HomeMy Public PortalAbout2014 Report 4th QuarterPerformance
Review
Metropolitan St. Louis Sewer
District Deferred Compensation
Plan
4th Quarter 2014
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 - December 2014
Fourth quarter fund returns were strong overall, due to robust performance from the domestic equity markets and continued resilience from the fixed
income market. All target date retirement funds reported positive performance for the fourth 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.
Fourth quarter performance for the active managers in the investment menu was mixed. Vanguard U.S. Growth outpaced the Russell 1000 Growth
Index by 130 basis points due primarily to strong stock selection in the consumer discretionary and consumer staples sectors while Vanguard
International Growth outperformed the MSCI AC World ex USA Index by 90 basis points as a result of an underweight position to energy, the worst
performing sector during the quarter. Vanguard Windsor II lagged the Russell 1000 Value Index by 150 basis points due to poor stock selection
across several sectors.
The domestic mid-cap and small-cap segments were the best absolute performers 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 U.S. economy was aided by a combination of strengthening employment and stronger growth of domestic demand; however, the IMF’s latest
quarterly update to its global economic forecasts contained downgrades to its expectations for global growth to 3.5% in 2015. As one of the stronger
world economies, the U.S. remained a safe-haven for investors as money flowed out of Europe and Asia and into U.S. securities.
World equities performance in 2014 has been dominated by the performance of the US market and the strengthening of the US dollar. The Russell
3000 Index experienced strong gains during the fourth quarter, driven by improved U.S. economic data and the Fed’s declaration that it would
remain “patient” before increasing short-term interest rates, given current low inflation expectations. During the quarter, small-cap stocks
outperformed their large-cap counterparts, however, large-caps advanced more throughout the year.
Non-U.S. equities struggled as the strong U.S. dollar transformed decent local market returns into negative U.S. dollar returns in developed and
emerging markets. Disappointing economic data abroad hurt returns, however, significant depreciation of most non-U.S. currencies versus the USD
was the main driver of negative performance. Emerging markets were negatively impacted most by depreciating currencies and also were hurt by
falling oil and commodity prices.
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)4.9 (33)13.5 (17)13.5 (17)20.2 (32)15.3 (24)7.6 (42)
S&P 500 4.9 (32)13.7 (16)13.7 (16)20.4 (30)15.5 (22)7.7 (38)
Large-Cap Equity Peer Group Median 4.2 10.3 10.3 19.1 14.0 7.2
Vanguard US Growth (VWUSX)6.1 (20)13.1 (24)13.1 (24)22.0 (17)15.0 (39)7.7 (54)
Russell 1000 Growth Index 4.8 (49)13.1 (24)13.1 (24)20.3 (39)15.8 (26)8.5 (36)
Large-Cap Growth Equity Peer Group Median 4.8 10.5 10.5 19.7 14.3 7.9
Vanguard Windsor II (VWNFX)3.5 (55)11.2 (37)11.2 (37)19.2 (45)14.0 (46)7.2 (40)
Russell 1000 Value Index 5.0 (22)13.5 (15)13.5 (15)20.9 (23)15.4 (19)7.3 (37)
Large-Cap Value Equity Peer Group Median 3.8 10.2 10.2 18.9 13.8 6.9
Vanguard Mid-Cap Index (VIMSX)6.6 (32)13.6 (7)13.6 (7)21.1 (16)16.9 (16)9.3 (25)
Vanguard Mid-Cap Index Fund Blended Benchmark 6.6 (32)13.8 (6)13.8 (6)21.4 (14)17.1 (14)9.5 (20)
Mid-Cap Equity Peer Group Median 5.3 6.2 6.2 18.1 14.9 8.3
Vanguard Small-Cap Index (NAESX)6.8 (66)7.4 (13)7.4 (13)20.4 (27)16.7 (26)9.0 (14)
Vanguard Small-Cap Index Fund Blended Benchmark 6.8 (66)7.5 (12)7.5 (12)20.6 (25)16.8 (25)9.1 (13)
Small-Cap Equity Peer Group Median 8.1 3.5 3.5 18.5 15.2 7.7
International Equity Option
Vanguard International Growth (VWIGX)-3.0 (44)-5.6 (55)-5.6 (55)11.7 (30)6.8 (28)6.2 (25)
MSCI AC World ex USA (Net)-3.9 (61)-3.9 (32)-3.9 (32)9.0 (74)4.4 (73)5.1 (41)
International Equity Peer Group Median -3.4 -5.3 -5.3 10.5 5.5 4.8
Fixed Income Options
Vanguard Total Bond Market Index (VBMFX)1.7 (15)5.8 (47)5.8 (47)2.5 (86)4.2 (86)4.6 (65)
Vanguard Total Bond Market Index Fund Benchmark 1.8 (9)5.9 (39)5.9 (39)2.7 (81)4.5 (77)4.7 (56)
Market Duration Fixed Income Peer Group Median 1.4 5.7 5.7 3.6 5.0 4.8
Vanguard Retirement Savings Trust 0.5 1.8 1.8 2.0 2.4 3.2
Ryan 3 Yr GIC Master 0.3 1.0 1.0 1.2 1.9 3.0
Performance Summary
Investment Options
As of December 31, 2014
_________________________
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 December 31, 2014
Quarter
Year
To
Date
1
Year
3
Years
5
Years
10
Years
Equity/Fixed Income Blend Options
Vanguard Balanced Index (VBINX)3.9 (14)9.8 (10)9.8 (10)13.0 (30)11.2 (15)6.9 (17)
Vanguard Balanced Index Fund Benchmark 3.8 (15)9.9 (10)9.9 (10)13.2 (24)11.4 (13)7.1 (13)
60% Equity / 40% Fixed Peer Group Median 2.8 6.6 6.6 12.2 9.9 6.1
Vanguard Target Retirement Income (VTINX)1.6 (18)5.6 (20)5.6 (20)6.6 (60)6.9 (39)5.4 (24)
Vanguard Target Income Composite Index 1.6 (18)5.8 (18)5.8 (18)6.7 (56)7.0 (36)5.4 (23)
IM Mixed-Asset Target Alloc Consv (MF) Median 0.9 4.0 4.0 7.0 6.5 4.6
Vanguard Target Retirement 2010 (VTENX)1.7 (7)5.9 (7)5.9 (7)8.4 (40)7.9 (25)N/A
Vanguard Target 2010 Composite Index 1.7 (4)6.1 (4)6.1 (4)8.5 (38)8.0 (23)N/A
IM Mixed-Asset Target 2010 (MF) Median 1.0 4.1 4.1 8.0 7.0 4.4
Vanguard Target Retirement 2015 (VTXVX)1.9 (13)6.5 (7)6.5 (7)10.3 (20)8.9 (14)5.9 (14)
Vanguard Target 2015 Composite Index 2.0 (11)6.8 (5)6.8 (5)10.5 (17)9.0 (12)5.9 (9)
IM Mixed-Asset Target 2015 (MF) Median 1.3 4.4 4.4 8.9 7.7 4.3
Vanguard Target Retirement 2020 (VTWNX)2.3 (9)7.1 (2)7.1 (2)11.7 (12)9.7 (8)N/A
Vanguard Target 2020 Composite Index 2.3 (8)7.4 (1)7.4 (1)12.0 (9)9.9 (5)N/A
IM Mixed-Asset Target 2020 (MF) Median 1.5 4.7 4.7 9.3 8.0 4.8
Vanguard Target Retirement 2025 (VTTVX)2.3 (17)7.2 (4)7.2 (4)12.8 (25)10.2 (21)6.2 (17)
Vanguard Target 2025 Composite Index 2.4 (15)7.4 (1)7.4 (1)13.0 (20)10.5 (13)6.3 (12)
IM Mixed-Asset Target 2025 (MF) Median 1.6 5.2 5.2 11.3 9.2 5.4
Vanguard Target Retirement 2030 (VTHRX)2.3 (15)7.2 (7)7.2 (7)13.8 (19)10.8 (15)N/A
Vanguard Target 2030 Composite Index 2.4 (14)7.5 (4)7.5 (4)14.1 (15)11.0 (10)N/A
IM Mixed-Asset Target 2030 (MF) Median 1.8 5.3 5.3 12.2 9.4 5.1
Vanguard Target Retirement 2035 (VTTHX)2.4 (21)7.3 (8)7.3 (8)14.9 (19)11.3 (19)6.5 (17)
Vanguard Target 2035 Composite Index 2.4 (19)7.6 (5)7.6 (5)15.2 (16)11.6 (13)6.7 (14)
IM Mixed-Asset Target 2035 (MF) Median 1.9 5.4 5.4 13.4 10.2 5.6
Vanguard Target Retirement 2040 (VFORX)2.3 (27)7.1 (14)7.1 (14)15.5 (18)11.6 (11)N/A
Vanguard Target 2040 Composite Index 2.5 (21)7.6 (9)7.6 (9)15.8 (14)11.9 (6)N/A
IM Mixed-Asset Target 2040 (MF) Median 2.0 5.5 5.5 13.7 10.1 5.4
_________________________
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 December 31, 2014
Quarter
Year
To
Date
1
Year
3
Years
5
Years
10
Years
Equity/Fixed Income Blend Options (cont.)
Vanguard Target Retirement 2045 (VTIVX)2.2 (33)7.1 (13)7.1 (13)15.5 (24)11.6 (18)6.8 (31)
Vanguard Target 2045 Composite Index 2.5 (22)7.6 (10)7.6 (10)15.8 (19)11.9 (8)7.0 (16)
IM Mixed-Asset Target 2045 (MF) Median 2.0 5.6 5.6 14.4 10.7 6.1
Vanguard Target Retirement 2050 (VFIFX)2.3 (33)7.2 (18)7.2 (18)15.5 (24)11.6 (15)N/A
Vanguard Target 2050 Composite Index 2.5 (25)7.6 (13)7.6 (13)15.8 (19)11.9 (8)N/A
IM Mixed-Asset Target 2050 (MF) Median 2.1 5.7 5.7 14.4 10.4 N/A
Vanguard Target Retirement 2055 (VFFVX)2.3 (29)7.2 (17)7.2 (17)15.5 (32)N/A N/A
Vanguard Target 2055 Composite Index 2.5 (22)7.6 (13)7.6 (13)15.8 (23)N/A N/A
IM Mixed-Asset Target 2055+ Funds (MF) Median 2.1 5.7 5.7 14.9 10.5 N/A
Vanguard Target Retirement 2060 (VTTSX)2.3 (31)7.2 (18)7.2 (18)N/A N/A N/A
Vanguard Target 2060 Composite Index 2.5 (22)7.6 (13)7.6 (13)15.8 (23)N/A N/A
IM Mixed-Asset Target 2055+ Funds (MF) Median 2.1 5.7 5.7 14.9 10.5 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 December 31, 2014
Ma na gers
Vanguard
S&P 500
Inde x
(V FINX)
Va nguard US
Grow th
(VWUSX)
Va nguard
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)
Vangua rd
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 December 31, 2014
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 December 31, 2014
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 rge t
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 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
Fourth Quarter 2014
Manager
Compliance
Issue Explanation
Recommended
Ac tion Comments
Vanguard
U.S. 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 December 31, 2014
Invest ment Options Inve st ment Style Al location Perce ntage
Domestic Eq uity Funds
Vanguard 500 Index I nv US Large Cap Equit y -Core $ 6,619,186 13.7%$ 777,033 + 13.3%
Vanguard Windsor II Inv US Large Cap Equit y -Value $ 9,012,431 18.6%$ 360,932 + 4.2%
Vanguard US Growth Inv US Large Cap Equit y -Growth $ 4,275,054 8.8%$ 530,675 + 14.2%
Vanguard M id Cap Index I nv US Mid Cap Equity -Core $ 2,631,528 5.4%$ 154,041 + 6.2%
Vanguard Small Cap Index Inv US Small Cap Equit y -Core $ 2,471,301 5.1%$ (217,755)- 8.1%
$ 25,009,501 51.7%$ 1,604,926 + 6.9%
International Equ ity Funds
Vanguard Internat ional Growth Internat ional Equity $ 2,134,833 4.4%$ (283,278)- 11.7%
$ 2,134,833 4.4%$ (283,278)- 11.7%
Fi xed I ncome/Alternative Fu nds
Vanguard T otal Bond M arket Index Inv Market Duration $ 2,349,624 4.9%$ (127,500)- 5.1%
Vanguard Retirement Savings Trust Short Duration $ 3,541,039 7.3%$ 199,781 + 6.0%
Vanguard Balanced Index Inv Balanced $ 4,035,131 8.3%$ 219,623 + 5.8%
$ 9,925,794 20.5%$ 291,904 + 3.0%
$ Change
From
Previous Qtr
% C hange
From
Pre vi ous Qtr
$ 9,925,794 20.5%$ 291,904 + 3.0%
Cash
Vanguard Prime M oney Market Cash $ 1,173,059 2.4%$ 40,852 + 3.6%
$ 1,173,059 2.4%$ 40,852 + 3.6%
Ta rge t Date Funds
Vanguard T arget Ret irement Income Inv Blend $ 322,326 0.7%$ 68,336 + 26.9%
Vanguard T arget Ret irement 2010 Inv Blend $ 722,630 1.5%$ 88,144 + 13.9%
Vanguard T arget Ret irement 2015 Inv Blend $ 859,556 1.8%$ (292,849)- 25.4%
Vanguard T arget Ret irement 2020 Inv Blend $ 1,974,463 4.1%$ 290,361 + 17.2%
