Vanguard Lifestrategy Funds Icvc: Annual Report and Financial Statements
Vanguard Lifestrategy Funds Icvc: Annual Report and Financial Statements
* The items with an asterisk, plus each Fund’s Investment Objective, Investment Strategy, Performance Summary, Performance Comparative Table, Summary of Significant Changes and Portfolio
Statement, collectively constitute the Authorised Corporate Director’s Report.
Vanguard LifeStrategy Funds ICVC Authorised
Corporate Director’s Commentary and Statement of Responsibilities
Year ended 31 March 2022
The Authorised Corporate Director (“ACD”) of Vanguard LifeStrategy Funds ICVC (the “Company”) is Vanguard Investments UK, Limited. The
ACD is the sole director of the Company. The Depositary is State Street Trustees Limited and the Independent Auditors are
PricewaterhouseCoopers LLP. The Company is an authorised open-ended investment company with variable capital under Regulation
14 (Authorisation) of the Open-Ended Investment Companies Regulations 2001 (as amended) (the “OEIC Regulations”), and the shareholders
are not liable for the debts of the Company.
The Company is an umbrella company and currently consists of 16 sub-funds (collectively "Funds"). New Funds may be formed by the ACD
subject to regulatory approval.
The Funds seek to achieve their investment objectives predominantly through investments consisting of related party (“affiliated”) collective
investment schemes; the Company’s policy for pursuing those objectives and a review of each Fund’s investment activities for the relevant
year are set out in this Annual Report and Financial Statements.
Management has determined that no other events or transactions occurred subsequent to 31 March 2022 that would require recognition or
disclosure in these financial statements.
Political and economic uncertainty may lead to speculation and subsequent market volatility, particularly for assets denominated in British
pounds. Vanguard continues to encourage investors to follow its core investing principles, including maintaining long-term discipline.
The implications of Brexit extend beyond the UK economy and financial markets, affecting multinational organisations globally. The relevant
regulatory authorities in the United Kingdom may in the future make changes to their rules which deviate from the standards applicable in the
European Union. This could result in changes being made to the rules applicable in the European Union.
The nature and extent of the impact of these factors on the Funds is uncertain, but may be adverse. Vanguard remains committed to
safeguarding our investors' assets and their long-term interests and has devoted significant resources to developing plans to manage the
impact of Brexit.
Authorised Corporate Director's Statement of Responsibilities in Relation to the Financial Statements of the Company and Funds
The Financial Conduct Authority’s Collective Investment Schemes sourcebook (“COLL”) requires the ACD to prepare Financial Statements for
each annual and half-yearly accounting period, in accordance with United Kingdom Generally Accepted Accounting Practice, which give a true
and fair view of the financial position of the Company and Funds and of its net revenue and the net capital gains/(losses) on the property of
the Company and Funds for the year.
1
The ACD is responsible for the management of the Company in accordance with the Company’s Instrument of Incorporation, the Prospectus
and the COLL and for taking reasonable steps for the prevention and detection of fraud, error and noncompliance with law or regulations.
The ACD’s report and the Financial Statements for the year ended 31 March 2022 were signed on 25 July 2022 on behalf of the ACD by:
2
Vanguard LifeStrategy Funds ICVC
Report of the Depositary to the Shareholders
Year ended 31 March 2022
The Depositary must ensure that the Company is managed in accordance with the Financial Conduct Authority’s Collective Investment
Schemes Sourcebook, the Open-Ended Investment Companies Regulations 2001 (SI 2001/1228), as amended, the Financial Services and
Markets Act 2000, as amended (together “the Regulations”), and the Company’s Instrument of Incorporation and Prospectus (together “the
Scheme documents”) as detailed below.
The Depositary must in the context of its role act honestly, fairly, professionally, independently and in the interests of the Company and its
investors.
The Depositary is responsible for the safekeeping of all custodial assets and maintaining a record of all other assets of the Company in
accordance with the Regulations.
• the Company’s cash flows are properly monitored and that cash of the Company is booked in cash accounts in accordance with the
Regulations;
• the sale, issue, repurchase, redemption and cancellation of shares are carried out in accordance with the Regulations;
• the value of shares of the Company are calculated in accordance with the Regulations;
• any consideration relating to transactions in the Company’s assets is remitted to the Company within the usual time limits;
• the Company’s income is applied in accordance with the Regulations; and
• the instructions of the ACD, which is the UCITS Management Company, are carried out (unless they conflict with the Regulations).
The Depositary also has a duty to take reasonable care to ensure that the Company is managed in accordance with the Regulations and
Scheme documents in relation to the investment and borrowing powers applicable to the Company.
Having carried out such procedures as we consider necessary to discharge our responsibilities as Depositary of the Company, it is our opinion,
based on the information available to us and the explanations provided, that in all material respects the Company, acting through the ACD:
i) has carried out the issue, sale, redemption and cancellation, and calculation of the price of the Company’s shares and the application of the
Company’s income in accordance with the Regulations and the Scheme documents of the Company, and
ii) has observed the investment and borrowing powers and restrictions applicable to the Company.
25 July 2022
3
Independent Auditors’ Report to the Shareholders of
Vanguard LifeStrategy Funds ICVC
• give a true and fair view of the financial position of the Company and each of the sub-funds as at 31 March 2022 and of the net revenue and
the net capital gains on the scheme property of the Company and each of the sub-funds for the year then ended; and
• have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting
Standards, comprising FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland”, and applicable law), the
Statement of Recommended Practice for UK Authorised Funds, the Collective Investment Schemes sourcebook and the Instrument of
Incorporation.
Vanguard LifeStrategy Funds ICVC is an Open Ended Investment Company ("OEIC") with 16 sub-funds. The financial statements of the
Company comprise the financial statements of each of the sub-funds. We have audited the financial statements, included within the Annual
Report and Financial Statements (the “Annual Report”), which comprise: the Balance Sheets as at 31 March 2022; the Statements of Total
Return and the Statements of Change in Net Assets Attributable to Shareholders for the year then ended; the Distribution Tables; and the
notes to the financial statements, which include a description of the significant accounting policies.
Independence
We remained independent of the Company in accordance with the ethical requirements that are relevant to our audit of the financial
statements in the UK, which includes the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with
these requirements.
In auditing the financial statements, we have concluded that the Authorised Corporate Director’s use of the going concern basis of
accounting in the preparation of the financial statements is appropriate.
However, because not all future events or conditions can be predicted, this statement is not a guarantee as to the Company’s or any of the
sub-funds’ ability to continue as a going concern.
Our responsibilities and the responsibilities of the Authorised Corporate Director with respect to going concern are described in the relevant
sections of this report.
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether
the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit, or otherwise appears to
be materially misstated. If we identify an apparent material inconsistency or material misstatement, we are required to perform procedures
to conclude whether there is a material misstatement of the financial statements or a material misstatement of the other information. If,
based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to
report that fact. We have nothing to report based on these responsibilities.
4
Responsibilities for the financial statements and the audit
In preparing the financial statements, the Authorised Corporate Director is responsible for assessing the Company’s and each of the sub-
funds ability to continue as a going concern, disclosing as applicable, matters related to going concern and using the going concern basis of
accounting unless the Authorised Corporate Director either intends to wind up or terminate the Company or individual sub-fund, or has no
realistic alternative but to do so.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our
responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our
procedures are capable of detecting irregularities, including fraud, is detailed below.
Based on our understanding of the Company/industry, we identified that the principal risks of non-compliance with laws and regulations
related to breaches of the Collective Investment Schemes sourcebook, and we considered the extent to which non-compliance might have a
material effect on the financial statements, in particular those parts of the sourcebook which may directly impact on the determination of
amounts and disclosures in the financial statements. We evaluated management’s incentives and opportunities for fraudulent manipulation of
the financial statements (including the risk of override of controls), and determined that the principal risks were related to posting
inappropriate journal entries to increase revenue or to increase the net asset value of the Company or the sub-funds.
• Discussions with the Authorised Corporate Director, including consideration of known or suspected instances of non-compliance with
laws and regulation and fraud;
• Reviewing relevant meeting minutes, including those of the Authorised Corporate Director’s board of directors;
• Identifying and testing journal entries, specifically any journals posted as part of the financial year end close process; and
• Designing audit procedures to incorporate unpredictability around the nature, timing or extent of our testing.
There are inherent limitations in the audit procedures described above. We are less likely to become aware of instances of non-compliance
with laws and regulations that are not closely related to events and transactions reflected in the financial statements. Also, the risk of not
detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve
deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website
at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditors’ report.
5
Other required reporting
Opinion on matter required by the Collective Investment Schemes sourcebook
In our opinion, we have obtained all the information and explanations we consider necessary for the purposes of the audit.
PricewaterhouseCoopers LLP
Chartered Accountants and Statutory Auditors
Edinburgh
25 July 2022
6
Vanguard LifeStrategy 20% Equity Fund
Managed by Vanguard Global Advisers, LLC.
Investment Objective
The Fund’s investment objective is to hold investments that will pay out money and increase in value through exposure to a diversified portfolio composed of
approximately 20% by value of shares and 80% by value of bonds and other similar fixed income investments.
Investment Strategy
The Fund will seek to achieve its investment objective by investing more than 90% of its assets in passive funds that track an index, which are managed or
operated by the ACD or its associates.
1 2 3 4 5 6 7
The Synthetic Risk and Reward Indicator (SRRI) measures the volatility of the Fund. The risk and reward category (which may range from 1 to 7) is calculated
using historical data and may not be a reliable indicator of the Fund’s future risk profile. The risk and reward category may shift over time and is not a target or
guarantee. The lowest category (i.e. category 1) does not mean “risk free”. The Fund appears in the lower range of the risk and reward indicator because the
values of the Fund’s investments have experienced a lower rate of change in the past.
Performance Summary
The Performance Summary does not form part of the Financial Statements.
• The investment environment grew considerably more challenging over the 12 months ended 31 March 2022. Early on, the global economy was continuing to
heal from the pandemic, bolstered by reopening economies, improving labour markets and sustained consumer demand.
• However, ongoing supply disruptions and labour shortages in some sectors and the subsequent surge in oil prices following Russia’s invasion of Ukraine
contributed to inflation readings that climbed to multidecade highs across much of the world and a more muted outlook for growth.
• To combat inflation, some central banks, including those in the United States and the United Kingdom, raised short-term interest rates. The European Central
Bank continued to reduce its bond purchases and seemed likely to raise rates later in 2022.
• Vanguard LifeStrategy 20% Equity Fund returned –1.02% for both share classes for the 12-month period, reflecting its global equity and fixed income
exposure.
• With monetary policy turning less accommodative, the Bloomberg Global Aggregate Float Adjusted and Scaled Index hedged in British pounds, a proxy for
global bonds, declined by close to 5%. US bonds, which had the largest country weighting in the index, held up a little better than the index overall, as did
Japan and China. The United Kingdom, Italy and France underperformed.
• Bonds on the bottom of the investment-grade ladder underperformed their higher-quality counterparts. By maturity, long-dated bonds dampened performance
the most.
• Global stocks slumped in the first quarter of 2022 but finished the 12 months up almost 12%, as measured by the FTSE Global All Cap Index. Energy
performed especially well as the price of oil had been recovering even before the conflict in Ukraine.
• UK stocks rose a little more, returning about 13%, as measured by the FTSE All-Share Index.
Total Returns
Total Returns
Periods Ended 31 March 2022
(Annualised for periods over one year)
One Year Five Years Ten Years
A GBP Gross Accumulation -1.02% 3.00% 4.48%
A GBP Gross Income -1.02 3.00 4.47
Returns are based on NAV with income reinvested.
All of the returns in this report represent past performance, which is not a guarantee of future results that may be achieved by the Fund. For performance data current to the most recent month-end,
which may be higher or lower than that cited, visit our website at http://global.vanguard.com. Note, too, that both investment returns and principal value can fluctuate widely, so an investor’s shares,
when sold, could be worth more or less than their original cost.
The Fund is not managed to a benchmark and there is not a benchmark against which the performance of the Fund can appropriately be assessed. However, investors may compare the performance
of the Fund against other funds within the Morningstar GBP Moderately Cautious Allocation category or the Investment Association Mixed Investment 0-35% Shares category.
