HomeMy Public PortalAbout2016 2nd Quarter ReportPerformance
Review
Metropolitan St. Louis Sewer
District Defined Contribution
Plan
2nd Quarter 2016
Pavilion Advisory Group Inc.
227 W. Monroe Street, Suite 2020
Chicago, IL 60606
Phone: 312-798-3200
Fax: 312-902-1984
www.pavilioncorp.com
1 Capital Markets Review 1
2 Executive Summary 9
3 Performance Summary 12
4 Plan Assets 20
5 Manager Evaluation 23
Table Of Contents
Capital Markets Review
1
Capital Markets Rev iew
Economy
0.003
0.005
0.007
0.009
0.011
0.013
0.015
0.017
0.019
0.021
0.5
1
1.5
2
2.5
3
USD per YenUSD per Pound, EuroPou nd
Eur o
Yen
Currencies vs. USD
-3
-2
-1
0
1
2
3
4
5
6
7
19901992199419961998200020022004200620082010201220142016PercentCP ICore CP I
Consumer Price Index
A Step Back From Globalism Brings Uncertainty
§In vestors and political watchers were surprised when U.K.voters chose to exit the European
Union.Markets and most currencies fell sharply in the immediate aftermath,though they regained
much of the losses quickly.The vote reflected a growing sentiment that globalism’s benefits are
not reaching working-class citizens in the developed nations,and that workers tend to value higher
wages over ultra-low inflation.
§U.S.Q2 GDP grew at a 1.2%rate,well below the post-1980 Q2 average of 3.1%.Inflation in the
first half of 2016 ran at a 1.6%annual rate.One-year inflation (1.0%)was led higher by rents
(3.8%)and medical (3.6%),while food (0.3%),clothing (0.4%)and fuel (-15.4%)eased after
poultry viruses and supply concerns waned.The Federal Reserve is not expected to raise interest
rates in the short-term,due to Brexit fallout,lackluster economic data and the upcoming elections.
§Housing construction looks to have hit a plateau for the near-term.While single-family home
construction repeated a multi-year pattern,multi-unit construction fell below its recent pace.This
reflects a nearing saturation of rental units and difficulty in locating vacant or suitable property
upon which to build profitably.Home construction remains constrained by a smaller experienced
workforce than existed during the housing boom.Remodeling projects are taking longer to start
and complete,though spending in this area remains strong.
90
95
10 0
10 5
11 0
11 5
12 0
Jul-05Jul-06Jul-07Jul-08Jul-09Jul-10Jul-11Jul-12Jul-13Jul-14Jul-152005 = 100New Single –Family Home Prices
Source: Bloomberg
Source: Census Bureau
Source: Bureau of Labor Statistics
2
1.0%3.4%2.5%0.9%
-1.5%-2.7%
-5.3%
5.3%
0.7%0.3%
-3.9%
1.2%
15.1%
3.8%
-2.9%-4.4%-5.1%
-7.3%
25.5%
6.4%
2.3%
9.8%
-20.0%
-10.0%
0.0%
10.0%
20.0%
30.0%
2Q YTD
Capital Markets Rev iew
Equities
Developed Markets Emerging Markets
24.8%
23.4%
0.4%
10.5%
7.5%
3.8%
-3.0%
6.5%
0.7%
-0.3%
11.6%
7.1%
6.8%
6.3%
4.6%
3.7%
2.5%
2.1%
1.4%
-0.9%
-2.8%
Telec om
Utilities
Health Care
Cons . Staples
Mate rials
S&P 500
Financials
Industrials
Cons. Disc.
Info Tech
2Q16 YTD
2nd Quarter and YTD 2016 World Equity Returns2ndQuarter 2016 and YTD S&P 500 Sector Returns
16.1%
11.6%
-1 5.0%-1 0.0%-5 .0%0.0%5.0%10.0%15 .0%20 .0%25.0%30 .0%
Energy
2nd Quarter 2016 –Investors Continue to Seek Value U.S.Continues Year With Modest Gains;Brexit Weighs Heavily on Markets
§The S&P 500 gained 2.5%during the second quarter,bringing the year to date return to 3.8%.Brexit
was the second quarter’s defining event,as the UK’s unexpected decision to leave the EU initially
sent markets into a nosedive,but they largely recovered by June’s end.A search for yield drove
investors into equities as the yield on the S&P 500 and Russell 2000 both exceeded that of the 10-
year U.S.Treasury.Higher yielding sectors such as Telecoms and Utilities saw particularly strong
investor demand,causing both sectors to return nearly 25%during the first half of 2016.A rebound
in oil prices led to strong gains in Energy,which saw a 12%return for the quarter and 16%year to
date.
§Emerging markets returned 0.7%during second quarter and 6.4%year to date,outperforming both
the U.S.and EAFE.Latin America was again the strongest performing region.Stability in Chinese
economic growth helped EM Asia.Developed international markets,with the exception of Canada
(benefiting from rising oil prices)declined during the quarter on concerns about economic growth
slowing further,particularly post-Brexit.
§The second quarter saw a continuation in the outperformance of the value style,as some of the
market’s pricier,growth-oriented sectors (Information Technology and Consumer Discretionary)
sold off.In general,small-cap stocks performed better than large-cap stocks and were the best
performing U.S.market-cap segment,posting a 3.8%return for the second quarter.
0.6%
4.6%
3.2%
4.3%
1.4%
6.3%
-1.6%
6.1%
-1 0.0%
-5 .0%
0.0%
5.0%
10 .0%
Russell 100 0 Grow th Russell 1 00 0 Value Russell 200 0 Grow th Russell 2 00 0 Value
2Q16 YTD
3
Source: Barclays Source: Bloomberg
Capital Markets Rev iew
Fixed Income
2009 2010 2011 2012 2013 2014 2015 1Q16 2Q16
Aggregate 746 171 -114 226 93 10 -53 -4 31
Agenc y 288 77 -25 166 1 10 -133 23 36
MBS 495 225 -106 91 98 40 -5 -38 3
ABS 2496 169 52 246 24 53 44 16 50
CMBS 2960 1501 47 841 97 108 -28 58 37
Credit 1990 192 -322 693 226 -18 -169 18 97
High Yield 5955 974 -240 1394 923 -112 -577 77 411
EMD (US D)3797 508 -537 1503 -32 -120 3 123 266
Duration –Adjusted Excess Returns to Treasuries (bps)Global Sovereign Yield Curve Comparison
Best Period Second Best Period Wors t Period Second W orst Period
-1 .0
-0 .5
0.0
0.5
1.0
1.5
2.0
2.5
3.0
0 5 10 15 20 25 30
Australia U.S.Canada U.K.France Germany Japan
Year to Maturity (%)Maturity (Years)
Source: US Dept. of The Treasury
-1.1%
-0.9%
-0.7%
-0.5%
-0.3%
-0.1%
0.1%
0.3%
0.5%
0.7%
2Q16 1 Yr Ending 2Q16
Rates and Spreads Rally as Global Yields Free Fall
§Bond markets rallied during the second quarter as credit spreads tightened during the first half of
the quarter,while Brexit headlines led a volatility surge in late June.Treasury yields plunged amid
the flight-to-quality and neared all-time lows by quarter-end,with longer duration bonds leading
returns.Over the trailing one-year period,10-and 30-year yields declined over 80 basis points (bps)
while short-term yields rose.
§Despite volatility in late June,all spread sectors ended the quarter with positive total returns and
outpaced Treasuries on a duration-adjusted basis.Investment grade credit spreads tightened 7 bps
during the quarter,while high yield spreads tightened 62 bps as the sector returned +5.5%.The
European Central Bank initiated its corporate bond buying program in June,which provided a
technical tailwind for the sector as yield compression in European credit pushed yield-hungry
buyers to the U.S.
§While U.S.rates approached all-time lows during June,domestic rates maintained a sizable yield-
advantage relative to other high quality developed markets such as Japan,Germany,and France.
Developed non-U.S.Treasuries (+4.8%)outpaced U.S.Treasuries on a duration-adjusted basis
during the quarter.U.S.dollar-denominated emerging market debt also produced strong results
(+5.0%),while local currency emerging debt (+2.7%)was hindered by currency volatility,
including a 5.5%loss for the Mexican Peso versus the U.S.dollar.
U.S. Treasury Yield Curve Change
Change in YieldMaturity (Years)
4
56%
31%
25%22%19%17%
13%13%12%12%
0%
10 %
20 %
30 %
40 %
50 %
60 %Proportion of Fund SearchesCapital Markets Review
Hedge Funds
6.0%
-3.2%
-5.6%
-3.9%
0.6%
-2.2%
2.3%
-5.0%
-5.4%
2.7%
0.4%
2.2%
1.2%
4.9%
2.8%
2.5%
2.0%
1.7%
1.4%
0.6%
0.1%
-0.6%
-12%-10%-8%-6%-4%-2%0%2%4%6%8%
BC Aggregate Bond Index
MSCI All-Country World Index
Dist ressed Securities
Event Driven
Convertible Arbitrag e
Hedge Fu nd Composite
Global Macro
Equi ty Hedge
Fu nd of Fu nds
Equity Market Neutral
Merger Arbitrage Q2
One
Year
Hedge Fund Strategies Sought by Investors Over the Next 12 Months
Source: Preqin
HFRI Index Performance –Second Quarter and Trailing 12 Months
Fu nd Strategy
Hedge Funds Rebound After A Difficult Quarter
§Hedge funds enjoyed a strong second quarter with all strategies except Merger Arbitrage delivering
positive returns.The overall Hedge Fund Composite (+2.0%)compared well to the MSCI All-
Country World Index,which closed the quarter up (+1.2%).The Barclays Capital Aggregate Bond
Index had another strong quarter (+2.2%).Fund of Funds (+0.6%)lagged the overall Hedge Fund
Composite and the publicly traded markets,but nevertheless delivered a modestly positive return.
§Distressed Securities (+4.9%)delivered exceptionally strong returns with gains coming from a
number of areas including distributions from liquidation holdings such as Lehman Brothers,strong
performance from energy related credits and the successful resolution of positions relating to
Argentinian bonds.
§Event Driven (+2.8%)and Equity Hedge (+1.4%)generated solid returns as market conditions
calmed and investors began to pay more attention to fundamentals.Convertible Arbitrage (+2.5%)
benefited from a normalization of market liquidity and the rally in credit spreads.Global macro
(+1.7%)benefited from large directional moves across a number of Fixed Income,Commodity and
Currency markets.
§Merger arbitrage (-0.6%)was the only negative strategy.Managers suffered from a number of high
profile deals breaking including the failed merger between Pfizer and Allergan.
§According to HFR,hedge fund assets increased by $42 billion through June 2016.Redemptions
slowed during the quarter with net redemptions of $8.2 billion compared to $15.1 billion in the first
quarter.The industry generated net performance gains of $50.2 billion for the second quarter.
Hedge Fund Assets and Flows
Source: HFR, Inc.
-$20 0,000
$2 00 ,0 00
$6 00 ,0 00
$1 ,000 ,0 00
$1 ,400 ,0 00
$1 ,800 ,0 00
$2 ,200 ,0 00
$2 ,600 ,0 00
$3 ,000 ,0 00
Assets ($MM)Net Asset Flow Estima te d A ssets
5
Capital Markets Review
Real Assets
Private Real Estate Returns as of First Quarter 2016
Source: NCREIF
Commodity Returns –Big Gains in Second Quarter 2016
REIT Returns Favorable Except Europe
(Periods Ended June 30, 2016)
Source: NAREIT
Real Estate Performs Well; Commodities Rebound
3 M on.1 Yr.3 Yr s.5 Yrs.10 Yrs.
NCREI F 2.2%11.8%11.9%11.9%9.9%
Apart ment s 1.9%10.9%10.6%11.5%7.1%
Indus trial 3.0%14.3%13.7%13.1%7.7%
Offi ce 1.7%10.8%11.2%11.1%7.3%
Ret ai l 3.0%13.1%13.5%13.2%8.7%
East 1.7%9.8%9.8%10.2%6.9%
Midwes t 2.1%10.8%11.3%11.1%6.8%
Sout h 2.2%11.8%12.9%12.5%7.9%
West 2.8%14.1%13.5%13.5%8.4%
Qua rter YT D 5 Years
Global 3.5%8.9%7.8%
U.S.7.0%13.4%12.6%
Canada 9.6%21.3%4.6%
Europe -5.5%-3.6%5.0%
Emergi ng M ark et s 1.7%3.6%-0.3%
§Private real estate returned 2.2%during the first quarter of 2016 and 11.8%for the trailing one-year
period.By sector,industrial and retail properties performed best for the quarter.By region,the
west was the strongest performer for the quarter and year.Three-and five-year returns have been
boosted by significant appreciation.Long-term,income has represented about 70%of the total
return from real estate,although in recent years,appreciation has been 50%or more of the return to
real estate.Expectations are that returns will be driven primarily by income (estimated at 5%)over
the next few years,with little appreciation.
§U.S.REIT returns were strong during the second quarter (+7.0%)and year to date (+13.4%)
periods.Fundamentals remain strong with high occupancy,steady demand and generally limited
new supply.However,rent growth is slowing,supply is increasing in some markets and cap rates
are very low as investors search for yield in a low interest rate environment.The European and
Japanese REIT markets experienced negative returns during the second quarter (-5.5%and -7.2%)
and first half of 2016 (-3.6%and -7.4%)on Brexit concerns and the potential for slower economic
growth.Emerging markets provided slightly positive returns for the quarter and year to date
periods with most markets generating positive returns.Chinese REITs,however,returned -2.4%
and -9.9%for the three and six months ended June 30,2016.
§Commodity markets experienced a big rebound (+12.7%)during the second quarter,led by oil
(+18.9%).Year to date,the Goldman Sachs Commodity Index returned 9.7%,with precious
metals (+25.4%)driving the year to date return.The major index components all experienced
positive returns for both the quarter and year to date periods.One-,three-,and five-year returns
remain negative,however,as commodity returns were negative in four (2011,2013,2014,and
2015)of the past five years.Sentiment around commodities remains mixed.Gold has seen
increased investment flows given its safe haven status,particularly in today’s low interest rate
environment.Other commodities have seen increased interest,but most investors remain cautious
given supply and demand considerations,as well as the possibility of a continued strong U.S.
dollar.
-50%
-40%
-30%
-20%
-10%
0%
10%
20%
30%
GSC I Crud e Oil Agriculture In dust rial
Metals
Precious
Metals
2Q16
YTD16
1 year
3 years
5 years
Source: S&P GSCI
6
U.S. Add-On Activity as a Percentage of Budget Activity
Capital Markets Rev iew
Pr ivate Equity
Asset Class Strategy 1 Quarter 1 Year 5 Years 10 Years 20 Years
Venture Capital VC: Early Stage 1.3%15.4%23.4%18.0%11.2%
Venture Capital VC: Late/Expansion
Stage 2.2%9.2%17.3%12.6%12.5%
Venture Capital VC: Multi -Stage 3.6%12.1%20.7%15.1%10.4%
Venture Capital Sub-Total 2.1%13.8%22.0%16.5%11.1%
Growth Equity Growth Equity 3.3%9.2%13.6%11.3%11.8%
Growth Equity Sub-Total 3.3%9.2%13.6%11.3%11.8%
Buyout Buyout: Small Cap 1.1%6.7%10.2%11.5%15.6%
Buyout Buyout: Mid Cap 1.9%5.8%9.9%9.5%12.4%
Buyout Buyout: Large Cap 2.1%6.0%11.5%11.4%12.5%
Buyout Buyout: Mega Cap 2.8%10.6%15.3%13.6%9.9%
Buyout Sub-Total 2.4%8.5%13.3%12.3%11.2%
Mezzanine Mezzanine/Sub Debt 0.5%5.2%9.5%10.7%9.6%
Mezzanine Sub-Total 0.5%5.2%9.5%10.7%9.6%
Distressed Distressed -0.1%1.8%9.2%9.4%9.6%
Distressed Sub-Total -0.1%1.8%9.2%9.4%9.6%
Private Equity Energy Sub-Total -8.1%-17.9%-4.7%0.3%5.5%
Fund of Funds FoF: Venture Capital 1.9%9.9%18.9%14.7%10.1%
Investment Horizon Pooled IRR (As of 12/31/2015)
Private Equity Continues to Post Positive Returns;Investment and Exit
Activity Slowing
§The pooled IRR for private equity funds underperformed the MSCI All Country World Index during the
fourth quarter of 2015,although most market segments posted positive returns.Only energy related
private equity funds performed poorly during the quarter with a -8.1%return.On a trailing one-,three-,
five-and ten-year basis,private equity funds outperformed the publicly traded markets.The strongest
performance in recent years has come from early stage venture,while distressed debt funds have posted
among the lowest returns.
