HomeMy Public PortalAbout2012 2nd Quarter ReportDefined Contribution PlanSecond Quarter 2012 Plan Executive SummaryJuly 31, 2012Kristin Finney-Cooke, CAIA Senior ConsultantKristen Jackson, CFA Senior Analyst
Executive SummaryMetropolitan St. Louis Sewer District Defined Contribution PlanPLAN ASSETS: $370 THOUSAND54%6%40%3 Month Change: Up $75 ThousandTarget Date FundsLifestyle OptionsCore OptionsPerformance•Stocks sold-off during the quarter and losses were incurred by most Plan funds, with the exception of capital preservation, bonds and near-dated target date fundsManager Due Diligence•There was an announcement affecting all Vanguard Plan funds; the action was rated “No Action” by our Due Diligence CommitteeAdditional Items•July 1st was the deadline for receipt of 408(b)(2) notices. NEPC will support your review of Plan fees with our annual Plan and Fee Survey, which is underway.•This quarter we have included a regulatory update and fiduciary training on Defined Contribution fee benchmarkingCAPITAL MARKETS PERFORMANCE: QUARTERBONDSDOMESTIC EQUITYFOREIGNEQUITY 2010 TARGET DATE 2040 TARGET DATE2.0%BarCap Agg Index-2.8%S&P 500 Index-7.6%MSCI ACWI ex US Index-1.2%S&P TDF 2010 Index-4.0%S&P TDF 2040 IndexPLAN PERFORMANCE: QUARTERRANGE OF CORE FUND RETURNSRANGE OF TARGET DATE FUND RETURNSASSET WEIGHTED PLAN RETURN-7.9% to 2.1% -3.8% to 0.3% -3.0%Vanguard Intn’lGrowthVanguard Total Bond2040204520502055IncomeQUARTERLY UPDATESRECENT ACTIONS/RECOMMENDATIONSRecent Actions•The 2055 Target Date Fund was added to the Plan line-upWatch Status•No Plan funds are currently on NEPC’s “Watch” statusRecommendations•NEPC is not recommending any actions at this time either in view of the recent quarter’s developments or any of the longer-term trending data in this reportAs of June 30, 2012
The items below summarize any changes or announcements from your Plan managers/funds. A “Yes” indicates there was an announcement and a summary is provided separately. NEPC’s Due Diligence Committee meets every two weeks to review events as they relate to investment managers and determines 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 considers ourselves to be a fiduciary, as ERISA defines the term in Section 3(21). NEPC 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 a manager; manager cannot be in future searches unless a client specificallyrequests. 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.A legend key to our recommendations is provided below.Metropolitan St. Louis Sewer District Defined Contribution PlanPlan Manager/FundManager Changes/Announcements (Recent Quarter)NEPC Due Diligence Committee RecommendationsVanguard Target Retirement FundsYes No ActionVanguard LifeStrategy FundsYes No ActionVanguard Prime Money MarketYes No ActionVanguard Retirement Savings TrustYes No ActionVanguard Total Bond Market IndexYes No ActionVanguard Balanced IndexYes No ActionVanguard Windsor IIYes No ActionVanguard 500 IndexYes No ActionVanguard U.S. GrowthYes No ActionDue Diligence MonitorAs of June 30, 2012
The items below summarize any changes or announcements from your Plan managers/funds. A “Yes” indicates there was an announcement and a summary is provided separately. NEPC’s Due Diligence Committee meets every two weeks to review events as they relate to investment managers and determines 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 considers ourselves to be a fiduciary, as ERISA defines the term in Section 3(21). NEPC 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 a manager; manager cannot be in future searches unless a client specificallyrequests. 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.A legend key to our recommendations is provided below.Metropolitan St. Louis Sewer District Defined Contribution PlanDue Diligence MonitorPlan Manager/FundManager Changes/Announcements (Recent Quarter)NEPC Due Diligence Committee RecommendationsVanguard Mid Cap IndexYes No ActionVanguard Small Cap Index Yes No ActionVanguard International GrowthYes No ActionAs of June 30, 2012
Below is a summary of manager changes, announcements and due diligence events since the issuance of our last quarterly report. Manager Changes/AnnouncementsVanguard Index•Vanguard announced on June 22ndMr. George U. “Gus” Sauter, Managing Director and Chief Investment Officer, will retire at year end, effective December 31, 2012. Gus Sauter joined Vanguard in 1987 and has been applauded by Vanguard’s CEO Bill McNabb for his dedication and service in helping Vanguard to emerge as a world class investment management firm. Mr. Sauter will continue to oversee Vanguard’s Global Investment Management Groups through the end of the year.•Mr. Sauter responsibilities will transition to Mr. Mortimer J. “Tim” Buckley, Managing Director of Vanguard’s Retail investor Group, who has been with the firm since 1991. Mr. Buckley has served in many prominent leadership roles at Vanguard in his tenure. Mr. Buckley will assume oversight for Vanguard’s investment management teams who manage aggregate assets of approximately $1.6 trillion. •NEPC views this announcement as proper succession planning for the next generation at Vanguard. Mr. Buckley has been at Vanguard for over twenty years and is very close to the culture that has contributed to Vanguard's success. •“No Action” is recommended.Metropolitan St. Louis Sewer District Defined Contribution PlanDue Diligence CommentaryAs of June 30, 2012