7
Vanguard LifeStrategy 20% Equity Fund
For the Year Ended For the Year Ended For the Year Ended
A GBP Gross Accumulation 31 March 2022 31 March 2021 31 March 2020
Change in Net Assets Per Share
Opening Net Asset Value Per Share1 £170.22 £158.26 £154.48
Return Before Operating Charges*,2 (£1.34) £12.33 £4.14
Operating Charges2 (£0.40) (£0.37) (£0.36)
Return After Operating Charges*,2 (£1.74) £11.96 £3.78
Distributions3 (£2.16) (£1.97) (£2.42)
Retained Distributions on Accumulation Shares3 £2.16 £1.97 £2.42
Closing Net Asset Value Per Share1 £168.48 £170.22 £158.26
*Net of Direct Transaction Costs of:4 £0.00 £0.00 £0.00
Performance
Return After Operating Charges2,5 (1.02%) 7.56% 2.45%
Other Information
Closing Net Asset Value £2,033,485,950 £2,054,005,611 £1,407,725,555
Closing Number of Shares 12,069,765 12,066,661 8,895,267
Operating Charges2 0.22% 0.22% 0.22%
Direct Transaction Costs6 0.00% 0.00% 0.00%
Prices
Highest Share Price7 £180.53 £174.86 £167.23
Lowest Share Price7 £166.71 £157.52 £151.15
Performance
Return After Operating Charges2,5 (1.02%) 7.55% 2.45%
Other Information
Closing Net Asset Value £173,503,470 £180,055,458 £122,591,264
Closing Number of Shares 1,201,981 1,218,825 882,167
Operating Charges2 0.22% 0.22% 0.22%
Direct Transaction Costs6 0.00% 0.00% 0.00%
Prices
Highest Share Price7 £156.68 £153.53 £149.13
Lowest Share Price7 £144.69 £138.31 £134.79
1 The net asset value per share shown may diverge from the net asset value per share used for dealing purposes as at 31 March 2022 because of any adjustments for trade date accounting and any
adjustments in valuation to bid prices. The quoted price for underlying collective investment schemes may be inclusive of any applicable swing pricing adjustments.
2 Operating charges include indirect costs incurred in the maintenance and running of the Fund, as disclosed in the detailed expenses within the Statement of Total Return and Note 9.
3 The distribution on Income and Accumulation Shares includes distribution paid and payable in the financial year.
4 Direct transaction costs have been calculated against the average shares for the financial year.
5 Returns have been calculated using methods prescribed in the SORP 2014 as amended in 2017 regulations. They may differ slightly from returns shown in the Fund Performance Summary.
6 Direct transaction costs have been calculated against the average net asset value for the financial year.
7 Share prices represent the net asset value per share used for dealing purposes.
8
Vanguard LifeStrategy 20% Equity Fund
Cost Proceeds
(£) (£)
Largest Purchases Largest Sales
Vanguard Global Aggregate Bond UCITS ETF 99,639,695 Vanguard FTSE Developed World ex-U.K. Equity Index Fund 79,353,878
Vanguard Global Bond Index Fund 45,271,480 Vanguard FTSE U.K. All Share Index Unit Trust 29,655,562
Vanguard FTSE Developed World ex-U.K. Equity Index Fund 35,734,096 Vanguard Global Bond Index Fund 29,116,944
Vanguard U.K. Inflation-Linked Gilt Index Fund 26,684,096 Vanguard Euro Government Bond Index Fund 28,398,892
Vanguard U.K. Government Bond Index Fund 18,775,163 Vanguard U.S. Investment Grade Credit Index Fund 25,667,190
Total 226,104,530 Total 192,192,466
Total Purchases for theYear 273,839,819 Total Sales for theYear 276,917,048
9
Vanguard LifeStrategy 20% Equity Fund
Portfolio Statement
As at 31 March 2022
The holdings displayed are affiliated collective investment schemes, through which the Fund seeks to achieve its investment objective.
The prospectus and other information about the collective investment schemes are available at vanguard.co.uk.
Market % of
Value Total Net
Holding (£) Assets
Equity Collective Investment Schemes 20.22% (31 March 2021: 20.24%)
Vanguard FTSE Developed World ex-U.K. Equity Index Fund 555,452 296,184,156 13.42
Vanguard FTSE U.K. All Share Index Unit Trust 486,985 114,850,811 5.20
Vanguard Emerging Markets Stock Index Fund 139,361 35,308,345 1.60
446,343,312 20.22
Fixed Income Collective Investment Schemes 79.83% (31 March 2021: 79.75%)
Vanguard Global Bond Index Fund 2,760,438 424,074,984 19.21
Vanguard Global Aggregate Bond UCITS ETF 10,826,284 268,500,504 12.17
Vanguard U.K. Government Bond Index Fund 1,426,659 237,936,622 10.78
Vanguard U.K. Inflation-Linked Gilt Index Fund 859,946 187,129,393 8.48
Vanguard U.K. Investment Grade Bond Index Fund 1,625,558 163,280,329 7.40
Vanguard U.S. Investment Grade Credit Index Fund 1,042,094 127,498,697 5.78
Vanguard U.S. Government Bond Index Fund 1,149,262 125,456,305 5.68
Vanguard Euro Government Bond Index Fund 919,899 114,821,973 5.20
Vanguard Euro Investment Grade Bond Index Fund 487,833 57,730,287 2.62
Vanguard Japan Government Bond Index Fund 488,672 55,377,746 2.51
1,761,806,840 79.83
Portfolio of Investments 2,208,150,152 100.05
Net Other Liabilities (1,160,732) (0.05)
Net Assets Attributable to Shareholders 2,206,989,420 100.00
10
Vanguard LifeStrategy 20% Equity Fund
Balance Sheet
As at As at
31 March 2022 31 March 2021
Note1 (£) (£)
Assets:
Financial Assets 2,208,150,152 2,233,943,945
Current Assets
Debtors 12 3,180,090 2,853,819
Cash and Bank Balances 13 1,244,632 2,418,169
Total Assets 2,212,574,874 2,239,215,933
Liabilities:
Creditors
Distribution Payable 2,253,485 2,113,045
Other Creditors 14 3,331,969 3,041,819
Total Liabilities 5,585,454 5,154,864
Net Assets Attributable to Shareholders 2,206,989,420 2,234,061,069
1 See the Notes to the Financial Statements.
11
Vanguard LifeStrategy 20% Equity Fund
Distribution Table
For the year ended 31 March 2022
Final distribution payable 31 May 2022
12
Vanguard LifeStrategy 40% Equity Fund
Managed by Vanguard Global Advisers, LLC.
Investment Objective
The Fund’s investment objective is to hold investments that will pay out money and increase in value through exposure to a diversified portfolio composed of
approximately 40% by value of shares; and 60% by value of bonds and other similar fixed income investments.
Investment Strategy
The Fund will seek to achieve its investment objective by investing more than 90% of its assets in passive funds that track an index, which are managed or
operated by the ACD or its associates.
1 2 3 4 5 6 7
The Synthetic Risk and Reward Indicator (SRRI) measures the volatility of the Fund. The risk and reward category (which may range from 1 to 7) is calculated
using historical data and may not be a reliable indicator of the Fund’s future risk profile. The risk and reward category may shift over time and is not a target or
guarantee. The lowest category (i.e. category 1) does not mean “risk free”. The Fund appears in the middle range of the risk and reward indicator because the
values of the Fund’s investments have experienced a moderate rate of change in the past.
Performance Summary
The Performance Summary does not form part of the Financial Statements.
• The investment environment grew considerably more challenging over the 12 months ended 31 March 2022. Early on, the global economy was continuing to
heal from the pandemic, bolstered by reopening economies, improving labour markets and sustained consumer demand.
• However, ongoing supply disruptions and labour shortages in some sectors and the subsequent surge in oil prices following Russia’s invasion of Ukraine
contributed to inflation readings that climbed to multidecade highs across much of the world and a more muted outlook for growth.
• To combat inflation, some central banks, including those in the United States and the United Kingdom, raised short-term interest rates. The European Central
Bank continued to reduce its bond purchases and seemed likely to raise rates later in 2022.
• Vanguard LifeStrategy 40% Equity Fund returned 1.97% for both share classes for the 12-month period, reflecting its global equity and fixed income exposure.
• With monetary policy turning less accommodative, the Bloomberg Global Aggregate Float Adjusted and Scaled Index hedged in British pounds, a proxy for
global bonds, declined by close to 5%. U.S. bonds, which had the largest country weighting in the index, held up a little better than the index overall, as did
Japan and China. The United Kingdom, Italy and France underperformed.
• Bonds on the bottom of the investment-grade ladder underperformed their higher-quality counterparts. By maturity, long-dated bonds dampened performance
the most.
• Global stocks slumped in the first quarter of 2022 but finished the 12 months up almost 12%, as measured by the FTSE Global All Cap Index. Energy
performed especially well as the price of oil had been recovering even before the conflict in Ukraine. UK stocks rose a little more, returning about 13% as
measured by the FTSE All-Share Index, although returns varied significantly across industry sectors.
Total Returns
Total Returns
Periods Ended 31 March 2022
(Annualised for periods over one year)
One Year Five Years Ten Years
A GBP Accumulation 1.97% 4.46% 6.15%
A GBP Income 1.97 4.46 6.15
Returns are based on NAV with income reinvested.
All of the returns in this report represent past performance, which is not a guarantee of future results that may be achieved by the Fund. For performance data current to the most recent month-end,
which may be higher or lower than that cited, visit our website at http://global.vanguard.com. Note, too, that both investment returns and principal value can fluctuate widely, so an investor’s shares,
when sold, could be worth more or less than their original cost.
The Fund is not managed to a benchmark and there is not a benchmark against which the performance of the Fund can appropriately be assessed. However, investors may compare the performance
of the Fund against other funds within the Morningstar GBP Moderately Cautious Allocation category or the Investment Association Mixed Investment 20-60% Shares category.
13
Vanguard LifeStrategy 40% Equity Fund
For the Year Ended For the Year Ended For the Year Ended
A GBP Accumulation 31 March 2022 31 March 2021 31 March 2020
Change in Net Assets Per Share
Opening Net Asset Value Per Share1 £191.95 £168.18 £169.06
Return Before Operating Charges*,2 £4.23 £24.18 (£0.49)
Operating Charges2 (£0.44) (£0.41) (£0.39)
Return After Operating Charges*,2 £3.79 £23.77 (£0.88)
Distributions3 (£2.40) (£2.08) (£2.64)
Retained Distributions on Accumulation Shares3 £2.40 £2.08 £2.64
Closing Net Asset Value Per Share1 £195.74 £191.95 £168.18
*Net of Direct Transaction Costs of:4 £0.00 £0.00 £0.00
Performance
Return After Operating Charges2,5 1.97% 14.13% (0.52%)
Other Information
Closing Net Asset Value £7,600,286,137 £6,775,749,583 £4,578,616,162
Closing Number of Shares 38,829,225 35,298,955 27,224,779
Operating Charges2 0.22% 0.22% 0.22%
Direct Transaction Costs6 0.00% 0.00% 0.00%
Prices
Highest Share Price7 £207.54 £195.31 £185.57
Lowest Share Price7 £191.16 £165.91 £160.14
A GBP Income
Change in Net Assets Per Share
Opening Net Asset Value Per Share1 £166.02 £147.09 £150.22
Return Before Operating Charges*,2 £3.66 £21.11 (£0.44)
Operating Charges2 (£0.38) (£0.36) (£0.35)
Return After Operating Charges*,2 £3.28 £20.75 (£0.79)
Distributions3 (£2.07) (£1.82) (£2.34)
Closing Net Asset Value Per Share1 £167.23 £166.02 £147.09
*Net of Direct Transaction Costs of:4 £0.00 £0.00 £0.00
Performance
Return After Operating Charges2,5 1.98% 14.11% (0.53%)
Other Information
Closing Net Asset Value £672,317,096 £577,693,328 £390,500,820
Closing Number of Shares 4,020,244 3,479,580 2,654,882
Operating Charges2 0.22% 0.22% 0.22%
Direct Transaction Costs6 0.00% 0.00% 0.00%
Prices
Highest Share Price7 £179.52 £170.78 £164.88
Lowest Share Price7 £165.34 £145.07 £142.29
1 The net asset value per share shown may diverge from the net asset value per share used for dealing purposes as at 31 March 2022 because of any adjustments for trade date accounting and any
adjustments in valuation to bid prices. The quoted price for underlying collective investment schemes may be inclusive of any applicable swing pricing adjustments.
2 Operating charges include indirect costs incurred in the maintenance and running of the Fund, as disclosed in the detailed expenses within the Statement of Total Return and Note 9.
3 The distribution on Income and Accumulation Shares includes distribution paid and payable in the financial year.
4 Direct transaction costs have been calculated against the average shares for the financial year.
5 Returns have been calculated using methods prescribed in the SORP 2014 as amended in 2017 regulations. They may differ slightly from returns shown in the Fund Performance Summary.
6 Direct transaction costs have been calculated against the average net asset value for the financial year.
7 Share prices represent the net asset value per share used for dealing purposes.
14
Vanguard LifeStrategy 40% Equity Fund
Cost Proceeds
(£) (£)
Largest Purchases Largest Sales
Vanguard Global Bond Index Fund 356,036,835 Vanguard FTSE Developed World ex-U.K. Equity Index Fund 234,387,093
Vanguard FTSE Developed World ex-U.K. Equity Index Fund 163,388,313 Vanguard FTSE U.K. All Share Index Unit Trust 124,721,897
Vanguard U.K. Government Bond Index Fund 148,153,069 Vanguard U.S. Investment Grade Credit Index Fund 98,846,000
Vanguard Global Aggregate Bond UCITS ETF 131,741,843 Vanguard U.K. Government Bond Index Fund 60,480,294
Vanguard USD Corporate Bond UCITS ETF 126,833,044 Vanguard Global Bond Index Fund 54,528,709
Total 926,153,104 Total 572,963,993
Total Purchases for theYear 1,462,686,310 Total Sales for theYear 686,737,206
15
Vanguard LifeStrategy 40% Equity Fund
Portfolio Statement
As at 31 March 2022
The holdings displayed are affiliated collective investment schemes, through which the Fund seeks to achieve its investment objective.