§Private equity deal volumes,and value fell in 2016.In part,this is attributable to a more difficult
regulatory environment.However,valuations play a part as they continue to rise in concert with
publicly-traded equity market valuations,making it more challenging for private equity managers to
invest.According to PitchBook,add-on activity in the U.S.market continues to grow as a percent of
overall buyout activity,reaching a record 64%in 2016 from just 43%in 2006.
§U.S.private equity-backed exit activity has slowed in 2016 relative to the past few years ($113 billion in
the first half of 2016 compared to $180 million and $132 million in the first half of 2014 and 2015,
respectively.Relative to earlier years,however,exit activity remains healthy.
Source: PitchBook
Source: PitchBook
Source: ThomsonOne
Fund of Funds FoF: Venture Capital 1.9%9.9%18.9%14.7%10.1%
Fund of Funds FoF: Private Equity 1.8%6.5%11.2%9.9%9.1%
Fund of Funds Sub-Total 1.7%7.5%13.2%11.1%9.3%
Secondary Funds Secondary Funds -0.5%7.1%11.4%11.3%10.9%
Secondary Funds Sub-Total -0.5%7.1%11.4%11.3%10.9%
Total 1.4%6.8%12.3%11.4%9.7%
MSCI AC World Index 5.0%-2.4%7.7%6.1%4.8%
U.S. Private Equity Activity –Deal Volume & Value
7
Quarter
Year
To
Date
1
Year
2
Years
3
Years
5
Years
7
Years
10
Years
Domestic Equity Indices
Dow Jones Wilshire 5000 2.8 4.0 3.0 5.0 11.3 11.6 14.9 7.4
S&P 500 2.5 3.8 4.0 5.7 11.7 12.1 14.9 7.4
Russell 1000 Index 2.5 3.7 2.9 5.1 11.5 11.9 15.0 7.5
Russell 1000 Growth Index 0.6 1.4 3.0 6.7 13.1 12.3 15.5 8.8
Russell 1000 Value Index 4.6 6.3 2.9 3.5 9.9 11.4 14.5 6.1
Russell Midcap Index 3.2 5.5 0.6 3.6 10.8 10.9 16.5 8.1
Russell Midcap Growth Index 1.6 2.2 -2.1 3.5 10.5 10.0 15.8 8.1
Russell Midcap Value Index 4.8 8.9 3.2 3.5 11.0 11.7 17.1 7.8
Russell 2000 Index 3.8 2.2 -6.7 -0.3 7.1 8.4 13.9 6.2
Russell 2000 Growth Index 3.2 -1.6 -10.8 0.1 7.7 8.5 14.3 7.1
Russell 2000 Value Index 4.3 6.1 -2.6 -0.9 6.4 8.1 13.5 5.2
International Equity Indices
MSCI EAFE -1.5 -4.4 -10.2 -7.2 2.1 1.7 6.0 1.6
MSCI EAFE Growth Index -0.1 -2.2 -4.8 -3.1 4.2 3.2 7.6 2.9
MSCI EAFE Value Index -2.8 -6.6 -15.4 -11.4 -0.1 0.1 4.3 0.2
MSCI EAFE Small Cap -2.6 -3.2 -3.7 -2.2 7.3 4.8 9.9 3.6
MSCI AC World Index 1.0 1.2 -3.7 -1.5 6.0 5.4 9.5 4.3
MSCI AC World ex US -0.6 -1.0 -10.2 -7.8 1.2 0.1 5.3 1.9
MSCI Emerging Markets Index 0.7 6.4 -12.1 -8.7 -1.6 -3.8 3.8 3.5
Fixed Income Indices
Barclays U.S. Aggregate 2.2 5.3 6.0 3.9 4.1 3.8 4.6 5.1
Barcap Intermediate U.S. Government/Credit 1.6 4.1 4.3 3.0 3.0 2.9 3.8 4.5
Barclays U.S. Long Government/Credit 6.5 14.3 15.7 8.6 9.3 9.2 9.3 8.4
Barclays US Corp: High Yield 5.5 9.1 1.6 0.6 4.2 5.8 10.0 7.6
BofA Merrill Lynch 3 Month U.S. T-Bill 0.1 0.1 0.2 0.1 0.1 0.1 0.1 1.0
Barclays U.S. TIPS 1.7 6.2 4.4 1.3 2.3 2.6 4.3 4.8
Citigroup Non-U.S. World Government Bond 4.0 13.5 13.8 -0.8 2.4 0.3 2.3 4.0
JPM EMBI Global Diversified (external currency)5.0 10.3 9.8 5.0 7.2 6.5 8.8 8.0
JPM GBI-EM Global Diversified (local currency)2.7 14.0 2.0 -7.1 -3.6 -2.2 3.1 5.7
Real Asset Indices
Bloomberg Commodity Index Total Return 12.8 13.2 -13.3 -18.7 -10.6 -10.8 -4.4 -5.6
Dow Jones Wilshire REIT 5.6 11.1 22.8 13.7 13.6 12.5 21.0 7.0
Capital Markets Review
Index Returns
As of June 30, 2016
(Percentage Return)
_________________________
Returns for periods greater than one year are annualized.
8
Executive Summary
9
Performance Summary - June 2016
During the second quarter, all equity, fixed income, and balanced/target date funds produced positive returns. Within the target date retirement funds most options
ranked near the median of their target date manager universe during the quarter.
Plan Assets
The investment menu provides a combination of single strategy funds and diversified portfolios including a balanced fund and target retirement date funds. The
retirement dates range from 2010 through 2060 in five year increments.
Manager Evaluation
Vanguard is a market leader and well known for its low cost market index and institutional investment funds.
In mid-July, Vanguard announced that M&G Investment Management will no longer serve as an advisor to the Vanguard International Growth Fund. The assets
formerly managed by M&G are being reallocated to the two remaining sub-advisors: Baillie Gifford (60%) and Schroder (40%).
Second quarter performance for the active managers in the investment menu were mixed. Vanguard International Growth outpaced its benchmarks by 110 basis
points. Conversely, Vanguard Windsor II and Vanguard US Growth returned 170 and 40 basis points, respectively, less than their benchmarks as a result of poor
stock selection.
Target retirement date funds approximated their respective benchmarks over longer-term periods.
Defined Contribution Plan Executive Summary
10
Defined Contribution Plan Executive Summary
Capital Markets Review
The S&P 500 gained 2.5% during the second quarter, bringing the year to date return to 3.8%. Brexit was the second quarter’s defining event, as the UK’s
unexpected decision to leave the EU initially sent markets into a nosedive, but they largely recovered by June’s end. A search for yield drove investors into
equities as the yield on the S&P 500 and Russell 2000 both exceeded that of the 10-year U.S. Treasury.
Bond markets rallied during the second quarter as credit spreads tightened during the first half of the quarter, while Brexit headlines led a volatility surge in late
June. Treasury yields plunged amid the flight-to-quality and neared all-time lows by quarter-end, with longer duration bonds leading returns. Over the trailing
one-year period, 10-and 30-year yields declined over 80 basis points (bps) while short-term yields rose.
Housing construction looks to have hit a plateau for the near-term. While single-family home construction repeated a multi-year pattern, multi-unit construction
fell below its recent pace. This reflects a nearing saturation of rental units and difficulty in locating vacant or suitable property upon which to build profitably.
Emerging markets returned 0.7% during second quarter and 6.4% year to date, outperforming both the U.S. and EAFE. Latin America was again the strongest
performing region. Stability in Chinese economic growth helped EM Asia. Developed international markets, with the exception of Canada (benefiting from rising
oil prices) declined during the quarter on concerns about economic growth slowing further, particularly post-Brexit.
The second quarter saw a continuation in the outperformance of the value style, as some of the market’s pricier, growth-oriented sectors (Information Technology
and Consumer Discretionary) sold off. In general, small-cap stocks performed better than large-cap stocks and were the best performing U.S. market-cap
segment, posting a 3.8% return for the second quarter.
Recommendations or Action Items
No recommendations at this time.
11
Performance Summary
12
Quarter
Year
To
Date
1
Year
3
Years
5
Years
10
Years
Domestic Equity Options
Vanguard 500 Index (VFINX)2.4 (30)3.8 (22)3.8 (15)11.5 (23)11.9 (13)7.3 (30)
S&P 500 2.5 (29)3.8 (21)4.0 (14)11.7 (20)12.1 (11)7.4 (27)
IM U.S. Large Cap Equity 1.6 0.9 -0.6 9.8 10.2 6.5
Vanguard US Growth (VWUSX)0.2 (53)-3.3 (57)-1.0 (44)13.2 (16)12.0 (17)7.8 (42)
Russell 1000 Growth Index 0.6 (42)1.4 (9)3.0 (9)13.1 (17)12.3 (12)8.8 (16)
IM U.S. Large Cap Growth Equity 0.3 -2.2 -1.6 11.5 10.4 7.4
Vanguard Windsor II (VWNFX)2.9 (47)3.1 (46)-1.1 (49)8.1 (50)10.2 (32)6.0 (34)
Russell 1000 Value Index 4.6 (8)6.3 (13)2.9 (17)9.9 (14)11.4 (9)6.1 (31)
IM U.S. Large Cap Value Equity 2.5 2.8 -1.4 8.1 9.5 5.3
Vanguard Mid-Cap Index (VIMSX)2.3 (54)3.4 (39)-1.0 (27)10.6 (21)10.4 (18)7.7 (24)
Vanguard Mid-Cap Index Fund Blended Benchmark 2.3 (52)3.5 (38)-0.9 (25)10.8 (16)10.7 (14)7.9 (20)
IM U.S. Mid Cap Equity 2.4 2.0 -4.5 8.4 8.4 6.7
Vanguard Small-Cap Index (NAESX)3.9 (20)5.0 (19)-3.0 (24)8.8 (15)9.7 (17)7.6 (8)
Vanguard Small-Cap Index Fund Blended Benchmark 4.0 (20)5.0 (19)-2.9 (23)8.9 (14)9.9 (14)7.7 (7)
IM U.S. Small Cap Equity 2.8 2.2 -6.4 6.6 8.1 5.4
International Equity Option
Vanguard International Growth (VWIGX)0.5 (42)-1.6 (54)-8.3 (37)4.0 (19)2.3 (28)3.5 (30)
MSCI AC World ex USA (Net)-0.6 (59)-1.0 (51)-10.2 (54)1.2 (56)0.1 (62)1.9 (58)
IM International Equity -0.1 -0.9 -9.9 1.6 0.7 2.3
Fixed Income Options
Vanguard Total Bond Market Index (VBMFX)2.3 (68)5.5 (40)6.0 (12)3.9 (41)3.6 (65)5.0 (67)
Vanguard Total Bond Market Index Fund Benchmark 2.3 (69)5.5 (39)6.1 (10)4.1 (36)3.8 (60)5.2 (63)
IM U.S. Broad Market Core+ Fixed Income 2.6 5.2 4.5 3.7 4.0 5.5
Vanguard Retirement Savings Trust 0.5 0.9 1.9 1.8 2.0 2.9
Ryan 3 Yr GIC Master 0.3 0.7 1.3 1.1 1.3 2.7
Performance Summary
Investment Options
As of June 30, 2016
_________________________
Returns are expressed as percentages. Returns for periods greater than one year are annualized.
Peer group percentile ranks are shown in parenthesis.
13
Performance Summary
Investment Options
As of June 30, 2016
Quarter
Year
To
Date
1
Year
3
Years
5
Years
10
Years
Equity/Fixed Income Blend Options
Vanguard Balanced Index (VBINX)2.5 (18)4.5 (10)3.9 (8)8.2 (11)8.5 (12)6.8 (10)
Vanguard Balanced Index Fund Benchmark 2.5 (17)4.5 (10)4.0 (8)8.4 (9)8.6 (10)6.9 (9)
IM Mixed-Asset Target Alloc Growth 1.8 2.3 -1.6 6.3 6.4 5.2
Vanguard Target Retirement Income (VTINX)1.9 (59)4.3 (28)3.3 (9)4.9 (11)5.0 (14)5.5 (6)
Vanguard Target Income Composite Index 1.9 (51)4.2 (30)3.4 (5)5.1 (7)5.1 (12)5.5 (5)
IM Mixed-Asset Target Today 2.0 3.9 1.9 3.7 3.9 4.3
Vanguard Target Retirement 2010 (VTENX)1.9 (56)4.2 (35)2.9 (19)5.5 (16)5.6 (19)5.4 (3)
Vanguard Target 2010 Composite Index 1.9 (56)4.2 (36)3.1 (17)5.7 (9)5.7 (16)5.5 (2)
IM Mixed-Asset Target 2010 (MF) Median 2.0 3.7 1.3 4.7 4.8 4.0
Vanguard Target Retirement 2015 (VTXVX)1.9 (71)3.9 (43)2.0 (41)6.2 (7)6.2 (11)5.6 (9)
Vanguard Target 2015 Composite Index 1.9 (73)3.9 (44)2.1 (34)6.4 (5)6.3 (8)5.6 (8)
IM Mixed-Asset Target 2015 (MF) Median 2.1 3.7 1.4 4.8 5.0 4.8
Vanguard Target Retirement 2020 (VTWNX)2.0 (54)3.8 (43)1.4 (39)6.8 (4)6.7 (5)5.7 (4)
Vanguard Target 2020 Composite Index 1.9 (62)3.7 (45)1.6 (36)7.0 (3)6.9 (3)5.8 (2)
IM Mixed-Asset Target 2020 (MF) Median 2.0 3.5 0.9 5.0 5.1 4.4
Vanguard Target Retirement 2025 (VTTVX)2.0 (55)3.5 (47)0.8 (43)7.0 (7)6.9 (11)5.7 (12)
Vanguard Target 2025 Composite Index 1.9 (66)3.4 (49)0.9 (40)7.2 (5)7.2 (8)5.8 (6)
IM Mixed-Asset Target 2025 (MF) Median 2.0 3.3 0.4 5.7 5.7 4.9
Vanguard Target Retirement 2030 (VTHRX)1.9 (52)3.2 (47)0.1 (42)7.3 (8)7.2 (9)5.7 (12)
Vanguard Target 2030 Composite Index 1.8 (68)3.1 (52)0.2 (40)7.5 (6)7.5 (6)5.8 (6)
IM Mixed-Asset Target 2030 (MF) Median 1.9 3.2 -0.3 6.0 6.0 4.3
Vanguard Target Retirement 2035 (VTTHX)1.8 (51)2.9 (37)-0.7 (37)7.5 (7)7.4 (13)5.7 (17)
Vanguard Target 2035 Composite Index 1.7 (62)2.8 (41)-0.6 (31)7.7 (5)7.7 (7)5.9 (10)
IM Mixed-Asset Target 2035 (MF) Median 1.8 2.6 -1.4 6.3 6.3 4.7
Vanguard Target Retirement 2040 (VFORX)1.8 (47)2.7 (40)-1.4 (42)7.5 (7)7.6 (12)5.8 (11)
Vanguard Target 2040 Composite Index 1.6 (60)2.5 (44)-1.3 (39)7.8 (4)7.9 (5)6.0 (7)
IM Mixed-Asset Target 2040 (MF) Median 1.8 2.3 -2.1 6.4 6.4 4.5
_________________________
Returns are expressed as percentages. Returns for periods greater than one year are annualized.
