Index
As of June 30, 2015
36
Historical Performance
Three Year Rolling Percentile Ranking Risk and Return (Jul-2010 - Jun-2015)
Historical Statistics (Jul-2010 - Jun-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)-0.8 1.0 2.2 7.0 8.4 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 -0.8 1.1 2.3 7.1 8.5 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 -0.7 1.0 2.5 7.8 8.4 5.5 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 61 48 58 79 50 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 Rank9/05 9/06 9/07 9/08 9/09 9/10 9/11 9/12 9/13 9/14 6/15
8.2
8.3
8.4
8.5
8.6
Return (%)5.7 5.8 5.9
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)8.4 5.8 8.2 -0.1 1.0 1.4 0.1 -0.9 2.8 30.0 9y
Vanguard Target 2010 Composite Index 8.5 5.8 8.3 0.0 1.0 1.4 0.0 N/A 2.8 0.0 9y
90 Day U.S. Treasury Bill 0.1 0.0 0.0 0.1 0.0 N/A 5.8 -1.4 0.0 25.0 9y
Manager Evaluation
Vanguard Target Retirement 2010 (VTENX) vs. Vanguard Target 2010 Composite Index
As of June 30, 2015
37
Historical Performance
Three Year Rolling Percentile Ranking Risk and Return (Jul-2010 - Jun-2015)
Historical Statistics (Jul-2010 - Jun-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)-0.6 1.4 2.6 8.8 9.7 5.9 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 -0.6 1.5 2.8 9.0 9.8 6.0 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 -0.4 1.3 3.3 10.0 10.1 6.1 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 64 47 64 79 67 57 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 Rank9/05 9/06 9/07 9/08 9/09 9/10 9/11 9/12 9/13 9/14 6/15
9.4
9.6
9.8
10.0
Return (%)7.2 7.3
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)9.7 7.3 9.5 -0.1 1.0 1.3 0.1 -0.9 3.8 25.0 11y 8m
Vanguard Target 2015 Composite Index 9.8 7.3 9.6 0.0 1.0 1.3 0.0 N/A 3.8 0.0 11y 8m
90 Day U.S. Treasury Bill 0.1 0.0 0.0 0.1 0.0 N/A 7.3 -1.3 0.0 25.0 11y 8m
Manager Evaluation
Vanguard Target Retirement 2015 (VTXVX) vs. Vanguard Target 2015 Composite Index
As of June 30, 2015
38
Historical Performance
Three Year Rolling Percentile Ranking Risk and Return (Jul-2010 - Jun-2015)
Historical Statistics (Jul-2010 - Jun-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)-0.6 1.6 3.0 10.2 10.7 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 -0.5 1.7 3.2 10.5 10.9 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 -0.3 1.5 3.5 11.5 11.4 6.4 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 65 48 59 79 72 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 Rank9/05 9/06 9/07 9/08 9/09 9/10 9/11 9/12 9/13 9/14 6/15
10.2
10.5
10.8
11.1
11.4
Return (%)8.2 8.3 8.4 8.5
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)10.7 8.4 10.6 -0.3 1.0 1.3 0.2 -1.4 4.6 25.0 9y
Vanguard Target 2020 Composite Index 10.9 8.3 10.8 0.0 1.0 1.3 0.0 N/A 4.5 0.0 9y
90 Day U.S. Treasury Bill 0.1 0.0 0.0 0.1 0.0 N/A 8.3 -1.3 0.0 25.0 9y
Manager Evaluation
Vanguard Target Retirement 2020 (VTWNX) vs. Vanguard Target 2020 Composite Index
As of June 30, 2015
39
Historical Performance
Three Year Rolling Percentile Ranking Risk and Return (Jul-2010 - Jun-2015)
Historical Statistics (Jul-2010 - Jun-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)-0.4 1.8 3.1 11.2 11.5 6.3 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 -0.3 1.9 3.3 11.5 11.8 6.4 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 -0.2 1.6 3.9 12.2 12.1 6.5 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 60 45 66 76 69 58 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 Rank9/05 9/06 9/07 9/08 9/09 9/10 9/11 9/12 9/13 9/14 6/15
11.1
11.4
11.7
12.0
12.3
Return (%)9.3 9.4 9.5
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)11.5 9.4 11.4 -0.3 1.0 1.2 0.2 -1.2 5.3 30.0 11y 8m
Vanguard Target 2025 Composite Index 11.8 9.4 11.7 0.0 1.0 1.2 0.0 N/A 5.2 0.0 11y 8m