The prospectus and other information about the collective investment schemes are available at vanguard.co.uk.
Market % of
Value Total Net
Holding (£) Assets
Equity Collective Investment Schemes 40.05% (31 March 2021: 40.24%)
Vanguard FTSE Developed World ex-U.K. Equity Index Fund 2,946,797 1,571,324,240 18.99
Vanguard FTSE U.K. All Share Index Unit Trust 3,575,362 843,215,772 10.19
Vanguard U.S. Equity Index Fund 620,846 468,637,869 5.67
Vanguard Emerging Markets Stock Index Fund 1,043,965 264,497,422 3.20
Vanguard FTSE Developed Europe ex-U.K. Equity Index Fund 287,410 92,713,036 1.12
Vanguard Japan Stock Index Fund 180,699 47,395,603 0.57
Vanguard Pacific ex-Japan Stock Index Fund 71,980 25,278,877 0.31
3,313,062,819 40.05
Fixed Income Collective Investment Schemes 60.03% (31 March 2021: 59.78%)
Vanguard Global Bond Index Fund 10,369,817 1,593,073,453 19.26
Vanguard U.K. Government Bond Index Fund 4,046,416 674,856,788 8.16
Vanguard U.K. Inflation-Linked Gilt Index Fund 2,420,746 526,768,619 6.37
Vanguard U.K. Investment Grade Bond Index Fund 4,668,962 468,977,205 5.67
Vanguard Global Aggregate Bond UCITS ETF 15,991,588 396,604,176 4.79
Vanguard U.S. Government Bond Index Fund 3,151,046 343,976,080 4.16
Vanguard Euro Government Bond Index Fund 2,523,716 315,010,763 3.81
Vanguard U.S. Investment Grade Credit Index Fund 1,823,979 223,161,075 2.70
Vanguard Euro Investment Grade Bond Index Fund 1,325,528 156,863,439 1.89
Vanguard Japan Government Bond Index Fund 1,322,642 149,885,660 1.81
Vanguard USD Corporate Bond UCITS ETF 2,505,254 117,227,962 1.41
4,966,405,220 60.03
Portfolio of Investments 8,279,468,039 100.08
Net Other Liabilities (6,864,806) (0.08)
Net Assets Attributable to Shareholders 8,272,603,233 100.00
16
Vanguard LifeStrategy 40% Equity Fund
Balance Sheet
As at As at
31 March 2022 31 March 2021
Note1 (£) (£)
Assets:
Financial Assets 8,279,468,039 7,354,656,098
Current Assets
Debtors 12 32,089,481 17,913,749
Cash and Bank Balances 13 3,819,305 7,125,530
Total Assets 8,315,376,825 7,379,695,377
Liabilities:
Creditors
Distribution Payable 8,334,999 6,337,370
Other Creditors 14 34,438,593 19,915,096
Total Liabilities 42,773,592 26,252,466
Net Assets Attributable to Shareholders 8,272,603,233 7,353,442,911
1 See the Notes to the Financial Statements.
17
Vanguard LifeStrategy 40% Equity Fund
Distribution Table
For the year ended 31 March 2022
Final distribution payable 31 May 2022
18
Vanguard LifeStrategy 60% Equity Fund
Managed by Vanguard Global Advisers, LLC.
Investment Objective
The Fund’s investment objective is to hold investments that will pay out money and increase in value through exposure to a diversified portfolio composed of
approximately 60% by value of shares and 40% by value of bonds and other similar fixed income investments.
Investment Strategy
The Fund will seek to achieve its investment objective by investing more than 90% of its assets in passive funds that track an index, which are managed or
operated by the ACD or its associates.
1 2 3 4 5 6 7
The Synthetic Risk and Reward Indicator (SRRI) measures the volatility of the Fund. The risk and reward category (which may range from 1 to 7) is calculated
using historical data and may not be a reliable indicator of the Fund’s future risk profile. The risk and reward category may shift over time and is not a target or
guarantee. The lowest category (i.e. category 1) does not mean “risk free”. The Fund appears in the middle range of the risk and reward indicator because the
values of the Fund’s investments have experienced a moderate rate of change in the past.
Performance Summary
The Performance Summary does not form part of the Financial Statements.
• The investment environment grew considerably more challenging over the 12 months ended 31 March 2022. Early on, the global economy was continuing to
heal from the pandemic, bolstered by reopening economies, improving labour markets and sustained consumer demand. However, ongoing supply
disruptions and labour shortages in some sectors and the subsequent surge in oil prices following Russia’s invasion of Ukraine contributed to inflation
readings that climbed to multidecade highs across much of the world and a more muted outlook for growth.
• To combat inflation, some central banks, including those in the United States and the United Kingdom, raised short-term interest rates. The European Central
Bank continued to reduce its bond purchases and seemed likely to raise rates later in 2022.
• Vanguard LifeStrategy 60% Equity Fund returned 5.06% for both share classes for the 12-month period, reflecting its global equity and fixed income
exposure.
• Global stocks slumped in the first quarter of 2022, but finished the 12 months up almost 12%, as measured by the FTSE Global All Cap Index. Energy
performed especially well as the price of oil had been recovering even before the conflict in Ukraine.
• UK stocks rose a little more, about 13% as measured by the FTSE All-Share Index, although returns varied significantly across industry sectors. Energy,
utilities, health care and basic materials were up more than 30%, while consumer discretionary and technology finished in negative territory.
• With monetary policy turning less accommodative, the Bloomberg Global Aggregate Float Adjusted and Scaled Index hedged in British pounds, a proxy for
global bonds, declined by close to 5%. US bonds, which had the largest country weighting in the index, held up a little better than the index overall, as did
Japan and China. The United Kingdom, Italy and France underperformed.
Total Returns
Total Returns
Periods Ended 31 March 2022
(Annualised for periods over one year)
One Year Five Years Ten Years
A GBP Accumulation 5.06% 6.05% 7.87%
A GBP Income 5.06 6.05 7.86
Returns are based on NAV with income reinvested.
All of the returns in this report represent past performance, which is not a guarantee of future results that may be achieved by the Fund. For performance data current to the most recent month-end,
which may be higher or lower than that cited, visit our website at http://global.vanguard.com. Note, too, that both investment returns and principal value can fluctuate widely, so an investor’s shares,
when sold, could be worth more or less than their original cost.
The Fund is not managed to a benchmark and there is not a benchmark against which the performance of the Fund can appropriately be assessed. However, investors may compare the performance
of the Fund against other funds within the Morningstar GBP Moderate Allocation category or the Investment Association Mixed Investment 40-85% Shares category.
19
Vanguard LifeStrategy 60% Equity Fund
For the Year Ended For the Year Ended For the Year Ended
A GBP Accumulation 31 March 2022 31 March 2021 31 March 2020
Change in Net Assets Per Share
Opening Net Asset Value Per Share1 £215.79 £177.80 £184.25
Return Before Operating Charges*,2 £11.42 £38.44 (£6.02)
Operating Charges2 (£0.50) (£0.45) (£0.43)
Return After Operating Charges*,2 £10.92 £37.99 (£6.45)
Distributions3 (£3.04) (£2.62) (£3.25)
Retained Distributions on Accumulation Shares3 £3.04 £2.62 £3.25
Closing Net Asset Value Per Share1 £226.71 £215.79 £177.80
*Net of Direct Transaction Costs of:4 £0.00 £0.00 £0.00
Performance
Return After Operating Charges2,5 5.06% 21.37% (3.50%)
Other Information
Closing Net Asset Value £12,883,537,531 £10,342,910,779 £6,628,718,541
Closing Number of Shares 56,829,180 47,930,301 37,282,689
Operating Charges2 0.22% 0.22% 0.22%
Direct Transaction Costs6 0.00% 0.00% 0.00%
Prices
Highest Share Price7 £238.12 £218.08 £205.22
Lowest Share Price7 £216.70 £173.84 £168.61
A GBP Income
Change in Net Assets Per Share
Opening Net Asset Value Per Share1 £185.16 £154.50 £163.09
Return Before Operating Charges*,2 £9.80 £33.33 (£5.33)
Operating Charges2 (£0.43) (£0.39) (£0.38)
Return After Operating Charges*,2 £9.37 £32.94 (£5.71)
Distributions3 (£2.61) (£2.28) (£2.88)
Closing Net Asset Value Per Share1 £191.92 £185.16 £154.50
*Net of Direct Transaction Costs of:4 £0.00 £0.00 £0.00
Performance
Return After Operating Charges2,5 5.06% 21.32% (3.50%)
Other Information
Closing Net Asset Value £1,117,189,733 £898,729,546 £553,009,293
Closing Number of Shares 5,820,987 4,853,899 3,579,362
Operating Charges2 0.22% 0.22% 0.22%
Direct Transaction Costs6 0.00% 0.00% 0.00%
Prices
Highest Share Price7 £204.34 £189.43 £181.66
Lowest Share Price7 £185.95 £151.00 £149.24
1 The net asset value per share shown may diverge from the net asset value per share used for dealing purposes as at 31 March 2022 because of any adjustments for trade date accounting and any
adjustments in valuation to bid prices. The quoted price for underlying collective investment schemes may be inclusive of any applicable swing pricing adjustments.
2 Operating charges include indirect costs incurred in the maintenance and running of the Fund, as disclosed in the detailed expenses within the Statement of Total Return and Note 9.
3 The distribution on Income and Accumulation Shares includes distribution paid and payable in the financial year.
4 Direct transaction costs have been calculated against the average shares for the financial year.
5 Returns have been calculated using methods prescribed in the SORP 2014 as amended in 2017 regulations. They may differ slightly from returns shown in the Fund Performance Summary.
6 Direct transaction costs have been calculated against the average net asset value for the financial year.
7 Share prices represent the net asset value per share used for dealing purposes.
20
Vanguard LifeStrategy 60% Equity Fund
Cost Proceeds
(£) (£)
Largest Purchases Largest Sales
Vanguard Global Bond Index Fund 864,199,894 Vanguard FTSE Developed World ex-U.K. Equity Index Fund 159,143,543
Vanguard FTSE Developed World ex-U.K. Equity Index Fund 344,510,575 Vanguard Global Bond Index Fund 147,077,068
Vanguard U.S. Equity Index Fund 330,828,626 Vanguard FTSE U.K. All Share Index Unit Trust 130,943,000
Vanguard FTSE U.K. All Share Index Unit Trust 319,470,178 Vanguard U.S. Equity Index Fund 79,537,194
Vanguard U.K. Government Bond Index Fund 248,540,637 Vanguard U.K. Government Bond Index Fund 65,672,399
Total 2,107,549,910 Total 582,373,204
Total Purchases for theYear 2,808,830,167 Total Sales for theYear 631,395,193
21
Vanguard LifeStrategy 60% Equity Fund
Portfolio Statement
As at 31 March 2022
The holdings displayed are affiliated collective investment schemes, through which the Fund seeks to achieve its investment objective.
The prospectus and other information about the collective investment schemes are available at vanguard.co.uk.
Market % of
Value Total Net
Holding (£) Assets
Equity Collective Investment Schemes 60.00% (31 March 2021: 60.01%)
Vanguard FTSE Developed World ex-U.K. Equity Index Fund 5,026,939 2,680,520,893 19.15
Vanguard U.S. Equity Index Fund 2,870,301 2,166,611,773 15.47
Vanguard FTSE U.K. All Share Index Unit Trust 8,969,747 2,115,431,482 15.11
Vanguard Emerging Markets Stock Index Fund 2,615,496 662,658,242 4.73
Vanguard FTSE Developed Europe ex-U.K. Equity Index Fund 1,360,902 439,000,728 3.14
Vanguard Japan Stock Index Fund 841,246 220,651,378 1.58
Vanguard Pacific ex-Japan Stock Index Fund 328,593 115,399,282 0.82
8,400,273,778 60.00
Fixed Income Collective Investment Schemes 40.08% (31 March 2021: 40.01%)
Vanguard Global Bond Index Fund 17,642,699 2,710,377,258 19.36
Vanguard U.K. Government Bond Index Fund 4,418,018 736,832,196 5.26
Vanguard U.K. Inflation-Linked Gilt Index Fund 2,662,074 579,283,040 4.14
Vanguard U.K. Investment Grade Bond Index Fund 5,039,098 506,155,730 3.62
Vanguard Global Aggregate Bond UCITS ETF 17,481,196 433,547,646 3.10
Vanguard U.S. Investment Grade Credit Index Fund 1,371,665 167,821,181 1.20
Vanguard U.S. Government Bond Index Fund 1,531,965 167,233,082 1.19
Vanguard Euro Government Bond Index Fund 1,246,517 155,590,480 1.11
Vanguard Euro Investment Grade Bond Index Fund 656,471 77,686,931 0.55
Vanguard Japan Government Bond Index Fund 679,533 77,006,704 0.55
5,611,534,248 40.08
Portfolio of Investments 14,011,808,026 100.08
Net Other Liabilities (11,080,762) (0.08)
Net Assets Attributable to Shareholders 14,000,727,264 100.00
22
Vanguard LifeStrategy 60% Equity Fund
Balance Sheet
As at As at
31 March 2022 31 March 2021
Note1 (£) (£)
Assets:
Financial Assets 14,011,808,026 11,243,787,300
Current Assets
Debtors 12 66,653,809 38,295,224
Cash and Bank Balances 13 6,661,858 11,051,140
Total Assets 14,085,123,693 11,293,133,664
Liabilities:
Creditors
Distribution Payable 15,210,804 11,065,836
Other Creditors 14 69,185,625 40,427,503
Total Liabilities 84,396,429 51,493,339
Net Assets Attributable to Shareholders 14,000,727,264 11,241,640,325
1 See the Notes to the Financial Statements.
23
Vanguard LifeStrategy 60% Equity Fund
Distribution Table
For the year ended 31 March 2022
Final distribution payable 31 May 2022
24
Vanguard LifeStrategy 80% Equity Fund
Managed by Vanguard Global Advisers, LLC.
