HomeMy Public PortalAbout2014 2nd Quarter ReportPerformance
Review
Metropolitan St. Louis Sewer
District Deferred Compensation
Plan
2nd 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 11
4 Manager Evaluation 14
5 Capital Markets Review 48
Table Of Contents
Executive Summary
1
Performance Summary - June 2014
Second quarter fund returns were robust overall, due to relatively strong performance from the equity markets and a continued bounce-back from the global fixed
income market.
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 subadvisors,
Delaware, Wellington, and William Blair, while adding Vanguard Growth Equity Fund's subadvisors, Bailie Gifford and Jennison, effectively increasing the
number of advisors from 3 to 5. Pavilion will continue to monitor the manager for further developments. There were no major changes to the other investment
options.
The three active managers available in the investment menu underperformed their benchmarks during the second quarter. Vanguard U.S. Growth, Vanguard
Windsor II, and Vanguard International Growth trailed their style benchmarks by 10, 50, and 190 basis points, respectively, during the first quarter. Poor stock
selection was the predominant detractor for the quarter among all three funds. Vanguard U.S. Growth Fund lagged its benchmark index primarily because of weak
stock selection in technology and financials, Vanguard Windsor II suffered from poor stock selection in the consumer discretionary sector, and stock selection
detracted from the Vanguard International Growth fund’s performance in seven of the ten sectors. The large-cap value and mid-cap segments were the best
absolute performers for the quarter. Target retirement date funds modestly trailed their respective benchmarks over longer-termed periods.
Consultant News
In June, Pavilion Financial Corporation, the parent of Pavilion Advisory Group, acquired two consulting firms. Plan Sponsor Advisors (PSA), founded in 2002,
provides consulting services predominantly to defined contributions plans. PSA employees are now located in Pavilion Advisory Group’s Chicago office. LP
Capital Advisors (LPCA) was founded in 2004 and is based in Sacramento, California. The firm provides consulting services to institutions investing in various
alternative asset classes with expertise in private equity. The acquisitions of PSA and LPCA are consistent with Pavilion’s strategy of building an employee
owned firm that can invest in and offer a deep expertise in a broad range of advisory services and solutions.
Deferred Compensation Plan Executive Summary
2
Deferred Compensation Plan Executive Summary
Capital Markets Review
Markets awaited an economic rebound, following the U.S. first quarter’s 2.9% GDP contraction. Holding growth expectations lower were rising prices across
broad segments of the economy, especially housing and energy. Eurozone inflation moved in the opposite direction, prompting the European Central Bank (ECB)
to move interest rates to -0.1%.
Federal Reserve interest rate policy changes became difficult to downplay as the unemployment rate fell more rapidly than forecast. Already below the previous
Fed target, Janet Yellen worked to calm fears over imminent interest rate changes, explaining that a better understanding of the rapid drop in unemployment is
needed to ascertain whether labor pool changes or economic improvements are responsible.
Q2 GDP is expected to be mixed globally. Japan raised its consumption tax by 3% in April, which was preceded by a Q1 surge in consumer spending. Japan’s Q2
GDP is expected to reflect a drop in consumer activity. China’s growth is expected to remain steady as the government continues to deal with an economy skewed
toward real estate development. Canada’s economy is benefiting from high energy prices, while facing headwinds from rising housing costs. Eurozone GDP will
reflect moderating German growth as the ECB reported lower growth expectations amidst lower exports. Dependency on Russia for natural gas and oil hurt the
outlook for Europe, and left European nations timid on expanded sanctions following Russia’s attempted annexation of Crimea.
Recommendations or Action Items
No recommendations at this time. Pavilion will prepare an investment structure review to be presented at the November 2014 Finance Committee Meeting.
3
Performance Summary
4
Quarter
Year
To
Date
1
Year
3
Years
5
Years
10
Years
Domestic Equity Options
Vanguard 500 Index (VFINX)5.2 (23)7.0 (30)24.4 (48)16.4 (24)18.7 (31)7.7 (50)
S&P 500 5.2 (22)7.1 (28)24.6 (46)16.6 (21)18.8 (28)7.8 (46)
Large-Cap Equity Peer Group Median 4.4 6.0 24.1 14.8 17.7 7.6
Vanguard US Growth (VWUSX)5.0 (27)5.6 (34)29.1 (28)16.3 (24)18.2 (49)7.4 (65)
Russell 1000 Growth Index 5.1 (22)6.3 (23)26.9 (45)16.3 (24)19.2 (31)8.2 (45)
Large-Cap Growth Equity Peer Group Median 4.2 4.5 26.3 14.6 18.1 8.0
Vanguard Windsor II (VWNFX)4.6 (47)7.6 (28)22.5 (57)16.4 (29)18.2 (37)7.9 (39)
Russell 1000 Value Index 5.1 (29)8.3 (15)23.8 (43)16.9 (18)19.2 (19)8.0 (36)
Large-Cap Value Equity Peer Group Median 4.5 6.6 23.0 15.2 17.6 7.6
Vanguard Mid-Cap Index (VIMSX)4.5 (25)7.8 (22)26.0 (29)15.2 (28)21.8 (16)10.2 (27)
Vanguard Mid-Cap Index Fund Blended Benchmark 4.5 (25)8.0 (21)26.3 (28)15.5 (25)22.1 (12)10.4 (22)
Mid-Cap Equity Peer Group Median 3.1 4.9 23.6 13.4 19.5 9.2
Vanguard Small-Cap Index (NAESX)3.7 (13)6.4 (10)26.3 (21)16.0 (23)22.2 (18)10.1 (14)
Vanguard Small-Cap Index Fund Blended Benchmark 3.8 (13)6.5 (9)26.5 (19)16.2 (21)22.3 (16)10.1 (13)
Small-Cap Equity Peer Group Median 1.7 2.7 23.1 14.2 20.1 8.6
International Equity Option
Vanguard International Growth (VWIGX)3.1 (70)2.3 (81)24.8 (26)7.5 (44)13.4 (26)8.5 (25)
MSCI AC World ex USA (Net)5.0 (18)5.6 (30)21.8 (47)5.7 (76)11.1 (68)7.7 (40)
International Equity Peer Group Median 3.7 4.2 21.5 7.2 11.8 7.2
Fixed Income Options
Vanguard Total Bond Market Index (VBMFX)1.9 (81)3.9 (74)4.2 (83)3.5 (84)4.6 (88)4.8 (66)
Vanguard Total Bond Market Index Fund Benchmark 2.0 (78)3.9 (74)4.3 (74)3.7 (74)4.9 (82)5.0 (58)
Market Duration Fixed Income Peer Group Median 2.2 4.2 5.1 4.4 6.2 5.2
Vanguard Retirement Savings Trust 0.5 0.9 1.7 2.1 2.5 3.3
Ryan 3 Yr GIC Master 0.3 0.5 1.0 1.4 2.2 3.1
Performance Summary
Investment Options
As of June 30, 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 June 30, 2014
Quarter
Year
To
Date
1
Year
3
Years
5
Years
10
Years
Equity/Fixed Income Blend Options
Vanguard Balanced Index (VBINX)3.7 (15)5.7 (18)16.2 (40)11.3 (14)13.5 (27)7.2 (22)
Vanguard Balanced Index Fund Benchmark 3.7 (14)5.8 (16)16.6 (36)11.5 (12)13.7 (22)7.4 (19)
60% Equity / 40% Fixed Peer Group Median 2.9 4.5 15.8 9.8 12.8 6.5
Vanguard Target Retirement Income (VTINX)2.7 (49)4.4 (51)9.7 (63)6.6 (47)8.6 (60)5.8 (30)
Vanguard Target Income Composite Index 2.8 (42)4.5 (46)10.0 (60)6.7 (43)8.7 (56)5.8 (29)
IM Mixed-Asset Target Alloc Consv (MF) Median 2.7 4.4 10.5 6.5 9.0 5.2
Vanguard Target Retirement 2010 (VTENX)3.0 (55)4.7 (41)11.8 (62)7.6 (29)10.5 (44)N/A
Vanguard Target 2010 Composite Index 3.1 (43)4.8 (35)12.0 (59)7.7 (25)10.6 (40)N/A
IM Mixed-Asset Target 2010 (MF) Median 3.0 4.5 12.3 6.9 10.3 5.1
Vanguard Target Retirement 2015 (VTXVX)3.5 (24)5.3 (23)14.5 (19)8.8 (10)11.9 (27)6.5 (9)
Vanguard Target 2015 Composite Index 3.5 (17)5.4 (18)14.8 (16)9.0 (8)11.9 (25)6.5 (9)
IM Mixed-Asset Target 2015 (MF) Median 3.2 4.7 12.9 7.4 10.8 4.9
Vanguard Target Retirement 2020 (VTWNX)3.7 (16)5.6 (9)16.4 (15)9.7 (7)12.9 (21)N/A
Vanguard Target 2020 Composite Index 3.8 (13)5.8 (7)16.8 (12)10.0 (5)13.1 (14)N/A
IM Mixed-Asset Target 2020 (MF) Median 3.3 4.9 13.8 8.0 11.6 5.6
Vanguard Target Retirement 2025 (VTTVX)4.0 (19)5.8 (12)18.0 (25)10.4 (12)13.8 (33)6.8 (N/A)
Vanguard Target 2025 Composite Index 4.1 (14)6.0 (11)18.3 (22)10.7 (8)14.0 (21)6.9 (N/A)
IM Mixed-Asset Target 2025 (MF) Median 3.7 5.2 16.5 9.0 13.2 N/A
Vanguard Target Retirement 2030 (VTHRX)4.2 (21)6.0 (12)19.5 (21)11.1 (11)14.6 (20)N/A
Vanguard Target 2030 Composite Index 4.3 (18)6.2 (10)19.8 (18)11.4 (8)14.9 (14)N/A
IM Mixed-Asset Target 2030 (MF) Median 3.8 5.3 17.8 9.5 13.6 6.1
Vanguard Target Retirement 2035 (VTTHX)4.5 (17)6.2 (8)21.1 (17)11.7 (14)15.4 (17)7.3 (N/A)
Vanguard Target 2035 Composite Index 4.5 (17)6.4 (4)21.4 (14)12.1 (7)15.7 (9)7.4 (N/A)
IM Mixed-Asset Target 2035 (MF) Median 4.1 5.5 19.5 10.4 14.5 N/A
Vanguard Target Retirement 2040 (VFORX)4.6 (12)6.4 (11)22.2 (11)12.3 (10)15.8 (13)N/A
Vanguard Target 2040 Composite Index 4.7 (12)6.5 (8)22.5 (9)12.6 (5)16.1 (8)N/A
IM Mixed-Asset Target 2040 (MF) Median 4.1 5.6 19.9 10.5 14.6 6.3
_________________________
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, 2014
Quarter
Year
To
Date
1
Year
3
Years
5
Years
10
Years
Equity/Fixed Income Blend Options (cont.)
