Updated investment objectives and policies for Vanguard LifeStrategy Funds

1. 40% by value of shares; and
2. 60% by value of bonds and other similar fixed income investments.

The Fund will seek to achieve its investment objective by investing more than 90% of its assets in passive funds that track an index, which are managed or operated by the ACD or its associates (“Associated Schemes”).

It is intended that the Fund’s exposures (through its investment in Associated Schemes) to: (1) shares will be to shares of UK companies and non-UK companies, including those in emerging markets (i.e. countries that are progressing toward becoming advanced, usually shown by some development in financial markets, the existence of some form of stock exchange and a regulatory body); and (2) to bonds and other similar fixed income investments will be to Sterling-denominated investments (including gilts, index-linked gilts and UK investment-grade bonds) and to non-Sterling-denominated investments. In the case of both the shares and bonds portions of the portfolio, the UK will generally form one of the largest single country exposures with approximately 35% of the bond portion of the portfolio and 25% of the share portion of the portfolio. Whilst the Fund will seek broadly to maintain the relative sizes of its bonds and shares exposures at the stated levels, the identity and proportion of the particular indices, securities and/or markets, etc. to which the Fund is exposed will be at the discretion of the Investment Adviser taking into account aspects of those funds considered to be relevant to maintain exposure to a diversified portfolio. The stated levels of exposure may change from time to time in response to changes in the market size or market values of the indices tracked by the Associated Schemes in which the Fund invests.

The Fund may also invest directly in transferable securities (such as shares, bonds and other similar fixed income investments) (which will generally be components of the indices tracked by the Associated Schemes in which the Fund invests), money market instruments and deposits. Money market instruments are investments usually issued by banks or governments that are a short term loan to the issuer by the buyer. The buyer receives interest and the return of the original amount at the end of a certain period. A deposit is a fixed term investment that gathers interest over the period of its term.

The Fund may also use derivatives in order to reduce risk or cost and/or generate extra income or growth (often referred to as ‘efficient portfolio management’). Generally speaking, a derivative is a financial contract whose value is based on the value of a financial asset (such as a share, bond, or currency) or a market index. The Fund will not use derivatives for speculative purposes, and only a limited percentage of its assets is committed to them. The Fund may also use certain techniques and instruments in accordance with the limits and conditions specified under “Portfolio Investment Techniques” in Appendix 4.

Further details of the investment powers and restrictions for the Fund are set out in Appendix 3 headed “Investment Powers and Restrictions”.

Temporary Investment Measures

The Fund may temporarily depart from this investment policy in response to the Investment Adviser’s perception of extraordinary market, political or similar conditions. During these periods and for as long as the Investment Adviser deems it necessary, the Fund may increase its holdings of cash and near cash. In doing so, the Fund may succeed in avoiding losses, but may otherwise fail to achieve its investment objective.

The Fund is actively managed and seeks to achieve its investment objective by investing at least 90% of its assets by value in a diversified portfolio of passive funds that seek to track the performance of an index, and which are managed or operated by the ACD or other companies in the Vanguard Group of Companies (“Associated Schemes”).

The pre-defined asset allocation for the Fund means that it is intended that the Fund will invest:

1. approximately 40% of its assets by value in Associated Schemes which provide exposure to shares of companies worldwide. Approximately 25% of such shares (by value) will be in UK listed companies; and
2. approximately 60% of its assets by value in Associated Schemes which provide exposure to government and corporate bonds and other similar fixed income investments worldwide. Approximately 35% of such investments (by value) will be in Sterling-denominated investments (including (UK government bonds (gilts), government related bonds, index-linked gilts and investment-grade bonds), which may include Sterling-denominated bonds issued by companies outside the UK.

This Fund is part of a range of funds. Within this range, a fund which invests more in Associated Schemes that provide exposure to shares of companies will typically be riskier than a fund which invests more in Associated Schemes that provide exposure to government and corporate bonds and other similar fixed income investments.

In addition to the pre-defined asset allocation, the Investment Adviser will aim to maintain a strategic asset allocation that is designed using research conducted by Vanguard. A disciplined investment process is used to design, construct and manage the Fund. The strategic asset allocation is subject to change based on the market size or market values of the indices tracked by the Associated Schemes in which the Fund invests. The Investment Adviser will rebalance the strategy regularly back to these strategic asset allocations and has discretion over when to do so. The Fund does not aim to outperform this strategic asset allocation.