Peer group percentile ranks are shown in parenthesis.
14
Performance Summary
Investment Options
As of June 30, 2016
Quarter
Year
To
Date
1
Year
3
Years
5
Years
10
Years
Equity/Fixed Income Blend Options (cont.)
Vanguard Target Retirement 2045 (VTIVX)1.8 (47)2.6 (36)-1.5 (34)7.5 (10)7.6 (15)5.8 (19)
Vanguard Target 2045 Composite Index 1.6 (64)2.4 (40)-1.3 (32)7.8 (5)7.8 (8)6.0 (16)
IM Mixed-Asset Target 2045 (MF) Median 1.7 2.1 -2.5 6.6 6.6 4.6
Vanguard Target Retirement 2050 (VFIFX)1.8 (44)2.6 (38)-1.5 (35)7.5 (16)7.6 (14)5.8 (1)
Vanguard Target 2050 Composite Index 1.6 (59)2.4 (43)-1.3 (33)7.8 (9)7.8 (7)6.0 (1)
IM Mixed-Asset Target 2050 (MF) Median 1.7 2.1 -2.6 6.6 6.6 4.4
Vanguard Target Retirement 2055 (VFFVX)1.8 (42)2.6 (34)-1.6 (34)7.5 (17)7.6 (23)N/A
Vanguard Target 2055 Composite Index 1.6 (57)2.4 (38)-1.3 (31)7.8 (9)7.8 (13)N/A
IM Mixed-Asset Target 2055+ (MF) Median 1.7 2.0 -2.6 6.7 6.7 N/A
Vanguard Target Retirement 2060 (VTTSX)1.8 (42)2.6 (35)-1.6 (33)7.5 (17)N/A N/A
Vanguard Target 2060 Composite Index 1.6 (57)2.4 (38)-1.3 (31)7.8 (9)N/A N/A
IM Mixed-Asset Target 2055+ (MF) Median 1.7 2.0 -2.6 6.7 6.7 N/A
Money Market Option
Vanguard Prime Money Market (VMMXX)0.1 0.2 0.2 0.1 0.1 1.1
BofA Merrill Lynch 3 Month U.S. T-Bill 0.1 0.1 0.2 0.1 0.1 1.0
_________________________
Returns are expressed as percentages. Returns for periods greater than one year are annualized.
Peer group percentile ranks are shown in parenthesis.
15
Pe rformance Summary
Manager Compliance Checklist
As of June 30, 2016
Ma na gers
Vanguard
S&P 500
Inde x
(V FINX)
Va nguard US
Grow th
(VWUSX)
Va nguard
Windsor II
(V WNFX)
Vangua rd
Mid-Ca p
Index
(V IMSX)
Va nguard
Small-Ca p
Inde x
(NAES X)
Vangua rd
Interna tiona l
Grow th
(V WIGX)
Vangua rd
Total Bond
Marke t Inde x
(VBMFX)
Vangua rd
Re ti re ment
Trust
Organi zati onal /Produ ct Is sues
No ma teria l c hanges to investment team +++++-++
No ma teria l o rg aniza tional changes ++++++++
Accounting or regulatory concerns ++++++++
Cu rrently in adherence to guidelin es ++++++++
Po rt fo lio characteris tics me et stylis tic expectations ++++++++
Re lati ve Perfor mance 1
Three-year return better than benchmark N/A +-N/A N/A +N/A N/A
Three-year rankin g better than peer group median +++++++N/A
Fiv e year re turn better than benchmark N/A --N/A N/A +N/A N/AFive year re turn better than benchmark N/A --N/A N/A +N/A N/A
Fiv e year ra nkin g better than peer group median ++++++-N/A
Perfor manc e s tatus ++++++++
Summar y s tatus ++++++++
1 Manager performance is evaluated net of investment management fees.
16
Pe rformance Summary
Manager Compliance Checklist (Continued)
As of June 30, 2016
Manage rs
Vanguard
Ba lance d
Index
(V BI NX )
Vanguard
Target
Re ti re ment
Income Fund
(VTINX)
Vangua rd
Target
Re tirement
2010
(VTENX)
Vanguard
Ta rget
Re tire ment
2015
(V TXVX)
Vanguard
Ta rge t
Re ti re ment
2020
(V TWNX)
Vangua rd
Ta rge t
Re ti re ment
2025
(V TTVX)
Vanguard
Targe t
Re ti rement
2030
(V THRX)
Vangua rd
Targe t
Re tire ment
2035
(VTTHX)
Organizati onal /Produ ct Is sues
No ma terial c hanges to investment team ++++++++
No ma terial o rganiza tional changes ++++++++
Accounting or regulatory concerns ++++++++
Cu rrently in adherence to guidelin es ++++++++
Po rt fo lio characteris tics me et stylis tic expectations ++++++++
Relative Perfor mance 1
Three-year return better than benchmark N/A N/A N/A N/A N/A N/A N/A N/A
Three-year rankin g better than peer group median ++++++++
Five year return better than benchmark N/A N/A N/A N/A N/A N/A N/A N/AFive year return better than benchmark N/A N/A N/A N/A N/A N/A N/A N/A
Five year rankin g better than peer group median ++++++++
Performance status ++++++++
Summar y s tatus ++++++++
1 Manager performance is evaluated net of investment management fees.
17
Pe rformance Summary
Manager Compliance Checklist (Continued)
As of June 30, 2016
Mana gers
Vanguard
Ta rge t
Re ti re ment
2040
(V FORX)
Vangua rd
Ta rget
Re ti re ment
2045
(V TIVX)
Va ngua rd
Targe t
Re ti re ment
2050
(V FIFX)
Vangua rd
Targe t
Re ti re ment
2055
(V FFVX)
Vangua rd
Ta rget
Re ti re ment
2060
(V TTSX)
Vangua rd
Prime Mone y
Marke t Fund
(V MMXX)
Organizational /Produ ct Is sues
No ma teria l c hanges to investment team ++++++
No ma teria l o rg aniza tional changes ++++++
Accounting or regulatory concerns ++++++
Cu rre ntly in adherence to guidelin es ++++++
Po rt fo lio characteris tics me et stylis tic expectations ++++++
Re lati ve Performanc e 1
Thre e-year re turn better than benchmark N/A N/A N/A N/A N/A N/A
Thre e-year ra nkin g better than peer group median +++++N/A
Fiv e year return better than benchmark N/A N/A N/A N/A N/A N/A
1 Manager performance is evaluated net of investment management fees.
Fiv e year return better than benchmark N/A N/A N/A N/A N/A N/A
Fiv e year rankin g better than peer group median ++++N/A N/A
Performance status ++++++
Summary status ++++++
18
Manager Compliance Checklist
Second Quarter 2016
Manager
Compliance
Issue Explanation
Recommended
Ac tion Comments
Vanguard
International
Growth
Investment
Team
Changes
On July 15, 2016, Vanguard announced
that M&G Investment Management will
no longer serve as an advisor to the
Vanguard International Growth Fund.
Hold The assets formerly managed by M&G are being reallocated
to the two remaining sub-advisors: Baillie Gifford (60%) and
Schroder (40%).In June 2016, Charles Anniss, who was the
appointed fund manager of the International Growth mandate
managed on behalf of Vanguard, decided to leave M&G after
16 years to pursue another career opportunity.Vanguard
funds’ boards of trustees determined that it was in their
clients’ best interest to remove M&G as an advisor for the
Vanguard International Growth Fund.
Pavilion believes that the removal of M&G as a subadvisor
was a good decision and recommends clients maintain their
allocations to the Fund.
19
Plan Assets
20
Plan Summary
Defined Contribution Plan Assets
As of June 30, 2016
Inve st ment Options Inve st ment Styl e Al loca ti on Perce nta ge
Dome stic Equ ity Funds
Vangu ard 500 Index Inv US Lar ge Cap Equit y -Core $ 187,008 4.4%$ 24,842 + 15.3%
Vangu ard Windsor II Inv US Lar ge Cap Equit y -Value $ 77,583 1.8%$ 15,577 + 25.1%
Vangu ard US G rowt h Inv US Lar ge Cap Equit y -Growth $ 86,140 2.0%$ 1,101 + 1.3%
Vangu ard M id Cap Index Inv US Mid Cap Equit y -Core $ 146,296 3.5%$ 7,855 + 5.7%
Vangu ard Small Cap Index Inv US Small Cap Equit y -Core $ 164,772 3.9%$ 15,507 + 10.4%
$ 661,798 15.7%$ 64,883 + 10.9%
International Equ ity Funds
Vangu ard Int ernat ional G rowt h Int ernat ional Equit y $ 89,979 2.1%$ 10,487 + 13.2%
$ 89,979 2.1%$ 10,487 + 13.2%
Fixed I ncome/Alternative Fu nds
Vangu ard T ot al Bond M arket Index Inv Market Duration $ 68,409 1.6%$ 15,125 + 28.4%
Vangu ard Ret irement Savings Trust Sh ort Duration $ 80,095 1.9%$ (3,681)- 4.4%
Vangu ard Balanced Index Inv Balanced $ 92,203 2.2%$ 9,707 + 11.8%
$ Change
From
Previous Qtr
% C ha nge
From
Previous Qtr
Vangu ard Balanced Index Inv Balanced $ 92,203 2.2%$ 9,707 + 11.8%
$ 240,706 5.7%$ 21,152 + 9.6%
Cas h
Vangu ard Prime M oney Market Cash $ 137,059 3.3%$ (38,788)- 22.1%
$ 137,059 3.3%$ (38,788)- 22.1%
Ta rge t Date Fu nds
Vangu ard T arget Ret irement Income Inv Blend $ 42,514 1.0%$ 9,612 + 29.2%
Vangu ard T arget Ret irement 2010 Inv Blend $ 1,872 0.0%$ 200 + 12.0%
Vangu ard T arget Ret irement 2015 Inv Blend $ 4,479 0.1%$ 336 + 8.1%
Vangu ard T arget Ret irement 2020 Inv Blend $ 68,067 1.6%$ 11,285 + 19.9%
Vangu ard T arget Ret irement 2025 Inv Blend $ 299,158 7.1%$ 29,191 + 10.8%
Vangu ard T arget Ret irement 2030 Inv Blend $ 162,838 3.9%$ 18,633 + 12.9%
Vangu ard T arget Ret irement 2035 Inv Blend $ 425,415 10.1%$ 50,824 + 13.6%
Vangu ard T arget Ret irement 2040 Inv Blend $ 472,991 11.2%$ 48,685 + 11.5%
Vangu ard T arget Ret irement 2045 Inv Blend $ 866,185 20.5%$ 83,328 + 10.6%
Vangu ard T arget Ret irement 2050 Inv Blend $ 438,037 10.4%$ 7,656 + 1.8%
Vangu ard T arget Ret irement 2055 Inv Blend $ 247,572 5.9%$ 26,096 + 11.8%
Vangu ard T arget Ret irement 2060 Inv Blend $ 57,472 1.4%$ 14,015 --
3,086,599$ 73.2%299,861$ + 10.8%
TO TA L $ 4,216,141 100.0%$ 357,595 + 9.3%
21
Plan Summary
Fee Comparison Summary
As of June 30, 2016
Inv estment Opt ion
Expe nse
Ratio
Morningstar
Categor y
Av erage
Fe e Level
Comp ar ison
Group M edian
eVestment
Al liance
Univ erse
Median Cate gor y
Fe e Level Comp arison
Group
eVestment Alliance
Univ erse
Va nguard 500 In dex 0.16 1.03 0.92 0.15 La rg e Ble nd La rg e Cap No Lo ad US Pa ssive La rg e Cap Equity
Va nguard US Gro wt h 0.47 1.19 0.92 0.83 La rg e Gro wt h La rg e Cap No Lo ad US Large Cap Gr owth
Va nguard Windsor 0.34 1.11 0.91 0.81 La rg e Value La rg e Cap No Lo ad US Large Cap Va lu e
Va nguard Mid-Ca p Index 0.20 1.02 1.08 0.24 Mid Ble nd Mid Cap No Lo ad US Pa ssive Mid Cap Equity
Va nguard Sma ll-Ca p Index 0.20 1.26 1.18 0.24 Small Blend Small Cap No Load US Passive Small Ca p Equity
Va nguard International Gr owth 0.47 1.13 1.05 1.08 Fo re ig n Large Gro wt h Foreign Large Cap No Lo ad ACWI ex-US Gro wt h Equity
Va nguard Total Bo nd Marke t Index 0.16 0.77 0.66 0.50 In terme diate-Term B ond In terme diate-Term B ond No Load US Co re Fixe d Income
Va nguard Retire me nt Saving Trust 0.53 N/A N/A 0.83 N/A N/A US Stable Value Fixed In come
Va nguard Balanced Index 0.22 1.02 0.89 0.76 Moderate Allo cation Moderate Allo cation No Load US Ba la nced
Va nguard Target Retirement Income 0.14 0.51 0.71 0.48 Re tire me nt Income Re tire me nt Income No Load Life cycle/Target Date Income
Va nguard Target Retirement 2010 0.14 0.39 0.58 0.55 Target Date 2000-2010 Target Retire me nt 2000-2010 No Lo ad Life cycle/Target Date 2010
Va nguard Target Retirement 2015 0.14 0.41 0.75 0.61 Target Date 2011-2015 Target Retire me nt 2011-2015 No Lo ad Life cycle/Target Date 2015
Va nguard Target Retirement 2020 0.14 0.5 0.76 0.62 Target Date 2016-2020 Target Retire me nt 2016-2020 No Lo ad Life cycle/Target Date 2020Vanguard Target Retirement 2020 0.14 0.5 0.76 0.62 Target Date 2016-2020 Target Retire me nt 2016-2020 No Lo ad Life cycle/Target Date 2020
Va nguard Target Retirement 2025 0.15 0.42 0.83 0.63 Target Date 2021-2025 Target Retire me nt 2021-2025 No Lo ad Life cycle/Target Date 2025
Va nguard Target Retirement 2030 0.15 0.51 0.80 0.65 Target Date 2026-2030 Target Retire me nt 2026-2030 No Lo ad Life cycle/Target Date 2030
Va nguard Target Retirement 2035 0.15 0.45 0.85 0.68 Target Date 2031-2035 Target Retire me nt 3031-2035 No Lo ad Life cycle/Target Date 2035
Va nguard Target Retirement 2040 0.16 0.52 0.83 0.65 Target Date 2036-2040 Target Retire me nt 2036-2040 No Lo ad Life cycle/Target Date 2040
Va nguard Target Retirement 2045 0.16 0.49 0.89 0.65 Target Date 2041-2045 Target Retire me nt 2041-2045 No Lo ad Life cycle/Target Date 2045
Va nguard Target Retirement 2050 0.16 0.49 0.88 0.67 Target Date 2046-2050 Target Retire me nt 2046-2050 No Lo ad Life cycle/Target Date 2050
Va nguard Target Retirement 2055 0.16 0.46 0.81 0.46 Target Date 2051+Target Retire me nt 2051+ No Lo ad Life cycle/Target Date 2055
Va nguard Target Retirement 2060 0.16 0.45 0.81 N/A Target Date 2051+Target Retire me nt 2051+ No Lo ad N/A
Va nguard Prime Money Marke t 0.16 0.15 N/A 0.19 Money Market Taxable N/A US Cash Management
Pavilio n Consulting Fee ($1,891 p er y ear)
22
Manager Evaluation
23
Historical Performance
