HomeMy Public PortalAbout2011 4th Quarter ReportDefined Contribution PlanFourth Quarter 2011 Plan Executive SummaryFebruary 15, 2012Kristin Finney-Cooke, CAIA, Senior ConsultantKristen Jackson, Senior Analyst
" S a v e t h e d a t e T u e s d a y M a y 1 5 , 2 0 1 2 & W e d n e s d a y M a y 1 6 , 2 0 1 2 " D e t a i l s L o c a t i o n : B o s t o n C o n v e n t i o n a n d E x h i b i t i o n C e n t e r , 4 1 5 S u m m e r S t r e e t , B o s t o n , M A H o t e l : R e n a i s s a n c e W a t e r f r o n t H o t e l F r i d a y , M a r c h 9 : r e g i s t r a t i o n w i l l b e a v a i l a b l e o n t h e N E P C w e b s i t e " H e a d l i n e s p e a k e r s J i m O N e i l , G o l d m a n S a c h s , M a r k e t O v e r v i e w a n d O u t l o o k K e n M e h l m a n , K o h l b e r g K r a v i s R o b e r t s , 2 0 1 2 E l e c t i o n O u t l o o k N E P C 2 0 1 2 C l i e n t C o n f e r e n c e 1
49%43%8%3 Month Change: Up $67 ThousandTarget Date FundsCore FundsLifestyle FundsExecutive SummaryCAPITAL MARKETS PERFORMANCE: QUARTERBONDINDICATORDOMESTIC EQUITYINDICATORFOREIGNEQUITY INDICATOR2010 TDF INDICATOR2040 TDF INDICATOR1.1%BarCap Agg Index11.8%S&P 500 Index3.7%MSCIACWI ex US Index5.2%S&P TDF 2010 Index9.2%S&P TDF 2040 Index•This report contains our normal quarterly reporting and special exhibits summarizing NEPC’s Capital Market Observations and Actions for Clients•Asset prices were extremely volatile in the quarter, with strong gains in October and weakness in November and December. For the year as a whole, the U.S. stock market ended roughly where it started, with a 2.1% gain coming mostly from dividends. •There was one material announcement from your fund managers over the quarter, a summary and our view is included.PLAN PERFORMANCE: QUARTERRANGE OF CORE FUND RETURNSRANGE OF TARGET DATE FUND RETURNSASSET WEIGHTED PLAN RETURN0.0% to 15.0% 4.0% to 8.9% 8.3%Vanguard Prime Mny MktVanguard Small Cap IdxIncome 2055COMMENTSPLAN ASSETS: $194 THOUSANDPLAN PERFORMANCE: YEARRANGE OF CORE FUND RETURNSRANGE OF TARGET DATE FUND RETURNS-13.7% to 7.6% -2.5% to 5.2%Vanguard International GrowthTotal Bond Market Idx2040Income2
Market Environment3
Q4 2011: Capital Markets SummarySources: Lehman Live, Bloomberg, Wilshire* 35% LC, 10% SC, 12% Int'l, 3% Emerging, 25% FI, 5% HY, 5% Global FI, 5% REITSQtr. 1 Yr.3 Yr.5 Yr.10 Yr.World Equity BenchmarksMSCI WorldWorld7.6%-5.5%11.1%-2.4%3.6%Qtr. 1 Yr.3 Yr.5 Yr.10 Yr.Domestic Equity BenchmarksS&P 500Large Core11.8% 2.1% 14.1%-0.2%2.9%Russell 1000Large Core11.8% 1.5% 14.8% 0.0% 3.3%Russell 1000 Growth Large Growth10.6% 2.6% 18.0% 2.5% 2.6%Russell 1000 ValueLarge Value13.1% 0.4% 11.6%-2.6%3.9%S&P Mid Cap 400Mid Core13.0%-1.7%19.6% 3.3% 7.0%Russell 2000Small Core15.5%-4.2%15.6% 0.2% 5.6%Russell 2000 Growth Small Growth15.0%-2.9%19.0% 2.1% 4.5%Russell 2000 ValueSmall Value16.0%-5.5%12.4%-1.9%6.4%NAREIT All Composite REIT 14.1% 7.3% 20.5%-2.2%9.4%Qtr. 1 Yr.3 Yr.5 Yr.10 Yr.International Equity BenchmarksMSCI EAFEInt'l Developed3.3%-12.1%7.7%-4.7%4.7%MSCI EMEEm. Mkt. Eqty. 4.4%-18.4%20.1% 2.4% 13.9%MSCI ACWI ex USInternational3.7%-13.7%10.7%-2.9%6.3%S&P EPAC SmallCap Small Cap Int'l 0.3%-14.4%13.1%-3.9%9.0%Qtr. 1 Yr.3 Yr.5 Yr.10 Yr.Domestic Fixed Income BenchmarksBarclays Aggregate Core Bonds 1.1% 7.8% 6.7% 6.5% 5.8%Barclays High Yield High Yield 6.5% 5.0% 24.1% 7.5% 8.9%Barclays 1-10 Muni.Municipal Bond2.1% 10.7% 8.6% 5.2% 5.4%Barclays 1-10 TIPSInflation1.7% 8.9% 8.7% 6.9% 6.6%90 Day T-BillCash0.0% 0.1% 0.2% 1.5% 2.0%Qtr. 1 Yr.3 Yr.5 Yr.10 Yr.Global Fixed Income BenchmarksCitigroup World Govt Bond Global Bonds-0.1%6.4% 4.7% 7.1% 7.8%J.P. Morgan EMBI Plus Em. Mkt. Bonds5.3% 9.2% 15.4% 8.1% 11.6%Qtr. 1 Yr.3 Yr.5 Yr.10 Yr.Diversified BenchmarkBalanced Index *Diversified6.7% 2.0% 10.5% 1.9% 5.8%4
SectorIndex200820092010QTR 1QTR 2JulyAugSepQTR 3OctNovDecQTR 42011Muni Bonds BC Muni (unadj)-2.5%12.9% 2.4% 0.5% 3.9% 1.0% 1.7% 1.0% 3.8%-0.4%0.6% 1.9% 2.1% 10.7%Core FIBC Aggregate 5.2% 5.9% 6.5% 0.4% 2.3% 1.6% 1.5% 0.7% 3.8% 0.1%-0.1%1.1% 1.1% 7.8%Global FI Citigroup WGBI 10.9% 2.6% 5.2% 0.7% 3.3% 2.3% 2.1%-2.0%2.4% 0.5%-1.5%0.9%-0.1%6.4%High Yield BC HY-26.2%58.2% 15.1% 3.9% 1.1% 1.2%-4.0% -3.3% -6.1%6.0%-2.2%2.7% 6.5% 5.0%LC Growth R1000 Growth-38.4%37.2% 16.7% 6.0% 0.8%-1.0% -5.3% -7.4% -13.2%11.0% 0.0%-0.3%10.6% 2.6%S&P 500 S&P 500-37.0%26.5% 15.1% 5.9% 0.1%-2.0% -5.4% -7.0% -13.8%10.9%-0.2%1.0% 11.8% 2.1%Balanced Diversified*-23.3%17.5% 12.6% 3.6% 1.1%-0.4% -3.5% -5.0% -8.7%6.7%-1.0%1.0% 6.7% 2.0%Large CapRussell 1000-37.6%28.4% 16.1% 6.2% 0.1%-2.2% -5.8% -7.5% -14.8%11.2%-0.3%0.8% 11.8% 1.5%LC ValueR1000 Value-36.8%19.7% 15.5% 6.5%-0.5% -3.3% -6.2% -7.6% -16.2%11.4%-0.5%2.0% 13.1% 0.4%SMid Cap R2500-36.8%34.4% 26.7% 8.7%-0.6% -3.8% -8.2% -10.8% -21.2%14.7%-0.3%0.2% 14.6%-2.5%SC GrowthR2000 Growth-38.5%34.5% 29.1% 9.2%-0.6% -3.9% -8.6% -11.5% -22.3%15.9%-0.5% -0.2%15.0%-2.9%Small CapRussell 2000-33.8%27.2% 26.9% 7.9%-1.6% -3.6% -8.7% -11.2% -21.9%15.1%-0.4%0.7% 15.5%-4.2%SC ValueR2000 Value-28.9%20.6% 24.5% 6.6%-2.7% -3.3% -8.8% -10.9% -21.4%14.4%-0.2%1.6% 16.0%-5.5%Intl. Dev.EAFE (net)-43.4%31.8% 7.8% 3.4% 1.6%-1.6% -9.0% -9.5% -19.0%9.6%-4.9% -0.9%3.3%-12.1%CommoditiesDJ UBS Commodity-35.7%18.9% 16.8% 4.4%-6.7%3.0% 1.0%-14.7% -11.3%6.6%-2.2% -3.7%0.3%-13.3%Intl. EmergingEM (net)-53.3%78.5% 18.9% 2.1%-1.1% -0.4% -8.9% -14.6% -22.5%13.2%-6.7% -1.2%4.4%-18.4%PERFORMANCE THROUGH 12/31/2011Investment Market Update: As of December 31, 2011 Sources: Lehman Live, Bloomberg, Wilshire5
Economic Environment6
U.S. Stock Market Performance7
Non – U.S. Stock Market Performance8
Fixed Income Performance9
" L o w e x p e c t e d r e t u r n s a r e h e r e t o s t a y f u n d a m e n t a l e c o n o m i c d r i v e r s r e m a i n d e p r e s s e d " U n c e r t a i n t y a r o u n d u l t i m a t e f a t e o f E u r o p r o l o n g s v o l a t i l i t y a n d m a c r o - d r i v e n m a r k e t s " D e s p i t e p o o r g r o w t h p r o s p e c t s , r i s k y a s s e t s h a v e s o m e u p s i d e " W o r l d w i d e r e c o v e r y , t h o u g h u n l i k e l y , c o u l d s p a r k i n f l a t i o n " G l o b a l e c o n o m i c l e a d e r s h i p e x p e c t e d f r o m e m e r g i n g c o u n t r i e s N E P C 2 0 1 2 C a p i t a l M a r k e t O b s e r v a t i o n s 1 0
" R e c o g n i z e t h a t c u r r e n t g l o b a l d e l e v e r a g i n g i s a m u l t i - y e a r e v e n t " I f a p p r o p r i a t e , i n c r e a s e p o r t f o l i o r i s k a n d e x p e c t e d r e t u r n " C o n t i n u e t o i n c r e a s e e m e r g i n g m a r k e t s e x p o s u r e " U s e a c t i v e s t r a t e g i e s t o e n h a n c e r e t u r n s " B u y L o w i n s e g m e n t s o f i l l i q u i d a n d l e s s l i q u i d a s s e t s N E P C 2 0 1 2 G e n e r a l A c t i o n s f o r C l i e n t s 1 1
" O u r c h a l l e n g e i s h e l p i n g p a r t i c i p a n t s r e t i r e P a r t i c i p a n t s a r e n o t i n v e s t m e n t e x p e r t s S a v i n g s l e v e l s a r e n o t s u f f i c i e n t T h e i n v e s t m e n t l a n d s c a p e h a s b e e n i n c r e d i b l y d i f f i c u l t , a n d w i l l c o n t i n u e t o b e " S p o n s o r s c a n d r i v e b e t t e r o u t c o m e s D o a p l a n r e e n r o l l m e n t o r r e f r e s h p u t t i n g p a r t i c i p a n t s i n t a r g e t d a t e f u n d s B u i l d c u s t o m t a r g e t d a t e f u n d s E n c o u r a g e s a v i n g s ( a u t o e n r o l l a n d a u t o i n c r e a s e ) M i n i m i z e f e e s : u s e i n s t i t u t i o n a l p r o d u c t s a n d d o a v e n d o r r e v i e w / s e a r c h " F o r t h o s e s p o n s o r s t h a t h a v e c u s t o m t a r g e t d a t e f u n d s a n d c o r e o p t i o n s O v e r w e i g h t e m e r g i n g m a r k e t s T i l t f i x e d i n c o m e t o w a r d s c r e d i t E l i m i n a t e g l o b a l f i x e d i n c o m e I n v e s t i g a t e n e w e r d a i l y - v a l u e d a l t e r n a t i v e f u n d s N E P C A c t i o n s f o r D e f i n e d C o n t r i b u t i o n C l i e n t s 1 2
" N u m b e r a n d t y p e o f o p t i o n s C i r c l e d a r e t h e a s s e t c l a s s e s t y p i c a l l y o f f e r e d i n d e f i n e d c o n t r i b u t i o n p r o g r a m s 5 a s s e t c l a s s e s a l l o w s u f f i c i e n t d i v e r s i f i c a t i o n a n d i n s t i t u t i o n a l p r i c i n g E x p a n d t h e o p p o r t u n i t y s e t w i t h i n t h e t a r g e t d a t e f u n d s A c c e s s m o r e s o p h i s t i c a t e d o f f e r i n g s t h r o u g h b r o k e r a g e a n d / o r a d v i c e A c t i o n s f o r D e f i n e d C o n t r i b u t i o n C l i e n t s N E P C P l a n D e s i g n P h i l o s o p h y C a s h C o r e B o n d s T I P S H i g h Y i e l d E m e r g D e b t L g C a p E q S m / M i d C a p E q I n t l E q E m e r g i n g M a r k e t E q u i t y P r i v a t e E q u i t y P r i v a t e D e b t R e a l E s t a t e C o m m o d i t i e s H F L o w V o l H F M o d V o l 0 % 2 % 4 % 6 % 8 % 1 0 % 1 2 % 0 % 5 % 1 0 % 1 5 % 2 0 % 2 5 % 3 0 % 3 5 % R e t u r n % V o l a t i l i t y % N E P C 2 0 1 2 C a p i t a l M a r k e t F o r e c a s t s ( 5 - 7 Y e a r s ) 1 3