Whilst the Fund will broadly seek to maintain the relative sizes of its bond and shares exposures at the stated levels, the identity and proportion of the particular Associated Schemes, securities and/or markets to which the Fund is exposed will be at the discretion of the Investment Adviser, taking into account aspects of the Associated Schemes considered to be relevant to maintain exposure to a diversified portfolio.

The Fund may also invest up to 10% of its assets directly in transferable securities (such as shares, bonds and other similar fixed income investments, which will generally be components of the indices tracked by the Associated Schemes), money market instruments and deposits.

The Fund may also use derivatives in order to reduce risk or cost and/or generate extra income or growth (often referred to as ‘efficient portfolio management’). See “Portfolio Investment Techniques” in Appendix 4 for associated risks related to derivatives.

Further details of the investment powers and restrictions for the Fund are set out in Appendix 3 headed “Investment Powers and Restrictions”.

Temporary Investment Measures

The Fund may temporarily depart from this investment policy in response to the Investment Adviser’s perception of extraordinary market, political or similar conditions. During these periods and for as long as the Investment Adviser deems it necessary, the Fund may increase its holdings of cash and near cash. In doing so, the Fund may succeed in avoiding losses, but may otherwise fail to achieve its investment objective.

1. 60% by value of shares; and
2. 40% by value of bonds and other similar fixed income investments.

The Fund will seek to achieve its investment objective by investing more than 90% of its assets in passive funds that track an index, which are managed or operated by the ACD or its associates (“Associated Schemes”).

It is intended that the Fund’s exposures (through its investment in Associated Schemes) to: (1) shares will be to shares of UK companies and non-UK companies, including those in emerging markets (i.e. countries that are progressing toward becoming advanced, usually shown by some development in financial markets, the existence of some form of stock exchange and a regulatory body); and (2) to bonds and other similar fixed income investments will be to Sterling-denominated investments (including gilts, index-linked gilts and UK investment-grade bonds) and to non-Sterling-denominated investments. In the case of both the shares and bonds portions of the portfolio, the UK will generally form one of the largest single country exposures with approximately 35% of the bond portion of the portfolio and 25% of the share portion of the portfolio. Whilst the Fund will seek broadly to maintain the relative sizes of its bonds and shares exposures at the stated levels, the identity and proportion of the particular indices, securities and/or markets, etc. to which the Fund is exposed will be at the discretion of the Investment Adviser taking into account aspects of those funds considered to be relevant to maintain exposure to a diversified l portfolio. The stated levels of exposure may change from time to time in response to changes in the market size or market values of the indices tracked by the Associated Schemes in which the Fund invests.

The Fund may also invest directly in transferable securities (such as shares, bonds and other similar fixed income investments) (which will generally be components of the indices tracked by the Associated Schemes in which the Fund invests), money market instruments and deposits. Money market instruments are investments usually issued by banks or governments that are a short term loan to the issuer by the buyer. The buyer receives interest and the return of the original amount at the end of a certain period. A deposit is a fixed term investment that gathers interest over the period of its term.

The Fund may also use derivatives in order to reduce risk or cost and/or generate extra income or growth (often referred to as ‘efficient portfolio management’). Generally speaking, a derivative is a financial contract whose value is based on the value of a financial asset (such as a share, bond, or currency) or a market index. The Fund will not use derivatives for speculative purposes, and only a limited percentage of its assets is committed to them. The Fund may also use certain techniques and instruments in accordance with the limits and conditions specified under “Portfolio Investment Techniques” in Appendix 4.

Further details of the investment powers and restrictions for the Fund are set out in Appendix 3 headed “Investment Powers and Restrictions”.

Temporary Investment Measures

The Fund may temporarily depart from this investment policy in response to the Investment Adviser’s perception of extraordinary market, political or similar conditions. During these periods and for as long as the Investment Adviser deems it necessary, the Fund may increase its holdings of cash and near cash. In doing so, the Fund may succeed in avoiding losses, but may otherwise fail to achieve its investment objective.

The Fund is actively managed and seeks to achieve its investment objective by investing at least 90% of its assets by value in a diversified portfolio of passive funds that seek to track the performance of an index, and which are managed or operated by the ACD or other companies in the Vanguard Group of Companies (“Associated Schemes”).