Investment Objective
The Fund’s investment objective is to hold investments that will pay out money and increase in value through exposure to a diversified portfolio composed of
approximately 80% by value of shares and 20% by value of bonds and other similar fixed income investments.
Investment Strategy
The Fund will seek to achieve its investment objective by investing more than 90% of its assets in passive funds that track an index, which are managed or
operated by the ACD or its associates.
1 2 3 4 5 6 7
The Synthetic Risk and Reward Indicator (SRRI) measures the volatility of the Fund. The risk and reward category (which may range from 1 to 7) is calculated
using historical data and may not be a reliable indicator of the Fund’s future risk profile. The risk and reward category may shift over time and is not a target or
guarantee. The lowest category (i.e. category 1) does not mean “risk free”. The Fund appears in the middle range of the risk and reward indicator because the
values of the Fund’s investments have experienced a moderate rate of change in the past.
Performance Summary
The Performance Summary does not form part of the Financial Statements.
• The investment environment grew considerably more challenging over the 12 months ended 31 March 2022. Early on, the global economy was continuing to
heal from the pandemic, bolstered by reopening economies, improving labour markets and sustained consumer demand.
• However, ongoing supply disruptions and labour shortages in some sectors and the subsequent surge in oil prices following Russia’s invasion of Ukraine
contributed to inflation readings that climbed to multidecade highs across much of the world and a more muted outlook for growth.
• To combat inflation, some central banks, including those in the United States and the United Kingdom, raised short-term interest rates. The European Central
Bank continued to reduce its bond purchases and seemed likely to raise rates later in 2022.
• Vanguard LifeStrategy 80% Equity Fund returned 8.42% for both share classes for the 12-month period, reflecting its global equity and fixed income
exposure.
• Global stocks slumped in the first quarter of 2022, but finished the 12 months up almost 12%, as measured by the FTSE Global All Cap Index. Energy
performed especially well as the price of oil had been recovering even before the conflict in Ukraine.
• UK stocks rose a little more, returning about 13%, as measured by the FTSE All-Share Index, although returns varied significantly across industry sectors.
Energy, utilities, health care and basic materials were up more than 30%, while consumer discretionary and technology finished in negative territory.
• With monetary policy turning less accommodative, the Bloomberg Global Aggregate Float Adjusted and Scaled Index hedged in British pounds, a proxy for
global bonds, declined by close to 5%.
Total Returns
Total Returns
Periods Ended 31 March 2022
(Annualised for periods over one year)
One Year Five Years Ten Years
A GBP Accumulation 8.42% 7.60% 9.55%
A GBP Income 8.42 7.60 9.55
Returns are based on NAV with income reinvested.
All of the returns in this report represent past performance, which is not a guarantee of future results that may be achieved by the Fund. For performance data current to the most recent month-end,
which may be higher or lower than that cited, visit our website at http://global.vanguard.com. Note, too, that both investment returns and principal value can fluctuate widely, so an investor’s shares,
when sold, could be worth more or less than their original cost.
The Fund is not managed to a benchmark and there is not a benchmark against which the performance of the Fund can appropriately be assessed. However, investors may compare the performance
of the Fund against other funds within the Morningstar GBP Moderately Adventurous Allocation category or the Investment Association Mixed Investment 40-85% Shares category.
25
Vanguard LifeStrategy 80% Equity Fund
For the Year Ended For the Year Ended For the Year Ended
A GBP Accumulation 31 March 2022 31 March 2021 31 March 2020
Change in Net Assets Per Share
Opening Net Asset Value Per Share1 £240.30 £186.56 £199.51
Return Before Operating Charges*,2 £20.80 £54.23 (£12.67)
Operating Charges2 (£0.57) (£0.49) (£0.28)
Return After Operating Charges*,2 £20.23 £53.74 (£12.95)
Distributions3 (£3.94) (£3.24) (£4.00)
Retained Distributions on Accumulation Shares3 £3.94 £3.24 £4.00
Closing Net Asset Value Per Share1 £260.53 £240.30 £186.56
*Net of Direct Transaction Costs of:4 £0.00 £0.00 £0.00
Performance
Return After Operating Charges2,5 8.42% 28.81% (6.49%)
Other Information
Closing Net Asset Value £7,355,168,831 £5,257,882,153 £3,096,898,699
Closing Number of Shares 28,231,766 21,880,460 16,599,896
Operating Charges2 0.22% 0.22% 0.22%
Direct Transaction Costs6 0.00% 0.00% 0.00%
Prices
Highest Share Price7 £271.05 £241.83 £225.47
Lowest Share Price7 £241.85 £180.80 £174.60
A GBP Income
Change in Net Assets Per Share
Opening Net Asset Value Per Share1 £204.15 £160.77 £175.69
Return Before Operating Charges*,2 £17.69 £46.59 (£11.22)
Operating Charges2 (£0.48) (£0.42) (£0.18)
Return After Operating Charges*,2 £17.21 £46.17 (£11.40)
Distributions3 (£3.35) (£2.79) (£3.52)
Closing Net Asset Value Per Share1 £218.01 £204.15 £160.77
*Net of Direct Transaction Costs of:4 £0.00 £0.00 £0.00
Performance
Return After Operating Charges2,5 8.43% 28.72% (6.49%)
Other Information
Closing Net Asset Value £498,286,791 £353,723,347 £192,768,757
Closing Number of Shares 2,285,660 1,732,690 1,199,036
Operating Charges2 0.22% 0.22% 0.22%
Direct Transaction Costs6 0.00% 0.00% 0.00%
Prices
Highest Share Price7 £230.29 £208.25 £198.56
Lowest Share Price7 £205.48 £155.70 £153.76
1 The net asset value per share shown may diverge from the net asset value per share used for dealing purposes as at 31 March 2022 because of any adjustments for trade date accounting and any
adjustments in valuation to bid prices. The quoted price for underlying collective investment schemes may be inclusive of any applicable swing pricing adjustments.
2 Operating charges include indirect costs incurred in the maintenance and running of the Fund, as disclosed in the detailed expenses within the Statement of Total Return and Note 9.
3 The distribution on Income and Accumulation Shares includes distribution paid and payable in the financial year.
4 Direct transaction costs have been calculated against the average shares for the financial year.
5 Returns have been calculated using methods prescribed in the SORP 2014 as amended in 2017 regulations. They may differ slightly from returns shown in the Fund Performance Summary.
6 Direct transaction costs have been calculated against the average net asset value for the financial year.
7 Share prices represent the net asset value per share used for dealing purposes.
26
Vanguard LifeStrategy 80% Equity Fund
Cost Proceeds
(£) (£)
Largest Purchases Largest Sales
Vanguard Global Bond Index Fund 424,905,122 Vanguard FTSE U.K. All Share Index Unit Trust 56,500,000
Vanguard FTSE U.K. All Share Index Unit Trust 337,142,342 Vanguard Global Bond Index Fund 45,000,000
Vanguard FTSE Developed World ex-U.K. Equity Index Fund 272,449,657 Vanguard U.K. Gilt UCITS ETF 43,000,000
Vanguard U.S. Equity Index Fund 267,321,635 Vanguard FTSE Developed World ex-U.K. Equity Index Fund 10,000,000
Vanguard S&P 500 UCITS ETF 155,485,822 Vanguard U.K. Government Bond Index Fund 6,395,000
Total 1,457,304,578 Total 160,895,000
Total Purchases for theYear 1,890,942,430 Total Sales for theYear 163,415,633
27
Vanguard LifeStrategy 80% Equity Fund
Portfolio Statement
As at 31 March 2022
The holdings displayed are affiliated collective investment schemes, through which the Fund seeks to achieve its investment objective.
The prospectus and other information about the collective investment schemes are available at vanguard.co.uk.
Market % of
Value Total Net
Holding (£) Assets
Equity Collective Investment Schemes 79.72% (31 March 2021: 79.91%)
Vanguard FTSE U.K. All Share Index Unit Trust 6,417,107 1,513,414,962 19.27
Vanguard U.S. Equity Index Fund 2,003,395 1,512,238,437 19.26
Vanguard FTSE Developed World ex-U.K. Equity Index Fund 2,830,013 1,509,051,467 19.22
Vanguard Emerging Markets Stock Index Fund 1,926,434 488,078,538 6.21
Vanguard S&P 500 UCITS ETF 7,325,514 462,819,594 5.89
Vanguard FTSE Developed Europe ex-U.K. Equity Index Fund 1,244,280 401,380,909 5.11
Vanguard Japan Stock Index Fund 768,777 201,643,165 2.57
Vanguard Pacific ex-Japan Stock Index Fund 308,845 108,463,892 1.38
Vanguard FTSE 100 UCITS ETF 1,589,548 54,903,147 0.70
Vanguard FTSE 250 UCITS ETF 238,871 8,302,869 0.11
6,260,296,980 79.72
Fixed Income Collective Investment Schemes 20.25% (31 March 2021: 20.09%)
Vanguard Global Bond Index Fund 7,241,272 1,112,447,695 14.17
Vanguard U.K. Government Bond Index Fund 1,099,274 183,335,702 2.33
Vanguard U.K. Inflation-Linked Gilt Index Fund 772,525 168,105,924 2.14
Vanguard U.K. Investment Grade Bond Index Fund 1,261,234 126,685,574 1.61
1,590,574,895 20.25
Portfolio of Investments 7,850,871,875 99.97
Net Other Assets 2,583,748 0.03
Net Assets Attributable to Shareholders 7,853,455,623 100.00
28
Vanguard LifeStrategy 80% Equity Fund
Balance Sheet
As at As at
31 March 2022 31 March 2021
Note1 (£) (£)
Assets:
Financial Assets 7,850,871,875 5,611,476,810
Current Assets
Debtors 12 34,403,187 21,153,409
Cash and Bank Balances 13 3,180,981 7,042,693
Total Assets 7,888,456,043 5,639,672,912
Liabilities:
Creditors
Distribution Payable 7,651,042 4,828,186
Other Creditors 14 27,349,378 23,239,226
Total Liabilities 35,000,420 28,067,412
Net Assets Attributable to Shareholders 7,853,455,623 5,611,605,500
1 See the Notes to the Financial Statements.
29
Vanguard LifeStrategy 80% Equity Fund
Distribution Table
For the year ended 31 March 2022
Final distribution payable 31 May 2022
30
Vanguard LifeStrategy 100% Equity Fund
Managed by Vanguard Global Advisers, LLC.
Investment Objective
The Fund’s investment objective is to hold investments that will pay out money and increase in value through exposure to a diversified portfolio composed of
approximately 100% by value of shares.
Investment Strategy
The Fund will seek to achieve its investment objective by investing more than 90% of its assets in passive funds that track an index, which are managed or
operated by the ACD or its associates.
1 2 3 4 5 6 7
The Synthetic Risk and Reward Indicator (SRRI) measures the volatility of the Fund. The risk and reward category (which may range from 1 to 7) is calculated
using historical data and may not be a reliable indicator of the Fund’s future risk profile. The risk and reward category may shift over time and is not a target or
guarantee. The lowest category (i.e. category 1) does not mean “risk free”. The Fund appears in the higher range of the risk and reward indicator because the
values of the Fund’s investments have experienced a higher rate of change in the past.
Performance Summary
The Performance Summary does not form part of the Financial Statements.
• The investment environment grew considerably more challenging over the 12 months ended 31 March 2022. Early on, the global economy was continuing to
heal from the pandemic, bolstered by reopening economies, improving labour markets and sustained consumer demand.
• However, ongoing supply disruptions and labour shortages in some sectors and the subsequent surge in oil prices following Russia’s invasion of Ukraine
contributed to inflation readings that climbed to multidecade highs across much of the world and a more muted outlook for growth.
• To combat inflation, some central banks, including those in the United States and the United Kingdom, raised short-term interest rates. The European Central
Bank continued to reduce its bond purchases and seemed likely to raise rates later in 2022.
• Vanguard LifeStrategy 100% Equity Fund returned 11.97% for both share classes for the 12-month period, reflecting its global equity exposure.
• Global stocks slumped in the first quarter of 2022, but finished the 12 months up almost 12%, as measured by the FTSE Global All Cap Index. Energy
performed especially well as the price of oil had been recovering even before the conflict in Ukraine.
• UK stocks rose a little more, returning about 13%, as measured by the FTSE All-Share Index, although returns varied significantly across industry sectors.
Energy, utilities, health care and basic materials were up more than 30%, while consumer discretionary and technology finished in negative territory.