90 Day U.S. Treasury Bill 0.1 0.0 0.0 0.1 0.0 N/A 9.4 -1.2 0.0 20.0 11y 8m
Manager Evaluation
Vanguard Target Retirement 2025 (VTTVX) vs. Vanguard Target 2025 Composite Index
As of June 30, 2015
40
Historical Performance
Three Year Rolling Percentile Ranking Risk and Return (Jul-2010 - Jun-2015)
Historical Statistics (Jul-2010 - Jun-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)-0.2 2.1 3.2 12.2 12.3 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 -0.2 2.1 3.4 12.5 12.6 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 -0.2 1.8 4.1 13.7 13.3 6.9 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 54 40 64 79 75 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 Rank9/05 9/06 9/07 9/08 9/09 9/10 9/11 9/12 9/13 9/14 6/15
12.0
12.3
12.6
12.9
Return (%)10.3 10.4 10.5 10.6
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)12.3 10.5 12.3 -0.3 1.0 1.2 0.2 -1.0 6.0 40.0 9y
Vanguard Target 2030 Composite Index 12.6 10.4 12.5 0.0 1.0 1.2 0.0 N/A 5.9 0.0 9y
90 Day U.S. Treasury Bill 0.1 0.0 0.0 0.1 0.0 N/A 10.4 -1.2 0.0 20.0 9y
Manager Evaluation
Vanguard Target Retirement 2030 (VTHRX) vs. Vanguard Target 2030 Composite Index
As of June 30, 2015
41
Historical Performance
Three Year Rolling Percentile Ranking Risk and Return (Jul-2010 - Jun-2015)
Historical Statistics (Jul-2010 - Jun-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)-0.1 2.3 3.3 13.2 13.2 6.8 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 0.0 2.3 3.5 13.5 13.4 6.9 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 -0.1 1.9 4.4 14.4 13.9 7.0 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 45 41 66 73 73 62 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 Rank9/05 9/06 9/07 9/08 9/09 9/10 9/11 9/12 9/13 9/14 6/15
12.6
12.9
13.2
13.5
13.8
Return (%)11.3 11.4 11.5 11.6 11.7
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)13.2 11.6 13.2 -0.3 1.0 1.1 0.3 -0.8 6.7 40.0 11y 8m
Vanguard Target 2035 Composite Index 13.4 11.5 13.4 0.0 1.0 1.2 0.0 N/A 6.6 0.0 11y 8m
90 Day U.S. Treasury Bill 0.1 0.0 0.0 0.1 0.0 N/A 11.4 -1.2 0.0 15.0 11y 8m
Manager Evaluation
Vanguard Target Retirement 2035 (VTTHX) vs. Vanguard Target 2035 Composite Index
As of June 30, 2015
42
Historical Performance
Three Year Rolling Percentile Ranking Risk and Return (Jul-2010 - Jun-2015)
Historical Statistics (Jul-2010 - Jun-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)0.1 2.5 3.3 13.8 13.5 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 0.2 2.5 3.6 14.1 13.8 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 0.0 2.1 4.6 15.0 14.6 7.2 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 43 41 68 73 76 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 Rank9/05 9/06 9/07 9/08 9/09 9/10 9/11 9/12 9/13 9/14 6/15
12.9
13.2
13.5
13.8
14.1
14.4
Return (%)11.6 11.7 11.8 11.9 12.0
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)13.5 11.9 13.5 -0.3 1.0 1.1 0.2 -0.9 6.9 40.0 9y
Vanguard Target 2040 Composite Index 13.8 11.8 13.7 0.0 1.0 1.2 0.0 N/A 6.8 0.0 9y
90 Day U.S. Treasury Bill 0.1 0.0 0.0 0.1 0.0 N/A 11.7 -1.2 0.0 15.0 9y
Manager Evaluation
Vanguard Target Retirement 2040 (VFORX) vs. Vanguard Target 2040 Composite Index
As of June 30, 2015
43
Historical Performance
Three Year Rolling Percentile Ranking Risk and Return (Jul-2010 - Jun-2015)
Historical Statistics (Jul-2010 - Jun-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)0.1 2.5 3.3 13.8 13.5 7.1 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 0.2 2.5 3.6 14.1 13.8 7.2 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 0.0 2.1 4.6 15.0 14.6 7.2 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 44 41 68 74 76 53 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 Rank9/05 9/06 9/07 9/08 9/09 9/10 9/11 9/12 9/13 9/14 6/15