" T h e m e s f o r o u r c l i e n t s A c t i o n s f o r D e f i n e d C o n t r i b u t i o n C l i e n t s N E P C s V i e w o f B e s t P r a c t i c e s B e s t P r a c t i c e s C u r r e n t l y B e s t P r a c t i c e s 2 0 1 2 a n d B e y o n d S i m p l i f y t h e i n v e s t m e n t p r o g r a m C o m p l y w i t h r e g u l a t o r y r e q u i r e m e n t s ( 4 0 4 ( a ) ) O f f e r t a r g e t d a t e f u n d s D o a p l a n r e e n r o l l m e n t o r r e f r e s h A c c e s s i n s t i t u t i o n a l i n v e s t m e n t p r i c i n g B u i l d c u s t o m c o r e o p t i o n s a n d t a r g e t d a t e f u n d s A c c e s s b e s t r e c o r d k e e p i n g s e r v i c e s a n d p r i c i n g f o r y o u r p r o g r a m ( v e n d o r s e a r c h ) I n v e s t i g a t e n e w e r d a i l y - v a l u e d a l t e r n a t i v e f u n d s E n c o u r a g e s a v i n g s ( a u t o e n r o l l a n d a u t o i n c r e a s e ) R e v i s i t r e c o r d k e e p i n g d e l i v e r y m o d e l a n d p r i c i n g p h i l o s o p h y ( p r o r a t a v s . p e r c a p i t a f e e s ) C o n s i d e r i n c o m e s o l u t i o n s a n d p o s t - r e t i r e m e n t c h o i c e s 1 4
" S t a b l e v a l u e D o d d F r a n k R e f o r m A c t e n a c t e d i n J u l y 2 0 1 0 ; C F T C a n d S E C t o d e t e r m i n e i f w r a p c o n t r a c t s a r e s w a p s a n d i f s o , w h a t r e s e r v e a n d d i s c l o s u r e r e q u i r e m e n t s w i l l b e . C F T C a n d S E C s e e k c o m m e n t s f r o m m a r k e t p l a c e o n s t a b l e v a l u e c o n t r a c t s A u g u s t 1 9 , 2 0 1 1 . C o m m e n t p e r i o d h a s e n d e d b u t n o f i n a l g u i d a n c e h a s b e e n i s s u e d . " D e f i n i t i o n o f a f i d u c i a r y D O L p r o p o s e d u p d a t e d d e f i n i t i o n o f f i d u c i a r y a d v i c e a n d h e l d p u b l i c h e a r i n g i n M a r c h . D O L i n d i c a t e d i n S e p t e m b e r 2 0 1 1 i t w i l l r e - p r o p o s e r u l e i n 2 0 1 2 . " L i f e t i m e i n c o m e o p t i o n i n i t i a t i v e s D O L a n d T r e a s u r y h e l d j o i n t h e a r i n g s i n S e p t e m b e r 2 0 1 0 o n l i f e t i m e i n c o m e p r o d u c t s f o r r e t i r e m e n t s a v i n g s p l a n s . N o r e g u l a t o r y g u i d a n c e h a s b e e n i s s u e d t o d a t e . D O L e x p e c t e d t o i s s u e l i f e t i m e i n c o m e s t a t e m e n t p r o p o s a l i n 2 0 1 2 . " I n v e s t m e n t a d v i c e r e g u l a t i o n s P r o p o s e d r e g u l a t i o n s i s s u e d b y t h e D o L i n 2 0 0 9 a n d a g a i n i n 2 0 1 0 . F i n a l r u l e i s s u e d O c t o b e r 2 0 1 1 . " F e e d i s c l o s u r e r e g u l a t i o n s 4 0 8 ( b ) ( 2 ) i n t e r i m f i n a l r e g u l a t i o n s p u b l i s h e d i n J u l y 2 0 1 0 ; d e a d l i n e e x t e n d e d f r o m J u l y 1 6 , 2 0 1 1 t o A p r i l 1 , 2 0 1 2 . T h i s i s t h e r u l e r e g a r d i n g f e e d i s c l o s u r e s f r o m s e r v i c e p r o v i d e r s t o p l a n s p o n s o r s . O M B a p p r o v a l r e q u i r e d t o b e c o m e F i n a l . S e r v i c e p r o v i d e r s a r e p r e p a r i n g b u t d e a d l i n e c o u l d b e e x t e n d e d . 4 0 4 ( a ) r e g u l a t i o n p u b l i s h e d i n O c t o b e r 2 0 1 0 ; e f f e c t i v e a f t e r N o v e m b e r 1 , 2 0 1 1 . T h i s i s t h e r u l e r e g a r d i n g f e e d i s c l o s u r e s f r o m p l a n s p o n s o r s t o p l a n p a r t i c i p a n t s . I n c o n j u n c t i o n w i t h 4 0 8 ( b ) ( 2 ) r e g u l a t i o n , d e a d l i n e c o u l d b e e x t e n d e d . R e g u l a t o r y U p d a t e 1 5
Plan Reporting16
Due Diligence & RecommendationsInvestment OptionsPerformance (Recent Quarter)Changes/Announcements (Recent Quarter)NEPC Due Diligence Committee RecommendationsPlan RecommendationsVanguard Target Retirement Funds- Yes - No action recommendedVanguard LifeStrategy Funds- - Hold Consider AlternativesVanguard Prime Money Market---No action recommendedVanguard Retirement Savings Trust--WatchAll stable value funds remain on “watch” at NEPCVanguard Total Bond Market IndexBottom Quartile--No action recommendedVanguard Balanced Index---No action recommendedVanguard Windsor II---No action recommendedVanguard 500 Index---No action recommendedVanguard U.S. Growth---No action recommendedVanguard Mid Cap Index---No action recommendedVanguard Small Cap Index ---No action recommendedVanguard International GrowthTop Quartile--No action recommendedThe items below summarize the recent quarter’s performance and any changes or announcements from your Plan managers/funds. A “-” indicates there were no material announcements. A “Yes” indicates there was an announcement and a brief summary is provided separately. NEPC’s Due Diligence Committee meets every two weeks to review events as they relate to investment managers and determine if any action should be taken (by NEPC and/or by our clients). They rate events: No Action, Watch, Hold, Client Review or Terminate. NEPC’s Recommendation in view of the recent quarter’s developments (performance, manager events, and any of the longer-term trending data) is refreshed quarterly. NEPC considers ourselves to be a fiduciary, as ERISA defines the term in Section 3(21).17
Due Diligence & Recommendations – Cont’dNEPC Due Diligence Committee Recommendation KeyNo ActionInformational items have surfaced; no action is recommended.WatchIssues have surfaced to be concerned over; manager can participate in future searches, but current and prospectiveclients must be made aware of the issues.Hold Serious issues have surfaced to be concerned over; manager cannot be in future searches unless a clientspecifically requests, but current and prospective clients must be made aware of the issues.Client Review Very serious issues have surfaced with an Investment Manager; manager cannot be in future searches unless aclient specifically requests. Current clients must be advised to review the manager.Terminate We have lost all confidence in the product; manager would not be recommended for searches and clients would bediscouraged from using. The manager cannot be in future searches unless a client specifically requests. Currentclients must be advised to replace the manager.The following pages provide text commentary supporting our observations. A legend key to our recommendations is provided below.18
Changes/AnnouncementsBelow is a summary of manager changes and announcements since the issuance of our last quarterly report. Vanguard Target Retirement Funds•Vanguard is planning to introduce a new fund on the Vanguard Target Retirement Funds lineup in early 2012 and merge two funds with similar asset allocations. The series of low-cost, index-based funds will remain at 12.•On or after February 10, 2012, the Vanguard Target Retirement 2005 Fund is expected to merge with the Vanguard Target Retirement Income Fund as their asset allocations become nearly identical. The Target Retirement Funds are designed to reach an allocation of approximately 65% bonds, 30% stocks, and 5% short-term reserves within seven years after their target date. The 2005 Fund is closed to new investors, effective immediately.•Vanguard has also filed a registration statement with the U.S. Securities and Exchange Commission for the Vanguard Target Retirement 2060 Fund, which is aimed at investors who plan to retire and leave the workforce in or within a few years of 2060. •NEPC recommends No Action regarding the merger between Vanguard’s Retirement Income Fund and 2005 Fund.Due Diligence Commentary19
Asset SummaryPeriods EndingBeginning YearBeginning QuarterEnd Quarter31-Dec-11($000)(%)($000)(%)($000)(%)Composite$0$127$194 Lifecycle Options $00%$5544%$9549%Vanguard Target Retirement Income Inv$00%$33%$52%Vanguard Target Retirement 2020 Inv$00%$10%$11%Vanguard Target Retirement 2025 Inv$00%$1915%$2613%Vanguard Target Retirement 2030 Inv$00%$43%$63%Vanguard Target Retirement 2035 Inv$00%$65%$105%Vanguard Target Retirement 2040 Inv$00%$43%$105%Vanguard Target Retirement 2045 Inv$00%$1210%$2412%Vanguard Target Retirement 2050 Inv$00%$65%$137%Lifestyle Options$00%$129%$158%Vanguard LifeStrategy Income Inv$00%$11%$11%Vanguard LifeStrategy Cnsrv Gr Inv$00%$43%$53%Vanguard LifeStrategy Moderate Gr Inv$00%$22%$31%Vanguard LifeStrategy Growth Inv$00%$54%$73%Core Options $00%$6047%$8343%Vanguard Prime Money Market Inv$00%$00%$10%Vanguard Retirement Savings Trust$00%$43%$74%Vanguard Total Bond Market Index Inv$00%$86%$105%Vanguard Balanced Index Inv$00%$65%$74%Vanguard 500 Index Investor$00%$97%$126%Vanguard Windsor II Investor$00%$22%$42%Vanguard US Growth Inv$00%$21%$21%Vanguard Mid Cap Index Inv$00%$97%$126%Vanguard Small Cap Index Inv$00%$129%$179%Vanguard International Growth Inv$00%$87%$116%20
