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Vanguard - Investment strategy and policy
Personal Investors

Strategy and policy

Investment strategy

The portfolio directs all of its assets into Vanguard Short-Term Reserves Account, through which the portfolio owns funding agreements issued by one or more insurance companies, as well as shares of Vanguard Prime Money Market Fund. Funding agreements are interest-bearing contracts structured to preserve principal and accumulate interest earnings over the life of the investment. Funding agreements pay interest at a fixed minimum rate and have fixed maturity dates that normally range from 2 to 5 years.

Investment policy

The portfolio owns funding agreements issued by insurance companies, in addition to shares of Vanguard Prime Money Market Fund. The funding agreements are structured to preserve principal and accumulate interest earnings over the life of the investment. The total amount invested in the Prime Money Market Fund is expected to be between 0% and 25%.

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