Vanguard T arget Ret irement 2025 Inv Blend $ 1,951,293 4.0%$ (64,952)- 3.2%
Vanguard T arget Ret irement 2030 Inv Blend $ 970,921 2.0%$ 138,189 + 16.6%
Vanguard T arget Ret irement 2035 Inv Blend $ 915,424 1.9%$ 146,126 + 19.0%
Vanguard T arget Ret irement 2040 Inv Blend $ 543,660 1.1%$ 94,041 + 20.9%
Vanguard T arget Ret irement 2045 Inv Blend $ 512,292 1.1%$ 93,819 + 22.4%
Vanguard T arget Ret irement 2050 Inv Blend $ 190,551 0.4%$ 76,925 + 67.7%
Vanguard T arget Ret irement 2055 Inv Blend $ 18,684 0.0%$ 9,399 +101.2%
Vanguard T arget Ret irement 2060 Inv Blend $ 17,070 0.0%$ 2,308 + 15.6%
8,998,870$ 18.6%649,846$ + 7.8%
Loan Fund
Loan Fund Loan Fund $ 1,164,887 2.4%$ (120,745)- 9.4%
TO TA L $ 48,406,944 100.0%$ 2,183,505 + 4.7%
13
Plan Summary
Fee Comparison Summary
As of December 31, 2014
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 1.14 0.95 0.16 La rg e Blend eVestment US Pa ssive La rg e Cap Equity
Va nguard US Gro wt h 0.44 1.23 0.95 0.85 La rge Gro wth La rg e Cap No Lo ad US Large Cap Gr owth
Va nguard Windsor 0.36 1.15 0.95 0.84 La rg e Value La rg e Cap No Lo ad US Large Cap Va lu e
Va nguard Mid-Ca p Index 0.24 1.23 1.10 0.27 Mid Ble nd Mid Cap No Lo ad US Passive Mid Cap Equity
Va nguard Sma ll-Ca p Index 0.24 1.27 1.20 0.27 Small Ble nd Small Ca p No Load US Pa ssive Small Ca p Equity
Va nguard International Gr owth 0.47 1.36 1.10 1.10 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 0.89 0.68 0.53 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 0.64 N/A N/A US St able Value Fixed Income
Va nguard Balanced Index 0.24 0.99 0.92 0.70 Moderate Allo cation Moderate Allo cation No Load US Ba la nced
Va nguard Target Retirement Income 0.16 0.48 0.66 0.52 Re tire me nt Income Retire me nt Income No Load Li fecycle/Target Date Income
Va nguard Target Retirement 2010 0.16 0.54 0.65 0.60 Target Date 2000-2010 Target Retireme nt 2000-2010 No Lo ad Life cycle/Target Date 2010Vanguard Target Retirement 2010 0.16 0.54 0.65 0.60 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 0.62 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 0.76 0.65 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 0.66 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 0.80 0.66 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 0.71 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 0.84 0.72 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 0.76 Target Date 2041-2045 Target Retireme nt 2041-2045 No Lo ad Life cycle/Target Date 2045
Va nguard Target Retirement 2050 0.18 0.49 0.84 0.70 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 0.94 0.76 Target Date 2051+Target Retireme nt 2051+ No Lo ad Life cycle/Target Date 2055
Va nguard Target Retirement 2060 0.18 0.46 0.94 N/A Target Date 2051+Target Retireme nt 2051+ No Lo ad N/A
Va nguard Prime Money Marke t 0.14 0.12 N/A 0.20 Money Marke t Taxable N/A US Cash Management
14
Manager Evaluation
15
Historical Performance
Three Year Rolling Percentile Ranking Relative Performance
Historical Statistics (Jan-2010 - Dec-2014)
Quarter
Year
To
Date
1
Year
3
Years
5
Years
10
Years 2013 2012 2011 2010 2009 2008 2007 2006 2005 2004
Vanguard 500 Index Fund (VFINX)4.9 13.5 13.5 20.2 15.3 7.6 32.2 15.8 2.0 14.9 26.5 -37.0 5.4 15.6 4.8 10.7
S&P 500 4.9 13.7 13.7 20.4 15.5 7.7 32.4 16.0 2.1 15.1 26.5 -37.0 5.5 15.8 4.9 10.9
Large-Cap Equity Peer Group Median 4.2 10.3 10.3 19.1 14.0 7.2 32.4 14.6 -1.0 14.0 27.8 -37.5 6.2 13.3 5.9 10.2
Vanguard 500 Index Fund (VFINX) Rank 33 17 17 32 24 42 52 38 23 40 57 46 56 33 63 45
Cumulative Annualized Over/Under Relative Performance
Over/Under Performance
0.0
0.2
-0.2
-0.4Return (%)3/05 3/06 3/07 3/08 3/09 3/10 3/11 3/12 3/13 3/14 12/14
Vanguard 500 Index Fund (VFINX)S&P 500
0
25
50
75
100Return Percentile Rank3/05 3/06 3/07 3/08 3/09 3/10 3/11 3/12 3/13 3/14 12/14
Return
Standard
Deviation
Excess
Return Alpha Beta
Sharpe
Ratio
Tracking
Error
Information
Ratio
Downside
Risk Consistency
Inception
Date
Vanguard 500 Index Fund (VFINX)15.3 14.0 15.4 -0.1 1.0 1.1 0.0 -12.6 8.2 0.0 38y 4m
S&P 500 15.5 14.0 15.6 0.0 1.0 1.1 0.0 N/A 8.1 0.0 38y 4m
90 Day U.S. Treasury Bill 0.1 0.0 0.0 0.1 0.0 N/A 14.0 -1.1 0.0 20.0 38y 4m
Manager Evaluation
Vanguard 500 Index Fund (VFINX) vs. S&P 500
As of December 31, 2014
16
Top Ten Equity Holdings
Portfolio
Weight
(%)
Benchmark
Weight
(%)
Active
Weight
(%)
Quarterly
Return
(%)
Apple Inc 3.5 3.6 0.0 10.0
Exxon Mobil Corp 2.1 2.2 0.0 -1.0
Microsoft Corp 2.1 2.1 0.0 0.8
Johnson & Johnson 1.6 1.6 0.0 -1.3
Wells Fargo & Co 1.4 1.4 0.0 6.4
General Electric Co 1.4 1.4 0.0 -0.5
Berkshire Hathaway Inc 1.4 1.5 -0.1 8.7
Procter & Gamble Co (The)1.3 1.4 0.0 9.6
JPMorgan Chase & Co 1.3 1.3 0.0 4.6
Chevron Corp 1.2 1.2 0.0 -5.1
% of Portfolio 17.3 17.5
Portfolio Characteristics
Portfolio Benchmark
Wtd. Avg. Mkt. Cap ($M)130,750 131,374
Median Mkt. Cap ($M)18,669 18,669
Price/Earnings ratio 18.8 18.8
Price/Book ratio 3.0 3.0
5 Yr. EPS Growth Rate (%)15.2 15.1
Current Yield (%)2.0 2.0
Debt to Equity 1.0 1.0
Number of Stocks 507 502
Beta (5 Years, Monthly)1.00 1.00
Consistency (5 Years, Monthly)0.00 1.00
Sharpe Ratio (5 Years, Monthly)1.17 1.18
Information Ratio (5 Years, Monthly)-9.62 -
Up Market Capture (5 Years, Monthly)99.60 -
Down Market Capture (5 Years, Monthly)100.38 -
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
0.5
3.2
2.3
3.2
19.6
10.4
14.1
16.6
8.4
9.8
12.1
0.0
3.2
2.3
3.2
19.7
10.4
14.2
16.6
8.4
9.8
12.1
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
50.3
34.0
15.1
0.6 0.0
50.0
33.9
15.0
0.6 0.5
Manager Evaluation
Vanguard 500 Index Fund (VFINX) vs. S&P 500
As of December 31, 2014
17
Historical Performance
Buy and Hold Attribution
Risk and Return (Jan - 2010 - Dec - 2014)Three Year Rolling Percentile Ranking
Quarter
Year
To
Date
1
Year
3
Years
5
Years
10
Years 2013 2012 2011 2010 2009 2008 2007 2006 2005 2004
Vanguard Windsor II (VWNFX)3.5 11.2 11.2 19.2 14.0 7.2 30.7 16.7 2.7 10.6 27.1 -36.7 2.2 18.2 7.0 18.3
Russell 1000 Value Index 5.0 13.5 13.5 20.9 15.4 7.3 32.5 17.5 0.4 15.5 19.7 -36.8 -0.2 22.2 7.1 16.5
Large-Cap Value Equity Peer Group Median 3.8 10.2 10.2 18.9 13.8 6.9 31.7 15.0 -1.5 13.5 25.4 -37.3 2.9 16.6 6.1 12.5
Vanguard Windsor II (VWNFX) Rank 55 37 37 45 46 40 62 29 17 86 42 45 56 36 38 7
12.0
14.0
16.0
18.0
Return (%)14.5 14.6
Risk (Standard Deviation %)
Russell 1000 Value Index
Vanguard Windsor II (VWNFX)
Vanguard Windsor II (VWNFX)Russell 1000 Value Index
0
25
50
75
100Return Percentile Rank3/05 3/06 3/07 3/08 3/09 3/10 3/11 3/12 3/13 3/14 12/14
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
-2.2
0.4
0.3
-1.7
4.0
-1.7
3.8
-7.8
-2.3
2.3
2.7
2.3
Allocation
(Total: 0.4)
0.0 0.3 0.6-0.3-0.6
-0.2
0.0
0.0
0.1
0.1
0.0
0.1
-0.2
0.3
0.1
0.2
-0.1
Stock
(Total: -1.8)
0.0 0.4 0.8-0.4-0.8-1.2
-0.2
0.0
0.0
0.1
0.0
0.1
-0.5
-0.3
-0.6
-0.6
0.1
0.0
Vanguard Windsor II (VWNFX)
0.0 0.3 0.6-0.3-0.6-0.9
-0.4
0.0
0.0
0.3
0.0
0.1
-0.4
-0.4
-0.3
-0.4
0.3
-0.1
Manager Evaluation
Vanguard Windsor II (VWNFX) vs. Russell 1000 Value Index
As of December 31, 2014
Differences between the manager return and the attribution return are due primarily to the effects of fees and portfolio trading.
18
Top Ten Equity Holdings
Portfolio
Weight
(%)
Benchmark
Weight
(%)
Active
Weight
(%)
Quarterly
Return
(%)
Microsoft Corp 2.9 1.3 1.6 0.8
JPMorgan Chase & Co 2.7 2.3 0.5 4.6
Medtronic Inc 2.6 0.7 1.9 17.6
Wells Fargo & Co 2.5 2.5 -0.1 6.4
Pfizer Inc 2.5 1.9 0.6 6.3
Intel Corp 2.4 1.6 0.8 4.9
Citigroup Inc 2.2 1.6 0.7 4.4
WellPoint Inc 2.2 0.3 1.9 5.4
Philip Morris International Inc 2.1 0.5 1.6 -1.2
General Dynamics Corp 2.0 0.4 1.6 8.8
% of Portfolio 24.1 13.1
Portfolio Characteristics
Portfolio Benchmark
Wtd. Avg. Mkt. Cap ($M)107,860 113,441
Median Mkt. Cap ($M)22,070 7,321
Price/Earnings ratio 16.0 16.9
Price/Book ratio 2.4 2.1
5 Yr. EPS Growth Rate (%)14.3 10.6
Current Yield (%)2.5 2.3
Debt to Equity 1.3 1.0
Number of Stocks 268 704
Beta (5 Years, Monthly)0.98 1.00
Consistency (5 Years, Monthly)41.67 1.00
Sharpe Ratio (5 Years, Monthly)1.06 1.14
Information Ratio (5 Years, Monthly)-0.59 -
Up Market Capture (5 Years, Monthly)94.98 -
Down Market Capture (5 Years, Monthly)98.99 -
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
2.2
3.9
2.5
1.6
13.4
9.0
17.0
21.9
8.7
8.8
10.7
0.0
0.0
6.4
2.1
3.0
9.5
10.1
13.7
29.9
11.3
7.4
6.6
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
43.6
30.8
19.3
6.3
0.0
45.7
35.9
14.0
2.3 2.2
Manager Evaluation
Vanguard Windsor II (VWNFX) vs. Russell 1000 Value Index
As of December 31, 2014
19
Historical Performance
Buy and Hold Attribution
Risk and Return (Jan - 2010 - Dec - 2014)Three Year Rolling Percentile Ranking
Quarter
Year
To
Date
1
Year
3
Years
5
Years
10
Years 2013 2012 2011 2010 2009 2008 2007 2006 2005 2004
Vanguard US Growth (VWUSX)6.1 13.1 13.1 22.0 15.0 7.7 35.5 18.4 -0.7 11.5 35.0 -37.8 10.1 1.8 11.2 7.0
Russell 1000 Growth Index 4.8 13.1 13.1 20.3 15.8 8.5 33.5 15.3 2.6 16.7 37.2 -38.4 11.8 9.1 5.3 6.3
Large-Cap Growth Equity Peer Group Median 4.8 10.5 10.5 19.7 14.3 7.9 34.6 14.6 -0.8 15.3 33.4 -38.3 13.8 7.1 6.2 7.7
Vanguard US Growth (VWUSX) Rank 20 24 24 17 39 54 41 16 48 83 40 46 75 90 17 59
13.6
14.4
15.2
16.0
16.8
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)
Vanguard US Growth (VWUSX)Russell 1000 Growth Index
0
25
50
75
100Return Percentile Rank3/05 3/06 3/07 3/08 3/09 3/10 3/11 3/12 3/13 3/14 12/14
Average Active Weight
0.0 5.0 10.0-5.0-10.0
Utilities
Telecommunication Services
Other
Materials
Information Technology
Industrials
Health Care
Financials
Energy
Consumer Staples
Consumer Discretionary
Cash
-0.1
-1.9
0.0
-1.3
2.9
-5.7
1.8
3.6
-1.1
-3.6
2.3
3.0
Allocation
(Total: 0.3)
0.0 0.3 0.6-0.3-0.6
0.0
0.2
0.0
0.1
0.0
-0.2
0.1
0.1
0.3
-0.1
0.1
-0.1
Stock
(Total: 0.7)
0.0 0.4 0.8-0.4-0.8
0.0
0.0
0.0
0.0
0.3
-0.2
-0.3
-0.1
0.1
0.4
0.4
0.0
Vanguard US Growth (VWUSX)
0.0 0.4 0.8 1.2-0.4-0.8
0.0
0.2
0.0
0.1
0.3
-0.4
-0.2
0.0
0.3
0.3
0.5
-0.1
Manager Evaluation
Vanguard US Growth (VWUSX) vs. Russell 1000 Growth Index
As of December 31, 2014
Differences between the manager return and the attribution return are due primarily to the effects of fees and portfolio trading.