13.2
13.5
13.8
14.1
Return (%)11.7 11.8 11.9
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)13.5 11.8 13.5 -0.3 1.0 1.1 0.2 -0.9 6.9 40.0 11y 8m
Vanguard Target 2045 Composite Index 13.8 11.8 13.7 0.0 1.0 1.2 0.0 N/A 6.8 0.0 11y 8m
90 Day U.S. Treasury Bill 0.1 0.0 0.0 0.1 0.0 N/A 11.7 -1.2 0.0 15.0 11y 8m
Manager Evaluation
Vanguard Target Retirement 2045 (VTIVX) vs. Vanguard Target 2045 Composite Index
As of June 30, 2015
44
Historical Performance
Three Year Rolling Percentile Ranking Risk and Return (Jul-2010 - Jun-2015)
Historical Statistics (Jul-2010 - Jun-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)0.1 2.5 3.3 13.8 13.5 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 0.2 2.5 3.6 14.1 13.8 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 0.0 2.1 4.6 15.0 14.6 7.2 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 42 68 73 76 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 Rank9/05 9/06 9/07 9/08 9/09 9/10 9/11 9/12 9/13 9/14 6/15
12.9
13.2
13.5
13.8
14.1
14.4
Return (%)11.6 11.7 11.8 11.9 12.0
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)13.5 11.9 13.5 -0.3 1.0 1.1 0.2 -0.9 6.9 40.0 9y
Vanguard Target 2050 Composite Index 13.8 11.8 13.7 0.0 1.0 1.2 0.0 N/A 6.8 0.0 9y
90 Day U.S. Treasury Bill 0.1 0.0 0.0 0.1 0.0 N/A 11.7 -1.2 0.0 15.0 9y
Manager Evaluation
Vanguard Target Retirement 2050 (VFIFX) vs. Vanguard Target 2050 Composite Index
As of June 30, 2015
45
Historical Performance
Three Year Rolling Percentile Ranking Risk and Return (Oct-2010 - Jun-2015)
Historical Statistics (Oct-2010 - Jun-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)0.1 2.4 3.2 13.8 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 0.2 2.5 3.6 14.1 13.8 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 0.0 2.1 4.6 15.0 14.6 7.2 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 47 43 69 74 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 Rank9/05 9/06 9/07 9/08 9/09 9/10 9/11 9/12 9/13 9/14 6/15
11.4
11.6
11.8
12.0
12.2
Return (%)11.3 11.4 11.5 11.6
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)11.7 11.5 11.8 -0.3 1.0 1.0 0.2 -0.8 7.0 31.6 4y 9m
Vanguard Target 2055 Composite Index 11.9 11.4 12.0 0.0 1.0 1.1 0.0 N/A 6.9 0.0 4y 9m
90 Day U.S. Treasury Bill 0.1 0.0 0.0 0.1 0.0 N/A 11.4 -1.1 0.0 15.8 4y 9m
Manager Evaluation
Vanguard Target Retirement 2055 (VFFVX) vs. Vanguard Target 2055 Composite Index
As of June 30, 2015
46
Historical Performance
Three Year Rolling Percentile Ranking Risk and Return (Apr-2012 - Jun-2015)
Historical Statistics (Feb-2012 - Jun-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)0.1 2.4 3.2 13.8 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 0.2 2.5 3.6 14.1 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 0.0 2.1 4.6 15.0 14.6 7.2 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 46 43 69 73 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 Rank9/05 9/06 9/07 9/08 9/09 9/10 9/11 9/12 9/13 9/14 6/15
11.0
11.2
11.4
11.6
11.8
12.0
Return (%)6.7 6.8 6.9 7.0
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 5m
Vanguard Target 2060 Composite Index 14.2 8.0 13.8 0.0 1.0 1.7 0.0 N/A 2.2 0.0 3y 5m
90 Day U.S. Treasury Bill 0.1 0.0 0.0 0.1 0.0 N/A 8.0 -1.7 0.0 14.3 3y 5m
Manager Evaluation
Vanguard Target Retirement 2060 (VTTSX) vs. Vanguard Target 2060 Composite Index
As of June 30, 2015
47
Manager Evaluation
Ta rget-Date Funds Asset Allocation
As of June 30, 2015
U.S.Equi ty 18.8%22.3%31.6%38.5%44.2%48.4%53.9%57.2%57.1%56.5%54.2%54.0%
Va nguard Total St ock M arke t Index Fu nd 18.8%22.3%31.6%38.5%44.2%48.4%53.9%57.2%57.1%56.5%54.2%54.0%
