Schedule 14A Information
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Vanguard Admiral Funds
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Vanguard CMT Funds
Vanguard California Tax-Free Funds
Vanguard Charlotte Funds
Vanguard Chester Funds
Vanguard Convertible Securities Fund
Vanguard Explorer Fund
Vanguard Fenway Funds
Vanguard Fixed Income Securities Funds
Vanguard Horizon Funds
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Vanguard Institutional Index Funds
Vanguard International Equity Index Funds
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Vanguard Massachusetts Tax-Exempt Funds
Vanguard Money Market Reserves
Vanguard Montgomery Funds
Vanguard Morgan Growth Fund
Vanguard Municipal Bond Funds
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Vanguard New York Tax-Free Funds
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Vanguard Quantitative Funds
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Vanguard Valley Forge Funds
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Shareholders of each U.S.-based Vanguard fund are being asked to elect a board of trustees and approve several policy changes that will allow us to harmonize policies across our U.S.-based funds. Approval of these proposals is important since it will put into place people and policies that will help us continue to protect shareholders’ interests, manage our funds efficiently, and lower the cost of investing for shareholders.
Each fund’s board of trustees recommends | a | Broaden the investment objectives | |
a vote for each of the following proposals: | for Vanguard’s two REIT offerings | ||
This management proposal asks shareholders | |||
a | Elect trustees | to approve a change in the investment objectives | |
Twelve individuals have been nominated for election | for Vanguard REIT Index Fund and the REIT Index | ||
as Vanguard fund trustees. If approved, the newly | Portfolio of Vanguard Variable Insurance Fund. The | ||
elected trustees would serve together on each | change would broaden their mandate to include real | ||
fund’s board, effective January 1, 2018. The names | estate management and development companies. | ||
and biographical details of the nominees are available | |||
in the proxy statement. | a | Change in the diversification status | |
of Vanguard REIT Index Fund | |||
a | Enable all U.S.-based Vanguard funds to | This management proposal asks shareholders to | |
retain third-party investment advisors | approve a change in the diversification status of the | ||
This management proposal asks shareholders to | REIT Index Fund from diversified to nondiversified, | ||
extend the ability of Vanguard-managed index funds | as defined by the Investment Company Act of 1940. | ||
and a subset of Vanguard-managed active funds | |||
to enter into or materially amend investment advisory | a | Approve new advisory, administration, | |
agreements with third-party investment advisors | and distribution arrangements for two funds | ||
without obtaining shareholder approval. | This management proposal asks shareholders to | ||
approve new investment advisory, administration, | |||
a | Enable all U.S.-based Vanguard funds to retain | and distribution arrangements for Vanguard | |
Vanguard-affiliated investment advisors | Institutional Index Fund and Vanguard Institutional | ||
This management proposal asks shareholders to | Total Stock Market Index Fund by adopting the | ||
give approval for all funds to rely on a pending U.S. | Vanguard Funds’ Service Agreement. | ||
Securities and Exchange Commission exemptive | |||
application that, if granted, would permit the funds | |||
to enter into or materially amend investment | Shareholder meeting | ||
advisory agreements with Vanguard subsidiaries | A shareholder meeting will be held in Scottsdale, | ||
without obtaining shareholder approval. | Arizona, onWednesday, November 15. |
Connect with Vanguard®>800-997-2798
For more information about Vanguard funds, visit advisors.vanguard.com or call 800-997-2798 to obtain a prospectus or, if available, a summary prospectus. Investment objectives, risks, charges, expenses, and other important information about a fund are contained in the prospectus; read and consider it carefully before investing.
All investments are subject to risk, including the possible loss of the money you invest.
FOR FINANCIAL ADVISORS AND INSTITUTIONS ONLY. NOT FOR PUBLIC DISTRIBUTION.
Vanguard Financial
Advisor Services™
P .O. Box 2900
Valley Forge, PA 19482-2900
© 2017 The Vanguard Group, Inc.
All rights reserved.
Vanguard Marketing Corporation, Distributor.
FAPRXAP 082017
What is a proxy?