" 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 ) 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 C o v e r e d s e r v i c e p r o v i d e r s a r e r e q u i r e d t o d e s c r i b e t h e s e r v i c e s p r o v i d e d a n d a l l d i r e c t a n d i n d i r e c t c o m p e n s a t i o n b y J u l y 1 , 2 0 1 2 I n a d d i t i o n t o c o l l e c t i n g a n d s a v i n g t h e d i s c l o s u r e s , p l a n f i d u c i a r i e s s h o u l d a s s e s s t h e r e a s o n a b l e n e s s o f f e e s a n d i d e n t i f y p o t e n t i a l c o n f l i c t s o f i n t e r e s t I f a c o v e r e d s e r v i c e p r o v i d e r f a i l s t o s u b m i t a d i s c l o s u r e , o r t h e p l a n f i d u c i a r y d e t e r m i n e s t h e d i s c l o s u r e i s i n c o m p l e t e , s e n d t h e s e r v i c e p r o v i d e r a r e q u e s t i n w r i t i n g . I f n o r e s p o n s e f r o m t h e s e r v i c e p r o v i d e r i s r e c e i v e d , n o t i f i c a t i o n t o t h e D e p a r t m e n t o f L a b o r i s s u g g e s t e d a t , h t t p : / / w w w . d o l . g o v / e b s a / D e l i n q u e n t S e r v i c e P r o v i d e r D i s c l o s u r e N o t i c e . d o c 4 0 4 ( a ) 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 a d m i n i s t r a t o r s t o p l a n p a r t i c i p a n t s T h e r e g u l a t i o n i s e f f e c t i v e A u g u s t 3 1 , 2 0 1 2 D i s c l o s e p l a n i n v e s t m e n t a n d f e e r e l a t e d i n f o r m a t i o n , i n c l u d i n g t h e a b i l i t y t o d i r e c t i n v e s t m e n t s , i n t h e D e p a r t m e n t o f L a b o r s p r e s c r i b e d n e w f o r m a t , r e f e r r e d t o a s a 4 0 4 ( a ) N o t i c e E n s u r e / v e r i f y d i s t r i b u t i o n o f y o u r N o t i c e R e g u l a t o r y U p d a t e M e t r o p o l i t a n S t . L o u i s S e w e r D i s t r i c t D e f i n e d C o n t r i b u t i o n P l a n D e p a r t m e n t o f L a b o r T o o l s & G u i d a n c e A s o f J u n e 3 0 , 2 0 1 2
" D e f i n e d C o n t r i b u t i o n P l a n f e e s T h e D e p a r t m e n t o f L a b o r ( D O L ) h a s c o m p l e t e d i t s t h r e e - p r o n g e d a p p r o a c h t o r e q u i r i n g m o r e d i s c l o s u r e a n d t r a n s p a r e n c y o f f e e s a n d o t h e r e x p e n s e s r e l a t e d t o r e t i r e m e n t p l a n a d m i n i s t r a t i o n a n d i n v e s t m e n t s A s a p l a n f i d u c i a r y y o u h a v e a n o b l i g a t i o n u n d e r E R I S A t o e n s u r e t h a t t h e f e e s o f a p l a n a r e r e a s o n a b l e f o r t h e s e r v i c e s p r o v i d e d . H e r e s h o w w e s u p p o r t y o u r e f f o r t s . " B e n c h m a r k i n g t o o l s N E P C D e f i n e d C o n t r i b u t i o n P l a n & F e e S u r v e y N E P C h a s c o n d u c t e d a n a n n u a l d e f i n e d c o n t r i b u t i o n f e e s u r v e y f o r t h e p a s t s i x y e a r s A s p a r t o f t h e s u r v e y , w e d e v e l o p a d e t a i l e d a n a l y s i s o f e a c h o f o u r c l i e n t s p l a n f e e s a n d a g g r e g a t e t h a t d a t a a c r o s s o u r c l i e n t b a s e T h e 2 0 1 2 s u r v e y i s u n d e r w a y V e n d o r S e a r c h A r e c o r d k e e p i n g v e n d o r s e a r c h i s a R e q u e s t f o r P r o p o s a l ( R F P ) p r o c e s s t h a t p u t s s e r v i c e s r e l a t e d t o p l a n r e c o r d k e e p i n g a n d a d m i n i s t r a t i o n o u t t o c o m p e t i t i v e b i d W h i l e p l a n s p o n s o r s c a n n e g o t i a t e p r i c i n g w i t h t h e i r s e r v i c e p r o v i d e r s o n a r e g u l a r b a s i s , p u t t i n g a p l a n o u t t o c o m p e t i t i v e b i d a t t h e e n d o f e v e r y c o n t r a c t t e r m ( i . e . t h r e e t o f i v e y e a r s ) i s a b e s t p r a c t i c e S e e t h e r e c e n t l y p u b l i s h e d v e n d o r s e a r c h c a s e s t u d y a n d p l a n f o r y o u r n e x t v e n d o r s e a r c h F i d u c i a r y T r a i n i n g : D e f i n e d C o n t r i b u t i o n F e e B e n c h m a r k i n g M e t r o p o l i t a n S t . L o u i s S e w e r D i s t r i c t D e f i n e d C o n t r i b u t i o n P l a n N E P C B e n c h m a r k i n g T o o l s A s o f J u n e 3 0 , 2 0 1 2
Market Environment
Investment Market Update: As of June 30, 2012Metropolitan St. Louis Sewer District Defined Contribution PlanQtr. Ytd1 Yr.3 Yr.5 Yr.10 Yr.World Equity BenchmarksMSCI World World-5.1%5.9%-5.0%11.0%-3.0%5.2%Qtr. Ytd1 Yr.3 Yr.5 Yr.10 Yr.Domestic Equity BenchmarksS&P 500 Large Core-2.8%9.5% 5.4% 16.4% 0.2% 5.3%Russell 2000 Small Core-3.5%8.5%-2.1%17.8% 0.5% 7.0%Russell 2000 Growth Small Growth-3.9%8.8%-2.7%18.1% 2.0% 7.4%Russell 2000 Value Small Value-3.0%8.2%-1.4%17.4%-1.0%6.5%Russell 1000 Large Core-3.1%9.4% 4.4% 16.6% 0.4% 5.7%Russell 1000 Growth Large Growth-4.0%10.1% 5.8% 17.5% 2.9% 6.0%Russell 1000 Value Large Value-2.2%8.7% 3.0% 15.8%-2.2%5.3%S&P Mid Cap 400 Mid Core-4.9%7.9%-2.3%19.4% 2.6% 8.2%NAREIT Composite REIT 4.5% 15.3% 12.4% 31.2% 2.0% 9.5%Qtr. Ytd1 Yr.3 Yr.5 Yr.10 Yr.International Equity BenchmarksMSCI EAFE International Developed-7.1%3.0%-13.8%6.0%-6.1%5.1%MSCI EM Emerging Equity-8.9%3.9%-16.0%9.8%-0.1%14.1%S&P EPAC SmallCap Small Cap Int'l-8.1%5.3%-15.3%9.1%-5.1%8.7%MSCI ACWI ex-US World ex-US-7.6%2.8%-14.6%7.0%-4.6%6.7%Qtr. Ytd1 Yr.3 Yr.5 Yr.10 Yr.Domestic Fixed Income BenchmarksBarclays Aggregate Core Bonds 2.1% 2.4% 7.5% 6.9% 6.8% 5.6%Barclays 1-10 Yr Muni. Municipal Bond 1.3% 1.8% 6.1% 5.5% 5.6% 4.5%Barclays US High Yield High Yield 1.8% 7.3% 7.3% 16.3% 8.4% 10.2%Barclays US TIPS 1-10 Yr Inflation 1.3% 2.8% 6.3% 7.4% 7.0% 6.2%Barclays Interm. Gov/Credit Intermediate Gov/Cred 1.5% 2.1% 5.4% 5.8% 6.0% 5.1%Barclays Long Gov/Credit Long Gov/Credit 7.3% 5.0% 24.6% 14.4% 11.0% 8.7%Barclays Long Credit Long Credit 5.0% 5.8% 19.2% 15.1% 10.0% 8.6%Barclays US 20+ Yr Treas Long Treasuries 11.8% 4.3% 37.2% 14.1% 12.5% 9.3%BofA ML US 3-Month T-Bill Cash 0.0% 0.0% 0.1% 0.1% 1.0% 1.9%Barclays 20+ Yr STRIPS STRIPS 18.8% 5.3% 67.3% 20.1% 17.1% n/aQtr. Ytd1 Yr.3 Yr.5 Yr.10 Yr.Global Fixed Income BenchmarksCitigroup WGBI World Gov. Bonds 0.9% 0.4% 2.7% 5.4% 7.3% 6.8%JPM GBI-EM Glob. Diversified Em. Mkt. Bonds (Local)-1.2%7.0%-1.7%10.8% 8.8% n/aAs of June 30, 2012