Vanguard Target Retirement 2045 (VTIVX)4.6 (20)6.4 (9)22.1 (12)12.3 (12)15.8 (14)7.6 (N/A)
Vanguard Target 2045 Composite Index 4.7 (11)6.5 (6)22.5 (10)12.6 (7)16.1 (6)7.8 (N/A)
IM Mixed-Asset Target 2045 (MF) Median 4.2 5.7 20.8 11.1 15.1 N/A
Vanguard Target Retirement 2050 (VFIFX)4.6 (19)6.3 (12)22.1 (16)12.3 (12)15.8 (14)N/A
Vanguard Target 2050 Composite Index 4.7 (15)6.5 (10)22.5 (11)12.6 (7)16.1 (5)N/A
IM Mixed-Asset Target 2050 (MF) Median 4.2 5.7 20.8 11.0 15.0 N/A
Vanguard Target Retirement 2055 (VFFVX)4.6 (16)6.4 (11)22.2 (21)12.4 (15)N/A N/A
Vanguard Target 2055 Composite Index 4.7 (10)6.5 (8)22.5 (14)12.6 (8)N/A N/A
IM Mixed-Asset Target 2055+ Funds (MF) Median 4.2 5.7 21.3 11.2 14.9 N/A
Vanguard Target Retirement 2060 (VTTSX)4.6 (12)6.4 (10)22.2 (18)N/A N/A N/A
Vanguard Target 2060 Composite Index 4.7 (10)6.5 (8)22.5 (14)N/A N/A N/A
IM Mixed-Asset Target 2055+ Funds (MF) Median 4.2 5.7 21.3 11.2 14.9 N/A
Money Market Option
Vanguard Prime Money Market (VMMXX)0.0 0.0 0.0 0.0 0.1 1.7
BofA Merrill Lynch 3 Month U.S. T-Bill 0.0 0.0 0.1 0.1 0.1 1.6
_________________________
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, 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 ü Ye s ü ü ü ü ü ü
No ma teria l o rg aniza tional changes ü ü ü ü ü ü ü ü
Accounting or regulatory concerns ü ü ü ü ü ü ü ü
Cu rrently in adherence to guidelin es ü ü ü ü ü ü ü ü
Po rt fo lio characteris tics me et stylis tic expectations ü ü ü ü ü ü ü ü
Re lati ve Perfor mance 1
Three-year return better than benchmark N/A ü No (-7 0 bps )N/A N/A ü N/A N/A
Three-year rankin g better than peer group median ü ü ü ü ü ü No (8 4)N/A
Fiv e year re turn better than benchmark N/A No (-1 00 bps )No (-1 00 bps )N/A N/A ü N/A N/A
Fiv e year ra nkin g better than peer group median ü ü ü ü ü ü No (8 8)N/AFive year ra nkin g better than peer group median ü ü ü ü ü ü No (8 8)N/A
Perfor manc e s tatus Gr een Gr een Gr een Gr een Gr een Gr een Gr een Gr een
Summar y s tatus Gr een Ye llow Gr een Gr een Gr een Gr een Gr een Gr een
1 Manager performance is evaluated net of investment management fees.
8
Pe rformance Summary
Manager Compliance Checklist (Continued)
As of June 30, 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 ü ü ü ü ü ü ü ü
No ma terial o rganiza tional changes ü ü ü ü ü ü ü ü
Accounting or regulatory concerns ü ü ü ü ü ü ü ü
Cu rrently in adherence to guidelin es ü ü ü ü ü ü ü ü
Po rt fo lio characteris tics me et stylis tic expectations ü ü ü ü ü ü ü ü
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 ü ü ü ü ü ü ü ü
Five 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 ü No (6 0)ü ü ü ü ü üFive year rankin g better than peer group median ü No (6 0)ü ü ü ü ü ü
Performance status Gr een Gr een Gr een Gr een Gr een Gr een Gr een Gr een
Summar y s tatus Gr een Gr een Gr een Gr een Gr een Gr een Gr een Gr een
1 Manager performance is evaluated net of investment management fees.
9
Pe rformance Summary
Manager Compliance Checklist (Continued)
As of June 30, 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 ü ü ü ü ü ü
No ma teria l o rg aniza tional changes ü ü ü ü ü ü
Accounting or regulatory concerns ü ü ü ü ü ü
Cu rre ntly in adherence to guidelin es ü ü ü ü ü ü
Po rt fo lio characteris tics me et stylis tic expectations ü ü ü ü ü ü
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 ü ü ü ü N/A N/A
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 ü ü ü N/A N/A N/A
1 Manager performance is evaluated net of investment management fees.
Fiv e year rankin g better than peer group median ü ü ü N/A N/A N/A
Performance status Gr een Gr een Gr een Gr een Gr een Gr een
Summary status Gr een Gr een Gr een Gr een Gr een Gr een
10
Plan Assets
11
Plan Summary
Deferred Compensation Plan Assets
As of June 30, 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 $ 6,129,638 12.9%$ 287,485 + 4.9%
Vanguard Windsor II Inv US Large Cap Equit y -Value $ 8,949,816 18.9%$ 298,317 + 3.4%
Vanguard US Growth Inv US Large Cap Equit y -Growth $ 3,911,723 8.2%$ 167,344 + 4.5%
Vanguard M id Cap Index I nv US Mid Cap Equity -Core $ 2,671,261 5.6%$ 193,774 + 7.8%
Vanguard Small Cap Index Inv US Small Cap Equit y -Core $ 2,502,541 5.3%$ (186,516)- 6.9%
$ 24,164,979 50.9%$ 760,404 + 3.2%
International Equ ity Funds
Vanguard Internat ional Growth Internat ional Equity $ 2,517,863 5.3%$ 99,751 + 4.1%
$ 2,517,863 5.3%$ 99,751 + 4.1%
Fi xed I ncome/Alternative Fu nds
Vanguard T otal Bond M arket Index Inv Market Duration $ 2,290,204 4.8%$ (186,920)- 7.5%
Vanguard Retirement Savings Trust Short Duration $ 3,451,368 7.3%$ 110,111 + 3.3%
Vanguard Balanced Index Inv Balanced $ 3,949,038 8.3%$ 133,530 + 3.5%
$ 9,690,611 20.4%$ 56,721 + 0.6%
$ Change
From
Previous Qtr
% C hange
From
Pre vi ous Qtr
$ 9,690,611 20.4%$ 56,721 + 0.6%
Cash
Vanguard Prime M oney Market Cash $ 1,151,052 2.4%$ 18,844 + 1.7%
$ 1,151,052 2.4%$ 18,844 + 1.7%
Ta rge t Date Funds
Vanguard T arget Ret irement Income Inv Blend $ 302,854 0.6%$ 48,864 + 19.2%
Vanguard T arget Ret irement 2010 Inv Blend $ 663,261 1.4%$ 28,775 + 4.5%
Vanguard T arget Ret irement 2015 Inv Blend $ 1,089,837 2.3%$ (62,568)- 5.4%
Vanguard T arget Ret irement 2020 Inv Blend $ 1,732,907 3.7%$ 48,805 + 2.9%
Vanguard T arget Ret irement 2025 Inv Blend $ 2,122,816 4.5%$ 106,571 + 5.3%
Vanguard T arget Ret irement 2030 Inv Blend $ 891,228 1.9%$ 58,496 + 7.0%
Vanguard T arget Ret irement 2035 Inv Blend $ 829,837 1.7%$ 60,539 + 7.9%
Vanguard T arget Ret irement 2040 Inv Blend $ 488,810 1.0%$ 39,191 + 8.7%
Vanguard T arget Ret irement 2045 Inv Blend $ 458,126 1.0%$ 39,653 + 9.5%
Vanguard T arget Ret irement 2050 Inv Blend $ 130,487 0.3%$ 16,861 + 14.8%
Vanguard T arget Ret irement 2055 Inv Blend $ 9,507 0.0%$ 221 + 2.4%
Vanguard T arget Ret irement 2060 Inv Blend $ 15,892 0.0%$ 1,130 + 7.7%
8,735,561$ 18.4%386,537$ + 4.6%
Loan Fund
Loan Fund Loan Fund $ 1,202,806 2.5%$ (82,825)- 6.4%
TO TA L $ 47,462,871 100.0%$ 1,239,433 + 2.7%
12
Plan Summary
Fee Comparison Summary
As of June 30, 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 1.10 0.96 0.17 La rg e Blend La rg e Cap No Lo ad US Pa ssive La rg e Cap Equity
Va nguard US Gro wt h 0.45 1.23 0.96 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 0.84 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 1.11 0.27 Mid Ble nd Mid Cap No Lo ad US Passive Mid Cap Equity
Va nguard Sma ll-Ca p Index 0.24 1.16 1.20 0.24 Small Ble nd Small Ca p No Load US Pa ssive Small Ca p Equity
Va nguard International Gr owth 0.48 1.37 1.11 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 0.84 0.65 0.52 Interme diate-Term Bond Interme diate-Term Bond No Load US Co re Fixe d Income
Va nguard Retire me nt Saving Trust 0.52 N/A N/A 0.70 N/A N/A US St able Value Fixed Income
Va nguard Balanced Index 0.24 0.87 0.92 0.73 Moderate Allo cation Moderate Allo cation No Load US Ba la nced
Va nguard Target Retirement Income 0.16 0.68 0.65 0.46 Re tire me nt Income Retire me nt Income No Load Li fecycle/Target Date Income
Va nguard Target Retirement 2010 0.16 0.48 0.64 0.55 Target Date 2000-2010 Target Retireme nt 2000-2010 No Lo ad Life cycle/Target Date 2010Vanguard Target Retirement 2010 0.16 0.48 0.64 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 0.53 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 0.59 0.82 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 0.53 0.88 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 0.59 0.82 0.65 Target Date 2026-2030 Target Retireme nt 2026-2030 No Lo ad Life cycle/Target Date 2030
Va nguard Target Retirement 2035 0.18 0.54 0.91 0.70 Target Date 2031-2035 Target Retireme nt 3031-2035 No Lo ad Life cycle/Target Date 2035
Va nguard Target Retirement 2040 0.18 0.60 0.86 0.69 Target Date 2036-2040 Target Retireme nt 2036-2040 No Lo ad Life cycle/Target Date 2040
Va nguard Target Retirement 2045 0.18 0.55 0.96 0.72 Target Date 2041-2045 Target Retireme nt 2041-2045 No Lo ad Life cycle/Target Date 2045
Va nguard Target Retirement 2050 0.18 0.57 0.84 0.68 Target Date 2046-2050 Target Retireme nt 2046-2050 No Lo ad Life cycle/Target Date 2050
Va nguard Target Retirement 2055 0.18 0.46 0.93 0.47 Target Date 2051+Target Retireme nt 2051+ No Lo ad Life cycle/Target Date 2055
Va nguard Target Retirement 2060 0.18 0.46 0.93 N/A Target Date 2051+Target Retireme nt 2051+ No Lo ad N/A
Va nguard Prime Money Marke t 0.16 0.13 N/A 0.20 Money Marke t Taxable N/A US Cash Management
13
Manager Evaluation
14
Historical Performance
Three Year Rolling Percentile Ranking Relative Performance
Historical Statistics (Jul-2009 - Jun-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)5.2 7.0 24.4 16.4 18.7 7.7 32.2 15.8 2.0 14.9 26.5 -37.0 5.4 15.6 4.8 10.7
S&P 500 5.2 7.1 24.6 16.6 18.8 7.8 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 4.4 6.0 24.1 14.8 17.7 7.6 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 23 30 48 24 31 50 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 (%)9/04 9/05 9/06 9/07 9/08 9/09 9/10 9/11 9/12 9/13 6/14
Vanguard 500 Index Fund (VFINX)S&P 500
0
25
50
75
100Return Percentile Rank9/04 9/05 9/06 9/07 9/08 9/09 9/10 9/11 9/12 9/13 6/14
Return
Standard
Deviation
Excess
Return Alpha Beta
Sharpe
Ratio
Tracking
Error
Information
Ratio
Downside
Risk Consistency
Inception
Date
Vanguard 500 Index Fund (VFINX)18.7 14.9 18.5 -0.1 1.0 1.2 0.0 -7.4 8.2 0.0 37y 10m
S&P 500 18.8 14.9 18.7 0.0 1.0 1.3 0.0 N/A 8.1 0.0 37y 10m
90 Day U.S. Treasury Bill 0.1 0.0 0.0 0.1 0.0 N/A 14.9 -1.3 0.0 20.0 37y 10m
Manager Evaluation
Vanguard 500 Index Fund (VFINX) vs. S&P 500
As of June 30, 2014
15
Top Ten Equity Holdings
Portfolio
Weight
(%)
Benchmark
Weight
(%)
Active
Weight
(%)
Quarterly
Return
(%)
Apple Inc 3.2 3.2 0.0 21.9
Exxon Mobil Corp 2.5 2.5 0.0 3.8
Microsoft Corp 1.8 1.8 0.0 2.4
Johnson & Johnson 1.7 1.7 0.0 7.2
General Electric Co 1.5 1.5 0.0 2.3
Wells Fargo & Co 1.4 1.5 0.0 6.4
Chevron Corp 1.4 1.4 0.0 10.7
JPMorgan Chase & Co 1.3 1.3 0.0 -4.5
Procter & Gamble Co (The)1.2 1.2 0.0 -1.7
Berkshire Hathaway Inc 1.2 1.3 -0.1 1.3
% of Portfolio 17.2 17.4
Portfolio Characteristics
Portfolio Benchmark
Wtd. Avg. Mkt. Cap ($M)123,800 124,388
Median Mkt. Cap ($M)17,614 17,517
Price/Earnings ratio 18.6 18.6
Price/Book ratio 2.9 2.9
5 Yr. EPS Growth Rate (%)12.0 11.9
Current Yield (%)2.0 2.0
Debt to Equity 0.9 0.9
Number of Stocks 505 501
Beta (5 Years, Monthly)1.00 1.00
Consistency (5 Years, Monthly)3.33 1.00
Sharpe Ratio (5 Years, Monthly)1.36 1.37
Information Ratio (5 Years, Monthly)-6.23 -
Up Market Capture (5 Years, Monthly)99.66 -
Down Market Capture (5 Years, Monthly)100.34 -
Sector Weights (%)
Vanguard 500 Index Fund (VFINX)S&P 500
0.0 5.0 10.0 15.0 20.0 25.0
Cash
Utilities
Telecommunication Services
Materials
Information Technology
Industrials
Health Care
Financials
Energy
Consumer Staples
Consumer Discretionary
0.4
3.1
2.4
3.5
18.7
10.5
13.3
16.0
10.8
9.5
11.8
0.0
3.2
2.4
3.5
18.8
10.5
13.3
16.1
10.9
9.5
11.8
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
47.7
35.1
16.7
0.5 0.0
47.5
34.9
16.7
0.5 0.4
Manager Evaluation
Vanguard 500 Index Fund (VFINX) vs. S&P 500
As of June 30, 2014
16
Historical Performance
Buy and Hold Attribution
Risk and Return (Jul - 2009 - Jun - 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)4.6 7.6 22.5 16.4 18.2 7.9 30.7 16.7 2.7 10.6 27.1 -36.7 2.2 18.2 7.0 18.3
Russell 1000 Value Index 5.1 8.3 23.8 16.9 19.2 8.0 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 4.5 6.6 23.0 15.2 17.6 7.6 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 47 28 57 29 37 39 62 29 17 86 42 45 56 36 38 7
16.0
17.0
18.0
19.0
20.0
21.0
Return (%)15.3 15.4 15.5 15.6 15.7 15.8 15.9
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 Rank9/04 9/05 9/06 9/07 9/08 9/09 9/10 9/11 9/12 9/13 6/14
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
0.2
0.8
-1.4
0.1
1.6
4.3
-7.4
-2.4
3.1
0.8
2.4
Allocation
(Total: -0.3)
0.0 0.2 0.4-0.2-0.4
-0.1
0.0
0.0
0.0
0.0
0.0
-0.1
0.2
-0.1
-0.1
0.0
-0.1
Stock
(Total: -0.2)
0.0 0.5 1.0-0.5-1.0
0.2
0.0
0.0
0.0
-0.4
-0.3
0.1
-0.1
0.0
0.5
-0.3
0.0
Vanguard Windsor II (VWNFX)
0.0 0.3 0.6 0.9-0.3-0.6-0.9
0.1
0.0
0.0
0.0
-0.4
-0.3
0.0
0.2
-0.1
0.4
-0.3
-0.1
Manager Evaluation
Vanguard Windsor II (VWNFX) vs. Russell 1000 Value Index
As of June 30, 2014
Differences between the manager return and the attribution return are due primarily to the effects of fees and portfolio trading.