Total Returns
Total Returns
Periods Ended 31 March 2022
(Annualised for periods over one year)
One Year Five Years Ten Years
A GBP Accumulation 11.97% 9.13% 11.20%
A GBP Income 11.97 9.13 11.20
Returns are based on NAV with income reinvested.
All of the returns in this report represent past performance, which is not a guarantee of future results that may be achieved by the Fund. For performance data current to the most recent month-end,
which may be higher or lower than that cited, visit our website at http://global.vanguard.com. Note, too, that both investment returns and principal value can fluctuate widely, so an investor’s shares,
when sold, could be worth more or less than their original cost.
The Fund is not managed to a benchmark and there is not a benchmark against which the performance of the Fund can appropriately be assessed. However, investors may compare the performance
of the Fund against other funds within the Morningstar Global Large Cap Blend Equity category or the Investment Association Global category.
31
Vanguard LifeStrategy 100% Equity Fund
For the Year Ended For the Year Ended For the Year Ended
A GBP Accumulation 31 March 2022 31 March 2021 31 March 2020
Change in Net Assets Per Share
Opening Net Asset Value Per Share1 £265.14 £194.52 £214.66
Return Before Operating Charges*,2 £32.36 £71.14 (£19.64)
Operating Charges2 (£0.63) (£0.52) (£0.50)
Return After Operating Charges*,2 £31.73 £70.62 (£20.14)
Distributions3 (£5.46) (£3.92) (£4.92)
Retained Distributions on Accumulation Shares3 £5.46 £3.92 £4.92
Closing Net Asset Value Per Share1 £296.87 £265.14 £194.52
*Net of Direct Transaction Costs of:4 £0.00 £0.00 £0.00
Performance
Return After Operating Charges2,5 11.97% 36.30% (9.38%)
Other Information
Closing Net Asset Value £3,946,605,886 £2,567,604,450 £1,405,083,321
Closing Number of Shares 13,293,952 9,684,139 7,223,167
Operating Charges2 0.22% 0.22% 0.22%
Direct Transaction Costs6 0.00% 0.00% 0.00%
Prices
Highest Share Price7 £306.01 £266.40 £246.30
Lowest Share Price7 £267.36 £186.87 £179.49
A GBP Income
Change in Net Assets Per Share
Opening Net Asset Value Per Share1 £222.85 £166.13 £188.07
Return Before Operating Charges*,2 £27.24 £60.51 (£17.19)
Operating Charges2 (£0.53) (£0.45) (£0.44)
Return After Operating Charges*,2 £26.71 £60.06 (£17.63)
Distributions3 (£4.59) (£3.34) (£4.31)
Closing Net Asset Value Per Share1 £244.97 £222.85 £166.13
*Net of Direct Transaction Costs of:4 £0.00 £0.00 £0.00
Performance
Return After Operating Charges2,5 11.99% 36.15% (9.37%)
Other Information
Closing Net Asset Value £315,131,860 £242,682,590 £159,588,961
Closing Number of Shares 1,286,433 1,089,012 960,629
Operating Charges2 0.22% 0.22% 0.22%
Direct Transaction Costs6 0.00% 0.00% 0.00%
Prices
Highest Share Price7 £257.23 £227.26 £215.80
Lowest Share Price7 £224.74 £159.43 £157.27
1 The net asset value per share shown may diverge from the net asset value per share used for dealing purposes as at 31 March 2022 because of any adjustments for trade date accounting and any
adjustments in valuation to bid prices. The quoted price for underlying collective investment schemes may be inclusive of any applicable swing pricing adjustments.
2 Operating charges include indirect costs incurred in the maintenance and running of the Fund, as disclosed in the detailed expenses within the Statement of Total Return and Note 9.
3 The distribution on Income and Accumulation Shares includes distribution paid and payable in the financial year.
4 Direct transaction costs have been calculated against the average shares for the financial year.
5 Returns have been calculated using methods prescribed in the SORP 2014 as amended in 2017 regulations. They may differ slightly from returns shown in the Fund Performance Summary.
6 Direct transaction costs have been calculated against the average net asset value for the financial year.
7 Share prices represent the net asset value per share used for dealing purposes.
32
Vanguard LifeStrategy 100% Equity Fund
Cost Proceeds
(£) (£)
Largest Purchases Largest Sales
Vanguard FTSE U.K. All Share Index Unit Trust 251,978,888 Vanguard FTSE U.K. All Share Index Unit Trust 42,000,000
Vanguard U.S. Equity Index Fund 202,040,960 Vanguard U.S. Equity Index Fund 27,388,996
Vanguard S&P 500 UCITS ETF 194,498,963 Vanguard FTSE Developed World ex-U.K. Equity Index Fund 3,739,361
Vanguard FTSE Developed World ex-U.K. Equity Index Fund 193,874,842 Vanguard FTSE Developed Europe ex-U.K. Equity Index Fund 657,644
Vanguard Emerging Markets Stock Index Fund 113,178,285 Vanguard FTSE 100 UCITS ETF 500,801
Total 955,571,938 Total 74,286,802
Total Purchases for theYear 1,153,191,784 Total Sales for theYear 74,596,648
33
Vanguard LifeStrategy 100% Equity Fund
Portfolio Statement
As at 31 March 2022
The holdings displayed are affiliated collective investment schemes, through which the Fund seeks to achieve its investment objective.
The prospectus and other information about the collective investment schemes are available at vanguard.co.uk.
Market % of
Value Total Net
Holding (£) Assets
Equity Collective Investment Schemes 100.09% (31 March 2021: 99.96%)
Vanguard FTSE U.K. All Share Index Unit Trust 3,544,047 835,830,529 19.61
Vanguard U.S. Equity Index Fund 1,089,968 822,748,757 19.31
Vanguard FTSE Developed World ex-U.K. Equity Index Fund 1,533,634 817,781,425 19.19
Vanguard S&P 500 UCITS ETF 10,644,803 672,529,382 15.78
Vanguard Emerging Markets Stock Index Fund 1,327,242 336,268,042 7.89
Vanguard FTSE Developed Europe ex-U.K. Equity Index Fund 930,175 300,056,589 7.04
Vanguard FTSE 100 UCITS ETF 5,903,762 203,916,530 4.78
Vanguard Japan Stock Index Fund 585,807 153,651,946 3.61
Vanguard Pacific ex-Japan Stock Index Fund 243,730 85,596,034 2.01
Vanguard FTSE 250 UCITS ETF 1,065,483 37,034,910 0.87
4,265,414,144 100.09
Portfolio of Investments 4,265,414,144 100.09
Net Other Liabilities (3,676,398) (0.09)
Net Assets Attributable to Shareholders 4,261,737,746 100.00
34
Vanguard LifeStrategy 100% Equity Fund
Balance Sheet
As at As at
31 March 2022 31 March 2021
Note1 (£) (£)
Assets:
Financial Assets 4,265,414,144 2,809,246,918
Current Assets
Debtors 12 13,395,484 14,678,890
Cash and Bank Balances 13 2,320,094 4,275,749
Total Assets 4,281,129,722 2,828,201,557
Liabilities:
Creditors
Distribution Payable 5,901,492 3,636,365
Other Creditors 14 13,490,484 14,278,152
Total Liabilities 19,391,976 17,914,517
Net Assets Attributable to Shareholders 4,261,737,746 2,810,287,040
1 See the Notes to the Financial Statements.
35
Vanguard LifeStrategy 100% Equity Fund
Distribution Table
For the year ended 31 March 2022
Final distribution payable 31 May 2022
36
Vanguard Target Retirement 2015 Fund
Managed by Vanguard Global Advisers, LLC.
Investment Objective
The Fund’s investment objective is to hold investments that will pay out money and have some increase in value for investors planning to retire in or within
approximately five years after 2015.
Investment Strategy
The Fund will seek to achieve its investment objective by investing more than 80% of its assets in passive funds that track an index, which are managed or
operated by the ACD or its associates.
1 2 3 4 5 6 7
The Synthetic Risk and Reward Indicator (SRRI) measures the volatility of the Fund. The risk and reward category (which may range from 1 to 7) is calculated
using historical data and may not be a reliable indicator of the Fund’s future risk profile. The risk and reward category may shift over time and is not a target or
guarantee. The lowest category (i.e. category 1) does not mean “risk free”. The Fund appears in the middle range of the risk and reward indicator because the
values of the Fund’s investments have experienced a moderate rate of change in the past.
Performance Summary
The Performance Summary does not form part of the Financial Statements.
• The investment environment grew considerably more challenging over the 12 months ended 31 March 2022. Early on, the global economy was continuing to
heal from the pandemic, bolstered by reopening economies, improving labour markets and sustained consumer demand.
• However, ongoing supply disruptions and labour shortages in some sectors and the subsequent surge in oil prices following Russia’s invasion of Ukraine
contributed to inflation readings that climbed to multidecade highs across much of the world and a more muted outlook for growth.
• To combat inflation, some central banks, including those in the United States and the United Kingdom, raised short-term interest rates. The European Central
Bank continued to reduce its bond purchases and seemed likely to raise rates later in 2022.
• Vanguard Target Retirement 2015 Fund returned 2.31% for the 12-month period, reflecting its global equity and fixed income exposure.
• With monetary policy turning less accommodative, the Bloomberg Global Aggregate Float Adjusted and Scaled Index hedged in British pounds, a proxy for
global bonds, declined by close to 5%. US bonds, which had the largest country weighting in the index, held up a little better than the index overall, as did
Japan and China. The United Kingdom, Italy and France underperformed.
• Global stocks slumped in the first quarter of 2022, but finished the 12 months up almost 12%, as measured by the FTSE Global All Cap Index. Energy
performed especially well as the price of oil had been recovering even before the conflict in Ukraine.
• UK stocks rose a little more, returning about 13%, as measured by the FTSE All-Share Index, although returns varied significantly across industry sectors.
Total Returns
Total Returns
Periods Ended 31 March 2022
(Annualised for periods over one year)
Ten Years or
One Year Five Years Since Inception1
A GBP Accumulation 2.31% 4.16% 6.07%
Returns are based on NAV with income reinvested.
All of the returns in this report represent past performance, which is not a guarantee of future results that may be achieved by the Fund. For performance data current to the most recent month-end,
which may be higher or lower than that cited, visit our website at http://global.vanguard.com. Note, too, that both investment returns and principal value can fluctuate widely, so an investor’s shares,
when sold, could be worth more or less than their original cost.
The Fund is not managed to a benchmark and there is not a benchmark against which the performance of the Fund can appropriately be assessed. However, investors may compare the performance
of the Fund against other funds within the Morningstar EEA Fund Target Date 2011-2015 category or the Investment Association Mixed Investment 20-60% Shares category.
1 Since-inception returns: A GBP Accumulation, 17 December 2015.
37
Vanguard Target Retirement 2015 Fund
For the Year Ended For the Year Ended For the Year Ended
A GBP Accumulation 31 March 2022 31 March 2021 31 March 2020
Change in Net Assets Per Share
Opening Net Asset Value Per Share1 £141.59 £125.66 £126.64
Return Before Operating Charges*,2 £3.83 £48.97 (£0.66)
Operating Charges2 (£0.35) (£33.04) (£0.32)
Return After Operating Charges*,2 £3.48 £15.93 (£0.98)
Distributions3 (£2.65) (£1.15) (£1.40)
Retained Distributions on Accumulation Shares3 £2.65 £1.15 £1.40
Closing Net Asset Value Per Share1 £145.07 £141.59 £125.66
*Net of Direct Transaction Costs of:4 £0.00 £0.00 £0.00
Performance
Return After Operating Charges2,5 2.46% 12.68% (0.77%)
Other Information
Closing Net Asset Value £8,707,475 £6,546,837 £4,242,413
Closing Number of Shares 60,021 46,238 33,762
Operating Charges2 0.24% 0.24% 0.24%
Direct Transaction Costs6 0.00% 0.00% 0.00%
Prices
Highest Share Price7 £150.98 £143.33 £137.46
Lowest Share Price7 £141.97 £123.96 £120.96
1 The net asset value per share shown may diverge from the net asset value per share used for dealing purposes as at 31 March 2022 because of any adjustments for trade date accounting and any
adjustments in valuation to bid prices. The quoted price for underlying collective investment schemes may be inclusive of any applicable swing pricing adjustments.
2 Operating charges include indirect costs incurred in the maintenance and running of the Fund, as disclosed in the detailed expenses within the Statement of Total Return and Note 9.
3 The distribution on Accumulation Shares includes distribution paid and payable in the financial year.
4 Direct transaction costs have been calculated against the average shares for the financial year.
5 Returns have been calculated using methods prescribed in the SORP 2014 as amended in 2017 regulations. They may differ slightly from returns shown in the Fund Performance Summary.