Three Year Rolling Percentile Ranking Relative Performance
Historical Statistics (Jul-2011 - Jun-2016)
Quarter
Year
To
Date
1
Year
3
Years
5
Years
10
Years 2015 2014 2013 2012 2011 2010 2009 2008 2007 2006
Vanguard 500 Index Fund (VFINX)2.4 3.8 3.8 11.5 11.9 7.3 1.2 13.5 32.2 15.8 2.0 14.9 26.5 -37.0 5.4 15.6
S&P 500 2.5 3.8 4.0 11.7 12.1 7.4 1.4 13.7 32.4 16.0 2.1 15.1 26.5 -37.0 5.5 15.8
IM U.S. Large Cap Equity 1.6 0.9 -0.6 9.8 10.2 6.5 0.1 10.9 32.6 15.3 -1.3 13.4 28.2 -37.8 6.9 13.1
Vanguard 500 Index Fund (VFINX) Rank 30 22 15 23 13 30 42 15 56 43 20 34 59 41 60 31
Vanguard 500 Index Fund (VFINX)S&P 500
0
25
50
75
100Return Percentile Rank9/06 9/07 9/08 9/09 9/10 9/11 9/12 9/13 9/14 9/15 6/16 Cumulative Annualized Over/Under Relative Performance
Over/Under Performance
0.0
0.2
-0.2
-0.4Return (%)9/06 9/07 9/08 9/09 9/10 9/11 9/12 9/13 9/14 9/15 6/16
Return
Standard
Deviation
Excess
Return Alpha Beta
Sharpe
Ratio
Tracking
Error
Information
Ratio
Downside
Risk Consistency
Inception
Date
Vanguard 500 Index Fund (VFINX)11.9 12.3 12.1 -0.1 1.0 1.0 0.0 -12.1 7.0 0.0 39y 10m
S&P 500 12.1 12.4 12.3 0.0 1.0 1.0 0.0 N/A 6.9 0.0 39y 10m
90 Day U.S. Treasury Bill 0.1 0.0 0.0 0.1 0.0 N/A 12.4 -1.0 0.0 20.0 39y 10m
Manager Evaluation
Vanguard 500 Index Fund (VFINX) vs. S&P 500
As of June 30, 2016
24
Portfolio Characteristics
Portfolio Benchmark
Wtd. Avg. Mkt. Cap ($M)135,842 135,964
Median Mkt. Cap ($M)18,208 18,208
Price/Earnings ratio 19.6 19.6
Price/Book ratio 3.2 3.2
5 Yr. EPS Growth Rate (%)6.3 5.9
Current Yield (%)2.2 2.2
Debt to Equity 1.4 1.4
Number of Stocks 507 505
Beta (5 Years, Monthly)1.00 1.00
Consistency (5 Years, Monthly)1.67 1.00
Sharpe Ratio (5 Years, Monthly)1.00 1.01
Information Ratio (5 Years, Monthly)-10.50 -
Up Market Capture (5 Years, Monthly)99.56 -
Down Market Capture (5 Years, Monthly)100.44 -
Top Ten Equity Holdings
Portfolio
Weight
(%)
Benchmark
Weight
(%)
Active
Weight
(%)
Quarterly
Return
(%)
Apple Inc 2.9 2.9 0.0 -11.7
Microsoft Corp 2.2 2.2 0.0 -6.7
Exxon Mobil Corp 2.1 2.1 0.0 13.1
Johnson & Johnson 1.8 1.8 0.0 12.9
General Electric Co 1.6 1.6 0.0 -0.2
Amazon.com Inc 1.5 1.5 0.0 20.5
AT&T Inc 1.5 1.5 0.0 11.7
Facebook Inc 1.5 1.5 0.0 0.2
Berkshire Hathaway Inc 1.4 1.5 -0.1 2.1
Verizon Communications Inc 1.3 1.3 0.0 4.3
% of Portfolio 17.7 17.8
Distribution of Market Capitalization (%)
Vanguard 500 Index Fund (VFINX)S&P 500
0.0
15.0
30.0
45.0
60.0
>$75 Bil $20 Bil -
$75 Bil
$5 Bil -
$20 Bil
$0 -
$5 Bil
50.3
34.1
15.1
0.4
50.3
34.1
15.2
0.4
Sector Weights (%)
Vanguard 500 Index Fund (VFINX)S&P 500
0.0 5.0 10.0 15.0 20.0 25.0
Utilities
Telecommunication Services
Materials
Information Technology
Industrials
Health Care
Financials
Energy
Consumer Staples
Consumer Discretionary
3.7
2.9
2.9
19.8
10.2
14.7
15.7
7.4
10.6
12.3
3.6
2.9
2.8
19.8
10.2
14.7
15.7
7.4
10.6
12.3
Manager Evaluation
Vanguard 500 Index Fund (VFINX) vs. S&P 500
As of June 30, 2016
25
Historical Performance
Buy and Hold Attribution
Risk and Return (Jul - 2011 - Jun - 2016)Three Year Rolling Percentile Ranking
Quarter
Year
To
Date
1
Year
3
Years
5
Years
10
Years 2015 2014 2013 2012 2011 2010 2009 2008 2007 2006
Vanguard Windsor II (VWNFX)2.9 3.1 -1.1 8.1 10.2 6.0 -3.2 11.2 30.7 16.7 2.7 10.6 27.1 -36.7 2.2 18.2
Russell 1000 Value Index 4.6 6.3 2.9 9.9 11.4 6.1 -3.8 13.5 32.5 17.5 0.4 15.5 19.7 -36.8 -0.2 22.2
IM U.S. Large Cap Value Equity 2.5 2.8 -1.4 8.1 9.5 5.3 -3.7 10.9 32.7 15.3 -2.3 12.7 24.2 -36.8 1.7 17.9
Vanguard Windsor II (VWNFX) Rank 47 46 49 50 32 34 37 43 77 30 15 84 28 49 45 47
Vanguard Windsor II (VWNFX)Russell 1000 Value Index
0
25
50
75
100Return Percentile Rank9/06 9/07 9/08 9/09 9/10 9/11 9/12 9/13 9/14 9/15 6/16 8.0
9.0
10.0
11.0
12.0
13.0
Return (%)12.3 12.6 12.9 13.2 13.5 13.8 14.1
Risk (Standard Deviation %)
Russell 1000 Value Index
Vanguard Windsor II (VWNFX)
Average Active Weight
0.0 10.0 20.0-10.0-20.0
Utilities
Telecommunication Services
Other
Materials
Information Technology
Industrials
Health Care
Financials
Energy
Consumer Staples
Consumer Discretionary
-3.9
0.2
0.3
-0.8
2.4
1.0
6.3
-8.3
-3.8
1.4
5.2
Allocation
(Total: -0.5)
0.0 0.5 1.0-0.5-1.0
-0.1
0.0
0.0
0.0
-0.1
0.0
0.3
0.2
-0.2
0.0
-0.5
Stock
(Total: -0.8)
0.0 0.4 0.8-0.4-0.8-1.2
0.0
-0.1
0.0
-0.1
-0.4
0.3
0.2
-0.5
-0.2
-0.2
0.1
Vanguard Windsor II (VWNFX)
0.0 0.5 1.0-0.5-1.0-1.5
-0.1
-0.1
0.0
-0.1
-0.5
0.3
0.5
-0.3
-0.4
-0.1
-0.4
Manager Evaluation
Vanguard Windsor II (VWNFX) vs. Russell 1000 Value Index
As of June 30, 2016
Differences between the manager return and the attribution return are due primarily to the effects of fees and portfolio trading.
26
Portfolio Characteristics
Portfolio Benchmark
Wtd. Avg. Mkt. Cap ($M)114,153 114,957
Median Mkt. Cap ($M)19,793 7,567
Price/Earnings ratio 16.5 17.1
Price/Book ratio 2.5 2.1
5 Yr. EPS Growth Rate (%)3.7 3.0
Current Yield (%)2.7 2.6
Debt to Equity 1.4 0.9
Number of Stocks 279 692
Beta (5 Years, Monthly)0.97 1.00
Consistency (5 Years, Monthly)43.33 1.00
Sharpe Ratio (5 Years, Monthly)0.85 0.92
Information Ratio (5 Years, Monthly)-0.55 -
Up Market Capture (5 Years, Monthly)95.12 -
Down Market Capture (5 Years, Monthly)99.33 -
Top Ten Equity Holdings
Portfolio
Weight
(%)
Benchmark
Weight
(%)
Active
Weight
(%)
Quarterly
Return
(%)
Medtronic PLC 3.5 1.2 2.3 15.7
Pfizer Inc 3.1 1.9 1.2 19.9
Microsoft Corp 3.0 0.0 3.0 -6.7
JPMorgan Chase & Co 2.9 2.2 0.7 5.7
Philip Morris International Inc 2.8 1.4 1.4 4.7
Johnson & Johnson 2.5 2.7 -0.2 12.9
Wells Fargo & Co 2.5 2.1 0.3 -1.4
Raytheon Co.2.4 0.2 2.2 11.5
Honeywell International Inc 2.2 0.0 2.2 4.4
Bank of America Corp 2.2 1.3 0.8 -1.5
% of Portfolio 27.0 13.1
Distribution of Market Capitalization (%)
Vanguard Windsor II (VWNFX)Russell 1000 Value Index
0.0
15.0
30.0
45.0
60.0
>$75 Bil $20 Bil -
$75 Bil
$5 Bil -
$20 Bil
$0 -
$5 Bil
42.9
30.4
20.9
5.7
50.8
33.5
12.6
3.2
Sector Weights (%)
Vanguard Windsor II (VWNFX)Russell 1000 Value Index
0.0 8.0 16.0 24.0 32.0 40.0
Other
Utilities
Telecommunication Services
Materials
Information Technology
Industrials
Health Care
Financials
Energy
Consumer Staples
Consumer Discretionary
0.3
3.2
3.2
2.1
13.6
11.4
18.8
19.1
9.6
8.9
9.9
0.0
7.3
4.2
2.8
9.5
9.7
11.3
27.7
13.6
9.1
4.7
Manager Evaluation
Vanguard Windsor II (VWNFX) vs. Russell 1000 Value Index
As of June 30, 2016
27
Historical Performance
Buy and Hold Attribution
Risk and Return (Jul - 2011 - Jun - 2016)Three Year Rolling Percentile Ranking
Quarter
Year
To
Date
1
Year
3
Years
5
Years
10
Years 2015 2014 2013 2012 2011 2010 2009 2008 2007 2006
Vanguard US Growth (VWUSX)0.2 -3.3 -1.0 13.2 12.0 7.8 8.5 13.1 35.5 18.4 -0.7 11.5 35.0 -37.8 10.1 1.8
Russell 1000 Growth Index 0.6 1.4 3.0 13.1 12.3 8.8 5.7 13.1 33.5 15.3 2.6 16.7 37.2 -38.4 11.8 9.1
IM U.S. Large Cap Growth Equity 0.3 -2.2 -1.6 11.5 10.4 7.4 5.5 10.5 34.0 14.9 -1.8 15.1 35.0 -39.8 13.9 6.7
Vanguard US Growth (VWUSX) Rank 53 57 44 16 17 42 19 22 35 18 37 81 51 30 77 85
Vanguard US Growth (VWUSX)Russell 1000 Growth Index
0
25
50
75
100Return Percentile Rank9/06 9/07 9/08 9/09 9/10 9/11 9/12 9/13 9/14 9/15 6/16 11.4
11.7
12.0
12.3
12.6
12.9
Return (%)11.2 11.9 12.6 13.3 14.0 14.7 15.4 16.1
Risk (Standard Deviation %)
Russell 1000 Growth Index
Vanguard US Growth (VWUSX)
Average Active Weight
0.0 10.0 20.0-10.0-20.0
Utilities
Telecommunication Services
Other
Materials
Information Technology
Industrials
Health Care
Financials
Energy
Consumer Staples
Consumer Discretionary
-0.1
-2.1
0.0
-2.0
8.4
-4.6
2.3
4.3
-0.2
-5.4
-0.6
Allocation
(Total: -0.4)
0.0 0.3 0.6-0.3-0.6-0.9
0.0
-0.1
0.0
0.0
-0.3
0.0
0.1
0.1
0.0
-0.2
0.0
Stock
(Total: 0.4)
0.0 0.6 1.2-0.6-1.2
0.0
0.0
0.0
0.1
0.5
0.2
-0.6
0.6
-0.1
0.0
-0.3
Vanguard US Growth (VWUSX)
0.0 0.5 1.0 1.5-0.5-1.0-1.5
0.0
-0.1
0.0
0.1
0.1
0.2
-0.5
0.7
-0.1
-0.2
-0.3
Manager Evaluation
Vanguard US Growth (VWUSX) vs. Russell 1000 Growth Index
As of June 30, 2016
Differences between the manager return and the attribution return are due primarily to the effects of fees and portfolio trading.
28
Portfolio Characteristics
Portfolio Benchmark
Wtd. Avg. Mkt. Cap ($M)112,876 129,410
Median Mkt. Cap ($M)21,073 8,880
Price/Earnings ratio 27.1 23.3
Price/Book ratio 4.6 5.5
5 Yr. EPS Growth Rate (%)12.8 9.7
Current Yield (%)1.0 1.6
Debt to Equity 0.7 1.0
Number of Stocks 152 600
Beta (5 Years, Monthly)1.09 1.00
Consistency (5 Years, Monthly)55.00 1.00
Sharpe Ratio (5 Years, Monthly)0.88 1.00
Information Ratio (5 Years, Monthly)-0.02 -
Up Market Capture (5 Years, Monthly)107.29 -
Down Market Capture (5 Years, Monthly)115.98 -
Top Ten Equity Holdings
Portfolio
Weight
(%)
Benchmark
Weight
(%)
Active
Weight
(%)
Quarterly
Return
(%)
Facebook Inc 3.8 2.5 1.2 0.2
Amazon.com Inc 3.7 2.8 1.0 20.5
Google Inc (Class C)3.7 2.0 1.6 -7.1
Visa Inc 3.1 1.4 1.7 -2.8
MasterCard Inc 3.0 0.8 2.2 -6.6
Apple Inc 2.5 4.7 -2.3 -11.7
Microsoft Corp 2.3 3.8 -1.6 -6.7
Allergan PLC 2.2 0.5 1.7 -13.8
Alphabet Inc 2.2 2.0 0.1 -7.8
Qualcomm Inc.2.1 0.2 2.0 5.8
% of Portfolio 28.5 20.9
Distribution of Market Capitalization (%)
Vanguard US Growth (VWUSX)Russell 1000 Growth Index
0.0
15.0
30.0
45.0
60.0
>$75 Bil $20 Bil -
$75 Bil
$5 Bil -
$20 Bil
$0 -
$5 Bil
46.9
31.5
17.9
3.7
42.7
31.0
24.4
1.9
Sector Weights (%)
Vanguard US Growth (VWUSX)Russell 1000 Growth Index
0.0 8.0 16.0 24.0 32.0 40.0 48.0
Other
Utilities
Telecommunication Services
Materials
Information Technology
Industrials
Health Care
Financials
Energy
Consumer Staples
Consumer Discretionary
0.0
0.0
0.3
1.5
35.7
7.9
17.8
9.5
0.4
6.0
20.8
0.0
0.1
1.3
3.6
29.3
10.8
17.1
5.7
0.6
10.6
20.9
Manager Evaluation
Vanguard US Growth (VWUSX) vs. Russell 1000 Growth Index
As of June 30, 2016
29
Historical Performance
Three Year Rolling Percentile Ranking Relative Performance
Historical Statistics (Jul-2011 - Jun-2016)
Quarter
Year
To
Date
1
Year
3
Years
5
Years
10
Years 2015 2014 2013 2012 2011 2010 2009 2008 2007 2006
Vanguard Mid-Cap Index Fund (VIMSX)2.3 3.4 -1.0 10.6 10.4 7.7 -1.5 13.6 35.0 15.8 -2.1 25.5 40.2 -41.8 6.0 13.6
Vanguard Mid-Cap Index Fund Blended Benchmark 2.3 3.5 -0.9 10.8 10.7 7.9 -1.3 13.8 35.4 16.0 -1.9 25.7 40.5 -41.8 6.2 13.7
IM U.S. Mid Cap Equity 2.4 2.0 -4.5 8.4 8.4 6.7 -2.7 8.4 35.0 15.2 -4.0 23.7 36.0 -41.6 9.9 10.9
Vanguard Mid-Cap Index Fund (VIMSX) Rank 54 39 27 21 18 24 38 9 51 44 34 35 33 53 66 31
Vanguard Mid-Cap Index Fund (VIMSX)
Vanguard Mid-Cap Index Fund Blended Benchmark
0
25
50
75
100Return Percentile Rank9/06 9/07 9/08 9/09 9/10 9/11 9/12 9/13 9/14 9/15 6/16
Cumulative Annualized Over/Under Relative Performance
Over/Under Performance
0.0
0.2
-0.2
-0.4Return (%)9/06 9/07 9/08 9/09 9/10 9/11 9/12 9/13 9/14 9/15 6/16
Return
Standard
Deviation
Excess
Return Alpha Beta
Sharpe
Ratio
Tracking
Error
Information
Ratio
Downside
Risk Consistency
Inception
Date
Vanguard Mid-Cap Index Fund (VIMSX)10.4 14.6 11.1 -0.2 1.0 0.8 0.1 -3.1 9.5 0.0 18y 1m
Vanguard Mid-Cap Index Fund Blended Benchmark 10.7 14.7 11.3 0.0 1.0 0.8 0.0 N/A 9.5 0.0 18y 1m
90 Day U.S. Treasury Bill 0.1 0.0 0.0 0.1 0.0 N/A 14.7 -0.8 0.0 25.0 18y 1m
Manager Evaluation
Vanguard Mid-Cap Index Fund (VIMSX) vs. Vanguard Mid-Cap Index Fund Blended Benchmark
As of June 30, 2016
Note: Prior to May 16, 2003, the Vanguard Mid-Cap Index was benchmarked to the S&P MidCap 400 Index. From May 16, 2003 to January 30, 2013, the Index
fund was benchmarked to the MSCI US Mid Cap 450 Index. Starting on January 31, 2013, the benchmark transitioned to the CRSP US Mid Cap Index.