17
Top Ten Equity Holdings
Portfolio
Weight
(%)
Benchmark
Weight
(%)
Active
Weight
(%)
Quarterly
Return
(%)
Microsoft Corp 2.7 1.2 1.5 2.4
Pfizer Inc 2.6 1.9 0.7 -6.8
JPMorgan Chase & Co 2.6 2.2 0.4 -4.5
Wells Fargo & Co 2.5 2.5 0.0 6.4
Medtronic Inc 2.3 0.6 1.7 4.1
Intel Corp 2.3 1.4 0.9 20.7
Johnson & Johnson 2.2 2.5 -0.3 7.2
American Express Co 2.2 0.0 2.2 5.6
Philip Morris International Inc 2.2 0.6 1.6 4.1
Citigroup Inc 2.0 1.4 0.6 -1.0
% of Portfolio 23.6 14.3
Portfolio Characteristics
Portfolio Benchmark
Wtd. Avg. Mkt. Cap ($M)105,850 110,638
Median Mkt. Cap ($M)22,312 7,193
Price/Earnings ratio 15.5 16.7
Price/Book ratio 2.3 2.0
5 Yr. EPS Growth Rate (%)12.0 7.9
Current Yield (%)2.6 2.3
Debt to Equity 1.2 0.9
Number of Stocks 258 685
Beta (5 Years, Monthly)0.97 1.00
Consistency (5 Years, Monthly)41.67 1.00
Sharpe Ratio (5 Years, Monthly)1.30 1.34
Information Ratio (5 Years, Monthly)-0.40 -
Up Market Capture (5 Years, Monthly)95.42 -
Down Market Capture (5 Years, Monthly)95.76 -
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
4.0
2.6
1.6
12.7
8.3
16.7
21.0
11.8
9.4
9.3
0.0
0.0
6.3
2.3
3.4
8.9
10.5
13.1
28.5
13.9
6.9
6.3
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
42.5
30.4
21.3
5.9
0.0
47.5
34.0
14.6
1.6 2.2
Manager Evaluation
Vanguard Windsor II (VWNFX) vs. Russell 1000 Value Index
As of June 30, 2014
18
Historical Performance
Buy and Hold Attribution
Risk and Return (Jul - 2009 - Jun - 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)5.0 5.6 29.1 16.3 18.2 7.4 35.5 18.4 -0.7 11.5 35.0 -37.8 10.1 1.8 11.2 7.0
Russell 1000 Growth Index 5.1 6.3 26.9 16.3 19.2 8.2 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 4.2 4.5 26.3 14.6 18.1 8.0 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 27 34 28 24 49 65 41 16 48 83 40 46 75 90 17 59
16.0
17.0
18.0
19.0
20.0
21.0
Return (%)13.8 14.4 15.0 15.6 16.2 16.8 17.4 18.0
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 Rank9/04 9/05 9/06 9/07 9/08 9/09 9/10 9/11 9/12 9/13 6/14
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
-2.1
0.0
-1.8
3.4
-5.4
-0.4
2.6
0.5
-4.1
4.9
2.6
Allocation
(Total: -0.2)
0.0 0.2-0.2-0.4
0.0
0.0
0.0
0.0
0.0
0.1
0.0
0.0
0.1
-0.1
-0.1
-0.1
Stock
(Total: 0.4)
0.0 0.9 1.8 2.7-0.9-1.8
0.0
0.0
0.0
0.0
-0.6
0.1
1.2
-0.4
-0.1
0.4
-0.1
0.0
Vanguard US Growth (VWUSX)
0.0 0.7 1.4 2.1-0.7-1.4
0.0
0.0
0.0
0.0
-0.6
0.1
1.2
-0.4
0.0
0.3
-0.3
-0.1
Manager Evaluation
Vanguard US Growth (VWUSX) vs. Russell 1000 Growth Index
As of June 30, 2014
Differences between the manager return and the attribution return are due primarily to the effects of fees and portfolio trading.
19
Top Ten Equity Holdings
Portfolio
Weight
(%)
Benchmark
Weight
(%)
Active
Weight
(%)
Quarterly
Return
(%)
MasterCard Inc 3.1 0.7 2.3 -1.5
Priceline.Com Inc 2.6 0.6 1.9 0.9
Celgene Corp 2.5 0.7 1.8 23.0
Google Inc 2.5 1.6 0.9 3.3
Visa Inc 2.4 1.0 1.4 -2.2
Adobe Systems Inc 2.3 0.4 1.9 10.1
Qualcomm Inc.2.2 1.3 0.9 1.0
EOG Resources Inc.2.2 0.6 1.6 19.3
Google Inc 2.2 1.6 0.6 4.8
Apple Inc 2.1 5.5 -3.4 21.9
% of Portfolio 24.1 14.1
Portfolio Characteristics
Portfolio Benchmark
Wtd. Avg. Mkt. Cap ($M)83,249 108,393
Median Mkt. Cap ($M)21,017 8,666
Price/Earnings ratio 26.3 22.0
Price/Book ratio 4.2 4.9
5 Yr. EPS Growth Rate (%)18.3 16.8
Current Yield (%)0.9 1.5
Debt to Equity 0.0 2.1
Number of Stocks 177 672
Beta (5 Years, Monthly)1.11 1.00
Consistency (5 Years, Monthly)50.00 1.00
Sharpe Ratio (5 Years, Monthly)1.16 1.36
Information Ratio (5 Years, Monthly)-0.22 -
Up Market Capture (5 Years, Monthly)104.99 -
Down Market Capture (5 Years, Monthly)119.02 -
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
3.2
31.1
6.3
14.3
8.6
5.5
7.1
21.1
0.0
0.0
0.1
2.3
4.3
27.7
12.3
12.8
5.2
6.4
10.5
18.4
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
40.8
32.2
22.9
4.0
0.0
30.8
39.1
24.9
2.8 2.4
Manager Evaluation
Vanguard US Growth (VWUSX) vs. Russell 1000 Growth Index
As of June 30, 2014
20
Historical Performance
Three Year Rolling Percentile Ranking Relative Performance
Historical Statistics (Jul-2009 - Jun-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)4.5 7.8 26.0 15.2 21.8 10.2 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 4.5 8.0 26.3 15.5 22.1 10.4 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 3.1 4.9 23.6 13.4 19.5 9.2 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 25 22 29 28 16 27 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 (%)9/04 9/05 9/06 9/07 9/08 9/09 9/10 9/11 9/12 9/13 6/14
Vanguard Mid-Cap Index Fund (VIMSX)
Vanguard Mid-Cap Index Fund Blended Benchmark
0
25
50
75
100Return Percentile Rank9/04 9/05 9/06 9/07 9/08 9/09 9/10 9/11 9/12 9/13 6/14
Return
Standard
Deviation
Excess
Return Alpha Beta
Sharpe
Ratio
Tracking
Error
Information
Ratio
Downside
Risk Consistency
Inception
Date
Vanguard Mid-Cap Index Fund (VIMSX)21.8 17.8 21.7 -0.2 1.0 1.2 0.1 -3.4 9.9 0.0 16y 1m
Vanguard Mid-Cap Index Fund Blended Benchmark 22.1 17.8 22.0 0.0 1.0 1.2 0.0 N/A 9.9 0.0 16y 1m
90 Day U.S. Treasury Bill 0.1 0.0 0.0 0.1 0.0 N/A 17.8 -1.2 0.0 20.0 16y 1m
Manager Evaluation
Vanguard Mid-Cap Index Fund (VIMSX) vs. Vanguard Mid-Cap Index Fund Blended Benchmark
As of June 30, 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.