The pre-defined asset allocation for the Fund means that it is intended that the Fund will invest:

1. approximately 60% of its assets by value in Associated Schemes which provide exposure to shares of companies worldwide. Approximately 25% of such investments (by value) will be in UK listed companies; and
2. approximately 40% of its assets by value in Associated Schemes which provide exposure to government and corporate bonds and other similar fixed income investments worldwide. Approximately 35% of such investments (by value) will be in Sterling-denominated investments (including (UK government bonds (gilts), government related bonds, index-linked gilts and investment-grade bonds), which may include Sterling-denominated bonds issued by companies outside the UK.

This Fund is part of a range of funds. Within this range, a fund which invests more in Associated Schemes that provide exposure to shares of companies will typically be riskier than a fund which invests more in Associated Schemes that provide exposure to government and corporate bonds and other similar fixed income investments.

In addition to the pre-defined asset allocation, the Investment Adviser will aim to maintain a strategic asset allocation that is designed using research conducted by Vanguard. A disciplined investment process is used to design, construct and manage the Fund. The strategic asset allocation is subject to change based on the market size or market values of the indices tracked by the Associated Schemes in which the Fund invests. The Investment Adviser will rebalance the strategy regularly back to these strategic asset allocations and has discretion over when to do so. The Fund does not aim to outperform this strategic asset allocation.

Whilst the Fund will broadly seek to maintain the relative sizes of its bond and shares exposures at the stated levels, the identity and proportion of the particular Associated Schemes, securities and/or markets to which the Fund is exposed will be at the discretion of the Investment Adviser, taking into account aspects of the Associated Schemes considered to be relevant to maintain exposure to a diversified portfolio.

The Fund may also invest up to 10% of its assets directly in transferable securities (such as shares, bonds and other similar fixed income investments, which will generally be components of the indices tracked by the Associated Schemes), money market instruments and deposits.

The Fund may also use derivatives in order to reduce risk or cost and/or generate extra income or growth (often referred to as ‘efficient portfolio management’). See “Portfolio Investment Techniques” in Appendix 4 for associated risks related to derivatives.

Further details of the investment powers and restrictions for the Fund are set out in Appendix 3 headed “Investment Powers and Restrictions”.

Temporary Investment Measures

The Fund may temporarily depart from this investment policy in response to the Investment Adviser’s perception of extraordinary market, political or similar conditions. During these periods and for as long as the Investment Adviser deems it necessary, the Fund may increase its holdings of cash and near cash. In doing so, the Fund may succeed in avoiding losses, but may otherwise fail to achieve its investment objective.

1. 80% by value of shares; and
2. 20% by value of bonds and other similar fixed income investments.

The Fund will seek to achieve its investment objective by investing more than 90% of its assets in passive funds that track an index, which are managed or operated by the ACD or its associates (“Associated Schemes”).

It is intended that the Fund’s exposures (through its investment in Associated Schemes) to: (1) shares will be to shares of UK companies and non-UK companies, including those in emerging markets (i.e. countries that are progressing toward becoming advanced, usually shown by some development in financial markets, the existence of some form of stock exchange and a regulatory body); and (2) to bonds and other similar fixed income investments will be to Sterling-denominated investments (including gilts, index-linked gilts and UK investment-grade bonds) and to non-Sterling-denominated investments. In the case of both the shares and bonds portions of the portfolio, the UK will generally form one of the largest single country exposures with approximately 35% of the bond portion of the portfolio and 25% of the share portion of the portfolio. Whilst the Fund will seek broadly to maintain the relative sizes of its bonds and shares exposures at the stated levels, the identity and proportion of the particular indices, securities and/or markets, etc. to which the Fund is exposed will be at the discretion of the Investment Adviser taking into account aspects of those funds considered to be relevant to maintain exposure to a diversified portfolio. The stated levels of exposure may change from time to time in response to changes in the market size or market values of the indices tracked by the Associated Schemes in which the Fund invests.

The Fund may also invest directly in transferable securities (such as shares, bonds and other similar fixed income investments) (which will generally be components of the indices tracked by the Associated Schemes in which the Fund invests), money market instruments and deposits. Money market instruments are investments usually issued by banks or governments that are a short term loan to the issuer by the buyer. The buyer receives interest and the return of the original amount at the end of a certain period. A deposit is a fixed term investment that gathers interest over the period of its term.