Economic EnvironmentMetropolitan St. Louis Sewer District Defined Contribution PlanAs of June 30, 2012
Economic EnvironmentMetropolitan St. Louis Sewer District Defined Contribution PlanAs of June 30, 2012
U.S. Stock Market PerformanceMetropolitan St. Louis Sewer District Defined Contribution PlanAs of June 30, 2012
U.S. Stock Market PerformanceMetropolitan St. Louis Sewer District Defined Contribution PlanAs of June 30, 2012
Non – U.S. Stock Market PerformanceMetropolitan St. Louis Sewer District Defined Contribution PlanAs of June 30, 2012
Fixed Income PerformanceMetropolitan St. Louis Sewer District Defined Contribution PlanAs of June 30, 2012
Plan Reporting
Asset SummaryMetropolitan St. Louis Sewer District Defined Contribution PlanPeriods Ending Beginning Year Beginning Quarter End Quarter30-Jun-12 ($000) (%) ($000) (%) ($000) (%)Composite $194 $295 $370 Lifecycle Options $95 49% $159 54% $200 54%Vanguard Target Retirement Income Inv $5 2% $7 2% $7 2%Vanguard Target Retirement 2015 Inv $0 0% $0 0% $0 0%Vanguard Target Retirement 2020 Inv $1 1% $4 1% $7 2%Vanguard Target Retirement 2025 Inv $26 13% $37 13% $44 12%Vanguard Target Retirement 2030 Inv $6 3% $11 4% $4 1%Vanguard Target Retirement 2035 Inv $10 5% $16 5% $22 6%Vanguard Target Retirement 2040 Inv $10 5% $20 7% $28 8%Vanguard Target Retirement 2045 Inv $24 12% $41 14% $56 15%Vanguard Target Retirement 2050 Inv $13 7% $23 8% $32 9%Vanguard Target Retirement 2055 Inv $0 0% $0 0% $0 0%Lifestyle Options$15 8% $19 6% $22 6%Vanguard LifeStrategy Income Inv $1 1% $1 1% $2 1%Vanguard LifeStrategy Cnsrv Gr Inv $5 3% $6 2% $8 2%Vanguard LifeStrategy Moderate Gr Inv $3 1% $4 1% $5 1%Vanguard LifeStrategy Growth Inv $7 3% $7 2% $8 2%Core Options $83 43% $117 40% $147 40%Vanguard Prime Money Market Inv $1 0% $1 0% $1 0%Vanguard Retirement Savings Trust $7 4% $12 4% $17 5%Vanguard Total Bond Market Index Inv $10 5% $12 4% $27 7%Vanguard Balanced Index Inv $7 4% $10 3% $11 3%Vanguard 500 Index Investor $12 6% $20 7% $22 6%Vanguard Windsor II Investor $4 2% $6 2% $7 2%Vanguard US Growth Inv $2 1% $3 1% $3 1%Vanguard Mid Cap Index Inv $12 6% $17 6% $17 5%Vanguard Small Cap Index Inv $17 9% $23 8% $26 7%Vanguard International Growth Inv $11 6% $15 5% $15 4%As of June 30, 2012
Performance Summary – Target Date FundsMetropolitan St. Louis Sewer District Defined Contribution PlanNotes: 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 QuarterRankYear-to-DateRankLastYearRankThreeYearsRankFiveYearsRankTenYearsRank100% Total Plan$37054.2% Target Date Funds$2002.0% Vanguard Target Retirement Income InvUS OE Retirement Income0.3164.3575.669.6575.09 n/a $7Vanguard Target Income Composite Index 0.3 4.3 5.5 9.6 4.9 n/a0.1% Vanguard Target Retirement 2015 InvUS OE Target Date 2011-2015-1.5505.5372.71611.8232.517 n/a $0Vanguard Target 2015 Composite Index -1.5 5.6 2.6 11.7 2.4 n/a1.8% Vanguard Target Retirement 2020 InvUS OE Target Date 2016-2020-2.1605.9321.82412.2291.816 n/a $7Vanguard Target 2020 Composite Index -2.1 5.9 2.0 12.3 1.8 n/a11.9% Vanguard Target Retirement 2025 InvUS OE Target Date 2021-2025-2.6506.3361.01812.7251.218 n/a $44Vanguard Target 2025 Composite Index -2.6 6.2 1.2 12.8 1.2 n/a1.2% Vanguard Target Retirement 2030 InvUS OE Target Date 2026-2030-3.1486.6310.21813.1220.517 n/a $4Vanguard Target 2030 Composite Index -3.2 6.6 0.4 13.3 0.5 n/a5.9% Vanguard Target Retirement 2035 InvUS OE Target Date 2031-2035-3.6497.035-0.72313.4140.122 n/a $22Vanguard Target 2035 Composite Index -3.7 7.0 -0.4 13.6 0.1 n/a7.5% Vanguard Target Retirement 2040 InvUS OE Target Date 2036-2040-3.8397.126-0.91913.4210.213 n/a $28Vanguard Target 2040 Composite Index -3.8 7.0 -0.6 13.6 0.1 n/a15.2% Vanguard Target Retirement 2045 InvUS OE Target Date 2041-2045-3.8257.132-0.81213.4180.123 n/a $56Vanguard Target 2045 Composite Index -3.8 7.0 -0.6 13.6 0.1 n/a8.5% Vanguard Target Retirement 2050 InvUS OE Target Date 2046-2050-3.8237.131-0.91613.4220.212 n/a $32Vanguard Target 2050 Composite Index -3.8 7.0 -0.6 13.6 0.1 n/a0.0% Vanguard Target Retirement 2055 InvUS OE Target Date 2051+-3.8277.142-0.716n/a n/a n/a $0Vanguard Target 2055 Composite Index -3.8 7.0 -0.6 n/a n/a n/aAnnualized ReturnsEndingMarket ValueAs of June 30, 2012
Performance Summary – Core FundsMetropolitan St. Louis Sewer District Defined Contribution PlanNotes: 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 QuarterRankYear-to-DateRankLastYearRankThreeYearsRankFiveYearsRankTenYearsRank100% Total Plan$3706.0% Lifestyle Funds$220.5% Vanguard LifeStrategy Income InvUS OE Conservative Allocation0.893.4824.1218.3764.1265.242$2Vanguard Income Benchmark 0.6 3.5 5.5 8.1 5.0 5.5 2.0% Vanguard LifeStrategy Cnsrv Gr InvUS OE Conservative Allocation-0.5454.5562.5519.9522.7655.433$8Vanguard Conservative Growth Benchmark -0.8 4.4 3.5 9.2 3.1 5.4 1.2% Vanguard LifeStrategy Moderate Gr InvUS OE Moderate Allocation-1.8295.6541.24711.6451.5475.834$5Vanguard Moderate Growth Benchmark -1.8 5.3 2.5 10.8 1.6 5.3 2.3% Vanguard LifeStrategy Growth InvUS OE Aggressive Allocation-3.2246.625-0.93012.828-0.3515.728$8Vanguard Moderate Growth Benchmark -1.8 5.3 2.5 10.8 1.6 5.3Annualized ReturnsEndingMarket ValueAs of June 30, 2012