30
Portfolio Characteristics
Portfolio Benchmark
Wtd. Avg. Mkt. Cap ($M)12,283 12,282
Median Mkt. Cap ($M)9,463 9,487
Price/Earnings ratio 21.2 21.2
Price/Book ratio 3.0 3.0
5 Yr. EPS Growth Rate (%)9.9 9.9
Current Yield (%)1.6 1.6
Debt to Equity 0.9 0.9
Number of Stocks 344 343
Beta (5 Years, Monthly)1.02 1.00
Consistency (5 Years, Monthly)26.67 1.00
Sharpe Ratio (5 Years, Monthly)0.78 0.82
Information Ratio (5 Years, Monthly)-0.52 -
Up Market Capture (5 Years, Monthly)99.70 -
Down Market Capture (5 Years, Monthly)101.63 -
Top Ten Equity Holdings
Portfolio
Weight
(%)
Benchmark
Weight
(%)
Active
Weight
(%)
Quarterly
Return
(%)
Equinix Inc 0.9 0.9 0.0 17.8
Fidelity National Information Services Inc 0.8 0.8 0.0 16.8
Fiserv Inc.0.8 0.8 0.0 6.0
NVIDIA Corp 0.8 0.8 0.0 32.3
Newell Brands Inc 0.8 0.8 0.0 10.1
Ross Stores Inc 0.7 0.7 0.0 -1.8
Electronic Arts Inc.0.7 0.7 0.0 14.6
Dollar Tree Inc 0.7 0.7 0.0 14.3
Edwards Lifesciences Corp 0.7 0.7 0.0 13.1
ConAgra Foods Inc.0.7 0.7 0.0 7.7
% of Portfolio 7.4 7.4
Distribution of Market Capitalization (%)
Vanguard Mid-Cap Index Fund (VIMSX)
CRSP U.S. Mid Cap TR Index
0.0
50.0
100.0
150.0
$20 Bil -
$75 Bil
$5 Bil -
$20 Bil
$0 -
$5 Bil
9.8
87.2
3.09.8
87.2
3.0
Sector Weights (%)
Vanguard Mid-Cap Index Fund (VIMSX)
CRSP U.S. Mid Cap TR Index
0.0 5.0 10.0 15.0 20.0 25.0
Utilities
Telecommunication Services
Materials
Information Technology
Industrials
Health Care
Financials
Energy
Consumer Staples
Consumer Discretionary
5.6
1.2
6.4
16.7
12.0
9.6
18.9
5.5
5.9
18.1
5.6
1.2
6.4
16.7
12.0
9.6
18.9
5.5
5.9
18.1
Manager Evaluation
Vanguard Mid-Cap Index Fund (VIMSX) vs. CRSP U.S. Mid Cap TR Index
As of June 30, 2016
31
Historical Performance
Three Year Rolling Percentile Ranking Relative Performance
Historical Statistics (Jul-2011 - Jun-2016)
Quarter
Year
To
Date
1
Year
3
Years
5
Years
10
Years 2015 2014 2013 2012 2011 2010 2009 2008 2007 2006
Vanguard Small-Cap Index Fund (NAESX)3.9 5.0 -3.0 8.8 9.7 7.6 -3.8 7.4 37.6 18.0 -2.8 27.7 36.1 -36.1 1.2 15.6
Vanguard Small-Cap Index Fund Blended Benchmark 4.0 5.0 -2.9 8.9 9.9 7.7 -3.7 7.5 37.8 18.2 -2.8 27.8 36.1 -36.2 1.2 15.8
IM U.S. Small Cap Equity 2.8 2.2 -6.4 6.6 8.1 5.4 -4.9 3.6 38.3 14.8 -4.0 25.7 29.1 -38.4 -1.2 13.1
Vanguard Small-Cap Index Fund (NAESX) Rank 20 19 24 15 17 8 34 10 55 19 40 30 27 41 40 36
Vanguard Small-Cap Index Fund (NAESX)
Vanguard Small-Cap Index Fund Blended Benchmark
0
25
50
75
100Return Percentile Rank9/06 9/07 9/08 9/09 9/10 9/11 9/12 9/13 9/14 9/15 6/16
Cumulative Annualized Over/Under Relative Performance
Over/Under Performance
0.0
0.2
0.4
-0.2
-0.4Return (%)9/06 9/07 9/08 9/09 9/10 9/11 9/12 9/13 9/14 9/15 6/16
Return
Standard
Deviation
Excess
Return Alpha Beta
Sharpe
Ratio
Tracking
Error
Information
Ratio
Downside
Risk Consistency
Inception
Date
Vanguard Small-Cap Index Fund (NAESX)9.7 16.4 10.7 -0.1 1.0 0.7 0.0 -3.7 11.0 5.0 48y 5m
Vanguard Small-Cap Index Fund Blended Benchmark 9.9 16.4 10.9 0.0 1.0 0.7 0.0 N/A 11.0 0.0 48y 5m
90 Day U.S. Treasury Bill 0.1 0.0 0.0 0.1 0.0 N/A 16.4 -0.7 0.0 25.0 48y 5m
Manager Evaluation
Vanguard Small-Cap Index Fund (NAESX) vs. Vanguard Small-Cap Index Fund Blended Benchmark
As of June 30, 2016
Note: Prior to May 16, 2003, the Vanguard Small-Cap Index was benchmarked to the Russell 2000 Index. From May 16, 2003 to January 30, 2013, the Index
fund was benchmarked to the MSCI US Small Cap 1750 Index. Starting on January 31, 2013, the benchmark transitioned to the CRSP US Small Cap Index.
32
Portfolio Characteristics
Portfolio Benchmark
Wtd. Avg. Mkt. Cap ($M)3,591 3,589
Median Mkt. Cap ($M)1,747 1,756
Price/Earnings ratio 20.4 20.4
Price/Book ratio 2.5 2.5
5 Yr. EPS Growth Rate (%)10.7 10.7
Current Yield (%)1.7 1.7
Debt to Equity 0.5 0.5
Number of Stocks 1,466 1,454
Beta (5 Years, Monthly)1.01 1.00
Consistency (5 Years, Monthly)23.33 1.00
Sharpe Ratio (5 Years, Monthly)0.68 0.70
Information Ratio (5 Years, Monthly)-0.41 -
Up Market Capture (5 Years, Monthly)99.99 -
Down Market Capture (5 Years, Monthly)101.51 -
Top Ten Equity Holdings
Portfolio
Weight
(%)
Benchmark
Weight
(%)
Active
Weight
(%)
Quarterly
Return
(%)
Duke Realty Corp 0.3 0.3 0.0 19.2
Ingredion Inc 0.3 0.3 0.0 21.6
Newfield Exploration Co 0.3 0.3 0.0 32.9
Atmos Energy Corp 0.3 0.3 0.0 10.1
Arthur J. Gallagher & Co.0.3 0.3 0.0 7.9
Regency Centers Corp.0.3 0.3 0.0 12.6
Mid-America Apartment Communities Inc.0.3 0.3 0.0 5.0
Huntington Ingalls Industries Inc 0.3 0.3 0.0 23.1
Westar Energy Inc.0.3 0.3 0.0 13.8
AGL Resources Inc.0.3 0.3 0.0 2.1
% of Portfolio 3.0 3.0
Distribution of Market Capitalization (%)
Vanguard Small-Cap Index (NAESX)
CRSP U.S. Small Cap TR Index
0.0
25.0
50.0
75.0
100.0
$5 Bil -
$20 Bil
$0 -
$5 Bil
23.2
76.8
23.2
76.8
Sector Weights (%)
Vanguard Small-Cap Index (NAESX)
CRSP U.S. Small Cap TR Index
0.0 6.0 12.0 18.0 24.0 30.0 36.0
Other
Utilities
Telecommunication Services
Materials
Information Technology
Industrials
Health Care
Financials
Energy
Consumer Staples
Consumer Discretionary
0.0
5.4
0.4
5.3
16.0
14.8
10.6
26.3
4.5
3.8
12.9
0.0
5.4
0.4
5.3
15.9
14.8
10.6
26.4
4.5
3.8
12.8
Manager Evaluation
Vanguard Small-Cap Index (NAESX) vs. CRSP U.S. Small Cap TR Index
As of June 30, 2016
33
Historical Performance
Buy and Hold Attribution
Risk and Return (Jul - 2011 - Jun - 2016)Three Year Rolling Percentile Ranking
Quarter
Year
To
Date
1
Year
3
Years
5
Years
10
Years 2015 2014 2013 2012 2011 2010 2009 2008 2007 2006
Vanguard Int. Growth (VWIGX)0.5 -1.6 -8.3 4.0 2.3 3.5 -0.7 -5.6 22.9 20.0 -13.7 15.7 41.6 -44.9 16.0 26.0
MSCI AC World ex USA (Net)-0.6 -1.0 -10.2 1.2 0.1 1.9 -5.7 -3.9 15.3 16.8 -13.7 11.2 41.4 -45.5 16.7 26.7
IM International Equity -0.1 -0.9 -9.9 1.6 0.7 2.3 -2.8 -4.5 17.4 18.6 -14.9 12.9 36.4 -46.1 13.2 26.2
Vanguard Int. Growth (VWIGX) Rank 42 54 37 19 28 30 37 62 23 36 39 36 39 44 39 52
Vanguard Int. Growth (VWIGX)MSCI AC World ex USA (Net)
0
25
50
75
100Return Percentile Rank9/06 9/07 9/08 9/09 9/10 9/11 9/12 9/13 9/14 9/15 6/16 -4.0
-2.0
0.0
2.0
4.0
6.0
Return (%)12.8 13.6 14.4 15.2 16.0 16.8 17.6 18.4
Risk (Standard Deviation %)
MSCI AC World ex USA (Net)
Vanguard Int. Growth (VWIGX)
Average Active Weight
0.0 10.0 20.0-10.0-20.0
Utilities
Telecommunication Services
Other
Materials
Information Technology
Industrials
Health Care
Financials
Energy
Consumer Staples
Consumer Discretionary
-3.6
-2.3
0.2
-1.6
10.8
-0.1
1.2
-5.8
-4.1
-3.8
9.2
Allocation
(Total: -0.8)
0.0 0.5 1.0-0.5-1.0
-0.1
0.0
0.0
-0.1
0.1
0.0
0.1
0.2
-0.4
-0.1
-0.6
Stock
(Total: 1.1)
0.0 0.6 1.2-0.6-1.2
0.0
0.3
0.0
-0.2
0.0
0.3
0.0
0.0
0.0
0.0
0.7
Vanguard Int. Growth (VWIGX)
0.0 0.3 0.6-0.3-0.6-0.9
-0.1
0.3
0.0
-0.3
0.1
0.3
0.1
0.2
-0.3
-0.2
0.2
Manager Evaluation
Vanguard International Growth (VWIGX) vs. MSCI AC World ex USA (Net)
As of June 30, 2016
Differences between the manager return and the attribution return are due primarily to the effects of fees and portfolio trading.