21
Top Ten Equity Holdings
Portfolio
Weight
(%)
Benchmark
Weight
(%)
Active
Weight
(%)
Quarterly
Return
(%)
Vertex Pharmaceuticals Inc 0.7 0.7 0.0 33.9
Delphi Automotive PLC 0.7 0.7 0.0 1.7
Western Digital Corp 0.7 0.7 0.0 1.0
Mylan Inc 0.6 0.6 0.0 5.6
Health Care REIT Inc.0.6 0.6 0.0 6.5
Moody's Corp.0.6 0.6 0.0 10.9
Southwest Airlines Co.0.6 0.6 0.0 14.0
AvalonBay Communities Inc.0.6 0.6 0.0 9.2
Chipotle Mexican Grill Inc 0.6 0.6 0.0 4.3
Seagate Technology Plc 0.6 0.6 0.0 2.0
% of Portfolio 6.1 6.1
Portfolio Characteristics
Portfolio Benchmark
Wtd. Avg. Mkt. Cap ($M)11,251 11,280
Median Mkt. Cap ($M)8,752 8,846
Price/Earnings ratio 21.5 21.5
Price/Book ratio 3.0 3.0
5 Yr. EPS Growth Rate (%)16.2 16.2
Current Yield (%)1.4 1.4
Debt to Equity 5.0 5.0
Number of Stocks 381 372
Beta (5 Years, Monthly)1.03 1.00
Consistency (5 Years, Monthly)40.00 1.00
Sharpe Ratio (5 Years, Monthly)1.35 1.39
Information Ratio (5 Years, Monthly)0.05 -
Up Market Capture (5 Years, Monthly)101.43 -
Down Market Capture (5 Years, Monthly)103.43 -
Sector Weights (%)
Vanguard Mid-Cap Index Fund (VIMSX)
CRSP U.S. Mid Cap TR Index
0.0 4.0 8.0 12.0 16.0 20.0 24.0
Cash
Utilities
Telecommunication Services
Materials
Information Technology
Industrials
Health Care
Financials
Energy
Consumer Staples
Consumer Discretionary
0.3
5.5
1.0
6.4
14.3
13.8
10.0
16.8
7.9
5.8
18.0
0.0
5.5
1.0
6.5
14.4
13.9
10.0
16.9
7.9
5.9
18.1
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
4.7
92.9
2.4 0.04.7
92.6
2.3 0.3
Manager Evaluation
Vanguard Mid-Cap Index Fund (VIMSX) vs. CRSP U.S. Mid Cap TR Index
As of June 30, 2014
22
Historical Performance
Three Year Rolling Percentile Ranking Relative Performance
Historical Statistics (Jul-2009 - Jun-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)3.7 6.4 26.3 16.0 22.2 10.1 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 3.8 6.5 26.5 16.2 22.3 10.1 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 1.7 2.7 23.1 14.2 20.1 8.6 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 13 10 21 23 18 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 (%)9/04 9/05 9/06 9/07 9/08 9/09 9/10 9/11 9/12 9/13 6/14
Vanguard Small-Cap Index Fund (NAESX)
Vanguard Small-Cap Index Fund Blended Benchmark
0
25
50
75
100Return Percentile Rank9/04 9/05 9/06 9/07 9/08 9/09 9/10 9/11 9/12 9/13 6/14
Return
Standard
Deviation
Excess
Return Alpha Beta
Sharpe
Ratio
Tracking
Error
Information
Ratio
Downside
Risk Consistency
Inception
Date
Vanguard Small-Cap Index Fund (NAESX)22.2 18.9 22.3 -0.1 1.0 1.2 0.0 -3.1 10.7 10.0 46y 5m
Vanguard Small-Cap Index Fund Blended Benchmark 22.3 18.9 22.4 0.0 1.0 1.2 0.0 N/A 10.7 0.0 46y 5m
90 Day U.S. Treasury Bill 0.1 0.0 0.0 0.1 0.0 N/A 18.9 -1.2 0.0 20.0 46y 5m
Manager Evaluation
Vanguard Small-Cap Index Fund (NAESX) vs. Vanguard Small-Cap Index Fund Blended Benchmark
As of June 30, 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.
23
Top Ten Equity Holdings
Portfolio
Weight
(%)
Benchmark
Weight
(%)
Active
Weight
(%)
Quarterly
Return
(%)
Hillshire Brands Co 0.3 0.3 0.0 67.8
Salix Pharmaceuticals Ltd 0.3 0.3 0.0 19.1
Foot Locker Inc.0.3 0.3 0.0 8.5
Arthur J. Gallagher & Co.0.3 0.3 0.0 -1.3
Harman International Industries Inc.0.3 0.3 0.0 1.3
Alkermes Plc 0.3 0.3 0.0 14.2
Gannett Co Inc.0.3 0.3 0.0 14.2
Packaging Corp Of America 0.3 0.3 0.0 2.2
Rite Aid Corp.0.3 0.3 0.0 14.4
Snap-On Inc 0.2 0.2 0.0 4.8
% of Portfolio 2.6 2.6
Portfolio Characteristics
Portfolio Benchmark
Wtd. Avg. Mkt. Cap ($M)3,370 3,379
Median Mkt. Cap ($M)1,808 1,808
Price/Earnings ratio 22.2 22.2
Price/Book ratio 2.5 2.5
5 Yr. EPS Growth Rate (%)12.4 12.4
Current Yield (%)1.4 1.4
Debt to Equity 0.9 0.9
Number of Stocks 1,462 1,453
Beta (5 Years, Monthly)1.02 1.00
Consistency (5 Years, Monthly)33.33 1.00
Sharpe Ratio (5 Years, Monthly)1.23 1.30
Information Ratio (5 Years, Monthly)-0.71 -
Up Market Capture (5 Years, Monthly)99.87 -
Down Market Capture (5 Years, Monthly)104.29 -
Sector Weights (%)
Vanguard Small-Cap Index (NAESX)
CRSP U.S. Small Cap TR Index
0.0 5.0 10.0 15.0 20.0 25.0 30.0
Cash
Utilities
Telecommunication Services
Materials
Information Technology
Industrials
Health Care
Financials
Energy
Consumer Staples
Consumer Discretionary
0.0
3.8
0.6
6.2
16.7
16.0
10.8
22.9
5.8
3.1
14.0
0.0
3.8
0.6
6.2
16.7
16.0
10.8
23.1
5.8
3.1
14.0
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
18.6
81.4
0.0
18.4
81.6
0.0
Manager Evaluation
Vanguard Small-Cap Index (NAESX) vs. CRSP U.S. Small Cap TR Index
As of June 30, 2014
24
Historical Performance
Buy and Hold Attribution
Risk and Return (Jul - 2009 - Jun - 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)3.1 2.3 24.8 7.5 13.4 8.5 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)5.0 5.6 21.8 5.7 11.1 7.7 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 3.7 4.2 21.5 7.2 11.8 7.2 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 70 81 26 44 26 25 31 32 51 25 23 54 28 43 50 45
8.0
10.0
12.0
14.0
16.0
18.0
Return (%)16.2 16.8 17.4 18.0 18.6 19.2 19.8 20.4
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 Rank9/04 9/05 9/06 9/07 9/08 9/09 9/10 9/11 9/12 9/13 6/14
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
-1.5
8.1
4.0
-2.0
-3.0
-5.0
-3.7
5.2
2.5
Allocation
(Total: -0.6)
0.0 0.3 0.6-0.3-0.6
-0.1
0.0
0.0
0.1
-0.1
0.0
0.0
-0.3
0.0
-0.1
-0.1
Stock
(Total: -1.1)
0.0 0.4 0.8-0.4-0.8
0.0
-0.3
-0.3
-0.2
-0.1
0.3
-0.2
0.2
-0.1
-0.4
0.0
0.0 0.3 0.6-0.3-0.6-0.9
-0.1
-0.2
-0.3
-0.1
-0.1
0.3
-0.2
-0.1
-0.1
-0.5
-0.1
Manager Evaluation
Vanguard International Growth (VWIGX) vs. MSCI AC World ex USA (Net)
As of June 30, 2014
Differences between the manager return and the attribution return are due primarily to the effects of fees and portfolio trading.
25
Total Attribution
0.0 0.2 0.4 0.6 0.8-0.2-0.4-0.6-0.8-1.0-1.2
Pacific
Other
North America
Middle East
Frontier Markets
Europe ex EMU
EMU
EM Latin America
EM Europe + Middle East + Africa
EM Asia
Cash
-0.6
0.0
-0.2
-0.1
0.0
-0.1
-0.7
-0.1
0.0
0.3
-0.1
Performance Attribution
Average Active Weight
0.0 5.0 10.0 15.0-5.0-10.0-15.0
Pacific
Other
North America
Middle East
Frontier Markets
Europe ex EMU
EMU
EM Latin America
EM Europe + Middle East + Africa
EM Asia
Cash
-6.7
0.0
-3.6
0.8
0.4
5.5
1.4
0.0
-2.0
1.7
2.5
Allocation
(Total: -0.4)
0.0 0.1 0.2-0.1-0.2-0.3-0.4
0.0
0.0
-0.2
0.0
0.0
0.0
0.0
0.0
0.0
0.0
-0.1
Stock
(Total: -1.2)
0.0 0.4 0.8-0.4-0.8-1.2
-0.6
0.0
-0.1
0.0
0.0
-0.1
-0.7
-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, 2014
26
Top Ten Equity Holdings
Portfolio
Weight
(%)
Benchmark
Weight
(%)
Active
Weight
(%)
Quarterly
Return
(%)
Baidu Inc 3.1 0.0 3.1 22.7
Tencent Holdings LTD 2.8 0.4 2.4 9.9
AIA Group Ltd 2.3 0.3 2.0 6.7
Softbank Corp 2.2 0.4 1.8 -1.7
Industria De Diseno Textil Inditex SA 1.8 0.2 1.6 3.7
Smc Corp 1.7 0.1 1.7 1.2
Banco Popular Espanol SA, Madrid 1.5 0.1 1.5 -11.5
Amazon.com Inc 1.5 0.0 1.5 -3.4
Roche Holding AG 1.5 1.1 0.4 -0.6
Unicredit SPA 1.4 0.2 1.2 -6.8
% of Portfolio 19.8 2.7
Portfolio Characteristics
Portfolio Benchmark
Wtd. Avg. Mkt. Cap ($M)53,615 60,094
Median Mkt. Cap ($M)21,725 7,546
Price/Earnings ratio 16.6 15.0
Price/Book ratio 2.6 2.1
5 Yr. EPS Growth Rate (%)15.3 10.6
Current Yield (%)2.2 3.1
Debt to Equity 1.2 1.2
Number of Stocks 182 1,829
Beta (5 Years, Monthly)1.07 1.00
Consistency (5 Years, Monthly)51.67 1.00
Sharpe Ratio (5 Years, Monthly)0.78 0.71
Information Ratio (5 Years, Monthly)0.65 -
Up Market Capture (5 Years, Monthly)107.72 -
Down Market Capture (5 Years, Monthly)99.80 -
Sector Weights (%)
Vanguard International Growth (VWIGX)
MSCI AC World ex USA (Net)
0.0 6.0 12.0 18.0 24.0 30.0 36.0
Cash
Utilities
Telecommunication Services
Materials
Information Technology
Industrials
Health Care
Financials
Energy
Consumer Staples
Consumer Discretionary
2.5
0.1
4.0
6.5
15.1
13.5
7.0
24.3
3.9
5.5
17.7
0.0
3.6
5.2
8.5
6.9
11.0
8.2
26.5
9.6
9.9
10.8
Distribution of Market Capitalization (%)
Vanguard International Growth (VWIGX)
MSCI AC World ex USA (Net)
0.0
15.0
30.0
45.0
60.0
>$75 Bil $20 Bil -
$75 Bil
$5 Bil -
$20 Bil
$0 -
$5 Bil
Cash
29.1
35.4
29.7
5.9
0.0
25.9
39.3
26.2
6.2
2.5
Manager Evaluation
Vanguard International Growth (VWIGX) vs. MSCI AC World ex USA (Net)
As of June 30, 2014
27
Vanguard
International Growth
(VWIGX)
MSCI AC World ex
USA (Net)
Australia 1.4 5.5
Hong Kong 4.9 3.3
Japan 12.0 14.4
New Zealand 0.0 0.1
Singapore 0.4 1.0
Pacific 18.7 24.3
Austria 0.0 0.2
Belgium 0.0 0.9
Finland 0.7 0.6
France 7.0 6.8
Germany 5.7 6.6
Ireland 0.3 0.2
Italy 2.7 1.8
Netherlands 1.0 2.1
Portugal 0.3 0.1
Spain 4.9 2.6
EMU 22.5 21.9
Denmark 1.8 1.1
Norway 1.8 0.6
Sweden 6.1 2.2
Switzerland 7.0 6.5
United Kingdom 14.5 15.3
Europe ex EMU 31.2 25.6
Canada 2.0 7.6
United States 1.7 0.0
Israel 1.0 0.4
Middle East 1.0 0.4
Developed Markets 77.0 79.8
Vanguard
International Growth
(VWIGX)
MSCI AC World ex
USA (Net)
Brazil 2.3 2.3
Cayman Islands 0.0 0.0
Chile 0.3 0.3
Colombia 0.0 0.2
Mexico 0.6 1.1
Peru 0.8 0.1
Virgin Islands 0.0 0.0
EM Latin America 3.9 4.0
China 7.3 2.6
India 2.4 1.5
Indonesia 0.3 0.5
Korea 2.2 3.3
Malaysia 0.0 0.8
Philippines 0.0 0.2
Taiwan 1.1 2.6
Thailand 0.7 0.5
EM Asia 14.1 12.0
Czech Republic 0.0 0.1
Egypt 0.0 0.0
Greece 0.0 0.2
Hungary 0.0 0.0
Poland 0.0 0.4
Qatar 0.0 0.1
Russia 0.5 1.2
South Africa 0.3 1.6
Turkey 0.9 0.4
United Arab Emirates 0.0 0.1
EM Europe + Middle East + Africa 1.8 4.0
Emerging Markets 19.8 20.0
Frontier Markets 0.5 0.0
Cash 2.5 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 June 30, 2014
28
Historical Performance
Three Year Rolling Percentile Ranking Relative Performance
Historical Statistics (Jul-2009 - Jun-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)1.9 3.9 4.2 3.5 4.6 4.8 -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 2.0 3.9 4.3 3.7 4.9 5.0 -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 2.2 4.2 5.1 4.4 6.2 5.2 -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 81 74 83 84 88 66 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 (%)9/04 9/05 9/06 9/07 9/08 9/09 9/10 9/11 9/12 9/13 6/14
Vanguard Total Bond Market Index Fund (VBMFX)
Vanguard Total Bond Market Index Fund Benchmark
0
25
50
75
100Return Percentile Rank9/04 9/05 9/06 9/07 9/08 9/09 9/10 9/11 9/12 9/13 6/14
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)4.6 3.2 4.5 -0.4 1.0 1.4 0.2 -1.3 1.3 30.0 27y 6m
Vanguard Total Bond Market Index Fund Benchmark 4.9 3.2 4.8 0.0 1.0 1.5 0.0 N/A 1.2 0.0 27y 6m
90 Day U.S. Treasury Bill 0.1 0.0 0.0 0.1 0.0 N/A 3.2 -1.5 0.0 20.0 27y 6m
Manager Evaluation
Vanguard Total Bond Market Index Fund (VBMFX) vs. Vanguard Total Bond Market Index Fund Benchmark
As of June 30, 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.