Performance Summary – Target Date and Lifestyle FundsNotes: Performance is net of fees and is annualized for periods longer than one year. Performance is ranked within Morningstar's style-specific universes, where "1" refers to the top percentile and "100" the bottom percentile. US OE = US open ended mutual fund.Weightin FundMorningstar UniverseLast QuarterRankLastYearRankThreeYearsRankFiveYearsRankTenYearsRank100.0% Total Plan$19449.0% Target Date Funds$952.4% Vanguard Target Retirement Income InvUS OE Retirement Income4.0575.299.6744.910 n/a$5Vanguard Target Income Composite Index 3.9 5.3 9.6 4.8 n/a0.5% Vanguard Target Retirement 2020 InvUS OE Target Date 2016-20206.7260.63211.9541.911 n/a$1Vanguard Target 2020 Composite Index 6.8 0.9 12.1 1.9 n/a13.5% Vanguard Target Retirement 2025 InvUS OE Target Date 2021-20257.434-0.41612.3591.318 n/a$26Vanguard Target 2025 Composite Index 7.4 0.0 12.6 1.3 n/a3.3% Vanguard Target Retirement 2030 InvUS OE Target Date 2026-20308.023-1.32212.7470.613 n/a$6Vanguard Target 2030 Composite Index 8.0 -0.9 12.9 0.6 n/a5.2% Vanguard Target Retirement 2035 InvUS OE Target Date 2031-20358.732-2.21913.0390.322 n/a$10Vanguard Target 2035 Composite Index 8.6 -1.9 13.2 0.3 n/a5.0% Vanguard Target Retirement 2040 InvUS OE Target Date 2036-20408.826-2.51912.9470.39 n/a$10Vanguard Target 2040 Composite Index 8.8 -2.1 13.2 0.2 n/a12.3% Vanguard Target Retirement 2045 InvUS OE Target Date 2041-20458.855-2.51412.9400.222 n/a$24Vanguard Target 2045 Composite Index 8.8 -2.1 13.2 0.2 n/a6.7% Vanguard Target Retirement 2050 InvUS OE Target Date 2050+8.846-2.51112.9430.28 n/a$13Vanguard Target 2050 Composite Index 8.8 -2.1 13.2 0.2 n/a7.9% Lifestyle Funds$150.6% Vanguard LifeStrategy Income InvUS OE Conservative Allocation2.9843.8158.3813.9174.728$1Vanguard Income Benchmark 3.1 5.1 8.1 4.8 5.5 2.5% Vanguard LifeStrategy Cnsrv Gr InvUS OE Conservative Allocation4.7341.8489.8632.7564.633$5Vanguard Conservative Growth Benchmark 4.7 2.6 9.0 3.0 5.2 1.3% Vanguard LifeStrategy Moderate Gr InvUS OE Moderate Allocation6.2670.34511.0631.5434.628$3Vanguard Moderate Growth Benchmark 6.5 1.4 10.1 1.4 5.1 3.4% Vanguard LifeStrategy Growth InvUS OE Aggressive Allocation7.941-2.33412.061-0.2534.134$7Vanguard Moderate Growth Benchmark 6.5 1.4 10.1 1.4 5.1Annualized ReturnsEndingMarket Value21
Performance Summary – Core FundsNotes: Performance is net of fees and is annualized for periods longer than one year. Performance is ranked within Morningstar's style-specific universes, where "1" refers to the top percentile and "100" the bottom percentile. US OE = US open ended mutual fund. Effective June 1,2010, Vanguard International Growth Fund changed their benchmark from MSCI EAFE to MSCI AC World Ex USA. Weightin FundMorningstar UniverseLast QuarterRankLastYearRankThreeYearsRankFiveYearsRankTenYearsRank100.0% Total Plan$1943.9% Capital Preservation Funds$80.3% Vanguard Prime Money Market InvUS Money Market Taxable0.0 0.0 0.2 1.7 2.0 $1BofAML US Treasury Bill 3 Mon 0.0 0.1 0.1 1.5 2.0 3.6% Vanguard Retirement Savings Trust 0.7 3.0 2.9 3.5 3.9 $7RL 3yr GIC 0.5 2.4 3.4 3.9 4.1 5.0% Fixed Income Funds$105.0% Vanguard Total Bond Market Index InvUS OE Intermediate-Term Bond0.9797.6156.6846.4355.541$10BarCap US Agg Bond TR USD 1.1 7.8 6.8 6.5 5.8 3.8% Balanced Funds$73.8% Vanguard Balanced Index InvUS OE Moderate Allocation7.7294.1712.2353.2114.923$760% S&P 500-40% BarCap Agg 7.5 4.7 11.6 2.8 4.4 9.3% Large Cap Equity Funds$182.0% Vanguard Windsor II InvestorUS OE Large Value12.8302.72413.030-1.4374.226$4Russell 1000 Value TR USD13.1 0.4 11.5 -2.6 3.9 6.3%Vanguard 500 Index InvestorUS OE Large Blend11.8342.01914.029-0.3322.839$12S&P 500 TR11.8 2.1 14.1 -0.2 2.9 1.1% Vanguard US Growth InvUS OE Large Growth9.750-0.73614.3580.5520.092$2Russell 1000 Growth TR USD 10.6 2.6 18.0 2.5 2.6 15.3% Small/Mid Cap Equity Funds$306.3% Vanguard Mid Cap Index InvUS OE Mid-Cap Blend12.168-2.13419.9231.2396.623$12MSCI US Mid Cap 450 GR USD 12.1 -1.9 20.1 1.4 6.9 9.0% Vanguard Small Cap Index InvUS OE Small Blend15.064-2.84419.1221.8296.635$17MSCI US Small Cap 1750 GR USD 15.0 -2.8 19.2 1.8 7.0 5.7% International Equity Funds$115.7% Vanguard International Growth InvUS OE Foreign Large Blend6.016-13.74712.29-2.0145.618$11MSCI ACWI Ex USA NR USD 3.7 -13.7 10.7 -2.9 6.3 Annualized ReturnsEndingMarket Value22
Active vs. Passive PerformanceDomestic Large CapDomestic Small Cap= Universe Fund Outperforms= Index OutperformsData as of 12/31/20111 YearRank3 YearsRank5 YearsRank10 YearsRankTop Quartile US Small Cap Value-1.82518.5251.8258.125Median US Small Cap Value-4.15016.2500.4507.150Russell 2000 Value Index-5.56412.490-1.9816.467Top Quartile minus Index3.76.13.61.7Median minus Index1.53.82.30.7Fund count3663513302332011Rank2010Rank2009Rank2008RankTop Quartile US Small Cap Value-1.82527.82537.225-27.825Median US Small Cap Value-4.15025.55030.650-31.850Russell 2000 Value Index-5.5 64 24.5 67 20.6 88 -28.9 33Top Quartile minus Index3.73.316.61.2Median minus Index1.41.010.0-2.9Fund count366355351345Morningstar US Small Cap Value UniverseAnnualized PerformanceCalendar Year Performance1 YearRank3 YearsRank5 YearsRank10 YearsRankTop Quartile US Large Cap Growth0.52517.0252.3253.425Median US Large Cap Growth-2.05014.9500.6502.350Russell 1000 Growth Index2.61018.0162.5222.644Top Quartile minus Index-2.2-1.1-0.20.8Median minus Index-4.6-3.1-1.9-0.3Fund count17161639156212722011Rank2010Rank2009Rank2008RankTop Quartile US Large Cap Growth0.52518.72541.425-37.425Median US Large Cap Growth-2.05015.55034.750-40.350Russell 1000 Growth Index2.6 10 16.7 39 37.2 38 -38.4 35Top Quartile minus Index-2.22.0 4.2 1.0Median minus Index-4.6-1.2-2.6-1.8Fund count1716167816391608Morningstar US Large Cap Growth UniverseAnnualized PerformanceCalendar Year Performance1 YearRank3 YearsRank5 YearsRank10 YearsRankTop Quartile US Large Cap Value2.32513.425-0.3254.425Median US Large Cap Value-0.95011.750-2.1503.450Russell 1000 Value Index0.43811.653-2.6603.937Top Quartile minus Index2.01.82.30.5Median minus Index-1.30.1 0.6-0.5Fund count1285124211749282011Rank2010Rank2009Rank2008RankTop Quartile US Large Cap Value2.32515.42527.525-33.725Median US Large Cap Value-0.95013.45023.550-36.250Russell 1000 Value Index0.4 38 15.5 24 19.7 68 -36.8 57Top Quartile minus Index2.0-0.17.8 3.1Median minus Index-1.3-2.13.90.6Fund count1285124712421210Morningstar US Large Cap Value UniverseAnnualized PerformanceCalendar Year Performance1 YearRank3 YearsRank5 YearsRank10 YearsRankTop Quartile US Small Cap Growth-0.52521.3253.0255.825Median US Small Cap Growth-3.35018.6501.6504.450Russell 2000 Growth Index-2.94619.0452.1414.550Top Quartile minus Index2.52.31.01.3Median minus Index-0.3-0.4-0.5-0.1Fund count7847537045772011Rank2010Rank2009Rank2008RankTop Quartile US Small Cap Growth-0.52531.42542.225-38.225Median US Small Cap Growth-3.35027.25035.350-40.850Russell 2000 Growth Index-2.9 46 29.1 36 34.5 53 -38.5 28Top Quartile minus Index2.52.37.70.3Median minus Index-0.3-1.90.8-2.3Fund count784761749725Annualized PerformanceCalendar Year PerformanceMorningstar US Small Cap Growth Universe23
1 YearRank3 YearsRank5 YearsRank10 YearsRankTop Quartile Foreign Large Blend-12.1259.625-3.2255.225Median Foreign Large Cap Blend-13.9507.950-4.6504.350MSCI EAFE Index-12.1267.752-4.7524.739Top Quartile minus Index0.12.01.50.6Median minus Index-1.80.2 0.1-0.4Fund count832 800 673 5172011Rank2010Rank2009Rank2008RankTop Quartile Foreign Large Blend-12.12512.62537.025-41.925Median Foreign Large Cap Blend-13.95010.25031.750-43.950MSCI EAFE Index-12.1 26 7.8 73 31.8 49 -43.4 45Top Quartile minus Index0.14.85.31.5Median minus Index-1.82.4-0.1 -0.5Fund count832812800731Annualized PerformanceCalendar Year PerformanceMorningstar Foreign Large Cap Blend Universe vs. MSCI EAFEActive vs. Passive PerformanceForeign Large BlendCore Fixed IncomeData as of 12/31/20111 YearRank3 YearsRank5 YearsRank10 YearsRankTop Quartile Foreign Large Blend-12.1259.625-3.2255.225Median Foreign Large Cap Blend-13.9507.950-4.6504.350MSCI ACWI ex US Index-13.74710.717-2.9226.311Top Quartile minus Index1.7-1.1 -0.3 -1.1Median minus Index-0.2-2.8-1.7-2.1Fund count8328006735172011Rank2010Rank2009Rank2008RankTop Quartile Foreign Large Blend-12.12512.62537.025-41.925Median Foreign Large Cap Blend-13.95010.25031.750-43.950MSCI ACWI ex US Index-13.7 47 11.2 40 41.5 13 -45.5 68Top Quartile minus Index1.71.4-4.43.7Median minus Index-0.2-1.0-9.81.6Fund count832812800731Annualized PerformanceCalendar Year PerformanceMorningstar Foreign Large Cap Blend Universe vs. MSCI ACWI ex US= Universe Fund Outperforms= Index Outperforms1 YearRank3 YearsRank5 YearsRank10 YearsRankTop Quartile Intermediate Term Bond7.12510.9256.7255.825Median Intermediate Term Bond6.3508.9506.0505.350BarCap US Aggregate Index7.8106.8816.5305.828Top Quartile minus Index-0.74.2 0.2 0.0Median minus Index-1.52.2-0.6 -0.5Fund count1221 1124 1061 9232011Rank2010Rank2009Rank2008RankTop Quartile Intermediate Term Bond7.1259.02518.1252.625Median Intermediate Term Bond6.3507.55013.450-2.950BarCap US Aggregate Index7.8 10 6.5 72 5.9 90 5.2 10Top Quartile minus Index-0.72.4 12.2-2.6Median minus Index-1.51.0 7.4-8.2Fund count1221115411241095Annualized PerformanceCalendar Year PerformanceMorningstar Intermediate Term Bond Universe 24