34
Total Attribution
0.0 0.3 0.6 0.9 1.2 1.5 1.8-0.3-0.6-0.9-1.2-1.5
Pacific
Other
North America
Middle East
Europe ex EMU
EMU
EM Latin America
EM Europe + Middle East + Africa
EM Asia
0.9
-0.1
0.2
-0.1
-0.1
-0.7
0.1
-0.1
0.1
Performance Attribution
Average Active Weight
0.0 5.0 10.0-5.0-10.0-15.0
Pacific
Other
North America
Middle East
Europe ex EMU
EMU
EM Latin America
EM Europe + Middle East + Africa
EM Asia
-8.0
0.4
2.2
0.9
2.7
2.3
-1.7
-2.3
3.5
Allocation
(Total: -0.2)
0.0 0.1 0.2-0.1-0.2-0.3
-0.1
0.0
0.1
0.0
0.0
-0.1
-0.1
0.0
0.0
Stock
(Total: 0.3)
0.0 0.6 1.2 1.8-0.6-1.2-1.8
1.0
-0.1
0.1
0.0
-0.2
-0.6
0.2
-0.1
0.0
Manager Evaluation
Vanguard International Growth (VWIGX) vs. MSCI AC World ex USA (Net)
1 Quarter Ending June 30, 2016
35
Portfolio Characteristics
Portfolio Benchmark
Wtd. Avg. Mkt. Cap ($M)66,448 51,174
Median Mkt. Cap ($M)19,041 6,714
Price/Earnings ratio 21.0 14.7
Price/Book ratio 3.5 2.3
5 Yr. EPS Growth Rate (%)9.5 6.1
Current Yield (%)1.9 3.4
Debt to Equity 1.2 1.2
Number of Stocks 160 1,859
Beta (5 Years, Monthly)1.06 1.00
Consistency (5 Years, Monthly)50.00 1.00
Sharpe Ratio (5 Years, Monthly)0.22 0.08
Information Ratio (5 Years, Monthly)0.66 -
Up Market Capture (5 Years, Monthly)107.91 -
Down Market Capture (5 Years, Monthly)96.42 -
Top Ten Equity Holdings
Portfolio
Weight
(%)
Benchmark
Weight
(%)
Active
Weight
(%)
Quarterly
Return
(%)
Tencent Holdings LTD 4.5 0.8 3.7 11.5
AIA Group Ltd 3.8 0.4 3.4 6.7
Amazon.com Inc 3.2 0.0 3.2 20.5
Baidu Inc 3.1 0.3 2.9 -13.5
Alibaba Group Holding Ltd 3.0 0.5 2.5 0.6
Industria De Diseno Textil Inditex SA 2.9 0.2 2.7 -0.3
Softbank Group Corp 2.2 0.3 1.8 17.8
M3 Inc 1.8 0.0 1.8 36.9
Smc Corp 1.6 0.1 1.6 4.0
Atlas Copco AB 1.6 0.1 1.5 3.3
% of Portfolio 27.8 2.7
Distribution of Market Capitalization (%)
Vanguard International Growth (VWIGX)
MSCI AC World ex USA (Net)
0.0
15.0
30.0
45.0
60.0
>$75 Bil $20 Bil -
$75 Bil
$5 Bil -
$20 Bil
$0 -
$5 Bil
22.2
36.0 33.4
8.3
25.7
38.8
31.0
4.4
Sector Weights (%)
Vanguard International Growth (VWIGX)
MSCI AC World ex USA (Net)
0.0 6.0 12.0 18.0 24.0 30.0
Other
Utilities
Telecommunication Services
Materials
Information Technology
Industrials
Health Care
Financials
Energy
Consumer Staples
Consumer Discretionary
0.2
0.0
3.6
5.1
19.4
11.4
10.7
18.6
2.5
6.9
21.4
0.0
3.6
5.3
7.1
9.0
11.3
9.4
24.4
6.9
11.6
11.3
Manager Evaluation
Vanguard International Growth (VWIGX) vs. MSCI AC World ex USA (Net)
As of June 30, 2016
36
Vanguard
International Growth
(VWIGX)
MSCI AC World ex
USA (Net)
Australia 0.7 5.1
Hong Kong 4.8 2.3
Japan 12.9 16.4
New Zealand 0.0 0.1
Singapore 0.2 1.0
Pacific 18.6 24.9
Austria 0.0 0.1
Belgium 0.0 1.0
Finland 0.0 0.7
France 4.7 6.8
Germany 7.0 6.1
Ireland 1.1 0.4
Italy 2.6 1.4
Netherlands 2.4 2.2
Portugal 0.3 0.1
Spain 4.1 2.1
EMU 22.3 20.8
Denmark 2.3 1.4
Norway 1.4 0.5
Sweden 5.2 2.0
Switzerland 5.1 6.6
United Kingdom 11.3 13.9
Europe ex EMU 25.3 24.2
Canada 2.6 6.8
United States 8.8 0.2
Israel 0.4 0.5
Middle East 0.4 0.5
Developed Markets 78.0 77.4
Vanguard
International Growth
(VWIGX)
MSCI AC World ex
USA (Net)
Brazil 1.1 1.6
Cayman Islands 0.0 0.0
Chile 0.0 0.3
Colombia 0.0 0.1
Mexico 0.3 0.9
Peru 0.1 0.1
Virgin Islands 0.0 0.0
EM Latin America 1.5 3.0
China 13.4 5.8
India 2.1 1.9
Indonesia 0.3 0.6
Korea 2.1 3.3
Malaysia 0.0 0.7
Philippines 0.0 0.4
Taiwan 1.2 2.7
Thailand 0.6 0.5
EM Asia 19.8 15.8
Czech Republic 0.0 0.0
Egypt 0.0 0.0
Greece 0.0 0.1
Hungary 0.0 0.1
Poland 0.0 0.3
Qatar 0.0 0.2
Russia 0.3 0.8
South Africa 0.2 1.7
Turkey 0.0 0.3
United Arab Emirates 0.0 0.2
EM Europe + Middle East + Africa 0.5 3.7
Emerging Markets 21.7 22.6
Frontier Markets 0.0 0.0
Cash 0.0 0.0
Other 0.3 0.0
Total 100.0 100.0
Manager Evaluation
Vanguard International Growth (VWIGX) vs. MSCI AC World ex USA (Net)
As of June 30, 2016
37
Historical Performance
Three Year Rolling Percentile Ranking Relative Performance
Historical Statistics (Jul-2011 - Jun-2016)
Quarter
Year
To
Date
1
Year
3
Years
5
Years
10
Years 2015 2014 2013 2012 2011 2010 2009 2008 2007 2006
Vanguard Total Bond Market Index Fund (VBMFX)2.3 5.5 6.0 3.9 3.6 5.0 0.3 5.8 -2.3 4.0 7.6 6.4 5.9 5.1 6.9 4.3
Vanguard Total Bond Market Index Fund Benchmark 2.3 5.5 6.1 4.1 3.8 5.2 0.4 5.9 -2.0 4.3 7.9 6.6 5.9 5.2 7.0 4.3
IM U.S. Broad Market Core+ Fixed Income 2.6 5.2 4.5 3.7 4.0 5.5 -0.4 5.3 -1.1 8.2 6.1 8.2 14.2 -2.2 5.5 4.1
Vanguard Total Bond Market Index Fund (VBMFX) Rank 68 40 12 41 65 67 21 39 84 98 20 88 100 11 25 45
Vanguard Total Bond Market Index Fund (VBMFX)
Vanguard Total Bond Market Index Fund Benchmark
0
25
50
75
100Return Percentile Rank9/06 9/07 9/08 9/09 9/10 9/11 9/12 9/13 9/14 9/15 6/16
Cumulative Annualized Over/Under Relative Performance
Over/Under Performance
0.0
0.3
0.6
-0.3
-0.6Return (%)9/06 9/07 9/08 9/09 9/10 9/11 9/12 9/13 9/14 9/15 6/16
Return
Standard
Deviation
Excess
Return Alpha Beta
Sharpe
Ratio
Tracking
Error
Information
Ratio
Downside
Risk Consistency
Inception
Date
Vanguard Total Bond Market Index Fund (VBMFX)3.6 3.0 3.5 -0.3 1.0 1.2 0.1 -1.3 1.4 25.0 29y 6m
Vanguard Total Bond Market Index Fund Benchmark 3.8 3.0 3.7 0.0 1.0 1.3 0.0 N/A 1.3 0.0 29y 6m
90 Day U.S. Treasury Bill 0.1 0.0 0.0 0.1 0.0 N/A 3.0 -1.3 0.0 25.0 29y 6m
Manager Evaluation
Vanguard Total Bond Market Index Fund (VBMFX) vs. Vanguard Total Bond Market Index Fund Benchmark
As of June 30, 2016
Note: Prior to January 1, 2010, the Vanguard Total Bond Market Index was benchmarked to the Barclays Aggregate Index. Starting on January 1, 2010, the
benchmark was transitioned to the Barclays Aggregate Float Adjusted Index.
38
Portfolio Characteristics
Portfolio Benchmark
Effective Duration 5.8 5.8
Avg. Maturity 8.0 8.0
Avg. Quality AA+AA+
Yield To Maturity (%)1.9 1.9
Credit Quality Distribution (%)
Vanguard Total Bond Market Index (VBMFX)
Barclays U.S. Aggregate Float Adjusted
0.0
25.0
50.0
75.0
100.0
AAAAAABBB67.8
4.9
12.4 14.9
68.6
4.2
12.4 14.8
Maturity Distribution (%)
Vanguard Total Bond Market Index (VBMFX)
Barclays U.S. Aggregate Float Adjusted
0.0
15.0
30.0
45.0
< 1 Yr1 < 3 Yrs3 < 5 Yrs5 < 10 Yrs10 < 20 Yrs> 20 Yrs0.0
23.0
29.4 30.0
4.0
13.6
1.8
22.3
30.0 28.7
3.9
13.3
Sector Distribution (%)
Vanguard Total Bond Market Index (VBMFX)
Barclays U.S. Aggregate Float Adjusted
0.0
15.0
30.0
45.0
60.0
TreasuriesAgenciesCreditMBSABSNon-USEmergingOtherCMBS40.4
3.7
23.8
20.2
0.5
7.3
2.2 0.0 1.9
40.5
2.4
28.0
19.6
0.6
6.1
0.0 0.8 2.0
Manager Evaluation
Vanguard Total Bond Market Index (VBMFX) vs. Barclays U.S. Aggregate Float Adjusted
As of June 30, 2016
39
Historical Performance
Three Year Rolling Percentile Ranking Relative Performance
Historical Statistics (Jul-2011 - Jun-2016)
Quarter
Year
To
Date
1
Year
3
Years
5
Years
10
Years 2015 2014 2013 2012 2011 2010 2009 2008 2007 2006
Vanguard Retirement Savings Trust 0.5 0.9 1.9 1.8 2.0 2.9 1.9 1.8 1.7 2.4 2.9 2.9 3.0 4.3 4.5 4.3
Ryan 3 Yr GIC Master 0.3 0.7 1.3 1.1 1.3 2.7 1.2 1.0 1.1 1.5 2.4 3.5 4.5 4.8 4.5 3.8
IM U.S. Short Duration Fixed Income 0.6 1.4 1.1 1.0 1.1 2.5 0.3 0.6 0.2 2.4 1.2 3.2 6.0 -1.0 5.0 4.1
Vanguard Retirement Savings Trust Rank 72 74 15 9 10 33 1 6 4 50 9 55 77 22 61 35
Vanguard Retirement Savings Trust Ryan 3 Yr GIC Master
0
25
50
75
100Return Percentile Rank9/06 9/07 9/08 9/09 9/10 9/11 9/12 9/13 9/14 9/15 6/16 Cumulative Annualized Over/Under Relative Performance
Over/Under Performance
0.0
0.4
0.8
-0.4
-0.8
-1.2Return (%)9/06 9/07 9/08 9/09 9/10 9/11 9/12 9/13 9/14 9/15 6/16
Return
Standard
Deviation
Excess
Return Alpha Beta
Sharpe
Ratio
Tracking
Error
Information
Ratio
Downside
Risk Consistency
Inception
Date
Vanguard Retirement Savings Trust 2.0 0.2 2.0 0.7 1.0 9.8 0.1 10.0 0.0 100.0 13y 6m
Ryan 3 Yr GIC Master 1.3 0.2 1.2 0.0 1.0 7.0 0.0 N/A 0.0 0.0 13y 6m
90 Day U.S. Treasury Bill 0.1 0.0 0.0 0.1 0.0 -0.5 0.2 -7.0 0.0 0.0 13y 6m
Manager Evaluation
Vanguard Retirement Savings Trust vs. Ryan 3 Yr GIC Master
As of June 30, 2016
40
Historical Performance
Three Year Rolling Percentile Ranking Relative Performance
Historical Statistics (Jul-2011 - Jun-2016)
Quarter
Year
To
Date
1
Year
3
Years
5
Years
10
Years 2015 2014 2013 2012 2011 2010 2009 2008 2007 2006
Vanguard Balanced Index Fund (VBINX)2.5 4.5 3.9 8.2 8.5 6.8 0.4 9.8 17.9 11.3 4.1 13.1 20.1 -22.2 6.2 11.0
Vanguard Balanced Index Fund Benchmark 2.5 4.5 4.0 8.4 8.6 6.9 0.6 9.9 18.2 11.6 4.1 13.5 19.7 -22.0 6.3 11.1
IM Mixed-Asset Target Alloc Growth 1.8 2.3 -1.6 6.3 6.4 5.2 -1.2 6.3 19.8 13.0 -1.9 12.7 24.9 -30.7 6.4 11.7
Vanguard Balanced Index Fund (VBINX) Rank 18 10 8 11 12 10 18 12 71 80 3 43 84 7 55 62
Vanguard Balanced Index Fund (VBINX)
Vanguard Balanced Index Fund Benchmark
0
25
50
75
100Return Percentile Rank9/06 9/07 9/08 9/09 9/10 9/11 9/12 9/13 9/14 9/15 6/16
Cumulative Annualized Over/Under Relative Performance
Over/Under Performance
0.0
0.4
0.8
-0.4
-0.8Return (%)9/06 9/07 9/08 9/09 9/10 9/11 9/12 9/13 9/14 9/15 6/16
Return
Standard
Deviation
Excess
Return Alpha Beta
Sharpe
Ratio
Tracking
Error
Information
Ratio
Downside
Risk Consistency
Inception
Date
Vanguard Balanced Index Fund (VBINX)8.5 7.4 8.4 -0.1 1.0 1.1 0.1 -1.2 3.9 25.0 23y 7m
Vanguard Balanced Index Fund Benchmark 8.6 7.4 8.6 0.0 1.0 1.2 0.0 N/A 4.0 0.0 23y 7m
90 Day U.S. Treasury Bill 0.1 0.0 0.0 0.1 0.0 N/A 7.4 -1.2 0.0 20.0 23y 7m
Manager Evaluation
Vanguard Balanced Index Fund (VBINX) vs. Vanguard Balanced Index Fund Benchmark
As of June 30, 2016
Note: Prior to June 1, 2005, the Vanguard Balanced Index was benchmarked to 60% DJ U.S. Total Stock Market Index/40% LB Aggregate Bond Index. From
June 1, 2005 to December 31, 2009, the Index fund was benchmarked to 60% MSCI US Broad Market Index/40% BC Aggregate Index. From January 1, 2010
to January 14, 2013, the Index fund was benchmarked to 60% MSCI US Broad Market Index/40% BC Aggregate Float Adjusted Index. Starting January 15,
2013, the benchmark transitioned to 60% CRSP US Total Market Index/40% BC Aggregate Float Adjusted Index.
