Vanguard Advisers, Inc. |
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Vanguard Advisers, Inc. (VAI), provides advisory services to a wide variety of clients. These services consist of products and tools that help users:
VAI is a subsidiary of The Vanguard Group, Inc. (Vanguard), the sponsor and manager of the Vanguard family of mutual funds. VAI is registered as an investment advisor with the U.S. Securities and Exchange Commission.
VAI offers advisory services through a variety of products and investment planning tools designed to assist you in achieving your long-term investment goals. The investment planning tools include interactive programs accessed through Vanguard's website, diskettes that you upload to your personal computer, paper-based products, and conversations with telephone representatives. VAI's investment planning tools use a questionnaire that takes into account your objectives, experience, risk tolerance, and time horizon. Based on your answers to the questionnaire, you receive a score. Your score correlates to a particular asset allocation. Some of the investment planning tools provide asset allocation advice only. Others will suggest a mix of Vanguard funds (and in some cases a single Vanguard fund) or a mix of Vanguard ETFs® (and in some cases a single Vanguard ETF) that you can invest in to implement the allocation. For example, if your score on the questionnaire results in a recommended asset allocation of 60% stocks and 40% bonds, the suggested mix of Vanguard funds would have an overall market exposure that is roughly 60% stocks and 40% bonds. Different mixes of funds and ETFs can be used to achieve the same asset allocation. As a result, different investment planning tools may suggest different mixes of funds and ETFs for the same asset allocation. For example, some of the investment-planning tools are customized for participants in a particular retirement plan, and therefore identify only funds that are available through that plan. In most cases, how you allocate your assets among stock, bonds, and short-term reserves will be more important in determining the long-term return and volatility of your portfolio than the particular funds you select. You are, of course, under no obligation to accept the suggestions provided by an investment planning tool. If you choose to do so, it is up to you to contact Vanguard (or your retirement plan recordkeeper) to initiate the transaction. Neither VAI nor Vanguard is authorized to make decisions regarding your investments.
VAI's methodology incorporates our own investment philosophies and beliefs, such as the benefits of low costs, diversification, and indexing. Approved and periodically reviewed by senior Vanguard management, it is based on Vanguard's own fundamental research, as well as research obtained from a wide variety of external sources, both public and private. Our methodology is driven by long-term financial goals, not by market-timing or short-term investment performance. Rather than attempting to predict which investments will provide superior performance at any given time, VAI generally tries to minimize risk by recommending that you maintain a broad diversification among investments from a variety of market sectors and asset classes. Fees and other costs There is no fee charged to users of the investment planning tools. In addition, the purchase or sale of Vanguard fund shares (whether or not suggested by an investment planning tool) is not subject to a load, sales charge, or commission. However, each Vanguard fund incurs advisory, administrative, and custodial fees, as well as other fees and expenses, that it pays out of its own assets. These costs, which in the aggregate are referred to as the fund's "expense ratio", are indirectly borne by the fund's shareholders. Please consult the prospectus for information about a specific fund's expense ratio. Some funds may charge purchase fees when you buy shares and redemption fees when you sell shares. These fees, designed to offset the cost of buying and selling securities, are paid directly to the fund and are not sales charges. If applicable, these fees will be assessed on your purchase or deducted from your redemption proceeds in accordance with the conditions set forth in the prospectus of the particular fund bought or sold. Fees for brokerage services Some VAI investment planning tools may recommend the purchase or sale of Vanguard ETFs. If you act on any such recommendations through Vanguard Brokerage Services®—an operating division of Vanguard Marketing Corporation, which is an affiliate of VAI and The Vanguard Group, Inc.—and do not currently have a Vanguard Brokerage account, you will need to open an account with Vanguard Brokerage to complete any such transactions. There may be fees associated with establishing, maintaining, engaging in transactions in, and transferring assets out of this account. See the Vanguard Brokerage Services Commission and Fee Schedules on Vanguard.com for full details. Special note for retirement plan participants The advice provided by VAI may include recommendations to hold or purchase the mutual funds and ETFs that compose The Vanguard Group of Investment Companies, which is an affiliate of VAI. Acting in accordance with such advice will result in the payment of fees to the Vanguard mutual funds and ETFs. Similarly, participants in employer-sponsored retirement plans for which Vanguard provides recordkeeping services may be permitted to invest in collective trusts, company stock funds, or certain customized investment options for which an affiliate of VAI provides services and receives compensation. Because advice provided by VAI may include recommendations to hold or purchase these investment options, acting in accordance with such advice may result in the payment of fees to an affiliate of VAI. Participants in employer-sponsored retirement plans for which Vanguard provides recordkeeping services often are permitted to invest in non-Vanguard mutual funds. Because the advice provided by VAI may include recommendations to hold or purchase non-Vanguard mutual funds, acting in accordance with such advice may result in payments to Vanguard as compensation for participant-level recordkeeping and administrative services provided by Vanguard for such funds. This payment may be made by the fund company sponsoring the non-Vanguard mutual fund, by the plan sponsor, or by the participant investing in the non-Vanguard mutual fund. You may separately arrange for the provision of advice by another provider that has no material affiliation with and receives no compensation in connection with the mutual funds, securities, or other property that is the subject of the advice.