6 Direct transaction costs have been calculated against the average net asset value for the financial year.
7 Share prices represent the net asset value per share used for dealing purposes.
38
Vanguard Target Retirement 2015 Fund
Cost Proceeds
(£) (£)
Largest Purchases Largest Sales
Vanguard Global Bond Index Fund 1,152,407 Vanguard Global Bond Index Fund 624,796
Vanguard FTSE Developed World ex-U.K. Equity Index Fund 728,781 Vanguard FTSE Developed World ex-U.K. Equity Index Fund 522,282
Vanguard Global Aggregate Bond UCITS ETF 434,259 Vanguard FTSE U.K. All Share Index Unit Trust 242,031
Vanguard FTSE U.K. All Share Index Unit Trust 287,270 Vanguard U.S. Equity Index Fund 132,881
UK Treasury 0.125% Index-Linked Gilt 22/03/2024 187,723 UK Treasury 0.125% Index-Linked Gilt 22/03/2024 80,498
Total 2,790,440 Total 1,602,488
Total Purchases for theYear 4,044,843 Total Sales for theYear 2,036,118
39
Vanguard Target Retirement 2015 Fund
Portfolio Statement
As at 31 March 2022
The holdings displayed are primarily affiliated collective investment schemes, through which the Fund seeks to achieve its investment objective.
The prospectus and other information about the collective investment schemes are available at vanguard.co.uk.
Market % of
Maturity Value Total Net
Coupon Date Holding (£) Assets
Equity Collective Investment Schemes 31.10% (31 March 2021: 36.30%)
Vanguard FTSE Developed World ex-U.K. Equity Index Fund 3,068 1,636,007 18.79
Vanguard FTSE U.K. All Share Index Unit Trust 2,210 521,187 5.98
Vanguard Emerging Markets Stock Index Fund 832 210,774 2.42
Vanguard FTSE 100 UCITS ETF 4,700 162,338 1.86
Vanguard U.S. Equity Index Fund 103 77,658 0.89
Vanguard FTSE North America UCITS ETF 650 53,863 0.62
Vanguard FTSE Developed Europe ex-U.K. Equity Index Fund 80 25,802 0.30
Vanguard Japan Stock Index Fund 49 12,907 0.15
Vanguard Pacific ex-Japan Stock Index Fund 22 7,754 0.09
2,708,290 31.10
Fixed Income Collective Investment Schemes 51.90% (31 March 2021: 48.33%)
Vanguard Global Bond Index Fund 10,927 1,678,670 19.28
Vanguard Global Aggregate Bond UCITS ETF 64,041 1,588,268 18.24
Vanguard U.S. Investment Grade Credit Index Fund 1,929 236,040 2.71
Vanguard U.S. Government Bond Index Fund 2,146 234,309 2.69
Vanguard Euro Government Bond Index Fund 1,769 220,774 2.54
Vanguard U.K. Government Bond Index Fund 1,243 207,263 2.38
Vanguard U.K. Investment Grade Bond Index Fund 1,415 142,123 1.63
Vanguard Euro Investment Grade Bond Index Fund 981 116,121 1.33
Vanguard Japan Government Bond Index Fund 844 95,693 1.10
4,519,261 51.90
Government Bonds 16.76% (31 March 2021: 15.24%)
United Kingdom Inflation-Linked Gilt 1.875% 22/11/22 £242,370 401,820 4.61
United Kingdom Inflation-Linked Gilt 2.500% 17/07/24 £103,500 386,180 4.44
United Kingdom Inflation-Linked Gilt 0.125% 22/03/24 £250,013 361,037 4.15
United Kingdom Inflation-Linked Gilt 0.125% 22/03/26 £218,000 309,778 3.56
1,458,815 16.76
40
Vanguard Target Retirement 2015 Fund
Balance Sheet
As at As at
31 March 2022 31 March 2021
Note1 (£) (£)
Assets:
Financial Assets 8,686,366 6,538,621
Current Assets
Debtors 12 220,258 267,990
Cash and Bank Balances 13 3,369 180
Total Assets 8,909,993 6,806,791
Liabilities:
Creditors
Other Creditors 14 202,518 259,954
Total Liabilities 202,518 259,954
Net Assets Attributable to Shareholders 8,707,475 6,546,837
1 See the Notes to the Financial Statements.
41
Vanguard Target Retirement 2015 Fund
Distribution Table
For the year ended 31 March 2022
Final distribution payable 31 May 2022
42
Vanguard Target Retirement 2020 Fund
Managed by Vanguard Global Advisers, LLC.
Investment Objective
The Fund’s investment objective is to achieve an increase in value and, consistent with a gradually changing investment allocation, hold investments that will pay
out money for investors planning to retire in or within approximately five years after 2020.
Investment Strategy
The Fund will seek to achieve its investment objective by investing more than 80% of its assets in passive funds that track an index, which are managed or
operated by the ACD or its associates.
1 2 3 4 5 6 7
The Synthetic Risk and Reward Indicator (SRRI) measures the volatility of the Fund. The risk and reward category (which may range from 1 to 7) is calculated
using historical data and may not be a reliable indicator of the Fund’s future risk profile. The risk and reward category may shift over time and is not a target or
guarantee. The lowest category (i.e. category 1) does not mean “risk free”. The Fund appears in the middle range of the risk and reward indicator because the
values of the Fund’s investments have experienced a moderate rate of change in the past.
Performance Summary
The Performance Summary does not form part of the Financial Statements.
• The investment environment grew considerably more challenging over the 12 months ended 31 March 2022. Early on, the global economy was continuing to
heal from the pandemic, bolstered by reopening economies, improving labour markets and sustained consumer demand.
• However, ongoing supply disruptions and labour shortages in some sectors and the subsequent surge in oil prices following Russia’s invasion of Ukraine
contributed to inflation readings that climbed to multidecade highs across much of the world and a more muted outlook for growth.
• To combat inflation, some central banks, including those in the United States and the United Kingdom, raised short-term interest rates. The European Central
Bank continued to reduce its bond purchases and seemed likely to raise rates later in 2022.
• Vanguard Target Retirement 2020 Fund returned 3.79% for the 12-month period, reflecting its global equity and fixed income exposure.
• With monetary policy turning less accommodative, the Bloomberg Global Aggregate Float Adjusted and Scaled Index hedged in British pounds, a proxy for
global bonds, declined by close to 5%. US bonds, which had the largest country weighting in the index, held up a little better than the index overall, as did
Japan and China. The United Kingdom, Italy and France underperformed.
• Global stocks slumped in the first quarter of 2022, but finished the 12 months up almost 12%, as measured by the FTSE Global All Cap Index. Energy
performed especially well as the price of oil had been recovering even before the conflict in Ukraine.
• UK stocks rose a little more, returning about 13%, as measured by the FTSE All-Share Index, although returns varied significantly across industry sectors.
Total Returns
Total Returns
Periods Ended 31 March 2022
(Annualised for periods over one year)
Ten Years or
One Year Five Years Since Inception1
A GBP Accumulation 3.79% 5.21% 7.45%
Returns are based on NAV with income reinvested.
All of the returns in this report represent past performance, which is not a guarantee of future results that may be achieved by the Fund. For performance data current to the most recent month-end,
which may be higher or lower than that cited, visit our website at http://global.vanguard.com. Note, too, that both investment returns and principal value can fluctuate widely, so an investor’s shares,
when sold, could be worth more or less than their original cost.
The Fund is not managed to a benchmark and there is not a benchmark against which the performance of the Fund can appropriately be assessed. However, investors may compare the performance
of the Fund against other funds within the Morningstar EEA Fund Target Date 2016-2020 category or the Investment Association Mixed Investment 40-85% Shares category.
1 Since-inception returns: A GBP Accumulation, 17 December 2015.
43
Vanguard Target Retirement 2020 Fund
For the Year Ended For the Year Ended For the Year Ended
A GBP Accumulation 31 March 2022 31 March 2021 31 March 2020
Change in Net Assets Per Share
Opening Net Asset Value Per Share1 £151.36 £129.08 £131.99
Return Before Operating Charges*,2 £6.23 £22.63 (£2.58)
Operating Charges2 (£0.38) (£0.35) (£0.33)
Return After Operating Charges*,2 £5.85 £22.28 (£2.91)
Distributions3 (£2.26) (£1.55) (£2.07)
Retained Distributions on Accumulation Shares3 £2.26 £1.55 £2.07
Closing Net Asset Value Per Share1 £157.21 £151.36 £129.08
*Net of Direct Transaction Costs of:4 £0.00 £0.00 £0.00
Performance
Return After Operating Charges2, 5 3.86% 17.26% (2.20%)
Other Information
Closing Net Asset Value £74,969,116 £33,882,365 £19,083,966
Closing Number of Shares 476,868 223,847 147,845
Operating Charges2 0.24% 0.24% 0.24%
Direct Transaction Costs6 0.00% 0.00% 0.00%
Prices
Highest Share Price7 £164.02 £153.07 £145.46
Lowest Share Price7 £151.94 £126.47 £123.10
1 The net asset value per share shown may diverge from the net asset value per share used for dealing purposes as at 31 March 2022 because of any adjustments for trade date accounting and any
adjustments in valuation to bid prices. The quoted price for underlying collective investment schemes may be inclusive of any applicable swing pricing adjustments.
2 Operating charges include indirect costs incurred in the maintenance and running of the Fund, as disclosed in the detailed expenses within the Statement of Total Return and Note 9.
3 The distribution on Accumulation Shares includes distribution paid and payable in the financial year.
4 Direct transaction costs have been calculated against the average shares for the financial year.
5 Returns have been calculated using methods prescribed in the SORP 2014 as amended in 2017 regulations. They may differ slightly from returns shown in the Fund Performance Summary.
6 Direct transaction costs have been calculated against the average net asset value for the financial year.
7 Share prices represent the net asset value per share used for dealing purposes.
44
Vanguard Target Retirement 2020 Fund
Cost Proceeds
(£) (£)
Largest Purchases Largest Sales
Vanguard Global Bond Index Fund 11,536,249 Vanguard Global Bond Index Fund 2,567,676
Vanguard Global Aggregate Bond UCITS ETF 9,425,775 Vanguard FTSE Developed World ex-U.K. Equity Index Fund 2,135,725
Vanguard FTSE Developed World ex-U.K. Equity Index Fund 8,429,688 Vanguard FTSE U.K. All Share Index Unit Trust 1,259,303
Vanguard FTSE U.K. All Share Index Unit Trust 3,961,226 Vanguard U.S. Equity Index Fund 943,076
Vanguard U.S. Equity Index Fund 2,790,348 Vanguard Global Aggregate Bond UCITS ETF 347,804
Total 36,143,286 Total 7,253,584
Total Purchases for theYear 49,010,434 Total Sales for theYear 9,046,571
45
Vanguard Target Retirement 2020 Fund
Portfolio Statement
As at 31 March 2022
The holdings displayed are primarily affiliated collective investment schemes, through which the Fund seeks to achieve its investment objective.
The prospectus and other information about the collective investment schemes are available at vanguard.co.uk.
Market % of
Maturity Value Total Net
Coupon Date Holding (£) Assets
Equity Collective Investment Schemes 45.39% (31 March 2021: 48.54%)
Vanguard FTSE Developed World ex-U.K. Equity Index Fund 26,268 14,006,745 18.68
Vanguard FTSE U.K. All Share Index Unit Trust 27,034 6,375,824 8.50
Vanguard U.S. Equity Index Fund 6,267 4,730,271 6.31
Vanguard Emerging Markets Stock Index Fund 10,837 2,745,570 3.66
Vanguard FTSE 100 UCITS ETF 63,865 2,205,903 2.94
Vanguard FTSE North America UCITS ETF 19,995 1,656,902 2.21
Vanguard FTSE Developed Europe ex-U.K. Equity Index Fund 3,924 1,265,690 1.69
Vanguard Japan Stock Index Fund 2,591 679,494 0.91
Vanguard Pacific ex-Japan Stock Index Fund 1,036 363,691 0.49
34,030,090 45.39
Fixed Income Collective Investment Schemes 45.09% (31 March 2021: 43.42%)
Vanguard Global Bond Index Fund 94,883 14,576,422 19.44
Vanguard Global Aggregate Bond UCITS ETF 568,109 14,089,558 18.80
Vanguard U.K. Government Bond Index Fund 18,204 3,035,962 4.05
Vanguard U.K. Investment Grade Bond Index Fund 20,905 2,099,787 2.80
33,801,729 45.09
Government Bonds 9.47% (31 March 2021: 7.98%)
United Kingdom Inflation-Linked Gilt 1.875% 22/11/22 £1,189,794 1,972,535 2.63
United Kingdom Inflation-Linked Gilt 2.500% 17/07/24 £518,800 1,935,752 2.58
United Kingdom Inflation-Linked Gilt 0.125% 22/03/24 £1,186,600 1,713,534 2.29
United Kingdom Inflation-Linked Gilt 0.125% 22/03/26 £1,039,000 1,476,420 1.97
7,098,241 9.47
46
Vanguard Target Retirement 2020 Fund
Balance Sheet
As at As at
31 March 2022 31 March 2021
Note1 (£) (£)
Assets:
Financial Assets 74,930,060 33,862,676
Current Assets
Debtors 12 1,025,188 728,457
Cash and Bank Balances 13 20,206 35,447
Total Assets 75,975,454 34,626,580
Liabilities:
Creditors
Other Creditors 14 1,006,338 744,215
Total Liabilities 1,006,338 744,215
Net Assets Attributable to Shareholders 74,969,116 33,882,365
1 See the Notes to the Financial Statements.
47
Vanguard Target Retirement 2020 Fund
Distribution Table
For the year ended 31 March 2022
Final distribution payable 31 May 2022
48
Vanguard Target Retirement 2025 Fund
Managed by Vanguard Global Advisers, LLC.
