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Investment information and Remuneration policy

The value of investments, and the income from them, may fall or rise and investors may get back less than they invested. For funds that invest in overseas markets, the value of this investment may fall or rise as a result of changes in exchange rates. Some funds may invest in emerging markets which can be more volatile than more established markets. As a result the value of this investment may rise or fall. Corporate bonds may provide higher yields but as such may carry greater credit risk increasing the risk of default on repayment and erosion of the capital value of your investment and the level of income may fluctuate. Fixed interest securities also carry the risk of default on repayment and erosion of the capital value of your investment and the level of income may fluctuate. Movements in interest rates are likely to affect the capital value of fixed interest securities. Investments in smaller companies may be more volatile than investments in well-established blue chip companies. Some funds may invest in derivatives. The risks associated with the use of derivatives are different from, or possibly greater than, the risks associated with investing directly in securities and other traditional investments. There is no assurance that any derivative strategy used by the Fund will succeed and a Fund may suffer a substantial loss as a result. Past performance is not a reliable indicator of future results.

The Central Bank of Ireland has granted authorisation for the Vanguard USD Treasury Bond UCITS ETF, Vanguard Eurozone Inflation Linked Bond Index Fund, Vanguard Japan Government Bond Index Fund, Vanguard U.K. Gilt UCITS ETF, Vanguard UK Government Bond Index Fund, Vanguard U.K. Long Duration Gilt Index Fund, Vanguard U.K. Inflation-Linked Gilt Index Fund and the Vanguard U.S. Government Bond Index Fund to invest up to 100% of net assets in different Transferable Securities and Money Market Instruments issued or guaranteed by any EU Member State, its local authorities, non-EU Member States or public international bodies of which one or more EU Member States are members. As at 30 June 2016, the Vanguard USD Treasury Bond UCITS ETF invests more than 35% of its scheme property in transferable securities and money market instruments issued or guaranteed by the US. The Vanguard Eurozone Inflation Linked Bond Index Fund invests more than 35% of its scheme property in transferable securities and money market instruments issued or guaranteed by France. The Vanguard Japan Government Bond Index Fund invests more than 35% of its scheme property in transferable securities and money market instruments issued or guaranteed by Japan. The Vanguard UK Government Bond Index Fund invests more than 35% of its scheme property in transferable securities and money market instruments issued or guaranteed by the UK. The Vanguard U.K. Gilt UCITS ETF invests more than 35% of its scheme property in transferable securities and money market instruments issued or guaranteed by the UK. The Vanguard U.S. Government Bond Index Fund invests more than 35% of its scheme property in transferable securities and money market instruments issued or guaranteed by the US. The Vanguard U.K. Long Duration Gilt Index Fund invests more than 35% of its scheme property in transferable securities and money market instruments issued or guaranteed by the UK. The Vanguard U.K. Inflation-Linked Gilt Index Fund invested more than 35% of its scheme property in transferable securities and money market instruments issued or guaranteed by the UK. For further information on the fund's investment policy, please refer to the Key Investor Information Document ("KIID").

For The Vanguard FTSE UK Equity Income Index Fund, the charges are deducted from capital (not income). Whilst this may increase the level of income paid, it will result in capital erosion and will constrain growth.

The Authorised Corporate Director for Vanguard Investment Funds ICVC, Vanguard FTSE UK All Share Index Unit Trust and Vanguard Lifestrategy Funds ICVC is Vanguard Investments UK, Limited. Vanguard Asset Management, Limited is a distributor of Vanguard Investment Funds ICVC, Vanguard FTSE UK All Share Index Unit Trust and Vanguard Lifestrategy Funds ICVC.

The Manager of Vanguard Investment Series plc, Vanguard Common Contractual Fund and Vanguard Funds plc is Vanguard Group (Ireland) Limited. Vanguard Asset Management, Limited is a distributor of Vanguard Investment Series plc, Vanguard Common Contractual Fund and Vanguard Funds plc.

