Investment Options

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 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 bonds.

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 bond 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 Vanguard LifeStrategy Moderate Growth Fund, the Portfolio is primarily subject to stock market risk; and a moderate level of country/regional risk and currency risk. The Portfolio is also subject to bond risk, including moderate levels of interest rate risk, credit risk, income risk, and call risk, and low levels of currency hedging risk and nondiversification risk. 

To learn more about this investment portfolio, please visit Vanguard's website.