29
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
AAAAAABBB68.4
5.4
12.8 13.4
69.8
4.2
12.6 13.4
Portfolio Characteristics
Portfolio Benchmark
Effective Duration 5.6 5.6
Avg. Maturity 7.7 7.7
Avg. Quality AA+AA+
Yield To Maturity (%)2.2 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
TreasuriesAgenciesCreditMBSABSNon-USEmergingOtherCMBS39.3
4.8
21.6 21.1
0.5
7.7
2.6 0.0 2.4
39.7
3.6
23.5 21.1
0.5
6.8
0.0 2.5 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
27.6
21.8
36.0
3.4
11.2
1.2
26.8
20.8
36.8
3.4
11.0
Manager Evaluation
Vanguard Total Bond Market Index (VBMFX) vs. Barclays U.S. Aggregate Float Adjusted
As of June 30, 2014
30
Historical Performance
Three Year Rolling Percentile Ranking Relative Performance
Historical Statistics (Jul-2009 - Jun-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 0.9 1.7 2.1 2.5 3.3 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 0.5 1.0 1.4 2.2 3.1 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 0.6 1.0 1.7 1.6 2.8 3.1 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 60 56 53 32 63 37 5 55 8 68 79 28 70 38 1 1
Cumulative Annualized Over/Under Relative Performance
Over/Under Performance
0.0
0.6
1.2
1.8
-0.6
-1.2Return (%)9/04 9/05 9/06 9/07 9/08 9/09 9/10 9/11 9/12 9/13 6/14
Vanguard Retirement Savings Trust Ryan 3 Yr GIC Master
0
25
50
75
100Return Percentile Rank9/04 9/05 9/06 9/07 9/08 9/09 9/10 9/11 9/12 9/13 6/14
Return
Standard
Deviation
Excess
Return Alpha Beta
Sharpe
Ratio
Tracking
Error
Information
Ratio
Downside
Risk Consistency
Inception
Date
Vanguard Retirement Savings Trust 2.5 0.3 2.4 1.6 0.4 9.3 0.4 0.6 0.0 70.0 11y 6m
Ryan 3 Yr GIC Master 2.2 0.6 2.1 0.0 1.0 3.8 0.0 N/A 0.0 0.0 11y 6m
90 Day U.S. Treasury Bill 0.1 0.0 0.0 0.0 0.0 N/A 0.6 -3.8 0.0 0.0 11y 6m
Manager Evaluation
Vanguard Retirement Savings Trust vs. Ryan 3 Yr GIC Master
As of June 30, 2014
31
Historical Performance
Three Year Rolling Percentile Ranking Relative Performance
Historical Statistics (Jul-2009 - Jun-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)3.7 5.7 16.2 11.3 13.5 7.2 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 3.7 5.8 16.6 11.5 13.7 7.4 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 2.9 4.5 15.8 9.8 12.8 6.5 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 15 18 40 14 27 22 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 (%)9/04 9/05 9/06 9/07 9/08 9/09 9/10 9/11 9/12 9/13 6/14
Vanguard Balanced Index Fund (VBINX)
Vanguard Balanced Index Fund Benchmark
0
25
50
75
100Return Percentile Rank9/04 9/05 9/06 9/07 9/08 9/09 9/10 9/11 9/12 9/13 6/14
Return
Standard
Deviation
Excess
Return Alpha Beta
Sharpe
Ratio
Tracking
Error
Information
Ratio
Downside
Risk Consistency
Inception
Date
Vanguard Balanced Index Fund (VBINX)13.5 8.9 13.2 -0.1 1.0 1.5 0.2 -1.1 4.3 25.0 21y 7m
Vanguard Balanced Index Fund Benchmark 13.7 9.0 13.4 0.0 1.0 1.5 0.0 N/A 4.3 0.0 21y 7m
90 Day U.S. Treasury Bill 0.1 0.0 0.0 0.1 0.0 N/A 9.0 -1.5 0.0 15.0 21y 7m
Manager Evaluation
Vanguard Balanced Index Fund (VBINX) vs. Vanguard Balanced Index Fund Benchmark
As of June 30, 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.
32
Top Ten Equity Holdings
Portfolio
Weight
(%)
Benchmark
Weight
(%)
Active
Weight
(%)
Quarterly
Return
(%)
Apple Inc 2.5 2.6 -0.1 21.9
Exxon Mobil Corp 1.9 2.0 -0.1 3.8
Microsoft Corp 1.4 1.4 -0.1 2.4
Johnson & Johnson 1.3 1.4 -0.1 7.2
Wells Fargo & Co 1.2 1.3 -0.1 6.4
General Electric Co 1.2 1.2 -0.1 2.3
Chevron Corp 1.1 1.1 0.0 10.7
JPMorgan Chase & Co 1.0 1.0 0.0 -4.5
Procter & Gamble Co (The)0.9 1.0 0.0 -1.7
Berkshire Hathaway Inc 0.9 0.7 0.3 1.3
% of Portfolio 13.3 13.6
Portfolio Characteristics
Portfolio Benchmark
Wtd. Avg. Mkt. Cap ($M)96,992 101,083
Median Mkt. Cap ($M)1,138 925
Price/Earnings ratio 19.1 19.1
Price/Book ratio 2.9 2.9
5 Yr. EPS Growth Rate (%)12.6 12.9
Current Yield (%)1.8 1.8
Debt to Equity 1.5 1.5
Number of Stocks 3,396 3,720
Beta (5 Years, Monthly)0.58 1.00
Consistency (5 Years, Monthly)31.67 1.00
Sharpe Ratio (5 Years, Monthly)1.61 1.36
Information Ratio (5 Years, Monthly)-0.97 -
Up Market Capture (5 Years, Monthly)62.75 -
Down Market Capture (5 Years, Monthly)52.12 -
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
4.1
3.1
2.1
3.7
17.6
11.0
12.5
16.7
9.5
7.9
11.8
0.0
0.0
3.2
2.2
3.9
18.4
11.5
13.0
17.4
9.9
8.2
12.3
Distribution of Market Capitalization (%)
Vanguard Balanced Index Fund (VBINX) - Equity Holdings
CRSP U.S. Total Market TR Index
0.0
15.0
30.0
45.0
60.0
>$75 Bil $20 Bil -
$75 Bil
$5 Bil -
$20 Bil
$0 -
$5 Bil
Cash
38.4
28.7
20.3
12.5
0.0
36.9
27.5
19.5
12.0
4.1
Manager Evaluation
Vanguard Balanced Index Fund (VBINX) - Equity Holdings vs. CRSP U.S. Total Market TR Index
As of June 30, 2014
33
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
AAAAAABBB68.4
5.4
12.8 13.4
69.4
4.1
12.9 13.6
Portfolio Characteristics
Portfolio Benchmark
Effective Duration 5.6 5.6
Avg. Maturity 7.7 7.7
Avg. Quality AA+AA+
Yield To Maturity (%)2.1 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
TreasuriesAgenciesCreditMBSABSNon-USEmergingOtherCMBS39.3
4.8
21.6 21.1
0.5
7.7
2.6 0.0 2.4
43.1
0.0
26.1
21.1
2.9 5.8
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
27.6
21.8
36.0
3.4
11.2
24.2
18.7 19.7
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 June 30, 2014
34
Historical Performance
Three Year Rolling Percentile Ranking Risk and Return (Jul-2009 - Jun-2014)
Historical Statistics (Jul-2009 - Jun-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)2.7 4.4 9.7 6.6 8.6 5.8 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 2.8 4.5 10.0 6.7 8.7 5.8 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 2.4 4.0 11.0 7.3 9.9 5.8 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 35 41 73 68 76 50 93 50 12 58 68 34 15 73 63 37
8.4
8.6
8.8
9.0
Return (%)4.5 4.6
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 Rank9/04 9/05 9/06 9/07 9/08 9/09 9/10 9/11 9/12 9/13 6/14
Return
Standard
Deviation
Excess
Return Alpha Beta
Sharpe
Ratio
Tracking
Error
Information
Ratio
Downside
Risk Consistency
Inception
Date
Vanguard Target Retirement Income (VTINX)8.6 4.5 8.3 -0.1 1.0 1.8 0.1 -0.7 1.5 40.0 10y 8m
Vanguard Target Income Composite Index 8.7 4.5 8.4 0.0 1.0 1.9 0.0 N/A 1.5 0.0 10y 8m
90 Day U.S. Treasury Bill 0.1 0.0 0.0 0.1 0.0 N/A 4.5 -1.9 0.0 15.0 10y 8m
Manager Evaluation
Vanguard Target Retirement Income (VTINX) vs. Vanguard Target Income Composite Index
As of June 30, 2014
35
Historical Performance
Three Year Rolling Percentile Ranking Risk and Return (Jul-2009 - Jun-2014)
Historical Statistics (Jul-2009 - Jun-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)3.0 4.7 11.8 7.6 10.5 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 3.1 4.8 12.0 7.7 10.6 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 2.6 4.1 11.9 7.8 10.3 5.9 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 26 32 53 55 45 N/A 90 32 32 31 36 80 24 N/A N/A N/A
10.4
10.5
10.6
10.7
Return (%)7.2 7.3
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 Rank9/04 9/05 9/06 9/07 9/08 9/09 9/10 9/11 9/12 9/13 6/14
Return
Standard
Deviation
Excess
Return Alpha Beta
Sharpe
Ratio
Tracking
Error
Information
Ratio
Downside
Risk Consistency
Inception
Date
Vanguard Target Retirement 2010 (VTENX)10.5 7.2 10.3 -0.1 1.0 1.4 0.1 -0.6 3.3 40.0 8y
Vanguard Target 2010 Composite Index 10.6 7.2 10.4 0.0 1.0 1.4 0.0 N/A 3.3 0.0 8y
90 Day U.S. Treasury Bill 0.1 0.0 0.0 0.1 0.0 N/A 7.2 -1.4 0.0 20.0 8y
Manager Evaluation
Vanguard Target Retirement 2010 (VTENX) vs. Vanguard Target 2010 Composite Index
As of June 30, 2014
36
Historical Performance
Three Year Rolling Percentile Ranking Risk and Return (Jul-2009 - Jun-2014)
Historical Statistics (Jul-2009 - Jun-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)3.5 5.3 14.5 8.8 11.9 6.5 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 3.5 5.4 14.8 9.0 11.9 6.5 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 2.9 4.3 14.9 9.3 12.1 6.4 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 19 24 57 65 57 47 91 30 42 35 48 72 32 17 44 31
11.7
11.8
11.9
12.0
12.1
Return (%)8.8 8.9 9.0
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 Rank9/04 9/05 9/06 9/07 9/08 9/09 9/10 9/11 9/12 9/13 6/14
Return
Standard
Deviation
Excess
Return Alpha Beta
Sharpe
Ratio
Tracking
Error
Information
Ratio
Downside
Risk Consistency
Inception
Date
Vanguard Target Retirement 2015 (VTXVX)11.9 8.9 11.7 -0.1 1.0 1.3 0.1 -0.5 4.5 35.0 10y 8m
Vanguard Target 2015 Composite Index 11.9 8.9 11.7 0.0 1.0 1.3 0.0 N/A 4.5 0.0 10y 8m
90 Day U.S. Treasury Bill 0.1 0.0 0.0 0.1 0.0 N/A 8.9 -1.3 0.0 20.0 10y 8m
Manager Evaluation
Vanguard Target Retirement 2015 (VTXVX) vs. Vanguard Target 2015 Composite Index
As of June 30, 2014
37
Historical Performance
Three Year Rolling Percentile Ranking Risk and Return (Jul-2009 - Jun-2014)
Historical Statistics (Jul-2009 - Jun-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)3.7 5.6 16.4 9.7 12.9 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 3.8 5.8 16.8 10.0 13.1 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 4.6 16.8 10.4 13.4 6.7 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 16 22 57 70 65 N/A 91 32 46 46 48 69 39 N/A N/A N/A
12.3
12.6
12.9
13.2
13.5
13.8
Return (%)10.0 10.1 10.2 10.3
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 Rank9/04 9/05 9/06 9/07 9/08 9/09 9/10 9/11 9/12 9/13 6/14
Return
Standard
Deviation
Excess
Return Alpha Beta
Sharpe
Ratio
Tracking
Error
Information
Ratio
Downside
Risk Consistency
Inception
Date