Vanguard Investment Series plc and Vanguard Funds plc have been authorised by the Central Bank of Ireland as a UCITS and have been registered for public distribution in certain EU countries. Vanguard Common Contractual Fund has been authorised by the Central Bank of Ireland as a UCITS and has been registered for distribution to eligible investors in the UK. Prospective investors are referred to the Funds' prospectus for further information. Prospective investors are also urged to consult their own professional advisors on the implications of making an investment in, and holding or disposing shares of the Funds and the receipt of distributions with respect to such shares under the law of the countries in which they are liable to taxation.

For further information on the fund’s investment policy, please refer to the Key Investor Information Document ('KIID") . The KIIDs and Prospectus are available in the relevant languages. These documents are available from Vanguard Asset Management, Limited via this website and on request.

Vanguard Asset Management, Limited is a sub-manager of some of the UK and Ireland domiciled sub-funds.

Vanguard Asset Management, Limited only gives information on products and does not give investment advice based on individual circumstances. If you have any questions related to your investment decision or the suitability or appropriateness for you of the product[s described on this website, please contact your financial adviser.

Remuneration Policies and Practices

Vanguard Investment UK, Limited

Introduction

The Vanguard Group's unique "mutual" structure is a key factor in the organisation's success, and aligns the interests of Vanguard and its staff (referred to as "crew") with those of its clients. This structure, and the Vanguard Group's culture and values, set the stage for Vanguard's global total rewards philosophy, which is based on the principle that 'crew win when clients win" and aligns business strategy with our crew's remuneration.

This philosophy is supported by the Vanguard European Remuneration Policy (the 'Remuneration Policy"), which is designed to ensure that remuneration policies and practices within the consolidated Vanguard UK group ('Vanguard Europe") are consistent with, and promote, sound and effective risk management, and are in line with the business strategy and objective of the group and the interests of Vanguard Europe and its stakeholders.

The Remuneration Policy is also designed currently to ensure compliance with the UK BIPRU Remuneration Code (Chapter 19C of the Senior Management Arrangements, Systems and Controls sourcebook of the UK Financial Conduct Authority Handbook).

Oversight

The Remuneration Policy is overseen and implemented by Vanguard's European Remuneration Committee ('ERC"), which is currently comprised of the Chief Executive Officer of each Vanguard UK company, the Head of HR, Europe, the Principal for the Total Rewards team of the Vanguard Group and a number of members of the Total Rewards team. Vanguard's European Compliance and Risk functions provide input and assistance to the ERC as required.

Additional levels of oversight are provided by Vanguard's Global Remuneration Committee, and the Compensation Committee of The Vanguard Group, Inc. (which is comprised solely of independent directors).

Implementation

As part of the operation of the Remuneration Policy, crew that constitute "Remuneration Code Staff" are identified and notified of their status. Remuneration Code Staff comprise senior management, risk-takers, crew members engaged in control functions and any crew members receiving total remuneration that takes them into the same remuneration bracket as senior management and risk-takers, whose professional activities have a material impact on the firm's risk profile.

Compensation elements consist of an appropriate balance of salary; benefits, including pension, life assurance and health insurance; and participation in bonus arrangements, depending on role and seniority. These include bonus arrangements designed to reward crew by reinforcing Vanguard Europe's collective interest in the Vanguard Group's long-term growth and success by ensuring that a portion of individual compensation is linked to overall performance of the Vanguard Group, and Vanguard Europe, within a responsible level of risk. Bonus arrangements for certain crew are designed to reward individual, team, business unit and fund performance by reference to both quantitative and qualitative metrics and, for certain senior crew members, bonuses may be deferred over three to five years, with the vesting amounts linked to movements in the earnings of the Vanguard Group. Vanguard may, in exceptional circumstances, provide guaranteed bonus amounts for new hires who join part way through a bonus year and only for that bonus year; and may, if deemed appropriate, offer a buy-out award to a new joiner provided that the terms of such award will reflect those being bought out.

Review

The Remuneration Policy will be updated to reflect the remuneration requirements of the UCITS V Directive (2014/91/EU). These updates will take effect from 1 November 2016, being the start of the first full performance period of Vanguard Europe to commence after the UCITS V Directive took effect on 18 March 2016.

Vanguard Group (Ireland) Limited
Information on the remuneration policy of Vanguard Group (Ireland) Limited can be found here.