Moderate Growth Portfolio
The Moderate Growth Portfolio invests entirely in the Vanguard LifeStrategy Moderate Growth Fund (the “Moderate Growth Fund”). The Moderate Growth Fund invests in other Vanguard Mutual Funds according to a fixed formula that reflects an allocation of approximately 60% of the Moderate Growth Fund’s assets to common stocks and 40% to fixed income securities.
Investment Objective
The Moderate Growth Portfolio seeks to provide capital appreciation and a low to moderate level of current income.
Investment Strategy
The Moderate Growth Portfolio invests entirely in the Vanguard LifeStrategy Moderate Growth Fund (the “Moderate Growth Fund”). The Moderate Growth Fund invests in a mix of Vanguard Mutual Funds according to an asset allocation strategy that reflects an allocation of approximately 60% of the Moderate Growth Fund’s assets to common stocks and 40% to fixed income securities.
The Moderate Growth Fund’s indirect stock holdings are a diversified mix of U.S. and foreign large-, mid-, and small-capitalization stocks. Its indirect fixed income holdings are a diversified mix of short-, intermediate-, and long-term U.S. government, U.S. agency, and Investment Grade U.S. corporate bonds; mortgage-backed and asset-backed Securities, and government, agency, corporate, and securitized investment-grade foreign bonds issued in currencies other than the U.S. dollar (but hedged by Vanguard to minimize foreign currency exposure). The Moderate Growth Fund’s board of trustees allocates the Moderate Growth Fund’s assets among the underlying funds based on the Moderate Growth Fund’s investment objectives and policies. The Moderate Growth Fund’s board of trustees may change these allocations from time to time without shareholder approval.
Investment Risks
Because the Moderate Growth Portfolio invests entirely in the Moderate Growth Fund, the Portfolio is proportionately subject to stock risks, including stock market risk, country/regional risk, and currency risk; and fixed income risks, including interest rate risk, credit risk, income risk, call risk, country/regional risk, and currency hedging risk. The Portfolio is also subject to asset allocation risk.
To learn more about this investment portfolio, please visit Vanguard's website.
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