Vanguard Target Retirement 2020 (VTWNX)12.9 10.2 12.7 -0.3 1.0 1.2 0.2 -1.4 5.5 30.0 8y
Vanguard Target 2020 Composite Index 13.1 10.1 13.0 0.0 1.0 1.3 0.0 N/A 5.4 0.0 8y
90 Day U.S. Treasury Bill 0.1 0.0 0.0 0.1 0.0 N/A 10.1 -1.3 0.0 20.0 8y
Manager Evaluation
Vanguard Target Retirement 2020 (VTWNX) vs. Vanguard Target 2020 Composite Index
As of June 30, 2014
38
Historical Performance
Three Year Rolling Percentile Ranking Risk and Return (Jul-2009 - Jun-2014)
Historical Statistics (Jul-2009 - Jun-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)4.0 5.8 18.0 10.4 13.8 6.8 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 4.1 6.0 18.3 10.7 14.0 6.9 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 4.6 17.7 10.9 14.1 6.9 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 13 16 45 66 60 54 89 24 57 38 41 80 35 20 52 36
13.2
13.5
13.8
14.1
14.4
14.7
Return (%)11.2 11.3 11.4 11.5 11.6
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 Rank9/04 9/05 9/06 9/07 9/08 9/09 9/10 9/11 9/12 9/13 6/14
Return
Standard
Deviation
Excess
Return Alpha Beta
Sharpe
Ratio
Tracking
Error
Information
Ratio
Downside
Risk Consistency
Inception
Date
Vanguard Target Retirement 2025 (VTTVX)13.8 11.5 13.7 -0.3 1.0 1.2 0.2 -1.1 6.4 35.0 10y 8m
Vanguard Target 2025 Composite Index 14.0 11.4 13.9 0.0 1.0 1.2 0.0 N/A 6.2 0.0 10y 8m
90 Day U.S. Treasury Bill 0.1 0.0 0.0 0.1 0.0 N/A 11.3 -1.2 0.0 15.0 10y 8m
Manager Evaluation
Vanguard Target Retirement 2025 (VTTVX) vs. Vanguard Target 2025 Composite Index
As of June 30, 2014
39
Historical Performance
Three Year Rolling Percentile Ranking Risk and Return (Jul-2009 - Jun-2014)
Historical Statistics (Jul-2009 - Jun-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)4.2 6.0 19.5 11.1 14.6 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 4.3 6.2 19.8 11.4 14.9 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 3.5 4.9 19.7 12.0 15.3 7.2 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 14 20 53 74 70 N/A 89 27 59 45 43 76 38 N/A N/A N/A
14.1
14.4
14.7
15.0
15.3
Return (%)12.5 12.6 12.7 12.8
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 Rank9/04 9/05 9/06 9/07 9/08 9/09 9/10 9/11 9/12 9/13 6/14
Return
Standard
Deviation
Excess
Return Alpha Beta
Sharpe
Ratio
Tracking
Error
Information
Ratio
Downside
Risk Consistency
Inception
Date
Vanguard Target Retirement 2030 (VTHRX)14.6 12.7 14.6 -0.4 1.0 1.2 0.2 -1.1 7.3 35.0 8y
Vanguard Target 2030 Composite Index 14.9 12.6 14.8 0.0 1.0 1.2 0.0 N/A 7.1 0.0 8y
90 Day U.S. Treasury Bill 0.1 0.0 0.0 0.1 0.0 N/A 12.6 -1.2 0.0 15.0 8y
Manager Evaluation
Vanguard Target Retirement 2030 (VTHRX) vs. Vanguard Target 2030 Composite Index
As of June 30, 2014
40
Historical Performance
Three Year Rolling Percentile Ranking Risk and Return (Jul-2009 - Jun-2014)
Historical Statistics (Jul-2009 - Jun-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)4.5 6.2 21.1 11.7 15.4 7.3 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 4.5 6.4 21.4 12.1 15.7 7.4 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 3.5 5.1 20.8 12.5 15.9 7.4 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 12 19 45 70 62 57 87 21 68 41 40 75 41 19 51 31
15.0
15.3
15.6
15.9
16.2
Return (%)13.7 13.8 13.9 14.0
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 Rank9/04 9/05 9/06 9/07 9/08 9/09 9/10 9/11 9/12 9/13 6/14
Return
Standard
Deviation
Excess
Return Alpha Beta
Sharpe
Ratio
Tracking
Error
Information
Ratio
Downside
Risk Consistency
Inception
Date
Vanguard Target Retirement 2035 (VTTHX)15.4 13.9 15.5 -0.4 1.0 1.1 0.3 -0.9 8.1 40.0 10y 8m
Vanguard Target 2035 Composite Index 15.7 13.8 15.7 0.0 1.0 1.1 0.0 N/A 7.9 0.0 10y 8m
90 Day U.S. Treasury Bill 0.1 0.0 0.0 0.1 0.0 N/A 13.8 -1.1 0.0 15.0 10y 8m
Manager Evaluation
Vanguard Target Retirement 2035 (VTTHX) vs. Vanguard Target 2035 Composite Index
As of June 30, 2014
41
Historical Performance
Three Year Rolling Percentile Ranking Risk and Return (Jul-2009 - Jun-2014)
Historical Statistics (Jul-2009 - Jun-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)4.6 6.4 22.2 12.3 15.8 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 4.7 6.5 22.5 12.6 16.1 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 3.7 5.1 21.7 13.2 16.5 7.5 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 13 19 45 72 69 N/A 87 24 68 51 46 51 42 N/A N/A N/A
15.3
15.6
15.9
16.2
16.5
16.8
Return (%)13.9 14.0 14.1 14.2 14.3
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 Rank9/04 9/05 9/06 9/07 9/08 9/09 9/10 9/11 9/12 9/13 6/14
Return
Standard
Deviation
Excess
Return Alpha Beta
Sharpe
Ratio
Tracking
Error
Information
Ratio
Downside
Risk Consistency
Inception
Date
Vanguard Target Retirement 2040 (VFORX)15.8 14.1 15.9 -0.4 1.0 1.1 0.2 -1.0 8.3 35.0 8y
Vanguard Target 2040 Composite Index 16.1 14.0 16.1 0.0 1.0 1.1 0.0 N/A 8.1 0.0 8y
90 Day U.S. Treasury Bill 0.1 0.0 0.0 0.1 0.0 N/A 14.0 -1.1 0.0 15.0 8y
Manager Evaluation
Vanguard Target Retirement 2040 (VFORX) vs. Vanguard Target 2040 Composite Index
As of June 30, 2014
42
Historical Performance
Three Year Rolling Percentile Ranking Risk and Return (Jul-2009 - Jun-2014)
Historical Statistics (Jul-2009 - Jun-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)4.6 6.4 22.1 12.3 15.8 7.6 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 4.7 6.5 22.5 12.6 16.1 7.8 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 3.7 5.1 21.7 13.2 16.5 7.5 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 13 18 45 72 68 45 87 23 67 51 47 51 42 17 43 27
15.3
15.6
15.9
16.2
16.5
16.8
Return (%)13.9 14.0 14.1 14.2
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 Rank9/04 9/05 9/06 9/07 9/08 9/09 9/10 9/11 9/12 9/13 6/14
Return
Standard
Deviation
Excess
Return Alpha Beta
Sharpe
Ratio
Tracking
Error
Information
Ratio
Downside
Risk Consistency
Inception
Date
Vanguard Target Retirement 2045 (VTIVX)15.8 14.1 15.9 -0.4 1.0 1.1 0.2 -1.0 8.3 40.0 10y 8m
Vanguard Target 2045 Composite Index 16.1 14.0 16.1 0.0 1.0 1.1 0.0 N/A 8.1 0.0 10y 8m
90 Day U.S. Treasury Bill 0.1 0.0 0.0 0.1 0.0 N/A 14.0 -1.1 0.0 15.0 10y 8m
Manager Evaluation
Vanguard Target Retirement 2045 (VTIVX) vs. Vanguard Target 2045 Composite Index
As of June 30, 2014
43
Historical Performance
Three Year Rolling Percentile Ranking Risk and Return (Jul-2009 - Jun-2014)
Historical Statistics (Jul-2009 - Jun-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)4.6 6.3 22.1 12.3 15.8 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 4.7 6.5 22.5 12.6 16.1 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 3.7 5.1 21.7 13.2 16.5 7.5 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 13 19 45 72 69 N/A 87 23 68 51 46 52 42 N/A N/A N/A
15.3
15.6
15.9
16.2
16.5
16.8
Return (%)13.9 14.0 14.1 14.2
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 Rank9/04 9/05 9/06 9/07 9/08 9/09 9/10 9/11 9/12 9/13 6/14
Return
Standard
Deviation
Excess
Return Alpha Beta
Sharpe
Ratio
Tracking
Error
Information
Ratio
Downside
Risk Consistency
Inception
Date
Vanguard Target Retirement 2050 (VFIFX)15.8 14.1 15.9 -0.4 1.0 1.1 0.2 -1.1 8.3 35.0 8y
Vanguard Target 2050 Composite Index 16.1 14.0 16.1 0.0 1.0 1.1 0.0 N/A 8.1 0.0 8y
90 Day U.S. Treasury Bill 0.1 0.0 0.0 0.1 0.0 N/A 14.0 -1.1 0.0 15.0 8y
Manager Evaluation
Vanguard Target Retirement 2050 (VFIFX) vs. Vanguard Target 2050 Composite Index
As of June 30, 2014
44
Historical Performance
Three Year Rolling Percentile Ranking Risk and Return (Oct-2010 - Jun-2014)
Historical Statistics (Oct-2010 - Jun-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)4.6 6.4 22.2 12.4 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 4.7 6.5 22.5 12.6 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 3.7 5.1 21.7 13.2 16.5 7.5 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 13 18 45 70 N/A N/A 87 23 63 N/A N/A N/A N/A N/A N/A N/A
13.8
14.0
14.2
14.4
14.6
Return (%)12.4 12.5 12.6 12.7
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 Rank9/04 9/05 9/06 9/07 9/08 9/09 9/10 9/11 9/12 9/13 6/14
Return
Standard
Deviation
Excess
Return Alpha Beta
Sharpe
Ratio
Tracking
Error
Information
Ratio
Downside
Risk Consistency
Inception
Date
Vanguard Target Retirement 2055 (VFFVX)14.1 12.6 14.1 -0.2 1.0 1.1 0.2 -0.6 7.9 33.3 3y 9m
Vanguard Target 2055 Composite Index 14.2 12.5 14.3 0.0 1.0 1.1 0.0 N/A 7.8 0.0 3y 9m
90 Day U.S. Treasury Bill 0.1 0.0 0.0 0.1 0.0 N/A 12.5 -1.1 0.0 13.3 3y 9m
Manager Evaluation
Vanguard Target Retirement 2055 (VFFVX) vs. Vanguard Target 2055 Composite Index
As of June 30, 2014
45
Historical Performance
Three Year Rolling Percentile Ranking Risk and Return (Apr-2012 - Jun-2014)
Historical Statistics (Feb-2012 - Jun-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)4.6 6.4 22.2 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 4.7 6.5 22.5 N/A 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 3.7 5.1 21.7 13.2 16.5 7.5 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 12 18 44 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
15.0
15.2
15.4
15.6
Return (%)7.0 7.1 7.2 7.3 7.4 7.5 7.6
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 Rank9/04 9/05 9/06 9/07 9/08 9/09 9/10 9/11 9/12 9/13 6/14
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 5m
Vanguard Target 2060 Composite Index 18.7 8.4 17.8 0.0 1.0 2.1 0.0 N/A 2.4 0.0 2y 5m
90 Day U.S. Treasury Bill 0.1 0.0 0.0 0.1 0.0 N/A 8.4 -2.1 0.0 10.0 2y 5m
Manager Evaluation
Vanguard Target Retirement 2060 (VTTSX) vs. Vanguard Target 2060 Composite Index
As of June 30, 2014
46
Manager Evaluation
Ta rget-Date Funds Asset Allocation
As of June 30, 2014