20
Top Ten Equity Holdings
Portfolio
Weight
(%)
Benchmark
Weight
(%)
Active
Weight
(%)
Quarterly
Return
(%)
Apple Inc 3.6 6.2 -2.6 10.0
MasterCard Inc 3.5 0.8 2.7 16.7
Celgene Corp 3.2 0.8 2.3 18.0
Microsoft Corp 2.9 2.3 0.5 0.8
Visa Inc 2.7 1.2 1.5 23.1
Allergan Inc.2.3 0.6 1.8 19.3
Priceline.Com Inc 2.3 0.6 1.8 -1.6
Google Inc (Class C)2.3 1.4 0.9 -8.8
Walgreen Co 1.9 0.5 1.4 29.2
Home Depot Inc. (The)1.8 1.4 0.4 15.0
% of Portfolio 26.5 15.9
Portfolio Characteristics
Portfolio Benchmark
Wtd. Avg. Mkt. Cap ($M)100,009 119,250
Median Mkt. Cap ($M)22,462 8,642
Price/Earnings ratio 26.8 21.6
Price/Book ratio 4.7 5.1
5 Yr. EPS Growth Rate (%)21.7 20.1
Current Yield (%)1.0 1.5
Debt to Equity 0.8 1.2
Number of Stocks 166 682
Beta (5 Years, Monthly)1.11 1.00
Consistency (5 Years, Monthly)50.00 1.00
Sharpe Ratio (5 Years, Monthly)1.00 1.16
Information Ratio (5 Years, Monthly)-0.16 -
Up Market Capture (5 Years, Monthly)106.13 -
Down Market Capture (5 Years, Monthly)118.20 -
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
2.4
0.0
0.5
1.9
33.3
6.2
15.6
7.6
4.3
7.1
21.3
0.0
0.0
0.1
2.1
4.0
28.3
12.2
14.2
5.4
4.5
10.5
18.7
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
44.5
30.7
21.1
3.6
0.0
37.3
34.7
23.1
2.4 2.4
Manager Evaluation
Vanguard US Growth (VWUSX) vs. Russell 1000 Growth Index
As of December 31, 2014
21
Historical Performance
Three Year Rolling Percentile Ranking Relative Performance
Historical Statistics (Jan-2010 - Dec-2014)
Quarter
Year
To
Date
1
Year
3
Years
5
Years
10
Years 2013 2012 2011 2010 2009 2008 2007 2006 2005 2004
Vanguard Mid-Cap Index Fund (VIMSX)6.6 13.6 13.6 21.1 16.9 9.3 35.0 15.8 -2.1 25.5 40.2 -41.8 6.0 13.6 13.9 20.4
Vanguard Mid-Cap Index Fund Blended Benchmark 6.6 13.8 13.8 21.4 17.1 9.5 35.4 16.0 -1.9 25.7 40.5 -41.8 6.2 13.7 13.9 20.5
Mid-Cap Equity Equity Peer Group Median 5.3 6.2 6.2 18.1 14.9 8.3 34.6 14.6 -2.7 21.8 34.2 -40.2 8.1 11.9 9.4 15.3
Vanguard Mid-Cap Index Fund (VIMSX) Rank 32 7 7 16 16 25 48 40 45 26 32 61 59 38 17 18
Cumulative Annualized Over/Under Relative Performance
Over/Under Performance
0.0
0.2
0.4
-0.2
-0.4Return (%)3/05 3/06 3/07 3/08 3/09 3/10 3/11 3/12 3/13 3/14 12/14
Vanguard Mid-Cap Index Fund (VIMSX)
Vanguard Mid-Cap Index Fund Blended Benchmark
0
25
50
75
100Return Percentile Rank3/05 3/06 3/07 3/08 3/09 3/10 3/11 3/12 3/13 3/14 12/14
Return
Standard
Deviation
Excess
Return Alpha Beta
Sharpe
Ratio
Tracking
Error
Information
Ratio
Downside
Risk Consistency
Inception
Date
Vanguard Mid-Cap Index Fund (VIMSX)16.9 16.4 17.2 -0.2 1.0 1.0 0.1 -3.4 9.9 0.0 16y 7m
Vanguard Mid-Cap Index Fund Blended Benchmark 17.1 16.4 17.5 0.0 1.0 1.1 0.0 N/A 9.9 0.0 16y 7m
90 Day U.S. Treasury Bill 0.1 0.0 0.0 0.1 0.0 N/A 16.5 -1.1 0.0 25.0 16y 7m
Manager Evaluation
Vanguard Mid-Cap Index Fund (VIMSX) vs. Vanguard Mid-Cap Index Fund Blended Benchmark
As of December 31, 2014
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
Top Ten Equity Holdings
Portfolio
Weight
(%)
Benchmark
Weight
(%)
Active
Weight
(%)
Quarterly
Return
(%)
Health Care REIT Inc.0.8 0.8 0.0 22.7
United Continental Holdings Inc 0.8 0.8 0.0 43.0
AvalonBay Communities Inc.0.7 0.7 0.0 16.7
Delphi Automotive PLC 0.7 0.7 0.0 19.0
Limited Brands Inc.0.7 0.7 0.0 29.8
Sherwin-Williams Co (The)0.7 0.7 0.0 20.4
Chipotle Mexican Grill Inc 0.6 0.7 0.0 2.7
Mylan Inc 0.6 0.6 0.0 23.9
Seagate Technology Plc 0.6 0.6 0.0 17.1
Moody's Corp.0.6 0.6 0.0 1.7
% of Portfolio 6.6 6.6
Portfolio Characteristics
Portfolio Benchmark
Wtd. Avg. Mkt. Cap ($M)12,120 12,167
Median Mkt. Cap ($M)9,108 9,098
Price/Earnings ratio 22.0 22.0
Price/Book ratio 3.2 3.2
5 Yr. EPS Growth Rate (%)17.0 17.0
Current Yield (%)1.4 1.4
Debt to Equity 1.5 1.5
Number of Stocks 377 374
Beta (5 Years, Monthly)1.02 1.00
Consistency (5 Years, Monthly)33.33 1.00
Sharpe Ratio (5 Years, Monthly)1.12 1.17
Information Ratio (5 Years, Monthly)-0.50 -
Up Market Capture (5 Years, Monthly)99.99 -
Down Market Capture (5 Years, Monthly)102.79 -
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
Cash
Utilities
Telecommunication Services
Materials
Information Technology
Industrials
Health Care
Financials
Energy
Consumer Staples
Consumer Discretionary
0.4
5.4
1.2
6.4
14.5
12.4
10.9
17.1
6.1
6.1
19.6
0.0
5.4
1.2
6.5
14.6
12.4
11.0
17.2
6.1
6.1
19.7
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
Cash
9.8
86.7
3.5 0.0
9.8
86.4
3.5 0.4
Manager Evaluation
Vanguard Mid-Cap Index Fund (VIMSX) vs. CRSP U.S. Mid Cap TR Index
As of December 31, 2014
23
Historical Performance
Three Year Rolling Percentile Ranking Relative Performance
Historical Statistics (Jan-2010 - Dec-2014)
Quarter
Year
To
Date
1
Year
3
Years
5
Years
10
Years 2013 2012 2011 2010 2009 2008 2007 2006 2005 2004
Vanguard Small-Cap Index Fund (NAESX)6.8 7.4 7.4 20.4 16.7 9.0 37.6 18.0 -2.8 27.7 36.1 -36.1 1.2 15.6 7.4 19.9
Vanguard Small-Cap Index Fund Blended Benchmark 6.8 7.5 7.5 20.6 16.8 9.1 37.8 18.2 -2.8 27.8 36.1 -36.2 1.2 15.8 7.5 20.0
Small-Cap Equity Peer Group Median 8.1 3.5 3.5 18.5 15.2 7.7 39.0 14.6 -3.4 26.4 31.8 -38.2 0.3 13.5 6.3 16.3
Vanguard Small-Cap Index Fund (NAESX) Rank 66 13 13 27 26 14 59 24 46 39 34 41 47 37 40 32
Cumulative Annualized Over/Under Relative Performance
Over/Under Performance
0.0
0.2
0.4
-0.2
-0.4Return (%)3/05 3/06 3/07 3/08 3/09 3/10 3/11 3/12 3/13 3/14 12/14
Vanguard Small-Cap Index Fund (NAESX)
Vanguard Small-Cap Index Fund Blended Benchmark
0
25
50
75
100Return Percentile Rank3/05 3/06 3/07 3/08 3/09 3/10 3/11 3/12 3/13 3/14 12/14
Return
Standard
Deviation
Excess
Return Alpha Beta
Sharpe
Ratio
Tracking
Error
Information
Ratio
Downside
Risk Consistency
Inception
Date
Vanguard Small-Cap Index Fund (NAESX)16.7 18.0 17.4 -0.1 1.0 1.0 0.0 -3.1 11.0 10.0 46y 11m
Vanguard Small-Cap Index Fund Blended Benchmark 16.8 18.0 17.5 0.0 1.0 1.0 0.0 N/A 11.0 0.0 46y 11m
90 Day U.S. Treasury Bill 0.1 0.0 0.0 0.1 0.0 N/A 18.0 -1.0 0.0 25.0 46y 11m
Manager Evaluation
Vanguard Small-Cap Index Fund (NAESX) vs. Vanguard Small-Cap Index Fund Blended Benchmark
As of December 31, 2014
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
Top Ten Equity Holdings
Portfolio
Weight
(%)
Benchmark
Weight
(%)
Active
Weight
(%)
Quarterly
Return
(%)
Alkermes Plc 0.3 0.3 0.0 36.6
Snap-On Inc 0.3 0.3 0.0 13.4
Alaska Air Group Inc.0.3 0.3 0.0 37.6
Goodyear Tire & Rubber Co 0.3 0.3 0.0 26.8
Cooper Companies Inc. (The)0.3 0.3 0.0 4.1
Cubist Pharmaceuticals Inc 0.3 0.3 0.0 51.7
Packaging Corp Of America 0.3 0.3 0.0 22.9
Arthur J. Gallagher & Co.0.3 0.3 0.0 4.6
Rite Aid Corp.0.3 0.3 0.0 55.4
Harman International Industries Inc.0.3 0.3 0.0 9.2
% of Portfolio 2.7 2.7
Portfolio Characteristics
Portfolio Benchmark
Wtd. Avg. Mkt. Cap ($M)3,453 3,461
Median Mkt. Cap ($M)1,824 1,821
Price/Earnings ratio 21.2 21.2
Price/Book ratio 2.6 2.6
5 Yr. EPS Growth Rate (%)14.6 14.6
Current Yield (%)1.5 1.5
Debt to Equity 1.4 1.4
Number of Stocks 1,495 1,482
Beta (5 Years, Monthly)1.02 1.00
Consistency (5 Years, Monthly)31.67 1.00
Sharpe Ratio (5 Years, Monthly)0.99 1.04
Information Ratio (5 Years, Monthly)-0.53 -
Up Market Capture (5 Years, Monthly)100.27 -
Down Market Capture (5 Years, Monthly)103.29 -
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
Cash
Utilities
Telecommunication Services
Materials
Information Technology
Industrials
Health Care
Financials
Energy
Consumer Staples
Consumer Discretionary
0.2
4.0
0.4
5.7
17.1
15.6
11.6
24.5
3.6
3.1
14.3
0.0
4.0
0.4
5.7
17.1
15.6
11.6
24.6
3.6
3.1
14.3
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
Cash
19.2
80.8
0.0
19.2
80.6
0.2
Manager Evaluation
Vanguard Small-Cap Index (NAESX) vs. CRSP U.S. Small Cap TR Index
As of December 31, 2014
25
Historical Performance
Buy and Hold Attribution
Risk and Return (Jan - 2010 - Dec - 2014)Three Year Rolling Percentile Ranking
Quarter
Year
To
Date
1
Year
3
Years
5
Years
10
Years 2013 2012 2011 2010 2009 2008 2007 2006 2005 2004
Vanguard International Growth (VWIGX)-3.0 -5.6 -5.6 11.7 6.8 6.2 22.9 20.0 -13.7 15.7 41.6 -44.9 16.0 25.9 15.0 19.0
MSCI AC World ex USA (Net)-3.9 -3.9 -3.9 9.0 4.4 5.1 15.3 16.8 -13.7 11.2 41.4 -45.5 16.7 26.7 16.6 20.9
International Equity Peer Group Median -3.4 -5.3 -5.3 10.5 5.5 4.8 20.8 18.4 -13.7 11.6 33.5 -44.4 11.9 25.2 15.0 18.5
Vanguard International Growth (VWIGX) Rank 44 55 55 30 28 25 31 32 51 25 23 54 28 43 50 45
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)
Vanguard International Growth (VWIGX)MSCI AC World ex USA (Net)
0
25
50
75
100Return Percentile Rank3/05 3/06 3/07 3/08 3/09 3/10 3/11 3/12 3/13 3/14 12/14
Average Active Weight
0.0 10.0 20.0-10.0-20.0
Utilities
Telecommunication Services
Materials
Information Technology
Industrials
Health Care
Financials
Energy
Consumer Staples
Consumer Discretionary
Cash
-3.5
-1.1
-2.3
9.4
2.5
-1.0
-2.1
-5.3
-4.5
5.4
2.7
Allocation
(Total: 1.7)
0.0 0.6 1.2 1.8-0.6
0.0
0.0
0.1
0.5
0.0
0.0
0.0
0.8
-0.1
0.3
0.1
Stock
(Total: -0.8)
0.0 0.7 1.4-0.7-1.4
0.0
-0.3
0.1
0.0
0.0
-0.2
-0.7
-0.2
0.0
0.4
0.0
0.0 0.6 1.2 1.8-0.6-1.2-1.8
0.0
-0.3