Non-U.S . Equ ity 10.9%12.6%17.4%20.7%23.9%25.9%28.1%32.5%32.9%33.5%35.8%36.0%
Va nguard Total In ternational Stock In dex F und 10.9%12.6%17.4%20.7%23.9%25.9%28.1%32.5%32.9%33.5%35.8%36.0%
Fi xe d In come 70.3%65.1%51.0%40.8%31.9%25.7%18.0%10.3%10.0%10.0%10.0%10.0%
Va nguard Total Bo nd Marke t II In dex F und 37.7%35.7%30.2%29.4%22.6%18.2%12.7%7.2%7.0%7.0%7.0%6.9%
Va nguard Total In ternational Bo nd Index Fu nd 15.8%14.7%12.5%11.3%9.3%7.5%5.3%3.1%3.0%3.0%3.0%3.1%
Va nguard Infla tion-Pro tected Securit ie s Fund 16.8%14.7%8.3%0.1%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%
Vanguard Compo ne nt 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
Tar get
Date
2060
Tar get
Date
2030
Tar get
Date
2035
Tar get
Date
2040
Tar get
Date
2055
0%
10%
20%
30%
40%
50%
60%
70%
80%
U.S.Equity Non-U.S.Equity Fi xed In come
Retirement Incom 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
U.S. Economy Grows, Greece Rattles World Markets Again
•U.S.GDP rebounded in the second quarter,though a breakout period of growth
5
10
15
20
25
30
Jan-12May-12Sep-12Jan-13May-13Sep-13Jan-14May-14Sep-14Jan-15May-15$ BillionsMo nthly Crude Oil Imp ort Values
U.S.
China
So ur ce: Bloomberg -3
-2
-1
0
1
2
3
4
5
6
7
1990199219941996199820002002200420062008201020122014PercentConsumer Price Index
CPICoreCPI
So ur ce: Bur eau of Labo r St at ist ics
•U.S.GDP rebounded in the second quarter,though a breakout period of growth
remained elusive.The domestic energy sector stayed cautious,wary of increasing
drilling activity following Saudi Arabia’s assertion as the dominant oil producer and
controller of prices,which inflicted injury upon U.S.drillers.Expectations of tepid
oil production growth caused crude oil prices to rebound 25%during the quarter,
while Saudi Arabia appeared content with prices near $60/barrel.
•After the west coast ports resumed operations,railroads saw container shipments
increase,bringing volumes to multi-year highs.While west coast port volumes
rebounded to near normal levels,east coast port volumes surged as shippers’
frustration over recent west coast ports labor strikes pushed their resolve to avoid
costly bottlenecks and utilize alternative shipping routes .On the flipside,demand
for metals fell sharply as a result of decreased oil drilling and exploration.Steel
and ore prices fell as Chinese steel overcapacity drove down global prices.The
shift of electricity production to natural gas and renewables in the U.S.and
economic weakness in Asia drove coal production sharply lower.China’s
slowdown is emblematic of global economic weakness outside the U.S.as
countries struggle with debt and austerity.
•The U.S.dollar weakened slightly versus the Euro and Canadian dollar during the
quarter.The ongoing Greek tragedy brought a default on an IMF payment as
Greece remained defiant on economic reforms demanded by its creditors.Though
Greece likely will receive a third bailout in July,fear shook markets worldwide as
negotiations in June unraveled and the Greek banking system ground to a halt.
-1 0
-5
0
5
10
15
20
25
30
35
Jul-03Jul-04Jul-05Jul-06Jul-07Jul-08Jul-09Jul-10Jul-11Jul-12Jul-13Jul-14Percent (Y to Y)Chinese Ports' Freight Vo lu me
So ur ce: Bl oomberg
50
-3.0%
-2.0%
-1.0%
0.0%
1.0%
2.0%
3.0%
4.0%
5.0%
6.0%
7.0%
0.3%
1.1%
0.6%0.4%0.3%
-0.9%-1.4%
4.3%
3.5%
1.9%
0.7%
-0.2%
2nd Quarter and Trailing One-Year Sector Returns
Capital Markets Rev iew
Equities
2nd Quarter 2015 World Equity Returns (USD)
Developed Markets Emerging Markets
-3.9%
1.7%
-24.3%
9.5%
-2.3%
7.3%
11.2%
9.1%
14.7%
1.7%
26.5%
-6.3%
-2.5%
-1.9%
-1.6%
-1.0%
0.1%
0.2%
1.1%
1.4%
1.6%
3.4%
-30.0%-20.0%-10.0%0.0%10.0%20.0%30.0%
Utilities
In dustrials
Energy
Cons.Stapl es
Materials
Russell 30 00
In fo Tech
Financials
Cons. Disc.