U.S.Equi ty 21.3%26.6%36.2%43.1%48.3%53.5%58.7%63.0%63.1%63.0%63.0%63.0%
Va nguard Total St ock M arke t Index Fu nd 21.3%26.6%36.2%43.1%48.3%53.5%58.7%63.0%63.1%63.0%63.0%63.0%
Non-U.S . Equ ity 9.0%11.4%15.4%18.3%24.9%22.9%25.2%27.0%27.0%27.0%27.0%27.0%
Va nguard Total In ternational Stock In dex F und 9.0%11.4%15.4%18.3%24.9%22.9%25.2%27.0%27.0%27.0%27.0%27.0%
Fi xe d In come 69.7%62.0%48.4%38.6%26.8%23.6%16.1%10.0%9.9%10.0%10.0%10.0%
Va nguard Total Bo nd Marke t II In dex F und 39.1%36.5%32.1%30.9%20.6%18.9%12.9%8.0%7.9%8.0%8.0%8.0%
Va nguard Total In ternational Bo nd Stock In dex F und 13.9%12.3%9.6%7.7%6.2%4.7%3.2%2.0%2.0%2.0%2.0%2.0%
Va nguard Infla tion-Pro tected Securit ie s Fund 16.7%13.2%6.7%0.0%0.0%0.0%0.0%0.0%0.0%0.0%0.0%0.0%
TO TA L 100.0%100.0%100.0%100.0%100.0%100.0%100.0%100.0%100.0%100.0%100.0%100.0%
Tar get
Date
2060
Tar get
Date
2030
Tar get
Date
2035
Tar get
Date
2040
Tar get
Date
2055VanguardComponent Funds
Re ti rement
In come
Tar get
Date
2045
Tar get
Date
2050
Tar get
Date
2015
Tar get
Date
2020
Tar get
Date
2025
Tar get
Date
2010
0%
10%
20%
30%
40%
50%
60%
70%
80%
U.S.Equity Non-U.S.Equity Fixed In come
Re ti rem ent Inc om e
Target Date 2010
Target Date 2015
Target Date 2020
Target Date 2025
Target Date 2030
Target Date 2035
Target Date 2040
Target Date 2045
Target Date 2050
Target Date 2055
Target Date 2060
47
Capital Markets Review
48
Capital Markets Rev iew
Economy
-3
-2
-1
0
1
2
3
4
5
6
Jun-04Dec-04Jun-05Dec-05Jun-06Dec-06Jun-07Dec-07Jun-08Dec-08Jun-09Dec-09Jun-10Dec-10Jun-11Dec-11Jun-12Dec-12Jun-13Dec-13Jun-14Can Inf Can ex Fo od/Energ y U.S. CPI U.S. Core -4
-2
0
2
4
6
8
10
U.S.Canad a Japan China Euro zo nePercentQ1 13 Q2 13 Q3 13 Q4 13 Q1 14
World Growth Uneven, While Investors Prepare For Federal Reserve
Inflation Rising GDP Growth Rates
Source: Trading Economics
2
3
4
5
6
7
8
9
10
11
12
Jun-1950Jun-1954Jun-1958Jun-1962Jun-1966Jun-1970Jun-1974Jun-1978Jun-1982Jun-1986Jun-1990Jun-1994Jun-1998Jun-2002Jun-2006Jun-2010Jun-2014PercentWorld Growth Uneven, While Investors Prepare For Federal Reserve
Policy Changes
•Markets awaited an economic rebound, following the U.S. first quarter’s 2.9% GDP
contraction. Holding growth expectations lower were rising prices across broad
segments of the economy, especially housing and energy. Eurozone prices
moved in the opposite direction, prompting the European Central Bank (ECB) to
move interest rates to -0.1%.
•Federal Reserve interest rate policy became difficult to predict as the
unemployment rate fell more rapidly than forecast.Already below the previous
Fed target,Janet Yellen worked to calm fears over imminent interest rate
increases,explaining that a better understanding of the rapid drop in
unemployment is needed to ascertain whether labor pool changes or economic
improvements are responsible.
•Q2 GDP is expected to be mixed globally.Japan raised its consumption tax by 3%
in April,which was preceded by a Q1 surge in consumer spending.Japan’s Q2
GDP is expected to reflect a drop in consumer activity.China’s growth is expected
to remain steady as the government continues to deal with an economy skewed
toward real estate development.Canada’s economy is benefiting from high energy
prices,while facing headwinds from rising housing costs.Eurozone GDP will
reflect moderating German growth as the ECB reported lower growth expectations
amidst lower exports.Dependency on Russia for natural gas and oil hurt the
outlook for Europe,and left European nations timid on expanded sanctions
following Russia’s annexation of Crimea.
Unemployment Rate
Source: Federal Reserve; Bloomberg
Source: Bureau of Labor Statistics
49
5.3%
1.0%
3.9%
4.4%
10.2%
5.4%
6.9%
8.3%
8.0%
18.0%
14.0%
2.4%
3.2%
3.4%
3.9%
4.3%
4.7%
4.9%
5.1%
5.7%
7.8%
12.2%
0.0%5.0%10.0%15.0%20.0%
Fi nancials
Cons. Disc.
In dust rials
Telecom
Health Care
Cons.Sta pl es
Russell 30 00
Mate rials
Info Tech
Utilities
Energy
2Q14 YTD
2nd Quarter and YTD 2014 Sector Returns
Capital Markets Rev iew
Equities
0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
12.0%
ACWI ex
USA
Ca na da Pacific USA
S&P 500
MS CI
EAFE
Euro pe EMU EM
Asia
EM Latin
America
MS CI
EM
EM
EMEA
5.0%
9.9%
5.8%
5.2%
4.1%
3.3%
2.1%
7.2%6.8%6.7%
4.4%
2nd Quarter 2014 World Equity Returns (USD)
Developed Markets Emerging Markets
Historic Volatility Levels
0.0%5.0%10.0%15.0%20.0%
0
5
10
15
20
25
30
35
40
45
50
Ju n-09 De c-09 Ju n-10 Dec-10 Ju n-11 Dec-11 Ju n-12 Dec-12 Ju n-13 De c-13 Ju n-14
VIX Volatili ty Index 10 Year Average
Source: CBOE
The Streak Continues;Equity Markets Advance in Second Quarter
•Domestic equity markets continued to advance for a sixth consecutive quarter,
the longest streak since 1998.Large-cap stocks outperformed small-cap stocks
while growth and value stocks performed almost identically.All ten sectors rose,
with energy and utilities notably advancing due to a combination of heightened
tensions in the Middle East,which reduced oil supply,and investors seeking
dividend-paying securities amid the low interest rate environment.
•Equity market volatility,as measured by the VIX Index,continued to trend lower
and closed the quarter at its lowest level since December 2006 despite
uncertain global economic prospects and increased geopolitical turmoil
throughout the quarter.Historically,when volatility is low,equities trend higher
as they did during the second quarter.Accommodation by central banks around
the world has significantly contributed to the extremely low volatility levels.
•Non-U.S.equities experienced solid gains with emerging markets outperforming
developed markets for the first time since the third quarter of 2012.Emerging
markets were aided by signs of economic stabilization in China,increased
stimulus measures in Europe,and an improving U.S.economy.Asian and
American markets fared better than European markets,however,all regions
advanced.
50
0
250
500
750
1000
1250
1500
1750
2000
Jun-04Jun-05Jun-06Jun-07Jun-08Jun-09Jun-10Jun-11Jun-12Jun-13Jun-14Option-Adjusted Spread (OAS)Date
Barclays US Credit
US Credit 10-Year Average
Barclays US HY
HY 10-Year Average
Source: Barclays
Duration-adjusted Excess Returns to Treasuries (bps) Trailing 10-Year Credit Spreads
Capital Markets Rev iew
Fixed Income
Best Period Second Bes t Period Wors t Period Second W ors t Period
2007 2008 2009 2010 2011 2012 2013 1Q14 2Q14
Aggre ga te -206 -710 746 171 -114 226 93 16 52
Agency -56 -110 288 77 -25 166 1 30 50
MBS -177 -232 495 225 -106 91 98 -24 90
ABS -634 -2223 2496 169 52 246 24 19 30
CM BS -435 -3274 2960 1501 47 841 97 65 55
Cre dit -464 -1786 1990 192 -322 693 226 75 81
Hi gh Yield -777 -3832 5955 974 -240 1394 923 199 137
Em erging -457 -2842 3797 508 -537 1503 -32 127 282
Date
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 MaturityMatu rity (Y ears)
12/31/2013 3/31/2014 6/30/2014
Source: Barclays
U.S. Treasury Yield Curve
Source: US Dept of The Treasury
More of the Same in Q2 as Yields Decline and Spreads Tighten
•All major fixed income sectors produced positive total returns as yields declined
and spreads tightened.High beta sectors such as high yield corporates and
emerging markets debt produced particularly strong results as investors
continued to seek yield and embraced easy-money policy.
•The yield curve flattened during the quarter.Sluggish economic growth,
escalating geopolitical risks,and accommodative central bank policy drove
intermediate and long rates lower,while the Federal Reserve’s commitment to
low short term rates anchored the front end of the curve.The spreads between
five-and 30-year Treasuries reached the tightest level since the first quarter of
2009.
•Credit spreads continued to tighten during the quarter amid healthy corporate
fundamentals,accommodative monetary policy,and an ongoing thirst for yield
among investors.Investment grade and high yield credit spreads reached
seven-year lows and currently trade well-below their respective ten-year
averages.
51
$2,000,000
$2,500,000
$3,000,000
Assets ($MM)Net Asset Flow Estimated Assets
Capital Markets Review
Hedge Funds
HFRI Index Performance –Second Quarter and YTD 2014
Growth of As sets in Hedge Funds
Rolling 3-Year Correlation of Hedge Fund Strategies
to the MSCI All-Country World Index
3.9%
6.2%
2.2%
3.2%
1.9%
0.9%
4.4%
1.5%
3.3%
5.4%
3.5%
2.0%
5.0%
1.6%
2.0%
1.2%
1.2%
2.3%
0.3%
2.2%
2.5%
1.2%
0%1%2%3%4%5%6%7%
BC Aggregate Bond Index
MSCI All-Country World Index
Fu nd of Funds
Hedge Fund Com posite
Merger Arbitrage
Gl obal Macro
Event Driven
Equity Market Neutral
Equity Hedge
Distressed Securities
Convertible Arbitrage
Q2
YT D
0.0
0.1
0.2
0.3
0.4
0.5
0.6
0.7
0.8
0.9
1.0
Sep-96Apr-97Nov-97Jun-98Jan-99Aug-99Mar-00Oct-00May-01Dec-01Jul-02Feb-03Sep-03Apr-04Nov-04Jun-05Jan-06Aug-06Mar-07Oct-07May-08Dec-08Jul-09Feb-10Sep-10Apr-11Nov-11Jun-12Jan-13Aug-13Mar-14Distressed Relative Value Event-Driven L/S Equity Multi-Strat HF OF Macro
-$500,000
$0
$500,000
$1,000,000
$1,500,000
199019911992199319941995199619971998199920002001200220032004200520062007200820092010201120122013Q12014Q2014Assets ($MM)59%54%53%
46%45%
30%
19%
7%2%4%
0%
10%
20%
30%
40%
50%
60%
70%Returns that Are Uncorrelated to Equity MarketsProduce Absolute Returns in All MarketsProduce Robust Risk-Adjusted ReturnsDampen Portfolio VolatilityDiversify Total PortfolioMitigate Risks in Other Areas of Total PortfolioDiversify Alternative Asset PortfolioHigh ReturnsReturns that Are Correlated to Equity MarketsOtherProportion of RespondentsObjectives of Institutional Investors for
Their Hedge Fund Portfolios
Source: HFR Inc.