3 0 . 0 2 0 . 0 1 0 . 0 0 . 0 1 0 . 0 2 0 . 0 3 0 . 0 4 0 . 0 5 0 . 0 6 0 . 0 4 . 0 2 . 0 0 . 0 2 . 0 4 . 0 6 . 0 8 . 0 G o l d m a n � S a c h s � R e t i r e m e n t � S t r � 2 0 1 0 � A A l l i a n c e B e r n � 2 0 1 0 � R e t i r e m e n t � S t r a t � A W e l l i n g t o n � T r u s t � T a r g e t � 2 0 1 0 N a t i o n w i d e � D e s t i n a t i o n � 2 0 1 0 � A O p p e n h e i m e r � T r a n s i t i o n � 2 0 1 0 � A M a n n i n g � & � N a p i e r � T a r g e t � 2 0 1 0 � C A l l i a n c e B e r n � 2 0 0 5 � R e t i r e m e n t � S t r a t � A F i d e l i t y � A d v i s o r � F r e e d o m � 2 0 1 0 � A J H a n c o c k 2 � L i f e c y c l e � 2 0 1 0 � A F i d e l i t y � F r e e d o m � 2 0 1 0 F i d e l i t y � A d v i s o r � F r e e d o m � 2 0 0 5 � A F i d e l i t y � F r e e d o m � 2 0 0 5 W e l l i n g t o n � T r u s t � T a r g e t � 2 0 0 0 T . � R o w e � P r i c e � R e t i r e m e n t � 2 0 1 0 H a r t f o r d � T a r g e t � R e t i r e m e n t � 2 0 1 0 � A M a s s M u t u a l � R e t i r e S M A R T � 2 0 1 0 � A J P M o r g a n � C o m m i n g l e d � P e n s i o n � S r � I n c � C � C l J P M o r g a n � S m a r t R e t i r e m e n t � 2 0 1 0 � A A l l i a n c e B e r n � 2 0 0 0 � R e t i r e m e n t � S t r a t � A T . � R o w e � P r i c e � � R e t i r e m e n t � 2 0 1 0 � T r u s t P r i n c i p a l � L i f e T i m e � 2 0 1 0 � I n s t l M a i n S t a y � R e t i r e m e n t � 2 0 1 0 � A S c h w a b � M a n a g e d � R e t i r e m e n t � T r � F d � 2 0 1 0 � I I I V a n t a g e p o i n t � M i l e s t o n e � 2 0 1 0 T . � R o w e � P r i c e � R e t i r e m e n t � 2 0 0 5 T I A A C R E F � L i f e c y c l e � 2 0 1 0 � R e t i r e T . � R o w e � P r i c e � � R e t i r e m e n t � 2 0 0 5 � T r u s t C o l u m b i a � R e t i r e m e n t � P l u s � 2 0 1 0 � A J P M C B � S m a r t R e t i r e m t � P a s s i v e � B l e n d � I n c o m e F i d e l i t y � F r e e d o m � 2 0 0 0 J P M o r g a n � C o m m i n g l e d � P e n s i o n � S r 2 0 1 0 � C � C l H a r b o r � T a r g e t � R e t i r e m e n t � 2 0 1 0 � I n s t l G u i d e S t o n e � F u n d s � M y D e s t i n a t i o n � 2 0 0 5 � G S 4 S c h w a b � T a r g e t � 2 0 1 0 A m e r i c a n � I n d e p � N e s t E g g � A M F S � L i f e t i m e � 2 0 1 0 � A T I A A C R E F � L i f e c y c l e � I n d e x � 2 0 1 0 � I n s t A m e r i c a n � F u n d s � T r g t � D a t e � R e t � 2 0 1 0 � A V a n g u a r d � T a r g e t � R e t i r e m e n t � 2 0 1 0 � I n v P I M C O � R e a l R e t i r e m e n t � I n c & D i s t r b t n � A T h e � V a n g u a r d � T a r g e t � R e t i r e � 2 0 1 0 � C I T W e l l s � F a r g o � A d v a n t a g e � D J � T a r g e t � 2 0 1 0 � A V a n g u a r d � T a r g e t � R e t i r e m e n t � 2 0 0 5 � I n v T h e � V a n g u a r d � T a r g e t � R e t i r e � 2 0 0 5 � I J H F u n d s 2 � R e t i r e m e n t � 2 0 1 0 � P o r t f o l i o � 1 S S g A � T a r g e t � R e t i r e m e n t � 2 0 1 0 � F u n d � C l a s s � I M e d i a n S & P � T a r g e t � D a t e � 2 0 1 0 � I n d e x E q u i t y � A l l o c a t i o n ( % ) 1 � Y e a r � R e t u r n � ( % ) M o r n i n g s t a r � T a r g e t � D a t e � 2 0 0 0 � t o � 2 0 1 0 � U n i v e r s e : � 1 � Y r � R e t u r n � v s � E q u i t y � A l l o c a t i o n s � ( % ) O n e � Y e a r � � R e t u r n � ( % ) E q u i t y � A l l o c a t i o n � ( % ) T a r g e t D a t e F u n d P e r f o r m a n c e , 1 Y e a r N e a r - D a t e d F u n d s O n e y e a r a n n u a l i z e d r e t u r n s a r e s h o w n b e l o w f o r t h e 3 5 d i s t i n c t m u t u a l f u n d s w i t h i n M o r n i n g s t a r s T a r g e t D a t e 2 0 0 0 t o 2 0 1 0 U n i v e r s e p l u s 1 1 c o l l e c t i v e t r u s t s . T h e m e d i a n r e t u r n w a s 1 . 3 4 % . 2 5
Target Date Fund Performance, 1 Year Far-Dated FundsOne year annualized returns are shown below for the 38 distinct mutual funds within Morningstar’s Target Date 2036 to 2040 Universe plus 7 collective trusts. The median return was -3.77%. ‐10.00.010.020.030.040.050.060.070.080.090.0100.0‐10.0‐9.0‐8.0‐7.0‐6.0‐5.0‐4.0‐3.0‐2.0‐1.00.01.0Manning & Napier Target 2040 CWellington Trust Target 2040AllianceBern 2040 Retirement Strat AOppenheimer Transition 2040 AGoldman Sachs Retirement Str 2040 ARussell LifePoints 2040 Strategy R3DWS LifeCompass 2040 AJHancock2 Lifecycle 2040 AJPMorgan SmartRetirement 2040 AAllianz Glbl Inv Solutions 2040 AHarbor Target Retirement 2040 InstlJPMorgan Commingled Pension Sr2040 C ClFidelity Advisor Freedom 2040 AFidelity Freedom 2040Nationwide Destination 2040 AAmerican Indep NestEgg 2040 ISchwab Managed Retirement Tr Fd 2040 IIIMassMutual RetireSMART 2040 AWells Fargo Advantage DJ Target 2040 AMFS Lifetime 2040 APutnam RetirementReady 2040 ATIAA‐CREF Lifecycle 2040 RetireUSAA Target Retirement 2040T. Rowe Price Retirement 2040Principal LifeTime 2040 InstlJPMCB SmartRetiremt Passive Blend 2040MainStay Retirement 2040 ALegg Mason Target Retirement 2040 AHartford Target Retirement 2040 R3BlackRock Lifecycle Prepared 2040 Inv AState Farm LifePath 2040 Legacy AVantagepoint Milestone 2040American Funds Trgt Date Ret 2040 AVanguard Target Retirement 2040 InvT. Rowe Price ‐ Retirement 2040 TrustFidelity Freedom Index 2040 WThe Vanguard Target Retire 2040 CITBlackRock LifePath 2040 InstitutionalPIMCO RealRetirement 2040 AColumbia Retirement Plus 2040 ASchwab Target 2040TIAA‐CREF Lifecycle Index 2040 InstJHFunds2 Retirement 2040 Portfolio 1American Century LIVESTRONG 2040 ASSgA Target Retirement 2040 Fund Class IMedianS&P Target Date 2040 IndexEquity Allocation (%)1 Year Return (%)Morningstar Target Date 2036 to 2040 Universe: 1 Yr Return vs Equity Allocations (%)One Year Return (%)Equity Allocation (%)0.026
Target Date Fund Performance, 3 Year Near-Dated FundsThree year annualized returns are shown below for the 32 distinct mutual funds within Morningstar’s Target Date 2000 to 2010 Universe plus 11 collective trusts. The median return was 11.11%. 0.010.020.030.040.050.060.00.02.04.06.08.010.012.014.016.0JPMorgan Commingled Pension Sr Inc C ClAmerican Indep NestEgg AWells Fargo Advantage DJ Target 2010 ANationwide Destination 2010 AFidelity Freedom 2000Manning & Napier Target 2010 CVantagepoint Milestone 2010JPMCB SmartRetiremt Passive Blend IncomeSchwab Target 2010Wellington Trust Target 2000Vanguard Target Retirement 2005 InvColumbia Retirement Plus 2010 AThe Vanguard Target Retire 2005 IGoldman Sachs Retirement Str 2010 ATIAA‐CREF Lifecycle 2010 RetireOppenheimer Transition 2010 AWellington Trust Target 2010AllianceBern 2000 Retirement Strat AMainStay Retirement 2010 ASchwab Managed Retirement Tr Fd 2010 IIIFidelity Freedom 2005JPMorgan Commingled Pension Sr2010 C ClVanguard Target Retirement 2010 InvFidelity Advisor Freedom 2005 AThe Vanguard Target Retire 2010 CITGuideStone Funds MyDestination 2005 GS4SSgA Target Retirement 2010 Fund Class IJPMorgan SmartRetirement 2010 AMFS Lifetime 2010 AFidelity Freedom 2010PIMCO RealRetirement Inc&Distrbtn AAmerican Funds Trgt Date Ret 2010 AMassMutual RetireSMART 2010 AAllianceBern 2005 Retirement Strat AFidelity Advisor Freedom 2010 AT. Rowe Price Retirement 2005T. Rowe Price ‐ Retirement 2005 TrustAllianceBern 2010 Retirement Strat APrincipal LifeTime 2010 InstlT. Rowe Price Retirement 2010Hartford Target Retirement 2010 AT. Rowe Price ‐ Retirement 2010 TrustJHancock2 Lifecycle 2010 AMedianS&P Target Date 2010 IndexEquity Allocation(%)3 Yr Annualized Return (%)Morningstar Target Date 2000 to 2010 Universe: 3 Yr Annualized Returns vs Equity Allocations (%)3 Year Annualized Return (%)Equity Allocation (%)27
Target Date Fund Performance, 3 Year Far-Dated FundsThree year annualized returns are shown below for the 34 distinct mutual funds within Morningstar’s Target Date 2036 to 2040 Universe plus 7 collective trusts. The median return was 12.09%. 0.010.020.030.040.050.060.070.080.090.0100.00.02.04.06.08.010.012.014.016.018.0Columbia Retirement Plus 2040 AGoldman Sachs Retirement Str 2040 AAmerican Indep NestEgg 2040 IWellington Trust Target 2040AllianceBern 2040 Retirement Strat ADWS LifeCompass 2040 AState Farm LifePath 2040 Legacy AManning & Napier Target 2040 CRussell LifePoints 2040 Strategy R3JPMCB SmartRetiremt Passive Blend 2040BlackRock LifePath 2040 InstitutionalMainStay Retirement 2040 ABlackRock Lifecycle Prepared 2040 Inv ANationwide Destination 2040 ATIAA‐CREF Lifecycle 2040 RetireAmerican Century LIVESTRONG 2040 ALegg Mason Target Retirement 2040 AFidelity Freedom 2040JPMorgan Commingled Pension Sr2040 C ClPutnam RetirementReady 2040 AVanguard Target Retirement 2040 InvSchwab Managed Retirement Tr Fd 2040 IIIAmerican Funds Trgt Date Ret 2040 AThe Vanguard Target Retire 2040 CITPrincipal LifeTime 2040 InstlSchwab Target 2040Vantagepoint Milestone 2040Fidelity Advisor Freedom 2040 AHartford Target Retirement 2040 R3MassMutual RetireSMART 2040 AWells Fargo Advantage DJ Target 2040 AJPMorgan SmartRetirement 2040 AOppenheimer Transition 2040 AJHancock2 Lifecycle 2040 ASSgA Target Retirement 2040 Fund Class IUSAA Target Retirement 2040Allianz Glbl Inv Solutions 2040 APIMCO RealRetirement 2040 AMFS Lifetime 2040 AT. Rowe Price ‐ Retirement 2040 TrustT. Rowe Price Retirement 2040MedianS&P Target Date 2040 IndexEquity Allocation (%)3 Year Annualized Return (%)Morningstar Target Date 2036 to 2040 Universe: 3 Yr Annualized Returns vs Equity Allocations (%)3 Year Annualized Return (%)Equity Allocation (%)28