0.2
0.5
0.0
-0.2
-0.8
0.7
-0.1
0.7
0.1
Manager Evaluation
Vanguard International Growth (VWIGX) vs. MSCI AC World ex USA (Net)
As of December 31, 2014
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 0.1 0.2 0.3-0.1-0.2-0.3
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
0.0
0.2
0.1
0.1
-0.1
0.1
0.1
0.1
0.1
Performance Attribution
Average Active Weight
0.0 4.0 8.0 12.0-4.0-8.0-12.0
Pacific
Other
North America
Middle East
Frontier Markets
Europe ex EMU
EMU
EM Latin America
EM Europe + Middle East + Africa
EM Asia
Cash
-5.1
0.0
-4.0
0.7
0.6
5.2
-0.8
-0.2
-2.2
3.0
2.7
Allocation
(Total: 0.4)
0.0 0.1 0.2 0.3 0.4-0.1-0.2-0.3
-0.1
0.0
0.0
0.0
0.1
0.0
0.0
0.0
0.1
0.1
0.1
Stock
(Total: 0.4)
0.0 0.1 0.2 0.3 0.4-0.1-0.2-0.3
0.1
0.0
0.0
0.1
0.0
0.1
-0.1
0.1
0.0
0.0
0.0
Manager Evaluation
Vanguard International Growth (VWIGX) vs. MSCI AC World ex USA (Net)
1 Quarter Ending December 31, 2014
27
Top Ten Equity Holdings
Portfolio
Weight
(%)
Benchmark
Weight
(%)
Active
Weight
(%)
Quarterly
Return
(%)
Baidu Inc 3.3 0.0 3.3 4.5
AIA Group Ltd 2.8 0.4 2.4 7.6
Tencent Holdings LTD 2.7 0.4 2.2 -2.5
Fiat SPA, Torino 2.0 0.1 1.9 20.4
Softbank Corp 1.9 0.3 1.6 -14.2
Smc Corp 1.9 0.1 1.8 -3.3
Industria De Diseno Textil Inditex SA 1.8 0.2 1.6 5.0
Arm Holdings PLC 1.8 0.1 1.6 5.6
Amazon.com Inc 1.6 0.0 1.6 -3.7
Prudential PLC 1.5 0.3 1.2 4.3
% of Portfolio 21.1 1.9
Portfolio Characteristics
Portfolio Benchmark
Wtd. Avg. Mkt. Cap ($M)50,628 54,792
Median Mkt. Cap ($M)19,307 6,977
Price/Earnings ratio 17.0 14.9
Price/Book ratio 2.8 2.1
5 Yr. EPS Growth Rate (%)22.1 12.8
Current Yield (%)2.2 3.1
Debt to Equity 1.2 1.0
Number of Stocks 182 1,839
Beta (5 Years, Monthly)1.07 1.00
Consistency (5 Years, Monthly)53.33 1.00
Sharpe Ratio (5 Years, Monthly)0.46 0.34
Information Ratio (5 Years, Monthly)0.73 -
Up Market Capture (5 Years, Monthly)109.73 -
Down Market Capture (5 Years, Monthly)99.34 -
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
2.0
0.3
3.9
5.5
16.0
12.8
7.5
24.5
2.7
5.7
19.0
0.0
3.6
5.4
7.7
7.5
11.0
8.6
27.6
7.5
9.9
11.2
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
23.7
38.8
30.1
7.5
0.0
20.2
42.1
29.5
6.2
2.0
Manager Evaluation
Vanguard International Growth (VWIGX) vs. MSCI AC World ex USA (Net)
As of December 31, 2014
28
Vanguard
International Growth
(VWIGX)
MSCI AC World ex
USA (Net)
Australia 1.3 5.3
Hong Kong 5.4 3.7
Japan 12.1 15.0
New Zealand 0.0 0.1
Singapore 0.4 1.1
Pacific 19.2 25.2
Austria 0.0 0.1
Belgium 0.0 0.9
Finland 0.7 0.6
France 6.8 6.5
Germany 5.7 6.4
Ireland 0.9 0.2
Italy 4.2 1.6
Netherlands 0.8 2.1
Portugal 0.2 0.1
Spain 4.7 2.4
EMU 24.0 21.1
Denmark 1.8 1.1
Norway 1.5 0.5
Sweden 6.2 2.2
Switzerland 7.2 6.6
United Kingdom 13.7 15.0
Europe ex EMU 30.4 25.3
Canada 1.7 7.5
United States 1.6 0.0
Israel 1.1 0.4
Middle East 1.1 0.4
Developed Markets 78.1 79.6
Vanguard
International Growth
(VWIGX)
MSCI AC World ex
USA (Net)
Brazil 1.2 1.9
Cayman Islands 0.0 0.0
Chile 0.3 0.3
Colombia 0.0 0.2
Mexico 0.4 1.1
Peru 0.9 0.1
Virgin Islands 0.0 0.0
EM Latin America 2.8 3.5
China 8.1 3.3
India 2.6 1.5
Indonesia 0.3 0.6
Korea 2.2 3.2
Malaysia 0.0 0.8
Philippines 0.0 0.3
Taiwan 0.8 2.7
Thailand 0.7 0.5
EM Asia 14.7 12.9
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 0.7
South Africa 0.3 1.7
Turkey 1.0 0.4
United Arab Emirates 0.0 0.1
EM Europe + Middle East + Africa 1.5 3.7
Emerging Markets 19.0 20.2
Frontier Markets 0.7 0.0
Cash 2.0 0.0
Other 0.2 0.2
Total 100.0 100.0
Manager Evaluation
Vanguard International Growth (VWIGX) vs. MSCI AC World ex USA (Net)
As of December 31, 2014
29
Historical Performance
Three Year Rolling Percentile Ranking Relative Performance
Historical Statistics (Jan-2010 - Dec-2014)
Quarter
Year
To
Date
1
Year
3
Years
5
Years
10
Years 2013 2012 2011 2010 2009 2008 2007 2006 2005 2004
Vanguard Total Bond Market Index Fund (VBMFX)1.7 5.8 5.8 2.5 4.2 4.6 -2.3 4.0 7.6 6.4 5.9 5.1 6.9 4.3 2.4 4.2
Vanguard Total Bond Market Index Fund Benchmark 1.8 5.9 5.9 2.7 4.5 4.7 -2.0 4.3 7.9 6.6 5.9 5.2 7.0 4.3 2.4 4.3
Market Duration Fixed Income Peer Group Median 1.4 5.7 5.7 3.6 5.0 4.8 -1.8 7.0 6.7 7.5 12.5 -1.7 5.7 4.2 2.1 4.3
Vanguard Total Bond Market Index Fund (VBMFX) Rank 15 47 47 86 86 65 74 91 18 82 93 13 18 45 32 57
Cumulative Annualized Over/Under Relative Performance
Over/Under Performance
0.0
0.3
0.6
-0.3
-0.6Return (%)3/05 3/06 3/07 3/08 3/09 3/10 3/11 3/12 3/13 3/14 12/14
Vanguard Total Bond Market Index Fund (VBMFX)
Vanguard Total Bond Market Index Fund Benchmark
0
25
50
75
100Return Percentile Rank3/05 3/06 3/07 3/08 3/09 3/10 3/11 3/12 3/13 3/14 12/14
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
Vanguard Total Bond Market Index Fund Benchmark 4.5 3.0 4.4 0.0 1.0 1.5 0.0 N/A 1.2 0.0 28y
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
Manager Evaluation
Vanguard Total Bond Market Index Fund (VBMFX) vs. Vanguard Total Bond Market Index Fund Benchmark
As of December 31, 2014
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
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
AAAAAABBBBBBBelow BNot Rated68.5
5.1
13.1 13.3
0.0 0.0 0.0 0.0
68.7
4.2
13.4 13.7
0.0 0.0 0.0 0.0
Portfolio Characteristics
Portfolio Benchmark
Effective Duration 5.5 5.7
Avg. Maturity 7.5 7.8
Avg. Quality AA+AA+
Yield To Maturity (%)2.1 2.2
Sector Distribution (%)
Vanguard Total Bond Market Index (VBMFX)
Barclays U.S. Aggregate Float Adjusted
0.0
15.0
30.0
45.0
60.0
TreasuriesTIPSAgenciesCreditHigh YieldMBSABSNon-USEmergingMunicipalsCashOtherCMBS40.1
0.0
4.5
21.7
0.0
20.8
0.6
7.5
2.6 0.0 0.0 0.0 2.2
41.5
0.0
3.6
26.8
0.0
13.4
0.6
6.9
0.0 0.0 0.0
4.9 2.3
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
27.0
22.2
35.0
3.7
12.1
5.9
26.8
20.8
30.5
3.7
12.3
Manager Evaluation
Vanguard Total Bond Market Index (VBMFX) vs. Barclays U.S. Aggregate Float Adjusted
As of December 31, 2014
31
Historical Performance
Three Year Rolling Percentile Ranking Relative Performance
Historical Statistics (Jan-2010 - Dec-2014)
Quarter
Year
To
Date
1
Year
3
Years
5
Years
10
Years 2013 2012 2011 2010 2009 2008 2007 2006 2005 2004
Vanguard Retirement Savings Trust 0.5 1.8 1.8 2.0 2.4 3.2 1.7 2.4 2.9 2.9 3.0 4.3 4.5 4.3 4.1 3.9
Ryan 3 Yr GIC Master 0.3 1.0 1.0 1.2 1.9 3.0 1.1 1.5 2.4 3.5 4.5 4.8 4.5 3.8 3.2 3.4
Short Duration Fixed Income Peer Group 0.0 0.7 0.7 1.5 2.0 2.9 0.3 2.7 1.4 3.4 6.7 -0.1 5.4 4.2 1.6 1.8
Vanguard Retirement Savings Trust Rank 1 7 7 29 33 28 5 55 8 68 79 28 70 38 1 1
Cumulative Annualized Over/Under Relative Performance
Over/Under Performance
0.0
0.7
1.4
2.1
-0.7
-1.4Return (%)3/05 3/06 3/07 3/08 3/09 3/10 3/11 3/12 3/13 3/14 12/14
Vanguard Retirement Savings Trust Ryan 3 Yr GIC Master
0
25
50
75
100Return Percentile Rank3/05 3/06 3/07 3/08 3/09 3/10 3/11 3/12 3/13 3/14 12/14
Return
Standard
Deviation
Excess
Return Alpha Beta
Sharpe
Ratio
Tracking
Error
Information
Ratio
Downside
Risk Consistency
Inception
Date
Vanguard Retirement Savings Trust 2.4 0.3 2.3 1.5 0.5 8.9 0.3 1.5 0.0 80.0 12y
Ryan 3 Yr GIC Master 1.9 0.5 1.8 0.0 1.0 3.9 0.0 N/A 0.0 0.0 12y
90 Day U.S. Treasury Bill 0.1 0.0 0.0 0.0 0.0 N/A 0.5 -3.9 0.0 0.0 12y
Manager Evaluation
Vanguard Retirement Savings Trust vs. Ryan 3 Yr GIC Master
As of December 31, 2014
32
Historical Performance
Three Year Rolling Percentile Ranking Relative Performance
Historical Statistics (Jan-2010 - Dec-2014)
Quarter
Year
To
Date
1
Year
3
Years
5
Years
10
Years 2013 2012 2011 2010 2009 2008 2007 2006 2005 2004
Vanguard Balanced Index Fund (VBINX)3.9 9.8 9.8 13.0 11.2 6.9 17.9 11.3 4.1 13.1 20.1 -22.2 6.2 11.0 4.7 9.3
Vanguard Balanced Index Fund Benchmark 3.8 9.9 9.9 13.2 11.4 7.1 18.2 11.6 4.1 13.5 19.7 -22.0 6.3 11.1 4.9 9.2
60% Equity / 40% Fixed Peer Group Median 2.8 6.6 6.6 12.2 9.9 6.1 19.2 10.7 0.8 12.3 21.6 -23.1 6.0 9.7 5.0 8.5
Vanguard Balanced Index Fund (VBINX) Rank 14 10 10 30 15 17 70 39 10 34 63 41 49 30 58 36
Cumulative Annualized Over/Under Relative Performance
Over/Under Performance
0.0
0.4
0.8
-0.4
-0.8Return (%)3/05 3/06 3/07 3/08 3/09 3/10 3/11 3/12 3/13 3/14 12/14
Vanguard Balanced Index Fund (VBINX)
Vanguard Balanced Index Fund Benchmark
0
25
50
75
100Return Percentile Rank3/05 3/06 3/07 3/08 3/09 3/10 3/11 3/12 3/13 3/14 12/14
Return
Standard
Deviation
Excess
Return Alpha Beta
Sharpe
Ratio
Tracking
Error
Information
Ratio
Downside
Risk Consistency
Inception
Date
Vanguard Balanced Index Fund (VBINX)11.2 8.2 11.0 -0.1 1.0 1.3 0.2 -1.0 4.3 30.0 22y 1m
Vanguard Balanced Index Fund Benchmark 11.4 8.3 11.2 0.0 1.0 1.3 0.0 N/A 4.3 0.0 22y 1m
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 1m
Manager Evaluation
Vanguard Balanced Index Fund (VBINX) vs. Vanguard Balanced Index Fund Benchmark
As of December 31, 2014
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
Top Ten Equity Holdings
Portfolio
Weight
(%)
Benchmark
Weight
(%)
Active
Weight
(%)
Quarterly
Return
(%)
Apple Inc 2.9 2.9 0.0 10.0
Exxon Mobil Corp 1.7 1.7 0.0 -1.0
Microsoft Corp 1.5 1.5 0.0 0.8
Johnson & Johnson 1.3 1.3 0.0 -1.3
Wells Fargo & Co 1.3 1.3 0.0 6.4