Investment Objective
The Fund’s investment objective is to achieve an increase in value and, consistent with a gradually changing investment allocation, hold investments that will pay
out money for investors planning to retire in or within approximately five years after 2025.
Investment Strategy
The Fund will seek to achieve its investment objective by investing more than 90% of its assets in passive funds that track an index, which are managed or
operated by the ACD or its associates.
1 2 3 4 5 6 7
The Synthetic Risk and Reward Indicator (SRRI) measures the volatility of the Fund. The risk and reward category (which may range from 1 to 7) is calculated
using historical data and may not be a reliable indicator of the Fund’s future risk profile. The risk and reward category may shift over time and is not a target or
guarantee. The lowest category (i.e. category 1) does not mean “risk free”. The Fund appears in the middle range of the risk and reward indicator because the
values of the Fund’s investments have experienced a moderate rate of change in the past.
Performance Summary
The Performance Summary does not form part of the Financial Statements.
• The investment environment grew considerably more challenging over the 12 months ended 31 March 2022. Early on, the global economy was continuing to
heal from the pandemic, bolstered by reopening economies, improving labour markets and sustained consumer demand.
• However, ongoing supply disruptions and labour shortages in some sectors and the subsequent surge in oil prices following Russia’s invasion of Ukraine
contributed to inflation readings that climbed to multidecade highs across much of the world and a more muted outlook for growth.
• To combat inflation, some central banks, including those in the United States and the United Kingdom, raised short-term interest rates. The European Central
Bank continued to reduce its bond purchases and seemed likely to raise rates later in 2022.
• Vanguard Target Retirement 2025 Fund returned 4.66% for the 12-month period, reflecting its global equity and fixed income exposure.
• Global stocks slumped in the first quarter of 2022, but finished the 12 months up almost 12%, as measured by the FTSE Global All Cap Index. Energy
performed especially well as the price of oil had been recovering even before the conflict in Ukraine.
• UK stocks rose a little more, returning about 13%, as measured by the FTSE All-Share Index, although returns varied significantly across industry sectors.
Energy, utilities, health care and basic materials were up more than 30%, while consumer discretionary and technology finished in negative territory.
• With monetary policy turning less accommodative, the Bloomberg Global Aggregate Float Adjusted and Scaled Index hedged in British pounds, a proxy for
global bonds, declined by close to 5%. US bonds, which had the largest country weighting in the index, held up a little better than the index overall, as did
Japan and China. The United Kingdom, Italy and France underperformed.
Total Returns
Total Returns
Periods Ended 31 March 2022
(Annualised for periods over one year)
Ten Years or
One Year Five Years Since Inception1
A GBP Accumulation 4.66% 5.91% 8.19%
Returns are based on NAV with income reinvested.
All of the returns in this report represent past performance, which is not a guarantee of future results that may be achieved by the Fund. For performance data current to the most recent month-
end, which may be higher or lower than that cited, visit our website at http://global.vanguard.com. Note, too, that both investment returns and principal value can fluctuate widely, so an investor’s
shares, when sold, could be worth more or less than their original cost.
The Fund is not managed to a benchmark and there is not a benchmark against which the performance of the Fund can appropriately be assessed. However, investors may compare the
performance of the Fund against other funds within the Morningstar EEA Fund Target Date 2021-2025 category or the Investment Association Mixed Investment 40-85% Shares category.
1 Since-inception returns: A GBP Accumulation, 17 December 2015.
49
Vanguard Target Retirement 2025 Fund
For the Year Ended For the Year Ended For the Year Ended
A GBP Accumulation 31 March 2022 31 March 2021 31 March 2020
Change in Net Assets Per Share
Opening Net Asset Value Per Share1 £156.74 £129.70 £134.18
Return Before Operating Charges*,2 £7.72 £27.40 (£4.14)
Operating Charges2 (£0.39) (£0.36) (£0.34)
Return After Operating Charges*,2 £7.33 £27.04 (£4.48)
Distributions3 (£2.35) (£1.87) (£2.37)
Retained Distributions on Accumulation Shares3 £2.35 £1.87 £2.37
Closing Net Asset Value Per Share1 £164.07 £156.74 £129.70
*Net of Direct Transaction Costs of:4 £0.00 £0.00 £0.00
Performance
Return After Operating Charges2,5 4.68% 20.85% (3.34%)
Other Information
Closing Net Asset Value £188,256,503 £92,625,343 £39,315,717
Closing Number of Shares 1,147,386 590,935 303,128
Operating Charges2 0.24% 0.24% 0.24%
Direct Transaction Costs6 0.00% 0.00% 0.00%
Prices
Highest Share Price7 £171.88 £158.56 £149.54
Lowest Share Price7 £157.46 £126.77 £123.02
1 The net asset value per share shown may diverge from the net asset value per share used for dealing purposes as at 31 March 2022 because of any adjustments for trade date accounting and any
adjustments in valuation to bid prices. The quoted price for underlying collective investment schemes may be inclusive of any applicable swing pricing adjustments.
2 Operating charges include indirect costs incurred in the maintenance and running of the Fund, as disclosed in the detailed expenses within the Statement of Total Return and Note 9.
3 The distribution on Accumulation Shares includes distribution paid and payable in the financial year.
4 Direct transaction costs have been calculated against the average shares for the financial year.
5 Returns have been calculated using methods prescribed in the SORP 2014 as amended in 2017 regulations. They may differ slightly from returns shown in the Fund Performance Summary.
6 Direct transaction costs have been calculated against the average net asset value for the financial year.
7 Share prices represent the net asset value per share used for dealing purposes.
50
Vanguard Target Retirement 2025 Fund
Cost Proceeds
(£) (£)
Largest Purchases Largest Sales
Vanguard Global Bond Index Fund 23,236,584 Vanguard Global Bond Index Fund 2,781,932
Vanguard FTSE Developed World ex-U.K. Equity Index Fund 15,827,075 Vanguard FTSE Developed World ex-U.K. Equity Index Fund 1,023,574
Vanguard Global Aggregate Bond UCITS ETF 13,159,709 Vanguard U.S. Equity Index Fund 951,001
Vanguard U.S. Equity Index Fund 8,890,550 Vanguard FTSE U.K. All Share Index Unit Trust 720,617
Vanguard FTSE U.K. All Share Index Unit Trust 8,885,274 Vanguard FTSE 100 UCITS ETF 444,218
Total 69,999,192 Total 5,921,342
Total Purchases for theYear 98,600,052 Total Sales for theYear 7,417,187
51
Vanguard Target Retirement 2025 Fund
Portfolio Statement
As at 31 March 2022
The holdings displayed are primarily affiliated collective investment schemes, through which the Fund seeks to achieve its investment objective.
The prospectus and other information about the collective investment schemes are available at vanguard.co.uk.
Market % of
Maturity Value Total Net
Coupon Date Holding (£) Assets
Equity Collective Investment Schemes 56.66% (31 March 2021: 59.03%)
Vanguard FTSE Developed World ex-U.K. Equity Index Fund 66,865 35,654,240 18.94
Vanguard FTSE U.K. All Share Index Unit Trust 86,160 20,320,134 10.79
Vanguard U.S. Equity Index Fund 26,435 19,954,000 10.60
Vanguard Emerging Markets Stock Index Fund 32,515 8,238,043 4.38
Vanguard FTSE North America UCITS ETF 78,827 6,532,065 3.47
Vanguard FTSE 100 UCITS ETF 186,173 6,430,434 3.42
Vanguard FTSE Developed Europe ex-U.K. Equity Index Fund 16,719 5,393,353 2.86
Vanguard Japan Stock Index Fund 10,228 2,682,584 1.42
Vanguard Pacific ex-Japan Stock Index Fund 4,156 1,459,658 0.78
106,664,511 56.66
Fixed Income Collective Investment Schemes 41.15% (31 March 2021: 40.22%)
Vanguard Global Bond Index Fund 236,040 36,261,807 19.26
Vanguard Global Aggregate Bond UCITS ETF 841,483 20,869,452 11.09
Vanguard U.K. Government Bond Index Fund 72,073 12,020,297 6.38
Vanguard U.K. Investment Grade Bond Index Fund 82,763 8,313,196 4.42
77,464,752 41.15
Government Bonds 2.19% (31 March 2021: 0.72%)
United Kingdom Inflation-Linked Gilt 2.500% 17/07/24 £322,300 1,202,569 0.64
United Kingdom Inflation-Linked Gilt 1.875% 22/11/22 £670,000 1,110,779 0.59
United Kingdom Inflation-Linked Gilt 0.125% 22/03/24 £688,000 993,521 0.53
United Kingdom Inflation-Linked Gilt 0.125% 22/03/26 £573,000 814,233 0.43
4,121,102 2.19
52
Vanguard Target Retirement 2025 Fund
Balance Sheet
As at As at
31 March 2022 31 March 2021
Note1 (£) (£)
Assets:
Financial Assets 188,250,365 92,593,951
Current Assets
Debtors 12 1,124,533 568,533
Cash and Bank Balances 13 39,219 151,731
Total Assets 189,414,117 93,314,215
Liabilities:
Creditors
Other Creditors 14 1,157,614 688,872
Total Liabilities 1,157,614 688,872
Net Assets Attributable to Shareholders 188,256,503 92,625,343
1 See the Notes to the Financial Statements.
53
Vanguard Target Retirement 2025 Fund
Distribution Table
For the year ended 31 March 2022
Final distribution payable 31 May 2022
54
Vanguard Target Retirement 2030 Fund
Managed by Vanguard Global Advisers, LLC.
Investment Objective
The Fund’s investment objective is to achieve an increase in value and, consistent with a gradually changing investment allocation, hold investments that will pay
out money for investors planning to retire in or within approximately five years after 2030.
Investment Strategy
The Fund will seek to achieve its investment objective by investing more than 90% of its assets in passive funds that track an index, which are managed or
operated by the ACD or its associates.
1 2 3 4 5 6 7
The Synthetic Risk and Reward Indicator (SRRI) measures the volatility of the Fund. The risk and reward category (which may range from 1 to 7) is calculated
using historical data and may not be a reliable indicator of the Fund’s future risk profile. The risk and reward category may shift over time and is not a target or
guarantee. The lowest category (i.e. category 1) does not mean “risk free”. The Fund appears in the middle range of the risk and reward indicator because the
values of the Fund’s investments have experienced a moderate rate of change in the past.
Performance Summary
The Performance Summary does not form part of the Financial Statements.
• The investment environment grew considerably more challenging over the 12 months ended 31 March 2022. Early on, the global economy was continuing to
heal from the pandemic, bolstered by reopening economies, improving labour markets and sustained consumer demand.
• However, ongoing supply disruptions and labour shortages in some sectors and the subsequent surge in oil prices following Russia’s invasion of Ukraine
contributed to inflation readings that climbed to multidecade highs across much of the world and a more muted outlook for growth.
• To combat inflation, some central banks, including those in the United States and the United Kingdom, raised short-term interest rates. The European Central
Bank continued to reduce its bond purchases and seemed likely to raise rates later in 2022.
• Vanguard Target Retirement 2030 Fund returned 5.45% for the 12-month period, reflecting its global equity and fixed income exposure.
• Global stocks slumped in the first quarter of 2022, but finished the 12 months up almost 12%, as measured by the FTSE Global All Cap Index. Energy
performed especially well as the price of oil had been recovering even before the conflict in Ukraine.
• UK stocks rose a little more, returning about 13%, as measured by the FTSE All-Share Index, although returns varied significantly across industry sectors.
Energy, utilities, health care and basic materials were up more than 30%, while consumer discretionary and technology finished in negative territory.
• With monetary policy turning less accommodative, the Bloomberg Global Aggregate Float Adjusted and Scaled Index hedged in British pounds, a proxy for
global bonds, declined by close to 5%. US bonds, which had the largest country weighting in the index, held up a little better than the index overall, as did
Japan and China. The United Kingdom, Italy and France underperformed.
Total Returns
Total Returns
Periods Ended 31 March 2022
(Annualised for periods over one year)
Ten Years or
One Year Five Years Since Inception1
A GBP Accumulation 5.45% 6.30% 8.78%
Returns are based on NAV with income reinvested.
All of the returns in this report represent past performance, which is not a guarantee of future results that may be achieved by the Fund. For performance data current to the most recent month-
end, which may be higher or lower than that cited, visit our website at http://global.vanguard.com. Note, too, that both investment returns and principal value can fluctuate widely, so an investor’s
shares, when sold, could be worth more or less than their original cost.
The Fund is not managed to a benchmark and there is not a benchmark against which the performance of the Fund can appropriately be assessed. However, investors may compare the
performance of the Fund against other funds within the Morningstar EEA Fund Target Date 2026-2030 category or the Investment Association Mixed Investment 40-85% Shares category.