Performance Summary – Core FundsMetropolitan St. Louis Sewer District Defined Contribution PlanNotes: 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 QuarterRankYear-to-DateRankLastYearRankThreeYearsRankFiveYearsRankTenYearsRank100% Total Plan$3704.7% Capital Preservation Funds$180.2% Vanguard Prime Money Market InvUS Money Market Taxable0.0 0.0 0.0 0.1 1.2 1.9 $1BofAML US Treasury Bill 3 Mon 0.0 0.0 0.1 0.1 1.0 1.9 4.5% Vanguard Retirement Savings TrustStable Value0.6 1.3 2.8 2.9 3.4 3.8 $17RL 3yr GIC 0.4 0.8 1.8 2.9 3.6 3.8 7.2% Fixed Income Funds$277.2% Vanguard Total Bond Market Index InvUS OE Intermediate-Term Bond2.1322.4817.4316.7796.7415.444$27Barclays US Agg Bond TR USD 2.1 2.4 7.5 6.9 6.8 5.6 2.9% Balanced Funds$112.9% Vanguard Balanced Index InvUS OE Moderate Allocation-1.1156.5275.8613.1153.586.217$1160% S&P 500-40% BarCap Agg -0.8 6.7 6.7 12.9 3.3 5.8 8.9% Large Cap Equity Funds$332.0% Vanguard Windsor II InvestorUS OE Large Value-2.9369.184.81715.421-1.4395.719$7Russell 1000 Value TR USD -2.2 8.7 3.0 15.8 -2.2 5.3 6.0% Vanguard 500 Index InvestorUS OE Large Blend-2.8179.4175.31216.3160.1275.228$22S&P 500 TR-2.8 9.5 5.4 16.4 0.2 5.3 0.9% Vanguard US Growth InvUS OE Large Growth-6.26910.9222.83014.6501.3454.370$3Russell 1000 Growth TR USD -4.0 10.1 5.8 17.5 2.9 6.0 11.9% Small/Mid Cap Equity Funds$444.7% Vanguard Mid Cap Index InvUS OE Mid-Cap Blend-5.5587.148-2.93719.4100.5347.721$17MSCI US Mid Cap 450 GR USD -5.5 7.2 -2.7 19.7 0.7 8.2 7.1% Vanguard Small Cap Index InvUS OE Small Blend-3.5219.014-1.52619.7151.8178.019$26MSCI US Small Cap 1750 GR USD -3.5 9.1 -1.4 19.8 1.8 8.6 4.2% International Equity Funds$154.2% Vanguard International Growth InvUS OE Foreign Large Growth-7.9735.053-13.6709.258-3.3526.546$15MSCI ACWI Ex USA NR USD -7.6 2.8 -14.6 7.0 -4.6 6.7 Annualized ReturnsEndingMarket ValueAs of June 30, 2012
Appendix
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
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
2012
03 06
-10.0
-5.0
0.0
5.0
10.0
15.0
20.0
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
2012
03 06
0.0
5.0
10.0
15.0
20.0
25.0
Vanguard Target Retirement Income Inv Vanguard Target Income Composite Index
Vanguard Target Income Composite Index US OE Retirement IncomeVanguard Target Retirement Income Inv VTINX
Risk & Return Illustration (3 Years)
Time Period: 7/1/2009 to 6/30/2012
ReturnStd Dev0.0 1.0 2.0 3.0 4.0 5.0 6.0 7.0
0.0
2.0
4.0
6.0
8.0
10.0
12.0 Vanguard Target Retirement Income Inv
Vanguard Target Income Composite Index
Top 10 Holdings
Portfolio Date: 3/31/2012
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 2.1 2.3 44.9
Equity -3.2 9.3 21.3
Fixed Income 3.2 3.9 19.9
Equity -7.5 3.6 9.0
Money Market 0.0 0.0 4.9
0.0
As of 6/30/2012
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 2015 Inv
Vanguard Target 2015 Composite Index
9.0 12 4.9 44 11.4 30 7.5 23 -24.1 15 21.3 76 12.5 34 1.7 19
9.1 5.0 11.5 7.5 -24.4 21.4 12.6 1.5
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
2012
03 06
-15.0
-7.5
0.0
7.5
15.0
22.5
Vanguard Target Retirement 2015 Inv Vanguard Target 2015 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
2012
03 06
0.0
5.0
10.0
15.0
20.0
25.0
30.0
Vanguard Target Retirement 2015 Inv Vanguard Target 2015 Composite Index
Vanguard Target 2015 Composite Index US OE Target Date 2011-2015Vanguard Target Retirement 2015 Inv VTXVX
Risk & Return Illustration (3 Years)
Time Period: 7/1/2009 to 6/30/2012
ReturnStd Dev0.0 2.0 4.0 6.0 8.0 10.0 12.0 14.0
0.0
2.0
4.0
6.0
8.0
10.0
12.0
14.0 Vanguard Target Retirement 2015 Inv
Vanguard Target 2015 Composite Index
Top 10 Holdings
Portfolio Date: 3/31/2012
Broad
Category
Return
Qtr
Return
YTD
Portfolio
Weighting %
Vanguard Total Bond Market II Idx Inv
Vanguard Total Stock Mkt Idx Inv
Vanguard Total Intl Stock Index Inv
Vanguard Inflation-Protected Secs Inv
CMT Market Liquidity Rate
Fixed Income 2.1 2.3 39.9
Equity -3.2 9.3 39.9
Equity -7.5 3.6 16.7
Fixed Income 3.2 3.9 3.5
0.0
As of 6/30/2012
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
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
2012
03 06
-22.5
-15.0
-7.5
0.0
7.5
15.0
22.5
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
2012
03 06
0.0
5.0
10.0
15.0
20.0
25.0
30.0
Vanguard Target Retirement 2025 Inv Vanguard Target 2025 Composite Index
Vanguard Target 2025 Composite Index US OE Target Date 2021-2025Vanguard Target Retirement 2025 Inv VTTVX
Risk & Return Illustration (3 Years)
Time Period: 7/1/2009 to 6/30/2012
ReturnStd Dev0.0 3.0 6.0 9.0 12.0 15.0 18.0
0.0
3.0
6.0
9.0
12.0
15.0 Vanguard Target Retirement 2025 Inv
Vanguard Target 2025 Composite Index
Top 10 Holdings
Portfolio Date: 3/31/2012
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 -3.2 9.3 50.9
Fixed Income 2.1 2.3 27.7
Equity -7.5 3.6 21.3
0.1
As of 6/30/2012
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
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
2012
03 06
-20.0
-10.0
0.0
10.0
20.0
30.0
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
2012
03 06
5.0
10.0
15.0
20.0
25.0
30.0
Vanguard Target Retirement 2035 Inv Vanguard Target 2035 Composite Index
Vanguard Target 2035 Composite Index US OE Target Date 2031-2035Vanguard Target Retirement 2035 Inv VTTHX
Risk & Return Illustration (3 Years)
Time Period: 7/1/2009 to 6/30/2012
ReturnStd Dev0.0 3.0 6.0 9.0 12.0 15.0 18.0 21.0
0.0
3.0
6.0
9.0
12.0
15.0
18.0 Vanguard Target Retirement 2035 Inv
Vanguard Target 2035 Composite Index
Top 10 Holdings
Portfolio Date: 3/31/2012
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 -3.2 9.3 61.2
Equity -7.5 3.6 26.0
Fixed Income 2.1 2.3 12.8
0.1
As of 6/30/2012
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
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
2012
03 06
-20.0
-10.0
0.0
10.0
20.0
30.0
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
2012
03 06
5.0
10.0
15.0
20.0
25.0
30.0
Vanguard Target Retirement 2045 Inv Vanguard Target 2045 Composite Index