Appendix29
Vanguard Target Retirement Income Inv
VTINX
Vanguard Target Income Composite Index
Risk & Return Illustration (3 Years)
Time Period: 1/1/2009 to 12/31/2011
ReturnStd Dev
0.0 2.0 4.0 6.0 8.0
0.0
2.0
4.0
6.0
8.0
10.0
12.0 Vanguard Target Retirement Income Inv
Vanguard Target Income Composite Index
Rolling Risk (3 Years)
Top Quartile 2nd Quartile 3rd Quartile Bottom Quartile
Std Dev12 03 06 09 12
2008
03 06 09 12
2009
03 06 09 12
2010
03 06 09 12
2011
03 06 09 12
0.0
5.0
10.0
15.0
20.0
25.0
Vanguard Target Retirement Income Inv Vanguard Target Income Composite Index
Rolling Returns (3 Years)
Top Quartile 2nd Quartile 3rd Quartile Bottom Quartile
Return12 03 06 09 12
2008
03 06 09 12
2009
03 06 09 12
2010
03 06 09 12
2011
03 06 09 12
-10.0
-5.0
0.0
5.0
10.0
15.0
Vanguard Target Retirement Income Inv Vanguard Target Income Composite Index
Top 10 Holdings
Portfolio Date: 9/30/2011
Broad
Category
Return
Qtr
Return
YTD
Portfolio
Weighting %
Vanguard Total Bond Market II Idx Inv
Vanguard Total Stock Mkt Idx Inv
Vanguard Inflation-Protected Secs Inv
Vanguard Total Intl Stock Index Inv
Vanguard Prime Money Market Inv
CMT Market Liquidity Rate
Fixed Income 1.0 7.6 45.4
Equity 12.1 1.0 20.7
Fixed Income 2.6 13.2 20.0
Equity 4.2 -14.6 8.8
Money Market 0.0 0.0 5.0
0.0
Calendar Year Returns
2002 Rank 2003 Rank 2004 Rank 2005 Rank 2006 Rank 2007 Rank 2008 Rank 2009 Rank 2010 Rank 2011 Rank
Vanguard Target Retirement Income Inv
Vanguard Target Income Composite Index
6.8 35 3.3 48 6.4 56 8.2 1 -10.9 6 14.3 80 9.4 42 5.2 9
6.9 3.4 6.5 8.1 -11.4 14.3 9.4 5.3
Source: Morningstar Direct 30
Vanguard Target Retirement 2025 Inv
VTTVX
Vanguard Target 2025 Composite Index
Risk & Return Illustration (3 Years)
Time Period: 1/1/2009 to 12/31/2011
ReturnStd Dev
0.0 3.0 6.0 9.0 12.0 15.0 18.0 21.0
0.0
2.0
4.0
6.0
8.0
10.0
12.0
14.0 Vanguard Target Retirement 2025 Inv
Vanguard Target 2025 Composite Index
Rolling Risk (3 Years)
Top Quartile 2nd Quartile 3rd Quartile Bottom Quartile
Std Dev12 03 06 09 12
2008
03 06 09 12
2009
03 06 09 12
2010
03 06 09 12
2011
03 06 09 12
0.0
5.0
10.0
15.0
20.0
25.0
30.0
Vanguard Target Retirement 2025 Inv Vanguard Target 2025 Composite Index
Rolling Returns (3 Years)
Top Quartile 2nd Quartile 3rd Quartile Bottom Quartile
Return12 03 06 09 12
2008
03 06 09 12
2009
03 06 09 12
2010
03 06 09 12
2011
03 06 09 12
-15.0
-10.0
-5.0
0.0
5.0
10.0
15.0
Vanguard Target Retirement 2025 Inv Vanguard Target 2025 Composite Index
Top 10 Holdings
Portfolio Date: 9/30/2011
Broad
Category
Return
Qtr
Return
YTD
Portfolio
Weighting %
Vanguard Total Stock Mkt Idx Inv
Vanguard Total Bond Market II Idx Inv
Vanguard Total Intl Stock Index Inv
CMT Market Liquidity Rate
Equity 12.1 1.0 50.9
Fixed Income 1.0 7.6 27.4
Equity 4.2 -14.6 21.7
0.0
Calendar Year Returns
2002 Rank 2003 Rank 2004 Rank 2005 Rank 2006 Rank 2007 Rank 2008 Rank 2009 Rank 2010 Rank 2011 Rank
Vanguard Target Retirement 2025 Inv
Vanguard Target 2025 Composite Index
10.1 1 5.4 94 13.2 45 7.6 41 -30.1 15 24.8 78 13.8 37 -0.4 16
10.1 5.5 13.4 7.6 -30.5 25.1 13.9 0.0
Source: Morningstar Direct 31
Vanguard Target Retirement 2035 Inv
VTTHX
Vanguard Target 2035 Composite Index
Risk & Return Illustration (3 Years)
Time Period: 1/1/2009 to 12/31/2011
ReturnStd Dev
0.0 4.0 8.0 12.0 16.0 20.0 24.0
0.0
3.0
6.0
9.0
12.0
15.0 Vanguard Target Retirement 2035 Inv
Vanguard Target 2035 Composite Index
Rolling Risk (3 Years)
Top Quartile 2nd Quartile 3rd Quartile Bottom Quartile
Std Dev12 03 06 09 12
2008
03 06 09 12
2009
03 06 09 12
2010
03 06 09 12
2011
03 06 09 12
5.0
10.0
15.0
20.0
25.0
30.0
Vanguard Target Retirement 2035 Inv Vanguard Target 2035 Composite Index
Rolling Returns (3 Years)
Top Quartile 2nd Quartile 3rd Quartile Bottom Quartile
Return12 03 06 09 12
2008
03 06 09 12
2009
03 06 09 12
2010
03 06 09 12
2011
03 06 09 12
-22.5
-15.0
-7.5
0.0
7.5
15.0
22.5
Vanguard Target Retirement 2035 Inv Vanguard Target 2035 Composite Index
Top 10 Holdings
Portfolio Date: 9/30/2011
Broad
Category
Return
Qtr
Return
YTD
Portfolio
Weighting %
Vanguard Total Stock Mkt Idx Inv
Vanguard Total Intl Stock Index Inv
Vanguard Total Bond Market II Idx Inv
CMT Market Liquidity Rate
Equity 12.1 1.0 61.5
Equity 4.2 -14.6 26.3
Fixed Income 1.0 7.6 12.1
0.0
Calendar Year Returns
2002 Rank 2003 Rank 2004 Rank 2005 Rank 2006 Rank 2007 Rank 2008 Rank 2009 Rank 2010 Rank 2011 Rank
Vanguard Target Retirement 2035 Inv
Vanguard Target 2035 Composite Index
12.0 1 6.3 94 15.2 24 7.5 47 -34.7 13 28.2 64 15.1 26 -2.2 19
11.9 6.5 15.4 7.5 -35.1 28.5 15.2 -1.9
Source: Morningstar Direct 32
Vanguard Target Retirement 2045 Inv
VTIVX
Vanguard Target 2045 Composite Index
Risk & Return Illustration (3 Years)
Time Period: 1/1/2009 to 12/31/2011
ReturnStd Dev
0.0 4.0 8.0 12.0 16.0 20.0 24.0
0.0
3.0
6.0
9.0
12.0
15.0 Vanguard Target Retirement 2045 Inv
Vanguard Target 2045 Composite Index
Rolling Risk (3 Years)
Top Quartile 2nd Quartile 3rd Quartile Bottom Quartile
Std Dev12 03 06 09 12
2008
03 06 09 12
2009
03 06 09 12
2010
03 06 09 12
2011
03 06 09 12
5.0
10.0
15.0
20.0
25.0
30.0
Vanguard Target Retirement 2045 Inv Vanguard Target 2045 Composite Index
Rolling Returns (3 Years)
Top Quartile 2nd Quartile 3rd Quartile Bottom Quartile
Return12 03 06 09 12
2008
03 06 09 12
2009
03 06 09 12
2010
03 06 09 12
2011
03 06 09 12
-22.5
-15.0
-7.5
0.0
7.5
15.0
22.5
Vanguard Target Retirement 2045 Inv Vanguard Target 2045 Composite Index
Top 10 Holdings
Portfolio Date: 9/30/2011
Broad
Category
Return
Qtr
Return
YTD
Portfolio
Weighting %
Vanguard Total Stock Mkt Idx Inv
Vanguard Total Intl Stock Index Inv
Vanguard Total Bond Market II Idx Inv
CMT Market Liquidity Rate
Equity 12.1 1.0 62.8
Equity 4.2 -14.6 27.0
Fixed Income 1.0 7.6 10.2
0.0
Calendar Year Returns
2002 Rank 2003 Rank 2004 Rank 2005 Rank 2006 Rank 2007 Rank 2008 Rank 2009 Rank 2010 Rank 2011 Rank
Vanguard Target Retirement 2045 Inv
Vanguard Target 2045 Composite Index
12.9 1 6.9 100 16.0 46 7.5 41 -34.6 11 28.2 83 15.2 40 -2.5 14
11.9 7.0 16.2 7.5 -35.1 28.5 15.2 -2.1
Source: Morningstar Direct 33
Vanguard LifeStrategy Income Inv
VASIX
Vanguard Income Custom Benchmark
Risk & Return Illustration (5 Years)ReturnStd Dev
0.0 1.0 2.0 3.0 4.0 5.0 6.0 7.0
0.0
1.0
2.0
3.0
4.0
5.0
6.0 Vanguard LifeStrategy Income Inv
Vanguard Income Custom Benchmark
Rolling 3 Year Risk
Top Quartile 2nd Quartile 3rd Quartile Bottom Quartile
Std Dev2005 2006 2007 2008 2009 2010 2011
0.0
5.0
10.0
15.0
20.0
25.0
Vanguard LifeStrategy Income Inv Vanguard Income Custom Benchmark
Rolling 3 Year Return
Top Quartile 2nd Quartile 3rd Quartile Bottom Quartile
Return2005 2006 2007 2008 2009 2010 2011
-10.0
-5.0
0.0
5.0
10.0
15.0
20.0
Vanguard LifeStrategy Income Inv Vanguard Income Custom Benchmark
Asset Allocation
Portfolio Date: 9/30/2011
%
Stock 20.0
Bond 71.2
Cash 7.9
Other 0.9
Total 100.0
Calendar Year Returns
2002 Rank 2003 Rank 2004 Rank 2005 Rank 2006 Rank 2007 Rank 2008 Rank 2009 Rank 2010 Rank 2011 Rank
Vanguard LifeStrategy Income Inv
Vanguard Income Custom Benchmark
0.1 21 10.8 66 6.0 49 3.2 53 7.9 49 6.7 16 -10.5 11 12.1 92 9.2 66 3.8 15
9.4 7.6 5.1 2.8 6.3 6.2 -5.8 11.2 8.1 5.1
Source: Morningstar Direct
34
Vanguard LifeStrategy Cnsrv Gr Inv
VSCGX
Vanguard Conservative Growth Custom Benchmark
Risk & Return Illustration (5 Years)ReturnStd Dev
0.0 2.0 4.0 6.0 8.0 10.0 12.0
0.0
1.0
2.0
3.0
4.0 Vanguard LifeStrategy Cnsrv Gr Inv
Vanguard Conservative Growth Custom Benchmark
Rolling 3 Year Risk
Top Quartile 2nd Quartile 3rd Quartile Bottom Quartile
Std Dev2005 2006 2007 2008 2009 2010 2011
0.0
5.0
10.0
15.0
20.0
25.0
Vanguard LifeStrategy Cnsrv Gr Inv Vanguard Conservative Growth Custom Benchmark
Rolling 3 Year Return
Top Quartile 2nd Quartile 3rd Quartile Bottom Quartile
Return2005 2006 2007 2008 2009 2010 2011
-10.0
-5.0
0.0
5.0
10.0
15.0
20.0
Vanguard LifeStrategy Cnsrv Gr Inv Vanguard Conservative Growth Custom Benchmark
Vanguard LifeStrategy Cnsrv Gr Inv - Asset Allocation
Portfolio Date: 9/30/2011
%
Stock 38.9
Bond 52.0
Cash 7.7
Other 1.4
Total 100.0
Calendar Year Returns
2002 Rank 2003 Rank 2004 Rank 2005 Rank 2006 Rank 2007 Rank 2008 Rank 2009 Rank 2010 Rank 2011 Rank
Vanguard LifeStrategy Cnsrv Gr Inv
Vanguard Conservative Growth Custom Benchmark
-5.4 71 16.6 20 8.0 13 4.5 18 10.6 12 7.0 13 -19.5 54 17.1 75 11.1 32 1.8 48
7.0 11.7 6.7 3.6 8.6 5.9 -15.6 15.4 9.5 2.6
Source: Morningstar Direct
35
Vanguard LifeStrategy Moderate Gr Inv
VSMGX
Vanguard Moderate Growth Custom Benchmark
Risk & Return Illustration (5 Years)ReturnStd Dev
0.0 3.0 6.0 9.0 12.0 15.0 18.0
0.0
0.3
0.6
0.9
1.2
1.5
1.8 Vanguard LifeStrategy Moderate Gr Inv
Vanguard Moderate Growth Custom Benchmark
Rolling 3 Year Risk
Top Quartile 2nd Quartile 3rd Quartile Bottom Quartile
Std Dev2005 2006 2007 2008 2009 2010 2011
0.0
5.0
10.0
15.0
20.0
25.0
Vanguard LifeStrategy Moderate Gr Inv Vanguard Moderate Growth Custom Benchmark
Rolling 3 Year Return
Top Quartile 2nd Quartile 3rd Quartile Bottom Quartile