Te lecom
Health Care 2Q 15
On e
Year
0.1%0.4%0.1%
-1.2%
0.1%
2.0%
7.4%
6.5%
4.1%
0.8%
10.6%
12.3%
-2.0%
0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
12.0%
14.0%
Russell
1000
In dex
Russell
2000
Index
Russell
1000
Value
Russell
2000
Value
Russell
1000
Growth
Russell
2000
Growth
2Q15 One Year
Russell 1000 Index vs. Russell 2000 Index Rattled Over Greek Debt Worries,Equity Markets Eke Out a Gain
•The Russell 3000 Index advanced for the twelfth consecutive quarter,gaining
0.1%despite a significant pullback near the end of June.Domestic equity markets
were on track for solid quarterly gains as stronger-than-expected corporate
earnings reports,improving U.S.economic data,and dovish Fed comments
regarding the pace of future interest rate hikes helped boost markets.However,
concerns over Greek debt negotiations derailed equity markets and inspired a
significant pullback.The healthcare and consumer discretionary sectors fared
best,boosted by M&A activity,while the interest rate sensitive utilities sector
struggled with dividend yields appearing less attractive amid rising interest rates.
•Performance differences between market caps and styles were muted during the
quarter.Over the trailing one-year period,growth stocks have outperformed
significantly due to heavy exposure to the healthcare and information technology
sectors.
•Non-U.S.equities outperformed domestic equities.Most developed country
currencies appreciated versus the USD,benefiting USD-investors.Policy actions
by central banks boosted international equity markets early in the quarter;
however,renewed concerns regarding Greece and the potential impacts a default
on its debt would have,drove a significant sell-off towards quarter-end.Emerging
markets equities outperformed developed markets as speculation grew that the
Fed would delay an initial interest rate hike until later this year,thus decreasing
the risk of significant capital outflows from the developing world.
Broad Value Growth
51
Source: Barclays
Source: Barclays
Duration-adjusted Excess Returns to Treasuries (bps) Cumulative Year-to-Date Total Returns
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 2Q15
Ag gre ga te -710 746 171 -114 226 93 10 -9 -19
Ag ency -110 288 77 -25 166 1 10 -3 19
MBS -232 495 225 -106 91 98 40 -50 5
ABS -2223 2496 169 52 246 24 53 14 21
CM BS -3274 2960 1501 47 841 97 108 37 -31
Credit -1786 1990 192 -322 693 226 -18 17 -67
Hi gh Yield -3832 5955 974 -240 1394 923 -112 109 69
Em erging -2842 3797 508 -537 1503 -32 -120 49 196 -4 .0%
-3 .0%
-2 .0%
-1 .0%
0.0%
1.0%
2.0%
3.0%
4.0%
5.0%
6.0%YTD Total ReturnDa te
US Agg US Cre di t High Yi el d
Global Agg EMD (USD)MBS
0.0%
0.5%
1.0%
1.5%
2.0%
2.5%
3.0%
3.5%
4.0%
0 5 10 15 20 25 30Yield to MaturityMaturity (Ye ars)
6/30/2014 3/31/2015 6/30/2015
US Treasury Yield Curve Change
Source: US Dept of The Treasury
Fixed Income Markets Skittish as Macro Headlines Dominate
•Most fixed income sectors ended the quarter with negative total returns,driven
by higher yields and wider spreads.Treasury rates climbed as Fed comments
and improved economic data increased market expectations of a rate hike later
in 2015.The yield curve steepened considerably,as 30 year yields increased
57 basis points while 2 year yields moved only eight basis points higher.The
10-year yield touched an intra-quarter high of 2.50%following a sudden backup
in German Bund rates in early June.Spread volatility also spiked in June on
fears of a potential Greek exit from the Eurozone,coupled with Chinese growth
concerns at the end of the quarter.
•Investment grade corporate spreads increased 16 basis points during the
quarter.In addition to macro-driven risk-off sentiment,the sector was
hampered by heavy new issuance as companies issued debt ahead of a
potential Fed rate hike,as well as increased M&A-related issuance.High yield
spreads widened as well;however,the sector’s yield advantage insulated
spread/rate moves and helped to generate positive excess returns on a
duration-adjusted basis.