The Fund may also use derivatives in order to reduce risk or cost and/or generate extra income or growth (often referred to as ‘efficient portfolio management’). Generally speaking, a derivative is a financial contract whose value is based on the value of a financial asset (such as a share, bond, or currency) or a market index. The Fund will not use derivatives for speculative purposes, and only a limited percentage of its assets is committed to them. The Fund may also use certain techniques and instruments in accordance with the limits and conditions specified under “Portfolio Investment Techniques” in Appendix 4.

Further details of the investment powers and restrictions for the Fund are set out in Appendix 3 headed “Investment Powers and Restrictions”.

Temporary Investment Measures

The Fund may temporarily depart from this investment policy in response to the Investment Adviser’s perception of extraordinary market, political or similar conditions. During these periods and for as long as the Investment Adviser deems it necessary, the Fund may increase its holdings of cash and near cash. In doing so, the Fund may succeed in avoiding losses, but may otherwise fail to achieve its investment objective.

The Fund is actively managed and seeks to achieve its investment objective by investing at least 90% of its assets by value in a diversified portfolio of passive funds that seek to track the performance of an index, and which are managed or operated by the ACD or other companies in the Vanguard Group of Companies (“Associated Schemes”).

The pre-defined asset allocation for the Fund means that it is intended that the Fund will invest:

1. approximately 80% of its assets by value in Associated Schemes which provide exposure to shares of companies worldwide. Approximately 25% of such investments (by value) will be in UK listed companies; and
2. approximately 20% of its assets by value in Associated Schemes which provide exposure to government and corporate bonds and other similar fixed income investments worldwide. Approximately 35% of such investments (by value) will be in Sterling-denominated investments (including (UK government bonds (gilts), government related bonds, index-linked gilts and investment-grade bonds), which may include Sterling-denominated bonds issued by companies outside the UK.

This Fund is part of a range of funds. Within this range, a fund which invests more in Associated Schemes that provide exposure to shares of companies will typically be riskier than a fund which invests more in Associated Schemes that provide exposure to government and corporate bonds and other similar fixed income investments.

In addition to the pre-defined asset allocation, the Investment Adviser will aim to maintain a strategic asset allocation that is designed using research conducted by Vanguard. A disciplined investment process is used to design, construct and manage the Fund. The strategic asset allocation is subject to change based on the market size or market values of the indices tracked by the Associated Schemes in which the Fund invests. The Investment Adviser will rebalance the strategy regularly back to these strategic asset allocations and has discretion over when to do so. The Fund does not aim to outperform this strategic asset allocation.

Whilst the Fund will broadly seek to maintain the relative sizes of its bond and shares exposures at the stated levels, the identity and proportion of the particular Associated Schemes, securities and/or markets to which the Fund is exposed will be at the discretion of the Investment Adviser, taking into account aspects of the Associated Schemes considered to be relevant to maintain exposure to a diversified portfolio.

The Fund may also invest up to 10% of its assets directly in transferable securities (such as shares, bonds and other similar fixed income investments, which will generally be components of the indices tracked by the Associated Schemes), money market instruments and deposits.

The Fund may also use derivatives in order to reduce risk or cost and/or generate extra income or growth (often referred to as ‘efficient portfolio management’). See “Portfolio Investment Techniques” in Appendix 4 for associated risks related to derivatives.

Further details of the investment powers and restrictions for the Fund are set out in Appendix 3 headed “Investment Powers and Restrictions”.

Temporary Investment Measures

The Fund may temporarily depart from this investment policy in response to the Investment Adviser’s perception of extraordinary market, political or similar conditions. During these periods and for as long as the Investment Adviser deems it necessary, the Fund may increase its holdings of cash and near cash. In doing so, the Fund may succeed in avoiding losses, but may otherwise fail to achieve its investment objective.

The Fund will seek to achieve its investment objective by investing more than 90% of its assets in passive funds that track an index, which are managed or operated by the ACD or its associates (“Associated Schemes”).