Vanguard Target 2045 Composite Index US OE Target Date 2041-2045Vanguard Target Retirement 2045 Inv VTIVX
Risk & Return Illustration (3 Years)
Time Period: 7/1/2009 to 6/30/2012
ReturnStd Dev0.0 3.0 6.0 9.0 12.0 15.0 18.0 21.0
0.0
3.0
6.0
9.0
12.0
15.0 Vanguard Target Retirement 2045 Inv
Vanguard Target 2045 Composite Index
Top 10 Holdings
Portfolio Date: 3/31/2012
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 -3.2 9.3 62.9
Equity -7.5 3.6 26.8
Fixed Income 2.1 2.3 10.2
0.1
As of 6/30/2012
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 9.4 7.6 5.1 2.8 6.3 6.2 -5.8 11.2 8.1 5.1
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
Rolling Returns (3 Years)
Top Quartile 2nd Quartile 3rd Quartile Bottom Quartile
Return06 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
2012
03 06
-20.0
0.0
20.0
40.0
60.0
Vanguard LifeStrategy Income Inv Vanguard Income Custom Benchmark
Rolling Risk (3 Years)
Top Quartile 2nd Quartile 3rd Quartile Bottom Quartile
Std Dev06 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
2012
03 06
0.0
5.0
10.0
15.0
20.0
25.0
30.0
Vanguard LifeStrategy Income Inv Vanguard Income Custom Benchmark
Vanguard Income Custom Benchmark US OE Conservative AllocationVanguard LifeStrategy Income Inv VASIX
Risk & Return Illustration (5 Years)
Time Period: 7/1/2007 to 6/30/2012
ReturnStd Dev0.0 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
Asset Allocation
Portfolio Date: 3/31/2012
%
Stock 19.7
Bond 74.5
Cash 5.1
Other 0.8
Total 100.0
As of 6/30/2012
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
Rolling Returns (3 Years)
Top Quartile 2nd Quartile 3rd Quartile Bottom Quartile
Return06 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
2012
03 06
-20.0
0.0
20.0
40.0
60.0
Vanguard LifeStrategy Cnsrv Gr Inv Vanguard Conservative Growth Custom Benchmark
Rolling Risk (3 Years)
Top Quartile 2nd Quartile 3rd Quartile Bottom Quartile
Std Dev06 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
2012
03 06
0.0
5.0
10.0
15.0
20.0
25.0
30.0
Vanguard LifeStrategy Cnsrv Gr Inv Vanguard Conservative Growth Custom Benchmark
Vanguard Conservative Growth Custom
Benchmark US OE Conservative AllocationVanguard LifeStrategy Cnsrv Gr Inv VSCGX
Risk & Return Illustration (5 Years)
Time Period: 7/1/2007 to 6/30/2012
ReturnStd Dev0.0 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
Asset Allocation
Portfolio Date: 3/31/2012
%
Stock 39.5
Bond 55.9
Cash 3.9
Other 0.8
Total 100.0
As of 6/30/2012
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
Rolling Returns (3 Years)
Top Quartile 2nd Quartile 3rd Quartile Bottom Quartile
Return06 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
2012
03 06
-20.0
-10.0
0.0
10.0
20.0
30.0
Vanguard LifeStrategy Moderate Gr Inv Vanguard Moderate Growth Custom Benchmark
Rolling Risk (3 Years)
Top Quartile 2nd Quartile 3rd Quartile Bottom Quartile
Std Dev06 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
2012
03 06
0.0
7.5
15.0
22.5
30.0
37.5
Vanguard LifeStrategy Moderate Gr Inv Vanguard Moderate Growth Custom Benchmark
Vanguard Moderate Growth Custom Benchmark US OE Moderate AllocationVanguard LifeStrategy Moderate Gr Inv VSMGX
Risk & Return Illustration (5 Years)
Time Period: 7/1/2007 to 6/30/2012
ReturnStd Dev0.0 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
Asset Allocation
Portfolio Date: 3/31/2012
%
Stock 59.3
Bond 37.2
Cash 2.8
Other 0.7
Total 100.0
As of 6/30/2012
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
-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
-2.0 20.6 10.4 5.2 13.2 5.2 -32.2 22.4 12.2 -1.2
Rolling Returns (3 Years)
Top Quartile 2nd Quartile 3rd Quartile Bottom Quartile
Return06 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
2012
03 06
-20.0
0.0
20.0
40.0
60.0
Vanguard LifeStrategy Growth Inv Vanguard Growth Custom Benchmark
Rolling Risk (3 Years)
Top Quartile 2nd Quartile 3rd Quartile Bottom Quartile
Std Dev06 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
2012
03 06
0.0
10.0
20.0
30.0
40.0
50.0
Vanguard LifeStrategy Growth Inv Vanguard Growth Custom Benchmark
Vanguard Growth Custom Benchmark US OE Aggressive AllocationVanguard LifeStrategy Growth Inv VASGX
Risk & Return Illustration (5 Years)
Time Period: 7/1/2007 to 6/30/2012
ReturnStd Dev0.0 4.0 8.0 12.0 16.0 20.0 24.0
-0.7
-0.6
-0.5
-0.4
-0.3
-0.2
-0.1
-0.0 Vanguard LifeStrategy Growth Inv
Vanguard Growth Custom Benchmark
Asset Allocation
Portfolio Date: 3/31/2012
%
Stock 79.0
Bond 18.6
Cash 1.7
Other 0.7
Total 100.0
As of 6/30/2012
BofAML US Treasury Bill 3 Mon US Money Market TaxableVanguard Prime Money Market Inv VMMXX
Asset Allocation
Portfolio Date: 2/29/2012
%
Stock 0.0
Bond 4.5
Cash 95.5
Other 0.0
Total 100.0
Rolling Returns (3 Years)
Top Quartile 2nd Quartile 3rd Quartile Bottom Quartile
Return06 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
2012
03 06
-2.0
0.0
2.0
4.0
6.0
Vanguard Prime Money Market Inv BofAML US Treasury Bill 3 Mon
Calendar Year Returns
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
Vanguard Prime Money Market Inv
BofAML US Treasury Bill 3 Mon 1.8
1.7
1.1
0.9
1.3 3.1
1.1
4.8
3.0
5.0
4.9
2.1
5.1
0.2
2.8
0.1
0.5 0.1
0.1
0.0
As of 6/30/2012
Historical Sector Allocations (10 Years)
0.0
10.0
20.0
30.0
40.0
50.0
60.0
70.0
80.0
90.0
100.0
2003 2004 2005 2006 2007 2008 2009 2010 2011
Cash %US Govt Debt %Mortgage %
US Credit %Non-US %
Top Holdings
Detail
Holding
Type
Portfolio
Weighting %
CMT Market Liquidity Rate
US Treasury Note 0.625%
US Treasury Bond 6.25%
US Treasury Note 1.375%
US Treasury Note 1.875%
US Treasury Note 1%
US Treasury Note 0.25%
US Treasury Note 2.125%
GNMA
US Treasury Bond 4.25%
MUTUAL FUND - MONEY MARKET 4.34
BOND - GOV'T/TREASURY 1.18
BOND - GOV'T/TREASURY 0.83
BOND - GOV'T/TREASURY 0.75
BOND - GOV'T/TREASURY 0.73