•Within the securitized markets,ABS generated positive total returns,buoyed by
the sector’s short duration and high quality nature.MBS slightly outperformed
duration-matched Treasuries as rising rates reduced supply.
52
-0.1%
3.0%
2.6%
2.5%
3.1%
-0.3%
2.6%
2.4%
4.1%
0.6%
3.4%
-1.7%
0.5%
0.1%
0.3%
0.9%
-3.5%
0.8%
0.8%
2.0%
-0.2%
1.3%
-6%-4%-2%0%2%4%6%8%10%12%
BC Aggregate Bond Index
MSCI All-Country World Index
Fu nd of Fu nds
Hedge Fund Composite
Merger Arbitrage
Gl obal Macro
Event Driven
Equity Market Ne utral
Equity Hedge
Dist resse d Securities
Convertibl e Arbitrag e
Q2
YTD
Capital Markets Review
Hedge Funds
HFRI Index Performance –Second Quarter and YTD 2015 Net Exposure and Net Leverage Has Declined Over the Past Year
Equity Long Short and Market Neutral Strategies
Macroeconomic Volatility Causes Limited Hedge Fund Gains
Source: JPM Prime Brokerage
Source: HFR Inc.
Macroeconomic Volatility Causes Limited Hedge Fund Gains
•Hedge fund manager performance was positive across all strategies during the
second quarter with the exception of global macro and distressed.Hedge funds
(+0.1%)provided mixed results compared to broad market indices as they
underperformed the MSCI All-Country World Index (+0.5%)but outperformed the
Barclays Capital Aggregate Bond Index (-0.1%).Equity hedge (+2.0%)and
convertible arbitrage (+1.3%)managers were the top performing strategies during
the quarter.
•Stock dispersion and corporate activity continued to benefit equity and event driven
managers during the quarter.Equity hedge fund managers also benefited from
decreased net exposure as volatility increased throughout the quarter.Global
macro managers suffered from a weaker dollar in April and Ma y.Additionally,global
macro managers’long exposure to European equities dampened returns as Greece
dragged on equity markets in June.
•According to Preqin,investor search activity for hedge funds increased by 35%in
the second quarter compared to the first quarter.New interest is being attributed to
the belief that hedge funds can take advantage of opportunities in China,Greece,
and oil.Additionally,investors are moving some fixed income assets to hedge fund
strategies as a way to protect against a potential Federal Reserve rate hike.
•The hedge-fund industry saw inflows of $21.5 billion during the second quarter
bringing total industry assets to a record $2.97 trillion according to Hedge Fund
Research.The bulk of new commitments went to hedge funds with more than $5
billion in assets under management.These firms raised $15.7 billion in new capital.
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 Estimated Ass ets
53
NCREIF 3 M on.1 Yr.3 Yrs.5 Yrs.10 Yrs.
NCREIF 3.6%12.7%11.5%12.8%8.4%
Ap artm ents 2.8%11.0%10.7%13.6%8.1%
In dus trials 3.5%14.2%12.4%12.7%8.3%
Offic e 3.3%10.6%10.3%11.8%8.2%
Retail 4.9%13.8%13.3%13.6%9.2%
Ho tel 2.5%13.0%9.3%10.2%7.1%
Eas t 3.0%10.4%9.5%11.9%7.9%
Mi dwes t 3.3%12.2%10.9%11.4%7.2%
South 4.2%14.1%12.8%13.1%8.7%
West 3.8%14.4%12.7%13.8%9.1%
Capital Markets Review
Real Assets
Real Estate Returns as of First Quarter 2015
Private Real Estate Performs Well While REITs Decline; Commodities
Source: NCREIF
0
1
2
3
4
5
Japan Continental
Europe
United
Kingdom
Australia U.S.Sing apore Hong KongPercentCurrent S pr ea d 10 Ye ar Average Spread
Global Real Estate Capitalization Rates Spread to Regional 10-Year
Government Bond Rates
Source: Cohen & Steers
Private Real Estate Performs Well While REITs Decline; Commodities
Prices Rebound
•Private real estate returned 3.6%during the first quarter of 2015 and 12.7%
during the trailing 12 months.By sector,retail 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,a strengthening economy and
strong property fundamentals contributed to modestly declining cap rates and
property appreciation.During the past three and five year periods,income and
appreciation have been about equal contributors to the returns from real estate.