Return2005 2006 2007 2008 2009 2010 2011
-15.0
-10.0
-5.0
0.0
5.0
10.0
15.0
20.0
Vanguard LifeStrategy Moderate Gr Inv Vanguard Moderate Growth Custom Benchmark
Vanguard LifeStrategy Moderate Gr Inv - Asset Allocation
Portfolio Date: 9/30/2011
%
Stock 58.7
Bond 34.3
Cash 5.4
Other 1.6
Total 100.0
Calendar Year Returns
2002 Rank 2003 Rank 2004 Rank 2005 Rank 2006 Rank 2007 Rank 2008 Rank 2009 Rank 2010 Rank 2011 Rank
Vanguard LifeStrategy Moderate Gr Inv
Vanguard Moderate Growth Custom Benchmark
-10.3 36 22.4 29 10.6 25 5.7 37 13.3 17 7.4 31 -26.5 35 20.3 74 13.3 24 0.3 45
4.5 16.0 8.8 4.4 10.9 5.7 -23.9 18.3 11.2 1.4
Source: Morningstar Direct
36
Vanguard LifeStrategy Growth Inv
VASGX
Vanguard Growth Custom Benchmark
Risk & Return Illustration (5 Years)ReturnStd Dev
0.0 4.0 8.0 12.0 16.0 20.0 24.0
-0.8
-0.6
-0.4
-0.2
-0.0 Vanguard LifeStrategy Growth Inv
Vanguard Growth Custom Benchmark
Rolling 3 Year Risk
Top Quartile 2nd Quartile 3rd Quartile Bottom Quartile
Std Dev2005 2006 2007 2008 2009 2010 2011
0.0
5.0
10.0
15.0
20.0
25.0
30.0
Vanguard LifeStrategy Growth Inv Vanguard Growth Custom Benchmark
Rolling 3 Year Return
Top Quartile 2nd Quartile 3rd Quartile Bottom Quartile
Return2005 2006 2007 2008 2009 2010 2011
-22.5
-15.0
-7.5
0.0
7.5
15.0
22.5
Vanguard LifeStrategy Growth Inv Vanguard Growth Custom Benchmark
Vanguard LifeStrategy Growth Inv - Asset Allocation
Portfolio Date: 9/30/2011
%
Stock 78.4
Bond 15.5
Cash 4.5
Other 1.6
Total 100.0
Calendar Year Returns
2002 Rank 2003 Rank 2004 Rank 2005 Rank 2006 Rank 2007 Rank 2008 Rank 2009 Rank 2010 Rank 2011 Rank
Vanguard LifeStrategy Growth Inv
Vanguard Growth Custom Benchmark -2.0 20.6 10.4 5.2 13.2 5.2 -32.2 22.4 12.2 -1.2
-15.8 73 28.5 15 12.6 26 6.9 55 16.1 10 7.5 47 -34.4 52 25.0 80 15.1 22 -2.3 34
Source: Morningstar Direct
37
Vanguard Prime Money Market Inv
VMMXX
BofAML US Treasury Bill 3 Mon
Rolling Returns (3 Years)
Top Quartile 2nd Quartile 3rd Quartile Bottom Quartile
Return12
2005
03 06 09 12
2006
03 06 09 12
2007
03 06 09 12
2008
03 06 09 12
2009
03 06 09 12
2010
03 06 09 12
2011
03 06 09 12
0.0
0.8
1.5
2.3
3.0
3.8
4.5
5.3
Vanguard Prime Money Market Inv BofAML US Treasury Bill 3 Mon
Asset Allocation
Portfolio Date: 8/31/2011
%
Stock 0.0
Bond 7.3
Cash 82.9
Other 9.8
Total 100.0
Calendar Year Returns
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
Vanguard Prime Money Market Inv
BofAML US Treasury Bill 3 Mon
1.7 0.9 1.1 3.0 4.9 5.1 2.8 0.5 0.1 0.0
1.8 1.1 1.3 3.1 4.8 5.0 2.1 0.2 0.1 0.1
Source: Morningstar Direct 38
Vanguard Total Bond Market Index Inv
VBMFX
BarCap US Agg Bond TR USD
Risk & Return Characteristics (5 Years)
Time Period: 1/1/2007 to 12/31/2011
Fund Index
R2
Alpha
Beta
Std Dev
Up Capture Ratio
Down Capture Ratio
Sharpe Ratio (geo)
Information Ratio (geo)
Tracking Error
Correlation
3.5
98.8
105.7
-0.5
3.5
0.2
100.0
100.0
0.0
99.6
-0.2
1.0
1.4
1.0
100.0
0.0
1.0
1.5
1.0
Risk & Return Illustration (5 Years)
Time Period: 1/1/2007 to 12/31/2011
ReturnStd Dev
0.0 1.0 2.0 3.0 4.0
0.0
2.0
4.0
6.0
8.0 Vanguard Total Bond Market Index Inv
BarCap US Agg Bond TR USD
Rolling Returns (3 Years)
Top Quartile 2nd Quartile 3rd Quartile Bottom Quartile
Return2005 2006 2007 2008 2009 2010 2011
-5.0
0.0
5.0
10.0
15.0
Vanguard Total Bond Market Index Inv BarCap US Agg Bond TR USD
Rolling Risk (3 Years)
Top Quartile 2nd Quartile 3rd Quartile Bottom Quartile
Std Dev2005 2006 2007 2008 2009 2010 2011
2.0
4.0
6.0
8.0
10.0
12.0
Vanguard Total Bond Market Index Inv BarCap US Agg Bond TR USD
Calendar Year Returns
2002 Rank 2003 Rank 2004 Rank 2005 Rank 2006 Rank 2007 Rank 2008 Rank 2009 Rank 2010 Rank 2011 Rank
Vanguard Total Bond Market Index Inv
BarCap US Agg Bond TR USD
8.3 56 4.0
10.3
58
4.1
4.2
4.3
38 2.4
2.4
19
4.3
4.3
7.0
35
5.2
6.9 11
5.9
5.1
6.5
10
7.8
5.9 90 6.4 73 7.6 15
Source: Morningstar Direct 39
Vanguard Balanced Index Inv
VBINX
60% S&P 500-40% BarCap Agg
Risk & Return Illustration (5 Years)ReturnStd Dev
0.0 3.0 6.0 9.0 12.0 15.0
0.0
1.0
2.0
3.0
4.0 Vanguard Balanced Index Inv
60% S&P 500-40% BarCap Agg
Rolling 3 Year Risk
Top Quartile 2nd Quartile 3rd Quartile Bottom Quartile
Std Dev2005 2006 2007 2008 2009 2010 2011
0.0
5.0
10.0
15.0
20.0
25.0
Vanguard Balanced Index Inv 60% S&P 500-40% BarCap Agg
Rolling 3 Year Return
Top Quartile 2nd Quartile 3rd Quartile Bottom Quartile
Return2005 2006 2007 2008 2009 2010 2011
-15.0
-10.0
-5.0
0.0
5.0
10.0
15.0
20.0
Vanguard Balanced Index Inv 60% S&P 500-40% BarCap Agg
Vanguard Balanced Index Inv - Asset Allocation
Portfolio Date: 9/30/2011
%
Stock 58.1
Bond 38.8
Cash 2.6
Other 0.6
Total 100.0
Calendar Year Returns
2002 Rank 2003 Rank 2004 Rank 2005 Rank 2006 Rank 2007 Rank 2008 Rank 2009 Rank 2010 Rank 2011 Rank
Vanguard Balanced Index Inv
60% S&P 500-40% BarCap Agg
-9.5 28 19.9 49 9.3 42 4.7 56 11.02 53 6.2 49 -22.2 13 20.1 77 13.1 27 4.1 7
-9.8 18.5 8.3 4.0 11.12 6.2 -22.1 18.4 12.1 4.7
Source: Morningstar Direct
40
Vanguard 500 Index Investor
VFINX
S&P 500 TR
Risk & Return Characteristics (5 Years)
Time Period: 1/1/2007 to 12/31/2011
Fund Index
R2
Alpha
Beta
Std Dev
Up Capture Ratio
Down Capture Ratio
Sharpe Ratio (geo)
Information Ratio (geo)
Tracking Error
Correlation
21.121.1
100.099.7
100.0100.1
-0.1 -0.1
-1.8
0.0 0.0
1.0 1.0
100.0
0.0
1.0
100.0
-0.1
1.0
Risk & Return Illustration (5 Years)
Time Period: 1/1/2007 to 12/31/2011
ReturnStd Dev
0.0 4.0 8.0 12.0 16.0 20.0 24.0
-0.4
-0.3
-0.2
-0.1
-0.0 Vanguard 500 Index Investor
S&P 500 TR
Rolling Risk (3 Years)
Top Quartile 2nd Quartile 3rd Quartile Bottom Quartile
Std Dev2005 2006 2007 2008 2009 2010 2011
5.0
10.0
15.0
20.0
25.0
30.0
35.0
Vanguard 500 Index Investor S&P 500 TR
Rolling Returns (3 Years)
Top Quartile 2nd Quartile 3rd Quartile Bottom Quartile
Return2005 2006 2007 2008 2009 2010 2011
-22.5
-15.0
-7.5
0.0
7.5
15.0
22.5
30.0
Vanguard 500 Index Investor S&P 500 TR
Calendar Year Returns
2002 Rank 2003 Rank 2004 Rank 2005 Rank 2006 Rank 2007 Rank 2008 Rank 2009 Rank 2010 Rank 2011 Rank
Vanguard 500 Index Investor
S&P 500 TR -22.1 28.7 10.9 4.9 15.8
-22.1
5.5
41
-37.0
28.5
26.5
28
15.1
10.7
2.1
36 4.8 60 15.6 24 5.4 51 -37.0 38 26.5 54 14.9 31 2.0 19
Source: Morningstar Direct 41
Vanguard Windsor II Investor
VWNFX
Russell 1000 Value TR USD
Historical Sector Allocations (5 Years)
0.0
10.0
20.0
30.0
40.0
50.0
60.0
70.0
80.0
90.0
100.0
9/2007 3/2008 9/2008 3/2009 9/2009 3/2010 9/2010 3/2011 9/2011
Energy %Materials %Industrials %
Consumer Discretionary %Consumer Staples %Healthcare %
Financials %Information Technology %Telecom Services %
Utilities %
Attribution (Quarter)
Portfolio
Weights
Benchmark
Weights
Portfolio
Return
Benchmark
Return
Allocation
Effect
Selection
Effect
Active
Return
Consumer Discretionary
Consumer Staples
Energy
Financials
Health Care
Industrials
Information Technology
Materials
Telecommunication Services
Utilities
Unclassified
Attribution Total
Cash
Bond
Missing Performance
Total
7.39 8.82 17.10 17.44 -0.05 -0.03 -0.07
11.30 8.10 16.96 10.91 -0.06 0.69 0.63
12.99 12.32 21.71 18.42 0.05 0.42 0.47
17.20 24.77 11.05 11.02 0.15 0.01 0.16
13.31 12.72 8.82 11.59 -0.02 -0.39 -0.41
12.14 8.95 19.80 18.80 0.20 0.12 0.32
12.45 9.05 8.12 13.28 0.03 -0.68 -0.66
1.77 2.67 11.49 17.71 -0.03 -0.11 -0.15
2.86 4.82 10.67 7.23 0.12 0.10 0.22
4.68 7.79 5.61 8.58 0.14 -0.15 -0.01
0.98 0.00 12.26 -0.01 0.00 -0.01
97.06 100.00 13.67 13.16 0.52 -0.01 0.51
2.76 0.00
0.13 0.00
0.05 0.00
100.00 100.00
Market Capitalization Breakdown
Portfolio Date: 9/30/2011
Fund Index
Market Cap Giant %
Market Cap Large %
Market Cap Mid %
Market Cap Small %
Market Cap Micro %
Average Market Cap (mil) (Long)
53.2
33.0
12.8
0.9
0.0
42,014.6
46.2
31.1
20.2
2.6
0.0
31,194.2
Portfolio Statistics
Fund Index
# of Holdings
% Asset in Top 10 Holdings
Turnover Ratio %
P/E Ratio
P/B Ratio
LT Earn Growth
Hist Earn Growth
12 Mo Yield
263
28.0
23.0
11.0
1.5
9.6
6.0
2.3
656
24.4
12.3
1.4
8.9
-2.8
Holdings Based Style Trail (5 Years)
Time Period: 1/31/2007 to 12/31/2011
Micro Small Mid Large Giant
Deep-Val Core-Val Core Core-Grth High-Grth
Vanguard Windsor II Investor Russell 1000 Value TR USD
Source: Morningstar Direct 42
Vanguard Windsor II Investor
VWNFX
Russell 1000 Value TR USD
Risk & Return Characteristics (5 Years)
Time Period: 1/1/2007 to 12/31/2011
Fund Index
R2
Alpha
Beta
Std Dev
Up Capture Ratio
Down Capture Ratio
Sharpe Ratio (geo)
Information Ratio (geo)
Tracking Error
Correlation
22.8
100.0
100.0
0.0
22.4
103.6
96.6
0.4
3.3
97.9
1.2
1.0
-0.1
1.0
100.0
0.0
1.0
-0.2
1.0
Risk & Return Illustration (5 Years)
Time Period: 1/1/2007 to 12/31/2011
ReturnStd Dev
0.0 4.0 8.0 12.0 16.0 20.0 24.0 28.0
-4.0
-3.0
-2.0
-1.0
0.0 Vanguard Windsor II Investor
Russell 1000 Value TR USD
Rolling Risk (3 Years)
Top Quartile 2nd Quartile 3rd Quartile Bottom Quartile
Std Dev2005 2006 2007 2008 2009 2010 2011
5.0
10.0
15.0
20.0
25.0
30.0
35.0
Vanguard Windsor II Investor Russell 1000 Value TR USD
Rolling Returns (3 Years)
Top Quartile 2nd Quartile 3rd Quartile Bottom Quartile
Return2005 2006 2007 2008 2009 2010 2011
-22.5
-15.0
-7.5
0.0
7.5
15.0
22.5
30.0
Vanguard Windsor II Investor Russell 1000 Value TR USD
Calendar Year Returns
