HomeMy Public PortalAbout2011 Audited Financials
THE METROPOLITAN ST. LOUIS
SEWER DISTRICT
DEFINED CONTRIBUTION PLAN
FINANCIAL STATEMENTS
DECEMBER 31, 2011
Contents
Page
Independent Auditors’ Report........................................................................ 1 - 2
Management’s Discussion And Analysis ....................................................... 3 - 6
Financial Statements
Statement of Plan Net Assets .............................................................................7
Statement of Changes in Plan Net Assets ..........................................................8
Notes to Financial Statements .................................................................... 9 - 16
Supplemental Information
Expense Ratios .................................................................................................17
Independent Auditors’ Report
To the Board of Trustees of the
Metropolitan St. Louis Sewer District
St. Louis, Missouri
We have audited the accompanying statement of plan net assets of the Metropolitan St. Louis Sewer
District Defined Contribution Plan (the “Plan”) as of December 31, 2011, and the related statement of
changes in plan net assets for the year then ended. These financial statements are the responsibility
of the Plan Administrator. Our responsibility is to express an opinion on these financial statements
based on our audit.
We conducted our audit in accordance with U.S. generally accepted auditing standards. Those
standards require that we plan and perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit includes consideration of internal
control over financial reporting as a basis for designing audit procedures that are appropriate in the
circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Plan’s
internal control over financial reporting. Accordingly, we express no such opinion. An audit also
includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial
statements, assessing the accounting principles used and significant estimates made by management,
as well as evaluating the overall financial statement presentation. We believe that our audit provides
a reasonable basis for our opinion.
In our opinion, the 2011 financial statements referred to above present fairly, in all material respects,
the plan net assets as of December 31, 2011, and the changes in plan net assets for the year then
ended, in conformity with accounting principles generally accepted in the United States of America.
Accounting principles generally accepted in the United States of America require that the
management’s discussion and analysis on pages 3 through 6 be presented to supplement the basic
financial statements. Such information, although not a part of the basic financial statements, is
required by the Governmental Accounting Standards Board, who considers it to be an essential part
of financial reporting for placing the basic financial statements in an appropriate operational,
economic, or historical context. We have applied certain limited procedures to the required
supplementary information in accordance with auditing standards generally accepted in the United
States of America, which consisted of inquiries of management about the methods of preparing the
information and comparing the information for consistency with management’s responses to our
inquiries, the basic financial statements, and other knowledge we obtained during our audit of the
basic financial statements. We do not express an opinion or provide any assurance on the
information because the limited procedures do not provide us with sufficient evidence to express an
opinion or provide any assurance.
To the Board of Trustees of the
Metropolitan St. Louis Sewer District
Page 2
Our audit was conducted for the purpose of forming an opinion on the Plan’s financial statements as a
whole. The accompanying supplementary information, as listed on the accompanying table of contents, is
presented for purposes of additional analysis and is not a required part of the financial statements. The
accompanying information is the responsibility of management and was derived from and relates directly
to the underlying accounting and other records used to prepare the financial statements. The information
has not been subjected to the auditing procedures applied in the audit of the financial statements and
accordingly, we do not express an opinion or provide any assurance on it.
June 26, 2012
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
DEFINED CONTRIBUTION PLAN
Page 3
MANAGEMENT’S DISCUSSION AND ANALYSIS
For The Year Ended December 31, 2011
This report consists of a series of financial statements related to The Metropolitan St. Louis Sewer
District’s Defined Contribution Plan (the Plan). The Statement of Plan Net Assets and the Statement
of Changes in Plan Assets (on pages 7 and 8) provide information about this Plan’s net assets and
changes in its net assets during the year. These statements are prepared using the accrual basis of
accounting.
The Management’s Discussion and Analysis of the Plan’s financial performance provides an
overview of the Plan’s financial activities for the fiscal year ended December 31, 2011. Please read it
in conjunction with the Plan’s financial section.
FINANCIAL HIGHLIGHTS 2011
Effective January 1, 2011, the Plan was established per Ordinance 13180. This plan allows
the Metropolitan St. Louis Sewer District (the District) to encourage its employees to
establish a regular method of savings and to create a fund available for their use at retirement
or in the event of death. Initial participation consisted of twenty-three employees who
transferred balances totaling $70,869 from the Metropolitan St. Louis Sewer District
Employees’ Pension Plan. Per the Ordinance, all new employees are entitled to participate in
the Plan and the employer match. At December 31, the Plan consisted of 70 participants with
account balances totaling over $203,000 in net assets.