BOND - GOV'T/TREASURY 0.68
BOND - GOV'T/TREASURY 0.63
BOND - GOV'T/TREASURY 0.58
BOND - GOV'T AGENCY CMO 0.57
BOND - GOV'T/TREASURY 0.54
Asset Allocation
Portfolio Date: 3/31/2012
%
Stock 0.0
Bond 91.9
Cash 6.2
Other 2.0
Total 100.0
Fixed Income Statistics
Portfolio Date: 3/31/2012
Morningstar Fixed Income Style Box™High Med Low
Ltd Mod Ext
Fixed-Income Stats
Average Eff Duration 5.1
Average Eff Maturity 7.2
Average Coupon 4.3
Average Price 110.5
Average Credit Quality AA
Credit Quality Breakdown
Portfolio Date: 3/31/2012
Fund Index
AAA %
AA %
A %
BBB %
BB %
B %
Below B %
Not Rated %
Yield to Maturity
73.4
5.30
11.32
10.01
0.00
0.00
0.00
0.00
2.00
BarCap US Agg Bond TR USD US OE Intermediate-Term BondVanguard Total Bond Market Index Inv VBMFX
As of 6/30/2012
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 58 4.2 38 2.4 19 4.3 35 6.9 11 5.1 10 5.9 90 6.4 73 7.6 15
10.3 4.1 4.3 2.4 4.3 7.0 5.2 5.9 6.5 7.8
Rolling Returns (3 Years)
Top Quartile 2nd Quartile 3rd Quartile Bottom Quartile
Return06 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
2012
03 06
-40.0
-20.0
0.0
20.0
40.0
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 Dev06 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
2012
03 06
0.0
7.5
15.0
22.5
30.0
37.5
Vanguard Total Bond Market Index Inv BarCap US Agg Bond TR USD
US OE Intermediate-Term BondBarCap US Agg Bond TR USDVanguard Total Bond Market Index Inv VBMFX
Risk & Return Illustration (5 Years)
Time Period: 7/1/2007 to 6/30/2012
ReturnStd Dev0.0 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
Risk & Return Characteristics (5 Years)
Time Period: 7/1/2007 to 6/30/2012
Fund Index
R2
Alpha
Beta
Std Dev
Up Capture Ratio
Down Capture Ratio
Sharpe Ratio (geo)
Information Ratio (geo)
Tracking Error
Correlation
3.4
99.0
101.8
-0.3
1.7
1.0
99.5
-0.1
0.2
1.0
100.0
0.0
1.0
3.4
100.0
100.0
1.8
0.0
1.0
As of 6/30/2012
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 11.0 53 6.2 49 -22.2 13 20.1 77 13.1 27 4.1 7
-9.8 18.5 8.3 4.0 11.1 6.2 -22.1 18.4 12.1 4.7
Rolling Returns (3 Years)
Top Quartile 2nd Quartile 3rd Quartile Bottom Quartile
Return06 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
2012
03 06
-20.0
-10.0
0.0
10.0
20.0
30.0
Vanguard Balanced Index Inv 60% S&P 500-40% BarCap Agg
Rolling Risk (3 Years)
Top Quartile 2nd Quartile 3rd Quartile Bottom Quartile
Std Dev06 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
2012
03 06
0.0
7.5
15.0
22.5
30.0
37.5
Vanguard Balanced Index Inv 60% S&P 500-40% BarCap Agg
60% S&P 500-40% BarCap Agg US OE Moderate AllocationVanguard Balanced Index Inv VBINX
Risk & Return Illustration (5 Years)
Time Period: 7/1/2007 to 6/30/2012
ReturnStd Dev0.0 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
Asset Allocation
Portfolio Date: 3/31/2012
%
Stock 58.9
Bond 36.8
Cash 3.4
Other 1.0
Total 100.0
As of 6/30/2012
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 5.5 -37.0 26.5 15.1 2.1
-22.1 41 28.5 28 10.7 36 4.8 60 15.6 24 5.4 51 -37.0 38 26.5 54 14.9 31 2.0 19
Rolling Returns (3 Years)
Top Quartile 2nd Quartile 3rd Quartile Bottom Quartile
Return06 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
2012
03 06
-40.0
-20.0
0.0
20.0
40.0
60.0
Vanguard 500 Index Investor S&P 500 TR
Rolling Risk (3 Years)
Top Quartile 2nd Quartile 3rd Quartile Bottom Quartile
Std Dev06 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
2012
03 06
0.0
20.0
40.0
60.0
80.0
Vanguard 500 Index Investor S&P 500 TR
S&P 500 TR US OE Large BlendVanguard 500 Index Investor VFINX
Risk & Return Illustration (5 Years)
Time Period: 7/1/2007 to 6/30/2012
ReturnStd Dev0.0 4.0 8.0 12.0 16.0 20.0 24.0
0.0
0.1
0.2
0.3
0.4 Vanguard 500 Index Investor
S&P 500 TR
Risk & Return Characteristics (5 Years)
Time Period: 7/1/2007 to 6/30/2012
Fund Index
R2
Alpha
Beta
Std Dev
Up Capture Ratio
Down Capture Ratio
Sharpe Ratio (geo)
Information Ratio (geo)
Tracking Error
Correlation
100.0
-0.1
1.0
21.7
99.7
100.2
0.0
-1.8
0.0
1.0
100.0
0.0
1.0
21.7
100.0
100.0
0.0
0.0
1.0
As of 6/30/2012
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
3/2008 9/2008 3/2009 9/2009 3/2010 9/2010 3/2011 9/2011 3/2012
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
7.28 9.37 -0.38 -1.30 -0.02 0.07 0.04
11.84 7.80 3.06 -0.61 0.09 0.43 0.52
11.43 11.36 -7.09 -6.70 -0.01 -0.05 -0.06
19.02 26.36 -8.38 -6.71 0.28 -0.33 -0.05
13.87 12.45 -1.14 1.61 0.07 -0.38 -0.31
12.20 9.31 -0.84 -0.50 0.07 -0.05 0.02
11.56 8.81 -6.99 -8.72 -0.20 0.21 0.02
1.56 2.59 -4.26 -8.31 0.06 0.07 0.12
3.04 4.74 12.70 14.23 -0.25 -0.04 -0.29
4.64 7.18 5.32 6.25 -0.20 -0.04 -0.25
1.08 0.00 -2.89 0.00 0.00 0.00
97.50 99.98 -2.78 -2.54 -0.12 -0.13 -0.24
2.35 0.00
0.11 0.00
0.05 0.02
100.00 100.00
Market Capitalization Breakdown
Portfolio Date: 3/31/2012
Fund Index
Market Cap Giant %
Market Cap Large %
Market Cap Mid %
Market Cap Small %
Market Cap Micro %
Average Market Cap (mil) (Long)
53.3
33.4
11.7
1.5
0.0
51,221.1
45.9
32.0
19.8
2.2
0.0
38,031.4
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
690
27.9
12.5
1.4
8.9
2.8
269
27.4
23.0
13.3
1.9
9.3
9.0
2.2
Holdings Based Style Trail (5 Years)
Time Period: 7/31/2007 to 6/30/2012
Micro Small MidLarge Giant
Deep-Val Core-Val Core Core-Grth High-Grth
Vanguard Windsor II Investor Russell 1000 Value TR USD
Russell 1000 Value TR USD US OE Large ValueVanguard Windsor II Investor VWNFX
As of 6/30/2012
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
-15.5
18.2 50 2.2 47
30.0
-36.7
16.5
53
7.1
27.1
22.2 -0.2 -36.8
28
19.7
10.6
15.5
88
0.4
2.7 24
Rolling Returns (3 Years)
Top Quartile 2nd Quartile 3rd Quartile Bottom Quartile
Return06 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
2012
03 06
-40.0
-20.0
0.0
20.0
40.0
60.0
Vanguard Windsor II Investor Russell 1000 Value TR USD