Although the income return to real estate has fallen,it exceeds the yield on core
fixed income.
•In sympathy with other high yielding equities,REITs performed poorly during the
second quarter on concerns over rising interest rates.The FTSE NAREIT All
Equity REIT Index declined 9.1%.Global REITS declined 6.7%,with both Asia
and Europe outperforming the U.S.Concerns about rising interest rates and
their impact on REITs cost of capital weighed on the sector.
•On signs of a strengthening economy,globally sourced crude oil prices
rebounded 18%during the second quarter,contributing strongly to the 8.7%
second quarter S&P GSCI return.Agricultural commodity prices increased while
industrial and precious metals prices generally declined.Year to date,the S&P
GSCI returned -0.2%.Commodity price volatility has climbed substantially
during the past year,driven by oil price volatility,where the standard deviation of
monthly returns during the past year rose to 37%.
NCREIF Quarter YT D 1 Year 3 Ye ars
S&P GS Commodity Index 8.7%-0.2%-36.8%-10.7%
S&P GSCI E nergy 13.0%3.0%-45.5%-12.5%
S&P GSCI O il 18.1%-1.2%-48.6%-14.1%
S&P GSCI N atural Gas 2.5%-7.9%-44.5%-11.5%
S&P GSCI In dus trial Metals -5.5%-10.3%-6.7%-14.5%
S&P GSCI P recious Me tals -1.7%-1.2%-13.6%-11.4%
S&P GSCI Ag rigultural 9.6%-1.0%-13.1%-9.9%
Commodity Returns –Periods Ended June 30, 2015
Source: Morningstar
54
$0
$20
$40
$60
$80
$100
$120
0
200
400
600
800
1000
1200
Aggregate Value ($,Billions)# of PE-Backed Deals# o f P E-Ba ck ed Dea ls Aggr eg ate V alue of PE-Bac ke d Dea ls
Private-Equity Backed Deal ActivityInvestment Horizon Pooled IRR (As of 3/31/15)
Fund Type 3 Months 1 Year 3 Years 5 Years 10 Years 20 Years
Early Stage VC 4.3%25.4%19.9%18.5%10.8%52.7%
Late/Expansion Stage VC 3.9%8.7%13.9%16.7%13.2%10.4%
Multi-Stage VC 3.2%20.6%17.6%15.3%10.6%12.4%
Al l Venture Capital 3.9%22.4%18.6%17.2%10.9%27.7%
Small Buyouts 0.4%5.0%9.8%13.5%17.3%14.4%
Medium Buyouts -0.3%6.6%10.2%11.5%14.3%15.4%
Large Buyouts -0.3%5.4%11.6%13.8%13.8%15.6%
Mega Buyouts 2.5%9.2%15.3%15.4%11.2%11.0%
Al l Buyouts 1.3%7.7%13.3%14.3%12.6%13.1%
Mezzanine/Sub Debt -0.1%7.1%10.9%11.2%10.8%10.0%
Distressed 1.6%5.7%12.2%11.4%10.3%11.3%
Al l Private Equity 1.6%8.8%13.1%13.8%12.0%14.3%
MSCI AC World Index 2.4%6.0%11.4%9.7%7.0%6.9%
Capital Markets Rev iew
Pr ivate Equity
# o f P E-Ba ck ed Dea ls Aggr eg ate V alue of PE-Bac ke d Dea ls
$0
$10
$20
$30
$40
$50
$60
$0
$20
$40
$60
$80
$100
$120
$140
Amount Raised by Fund Type ($, Billions)Total Raised ($,Billions)Tota l R ais ed VC Buyout
Rea l A ssets Seconda ry Fu nds Di st re ss ed /SS
LP Commitments to Private Equity Funds Increased in 2Q15
•Based on data as of March 31,2015,the pooled IRR for all private equity funds
lagged that of the MSCI All Country World Index by 80 basis points during the
first quarter.For the trailing one-year period,private equity outperformed global
public equity markets by 280 basis points.Venture capital significantly
outperformed other fund types as venture funds are predominantly focused on
the strong performing health care and information technology sectors.
•The second quarter of 2015 saw an improvement in global private equity
fundraising relative to the first quarter.In total,private equity funds raised
nearly $107 billion in 2Q15,a 13%rise from the prior quarter and the second
highest quarterly total since the financial crisis.All fund types experienced
increases with the exception of secondary funds.Venture capital funds
experienced the largest percentage improvement on the heels of favorable
performance and strength in the venture-backed exit environment.