2002 Rank 2003 Rank 2004 Rank 2005 Rank 2006 Rank 2007 Rank 2008 Rank 2009 Rank 2010 Rank 2011 Rank
Vanguard Windsor II Investor
Russell 1000 Value TR USD
-16.9 35 30.1 33 18.3 7 7.0 34 18.2 50 2.2 47 -36.7 53 27.1 28 10.6 88
-15.5
2.7
30.0
24
16.5 7.1 22.2 -0.2 -36.8 19.7 15.5 0.4
Source: Morningstar Direct 43
Vanguard US Growth Inv
VWUSX
Russell 1000 Growth TR USD
Historical Sector Allocations (5 Years)
0.0
10.0
20.0
30.0
40.0
50.0
60.0
70.0
80.0
90.0
100.0
9/2007 3/2008 9/2008 3/2009 9/2009 3/2010 9/2010 3/2011 9/2011
Energy %Materials %Industrials %
Consumer Discretionary %Consumer Staples %Healthcare %
Financials %Information Technology %Telecom Services %
Utilities %
Attribution (Quarter)
Portfolio
Weights
Benchmark
Weights
Portfolio
Return
Benchmark
Return
Allocation
Effect
Selection
Effect
Active
Return
Consumer Discretionary
Consumer Staples
Energy
Financials
Health Care
Industrials
Information Technology
Materials
Telecommunication Services
Utilities
Unclassified
Attribution Total
Cash
Bond
Other
Missing Performance
Total
17.19 14.36 11.25 9.42 -0.05 0.33 0.29
3.57 12.57 -19.97 8.97 0.09 -1.22 -1.12
7.20 10.83 26.20 18.75 -0.28 0.49 0.20
5.48 3.83 7.03 12.19 0.03 -0.30 -0.27
8.59 10.72 7.63 7.35 0.06 0.02 0.08
8.93 12.48 14.10 15.94 -0.16 -0.17 -0.33
39.11 28.58 9.09 7.08 -0.44 0.84 0.40
3.66 5.35 13.15 15.62 -0.06 -0.09 -0.16
1.70 1.19 10.15 9.01 -0.01 0.02 0.01
0.00 0.09 3.85 0.01 0.00 0.01
0.01 0.00 10.95 0.00 0.00 0.00
95.44 100.00 9.73 10.62 -0.82 -0.07 -0.89
4.01 0.00
0.27 0.00
0.28 0.00
0.00 0.00
100.00 100.00
Market Capitalization Breakdown
Portfolio Date: 9/30/2011
Fund Index
Market Cap Giant %
Market Cap Large %
Market Cap Mid %
Market Cap Small %
Market Cap Micro %
Average Market Cap (mil) (Long)
26.5
51.0
22.6
0.0
0.0
24,883.3
44.2
33.2
21.4
1.2
0.0
36,280.3
Portfolio Statistics
Fund Index
# of Holdings
% Asset in Top 10 Holdings
Turnover Ratio %
P/E Ratio
P/B Ratio
LT Earn Growth
Hist Earn Growth
12 Mo Yield
120
31.4
89.0
16.9
2.9
14.4
13.3
0.4
588
28.5
15.6
3.6
12.3
13.9
Holdings Based Style Trail (5 Years)
Time Period: 1/31/2007 to 12/31/2011
Micro Small Mid Large Giant
Deep-Val Core-Val Core Core-Grth High-Grth
Vanguard US Growth Inv Russell 1000 Growth TR USD
Source: Morningstar Direct 44
Vanguard US Growth Inv
VWUSX
Russell 1000 Growth TR USD
Risk & Return Characteristics (5 Years)
Time Period: 1/1/2007 to 12/31/2011
Fund Index
R2
Alpha
Beta
Std Dev
Up Capture Ratio
Down Capture Ratio
Sharpe Ratio (geo)
Information Ratio (geo)
Tracking Error
Correlation
21.4
95.6
106.9
-0.7
2.7
21.3
100.0
100.0
0.0
98.4
-2.0
1.0
0.0
1.0
100.0
0.0
1.0
0.1
1.0
Risk & Return Illustration (5 Years)
Time Period: 1/1/2007 to 12/31/2011
ReturnStd Dev
0.0 4.0 8.0 12.0 16.0 20.0 24.0
0.0
0.5
1.0
1.5
2.0
2.5
3.0 Vanguard US Growth Inv
Russell 1000 Growth TR USD
Rolling Risk (3 Years)
Top Quartile 2nd Quartile 3rd Quartile Bottom Quartile
Std Dev2005 2006 2007 2008 2009 2010 2011
5.0
10.0
15.0
20.0
25.0
30.0
35.0
Vanguard US Growth Inv Russell 1000 Growth TR USD
Rolling Returns (3 Years)
Top Quartile 2nd Quartile 3rd Quartile Bottom Quartile
Return2005 2006 2007 2008 2009 2010 2011
-22.5
-15.0
-7.5
0.0
7.5
15.0
22.5
30.0
Vanguard US Growth Inv Russell 1000 Growth TR USD
Calendar Year Returns
2002 Rank 2003 Rank 2004 Rank 2005 Rank 2006 Rank 2007 Rank 2008 Rank 2009 Rank 2010 Rank 2011 Rank
Vanguard US Growth Inv
Russell 1000 Growth TR USD
-35.8 92 26.1 58 7.0 55 11.2 18 1.8 88 10.1 68 -37.8 28 35.0 47 11.5 83 -0.7 36
-27.9 29.7 6.3 5.3 9.1 11.8 -38.4 37.2 16.7 2.6
Source: Morningstar Direct 45
Vanguard Mid Cap Index Inv
VIMSX
MSCI US Mid Cap 450 GR USD
Risk & Return Characteristics (5 Years)
Time Period: 1/1/2007 to 12/31/2011
Fund Index
R2
Alpha
Beta
Std Dev
Up Capture Ratio
Down Capture Ratio
Sharpe Ratio (geo)
Information Ratio (geo)
Tracking Error
Correlation
25.4
99.5
100.2
-1.8
0.1
25.4
100.0
100.0
0.0
100.0
-0.2
1.0
0.0
1.0
100.0
0.0
1.0
0.0
1.0
Risk & Return Illustration (5 Years)
Time Period: 1/1/2007 to 12/31/2011
ReturnStd Dev
0.0 4.0 8.0 12.0 16.0 20.0 24.0 28.0
0.0
0.3
0.6
0.9
1.2
1.5
1.8 Vanguard Mid Cap Index Inv
MSCI US Mid Cap 450 GR USD
Rolling Risk (3 Years)
Top Quartile 2nd Quartile 3rd Quartile Bottom Quartile
Std Dev2005 2006 2007 2008 2009 2010 2011
0.0
7.5
15.0
22.5
30.0
37.5
45.0
Vanguard Mid Cap Index Inv MSCI US Mid Cap 450 GR USD
Rolling Returns (3 Years)
Top Quartile 2nd Quartile 3rd Quartile Bottom Quartile
Return2005 2006 2007 2008 2009 2010 2011
-30.0
-20.0
-10.0
0.0
10.0
20.0
30.0
40.0
Vanguard Mid Cap Index Inv MSCI US Mid Cap 450 GR USD
Calendar Year Returns
2002 Rank 2003 Rank 2004 Rank 2005 Rank 2006 Rank 2007 Rank 2008 Rank 2009 Rank 2010 Rank 2011 Rank
Vanguard Mid Cap Index Inv
MSCI US Mid Cap 450 GR USD -16.5
-14.6
39.0
41
20.5
34.1
13.9
55
13.7
20.4
6.2
19
-41.8
13.9
40.5
13
25.7
13.6
-1.9
46 6.0 44 -41.8 69 40.2 25 25.5 29 -2.1 34
Source: Morningstar Direct 46
Vanguard Small Cap Index Inv
NAESX
MSCI US Small Cap 1750 GR USD
Risk & Return Characteristics (5 Years)
Time Period: 1/1/2007 to 12/31/2011
Fund Index
R2
Alpha
Beta
Std Dev
Up Capture Ratio
Down Capture Ratio
Sharpe Ratio (geo)
Information Ratio (geo)
Tracking Error
Correlation
27.027.0
100.099.8
100.099.9
0.0
0.00.1
100.0
1.01.0
0.0
100.0
0.0
1.0 1.0
0.0 0.0
Risk & Return Illustration (5 Years)
Time Period: 1/1/2007 to 12/31/2011
ReturnStd Dev
0.0 5.0 10.0 15.0 20.0 25.0 30.0
0.0
0.3
0.6
0.9
1.2
1.5
1.8
2.1 Vanguard Small Cap Index Inv
MSCI US Small Cap 1750 GR USD
Rolling Returns (3 Years)
Top Quartile 2nd Quartile 3rd Quartile Bottom Quartile
Return2005 2006 2007 2008 2009 2010 2011
-30.0
-20.0
-10.0
0.0
10.0
20.0
30.0
40.0
Vanguard Small Cap Index Inv MSCI US Small Cap 1750 GR USD
Rolling Risk (3 Years)
Top Quartile 2nd Quartile 3rd Quartile Bottom Quartile
Std Dev2005 2006 2007 2008 2009 2010 2011
5.0
10.0
15.0
20.0
25.0
30.0
35.0
40.0
Vanguard Small Cap Index Inv MSCI US Small Cap 1750 GR USD
Calendar Year Returns
2002 Rank 2003 Rank 2004 Rank 2005 Rank 2006 Rank 2007 Rank 2008 Rank 2009 Rank 2010 Rank 2011 Rank
Vanguard Small Cap Index Inv
MSCI US Small Cap 1750 GR USD
-20.0
-18.4
71
47.4
45.6
20.0
36
7.5
19.9
15.8
43
1.2
7.4
-36.2
42
36.1
15.7
27.8
42
-2.8
1.2 30 -36.1 53 36.1 26 27.7 25 -2.8 44
Source: Morningstar Direct 47
Vanguard International Growth Inv
VWIGX
MSCI AC World Ex USA NR USD
Attribution (Quarter)
Portfolio
Weights
Benchmark
Weights
Portfolio
Return
Benchmark
Return
Allocation
Effect
Selection
Effect
Active
Return
Consumer Discretionary
Consumer Staples
Energy
Financials
Health Care
Industrials
Information Technology
Materials
Telecommunication Services
Utilities
Unclassified
Attribution Total
Cash
Bond
Other
Missing Performance
Total
15.20 9.03 2.27 1.07 -0.21 0.22 0.01
9.08 9.74 6.58 6.61 0.00 0.00 0.00
6.94 11.00 12.07 12.42 -0.28 -0.03 -0.31
14.96 22.99 4.05 1.07 0.17 0.51 0.69
5.55 6.71 5.25 5.81 -0.03 -0.04 -0.06
13.17 10.38 7.23 4.58 0.04 0.39 0.43
12.49 5.72 5.58 1.91 -0.14 0.52 0.37
9.46 12.01 7.54 1.98 0.02 0.60 0.62
1.18 6.35 6.33 2.40 0.06 0.05 0.12
0.87 4.11 -3.21 -1.88 0.18 -0.01 0.17
0.00 0.05 -0.79 0.00 0.00 0.00
88.90 98.08 5.68 3.66 -0.18 2.20 2.02
4.86 0.00
0.28 0.00
3.10 0.56
2.87 1.36
100.00 100.00
Historical Country Allocations (5 Years)
0.0
10.0
20.0
30.0
40.0
50.0
60.0
70.0
80.0
90.0
100.0
9/2007 3/2008 9/2008 3/2009 9/2009 3/2010 9/2010 3/2011 9/2011
North America %Latin America %United Kingdom %
Europe dev %Europe emrg %Africa/Middle East %
Australasia %Japan %Asia dev %
Asia emrg %
Holdings Based Style Trail (5 Years)
Time Period: 1/31/2007 to 12/31/2011
Micro Small Mid Large Giant
Deep-Val Core-Val Core Core-Grth High-Grth
Vanguard International Growth Inv MSCI AC World Ex USA NR USD
Portfolio Statistics
Fund Index
# of Holdings
% Asset in Top 10 Holdings
Turnover Ratio %
P/E Ratio
P/B Ratio
LT Earn Growth
Hist Earn Growth
12 Mo Yield
1,847
9.6
10.9
1.3
1.6
715.5
198
21.1
43.0
12.0
1.8
10.5
7.7
2.0
Market Capitalization Breakdown
Portfolio Date: 9/30/2011
Fund Index
Market Cap Giant %
Market Cap Large %
Market Cap Mid %
Market Cap Small %
Market Cap Micro %
Average Market Cap
Equity Region Developed %
Equity Region Emerging %
54.9
33.3
10.7
1.0
0.1
24,310.2
79.4
20.6
53.3
34.6
11.7
0.3
0.1
22,906.7
Source: Morningstar Direct 48
Vanguard International Growth Inv
VWIGX
MSCI AC World Ex USA NR USD
Risk & Return Characteristics (5 Years)
Time Period: 1/1/2007 to 12/31/2011
Fund Index
R2
Alpha
Beta
Std Dev
Up Capture Ratio
Down Capture Ratio
Sharpe Ratio (geo)
Information Ratio (geo)
Tracking Error
Correlation
26.6
100.0
100.0
27.1
106.3
100.9
0.4
2.6
1.0
100.0
0.0
1.0
99.1
1.1
1.0
-0.1 -0.2
0.0
1.0
Risk & Return Illustration (5 Years)
Time Period: 1/1/2007 to 12/31/2011
ReturnStd Dev
0.0 5.0 10.0 15.0 20.0 25.0 30.0
-4.0
-3.0
-2.0
-1.0
0.0 Vanguard International Growth Inv
MSCI AC World Ex USA NR USD
Rolling Returns (3 Years)
Top Quartile 2nd Quartile 3rd Quartile Bottom Quartile
Return2005 2006 2007 2008 2009 2010 2011
-20.0
-10.0
0.0
10.0
20.0
30.0
40.0
Vanguard International Growth Inv MSCI AC World Ex USA NR USD
Rolling Risk (3 Years)
Top Quartile 2nd Quartile 3rd Quartile Bottom Quartile
Std Dev2005 2006 2007 2008 2009 2010 2011
5.0
10.0
15.0
20.0
25.0
30.0
35.0