General Electric Co 1.1 1.1 0.0 -0.5
Berkshire Hathaway Inc 1.1 0.8 0.3 8.7
Procter & Gamble Co (The)1.1 1.1 0.0 9.6
JPMorgan Chase & Co 1.0 1.0 0.0 4.6
Chevron Corp 0.9 0.9 0.0 -5.1
% of Portfolio 14.0 13.7
Portfolio Characteristics
Portfolio Benchmark
Wtd. Avg. Mkt. Cap ($M)107,404 106,986
Median Mkt. Cap ($M)1,238 882
Price/Earnings ratio 19.2 19.2
Price/Book ratio 3.0 3.0
5 Yr. EPS Growth Rate (%)15.6 15.8
Current Yield (%)1.9 1.9
Debt to Equity 1.1 1.2
Number of Stocks 3,336 3,805
Beta (5 Years, Monthly)0.58 1.00
Consistency (5 Years, Monthly)35.00 1.00
Sharpe Ratio (5 Years, Monthly)1.39 1.16
Information Ratio (5 Years, Monthly)-0.80 -
Up Market Capture (5 Years, Monthly)62.82 -
Down Market Capture (5 Years, Monthly)53.32 -
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
Utilities
Telecommunication Services
Materials
Information Technology
Industrials
Health Care
Financials
Energy
Consumer Staples
Consumer Discretionary
3.3
2.0
3.5
19.1
11.2
14.1
18.1
7.7
8.5
12.5
3.3
2.0
3.6
19.0
11.2
14.1
18.1
7.6
8.5
12.6
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
40.6
28.3
18.8
12.4
40.8
28.3
18.7
12.2
Manager Evaluation
Vanguard Balanced Index Fund (VBINX) - Equity Holdings vs. CRSP U.S. Total Market TR Index
As of December 31, 2014
34
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
AAAAAABBBBBBBelow BNot Rated68.5
5.1
13.1 13.3
0.0 0.0 0.0 0.0
69.8
4.0
12.9 13.3
0.0 0.0 0.0 0.0
Portfolio Characteristics
Portfolio Benchmark
Effective Duration 5.7 5.7
Avg. Maturity 7.8 7.8
Avg. Quality AA+AA+
Yield To Maturity (%)2.2 2.2
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
TreasuriesTIPSAgenciesCreditHigh YieldMBSABSNon-USEmergingMunicipalsCashOtherCMBS40.1
0.0
4.5
21.7
0.0
20.8
0.6
7.5
2.6 0.0 0.0 0.0 2.2
40.9
0.0
3.4
25.4
0.0
20.5
3.1 5.7
0.0 0.0 0.0 1.0 0.0
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
27.0
22.2
35.0
3.7
12.1
24.0
19.0 19.5
8.8
28.7
0.0
Manager Evaluation
Vanguard Balanced Index Fund (VBINX) - Fixed Income Holdings vs. Barclays U.S. Aggregate Float Adjusted
As of December 31, 2014
35
Historical Performance
Three Year Rolling Percentile Ranking Risk and Return (Jan-2010 - Dec-2014)
Historical Statistics (Jan-2010 - Dec-2014)
Quarter
Year
To
Date
1
Year
3
Years
5
Years
10
Years 2013 2012 2011 2010 2009 2008 2007 2006 2005 2004
Vanguard Target Retirement Income (VTINX)1.6 5.6 5.6 6.6 6.9 5.4 5.9 8.2 5.2 9.4 14.3 -10.9 8.2 6.4 3.3 6.8
Vanguard Target Income Composite Index 1.6 5.8 5.8 6.7 7.0 5.4 6.0 8.4 5.3 9.4 14.3 -11.3 8.1 6.5 3.4 6.9
35% Equity / 65% Fixed Peer Group Median 2.0 5.8 5.8 8.2 7.7 5.4 10.7 8.2 2.8 9.8 16.8 -13.2 6.0 7.5 3.7 6.2
Vanguard Target Retirement Income (VTINX) Rank 74 54 54 88 71 53 93 50 12 58 68 34 15 73 63 37
6.6
6.8
7.0
7.2
Return (%)3.9 4.0
Risk (Standard Deviation %)
Vanguard Target Income Composite Index
Vanguard Target Retirement Income (VTINX)
Vanguard Target Retirement Income (VTINX)
Vanguard Target Income Composite Index
0
25
50
75
100Return Percentile Rank3/05 3/06 3/07 3/08 3/09 3/10 3/11 3/12 3/13 3/14 12/14
Return
Standard
Deviation
Excess
Return Alpha Beta
Sharpe
Ratio
Tracking
Error
Information
Ratio
Downside
Risk Consistency
Inception
Date
Vanguard Target Retirement Income (VTINX)6.9 3.9 6.7 -0.1 1.0 1.7 0.1 -1.0 1.5 35.0 11y 2m
Vanguard Target Income Composite Index 7.0 3.9 6.8 0.0 1.0 1.7 0.0 N/A 1.5 0.0 11y 2m
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 2m
Manager Evaluation
Vanguard Target Retirement Income (VTINX) vs. Vanguard Target Income Composite Index
As of December 31, 2014
36
Historical Performance
Three Year Rolling Percentile Ranking Risk and Return (Jan-2010 - Dec-2014)
Historical Statistics (Jan-2010 - Dec-2014)
Quarter
Year
To
Date
1
Year
3
Years
5
Years
10
Years 2013 2012 2011 2010 2009 2008 2007 2006 2005 2004
Vanguard Target Retirement 2010 (VTENX)1.7 5.9 5.9 8.4 7.9 N/A 9.1 10.1 3.4 11.4 19.3 -20.7 7.7 N/A N/A N/A
Vanguard Target 2010 Composite Index 1.7 6.1 6.1 8.5 8.0 N/A 9.3 10.2 3.3 11.5 19.3 -20.9 7.7 N/A N/A N/A
40% Equity / 60% Fixed Peer Group Median 2.2 6.0 6.0 9.0 8.0 5.6 12.5 8.7 2.4 10.4 17.4 -15.5 5.8 7.9 4.0 6.7
Vanguard Target Retirement 2010 (VTENX) Rank 74 51 51 71 53 N/A 90 32 32 31 36 80 24 N/A N/A N/A
7.8
7.9
8.0
8.1
8.2
Return (%)6.3 6.4
Risk (Standard Deviation %)
Vanguard Target 2010 Composite Index
Vanguard Target Retirement 2010 (VTENX)
Vanguard Target Retirement 2010 (VTENX)
Vanguard Target 2010 Composite Index
0
25
50
75
100Return Percentile Rank3/05 3/06 3/07 3/08 3/09 3/10 3/11 3/12 3/13 3/14 12/14
Return
Standard
Deviation
Excess
Return Alpha Beta
Sharpe
Ratio
Tracking
Error
Information
Ratio
Downside
Risk Consistency
Inception
Date
Vanguard Target Retirement 2010 (VTENX)7.9 6.3 7.8 -0.1 1.0 1.2 0.1 -0.9 3.3 30.0 8y 6m
Vanguard Target 2010 Composite Index 8.0 6.4 7.9 0.0 1.0 1.2 0.0 N/A 3.3 0.0 8y 6m
90 Day U.S. Treasury Bill 0.1 0.0 0.0 0.1 0.0 N/A 6.4 -1.2 0.0 25.0 8y 6m
Manager Evaluation
Vanguard Target Retirement 2010 (VTENX) vs. Vanguard Target 2010 Composite Index
As of December 31, 2014
37
Historical Performance
Three Year Rolling Percentile Ranking Risk and Return (Jan-2010 - Dec-2014)
Historical Statistics (Jan-2010 - Dec-2014)
Quarter
Year
To
Date
1
Year
3
Years
5
Years
10
Years 2013 2012 2011 2010 2009 2008 2007 2006 2005 2004
Vanguard Target Retirement 2015 (VTXVX)1.9 6.5 6.5 10.3 8.9 5.9 13.0 11.4 1.7 12.5 21.3 -24.1 7.5 11.4 4.9 9.0
Vanguard Target 2015 Composite Index 2.0 6.8 6.8 10.5 9.0 5.9 13.3 11.5 1.6 12.5 21.2 -24.4 7.6 11.5 5.0 9.1
55% Equity / 45% Fixed Peer Group Median 2.7 6.5 6.5 11.4 9.5 6.0 17.5 10.2 1.3 11.7 20.9 -21.2 6.1 9.4 4.7 8.0
Vanguard Target Retirement 2015 (VTXVX) Rank 77 49 49 77 66 55 91 30 42 35 48 72 32 17 44 31
8.8
8.9
9.0
9.1
9.2
Return (%)7.9 8.0 8.1
Risk (Standard Deviation %)
Vanguard Target 2015 Composite Index
Vanguard Target Retirement 2015 (VTXVX)
Vanguard Target Retirement 2015 (VTXVX)
Vanguard Target 2015 Composite Index
0
25
50
75
100Return Percentile Rank3/05 3/06 3/07 3/08 3/09 3/10 3/11 3/12 3/13 3/14 12/14
Return
Standard
Deviation
Excess
Return Alpha Beta
Sharpe
Ratio
Tracking
Error
Information
Ratio
Downside
Risk Consistency
Inception
Date
Vanguard Target Retirement 2015 (VTXVX)8.9 8.0 8.9 -0.1 1.0 1.1 0.1 -0.8 4.5 30.0 11y 2m
Vanguard Target 2015 Composite Index 9.0 8.0 9.0 0.0 1.0 1.1 0.0 N/A 4.5 0.0 11y 2m
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 2m
Manager Evaluation
Vanguard Target Retirement 2015 (VTXVX) vs. Vanguard Target 2015 Composite Index
As of December 31, 2014
38
Historical Performance
Three Year Rolling Percentile Ranking Risk and Return (Jan-2010 - Dec-2014)
Historical Statistics (Jan-2010 - Dec-2014)
Quarter
Year
To
Date
1
Year
3
Years
5
Years
10
Years 2013 2012 2011 2010 2009 2008 2007 2006 2005 2004
Vanguard Target Retirement 2020 (VTWNX)2.3 7.1 7.1 11.7 9.7 N/A 15.8 12.3 0.6 13.1 23.1 -27.0 7.5 N/A N/A N/A
Vanguard Target 2020 Composite Index 2.3 7.4 7.4 12.0 9.9 N/A 16.2 12.5 1.0 13.3 23.3 -27.4 7.6 N/A N/A N/A
65% Equity / 35% Fixed Peer Group Median 3.0 6.9 6.9 12.9 10.4 6.3 20.9 11.3 0.3 12.9 22.7 -25.1 6.2 10.3 5.3 8.9
Vanguard Target Retirement 2020 (VTWNX) Rank 77 46 46 74 72 N/A 91 32 46 46 48 69 39 N/A N/A N/A
9.6
9.9
10.2
10.5
Return (%)9.1 9.2 9.3 9.4
Risk (Standard Deviation %)
Vanguard Target 2020 Composite Index
Vanguard Target Retirement 2020 (VTWNX)
Vanguard Target Retirement 2020 (VTWNX)
Vanguard Target 2020 Composite Index
0
25
50
75
100Return Percentile Rank3/05 3/06 3/07 3/08 3/09 3/10 3/11 3/12 3/13 3/14 12/14
Return
Standard
Deviation
Excess
Return Alpha Beta
Sharpe
Ratio
Tracking
Error
Information
Ratio
Downside
Risk Consistency
Inception
Date
Vanguard Target Retirement 2020 (VTWNX)9.7 9.3 9.7 -0.3 1.0 1.0 0.2 -1.5 5.5 25.0 8y 6m
Vanguard Target 2020 Composite Index 9.9 9.2 9.9 0.0 1.0 1.1 0.0 N/A 5.4 0.0 8y 6m
90 Day U.S. Treasury Bill 0.1 0.0 0.0 0.1 0.0 N/A 9.2 -1.1 0.0 25.0 8y 6m
Manager Evaluation
Vanguard Target Retirement 2020 (VTWNX) vs. Vanguard Target 2020 Composite Index
As of December 31, 2014
39
Historical Performance
Three Year Rolling Percentile Ranking Risk and Return (Jan-2010 - Dec-2014)
Historical Statistics (Jan-2010 - Dec-2014)
Quarter
Year
To
Date
1
Year
3
Years
5
Years
10
Years 2013 2012 2011 2010 2009 2008 2007 2006 2005 2004
Vanguard Target Retirement 2025 (VTTVX)2.3 7.2 7.2 12.8 10.2 6.2 18.1 13.3 -0.4 13.8 24.8 -30.1 7.6 13.2 5.4 10.1
Vanguard Target 2025 Composite Index 2.4 7.4 7.4 13.0 10.5 6.3 18.5 13.4 0.1 13.9 25.2 -30.4 7.6 13.4 5.6 10.1
70% Equity / 30% Fixed Peer Group Median 3.2 7.0 7.0 13.6 10.9 6.4 22.5 11.8 -0.1 13.1 23.5 -27.1 6.2 10.8 5.5 9.3
Vanguard Target Retirement 2025 (VTTVX) Rank 79 47 47 68 68 61 89 24 57 38 41 80 35 20 52 36
9.9
10.2
10.5
10.8
Return (%)10.3 10.4 10.5 10.6
Risk (Standard Deviation %)
Vanguard Target 2025 Composite Index
Vanguard Target Retirement 2025 (VTTVX)
Vanguard Target Retirement 2025 (VTTVX)
Vanguard Target 2025 Composite Index
0
25
50
75
100Return Percentile Rank3/05 3/06 3/07 3/08 3/09 3/10 3/11 3/12 3/13 3/14 12/14