•Investment activity by private equity funds was mixed during the second
quarter.According to Preqin,the number of private equity-backed buyout deals
declined from 830 in 1Q15 to 765 in 2Q15,but the aggregate value of deals
stood at $99 billion in 2Q15,in line with the prior quarter’s post-crisis peak.
Europe saw the biggest increase in aggregate deal value,with two of the
quarter’s five largest deals involving companies in Western Europe.
Source: ThomsonOne/Cambridge Associates database, July 2015.
Note: Data is continuously updated and is therefore subject to change.
MSCI AC World Index 2.4%6.0%11.4%9.7%7.0%6.9%
Source: Thomson Reuters, ThomsonOne database, July 2015.
Source: Preqin
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 0.1 1.7 7.1 15.7 17.4 17.3 9.5 8.1
S&P 500 0.3 1.2 7.4 15.7 17.3 17.3 9.4 7.9
Russell 1000 Index 0.1 1.7 7.4 16.0 17.7 17.6 9.6 8.1
Russell 1000 Growth Index 0.1 4.0 10.6 18.5 18.0 18.6 10.5 9.1
Russell 1000 Value Index 0.1 -0.6 4.1 13.5 17.3 16.5 8.6 7.0
Russell Midcap Index -1.5 2.4 6.6 16.3 19.3 18.2 10.5 9.4
Russell Midcap Growth Index -1.1 4.2 9.5 17.5 19.2 18.7 10.3 9.7
Russell Midcap Value Index -2.0 0.4 3.7 15.1 19.1 17.7 10.6 8.9
Russell 2000 Index 0.4 4.8 6.5 14.7 17.8 17.1 10.4 8.4
Russell 2000 Growth Index 2.0 8.7 12.3 18.4 20.1 19.3 11.5 9.9
Russell 2000 Value Index -1.2 0.8 0.8 11.1 15.5 14.8 9.3 6.9
International Equity Indices
MSCI EAFE 0.6 5.5 -4.2 8.8 12.0 9.5 2.0 5.1
MSCI EAFE Growth Index 1.0 6.9 -1.3 9.0 12.1 10.1 2.2 5.8
MSCI EAFE Value Index 0.2 4.1 -7.1 8.6 11.8 8.9 1.7 4.4
MSCI EAFE Small Cap 4.3 10.1 -0.8 13.2 15.7 12.4 5.4 6.6
MSCI AC World Index 0.3 2.7 0.7 11.3 13.0 11.9 4.8 6.4
MSCI AC World ex US 0.5 4.0 -5.3 7.4 9.4 7.8 1.5 5.5
MSCI Emerging Markets Index 0.7 2.9 -5.1 4.1 3.7 3.7 0.9 8.1
Fixed Income Indices
Barclays U.S. Aggregate -1.7 -0.1 1.9 3.1 1.8 3.3 4.6 4.4
Barcap Intermediate U.S. Government/Credit -0.6 0.8 1.7 2.3 1.6 2.8 3.9 4.0
Barclays U.S. Long Government/Credit -7.6 -4.5 1.9 6.3 2.5 6.7 7.9 6.1
Barclays US Corp: High Yield 0.0 2.5 -0.4 5.5 6.8 8.6 9.4 7.9
BofA Merrill Lynch 3 Month U.S. T-Bill 0.0 0.0 0.0 0.0 0.1 0.1 0.2 1.4
Barclays U.S. TIPS -1.1 0.3 -1.7 1.3 -0.8 3.3 3.5 4.1
Citigroup Non-U.S. World Government Bond -1.5 -5.8 -13.5 -2.9 -3.9 0.3 0.9 2.6
JPM EMBI Global Diversified (external currency)-0.3 1.7 0.5 5.9 4.3 6.8 7.7 7.4
JPM GBI-EM Global Diversified (local currency)-1.0 -4.9 -15.4 -6.2 -3.8 0.9 2.8 5.9
Real Asset Indices
Bloomberg Commodity Index Total Return 4.7 -1.6 -23.7 -9.1 -8.8 -3.9 -10.9 -2.6
Dow Jones Wilshire REIT -9.9 -5.7 5.2 9.3 9.0 14.7 7.8 6.9
Capital Markets Review
Index Returns
As of June 30, 2015
(Percentage Return)
_________________________
Returns for periods greater than one year are annualized.
56