Vanguard Emerging Markets Bond Inv. Cap $ Hdg

Objectives: The Fund seeks to provide total return while generating a moderate level of income by investing primarily in bonds of issuers in emerging market countries. The Fund employs an "active management" strategy, aiming to outperform the J.P. Morgan EMBI Global Diversified Index (the "Index"), over the cycle, and in doing so, the Investment Manager will follow distinct approaches in managing the Fund's assets. The Fund invests in fixed income securities of various maturities, yields, and qualities. Under normal circumstances, the Fund will invest at least 80% of its assets in fixed income securities of issuers that are tied economically to emerging market countries. The Fund seeks to have a majority of its assets denominated in or hedged back to the U.S. dollar but has the ability to invest in bonds denominated in a local currency on an unhedged basis. Emerging market bonds include sovereign debt securities, which include fixed income securities that are issued or guaranteed by foreign governments or their agencies, authorities, political subdivisions or instrumentalities, or other supranational agencies, as well as debt securities issued or guaranteed by foreign corporations and foreign financial institutions. The Investment Manager may in its discretion restrict the extent to which the Fund's holdings deviate from the Index constituents on a security selection and fixed income sector basis. The Fund may take active fixed income sector and security selection views with the focus on bond specific selection. The investment manager may apply constraints which limit the potential volatility of the Fund relative to the Index and such constraints may change or be removed from time to time at the Investment Manager's discretion and depending on market environments. The Fund may use derivatives in order to reduce risk or cost and/or generate extra income or growth, and for investment purposes. A derivative is a financial contract whose value is based on the value of a

PIR compliant

No

PEA compliant

No

PEA-PME compliant

No