Total increase to the Plan’s net assets (page 7) amounted to $203,721 consisting of Plan
contributions and other additions of $239,482 offset by deductions of $30,568 and net
investment losses of $5,193.
Administrative expenses (deductions to the Plan’s net assets) totaled $25,734. This consisted
primarily of Vanguard record-keeping and compliance testing of $14,843. The balance was
made up of legal fees related to the research, development and spin-off of the newly created
Plan from the Employees’ Pension Plan.
ANALYSIS OF FINANCIAL ACTIVITIES
The Plan had a fair value loss in investments of $8,256. This included all investment funds
except the Vanguard Total Bond Market Index Fund, which showed a slight gain of $213.
The Vanguard International Growth Fund had the greatest loss in value for any one individual
fund at $1,847. The group of Vanguard Target Retirement Funds, in the aggregate, had a
decline in value of $3,288. See the chart below for the annual change in value for each fund.
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
DEFINED CONTRIBUTION PLAN
Management’s Discussion And Analysis (Continued)
Page 4
Value at Net
Fund Name Cost December 31 Change
Vanguard Total Bd Mkt Indx Inv 9,554$ 9,767$ 213$ 5.04 %
Vanguard Prime Money Mkt 549 549 - 0.28
Vanguard Retirement Savings Trust 7,041 7,041 - 3.63
Vanguard LifeSt Income Fund 1,225 1,216 (9) 0.63
Vanguard Target Retirement Inc 4,713 4,699 (14) 2.43
Vanguard Target Retirement 2020 1,064 1,048 (16) 0.54
Vanguard Windsor II Fund Inv 3,842 3,782 (60) 1.95
Vanguard Balanced Index Inv 7,430 7,367 (63) 3.80
Vanguard LifeSt Conserv Growth 4,960 4,864 (96) 2.51
Vanguard Target Retirement 2040 9,824 9,716 (108) 5.02
Vanguard LifeSt Mod Growth 2,706 2,591 (115) 1.34
Vanguard U.S. Growth Inv 2,221 2,093 (128) 1.08
Vanguard Target Retirement 2030 6,638 6,369 (269) 3.29
Vanguard 500 Index Inv 12,459 12,116 (343) 6.25
Vanguard Target Retirement 2050 13,462 13,031 (431) 6.73
Vanguard Target Retirement 2035 10,590 10,154 (436) 5.24
Vanguard LifeSt Growth Fund 7,127 6,666 (461) 3.44
Vanguard Target Retirement 2045 24,620 23,851 (769) 12.31
Vanguard Mid-Cap Index Fd Inv 13,100 12,276 (824) 6.34
Vanguard Sm-Cap Index Inv 18,591 17,356 (1,235) 8.96
Vanguard Target Retirement 2025 27,346 26,101 (1,245) 13.47
Vanguard Int'l Growth Fund Inv 12,931 11,083 (1,847) 5.72
Totals 201,993$ 193,736$ (8,256)$ 100.00 %
% of Current
Value
Change in Fund Asset Values
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
DEFINED CONTRIBUTION PLAN
Management’s Discussion And Analysis (Continued)
Page 5
INVESTMENT ASSET ALLOCATION
Investment decisions are participant directed. The participants are offered a diversified
portfolio of investment options from which to select. These investment options represent a
series of mutual funds sponsored and managed by the Vanguard Group. A breakdown of the
participant directed assets allocation as of the last day of the fiscal year ended 2011 follows:
$94,969
49%
$15,337
8%
$7,590
4%
$9,767
5%
$7,367
4%
$17,991
9%
$29,632
15%
$11,083
6%Target
LifeStrategy
Capital Preservation
Fixed Income
Balanced
Large Cap
Small/Mid Cap
International
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
DEFINED CONTRIBUTION PLAN
Management’s Discussion And Analysis (Continued)
Page 6
Plan Additions, Deductions, and Net Assets are as follows:
2011
Contributions and Other Additions 239,482$
Net Investment Loss (5,193)
Total Additions (Subtractions) 234,289
2011
Distribution to Participants 4,834
Administrative Expenses 25,734
Total Deductions 30,568
2011
Net Increase 203,721
Net Assets Available for Benefits, January 1 -
Net Assets Available for Benefits, December 31 203,721$
Plan Additions for 2011
Plan Deductions for 2011
Net Assets for 2011
FIDUCIARY RESPONSIBILITIES
The Board of Trustees and senior management are fiduciaries of the Plan and Trust. Fiduciaries are
charged with the responsibility of assuring that the assets of the Plan are used exclusively for the
benefit of plan participants and the beneficiaries.