VAI's investment strategies and recommendations are based on a methodology that is approved and periodically reviewed by a committee of senior executives. The committee is composed of certain directors of VAI in addition to senior executives overseeing the daily operations of the advice metholodogy group and programs. John A. Ameriks (born 1968). Mr. Ameriks is a principal at Vanguard and the head of Vanguard's Investment Counseling and Research group. Associated with Vanguard since 2003, Mr. Ameriks previously worked as a senior research economist at TIAA-CREF (1996–2003). He holds an A.B. from Stanford University and an M.A., M.Phil., and Ph.D. from Columbia University. He is also a member of the investment committee. R. Gregory Barton (born 1951). Mr. Barton is a director and the secretary of VAI and a managing director of VGI. Associated with Vanguard since 1982, he holds a B.A. from Colgate University, a J.D. from Marshall-Wythe School of Law, and an L.L.M. from Temple University Law School. He is also a member of the investment committee. Mortimer J. Buckley (born 1969). Mr. Buckley is a director of VAI and a managing director of VGI. Associated with Vanguard since 1991, he holds an A.B. from Harvard College and an M.B.A. from Harvard Business School. He is also a member of the investment committee. Joseph H. Davis (born 1971). Mr. Davis is a principal at Vanguard, the head of Vanguard's Investment Strategy Group, and Vanguard's chief economist. Associated with Vanguard since 2002, he holds a B.A. from Saint Joseph's University and an M.A. and Ph.D. from Duke University. He is also a member of the investment committee. F. William McNabb, III (born 1957). Mr. McNabb is a director and the chairman, president, and chief executive officer of VAI and a director and the president and chief executive officer of VGI. Associated with Vanguard since 1986, he holds an A.B. from Dartmouth College and an M.B.A. from The Wharton School, University of Pennsylvania. He is also a member of the investment committee. Michael S. Miller (born 1951). Mr. Miller is a director of VAI, and is a managing director of VGI. Associated with Vanguard since 1996, he holds a B.A. from the University of Virginia and a J.D. from the University of Virginia School of Law. He is also a member of the investment committee. Glenn W. Reed (born 1953). Mr. Reed is a director of VAI and a managing director of VGI. Associated with Vanguard since 2007, he previously served as executive vice president of HealthMarkets, Inc. (1999–2006). He holds an A.B. from Dartmouth College and a J.D. from Harvard Law School. He is also a member of the investment committee. George U. Sauter (born 1954). Mr. Sauter is a director of VAI and the chief investment officer and a managing director of VGI. Associated with Vanguard since 1987, he holds an A.B. from Dartmouth College and an M.B.A. from the University of Chicago. He is also a member of the investment committee. Heidi Stam (born 1956). Ms. Stam is general counsel and a principal of VAI and general counsel, secretary, and a managing director of VGI. Associated with Vanguard since 1997, she holds a B.A. from Tufts University, a J.D. from American University, and an L.L.M. from Harvard Law School. She is also a member of the investment committee.
Vanguard Advisers, Inc. (VAI), is an affiliate of The Vanguard Group, Inc. (Vanguard). VAI is located at P.O. Box 2900, Valley Forge, PA 19482-2900. For additional information about VAI, please call 877-662-7447. Vanguard is owned by the Vanguard funds, which are recommended as investments. Vanguard funds are distributed by Vanguard Marketing Corporation, a registered broker-dealer affiliated with VAI and Vanguard. VAI has established and operates under a Code of Ethics that complies with the requirements of the federal securities laws. VAI will provide a free copy of its Code of Ethics to any client or prospective client upon request. For more information, including risks, charges, and expenses, about any Vanguard fund, obtain its prospectus from The Vanguard Group (877-662-7447). Read and consider it carefully before you invest or send money. |
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