Rolling Risk (3 Years)
Top Quartile 2nd Quartile 3rd Quartile Bottom Quartile
Std Dev06 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
2012
03 06
0.0
10.0
20.0
30.0
40.0
50.0
Vanguard Windsor II Investor Russell 1000 Value TR USD
Russell 1000 Value TR USD US OE Large ValueVanguard Windsor II Investor VWNFX
Risk & Return Illustration (5 Years)
Time Period: 7/1/2007 to 6/30/2012
ReturnStd Dev0.0 4.0 8.0 12.0 16.0 20.0 24.0 28.0
-2.5
-2.1
-1.7
-1.3
-0.9
-0.5
-0.1
0.3 Vanguard Windsor II Investor
Russell 1000 Value TR USD
Risk & Return Characteristics (5 Years)
Time Period: 7/1/2007 to 6/30/2012
Fund Index
R2
Alpha
Beta
Std Dev
Up Capture Ratio
Down Capture Ratio
Sharpe Ratio (geo)
Information Ratio (geo)
Tracking Error
Correlation
23.2
100.0
1.0
0.0
100.0
100.0
-0.1
0.0
1.01.0
3.2
0.2
-0.1
97.4
101.2
1.0
0.7
98.1
22.9
As of 6/30/2012
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
3/2008 9/2008 3/2009 9/2009 3/2010 9/2010 3/2011 9/2011 3/2012
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
16.35 14.69 -9.30 -5.18 -0.03 -0.74 -0.78
3.12 12.23 -20.32 3.71 -0.63 -0.82 -1.45
7.85 9.86 -15.27 -6.36 0.07 -0.70 -0.63
6.47 4.32 -6.78 -0.43 0.09 -0.43 -0.35
8.11 10.41 3.42 1.72 -0.09 0.14 0.05
7.30 12.32 -9.95 -6.37 0.12 -0.29 -0.17
40.19 29.92 -5.55 -6.58 -0.36 0.45 0.09
2.73 5.22 -0.44 -3.48 0.00 0.09 0.08
2.01 0.83 9.97 7.06 0.14 0.05 0.19
0.00 0.07 -6.06 0.00 0.00 0.00
0.01 0.00 -3.89 0.00 0.00 0.00
94.13 99.87 -6.67 -3.70 -0.71 -2.26 -2.97
4.58 0.00
0.24 0.00
1.04 0.00
0.00 0.13
100.00 100.00
Market Capitalization Breakdown
Portfolio Date: 3/31/2012
Fund Index
Market Cap Giant %
Market Cap Large %
Market Cap Mid %
Market Cap Small %
Market Cap Micro %
Average Market Cap (mil) (Long)
32.1
44.7
22.7
0.5
0.0
34,383.8
45.1
32.9
20.7
1.3
0.0
46,356.2
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
123
31.8
89.0
21.0
3.7
15.2
21.6
0.4
572
27.3
17.8
4.2
12.9
15.8
Holdings Based Style Trail (5 Years)
Time Period: 7/31/2007 to 6/30/2012
Micro Small MidLarge Giant
Deep-Val Core-Val Core Core-Grth High-Grth
Vanguard US Growth Inv Russell 1000 Growth TR USD
Russell 1000 Growth TR USD US OE Large GrowthVanguard US Growth Inv VWUSX
As of 6/30/2012
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 -27.9 29.7 6.3 5.3 9.1 11.8 -38.4
-35.8
37.2
92 26.1 58 7.0 55 11.2 18 1.8 88 10.1 68 -37.8 28
16.7
35.0 47 11.5 83 -0.7 36
2.6
Rolling Returns (3 Years)
Top Quartile 2nd Quartile 3rd Quartile Bottom Quartile
Return06 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
2012
03 06
-40.0
-20.0
0.0
20.0
40.0
60.0
80.0
Vanguard US Growth Inv Russell 1000 Growth TR USD
Rolling Risk (3 Years)
Top Quartile 2nd Quartile 3rd Quartile Bottom Quartile
Std Dev06 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
2012
03 06
0.0
20.0
40.0
60.0
80.0
Vanguard US Growth Inv Russell 1000 Growth TR USD
Russell 1000 Growth TR USD US OE Large GrowthVanguard US Growth Inv VWUSX
Risk & Return Illustration (5 Years)
Time Period: 7/1/2007 to 6/30/2012
ReturnStd Dev0.0 4.0 8.0 12.0 16.0 20.0 24.0 28.0
0.0
1.0
2.0
3.0
4.0 Vanguard US Growth Inv
Russell 1000 Growth TR USD
Risk & Return Characteristics (5 Years)
Time Period: 7/1/2007 to 6/30/2012
Fund Index
R2
Alpha
Beta
Std Dev
Up Capture Ratio
Down Capture Ratio
Sharpe Ratio (geo)
Information Ratio (geo)
Tracking Error
Correlation
22.1
100.0
100.0
0.0
22.9
100.5
109.2
-0.5
3.3
98.0
-1.5
1.0
0.0
1.0
100.0
0.0
1.0
0.1
1.0
As of 6/30/2012
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
-14.6 41 34.1 55 20.4 19 13.9 13 13.6 46 6.0 44 -41.8 69 40.2 25 25.5 29 -2.1 34
-16.5 39.0 20.5 13.9 13.7 6.2 -41.8 40.5 25.7 -1.9
Rolling Returns (3 Years)
Top Quartile 2nd Quartile 3rd Quartile Bottom Quartile
Return06 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
2012
03 06
-40.0
-20.0
0.0
20.0
40.0
60.0
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 Dev06 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
2012
03 06
0.0
20.0
40.0
60.0
80.0
Vanguard Mid Cap Index Inv MSCI US Mid Cap 450 GR USD
MSCI US Mid Cap 450 GR USD US OE Mid-Cap BlendVanguard Mid Cap Index Inv VIMSX
Risk & Return Illustration (5 Years)
Time Period: 7/1/2007 to 6/30/2012
ReturnStd Dev0.0 5.0 10.0 15.0 20.0 25.0 30.0
0.0
0.2
0.4
0.6
0.8 Vanguard Mid Cap Index Inv
MSCI US Mid Cap 450 GR USD
Risk & Return Characteristics (5 Years)
Time Period: 7/1/2007 to 6/30/2012
Fund Index
R2
Alpha
Beta
Std Dev
Up Capture Ratio
Down Capture Ratio
Sharpe Ratio (geo)
Information Ratio (geo)
Tracking Error
Correlation
0.0
26.0
1.0
0.0
0.0
100.0
100.0
1.0
0.0
100.0
1.0
0.1
-1.8
100.2
99.5
1.0
-0.2
100.0
26.1
As of 6/30/2012
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 -18.4 47.4 20.0 7.5 15.8 1.2 -36.2 36.1 27.8 -2.8
-20.0 71 45.6 36 19.9 43 7.4 42 15.7 42 1.2 30 -36.1 53 36.1 26 27.7 25 -2.8 44
Rolling Returns (3 Years)
Top Quartile 2nd Quartile 3rd Quartile Bottom Quartile
Return06 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
2012
03 06
-40.0
-20.0
0.0
20.0
40.0
60.0
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 Dev06 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
2012
03 06
0.0
20.0
40.0
60.0
80.0
Vanguard Small Cap Index Inv MSCI US Small Cap 1750 GR USD
MSCI US Small Cap 1750 GR USD US OE Small BlendVanguard Small Cap Index Inv NAESX
Risk & Return Illustration (5 Years)
Time Period: 7/1/2007 to 6/30/2012
ReturnStd Dev0.0 10.0 20.0 30.0 40.0
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
Risk & Return Characteristics (5 Years)
Time Period: 7/1/2007 to 6/30/2012
Fund Index
R2
Alpha
Beta
Std Dev
Up Capture Ratio
Down Capture Ratio
Sharpe Ratio (geo)
Information Ratio (geo)
Tracking Error
Correlation
27.5
99.8
99.9
-0.1
0.1
100.0
1.0
0.0
1.0
0.0
100.0
0.0
1.0
27.5
100.0
100.0
0.0
0.0
1.0