REQUEST FOR INFORMATION
This financial report is designed to provide the Board of Trustees, participants, investment managers,
and other interested parties with an overview of the Plan’s finances and accountability for the money
received. Questions concerning any of the information provided in this report or requests for
additional information should be addressed to:
Karl J. Tyminski, Secretary-Treasurer
The Metropolitan St. Louis Sewer District
2350 Market Street
St. Louis, MO 63103-2555
E-mail: kjtymi@stlmsd.com
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
DEFINED CONTRIBUTION PLAN
See the accompanying notes to financial statements. Page 7
STATEMENT OF PLAN NET ASSETS
December 31, 2011
ASSETS
Investments at fair value:
Mutual Funds 186,695$
Investments at contract value:
Common/collective trust 7,041
Total Investments 193,736
Receivables
Employer Contributions 9,985
Total Receivables 9,985
NET ASSETS HELD IN TRUST AVAILABLE FOR BENEFITS 203,721$
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
DEFINED CONTRIBUTION PLAN
See the accompanying notes to financial statements. Page 8
STATEMENT OF CHANGES IN PLAN NET ASSETS
For The Year Ended December 31, 2011
ADDITIONS TO NET ASSETS ATTRIBUTED TO:
Investment income:
Net depreciation in fair value of investments (8,504)$
Interest and dividends 3,559
Total Investment loss (4,945)
Less - investment managers' and advisors' fees 248
Net Investment loss (5,193)
Contributions and Other Additions:
Employer contributions 167,298
Transfers from Employee's Pension Plan 70,869
Other Additions 1,315
Total Contributions and Other Additions 239,482
Total Additions 234,289
DEDUCTIONS FROM NET ASSETS ATTRIBUTED TO:
Distributions to participants and beneficiaries 4,834
Administrative expenses 25,734
Total Deductions 30,568
NET INCREASE 203,721
NET ASSETS AVAILABLE FOR BENEFITS, January 1 -
NET ASSETS AVAILABLE FOR BENEFITS, December 31 203,721$
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
DEFINED CONTRIBUTION PLAN
Page 9
NOTES TO FINANCIAL STATEMENTS
December 31, 2011
1. Summary of Accounting Policies
The following accounting policies, which conform to generally accepted accounting
principles, have been used consistently in the preparation of The Metropolitan St. Louis
Sewer District’s Defined Contribution Plan’s (the Plan’s) financial reports.
Basis of Accounting
The financial reports of the Plan are prepared under the accrual method of accounting.
Estimates and Assumptions
The preparation of financial reports in conformity with generally accepted accounting
principles requires management to make estimates and assumptions that affect the reported
amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date
of the financial reports and the reported amounts of additions and deductions during the
reporting period. Actual results could differ from those estimates.
Investment Valuation and Income Recognition
The Plan’s investments in mutual funds are stated at fair value. Shares of registered
investment companies are valued at quoted market prices which represent the net asset value
of shares held by the Plan at year-end. Units of the Retirement Savings Trust are valued at
contract value.
Purchases and sales of investments are recorded on a trade-date basis. Interest income is
accrued when earned. Dividend income is recorded on the ex-dividend date. Capital gain
distributions are included in dividend income. Realized losses of $248 are included in
investment income.
Payment of Benefits
Benefits are recorded when paid.
Subsequent Events
Management has evaluated subsequent events through June 26, 2012, the date through which
the financial statements were available for issue.
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
DEFINED CONTRIBUTION PLAN
Notes To Financial Statements (Continued)
Page 10
2. Description of Plan
The following description of the Plan provides only general information. Participants should
refer to the Plan agreement for a more complete description of the Plan’s provisions.
General
The Plan is a defined contribution benefit plan established by the District’s Board of Trustees
through Ordinance 13180 and became effective January 1, 2011. The following employees
are eligible to participate in the Plan: (i) employees first hired on or after January 1, 2011, and
(ii) employees hired prior to January 1, 2011 who elect to terminate participation in the
Metropolitan St. Louis Sewer District Employees’ Pension Plan, effective as of April 1, 2011,
in accordance with the provisions of such Pension Plan, and (iii) employees rehired on or after
January 1, 2011 who are not eligible to accrue benefits under the Metropolitan St. Louis
Sewer District Employees’ Pension Plan. An employee shall become a participant in the Plan
on the first day on which he performs an hour of service for the District.