Return
Standard
Deviation
Excess
Return Alpha Beta
Sharpe
Ratio
Tracking
Error
Information
Ratio
Downside
Risk Consistency
Inception
Date
Vanguard Target Retirement 2025 (VTTVX)10.2 10.5 10.3 -0.3 1.0 1.0 0.2 -1.3 6.4 30.0 11y 2m
Vanguard Target 2025 Composite Index 10.5 10.4 10.6 0.0 1.0 1.0 0.0 N/A 6.2 0.0 11y 2m
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 2m
Manager Evaluation
Vanguard Target Retirement 2025 (VTTVX) vs. Vanguard Target 2025 Composite Index
As of December 31, 2014
40
Historical Performance
Three Year Rolling Percentile Ranking Risk and Return (Jan-2010 - Dec-2014)
Historical Statistics (Jan-2010 - Dec-2014)
Quarter
Year
To
Date
1
Year
3
Years
5
Years
10
Years 2013 2012 2011 2010 2009 2008 2007 2006 2005 2004
Vanguard Target Retirement 2030 (VTHRX)2.3 7.2 7.2 13.8 10.8 N/A 20.5 14.2 -1.3 14.4 26.7 -32.9 7.5 N/A N/A N/A
Vanguard Target 2030 Composite Index 2.4 7.5 7.5 14.1 11.0 N/A 20.9 14.3 -0.9 14.6 27.0 -33.3 7.6 N/A N/A N/A
80% Equity / 20% Fixed Peer Group Median 3.6 7.4 7.4 15.1 11.8 6.7 25.8 12.9 -0.8 14.2 25.7 -30.9 6.3 11.7 5.9 10.1
Vanguard Target Retirement 2030 (VTHRX) Rank 83 54 54 73 76 N/A 89 27 59 45 43 76 38 N/A N/A N/A
10.2
10.5
10.8
11.1
11.4
11.7
Return (%)11.5 11.6 11.7 11.8 11.9
Risk (Standard Deviation %)
Vanguard Target 2030 Composite Index
Vanguard Target Retirement 2030 (VTHRX)
Vanguard Target Retirement 2030 (VTHRX)
Vanguard Target 2030 Composite Index
0
25
50
75
100Return Percentile Rank3/05 3/06 3/07 3/08 3/09 3/10 3/11 3/12 3/13 3/14 12/14
Return
Standard
Deviation
Excess
Return Alpha Beta
Sharpe
Ratio
Tracking
Error
Information
Ratio
Downside
Risk Consistency
Inception
Date
Vanguard Target Retirement 2030 (VTHRX)10.8 11.7 11.0 -0.3 1.0 0.9 0.2 -1.1 7.3 35.0 8y 6m
Vanguard Target 2030 Composite Index 11.0 11.6 11.2 0.0 1.0 1.0 0.0 N/A 7.1 0.0 8y 6m
90 Day U.S. Treasury Bill 0.1 0.0 0.0 0.1 0.0 N/A 11.6 -1.0 0.0 20.0 8y 6m
Manager Evaluation
Vanguard Target Retirement 2030 (VTHRX) vs. Vanguard Target 2030 Composite Index
As of December 31, 2014
41
Historical Performance
Three Year Rolling Percentile Ranking Risk and Return (Jan-2010 - Dec-2014)
Historical Statistics (Jan-2010 - Dec-2014)
Quarter
Year
To
Date
1
Year
3
Years
5
Years
10
Years 2013 2012 2011 2010 2009 2008 2007 2006 2005 2004
Vanguard Target Retirement 2035 (VTTHX)2.4 7.3 7.3 14.9 11.3 6.5 22.8 15.2 -2.2 15.1 28.2 -34.7 7.5 15.2 6.3 12.0
Vanguard Target 2035 Composite Index 2.4 7.6 7.6 15.2 11.6 6.7 23.3 15.2 -1.9 15.2 28.7 -35.1 7.6 15.4 6.5 11.9
85% Equity / 15% Fixed Peer Group Median 3.7 7.5 7.5 16.0 12.3 6.9 27.3 13.3 -1.0 14.6 26.8 -32.7 6.5 12.2 6.3 10.6
Vanguard Target Retirement 2035 (VTTHX) Rank 84 56 56 71 76 65 87 21 68 41 40 75 41 19 51 31
11.1
11.4
11.7
12.0
Return (%)12.7 12.8 12.9 13.0 13.1
Risk (Standard Deviation %)
Vanguard Target 2035 Composite Index
Vanguard Target Retirement 2035 (VTTHX)
Vanguard Target Retirement 2035 (VTTHX)
Vanguard Target 2035 Composite Index
0
25
50
75
100Return Percentile Rank3/05 3/06 3/07 3/08 3/09 3/10 3/11 3/12 3/13 3/14 12/14
Return
Standard
Deviation
Excess
Return Alpha Beta
Sharpe
Ratio
Tracking
Error
Information
Ratio
Downside
Risk Consistency
Inception
Date
Vanguard Target Retirement 2035 (VTTHX)11.3 13.0 11.6 -0.3 1.0 0.9 0.3 -0.8 8.1 40.0 11y 2m
Vanguard Target 2035 Composite Index 11.6 12.8 11.8 0.0 1.0 0.9 0.0 N/A 8.0 0.0 11y 2m
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 2m
Manager Evaluation
Vanguard Target Retirement 2035 (VTTHX) vs. Vanguard Target 2035 Composite Index
As of December 31, 2014
42
Historical Performance
Three Year Rolling Percentile Ranking Risk and Return (Jan-2010 - Dec-2014)
Historical Statistics (Jan-2010 - Dec-2014)
Quarter
Year
To
Date
1
Year
3
Years
5
Years
10
Years 2013 2012 2011 2010 2009 2008 2007 2006 2005 2004
Vanguard Target Retirement 2040 (VFORX)2.3 7.1 7.1 15.5 11.6 N/A 24.4 15.6 -2.5 15.2 28.3 -34.5 7.5 N/A N/A N/A
Vanguard Target 2040 Composite Index 2.5 7.6 7.6 15.8 11.9 N/A 24.8 15.6 -2.1 15.3 28.7 -35.1 7.6 N/A N/A N/A
90% Equity / 10% Fixed Peer Group Median 3.8 8.0 8.0 16.5 12.8 7.0 29.4 13.7 -1.4 15.2 27.5 -34.5 6.5 12.6 6.5 11.0
Vanguard Target Retirement 2040 (VFORX) Rank 85 63 63 69 79 N/A 87 24 68 51 46 51 42 N/A N/A N/A
11.1
11.4
11.7
12.0
12.3
Return (%)13.0 13.1 13.2 13.3
Risk (Standard Deviation %)
Vanguard Target 2040 Composite Index
Vanguard Target Retirement 2040 (VFORX)
Vanguard Target Retirement 2040 (VFORX)
Vanguard Target 2040 Composite Index
0
25
50
75
100Return Percentile Rank3/05 3/06 3/07 3/08 3/09 3/10 3/11 3/12 3/13 3/14 12/14
Return
Standard
Deviation
Excess
Return Alpha Beta
Sharpe
Ratio
Tracking
Error
Information
Ratio
Downside
Risk Consistency
Inception
Date
Vanguard Target Retirement 2040 (VFORX)11.6 13.2 11.9 -0.4 1.0 0.9 0.2 -1.1 8.3 35.0 8y 6m
Vanguard Target 2040 Composite Index 11.9 13.1 12.2 0.0 1.0 0.9 0.0 N/A 8.1 0.0 8y 6m
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 6m
Manager Evaluation
Vanguard Target Retirement 2040 (VFORX) vs. Vanguard Target 2040 Composite Index
As of December 31, 2014
43
Historical Performance
Three Year Rolling Percentile Ranking Risk and Return (Jan-2010 - Dec-2014)
Historical Statistics (Jan-2010 - Dec-2014)
Quarter
Year
To
Date
1
Year
3
Years
5
Years
10
Years 2013 2012 2011 2010 2009 2008 2007 2006 2005 2004
Vanguard Target Retirement 2045 (VTIVX)2.2 7.1 7.1 15.5 11.6 6.8 24.4 15.6 -2.5 15.2 28.2 -34.6 7.5 16.0 6.9 12.9
Vanguard Target 2045 Composite Index 2.5 7.6 7.6 15.8 11.9 7.0 24.8 15.6 -2.1 15.3 28.7 -35.1 7.6 16.2 7.1 13.0
90% Equity / 10% Fixed Peer Group Median 3.8 8.0 8.0 16.5 12.8 7.0 29.4 13.7 -1.4 15.2 27.5 -34.5 6.5 12.6 6.5 11.0
Vanguard Target Retirement 2045 (VTIVX) Rank 86 63 63 69 79 61 87 23 67 51 47 51 42 17 43 27
11.1
11.4
11.7
12.0
12.3
Return (%)13.0 13.1 13.2 13.3
Risk (Standard Deviation %)
Vanguard Target 2045 Composite Index
Vanguard Target Retirement 2045 (VTIVX)
Vanguard Target Retirement 2045 (VTIVX)
Vanguard Target 2045 Composite Index
0
25
50
75
100Return Percentile Rank3/05 3/06 3/07 3/08 3/09 3/10 3/11 3/12 3/13 3/14 12/14
Return
Standard
Deviation
Excess
Return Alpha Beta
Sharpe
Ratio
Tracking
Error
Information
Ratio
Downside
Risk Consistency
Inception
Date
Vanguard Target Retirement 2045 (VTIVX)11.6 13.2 11.9 -0.4 1.0 0.9 0.2 -1.0 8.3 40.0 11y 2m
Vanguard Target 2045 Composite Index 11.9 13.1 12.2 0.0 1.0 0.9 0.0 N/A 8.1 0.0 11y 2m
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 2m
Manager Evaluation
Vanguard Target Retirement 2045 (VTIVX) vs. Vanguard Target 2045 Composite Index
As of December 31, 2014
44
Historical Performance
Three Year Rolling Percentile Ranking Risk and Return (Jan-2010 - Dec-2014)
Historical Statistics (Jan-2010 - Dec-2014)
Quarter
Year
To
Date
1
Year
3
Years
5
Years
10
Years 2013 2012 2011 2010 2009 2008 2007 2006 2005 2004
Vanguard Target Retirement 2050 (VFIFX)2.3 7.2 7.2 15.5 11.6 N/A 24.3 15.6 -2.5 15.2 28.3 -34.6 7.5 N/A N/A N/A
Vanguard Target 2050 Composite Index 2.5 7.6 7.6 15.8 11.9 N/A 24.8 15.6 -2.1 15.3 28.7 -35.1 7.6 N/A N/A N/A
90% Equity / 10% Fixed Peer Group Median 3.8 8.0 8.0 16.5 12.8 7.0 29.4 13.7 -1.4 15.2 27.5 -34.5 6.5 12.6 6.5 11.0
Vanguard Target Retirement 2050 (VFIFX) Rank 85 63 63 69 79 N/A 87 23 68 51 46 52 42 N/A N/A N/A
11.1
11.4
11.7
12.0
12.3
Return (%)13.0 13.1 13.2 13.3
Risk (Standard Deviation %)
Vanguard Target 2050 Composite Index
Vanguard Target Retirement 2050 (VFIFX)
Vanguard Target Retirement 2050 (VFIFX)
Vanguard Target 2050 Composite Index
0
25
50
75
100Return Percentile Rank3/05 3/06 3/07 3/08 3/09 3/10 3/11 3/12 3/13 3/14 12/14
Return
Standard
Deviation
Excess
Return Alpha Beta
Sharpe
Ratio
Tracking
Error
Information
Ratio
Downside
Risk Consistency
Inception
Date
Vanguard Target Retirement 2050 (VFIFX)11.6 13.2 11.9 -0.4 1.0 0.9 0.2 -1.1 8.3 35.0 8y 6m
Vanguard Target 2050 Composite Index 11.9 13.1 12.2 0.0 1.0 0.9 0.0 N/A 8.1 0.0 8y 6m
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 6m
Manager Evaluation
Vanguard Target Retirement 2050 (VFIFX) vs. Vanguard Target 2050 Composite Index
As of December 31, 2014
45
Historical Performance
Three Year Rolling Percentile Ranking Risk and Return (Oct-2010 - Dec-2014)
Historical Statistics (Oct-2010 - Dec-2014)
Quarter
Year
To
Date
1
Year
3
Years
5
Years
10
Years 2013 2012 2011 2010 2009 2008 2007 2006 2005 2004
Vanguard Target Retirement 2055 (VFFVX)2.3 7.2 7.2 15.5 N/A N/A 24.3 15.6 -2.3 N/A N/A N/A N/A N/A N/A N/A
Vanguard Target 2055 Composite Index 2.5 7.6 7.6 15.8 N/A N/A 24.8 15.6 -2.1 N/A N/A N/A N/A N/A N/A N/A
90% Equity / 10% Fixed Peer Group Median 3.8 8.0 8.0 16.5 12.8 7.0 29.4 13.7 -1.4 15.2 27.5 -34.5 6.5 12.6 6.5 11.0
Vanguard Target Retirement 2055 (VFFVX) Rank 85 63 63 69 N/A N/A 87 23 63 N/A N/A N/A N/A N/A N/A N/A
12.2
12.4
12.6
12.8
13.0
Return (%)11.9 12.0 12.1
Risk (Standard Deviation %)
Vanguard Target 2055 Composite Index
Vanguard Target Retirement 2055 (VFFVX)
Vanguard Target Retirement 2055 (VFFVX)