41
Portfolio Characteristics
Portfolio Benchmark
Wtd. Avg. Mkt. Cap ($M)112,429 112,439
Median Mkt. Cap ($M)1,260 854
Price/Earnings ratio 19.8 19.8
Price/Book ratio 3.0 3.0
5 Yr. EPS Growth Rate (%)6.9 8.8
Current Yield (%)2.1 2.1
Debt to Equity 0.8 0.8
Number of Stocks 3,117 3,624
Beta (5 Years, Monthly)0.58 1.00
Consistency (5 Years, Monthly)40.00 1.00
Sharpe Ratio (5 Years, Monthly)1.14 0.94
Information Ratio (5 Years, Monthly)-0.62 -
Up Market Capture (5 Years, Monthly)63.05 -
Down Market Capture (5 Years, Monthly)54.31 -
Top Ten Equity Holdings
Portfolio
Weight
(%)
Benchmark
Weight
(%)
Active
Weight
(%)
Quarterly
Return
(%)
Apple Inc 2.3 2.3 0.0 -11.7
Exxon Mobil Corp 1.8 1.8 0.0 13.1
Microsoft Corp 1.7 1.7 0.0 -6.7
Johnson & Johnson 1.5 1.5 0.0 12.9
General Electric Co 1.3 1.3 0.0 -0.2
Amazon.com Inc 1.3 1.3 0.0 20.5
AT&T Inc 1.2 1.2 0.0 11.7
Berkshire Hathaway Inc 1.2 0.8 0.4 2.1
Facebook Inc 1.1 1.1 0.0 0.2
Verizon Communications Inc 1.0 1.0 0.0 4.3
% of Portfolio 14.5 14.1
Distribution of Market Capitalization (%)
Vanguard Balanced Index Fund (VBINX) - Equity Holdings
CRSP U.S. Total Market TR Index
0.0
15.0
30.0
45.0
60.0
>$75 Bil $20 Bil -
$75 Bil
$5 Bil -
$20 Bil
$0 -
$5 Bil
41.4
28.7
18.2
11.7
41.4
28.6
18.1
11.8
Sector Weights (%)
Vanguard Balanced Index Fund (VBINX) - Equity Holdings
CRSP U.S. Total Market TR Index
0.0 5.0 10.0 15.0 20.0 25.0
Utilities
Telecommunication Services
Materials
Information Technology
Industrials
Health Care
Financials
Energy
Consumer Staples
Consumer Discretionary
3.7
2.6
3.3
19.1
10.7
14.3
17.5
6.8
9.3
12.7
3.7
2.6
3.3
19.1
10.7
14.3
17.5
6.8
9.3
12.7
Manager Evaluation
Vanguard Balanced Index Fund (VBINX) - Equity Holdings vs. CRSP U.S. Total Market TR Index
As of June 30, 2016
42
Portfolio Characteristics
Portfolio Benchmark
Effective Duration 5.8 5.8
Avg. Maturity 8.0 8.0
Avg. Quality AA+AA+
Yield To Maturity (%)1.9 1.9
Credit Quality Distribution (%)
Vanguard Balanced Index Fund (VBINX) - Fixed Income Holdings
Barclays U.S. Aggregate Float Adjusted
0.0
25.0
50.0
75.0
100.0
AAAAAABBB67.8
4.9
12.4 14.9
68.2
4.2
12.6 15.0
Maturity Distribution (%)
Vanguard Balanced Index Fund (VBINX) - Fixed Income Holdings
Barclays U.S. Aggregate Float Adjusted
0.0
15.0
30.0
45.0
60.0
< 1 Yr1 < 3 Yrs3 < 5 Yrs5 < 10 Yrs10 < 20 Yrs> 20 Yrs0.0
23.0
29.4 30.0
4.0
13.6
1.0
22.7 25.8
33.8
3.9
12.8
Sector Distribution (%)
Vanguard Balanced Index Fund (VBINX) - Fixed Income Holdings
Barclays U.S. Aggregate Float Adjusted
0.0
15.0
30.0
45.0
60.0
TreasuriesAgenciesCreditMBSABSNon-USEmergingOtherCMBS40.4
3.7
23.8
20.2
0.5
7.3
2.2 0.0 1.9
39.9
2.4
28.3
20.4
2.8 5.2
0.0 1.0 0.0
Manager Evaluation
Vanguard Balanced Index Fund (VBINX) - Fixed Income Holdings vs. Barclays U.S. Aggregate Float Adjusted
As of June 30, 2016
43
Historical Performance
Three Year Rolling Percentile Ranking Risk and Return (Jul-2011 - Jun-2016)
Historical Statistics (Jul-2011 - Jun-2016)
Quarter
Year
To
Date
1
Year
3
Years
5
Years
10
Years 2015 2014 2013 2012 2011 2010 2009 2008 2007 2006
Vanguard Target Retirement Income (VTINX)1.9 4.3 3.3 4.9 5.0 5.5 -0.2 5.5 5.9 8.2 5.2 9.4 14.3 -10.9 8.2 6.4
Vanguard Target Income Composite Index 1.9 4.2 3.4 5.1 5.1 5.5 0.1 5.8 6.0 8.4 5.3 9.4 14.3 -11.3 8.1 6.5
IM Mixed-Asset Target Today 2.0 3.9 1.9 3.7 3.9 4.3 -1.4 3.9 5.4 8.9 2.8 9.5 18.1 -16.0 4.9 7.3
Vanguard Target Retirement Income (VTINX) Rank 59 28 9 11 14 6 7 10 38 67 8 53 82 10 1 60
Vanguard Target Retirement Income (VTINX)
Vanguard Target Income Composite Index
0
25
50
75
100Return Percentile Rank9/06 9/07 9/08 9/09 9/10 9/11 9/12 9/13 9/14 9/15 6/16
4.8
5.0
5.2
5.4
Return (%)3.7 3.8
Risk (Standard Deviation %)
Vanguard Target Income Composite Index
Vanguard Target Retirement Income (VTINX)
Return
Standard
Deviation
Excess
Return Alpha Beta
Sharpe
Ratio
Tracking
Error
Information
Ratio
Downside
Risk Consistency
Inception
Date
Vanguard Target Retirement Income (VTINX)5.0 3.8 4.9 -0.1 1.0 1.3 0.2 -0.9 1.8 35.0 12y 8m
Vanguard Target Income Composite Index 5.1 3.8 5.0 0.0 1.0 1.3 0.0 N/A 1.7 0.0 12y 8m
90 Day U.S. Treasury Bill 0.1 0.0 0.0 0.1 0.0 N/A 3.8 -1.3 0.0 25.0 12y 8m
Manager Evaluation
Vanguard Target Retirement Income (VTINX) vs. Vanguard Target Income Composite Index
As of June 30, 2016
44
Historical Performance
Three Year Rolling Percentile Ranking Risk and Return (Jul-2011 - Jun-2016)
Historical Statistics (Jul-2011 - Jun-2016)
Quarter
Year
To
Date
1
Year
3
Years
5
Years
10
Years 2015 2014 2013 2012 2011 2010 2009 2008 2007 2006
Vanguard Target Retirement 2010 (VTENX)1.9 4.2 2.9 5.5 5.6 5.4 -0.2 5.9 9.1 10.1 3.4 11.4 19.3 -20.7 7.7 N/A
Vanguard Target 2010 Composite Index 1.9 4.2 3.1 5.7 5.7 5.5 0.0 6.1 9.3 10.2 3.3 11.5 19.3 -20.9 7.7 N/A
IM Mixed-Asset Target 2010 2.0 3.7 1.3 4.7 4.8 4.0 -1.2 4.1 8.7 9.8 0.8 10.8 23.3 -26.0 5.9 9.4
Vanguard Target Retirement 2010 (VTENX) Rank 56 35 19 16 19 3 8 7 50 46 6 35 81 21 8 N/A
Vanguard Target Retirement 2010 (VTENX)
Vanguard Target 2010 Composite Index
0
25
50
75
100Return Percentile Rank9/06 9/07 9/08 9/09 9/10 9/11 9/12 9/13 9/14 9/15 6/16
5.4
5.6
5.8
6.0
Return (%)5.3 5.4 5.5
Risk (Standard Deviation %)
Vanguard Target 2010 Composite Index
Vanguard Target Retirement 2010 (VTENX)
Return
Standard
Deviation
Excess
Return Alpha Beta
Sharpe
Ratio
Tracking
Error
Information
Ratio
Downside
Risk Consistency
Inception
Date
Vanguard Target Retirement 2010 (VTENX)5.6 5.4 5.5 -0.1 1.0 1.0 0.1 -0.9 3.0 30.0 10y
Vanguard Target 2010 Composite Index 5.7 5.4 5.6 0.0 1.0 1.0 0.0 N/A 3.0 0.0 10y
90 Day U.S. Treasury Bill 0.1 0.0 0.0 0.1 0.0 N/A 5.4 -1.0 0.0 30.0 10y
Manager Evaluation
Vanguard Target Retirement 2010 (VTENX) vs. Vanguard Target 2010 Composite Index
As of June 30, 2016
45
Historical Performance
Three Year Rolling Percentile Ranking Risk and Return (Jul-2011 - Jun-2016)
Historical Statistics (Jul-2011 - Jun-2016)
Quarter
Year
To
Date
1
Year
3
Years
5
Years
10
Years 2015 2014 2013 2012 2011 2010 2009 2008 2007 2006
Vanguard Target Retirement 2015 (VTXVX)1.9 3.9 2.0 6.2 6.2 5.6 -0.5 6.6 13.0 11.4 1.7 12.5 21.3 -24.1 7.5 11.4
Vanguard Target 2015 Composite Index 1.9 3.9 2.1 6.4 6.3 5.6 -0.2 6.8 13.3 11.5 1.6 12.5 21.2 -24.4 7.6 11.5
IM Mixed-Asset Target 2015 2.1 3.7 1.4 4.8 5.0 4.8 -1.3 4.4 10.3 10.8 -0.1 11.5 25.3 -29.3 6.1 10.3
Vanguard Target Retirement 2015 (VTXVX) Rank 71 43 41 7 11 9 13 4 23 36 24 33 76 18 22 32
Vanguard Target Retirement 2015 (VTXVX)
Vanguard Target 2015 Composite Index
0
25
50
75
100Return Percentile Rank9/06 9/07 9/08 9/09 9/10 9/11 9/12 9/13 9/14 9/15 6/16
5.8
6.0
6.2
6.4
6.6
Return (%)6.8 6.9 7.0
Risk (Standard Deviation %)
Vanguard Target 2015 Composite Index
Vanguard Target Retirement 2015 (VTXVX)
Return
Standard
Deviation
Excess
Return Alpha Beta
Sharpe
Ratio
Tracking
Error
Information
Ratio
Downside
Risk Consistency
Inception
Date
Vanguard Target Retirement 2015 (VTXVX)6.2 6.9 6.2 -0.1 1.0 0.9 0.2 -0.9 4.2 25.0 12y 8m
Vanguard Target 2015 Composite Index 6.3 6.9 6.4 0.0 1.0 0.9 0.0 N/A 4.2 0.0 12y 8m
90 Day U.S. Treasury Bill 0.1 0.0 0.0 0.1 0.0 N/A 6.9 -0.9 0.0 30.0 12y 8m
Manager Evaluation
Vanguard Target Retirement 2015 (VTXVX) vs. Vanguard Target 2015 Composite Index
As of June 30, 2016
46
Historical Performance
Three Year Rolling Percentile Ranking Risk and Return (Jul-2011 - Jun-2016)
Historical Statistics (Jul-2011 - Jun-2016)
Quarter
Year
To
Date
1
Year
3
Years
5
Years
10
Years 2015 2014 2013 2012 2011 2010 2009 2008 2007 2006
Vanguard Target Retirement 2020 (VTWNX)2.0 3.8 1.4 6.8 6.7 5.7 -0.7 7.1 15.8 12.3 0.6 13.1 23.1 -27.0 7.5 N/A
Vanguard Target 2020 Composite Index 1.9 3.7 1.6 7.0 6.9 5.8 -0.4 7.4 16.2 12.5 1.0 13.3 23.3 -27.4 7.6 N/A
IM Mixed-Asset Target 2020 2.0 3.5 0.9 5.0 5.1 4.4 -1.4 4.7 11.8 11.5 -0.4 12.3 26.0 -31.8 6.3 12.0
Vanguard Target Retirement 2020 (VTWNX) Rank 54 43 39 4 5 4 24 1 19 37 33 37 71 22 34 N/A
Vanguard Target Retirement 2020 (VTWNX)
Vanguard Target 2020 Composite Index
0
25
50
75
100Return Percentile Rank9/06 9/07 9/08 9/09 9/10 9/11 9/12 9/13 9/14 9/15 6/16
6.3
6.6
6.9
7.2
7.5
Return (%)8.0 8.1
Risk (Standard Deviation %)
Vanguard Target 2020 Composite Index
Vanguard Target Retirement 2020 (VTWNX)
Return
Standard
Deviation
Excess
Return Alpha Beta
Sharpe
Ratio
Tracking
Error
Information
Ratio
Downside
Risk Consistency
Inception
Date
Vanguard Target Retirement 2020 (VTWNX)6.7 8.1 6.8 -0.2 1.0 0.8 0.2 -1.3 5.1 25.0 10y
Vanguard Target 2020 Composite Index 6.9 8.1 7.0 0.0 1.0 0.9 0.0 N/A 5.0 0.0 10y
90 Day U.S. Treasury Bill 0.1 0.0 0.0 0.1 0.0 N/A 8.1 -0.9 0.0 30.0 10y
Manager Evaluation
Vanguard Target Retirement 2020 (VTWNX) vs. Vanguard Target 2020 Composite Index
As of June 30, 2016
47
Historical Performance
Three Year Rolling Percentile Ranking Risk and Return (Jul-2011 - Jun-2016)
Historical Statistics (Jul-2011 - Jun-2016)
Quarter
Year
To
Date
1
Year
3
Years
5
Years
10
Years 2015 2014 2013 2012 2011 2010 2009 2008 2007 2006
Vanguard Target Retirement 2025 (VTTVX)2.0 3.5 0.8 7.0 6.9 5.7 -0.8 7.2 18.1 13.3 -0.4 13.8 24.8 -30.1 7.6 13.2
Vanguard Target 2025 Composite Index 1.9 3.4 0.9 7.2 7.2 5.8 -0.6 7.4 18.5 13.4 0.1 13.9 25.2 -30.4 7.6 13.4
IM Mixed-Asset Target 2025 2.0 3.3 0.4 5.7 5.7 4.9 -1.4 5.2 15.9 13.0 -2.0 13.4 28.9 -35.0 7.2 13.1
Vanguard Target Retirement 2025 (VTTVX) Rank 55 47 43 7 11 12 24 4 24 45 18 39 80 16 45 49
Vanguard Target Retirement 2025 (VTTVX)
Vanguard Target 2025 Composite Index
0
25
50
75
100Return Percentile Rank9/06 9/07 9/08 9/09 9/10 9/11 9/12 9/13 9/14 9/15 6/16
6.3
6.6
6.9
7.2
7.5
7.8
Return (%)9.0 9.1 9.2
Risk (Standard Deviation %)
Vanguard Target 2025 Composite Index
Vanguard Target Retirement 2025 (VTTVX)
Return
Standard
Deviation
Excess
Return Alpha Beta
Sharpe
Ratio
Tracking
Error
Information
Ratio
Downside
Risk Consistency
Inception
Date
Vanguard Target Retirement 2025 (VTTVX)6.9 9.1 7.1 -0.3 1.0 0.8 0.2 -1.0 5.8 35.0 12y 8m
Vanguard Target 2025 Composite Index 7.2 9.1 7.4 0.0 1.0 0.8 0.0 N/A 5.8 0.0 12y 8m
90 Day U.S. Treasury Bill 0.1 0.0 0.0 0.1 0.0 N/A 9.1 -0.8 0.0 25.0 12y 8m
Manager Evaluation
Vanguard Target Retirement 2025 (VTTVX) vs. Vanguard Target 2025 Composite Index
As of June 30, 2016
48
Historical Performance
Three Year Rolling Percentile Ranking Risk and Return (Jul-2011 - Jun-2016)
Historical Statistics (Jul-2011 - Jun-2016)
Quarter
Year
To
Date
1
Year
3
Years
5
Years
10
Years 2015 2014 2013 2012 2011 2010 2009 2008 2007 2006
Vanguard Target Retirement 2030 (VTHRX)1.9 3.2 0.1 7.3 7.2 5.7 -1.0 7.2 20.5 14.2 -1.3 14.4 26.7 -32.9 7.5 N/A
Vanguard Target 2030 Composite Index 1.8 3.1 0.2 7.5 7.5 5.8 -0.8 7.5 20.9 14.3 -0.9 14.6 27.0 -33.3 7.6 N/A
IM Mixed-Asset Target 2030 1.9 3.2 -0.3 6.0 6.0 4.3 -1.6 5.2 17.9 13.7 -2.6 13.6 28.8 -36.4 6.5 13.6
Vanguard Target Retirement 2030 (VTHRX) Rank 52 47 42 8 9 12 30 6 28 40 23 34 73 17 40 N/A
Vanguard Target Retirement 2030 (VTHRX)
Vanguard Target 2030 Composite Index
0
25
50
75