The District’s Board of Trustees, primarily to improve benefits to members, amends the Plan
in all its respects. A pension committee consisting of two members of the District’s Board of
Trustees, two elected employee members and four members of the District’s management
staff administer the Plan. A committee of the District’s Board of Trustees, with the aid of an
investment advisor, reviews and evaluates the Plan’s investments and the related rates of
return on a periodic basis.
This Plan is intended to provide a means whereby the District may provide retirement benefits
to eligible employees and encourage such employees to establish a regular method of savings,
thereby providing a measure of financial security for such employees and their beneficiaries
upon retirement or in the event of death or disability.
Contributions
Employer Basic Contributions. For each payroll period, the District contributes an amount
equal to 7% of the covered compensation earned during such period by each participant
entitled to an allocation of such contribution.
Employer Matching Contributions. For each payroll period, the District contributes an
amount equal to 50% of the covered compensation of such participant withheld as an annual
deferral (as defined in the Deferred Compensation Plan); provided that, before-tax
contributions in excess of 4% of the covered compensation of the participant for the payroll
period shall not be considered for purposes of Employer Matching Contributions. Employer
Matching Contributions shall be up to the maximum amount of compensation that may be
taken into account for the Plan year.
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
DEFINED CONTRIBUTION PLAN
Notes To Financial Statements (Continued)
Page 11
In no event shall the sum of the employer contributions and employee contributions
allocated to the account of a participant for the Plan year exceed the lesser of:
(a) The amount specified in the applicable Internal Revenue Code, as adjusted annually
for any applicable increases in the cost of living.
(b) 100% of the participant’s compensation for such year.
The compensation limit referred to in (b) shall not apply to any contribution from medical
benefits after separation from service.
Participant Accounts
The Plan administrator shall establish and maintain a separate individual account for each
participant (which may consist of various sub-accounts established by the Plan Administrator)
to reflect the participant’s share of contributions made and the income, loss, appreciation and
depreciation attributable to the account. The Plan Administrator shall keep accurate records
of all contributions, receipts, investment distributions and all other transactions. The amount
credited to the individual account of a participant from time to time as of the most recent
valuation date shall constitute the entire interest of the participant in the Plan.
Vesting
As of any time before the normal retirement age of a participant, the first day of the month
coinciding with or next following a person’s sixty-fifth birthday and completion of sixty
months of continuous service (other than upon death or permanent disability), the vested
percentage of the amounts credited to the participant’s employer basic contributions account
shall be determined in accordance with the following schedule:
Months of Service Vested Percentages
Less than 12 0%
12 but less than 24 20%
24 but less than 36 40%
36 but less than 48 60%
48 but less than 60 80%
60 100%
The amount credited to the employer matching contributions account shall be fully vested at
all times.
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
DEFINED CONTRIBUTION PLAN
Notes To Financial Statements (Continued)
Page 12
Investment Options
Vanguard offers participants in the Plan the following investment options:
Equity option: Vanguard Windsor II Fund, Vanguard Index 500 Fund, and Vanguard
U.S. Growth Fund – Investment objective is long-term capital appreciation.
Diversification option: Vanguard Small-Cap and Mid-Cap Index Fund and Vanguard
International Growth Fund – Investment objective is long-term capital appreciation.
Life Strategy option: Vanguard Life Strategy Growth Fund, Vanguard Life Strategy
Moderate Growth Fund, Vanguard Life Strategy Conservative Growth Fund, and
Vanguard Life Strategy Income Fund – During the fourth quarter of 2011.
Life Strategy Funds removed the Asset Allocation Fund and the Short-Term
Investment Grade Fund from their allocation, which will now become passive only.
NEPC (the District’s Investment Advisor) has issued a “Hold” recommendation on
these funds. NEPC defines a hold recommendation as: a serious issue surfacing which
brings into question the viability of the product.
Bond option: Vanguard Total Bond Market Index Fund – Investment objective is
income stability and conservation of principal.
Balanced option: Vanguard Balanced Index Fund – Investment objective is income,
conservation of principal and long-term growth.
Stable Value option: Vanguard Retirement Savings Trust – Investment objective is
income stability and conservation of principal.
Money Market option: Vanguard Prime Money Market Fund – Investment objective is
income while maintaining safety of principal.
Target retirement option: Vanguard Target Retirement 2020-2050 Fund – Investment
objective is capital appreciation and current income consistent with its current asset
allocation.