Source: Preqin
Distressed Relative Value Event-Driven L/S Equity Multi-Strat HF OF Macro
Hedge Fund Assets Break New Record
•Distressed hedge funds were the top performers for the second quarter in a
row,returning 5.4%year-to-date.Global macro managers produced a positive
return for the quarter but performance continued to lag behind other hedge fund
strategies.All hedge fund strategies trailed global equities during the second
quarter and through the first half of 2014.
•The hedge-fund industry now oversees a record $2.8 trillion in assets,
according to industry tracker HFR Inc.That marked the eighth consecutive
quarterly record for industrywide assets under management.
•According to an April 2014 study by Preqin,the top objective of institutional
investors’hedge fund allocations is to obtain returns uncorrelated to the equity
markets.However,the rolling three-year correlation of most hedge fund
strategies with the MSCI All-Country World Index is above 0.8,indicating the
limited diversification benefits of hedge funds during the past several years.
Global macro has the lowest correlation to equities with a rolling three-year
correlation of 0.3.
52
Capital Markets Review
Real Assets
Real Estate Returns as of March 31, 2014
Source: Ibbotson
DJ-UBS Commodity Index Components
Total Return Ending June 30, 2014
Global Equity REIT Issuance
Se gment 3 M onths YT D 1 Ye ar 3 Years 5 Year s
30.6%Energy 4.4%8.7%16.7%-3.9%-5.1%
15.3%Petroleum 5.8%6.3%14.2%4.1%4.7%
15.0%In dus trial Metals 8.5%3.6%8.3%-10.9%2.2%
15.1%Precious Me tals 3.8%9.4%7.5%-7.7%7.5%
24.6%Grains -13.2%0.7%-9.6%-2.1%2.7%
5.7%Livestoc k 3.6%20.5%21.6%4.5%3.3%
9.0%Softs -6.9%13.0%6.0%-14.5%4.9%
100.0%Total Market 0.1%7.1%8.2%-5.2%2.0%
Al locationNCREIF3 M on.YT D 1 Yr.3 Yrs.5 Y rs.10 Yrs.
NCREIF 2.7%11.0%11.2%11.7%7.9%8.7%
Apartm ents 2.2%10.4%10.0%11.9%9.1%8.3%
In dus trials 2.8%12.3%12.6%12.3%7.3%8.2%
Offic e 2.2%9.9%10.2%10.7%6.6%8.2%
Retail 4.3%12.9%13.5%13.0%9.4%10.2%
Ho tel 0.8%7.7%7.3%8.2%4.5%6.8%
Eas t 2.1%9.3%9.2%10.2%7.6%8.6%
Mi dwes t 2.6%10.6%10.7%10.8%7.2%7.3%
South 3.4%12.5%12.9%12.3%8.2%8.6%
West 3.1%11.8%12.2%13.1%8.2%9.3%
Source: Preqin Real Estate Online
Global Equity REIT Issuance
$0
$5,000
$10,000
$15,000
$20,000
$25,000
$30,000
$35,000
Of feri ngs IPO Of ferings IPO Of ferings IPO Of ferings IPO
Americ as
Asia-Pacific
Euro pe$24,974M
$5,731M
$28,879M
$6,686M
$32,943M
$25,696M
$10,454M
$5,614M
2011 2012 2013 2014
Source: CBRE Clarion as of May 31, 2014
Private and Public Real Estate Post Strong Gains while Commodities
Experience Flat Results
•Private real estate returns continued to outpace historical average results during
the first quarter.Capitalization rate compression continued to be a significant
driver of performance.From a sector perspective,retail finally landed back on top
with a 4.3%quarterly return (highest since 4Q10)driven by regional and super
regional malls,which both returned over 5%and comprise approximately half of
the retail sector by value.
•Domestic and international REITs delivered returns of 7.0%and 8.8%,
respectively,during the second quarter,compared to 5.2%for the S&P 500.As
fixed income yields continue to compress,investors have been attracted by
REITs’yield of 3.8%(130 basis points above the 10-Year U.S.Treasury).
•After advancing 7.0%during the first quarter,commodity prices were mixed during
the second quarter resulting in a gain of just 0.1%for the DJ UBS Commodity
Index.Supply imbalances drove grain prices down after the U.S.Department of
Agriculture released its forecast for a record corn crop this fall.Industrial metals
and energy prices were both up during the quarter.Continued Middle East
conflict as well as harsh weather that continued into April help buoy energy prices.
Copper prices have escalated due to an Indonesian ban on the export of both
nickel (+19.2%)and copper (+6.4%)ore,which was announced in January.
53
0
20
40
60
80
100
120
140
160
0
50
100
150
200
250
300
350
400
450
Agg. Value ($,Millions)# of DealsBuy out-Bac ked Ex its #Buy out-Bac ked Ex its $Va lue
Buyout-Backed Exit Ac tivityInvestment Horizon Pooled IRR as of 12/31/13
Fund Type 3 Months 1 Year 3 Years 5 Years 10 Years 20 Years
Early Stage Venture 7.5%15.8%4.2%2.4%2.6%27.4%
Balanced Venture 4.6%14.2%4.2%4.5%6.0%10.0%
Later Stage Venture 8.1%22.4%6.5%9.2%8.2%13.2%
All Venture 6.0%15.6%4.6%4.5%5.1%15.1%
Small Buyouts 3.8%15.0%4.9%5.2%10.0%11.7%
Medium Buyouts 8.3%18.3%8.4%8.2%9.1%11.1%
Large Buyouts 7.0%19.7%9.6%10.1%11.5%10.3%
Mega Buyouts 7.8%24.4%13.7%15.7%9.8%9.9%
All Buyouts 7.6%22.4%11.1%11.9%10.4%10.5%
Mezzanine 3.4%14.0%6.4%5.9%6.6%7.4%
Distressed/Turnaround 6.8%15.8%10.0%14.3%10.0%10.3%
All Private Equity 7.1%20.7%9.7%10.6%9.4%11.2%
S&P 500 10.5%32.4%15.8%17.9%8.1%8.8%
Capital Markets Rev iew
Pr ivate Equity
Buy out-Bac ked Ex its #Buy out-Bac ked Ex its $Va lue
$0
$20
$40
$60
$80
$100
$120
$140
$160
$,BillionsVC Buy out Real As sets Sec ondary Funds Di stressed/SS
2Q14 Among Most Active Ever for Buyout Fund Exit Activity
•Private equity performance data in the ThomsonOne database has yet to be
updated for the first quarter of 2014.During 4Q13,private equity funds
produced strong absolute returns but failed to keep pace with the extraordinary
returns from public equity markets.Middle-market buyout and late stage
venture capital funds were the strongest performers for the quarter while small
buyout and mezzanine were the worst performing fund segments.
•During 2Q14,private equity funds experienced their best fundraising quarter
since before the financial crisis,raising $112 billion,an increase of 30%from
the prior quarter and 16%more than the same period last year.Buyout funds
led the way,raising more than $54 billion,up more than 50%from the prior
quarter.Venture capital funds raised $14 billion in 2Q14,matching the amount
raised in the prior quarter but still well above the quarterly average seen since
the financial crisis.
•Buyout funds continued to take advantage of strength in public equity markets
to exit investments during the second quarter.According to Preqin,buyout
funds completed 394 exits with an aggregate exit value of $137 billion globally
during 2Q14.Those quarterly totals represent the second highest number of
exits and largest aggregate value of exits on record.
Source: Thomson Reuters ThomsonOne database, July 2014.
Note: Data is continuously updated and is therefore subject to change.
S&P 500 10.5%32.4%15.8%17.9%8.1%8.8%
Source: Thomson Reuters ThomsonOne database, July 2014.
Source: Preqin
Global Fundraising
54
Quarter
Year
To
Date
1
Year
2
Years
3
Years
5
Years
7
Years
10
Years
Domestic Equity Indices
Dow Jones Wilshire 5000 4.8 6.9 25.1 23.4 16.5 19.5 6.7 8.5
S&P 500 5.2 7.1 24.6 22.6 16.6 18.8 6.2 7.8
Russell 1000 Index 5.1 7.3 25.4 23.3 16.6 19.3 6.5 8.2
Russell 1000 Growth Index 5.1 6.3 26.9 21.9 16.3 19.2 8.0 8.2
Russell 1000 Value Index 5.1 8.3 23.8 24.6 16.9 19.2 4.8 8.0
Russell Midcap Index 5.0 8.7 26.9 26.1 16.1 22.1 7.7 10.4
Russell Midcap Growth Index 4.4 6.5 26.0 24.4 14.5 21.2 7.9 9.8
Russell Midcap Value Index 5.6 11.1 27.8 27.7 17.6 23.0 7.1 10.7
Russell 2000 Index 2.0 3.2 23.6 23.9 14.6 20.2 6.7 8.7
Russell 2000 Growth Index 1.7 2.2 24.7 24.2 14.5 20.5 7.9 9.0
Russell 2000 Value Index 2.4 4.2 22.5 23.6 14.6 19.9 5.5 8.2
International Equity Indices
MSCI EAFE 4.1 4.8 23.6 21.1 8.1 11.8 1.0 6.9
MSCI EAFE Growth Index 3.5 3.6 20.3 19.5 7.7 12.2 1.7 7.1
MSCI EAFE Value Index 4.7 6.0 26.9 22.6 8.5 11.2 0.1 6.7
MSCI EAFE Small Cap 2.1 5.5 29.1 24.9 9.8 15.2 2.5 8.8
MSCI AC World Index 5.0 6.2 22.9 19.7 10.3 14.3 3.2 7.5
MSCI AC World ex US 5.0 5.6 21.8 17.6 5.7 11.1 1.3 7.7
MSCI Emerging Markets Index 6.7 6.3 14.7 8.8 -0.1 9.6 2.6 12.3
Fixed Income Indices
Barclays U.S. Aggregate 2.0 3.9 4.4 1.8 3.7 4.9 5.3 4.9
Barcap Intermediate U.S. Government/Credit 1.2 2.3 2.9 1.6 2.8 4.1 4.7 4.3
Barclays U.S. Long Government/Credit 4.9 11.8 10.8 2.8 9.6 9.6 8.6 7.6
Barclays US Corp: High Yield 2.4 5.5 11.7 10.6 9.5 14.0 9.1 9.1
BofA Merrill Lynch 3 Month U.S. T-Bill 0.0 0.0 0.1 0.1 0.1 0.1 0.7 1.6
Barclays U.S. Treasury: U.S. TIPS 3.8 5.8 4.4 -0.3 3.6 5.6 5.9 5.3
Citigroup Non-U.S. World Government Bond 2.6 5.9 8.9 1.3 1.0 3.6 5.6 4.9
JPM EMBI Global Diversified (external currency)4.8 8.7 11.6 6.2 7.4 10.3 8.3 9.3
JPM GBI-EM Global Diversified (local currency)4.0 6.0 3.9 2.6 1.2 7.4 7.0 10.0
Real Asset Indices
Dow Jones - UBS Commodity 0.1 7.1 8.2 -0.2 -5.2 2.0 -2.7 0.9
Dow Jones Wilshire REIT 7.2 18.1 13.5 10.9 11.7 24.0 4.5 9.6
Capital Markets Review
Index Returns
As of June 30, 2014
(Percentage Return)
_________________________
Returns for periods greater than one year are annualized.
55