As of 6/30/2012
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
15.36 9.53 -6.11 -9.48 -0.13 0.55 0.42
9.23 10.00 -2.11 -1.97 -0.02 -0.01 -0.03
5.91 10.80 -20.24 -11.05 0.16 -0.60 -0.44
17.89 23.44 -8.47 -7.67 0.00 -0.16 -0.15
5.48 6.63 0.46 1.13 -0.07 -0.04 -0.12
13.63 10.62 -7.94 -9.31 -0.06 0.20 0.14
14.29 6.58 -11.97 -12.24 -0.39 0.04 -0.35
9.54 11.35 -12.09 -12.71 0.07 0.07 0.14
1.85 5.79 -0.34 -1.03 -0.26 0.01 -0.24
0.81 3.87 7.84 -4.89 -0.08 0.10 0.01
0.00 0.01 2.71 0.00 0.00 0.00
93.98 98.63 -8.28 -7.67 -0.78 0.16 -0.62
3.81 0.00
0.27 0.00
0.48 0.59
1.46 0.79
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
3/2008 9/2008 3/2009 9/2009 3/2010 9/2010 3/2011 9/2011 3/2012
North America %Latin America %United Kingdom %
Europe dev %Europe emrg %Africa/Middle East %
Australasia %Japan %Asia dev %
Asia emrg %
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
1,840
9.4
10.6
1.3
10.6
-7.5
194
20.5
43.0
11.7
2.0
10.2
10.8
1.9
Holdings Based Style Trail (5 Years)
Time Period: 7/31/2007 to 6/30/2012
Micro Small MidLarge Giant
Deep-Val Core-Val Core Core-Grth High-Grth
Vanguard International Growth Inv MSCI AC World Ex USA NR USD
Market Capitalization Breakdown
Portfolio Date: 3/31/2012
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 %
55.6
34.1
9.4
0.9
0.0
30,288.1
79.1
20.9
54.3
34.6
10.8
0.1
0.2
26,012.2
MSCI AC World Ex USA NR USD US OE Foreign Large GrowthVanguard International Growth Inv VWIGX
As of 6/30/2012
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
-17.8 62 34.4 39 19.0 30 15.0 39 25.9 37 16.0 22 -44.9 62 41.6 10 15.7 8 -13.7 47
-14.9 40.8 20.9 16.6 26.7 16.7 -45.5 41.4 11.2 -13.7
Rolling Returns (3 Years)
Top Quartile 2nd Quartile 3rd Quartile Bottom Quartile
Return06 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
2012
03 06
-40.0
-20.0
0.0
20.0
40.0
60.0
Vanguard International Growth Inv MSCI AC World Ex USA NR USD
Rolling Risk (3 Years)
Top Quartile 2nd Quartile 3rd Quartile Bottom Quartile
Std Dev06 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
2012
03 06
0.0
20.0
40.0
60.0
80.0
Vanguard International Growth Inv MSCI AC World Ex USA NR USD
MSCI AC World Ex USA NR USD US OE Foreign Large GrowthVanguard International Growth Inv VWIGX
Risk & Return Illustration (5 Years)
Time Period: 7/1/2007 to 6/30/2012
ReturnStd Dev0.0 10.0 20.0 30.0 40.0
-6.0
-5.0
-4.0
-3.0
-2.0
-1.0
0.0 Vanguard International Growth Inv
MSCI AC World Ex USA NR USD
Risk & Return Characteristics (5 Years)
Time Period: 7/1/2007 to 6/30/2012
Fund Index
R2
Alpha
Beta
Std Dev
Up Capture Ratio
Down Capture Ratio
Sharpe Ratio (geo)
Information Ratio (geo)
Tracking Error
Correlation
27.7
109.4
101.0
0.5
2.7
26.9
100.0
100.0
0.0
1.0
-0.2
1.0
0.0
100.0
1.0
-0.1
1.0
1.7
99.1
As of 6/30/2012
" R - S q u a r e d ( R 2 ) A s t a t i s t i c a l m e a s u r e o f t h e p e r c e n t a g e o f a F u n d s m o v e m e n t s t h a t c a n b e e x p l a i n e d b y m o v e m e n t s i n a n 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 % 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 % = h i g h e x p l a n a t o r y v a l u e o f 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 e x p l a n a t o r y v a l u e o f 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 e x p l a n a t o r y v a l u e o f 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 p e r f o r m a n c e o n a r i s k - a d j u s t e d b a s i s . T h e r i s k - a d j u s t e d p e r f o r m a n c e i s c o m p a r e d t o t h a t o f a b e n c h m a r k i n d e x a n d a n y e x c e s s r e t u r n i s A l p h a . A p o s i t i v e A l p h a o f 1 . 0 i n d i c a t e s t h e f u n d o u t p e r f o r m e d i t s b e n c h m a r k b y 1 % . " B e t a A m e a s u r e o f a F u n d s v o l a t i l i t y , o r s y s t e m a t i c r i s k , c o m p a r e d t o t h a t o f i t s b e n c h m a r k . 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 . I t i s m e a s u r e d a s t h e s q u a r e r o o t o f v a r i a n c e . 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 r e t u r n s 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 M e t r o p o l i t a n S t . L o u i s S e w e r D i s t r i c t D e f i n e d C o n t r i b u t i o n P l a n A s o f J u n e 3 0 , 2 0 1 2
" 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 i s u s e d 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 . T h e S h a r p e R a t i o i s c a l c u l a t e d b y s u b t r a c t i n g t h e r i s k - f r e e r a t e f r o m t h e r e t u r n ( h i s t o r i c a l o r e x p e c t e d ) o f a p o r t f o l i o a n d t h e n d i v i d i n g t h e r e s u l t b y t h e s t a n d a r d d e v i a t i o n o f p o r t f o l i o r e t u r n s . I t 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 . " 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 % " 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 t h e r a t i o o f e x c e s s r e t u r n v e r s u s a b e n c h m a r k d i v i d e d b y t h e 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 a n d c a n b e u s e d a s a n i n d i c a t o r o f c o n s i s t e n c y 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 G l o s s a r y o f T e r m s M e t r o p o l i t a n S t . L o u i s S e w e r D i s t r i c t D e f i n e d C o n t r i b u t i o n P l a n A s o f J u n e 3 0 , 2 0 1 2
" 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 M e t r o p o l i t a n S t . L o u i s S e w e r D i s t r i c t D e f i n e d C o n t r i b u t i o n P l a n A s o f J u n e 3 0 , 2 0 1 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 M e t r o p o l i t a n S t . L o u i s S e w e r D i s t r i c t D e f i n e d C o n t r i b u t i o n P l a n A s o f J u n e 3 0 , 2 0 1 2