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
DEFINED CONTRIBUTION PLAN
Notes To Financial Statements (Continued)
Page 13
Payment of Benefits
Upon the severance from service of a participant, the amount credited to his/her individual
account shall be payable to the extent such that it is vested. The value of a participant’s
vested individual account balance shall be distributed as soon as administratively feasible.
The amount payable to a participant shall be the vested amount credited to his/her individual
account as of the valuation date immediately preceding such distribution. This amount shall
be distributed in any one or a combination of the following forms as the participant may elect:
(a) In one lump sum payment; or
(b) In annual, quarterly or monthly installments.
Forfeited Accounts
Upon a participant’s severance from service, the unvested amount credited to his/her
individual account shall be forfeited and credited to the employer basic contributions account
and shall be used to reduce employer basic contributions. If a participant is rehired before
incurring two consecutive years break-in service, the amount previously forfeited will be
restored. If rehired after two consecutive years break-in service, the amounts previously
forfeited will not be restored.
Administrative Expenses
The general administrative expenses shall be paid by the District. These expenses consist of
legal and accounting expenses as well as the administration of the Plan. Expenses attributable
to a participant’s choice of optional investments are charged to the respective participant’s
account.
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
DEFINED CONTRIBUTION PLAN
Notes To Financial Statements (Continued)
Page 14
3. INVESTMENTS
Investment balances
The following table lists all investments and their balances held by the custodians in the
Plan’s name:
ASSETS
Mutual Funds:
Vanguard Target Retirement 2025 Fund Total $ 26,101 *
Vanguard Target Retirement 2045 Fund Total 23,851 *
Vanguard Small-Cap Index Fund Investor Shares Total 17,356 *
Vanguard Target Retirement 2050 Fund Total 13,031 *
Vanguard Mid-Cap Index Fund Investor Shares Total 12,276 *
Vanguard 500 Index Fund Investor Shares Total 12,116 *
Vanguard International Growth Fund Investor Shares Total 11,083 *
Vanguard Target Retirement 2035 Fund Total 10,154
Vanguard Total Bond Market Index Fund Investor Shares Total 9,767
Vanguard Target Retirement 2040 Fund Total 9,716
Vanguard Balanced Index Fund Investor Shares Total 7,367
Vanguard LifeStrategy Growth Fund Total 6,666
Vanguard Target Retirement 2030 Fund Total 6,369
Vanguard LifeStrategy Conservative Growth Fund Total 4,864
Vanguard Target Retirement Income Fund Total 4,699
Vanguard Windsor II Fund Investor Shares Total 3,782
Vanguard LifeStrategy Moderate Growth Fund Total 2,591
Vanguard U.S. Growth Fund Investor Shares Total 2,093
Vanguard LifeStrategy Income Fund Total 1,216
Vanguard Target Retirement 2020 Fund Total 1,048
Vanguard Prime Money Market Fund Total 549
186,695
Common/collective trust:
Vanguard Retirement Savings Trust Total 7,041
Total Investments $193,736
* Represents 5% or more of the Plan’s net assets as of December 31, 2011
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
DEFINED CONTRIBUTION PLAN
Notes To Financial Statements (Continued)
Page 15
Categories of Asset Risk - Debt Securities Interest Rate and Credit Risk
The Plan will minimize the risk that the market value of securities in the portfolio will fall due
to changes in general interest rates by selecting mutual funds for the investment portfolio that
manage credit quality and duration of fixed income investments.
The Plan will minimize credit risk, the risk of loss due to failure of the security issuer or
backer, by selecting mutual funds for the investment portfolio that manage their respective
fund under a predetermined average credit risk investment management policy.