Vanguard International Growth Inv MSCI AC World Ex USA NR USD
Calendar Year Returns
2002 Rank 2003 Rank 2004 Rank 2005 Rank 2006 Rank 2007 Rank 2008 Rank 2009 Rank 2010 Rank 2011 Rank
Vanguard International Growth Inv
MSCI AC World Ex USA NR USD -14.9
-17.8
40.8
62
20.9
34.4
16.6
39
26.7
19.0
16.7
30
-45.5
15.0
41.4 11.2
39
-13.7
25.9 37 16.0 22 -44.9 62 41.6 10 15.7 8 -13.7 47
Source: Morningstar Direct 49
" R - S q u a r e d ( R 2 ) A m e a s u r e o f h o w c l o s e t h e r e l a t i o n s h i p i s b e t w e e n a F u n d a n d i t s i n d e x b e n c h m a r k . V a l u e s c a n r a n g e f r o m 0 % t o 1 0 0 % G e n e r a l R a n g e f o r R - S q u a r e d : 7 0 - 1 0 0 % = g o o d c o r r e l a t i o n b e t w e e n t h e F u n d s r e t u r n s a n d t h e b e n c h m a r k ' s r e t u r n s 4 0 - 7 0 % = a v e r a g e c o r r e l a t i o n b e t w e e n t h e F u n d s r e t u r n s a n d t h e b e n c h m a r k ' s r e t u r n s 0 - 4 0 % = l o w c o r r e l a t i o n b e t w e e n t h e F u n d s r e t u r n s a n d t h e b e n c h m a r k ' s r e t u r n s " A l p h a - A m e a s u r e o f t h e d i f f e r e n c e b e t w e e n a F u n d s a c t u a l r e t u r n s a n d e x p e c t e d p e r f o r m a n c e , g i v e n i t s l e v e l o f r i s k a s m e a s u r e d b y b e t a " B e t a - A m e a s u r e o f a F u n d s s y s t e m a t i c r i s k t o b e n c h m a r k m o v e m e n t s . T h e b e t a o f t h e m a r k e t ( b e n c h m a r k ) i s 1 . 0 G e n e r a l R a n g e f o r B e t a : A b e t a g r e a t e r t h a n 1 . 0 i n d i c a t e s t h e F u n d s r e t u r n s a r e m o r e v o l a t i l e t h a n t h e b e n c h m a r k s A b e t a l e s s t h a n 1 . 0 i n d i c a t e s t h e F u n d s r e t u r n s a r e l e s s v o l a t i l e t h a n t h e b e n c h m a r k s A b e t a o f 1 . 0 i n d i c a t e s t h e F u n d w i l l g e n e r a t e t h e s a m e l e v e l o f r i s k a s t h e m a r k e t " S t a n d a r d D e v i a t i o n A s t a t i s t i c a l m e a s u r e m e n t o f d i s p e r s i o n a r o u n d a n a v e r a g e , w h i c h r e p r e s e n t s h o w w i d e l y a F u n d ' s r e t u r n s v a r i e d o v e r a s p e c i f i e d t i m e p e r i o d A F u n d w i t h a s t a n d a r d d e v i a t i o n o f 1 9 % a n d a m e a n r e t u r n o f 5 % o v e r 5 y e a r s i n d i c a t e s a b o u t 6 8 % o f t h e d a t a v a l u e s h a v e r a n g e d b e t w e e n - 1 4 % a n d 2 4 % ( w i t h i n o n e s t a n d a r d d e v i a t i o n o f t h e m e a n ) a n d a b o u t 9 5 % o f t h e d a t a v a l u e s h a v e r a n g e d b e t w e e n - 3 3 % a n d 4 3 % ( w i t h i n t w o s t a n d a r d d e v i a t i o n s o f t h e m e a n ) S t a n d a r d d e v i a t i o n i s a r e p r e s e n t a t i o n o f r i s k ; h i g h e r s t a n d a r d d e v i a t i o n r e p r e s e n t s g r e a t e r f l u c t u a t i o n s i n p r i c e h i s t o r i c a l l y t h a n l o w e r s t a n d a r d d e v i a t i o n G l o s s a r y o f T e r m s 5 0
" U p C a p t u r e R a t i o - M e a s u r e s a F u n d ' s p e r f o r m a n c e i n u p m a r k e t s r e l a t i v e t o a b e n c h m a r k . A r a t i o g r e a t e r t h a n 1 0 0 % i n d i c a t e s t h e F u n d h a s o u t p e r f o r m e d t h e b e n c h m a r k d u r i n g p e r i o d s o f r i s i n g m a r k e t s . " D o w n C a p t u r e R a t i o - M e a s u r e s a F u n d ' s p e r f o r m a n c e i n d o w n m a r k e t s r e l a t i v e t o a b e n c h m a r k . A r a t i o g r e a t e r t h a n 1 0 0 % i n d i c a t e s t h e F u n d h a s u n d e r p e r f o r m e d t h e b e n c h m a r k d u r i n g p e r i o d s o f d e c l i n i n g m a r k e t s . " S h a r p e R a t i o A r i s k - a d j u s t e d p e r f o r m a n c e m e a s u r e t h a t u s e s S t a n d a r d D e v i a t i o n a n d A l p h a t o d e t e r m i n e r e w a r d p e r u n i t o f r i s k . S h a r p e R a t i o i s u s e d t o s t a n d a r d i z e p e r f o r m a n c e c o m p a r i s o n s g i v e n d i f f e r e n t l e v e l s o f r i s k e m p l o y e d a c r o s s f u n d s . " I n f o r m a t i o n R a t i o ( I R ) - A r i s k - a d j u s t e d p e r f o r m a n c e m e a s u r e t h a t c a l c u l a t e s a r a t i o o f A l p h a o v e r T r a c k i n g E r r o r . A h i g h e r I R i n d i c a t e s g r e a t e r r i s k - a d j u s t e d r e t u r n s . G e n e r a l R a n g e f o r I n f o r m a t i o n R a t i o : - 0 . 5 t o 0 . 5 A F u n d w i t h A l p h a o f 0 . 5 % a n d T r a c k i n g E r r o r o f 4 % w o u l d h a v e a n I n f o r m a t i o n R a t i o o f 0 . 1 2 5 A F u n d w i t h A l p h a o f 1 % a n d T r a c k i n g E r r o r o f 4 % w o u l d h a v e a n I n f o r m a t i o n R a t i o o f 0 . 2 5 A F u n d w i t h A l p h a o f 1 % a n d T r a c k i n g E r r o r o f 8 % w o u l d h a v e a n I n f o r m a t i o n R a t i o o f 0 . 1 2 5 I n f o r m a t i o n r a t i o s f a l l i n a t i g h t r a n g e a n d a r e n e g a t i v e i f A l p h a i s n e g a t i v e . I n f o r m a t i o n r a t i o s > 0 i n d i c a t e p o s i t i v e r i s k - a d j u s t e d p e r f o r m a n c e , a n d i n f o r m a t i o n r a t i o s > 0 . 2 5 i n d i c a t e s t r o n g r i s k - a d j u s t e d p e r f o r m a n c e . " T r a c k i n g E r r o r T r a c k i n g e r r o r i s t h e s t a n d a r d d e v i a t i o n o f t h e d i f f e r e n c e s b e t w e e n t h e F u n d r e t u r n a n d t h e b e n c h m a r k r e t u r n , i . e . t h e s t a n d a r d d e v i a t i o n o f e x c e s s r e t u r n s T r a c k i n g e r r o r i s a m e a s u r e o f h o w b e n c h m a r k - s e n s i t i v e a F u n d i s I n d e x f u n d s g e n e r a l l y h a v e t r a c k i n g e r r o r b e t w e e n 0 a n d 1 . 5 % B e n c h m a r k - a w a r e F u n d s g e n e r a l l y h a v e t r a c k i n g e r r o r b e t w e e n 2 % a n d 5 % B e n c h m a r k - a g n o s t i c F u n d s g e n e r a l l y h a v e t r a c k i n g e r r o r g r e a t e r t h a n 6 % G l o s s a r y o f T e r m s 5 1
" C o r r e l a t i o n - A s t a t i s t i c a l m e a s u r e o f h o w t w o s e c u r i t i e s ( f u n d a n d b e n c h m a r k ) m o v e i n r e l a t i o n t o e a c h o t h e r . V a l u e s c a n r a n g e f r o m - 1 . 0 t o + 1 . 0 P e r f e c t p o s i t i v e c o r r e l a t i o n - A c o e f f i c i e n t o f + 1 . 0 ; i m p l i e s a F u n d a n d b e n c h m a r k m o v e i n l o c k s t e p , u p o r d o w n P e r f e c t n e g a t i v e c o r r e l a t i o n A c o e f f i c i e n t o f - 1 . 0 ; i m p l i e s a F u n d a n d b e n c h m a r k m o v e p e r f e c t l y o p p o s i t e l y , u p o r d o w n Z e r o c o r r e l a t i o n A c o e f f i c i e n t o f 0 ; i m p l i e s t h a t m o v e m e n t s b e t w e e n t h e F u n d a n d b e n c h m a r k a r e r a n d o m a n d t h e c h a n g e i n v a l u e o f o n e w i l l h a v e n o i m p a c t i n t h e c h a n g e i n v a l u e o f t h e o t h e r G l o s s a r y o f T e r m s 5 2
" N E P C u s e s , a s a d a t a s o u r c e , t h e p l a n s c u s t o d i a n b a n k o r s e r v i c e p r o v i d e r f o r a s s e t b a l a n c e s , c a l c u l a t i o n o f a c c r u a l s , t r a n s f e r s , e x c h a n g e s a n d c o n t r i b u t i o n d e f e r r a l i n f o r m a t i o n . W h i l e N E P C h a s e x e r c i s e d r e a s o n a b l e p r o f e s s i o n a l c a r e i n p r e p a r i n g t h i s r e p o r t , w e c a n n o t g u a r a n t e e t h e a c c u r a c y o f a l l s o u r c e i n f o r m a t i o n c o n t a i n e d w i t h i n . " T h i s r e p o r t i s p r o v i d e d a s a m a n a g e m e n t a i d f o r t h e c l i e n t s i n t e r n a l u s e o n l y . F u n d p e r f o r m a n c e c o n t a i n e d i n t h i s r e p o r t d o e s n o t c o n s t i t u t e a r e c o m m e n d a t i o n b y N E P C . " I n f o r m a t i o n i n t h i s r e p o r t o n f u n d r e t u r n s , m a r k e t i n d i c e s a n d s e c u r i t y c h a r a c t e r i s t i c s i s r e c e i v e d f r o m s o u r c e s e x t e r n a l t o N E P C . W h i l e e f f o r t s a r e m a d e t o e n s u r e t h a t t h i s e x t e r n a l d a t a i s a c c u r a t e , N E P C c a n n o t a c c e p t r e s p o n s i b i l i t y f o r e r r o r s t h a t m a y o c c u r . " ( c ) M o r n i n g s t a r 2 0 1 1 . A l l R i g h t s R e s e r v e d . F o r i n s t i t u t i o n a l u s e o n l y . T h e i n f o r m a t i o n c o n t a i n e d h e r e i n : ( 1 ) i s p r o p r i e t a r y t o M o r n i n g s t a r a n d / o r i t s c o n t e n t p r o v i d e r s ; ( 2 ) m a y n o t b e c o p i e d o r d i s t r i b u t e d ; a n d ( 3 ) i s n o t w a r r a n t e d t o b e a c c u r a t e , c o m p l e t e o r t i m e l y . N e i t h e r M o r n i n g s t a r n o r i t s c o n t e n t p r o v i d e r s a r e r e s p o n s i b l e f o r a n y d a m a g e s o r l o s s e s a r i s i n g f r o m a n y u s e o f t h i s i n f o r m a t i o n . P a s t f i n a n c i a l p e r f o r m a n c e i s n o g u a r a n t e e o f f u t u r e r e s u l t s . D i s c l a i m e r 5 3