A proxy is the legal authority or means to permit a shareholder’s vote to be registered without the shareholder’s physical presence at an annual or a special shareholder meeting. Shareholders may vote their proxy by mail, by phone, or online.
What now?
Like other U.S. mutual funds, Vanguard funds periodically hold shareholder meetings when shareholder approval is needed for certain matters affecting the funds. At an upcoming shareholder meeting, or by proxy beforehand, shareholders will vote on the election of trustees for all U.S.-based Vanguard funds. Shareholders will also be asked to vote on several fund policy proposals that, if approved, will harmonize fund policies and give the funds more operational flexibility while acting in what we believe to be the best interests of their shareholders.
Your fund. Your vote.
When voting opens on August 16, you will have several resources and voting options available to make it easy to participate:
Go to our Proxy Resource Center atadvisors.vanguard.com/proxy.
"We encourage Vanguard fund shareholders to vote on these important proposals, which will put in place the people and policies to enable us to continue to lower the cost of investing and enhance the management of our funds with the ultimate goal of improving client outcomes."
— Vanguard CEO Bill McNabb
Vanguard proposals | |||
Shareholders will vote on the following | a | Broaden the investment objectives | |
proposals presented by Vanguard in the | for Vanguard’s two REIT offerings. | ||
proxy statement: | This management proposal asks shareholders to | ||
approve a change in the investment objectives for | |||
a | Elect trustees. | Vanguard REIT Index Fund and the REIT Index | |
Trustees oversee the funds to make sure they | Portfolio of Vanguard Variable Insurance Fund. The | ||
effectively serve the interests of shareholders. | change would broaden their mandate to include real | ||
Shareholders of each U.S.-based Vanguard fund | estate management and development companies. | ||
will be asked to elect a board of trustees. | |||
a | Change in the diversification status | ||
a | Enable all U.S.-based Vanguard funds to retain | of Vanguard REIT Index Fund. | |
third-party investment advisors. | This management proposal asks shareholders | ||
This management proposal asks shareholders to | to approve a change in the diversification status | ||
extend the ability of Vanguard-managed index funds | of the REIT Index Fund from diversified to | ||
and a subset of Vanguard-managed active funds | nondiversified, as defined by the Investment | ||
to enter into or materially amend investment advisory | Company Act of 1940, to allow the fund to track | ||
agreements with third-party investment advisors | more closely its benchmark index. | ||
without obtaining shareholder approval. | |||
a | Approve new advisory, administration, | ||
a | Enable all U.S.-based Vanguard funds to retain | and distribution arrangements for two funds. | |
Vanguard-affiliated investment advisors. | This management proposal asks shareholders | ||
This management proposal asks shareholders to | to approve new investment advisory, administration, | ||
give approval for all funds to rely on a pending U.S. | and distribution arrangements for Vanguard | ||
Securities and Exchange Commission exemptive | Institutional Index Fund and Vanguard Institutional | ||
application that, if granted, would permit the funds | Total Stock Market Index Fund by adopting the | ||
to enter into or materially amend investment advisory | Vanguard Funds’ Service Agreement. | ||
agreements with Vanguard subsidiaries without | |||
obtaining shareholder approval. | |||
Shareholder proposals | |||
In addition, shareholders of certain funds will be able to vote on a proposal submitted by other | |||
shareholders. The proposal seeks to prescribe specific investment limits for several funds. |
Connect with Vanguard®>800-997-2798
For more information about Vanguard funds, visit advisors.vanguard.com or call 800-997-2798 to obtain a prospectus or, if available, a summary prospectus. Investment objectives, risks, charges, expenses, and other important information about a fund are contained in the prospectus; read and consider it carefully before investing. Please note that a preliminary prospectus is subject to change.
All investments are subject to risk, including the possible loss of the money you invest.
Funds that concentrate on a relatively narrow market sector face the risk of higher share-price volatility.
Vanguard Financial
Advisor Services™
P .O. Box 2900
Valley Forge, PA 19482-2900
© 2017 The Vanguard Group, Inc.
All rights reserved.
Vanguard Marketing Corporation, Distributor.
FAPRXCP 082017