The table below provides information on the duration and credit ratings associated with the
Plan’s investment in debt-backed mutual funds, excluding obligations of the U.S. government
or obligations explicitly guaranteed by the U.S. government within these funds at December
31, 2011:
S & P Average
Average Effective
Debt-Backed Value at Credit Not Duration
Mutual Funds December 31 Rating Rated in Years
Vanguard Target Retirement 2025 26,101$ AA yes 5.10
Vanguard Target Retirement 2045 23,851 AA yes 5.10
Vanguard Target Retirement 2050 13,031 AA yes 5.10
Vanguard Target Retirement 2035 10,154 AA yes 5.10
Vanguard Total Bd Mkt Indx Inv 9,767 AA yes 5.10
Vanguard Target Retirement 2040 9,716 AA yes 5.10
Vanguard Balanced Ix Inv 7,367 AA yes 5.10
Vanguard Retirement Savings Trust 7,041 AA yes 2.62
Vanguard Target Retirement 2030 6,369 AA yes 5.10
Vanguard LifeSt Conserv Growth 4,864 AA yes 5.10
Vanguard Target Retirement Inc 4,699 AA yes 6.10
Vanguard LifeSt Mod Growth 2,591 AA yes 5.10
Vanguard LifeSt Income Fund 1,216 AA yes 4.10
Vanguard Target Retirement 2020 1,048 AA yes 5.10
Vanguard Prime Money Mkt 549 AA yes 0.15
Credit Quality Percentage of Total Mutual Fund
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
DEFINED CONTRIBUTION PLAN
Notes To Financial Statements (Continued)
Page 16
4. Risks and Uncertainties
The Plan invests in various investment securities as directed by the Plan’s participants.
Investment securities are exposed to various risks such as interest rate, market, and credit risk.
Due to the level of risk associated with certain investment securities, it is at least reasonably
possible that changes in the values of investment securities will occur in the near term and
that such change could materially affect the participants’ account balances and amounts
reported in the Statement of Plan Net Assets.
5. Plan Termination
Although it has not expressed any intent to do so, the District has the right under the Plan to
terminate the Plan at any time. In the event of Plan termination, the Trustee shall liquidate the
assets and disburse all funds to participants or their beneficiaries.
6. Related Party Transactions
The Plan invests in shares of mutual funds managed by an affiliate of Vanguard Fiduciary
Trust Company (VFTC). VFTC acts as trustee for only those investments as defined by the
Plan. Transactions in such investments qualify as a related party transaction.
7. Tax Status
The plan received a favorable determination letter from the Internal Revenue Service on
January 31, 2012, in which the Internal Revenue Service stated that the plan, as then designed,
was in compliance with the applicable requirements of the Internal Revenue Code.
SUPPLEMENTAL INFORMATION
THE METROPOLITAN ST. LOUIS SEWER DISTRICT
DEFINED CONTRIBUTION PLAN
Page 17
SUPPLEMENTARY INFORMATION
EXPENSE RATIOS
This asset-based fee is a measure of what it costs an investment company to operate a
mutual fund. An expense ratio is determined through an annual calculation, where a fund's
operating expenses are divided by the average dollar value of its assets under management.
Operating expenses are taken out of a fund's assets, lowering the return in the fund. Lower
expense ratios reduce fees coming out of a fund, thus increasing the fund’s rate of return to the
participant. The listing below shows all funds and their asset value with their corresponding
expense ratio.
Value at
Fund Name December 31
Vanguard Target Retirement 2025 Fund Total 26,101$ 0.18 %
Vanguard Target Retirement 2045 Fund Total 23,851 0.19
Vanguard Small-Cap Index Fund Investor Shares Total 17,356 0.31
Vanguard Target Retirement 2050 Fund Total 13,031 0.19
Vanguard Mid-Cap Index Fund Investor Shares Total 12,276 0.26
Vanguard 500 Index Fund Investor Shares Total 12,116 0.17
Vanguard International Growth Fund Investor Shares Total 11,083 0.47
Vanguard Target Retirement 2035 Fund Total 10,154 0.19
Vanguard Total Bond Market Index Fund Investor Shares Total 9,767 0.22
Vanguard Target Retirement 2040 Fund Total 9,716 0.19
Vanguard Balanced Index Fund Investor Shares Total 7,367 0.26
Vanguard Retirement Savings Trust Total 7,041 0.31
Vanguard LifeStrategy Growth Fund Total 6,666 0.17
Vanguard Target Retirement 2030 Fund Total 6,369 0.18
Vanguard LifeStrategy Conservative Growth Fund Total 4,864 0.15
Vanguard Target Retirement Income Fund Total 4,699 0.17
Vanguard Windsor II Fund Investor Shares Total 3,782 0.35
Vanguard LifeStrategy Moderate Growth Fund Total 2,591 0.16
Vanguard U.S. Growth Fund Investor Shares Total 2,093 0.44
Vanguard LifeStrategy Income Fund Total 1,216 0.13
Vanguard Target Retirement 2020 Fund Total 1,048 0.17
Vanguard Prime Money Market Fund Total 549 0.20
Vanguard Total/Average Ratio 193,736$ 0.23 %
Expense
Ratio
Fund Values and Their Expense Ratios