Vanguard Target 2055 Composite Index
0
25
50
75
100Return Percentile Rank3/05 3/06 3/07 3/08 3/09 3/10 3/11 3/12 3/13 3/14 12/14
Return
Standard
Deviation
Excess
Return Alpha Beta
Sharpe
Ratio
Tracking
Error
Information
Ratio
Downside
Risk Consistency
Inception
Date
Vanguard Target Retirement 2055 (VFFVX)12.5 12.0 12.6 -0.3 1.0 1.0 0.2 -0.8 7.4 29.4 4y 3m
Vanguard Target 2055 Composite Index 12.7 12.0 12.8 0.0 1.0 1.1 0.0 N/A 7.3 0.0 4y 3m
90 Day U.S. Treasury Bill 0.1 0.0 0.0 0.1 0.0 N/A 12.0 -1.1 0.0 17.6 4y 3m
Manager Evaluation
Vanguard Target Retirement 2055 (VFFVX) vs. Vanguard Target 2055 Composite Index
As of December 31, 2014
46
Historical Performance
Three Year Rolling Percentile Ranking Risk and Return (Apr-2012 - Dec-2014)
Historical Statistics (Feb-2012 - Dec-2014)
Quarter
Year
To
Date
1
Year
3
Years
5
Years
10
Years 2013 2012 2011 2010 2009 2008 2007 2006 2005 2004
Vanguard Target Retirement 2060 (VTTSX)2.3 7.2 7.2 N/A N/A N/A 24.3 N/A N/A N/A N/A N/A N/A N/A N/A N/A
Vanguard Target 2060 Composite Index 2.5 7.6 7.6 15.8 N/A N/A 24.8 15.6 N/A N/A N/A N/A N/A N/A N/A N/A
90% Equity / 10% Fixed Peer Group Median 3.8 8.0 8.0 16.5 12.8 7.0 29.4 13.7 -1.4 15.2 27.5 -34.5 6.5 12.6 6.5 11.0
Vanguard Target Retirement 2060 (VTTSX) Rank 86 63 63 N/A N/A N/A 87 N/A N/A N/A N/A N/A N/A N/A N/A N/A
12.4
12.6
12.8
13.0
13.2
Return (%)7.0 7.1 7.2 7.3 7.4
Risk (Standard Deviation %)
Vanguard Target 2060 Composite Index
Vanguard Target Retirement 2060 (VTTSX)
Vanguard Target Retirement 2060 (VTTSX)
Vanguard Target 2060 Composite Index
0
25
50
75
100Return Percentile Rank3/05 3/06 3/07 3/08 3/09 3/10 3/11 3/12 3/13 3/14 12/14
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 2y 11m
Vanguard Target 2060 Composite Index 15.8 8.3 15.2 0.0 1.0 1.8 0.0 N/A 2.4 0.0 2y 11m
90 Day U.S. Treasury Bill 0.1 0.0 0.0 0.1 0.0 N/A 8.3 -1.8 0.0 16.7 2y 11m
Manager Evaluation
Vanguard Target Retirement 2060 (VTTSX) vs. Vanguard Target 2060 Composite Index
As of December 31, 2014
47
Manager Evaluation
Ta rget-Date Funds Asset Allocation
As of December 31, 2014
U.S.Equi ty 21.3%25.5%35.9%42.5%47.9%52.8%58.2%62.7%62.9%62.7%62.8%62.8%
Va nguard Total St ock M arke t Index Fu nd 21.3%25.5%35.9%42.5%47.9%52.8%58.2%62.7%62.9%62.7%62.8%62.8%
Non-U.S . Equ ity 8.9%10.9%15.0%18.0%25.6%22.5%24.7%27.2%27.0%27.2%27.2%27.1%
Va nguard Total In ternational Stock In dex F und 8.9%10.9%15.0%18.0%25.6%22.5%24.7%27.2%27.0%27.2%27.2%27.1%
Fi xe d In come 69.8%63.6%49.1%39.5%26.5%24.7%17.1%10.1%10.1%10.1%10.0%10.1%
Va nguard Total Bo nd Marke t II In dex F und 39.0%37.1%31.9%31.7%20.2%19.9%13.8%8.1%8.1%8.1%8.1%8.2%
Va nguard Total In ternational Bo nd Index Fu nd 14.1%12.7%9.9%7.8%6.3%4.8%3.3%2.0%2.0%2.0%1.9%1.9%
Va nguard Infla tion-Pro tected Securit ie s Fund 16.7%13.8%7.3%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
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
2055VanguardComponent Funds
Re ti rement
In come
Tar get
Date
2045
Tar get
Date
2050
Tar get
Date
2015
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
-3
-2
-1
0
1
2
3
4
5
Mar-2007Sep-2007Mar-2008Sep-2008Mar-2009Sep-2009Mar-2010Sep-2010Mar-2011Sep-2011Mar-2012Sep-2012Mar-2013Sep-2013Mar-2014Sep-2014Percent-3
-2
-1
0
1
2
3
4
5
6
7
1990199219941996199820002002200420062008201020122014PercentCPICore CPI
Real Wage Growth Relatively Flat Consumer Price Index Falls
Sources: Bureau of Labor Statistics; Federal Reserve Sources: Federal Reserve
Crude Oil’s Fall Continues to Shift Economic Policies
•U.S.inflation fell for a second consecutive quarter,leaving full-year 2014 inflation
at 0.7%.The fall in oil prices,combined with weakening foreign currencies,led to
the low reading.Wages fell in December,inflation contracted further and
consumers’purchasing power growth remained anemic.The rapid fall in energy
prices contributed to a short-term fall in overall prices,and likely will keep real
wage growth below 1%.The Federal Reserve prefers that real wages grow more
significantly before it considers raising interest rates.
•China’s economy expanded at a 7.3%rate during the quarter,and 7.4%for 2014.
While slower than its long-term average,the Chinese government expressed the
need for rapid growth to continue the country’s transformation from an agricultural
to an industrial nation.Russia’s central bank raised its key interest rate from
10.5%to 17%,as it looked to stem capital outflows from the country amidst
international opposition to the Ukraine invasion.Ongoing Saudi Arabian support
for lower crude oil prices added uncertainty to the economic outlook for many
economies.
•The U.S.economy was aided by lower oil imports,though weaker foreign
economies began to take a toll on exports.As one of the stronger world
economies,the U.S.remained a safe-haven for investors as money flowed out of
Europe and Asia and into U.S.securities.Lower mortgage rates led to a surge in
mortgage activity,while homebuilders saw a small uptick in demand.
-8
-7
-6
-5
-4
-3
-2
-1
0
1
Oct-2014Nov-2014Nov-2014Nov-2014Nov-2014Dec-2014Dec-2014Dec-2014Dec-2014PercentEuro
Yen
Franc
Pound
CA D
*Relat iv e t o the U.S. d ollar
World Currencies Weaken
Source: Bloomberg
50
-35.0
-30.0
-25.0
-20.0
-15.0
-10.0
-5.0
0.0
5.0
10.0
15.0
-3.9
13.7
1.5
-2.7 -4.9 -6.2 -8.4
4.9
-2.2
-15.2
-12.3
-30.0
4th Quarter and YTD 2014 Sector Returns
Capital Markets Rev iew
Equities
2014 World Equity Returns (USD)
Developed Markets Emerging Markets
-10.0%
2.5%
5.7%
12.6%
17.8%
8.0%
14.4%
15.9%
25.1%
9.2%
26.9%
-13.1%
-3.9%
-0.8%
5.2%
5.4%
7.0%
7.8%
8.4%
8.6%
8.9%
13.0%
-20.0%-10.0%0.0%10.0%20.0%30.0%
Energy
Telecom
Materials
Russell 30 00
Info Tech
Indust rials
Fi nancials
Cons.Stapl es
Health Care
Cons. Di sc.
Utilities 4Q 14
YTD
Historic Volatility Levels
U.S.Equity a Cut Above;Ap preciating USD Impact Felt Globally
•The Russell 3000 Index experienced strong gains during the fourth quarter,
driven by improved economic data and the Fed’s declaration that it would
remain “patient”before increasing short-term interest rates,given current low
inflation expectations.During the quarter,small-cap stocks outperformed their
large-cap counterparts,however,large-caps advanced more throughout the
year.The utility and consumer sectors were standout performers during the
quarter,while energy companies declined in value due to falling oil prices.
•Non-U.S.equities struggled as both developed and emerging markets declined
in USD terms during the quarter.Disappointing economic data abroad hurt
returns,however,significant depreciation of most non-U.S.currencies versus
the USD was the main driver of negative performance.Emerging markets were
negatively impacted most by depreciating currencies and also were hurt by
falling oil and commodity prices.
•Equity market volatility,as measured by the VIX Index,started to tick higher in
the fourth quarter after a period of historically low levels.The first signs of
heightened volatility occurred in October as the Fed completed its quantitative
easing program.Plunging oil prices and uncertain global economic prospects
further increased volatility throughout the quarter.
0
5
10
15
20
25
30
35
40
VIX Volatility Ind ex 10 Y ear Averag e
Source: CBOE
51
0
250
500
750
1000
1250
1500
1750
2000
Option-Adjusted Spread (OAS)Date
Barclays U.S. Credit
U.S. Credit 10-Year Average
Barclays U.S. HY
HY 10-Year Average
Source: Barclays
Source: Barclays
Duration-adjusted Excess Returns to Treasuries (bps) Trailing Ten-Year Credit Spreads
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 4Q14
Aggre ga te -710 746 171 -114 226 93 10 -30
Agency -110 288 77 -25 166 1 10 -59
MBS -232 495 225 -106 91 98 40 -1
ABS -2223 2496 169 52 246 24 53 8
CMBS -3274 2960 1501 47 841 97 108 23
Cre dit -1786 1990 192 -322 693 226 -18 -105
Hi gh Yie ld -3832 5955 974 -240 1394 923 -112 -232
Em erging -2842 3797 508 -537 1503 -32 -120 -401
0.0%
0.5%
1.0%
1.5%
2.0%
2.5%
3.0%
3.5%
4.0%
4.5%
0 5 10 15 20 25 30Yield to MaturityMaturity (Years)
12/31/2013 9/30/2014 12/31/2014
US Treasury Yield Curve
Source: U.S. Dept of The Treasury
Rates Defy Experts in 2014
•Despite Wall Street forecasts calling for higher interest rates in 2014,the 10-
year U.S.Treasury yield fell from 3.04%to 2.17%during the year.The yield
curve continued to flatten during the fourth quarter,driven by weak global
growth,safe-haven demand and low domestic inflation expectations.Short-
term rates rose slightly as investors prepared for a Fed Funds rate hike in
2015.While long rates rallied,U.S.yields remained attractive to investors
given the significant yield advantage versus other major developed markets
such as Germany,Spain,Japan,and the United Kingdom.
•Corporate credit spreads widened during the quarter.Record new issuance,
coupled with shrinking dealer balance sheets and reduced trading in the
secondary markets,contributed to increased volatility.Higher quality and
longer duration credits performed best,while the high yield segment suffered
due to a large proportion of energy-related companies.