100Return Percentile Rank9/06 9/07 9/08 9/09 9/10 9/11 9/12 9/13 9/14 9/15 6/16
7.2
7.5
7.8
Return (%)10.1 10.2
Risk (Standard Deviation %)
Vanguard Target 2030 Composite Index
Vanguard Target Retirement 2030 (VTHRX)
Return
Standard
Deviation
Excess
Return Alpha Beta
Sharpe
Ratio
Tracking
Error
Information
Ratio
Downside
Risk Consistency
Inception
Date
Vanguard Target Retirement 2030 (VTHRX)7.2 10.2 7.5 -0.3 1.0 0.7 0.3 -0.9 6.6 35.0 10y
Vanguard Target 2030 Composite Index 7.5 10.1 7.7 0.0 1.0 0.8 0.0 N/A 6.5 0.0 10y
90 Day U.S. Treasury Bill 0.1 0.0 0.0 0.1 0.0 N/A 10.1 -0.8 0.0 25.0 10y
Manager Evaluation
Vanguard Target Retirement 2030 (VTHRX) vs. Vanguard Target 2030 Composite Index
As of June 30, 2016
49
Historical Performance
Three Year Rolling Percentile Ranking Risk and Return (Jul-2011 - Jun-2016)
Historical Statistics (Jul-2011 - Jun-2016)
Quarter
Year
To
Date
1
Year
3
Years
5
Years
10
Years 2015 2014 2013 2012 2011 2010 2009 2008 2007 2006
Vanguard Target Retirement 2035 (VTTHX)1.8 2.9 -0.7 7.5 7.4 5.7 -1.3 7.2 22.8 15.2 -2.2 15.1 28.2 -34.7 7.5 15.2
Vanguard Target 2035 Composite Index 1.7 2.8 -0.6 7.7 7.7 5.9 -1.0 7.6 23.3 15.2 -1.9 15.2 28.7 -35.1 7.6 15.4
IM Mixed-Asset Target 2035 1.8 2.6 -1.4 6.3 6.3 4.7 -1.7 5.4 20.8 14.7 -3.3 14.6 31.0 -36.1 7.5 14.0
Vanguard Target Retirement 2035 (VTTHX) Rank 51 37 37 7 13 17 38 9 25 42 21 29 66 13 51 28
Vanguard Target Retirement 2035 (VTTHX)
Vanguard Target 2035 Composite Index
0
25
50
75
100Return Percentile Rank9/06 9/07 9/08 9/09 9/10 9/11 9/12 9/13 9/14 9/15 6/16
6.9
7.2
7.5
7.8
8.1
Return (%)11.1 11.2 11.3
Risk (Standard Deviation %)
Vanguard Target 2035 Composite Index
Vanguard Target Retirement 2035 (VTTHX)
Return
Standard
Deviation
Excess
Return Alpha Beta
Sharpe
Ratio
Tracking
Error
Information
Ratio
Downside
Risk Consistency
Inception
Date
Vanguard Target Retirement 2035 (VTTHX)7.4 11.2 7.8 -0.3 1.0 0.7 0.3 -0.8 7.5 35.0 12y 8m
Vanguard Target 2035 Composite Index 7.7 11.2 8.1 0.0 1.0 0.7 0.0 N/A 7.3 0.0 12y 8m
90 Day U.S. Treasury Bill 0.1 0.0 0.0 0.1 0.0 N/A 11.2 -0.7 0.0 20.0 12y 8m
Manager Evaluation
Vanguard Target Retirement 2035 (VTTHX) vs. Vanguard Target 2035 Composite Index
As of June 30, 2016
50
Historical Performance
Three Year Rolling Percentile Ranking Risk and Return (Jul-2011 - Jun-2016)
Historical Statistics (Jul-2011 - Jun-2016)
Quarter
Year
To
Date
1
Year
3
Years
5
Years
10
Years 2015 2014 2013 2012 2011 2010 2009 2008 2007 2006
Vanguard Target Retirement 2040 (VFORX)1.8 2.7 -1.4 7.5 7.6 5.8 -1.6 7.1 24.4 15.6 -2.5 15.2 28.3 -34.5 7.5 N/A
Vanguard Target 2040 Composite Index 1.6 2.5 -1.3 7.8 7.9 6.0 -1.2 7.6 24.8 15.6 -2.1 15.3 28.7 -35.1 7.6 N/A
IM Mixed-Asset Target 2040 1.8 2.3 -2.1 6.4 6.4 4.5 -1.7 5.4 21.7 14.9 -3.9 14.6 30.7 -38.1 6.5 14.9
Vanguard Target Retirement 2040 (VFORX) Rank 47 40 42 7 12 11 44 12 17 33 21 37 76 4 33 N/A
Vanguard Target Retirement 2040 (VFORX)
Vanguard Target 2040 Composite Index
0
25
50
75
100Return Percentile Rank9/06 9/07 9/08 9/09 9/10 9/11 9/12 9/13 9/14 9/15 6/16
7.2
7.5
7.8
8.1
8.4
Return (%)11.6 11.7 11.8
Risk (Standard Deviation %)
Vanguard Target 2040 Composite Index
Vanguard Target Retirement 2040 (VFORX)
Return
Standard
Deviation
Excess
Return Alpha Beta
Sharpe
Ratio
Tracking
Error
Information
Ratio
Downside
Risk Consistency
Inception
Date
Vanguard Target Retirement 2040 (VFORX)7.6 11.7 8.0 -0.3 1.0 0.7 0.3 -0.9 7.8 35.0 10y
Vanguard Target 2040 Composite Index 7.9 11.7 8.3 0.0 1.0 0.7 0.0 N/A 7.6 0.0 10y
90 Day U.S. Treasury Bill 0.1 0.0 0.0 0.1 0.0 N/A 11.7 -0.7 0.0 20.0 10y
Manager Evaluation
Vanguard Target Retirement 2040 (VFORX) vs. Vanguard Target 2040 Composite Index
As of June 30, 2016
51
Historical Performance
Three Year Rolling Percentile Ranking Risk and Return (Jul-2011 - Jun-2016)
Historical Statistics (Jul-2011 - Jun-2016)
Quarter
Year
To
Date
1
Year
3
Years
5
Years
10
Years 2015 2014 2013 2012 2011 2010 2009 2008 2007 2006
Vanguard Target Retirement 2045 (VTIVX)1.8 2.6 -1.5 7.5 7.6 5.8 -1.6 7.2 24.4 15.6 -2.5 15.2 28.2 -34.6 7.5 16.0
Vanguard Target 2045 Composite Index 1.6 2.4 -1.3 7.8 7.8 6.0 -1.3 7.6 24.8 15.6 -2.1 15.3 28.7 -35.1 7.6 16.2
IM Mixed-Asset Target 2045 1.7 2.1 -2.5 6.6 6.6 4.6 -1.8 5.5 23.1 15.5 -4.0 15.0 31.1 -38.5 6.8 16.0
Vanguard Target Retirement 2045 (VTIVX) Rank 47 36 34 10 15 19 44 13 27 44 15 43 87 11 49 56
Vanguard Target Retirement 2045 (VTIVX)
Vanguard Target 2045 Composite Index
0
25
50
75
100Return Percentile Rank9/06 9/07 9/08 9/09 9/10 9/11 9/12 9/13 9/14 9/15 6/16
7.2
7.5
7.8
8.1
8.4
Return (%)11.6 11.7 11.8
Risk (Standard Deviation %)
Vanguard Target 2045 Composite Index
Vanguard Target Retirement 2045 (VTIVX)
Return
Standard
Deviation
Excess
Return Alpha Beta
Sharpe
Ratio
Tracking
Error
Information
Ratio
Downside
Risk Consistency
Inception
Date
Vanguard Target Retirement 2045 (VTIVX)7.6 11.7 8.0 -0.3 1.0 0.7 0.3 -0.9 7.8 35.0 12y 8m
Vanguard Target 2045 Composite Index 7.8 11.7 8.3 0.0 1.0 0.7 0.0 N/A 7.7 0.0 12y 8m
90 Day U.S. Treasury Bill 0.1 0.0 0.0 0.1 0.0 N/A 11.7 -0.7 0.0 20.0 12y 8m
Manager Evaluation
Vanguard Target Retirement 2045 (VTIVX) vs. Vanguard Target 2045 Composite Index
As of June 30, 2016
52
Historical Performance
Three Year Rolling Percentile Ranking Risk and Return (Jul-2011 - Jun-2016)
Historical Statistics (Jul-2011 - Jun-2016)
Quarter
Year
To
Date
1
Year
3
Years
5
Years
10
Years 2015 2014 2013 2012 2011 2010 2009 2008 2007 2006
Vanguard Target Retirement 2050 (VFIFX)1.8 2.6 -1.5 7.5 7.6 5.8 -1.6 7.2 24.3 15.6 -2.5 15.2 28.3 -34.6 7.5 N/A
Vanguard Target 2050 Composite Index 1.6 2.4 -1.3 7.8 7.8 6.0 -1.3 7.6 24.8 15.6 -2.1 15.3 28.7 -35.1 7.6 N/A
IM Mixed-Asset Target 2050 1.7 2.1 -2.6 6.6 6.6 4.4 -1.8 5.6 23.1 15.5 -4.4 14.8 31.4 -39.1 6.6 15.5
Vanguard Target Retirement 2050 (VFIFX) Rank 44 38 35 16 14 1 46 17 31 47 14 37 92 6 25 N/A
Vanguard Target Retirement 2050 (VFIFX)
Vanguard Target 2050 Composite Index
0
25
50
75
100Return Percentile Rank9/06 9/07 9/08 9/09 9/10 9/11 9/12 9/13 9/14 9/15 6/16
7.2
7.5
7.8
8.1
8.4
Return (%)11.6 11.7 11.8
Risk (Standard Deviation %)
Vanguard Target 2050 Composite Index
Vanguard Target Retirement 2050 (VFIFX)
Return
Standard
Deviation
Excess
Return Alpha Beta
Sharpe
Ratio
Tracking
Error
Information
Ratio
Downside
Risk Consistency
Inception
Date
Vanguard Target Retirement 2050 (VFIFX)7.6 11.7 8.0 -0.3 1.0 0.7 0.3 -0.9 7.8 35.0 10y
Vanguard Target 2050 Composite Index 7.8 11.7 8.3 0.0 1.0 0.7 0.0 N/A 7.7 0.0 10y
90 Day U.S. Treasury Bill 0.1 0.0 0.0 0.1 0.0 N/A 11.7 -0.7 0.0 20.0 10y
Manager Evaluation
Vanguard Target Retirement 2050 (VFIFX) vs. Vanguard Target 2050 Composite Index
As of June 30, 2016
53
Historical Performance
Three Year Rolling Percentile Ranking Risk and Return (Jul-2011 - Jun-2016)
Historical Statistics (Jul-2011 - Jun-2016)
Quarter
Year
To
Date
1
Year
3
Years
5
Years
10
Years 2015 2014 2013 2012 2011 2010 2009 2008 2007 2006
Vanguard Target Retirement 2055 (VFFVX)1.8 2.6 -1.6 7.5 7.6 N/A -1.7 7.2 24.3 15.6 -2.3 N/A N/A N/A N/A N/A
Vanguard Target 2055 Composite Index 1.6 2.4 -1.3 7.8 7.8 N/A -1.3 7.6 24.8 15.6 -2.1 N/A N/A N/A N/A N/A
IM Mixed-Asset Target 2055+1.7 2.0 -2.6 6.7 6.7 N/A -1.6 5.4 23.3 15.6 -4.7 14.8 30.8 -40.7 N/A N/A
Vanguard Target Retirement 2055 (VFFVX) Rank 42 34 34 17 23 N/A 55 17 38 50 1 N/A N/A N/A N/A N/A
Vanguard Target Retirement 2055 (VFFVX)
Vanguard Target 2055 Composite Index
0
25
50
75
100Return Percentile Rank9/06 9/07 9/08 9/09 9/10 9/11 9/12 9/13 9/14 9/15 6/16
7.2
7.5
7.8
8.1
8.4
Return (%)11.6 11.7
Risk (Standard Deviation %)
Vanguard Target 2055 Composite Index
Vanguard Target Retirement 2055 (VFFVX)
Return
Standard
Deviation
Excess
Return Alpha Beta
Sharpe
Ratio
Tracking
Error
Information
Ratio
Downside
Risk Consistency
Inception
Date
Vanguard Target Retirement 2055 (VFFVX)7.6 11.7 8.0 -0.3 1.0 0.7 0.3 -0.9 7.7 30.0 5y 9m
Vanguard Target 2055 Composite Index 7.8 11.7 8.3 0.0 1.0 0.7 0.0 N/A 7.7 0.0 5y 9m
90 Day U.S. Treasury Bill 0.1 0.0 0.0 0.1 0.0 N/A 11.7 -0.7 0.0 20.0 5y 9m
Manager Evaluation
Vanguard Target Retirement 2055 (VFFVX) vs. Vanguard Target 2055 Composite Index
As of June 30, 2016
54
Historical Performance
Three Year Rolling Percentile Ranking Risk and Return (Apr-2012 - Jun-2016)
Historical Statistics (Feb-2012 - Jun-2016)
Quarter
Year
To
Date
1
Year
3
Years
5
Years
10
Years 2015 2014 2013 2012 2011 2010 2009 2008 2007 2006
Vanguard Target Retirement 2060 (VTTSX)1.8 2.6 -1.6 7.5 N/A N/A -1.7 7.2 24.3 N/A N/A N/A N/A N/A N/A N/A
Vanguard Target 2060 Composite Index 1.6 2.4 -1.3 7.8 N/A N/A -1.3 7.6 24.8 15.6 N/A N/A N/A N/A N/A N/A
IM Mixed-Asset Target 2055+1.7 2.0 -2.6 6.7 6.7 N/A -1.6 5.4 23.3 15.6 -4.7 14.8 30.8 -40.7 N/A N/A
Vanguard Target Retirement 2060 (VTTSX) Rank 42 35 33 17 N/A N/A 52 17 37 N/A N/A N/A N/A N/A N/A N/A
Vanguard Target Retirement 2060 (VTTSX)
Vanguard Target 2060 Composite Index
0
25
50
75
100Return Percentile Rank9/06 9/07 9/08 9/09 9/10 9/11 9/12 9/13 9/14 9/15 6/16
7.8
8.0
8.2
8.4
8.6
8.8
Return (%)7.8 7.9 8.0 8.1
Risk (Standard Deviation %)
Vanguard Target 2060 Composite Index
Vanguard Target Retirement 2060 (VTTSX)
Return
Standard
Deviation
Excess
Return Alpha Beta
Sharpe
Ratio
Tracking
Error
Information
Ratio
Downside
Risk Consistency
Inception
Date
Vanguard Target Retirement 2060 (VTTSX)N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A 4y 5m
Vanguard Target 2060 Composite Index 10.5 8.9 10.5 0.0 1.0 1.2 0.0 N/A 4.2 0.0 4y 5m
90 Day U.S. Treasury Bill 0.1 0.0 0.0 0.1 0.0 N/A 8.9 -1.2 0.0 16.7 4y 5m
Manager Evaluation
Vanguard Target Retirement 2060 (VTTSX) vs. Vanguard Target 2060 Composite Index
As of June 30, 2016
55
Manager Evaluation
Ta rget-Date Funds Asset Allocation
As of June 30, 2016
U.S.Equity 18.3%30.5%34.8%39.6%44.1%48.6%53.0%54.2%54.3%54.2%
Va nguard Total Stock M arke t Index Fu nd 18.3%30.5%34.8%39.6%44.1%48.6%53.0%54.2%54.3%54.2%
Non-U.S . Equ ity 12.0%18.5%23.0%26.2%29.2%32.2%35.2%35.8%35.8%35.9%
Va nguard Total In ternational Stock In dex F und 12.0%18.5%23.0%26.2%29.2%32.2%35.2%35.8%35.8%35.9%
Fi xe d In come 69.7%51.0%42.2%34.2%26.7%19.2%11.8%10.0%9.9%9.9%
Va nguard Total Bo nd Marke t II In dex F und 37.0%28.2%28.3%23.8%18.7%13.4%8.2%7.0%6.9%6.9%
Va nguard Total In ternational Bo nd Index Fund 16.0%13.6%12.3%10.4%8.0%5.8%3.6%3.0%3.0%3.0%
Va nguard In fla tion-Pro tected Securit ie s Fund 16.7%9.2%1.6%0.0%0.0%0.0%0.0%0.0%0.0%0.0%
TO TA L 100.0%100.0%100.0%100.0%100.0%100.0%100.0%100.0%100.0%100.0%
Tar get
Date
2020
Tar get
Date
2025
Tar get
Date
2030
Tar get
Date
2035
Tar get
Date
2040
Tar get
Date
2055VanguardComponent Funds
Re ti rement
In come
Tar get
Date
2045
Tar get
Date
2050
Tar get
Date
2015
0%
10%
20%
30%
40%
50%
60%
70%
80%
U.S.Equity Non-U.S.Equity Fi xed In come
Re tirem en t Incom e
Target Da te 2015
Target Da te 2020
Target Da te 2025
Target Da te 2030
Target Da te 2035
Target Da te 2040
Target Da te 2045
Target Da te 2050
Target Da te 2055
56