It is intended that the Fund’s exposure to shares (through its investment in Associated Schemes) will be to: (a) shares of UK companies (which will generally form one of the largest single country share exposures); and (b) non-UK companies, including those in emerging markets (i.e., countries that are progressing toward becoming advanced, usually shown by some development in financial markets, the existence of some form of stock exchange and a regulatory body). Whilst the Fund will seek broadly to maintain the shares exposure at the stated level, the identity and proportion of the particular indices, securities and/or markets, etc. to which the Fund is exposed will be at the discretion of the Investment Adviser taking into account aspects of those funds considered to be relevant to maintain exposure to a diversified portfolio. The stated levels of exposure may change from time to time fluctuate in response to changes in the market size or market values of the indices tracked by the Associated Schemes in which the Fund invests.

The Fund may also invest directly in transferable securities (such as shares, bonds and other similar fixed income investments) (which will generally be components of the indices tracked by the Associated Schemes in which the Fund invests), money market instruments and deposits. Money market instruments are investments usually issued by banks or governments that are a short term loan to the issuer by the buyer. The buyer receives interest and the return of the original amount at the end of a certain period. A deposit is a fixed term investment that gathers interest over the period of its term.

The Fund may also use derivatives in order to reduce risk or cost and/or generate extra income or growth (often referred to as ‘efficient portfolio management’). Generally speaking, a derivative is a financial contract whose value is based on the value of a financial asset (such as a share, bond, or currency) or a market index. The Fund will not use derivatives for speculative purposes, and only a limited percentage of its assets is committed to them. The Fund may also use certain techniques and instruments in accordance with the limits and conditions specified under “Portfolio Investment Techniques” in Appendix 4.

Further details of the investment powers and restrictions for the Fund are set out in Appendix 3 headed “Investment Powers and Restrictions”.

Temporary Investment Measures

The Fund may temporarily depart from this investment policy in response to the Investment Adviser’s perception of extraordinary market, political or similar conditions. During these periods and for as long as the Investment Adviser deems it necessary, the Fund may increase its holdings of cash and near cash. In doing so, the Fund may succeed in avoiding losses, but may otherwise fail to achieve its investment objective.

The Fund is actively managed and seeks to achieve its investment objective by investing at least 90% of its assets by value in a diversified portfolio of passive funds that seek to track the performance of an index, and which are managed or operated by the ACD or other companies in the Vanguard Group of Companies (“Associated Schemes”).

The pre-defined asset allocation for the Fund means that it is intended that the Fund will invest approximately 100% of its assets by value in Associated Schemes which provide exposure to shares of companies worldwide. Approximately 25% of such exposure will be in UK listed companies.

This Fund is part of a range of funds. Within this range, a fund which invests more in Associated Schemes that provide exposure to shares of companies will typically be riskier than a fund which invests more in Associated Schemes that provide exposure to government and corporate bonds and other similar fixed income investments.

In addition to the pre-defined asset allocation, the Investment Adviser will aim to maintain a strategic asset allocation that is designed using research conducted by Vanguard. A disciplined investment process is used to design, construct and manage the Fund. The strategic asset allocation is subject to change based on the market size or market values of the indices tracked by the Associated Schemes in which the Fund invests. The Investment Adviser will rebalance the strategy regularly back to these strategic asset allocations and has discretion over when to do so. The Fund does not aim to outperform this strategic asset allocation.

The identity and proportion of the particular Associated Schemes, securities and/or markets to which the Fund is exposed will be at the discretion of the Investment Adviser, taking into account aspects of the Associated Schemes considered to be relevant to maintain exposure to a diversified portfolio

The Fund may also invest up to 10% of its assets directly in transferable securities (such as shares, bonds and other similar fixed income investments, which will generally be components of the indices tracked by the Associated Schemes), money market instruments and deposits.

The Fund may also use derivatives in order to reduce risk or cost and/or generate extra income or growth (often referred to as ‘efficient portfolio management’). See “Portfolio Investment Techniques” in Appendix 4 for associated risks related to derivatives.

Further details of the investment powers and restrictions for the Fund are set out in Appendix 3 headed “Investment Powers and Restrictions”.

Temporary Investment Measures

The Fund may temporarily depart from this investment policy in response to the Investment Adviser’s perception of extraordinary market, political or similar conditions. During these periods and for as long as the Investment Adviser deems it necessary, the Fund may increase its holdings of cash and near cash. In doing so, the Fund may succeed in avoiding losses, but may otherwise fail to achieve its investment objective.