•CMBS and ABS generated positive duration-adjusted excess returns to
Treasuries during the quarter.Commercial property prices generally improved,
resulting in strong collateral performance,while ABS benefitted from supportive
consumer credit quality.Despite the end of the Fed’s QE MBS purchases,a
significant issuance slowdown buoyed Agency MBS prices.
52
Capital Markets Review
Hedge Funds
HFRI Index Performance –Fourth Quarter and 2014 Calendar Year Performance by Hedge Fund Strategy
Source: HFR
6.0%
4.2%
3.4%
3.3%
1.7%
6.2%
1.4%
3.5%
2.1%
-1.0%
2.0%
1.8%
0.4%
0.9%
0.5%
0.0%
2.9%
-1.1%
1.6%
0.2%
-3.5%
-0.2%
-6%-4%-2%0%2%4%6%8%
BC Aggr egate Bond Index
MSCI All-Country World Index
Fund of Funds
Hedge Fu nd Compo si te
Merger Arbitrage
Gl obal Macro
Event Driven
Equi ty Market Neutral
Equi ty He dge
Dist ressed Securities
Convertibl e Arbitrag e
Q4
2014
2008 2009 2010 2011 2012 2013 2014
Mac ro Di stres sed Dis tres sed Multi-Strategy Relative Value Long/Short Macro
4.8%28.1%12.1%4.2%10.0%14.6%6.2%
Relative Value Relative Value Event Drive n Relat ive Value Distressed Distres sed Relative Value
-18.0%25.8%11.9%0.1%10.3%13.6%4.2%
Fund of Funds Event Driven Relative Value Dis tressed Multi-Strategy Event Driven Multi-Strat egy
-21.4%25.0%11.4%-1.8%9.2%12.5%3.8%
Event Driven Long/Short Long/Short Event Driven Event Driven Multi-Strat egy Fund of Funds
-21.8%24.6%10.5%-3.3%8.5%11.2%3.4%
Multi-Strat egy Multi-Strat egy Multi-Strategy Macro Long/Short Fund of Funds Long/Short
-23.6%24.6%9.3%-4.2%7.4%9.0%2.1%
Distres sed Fund of Funds Macro Fund of Funds Fund of Funds Relative Value Event Driven
-25.2%11.5%8.1%-5.7%5.3%7.2%1.4%
Long/Short Macro Fund of Funds Long/Short Macro Mac ro Di stres sed
-26.7%4.3%5.7%-8.4%-0.2%-0.3%-1.0%
Source: HFR Inc.
Global Macro Shines in Fourth Quarter
•Overall hedge fund performance was muted during the fourth quarter,with the HFRI
Hedge Fund Composite Index returning 0.5%.For the year,the Index returned
3.3%,underperforming global equities and fixed income.
•After three years of underperformance,global macro advanced 2.9%for the quarter
and 6.2%for the year,making it the top-performing hedge fund strategy for the
year.In November,Commodity Trading Advisors (CTA)experienced their best
monthly return since 2002,fueled by strong trending behavior in oil and energy
commodities.Additionally,managers with long U.S.dollar exposure benefited from
the dollar’s continued appreciation relative to other major currencies.Global macro
managers in aggregate outpaced both global equities and fixed income in 2014.In
contrast,distressed (-3.5%)and event driven (-1.1%)strategies declined during the
quarter.Distressed managers were negatively impacted by underperformance of
lower quality bonds,long energy positions amid falling oil prices.Event driven
managers,which place directional and arbitrage trades on mergers,acquisitions
and other corporate shake-ups,were hurt by the unraveling of a number of large
deals.
•The hedge-fund industry saw inflows of $3.6 billion during the fourth quarter
according to Hedge Fund Research.According to eVestment’s 2015 Hedge Fund
Outlook Report,the hedge fund industry is positioned for estimated growth of $90 to
$110 billion,with distressed managers likely to see the most asset growth.
Hedge Fund Assets and Flows
-$500,000
$0
$500,000
$1,000,000
$1,500,000
$2,000,000
$2,500,000
$3,000,000
Assets ($MM)Net Asset Flow Estimated Assets
53
-12.1%
-17.0%
-9.4%
-5.5%
-1.9%
-2 0%
-1 8%
-1 6%
-1 4%
-1 2%
-1 0%
-8 %
-6 %
-4 %
-2 %
0%
4Q 14 1 Yea r 3 Y ea rs 5 Y ea rs 10 Ye ar s
Capital Markets Review
Real Assets
Real Estate Returns as of September 30, 2014
Source: Bloomberg
Commodity Index Returns for Periods Ended December 31, 2014
Source: NCREIF
NCREIF 3 M on.YT D 1 Yr.3 Yrs.5 Yrs.10 Yrs.
NCREIF 2.6%8.5%11.3%11.1%11.0%8.5%
Ap artm ents 2.5%7.3%10.0%10.9%12.1%8.3%
In dus trials 2.9%9.2%12.4%11.7%10.6%8.3%
Offic e 2.8%8.2%10.7%10.1%10.0%8.2%
Retail 2.3%10.2%13.1%12.8%12.0%9.7%
Ho tel 2.9%6.5%8.9%8.2%7.8%6.9%
Eas t 2.2%6.7%9.2%9.4%10.3%8.3%
Mi dw es t 2.6%8.2%10.4%10.6%9.8%7.2%
South 2.8%9.7%12.8%12.2%11.3%8.7%
West 3.0%9.7%12.7%12.2%11.8%9.2%
No Stopping the Decline in Cap Rates
REITs Dominate, Commodities Hit the Skids
•The global search for yield continued to provide a tailwind for publicly traded real
estate during the fourth quarter as U.S.and global REITs advanced 12.4%and 6.9%,
respectively.U.S.REITs experienced a stellar year with an annual return of 27.2%,
which was well ahead of all other broad market asset classes.In general,low levels
of new supply,strengthening tenant demand,and an earnings season that handily
exceeded expectations contributed to REITs’strong performance during the quarter.
•Private real estate returned 2.6%during the third quarter,slightly down from the
second quarter.Through the first three quarters of the year,the Index produced an
8.5%return driven by capitalization rate compression in conjunction with net
operating income growth.The South and West regions experienced higher than
average returns as these areas benefited from the energy and technology markets.
Given the collapse of oil prices,growth rates could start to decline for these markets.
•Heavy exposure (23%)to the energy sector led the Bloomberg Commodity Index to
post abysmal fourth quarter and full year returns.The energy sector lost 36.6%and
39.3%for the quarter and year,respectively,due to an accommodative production
stance from the Middle East.Metals also witnessed an upswing in volatility.Both the
industrial (-6.2%)and precious metals (-3.9%)sectors lost ground due to the
persistence of a strong U.S.dollar and slower demand.Agriculture and grains were
the only sectors to experience positive performance during the quarter supported by
cuts to corn production and yield estimates.Source: CBRE Global Investors, Real Capital Analytics
54
0
50
100
150
200
250
300
350
400
450
0
200
400
600
800
1000
1200
1400
1600
1800
Agg. Exit Value ($,Billions)# of Exits# o f Ex its Ag gregate Ex it Val ue
Global Buyout-Backed Exit ActivityInvestment Horizon Pooled IRR as of 06/30/14
Fund Type 3 Months 1 Year 3 Years 5 Years 10 Years 20 Years
Early Stage VC 3.3%31.6%14.3%15.4%9.5%48.1%
Late/Expansion Stage VC -1.3%24.7%12.0%17.7%12.1%11.0%
Multi-Stage VC 4.2%28.0%13.0%13.2%10.5%12.6%
All Venture Capital 3.2%29.7%13.6%14.8%10.1%27.6%
Small Buyouts 3.2%17.5%10.6%16.5%19.8%14.7%
Medium Buyouts 3.8%16.6%10.1%13.9%17.2%15.9%
Large Buyouts 5.1%22.5%11.8%16.9%15.4%16.2%
Mega Buyouts 5.4%24.8%13.8%18.5%12.7%N/A
All Buyouts 5.0%22.7%12.6%17.3%14.4%13.6%
Mezzanine/Sub Debt 2.7%12.3%11.8%11.7%10.7%10.1%
Distressed 3.3%16.8%11.9%16.9%11.7%11.9%
All Private Equity 4.8%22.7%12.4%16.4%13.4%14.9%
S&P 500 5.2%24.8%16.3%18.6%8.9%9.0%
Capital Markets Rev iew
Pr ivate Equity
# o f Ex its Ag gregate Ex it Val ue
$0
$100
$200
$300
$400
$500
$600
$,BillionsVC Buy out Real As sets Sec ondary Funds Di stressed/SS
2014 Sees Another Record High for Private Equity Exit Activity
•Private equity market performance data through September 30,2014 was not
yet available at the time of report production.During 2Q14,venture capital and
small-and mid-cap buyouts lagged the S&P 500.However,large-and mega-
cap buyout funds performed in line with their public equity market counterparts,
which is not surprising given that valuations for larger buyout funds are more
closely linked to public market comparables.
•After a big uptick in 2013,the positive momentum for private equity fundraising
continued in 2014 amid robust private equity distribution activity and favorable
public equity market returns.In total,private equity funds raised just over $400
billion in 2014,a 7%increase from the prior year and the highest total on
record outside the peak buyout boom years of 2007-2008.
•During 2014,private equity funds continued to exit investments at a record
pace,taking advantage of the favorable public market environment to unload
investments made during the buyout boom.Buyout-backed exit activity reached
record levels for a second straight year.According to Preqin,buyout funds
completed 1,604 exits with an aggregate exit value of $428 billion globally in
2014,an increase of nearly 30%in aggregate exit value from the prior year.
Source: ThomsonOne/Cambridge Associates database, January 2015.
Note: Data is continuously updated and is therefore subject to change.
S&P 500 5.2%24.8%16.3%18.6%8.9%9.0%
Source: Thomson Reuters, ThomsonOne database, January 2015.
Source: Preqin, January 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 5.3 12.7 12.7 22.5 20.3 15.5 7.5 8.0
S&P 500 4.9 13.7 13.7 22.7 20.4 15.5 7.3 7.7
Russell 1000 Index 4.9 13.2 13.2 22.8 20.6 15.6 7.5 8.0
Russell 1000 Growth Index 4.8 13.1 13.1 22.8 20.3 15.8 8.4 8.5
Russell 1000 Value Index 5.0 13.5 13.5 22.6 20.9 15.4 6.4 7.3
Russell Midcap Index 5.9 13.2 13.2 23.5 21.4 17.2 8.9 9.6
Russell Midcap Growth Index 5.8 11.9 11.9 23.2 20.7 16.9 8.6 9.4
Russell Midcap Value Index 6.1 14.7 14.7 23.8 22.0 17.4 9.1 9.4
Russell 2000 Index 9.7 4.9 4.9 20.7 19.2 15.5 8.2 7.8
Russell 2000 Growth Index 10.1 5.6 5.6 23.0 20.1 16.8 8.7 8.5
Russell 2000 Value Index 9.4 4.2 4.2 18.4 18.3 14.3 7.6 6.9
International Equity Indices
MSCI EAFE -3.6 -4.9 -4.9 8.1 11.1 5.3 -0.5 4.4
MSCI EAFE Growth Index -2.3 -4.4 -4.4 8.2 11.0 6.2 0.0 4.9
MSCI EAFE Value Index -4.9 -5.4 -5.4 7.9 11.0 4.4 -1.0 3.9
MSCI EAFE Small Cap -2.3 -4.9 -4.9 10.9 13.8 8.6 2.4 6.0
MSCI AC World Index 0.4 4.2 4.2 13.1 14.1 9.2 2.7 6.1
MSCI AC World ex US -3.9 -3.9 -3.9 5.3 9.0 4.4 -0.6 5.1
MSCI Emerging Markets Index -4.5 -2.2 -2.2 -2.4 4.0 1.8 -1.3 8.4
Fixed Income Indices
Barclays U.S. Aggregate 1.8 6.0 6.0 1.9 2.7 4.4 4.8 4.7
Barcap Intermediate U.S. Government/Credit 0.9 3.1 3.1 1.1 2.0 3.5 4.0 4.1
Barclays U.S. Long Government/Credit 5.6 19.3 19.3 4.3 5.8 9.8 8.5 7.4
Barclays US Corp: High Yield -1.0 2.5 2.5 4.9 8.4 9.0 8.8 7.7
BofA Merrill Lynch 3 Month U.S. T-Bill 0.0 0.0 0.0 0.1 0.1 0.1 0.4 1.5
Barclays U.S. Treasury: U.S. TIPS 0.0 3.6 3.6 -2.7 0.4 4.1 4.2 4.4
Citigroup Non-U.S. World Government Bond -2.9 -2.7 -2.7 -3.6 -1.9 0.8 2.6 2.6
JPM EMBI Global Diversified (external currency)-0.6 7.4 7.4 0.9 6.1 7.6 7.4 7.8
JPM GBI-EM Global Diversified (local currency)-5.7 -5.7 -5.7 -7.4 0.1 2.6 4.0 6.7
Real Asset Indices
Dow Jones - UBS Commodity -12.1 -17.0 -17.0 -13.3 -9.4 -5.5 -7.6 -1.9
Dow Jones Wilshire REIT 15.1 31.8 31.8 15.9 16.4 17.3 8.2 8.3
Capital Markets Review
Index Returns
As of December 31, 2014
(Percentage Return)
_________________________
Returns for periods greater than one year are annualized.
56