1 Since-inception returns: A GBP Accumulation, 17 December 2015.
55
Vanguard Target Retirement 2030 Fund
For the Year Ended For the Year Ended For the Year Ended
A GBP Accumulation 31 March 2022 31 March 2021 31 March 2020
Change in Net Assets Per Share
Opening Net Asset Value Per Share1 £160.93 £131.08 £136.72
Return Before Operating Charges*,2 £9.17 £30.22 (£5.29)
Operating Charges2 (£0.41) (£0.37) (£0.35)
Return After Operating Charges*,2 £8.76 £29.85 (£5.64)
Distributions3 (£2.38) (£1.86) (£2.40)
Retained Distributions on Accumulation Shares3 £2.38 £1.86 £2.40
Closing Net Asset Value Per Share1 £169.69 £160.93 £131.08
*Net of Direct Transaction Costs of:4 £0.00 £0.00 £0.00
Performance
Return After Operating Charges2,5 5.44% 22.77% (4.13%)
Other Information
Closing Net Asset Value £217,281,366 £112,105,082 £38,801,327
Closing Number of Shares 1,280,430 696,612 296,017
Operating Charges2 0.24% 0.24% 0.24%
Direct Transaction Costs6 0.00% 0.00% 0.00%
Prices
Highest Share Price7 £177.70 £162.56 £152.90
Lowest Share Price7 £161.73 £127.83 £123.89
1 The net asset value per share shown may diverge from the net asset value per share used for dealing purposes as at 31 March 2022 because of any adjustments for trade date accounting and any
adjustments in valuation to bid prices. The quoted price for underlying collective investment schemes may be inclusive of any applicable swing pricing adjustments.
2 Operating charges include indirect costs incurred in the maintenance and running of the Fund, as disclosed in the detailed expenses within the Statement of Total Return and Note 9.
3 The distribution on Accumulation Shares includes distribution paid and payable in the financial year.
4 Direct transaction costs have been calculated against the average shares for the financial year.
5 Returns have been calculated using methods prescribed in the SORP 2014 as amended in 2017 regulations. They may differ slightly from returns shown in the Fund Performance Summary.
6 Direct transaction costs have been calculated against the average net asset value for the financial year.
7 Share prices represent the net asset value per share used for dealing purposes.
56
Vanguard Target Retirement 2030 Fund
Cost Proceeds
(£) (£)
Largest Purchases Largest Sales
Vanguard Global Bond Index Fund 25,472,984 Vanguard Global Bond Index Fund 2,321,692
Vanguard FTSE Developed World ex-U.K. Equity Index Fund 16,897,531 Vanguard FTSE U.K. All Share Index Unit Trust 1,278,214
Vanguard U.S. Equity Index Fund 11,495,170 Vanguard FTSE Developed World ex-U.K. Equity Index Fund 695,307
Vanguard FTSE U.K. All Share Index Unit Trust 11,396,101 Vanguard U.S. Equity Index Fund 625,030
Vanguard Global Aggregate Bond UCITS ETF 8,224,273 Vanguard Global Aggregate Bond UCITS ETF 496,837
Total 73,486,059 Total 5,417,080
Total Purchases for theYear 104,461,960 Total Sales for theYear 5,701,260
57
Vanguard Target Retirement 2030 Fund
Portfolio Statement
As at 31 March 2022
The holdings displayed are affiliated collective investment schemes, through which the Fund seeks to achieve its investment objective.
The prospectus and other information about the collective investment schemes are available at vanguard.co.uk.
Market % of
Value Total Net
Holding (£) Assets
Equity Collective Investment Schemes 63.32% (31 March 2021: 64.30%)
Vanguard FTSE Developed World ex-U.K. Equity Index Fund 77,586 41,371,200 19.04
Vanguard U.S. Equity Index Fund 37,107 28,009,875 12.89
Vanguard FTSE U.K. All Share Index Unit Trust 110,367 26,028,968 11.98
Vanguard Emerging Markets Stock Index Fund 42,437 10,751,830 4.95
Vanguard FTSE North America UCITS ETF 113,563 9,410,493 4.33
Vanguard FTSE 100 UCITS ETF 244,623 8,449,303 3.89
Vanguard FTSE Developed Europe ex-U.K. Equity Index Fund 23,541 7,593,865 3.50
Vanguard Japan Stock Index Fund 14,688 3,852,415 1.77
Vanguard Pacific ex-Japan Stock Index Fund 6,032 2,118,286 0.97
137,586,235 63.32
Fixed Income Collective Investment Schemes 36.73% (31 March 2021: 35.60%)
Vanguard Global Bond Index Fund 274,525 42,174,109 19.41
Vanguard U.K. Government Bond Index Fund 84,648 14,117,440 6.50
Vanguard Global Aggregate Bond UCITS ETF 554,941 13,762,981 6.34
Vanguard U.K. Investment Grade Bond Index Fund 96,976 9,740,785 4.48
79,795,315 36.73
Portfolio of Investments 217,381,550 100.05
Net Other Liabilities (100,184) (0.05)
Net Assets Attributable to Shareholders 217,281,366 100.00
58
Vanguard Target Retirement 2030 Fund
Balance Sheet
As at As at
31 March 2022 31 March 2021
Note1 (£) (£)
Assets:
Financial Assets 217,381,550 111,989,993
Current Assets
Debtors 12 1,281,483 1,316,228
Cash and Bank Balances 13 52,335 134,651
Total Assets 218,715,368 113,440,872
Liabilities:
Creditors
Other Creditors 14 1,434,002 1,335,790
Total Liabilities 1,434,002 1,335,790
Net Assets Attributable to Shareholders 217,281,366 112,105,082
1 See the Notes to the Financial Statements.
59
Vanguard Target Retirement 2030 Fund
Distribution Table
For the year ended 31 March 2022
Final distribution payable 31 May 2022
60
Vanguard Target Retirement 2035 Fund
Managed by Vanguard Global Advisers, LLC.
Investment Objective
The Fund’s investment objective is to achieve an increase in value and, consistent with a gradually changing investment allocation, hold investments that will pay
out money for investors planning to retire in or within approximately five years after 2035.
Investment Strategy
The Fund will seek to achieve its investment objective by investing more than 90% of its assets in passive funds that track an index, which are managed or
operated by the ACD or its associates.
1 2 3 4 5 6 7
The Synthetic Risk and Reward Indicator (SRRI) measures the volatility of the Fund. The risk and reward category (which may range from 1 to 7) is calculated
using historical data and may not be a reliable indicator of the Fund’s future risk profile. The risk and reward category may shift over time and is not a target or
guarantee. The lowest category (i.e. category 1) does not mean “risk free”. The Fund appears in the middle range of the risk and reward indicator because the
values of the Fund’s investments have experienced a moderate rate of change in the past.
Performance Summary
The Performance Summary does not form part of the Financial Statements.
• The investment environment grew considerably more challenging over the 12 months ended 31 March 2022. Early on, the global economy was continuing to
heal from the pandemic, bolstered by reopening economies, improving labour markets and sustained consumer demand.
• However, ongoing supply disruptions and labour shortages in some sectors and the subsequent surge in oil prices following Russia’s invasion of Ukraine
contributed to inflation readings that climbed to multidecade highs across much of the world and a more muted outlook for growth.
• To combat inflation, some central banks, including those in the United States and the United Kingdom, raised short-term interest rates. The European Central
Bank continued to reduce its bond purchases and seemed likely to raise rates later in 2022.
• Vanguard Target Retirement 2035 Fund returned 6.31% for the 12-month period, reflecting its global equity and fixed income exposure.
• Global stocks slumped in the first quarter of 2022, but finished the 12 months up almost 12%, as measured by the FTSE Global All Cap Index. Energy
performed especially well as the price of oil had been recovering even before the conflict in Ukraine.
• UK stocks rose a little more, about 13% as measured by the FTSE All-Share Index, although returns varied significantly across industry sectors. Energy,
utilities, health care and basic materials were up more than 30%, while consumer discretionary and technology finished in negative territory.
• With monetary policy turning less accommodative, the Bloomberg Global Aggregate Float Adjusted and Scaled Index hedged in British pounds, a proxy for
global bonds, declined by close to 5%. US bonds, which had the largest country weighting in the index, held up a little better than the index overall, as did
Japan and China. The United Kingdom, Italy and France underperformed.
Total Returns
Total Returns
Periods Ended 31 March 2022
(Annualised for periods over one year)
Ten Years or
One Year Five Years Since Inception1
A GBP Accumulation 6.31% 6.71% 9.28%
Returns are based on NAV with income reinvested.
All of the returns in this report represent past performance, which is not a guarantee of future results that may be achieved by the Fund. For performance data current to the most recent month-
end, which may be higher or lower than that cited, visit our website at http://global.vanguard.com. Note, too, that both investment returns and principal value can fluctuate widely, so an investor’s
shares, when sold, could be worth more or less than their original cost.
The Fund is not managed to a benchmark and there is not a benchmark against which the performance of the Fund can appropriately be assessed. However, investors may compare the
performance of the Fund against other funds within the Morningstar EEA Fund Target Date 2031-2035 category or the Investment Association Mixed Investment 40-85% Shares category.
1 Since-inception returns: A GBP Accumulation, 17 December 2015.
61
Vanguard Target Retirement 2035 Fund
For the Year Ended For the Year Ended For the Year Ended
A GBP Accumulation 31 March 2022 31 March 2021 31 March 2020
Change in Net Assets Per Share
Opening Net Asset Value Per Share1 £164.35 £131.81 £138.60
Return Before Operating Charges*,2 £10.79 £32.91 (£6.44)
Operating Charges2 (£0.42) (£0.37) (£0.35)
Return After Operating Charges*,2 £10.37 £32.54 (£6.79)
Distributions3 (£2.54) (£1.90) (£2.60)
Retained Distributions on Accumulation Shares3 £2.54 £1.90 £2.60
Closing Net Asset Value Per Share1 £174.72 £164.35 £131.81
*Net of Direct Transaction Costs of:4 £0.00 £0.00 £0.00
Performance
Return After Operating Charges2,5 6.31% 24.69% (4.90%)
Other Information
Closing Net Asset Value £187,826,323 £101,745,649 £35,113,527
Closing Number of Shares 1,075,025 619,085 266,398
Operating Charges2 0.24% 0.24% 0.24%
Direct Transaction Costs6 0.00% 0.00% 0.00%
Prices
Highest Share Price7 £182.56 £165.75 £155.59
Lowest Share Price7 £165.25 £128.27 £124.13
1 The net asset value per share shown may diverge from the net asset value per share used for dealing purposes as at 31 March 2022 because of any adjustments for trade date accounting and any
adjustments in valuation to bid prices. The quoted price for underlying collective investment schemes may be inclusive of any applicable swing pricing adjustments.
2 Operating charges include indirect costs incurred in the maintenance and running of the Fund, as disclosed in the detailed expenses within the Statement of Total Return and Note 9.
3 The distribution on Accumulation Shares includes distribution paid and payable in the financial year.
4 Direct transaction costs have been calculated against the average shares for the financial year.
5 Returns have been calculated using methods prescribed in the SORP 2014 as amended in 2017 regulations. They may differ slightly from returns shown in the Fund Performance Summary.
6 Direct transaction costs have been calculated against the average net asset value for the financial year.
7 Share prices represent the net asset value per share used for dealing purposes.
62
Vanguard Target Retirement 2035 Fund
Cost Proceeds
(£) (£)
Largest Purchases Largest Sales
Vanguard Global Bond Index Fund 20,345,218 Vanguard Global Bond Index Fund 1,927,420
Vanguard FTSE Developed World ex-U.K. Equity Index Fund 13,594,656 Vanguard U.S. Equity Index Fund 563,851
Vanguard U.S. Equity Index Fund 10,749,479 Vanguard U.K. Government Bond Index Fund 544,424
Vanguard FTSE U.K. All Share Index Unit Trust 9,061,431 Vanguard FTSE U.K. All Share Index Unit Trust 528,849
Vanguard U.K. Government Bond Index Fund 6,099,592 Vanguard FTSE Developed World ex-U.K. Equity Index Fund 526,361
Total 59,850,376 Total 4,090,905
Total Purchases for theYear 83,939,546 Total Sales for theYear 4,594,462
63
Vanguard Target Retirement 2035 Fund
Portfolio Statement
As at 31 March 2022
The holdings displayed are affiliated collective investment schemes, through which the Fund seeks to achieve its investment objective.
The prospectus and other information about the collective investment schemes are available at vanguard.co.uk.
Market % of
Value Total Net
Holding (£) Assets
Equity Collective Investment Schemes 68.27% (31 March 2021: 69.28%)
Vanguard FTSE Developed World ex-U.K. Equity Index Fund 66,985 35,718,578 19.02
Vanguard U.S. Equity Index Fund 36,780 27,763,095 14.78
Vanguard FTSE U.K. All Share Index Unit Trust 101,677 23,979,633 12.77
Vanguard Emerging Markets Stock Index Fund 39,195 9,930,351 5.29
Vanguard FTSE North America UCITS ETF 111,858 9,269,206 4.93
Vanguard FTSE 100 UCITS ETF 238,047 8,222,167 4.38
Vanguard FTSE Developed Europe ex-U.K. Equity Index Fund 23,198 7,483,358 3.98
Vanguard Japan Stock Index Fund 14,449 3,789,877 2.02
Vanguard Pacific ex-Japan Stock Index Fund 5,908 2,074,718 1.10
128,230,983 68.27
Fixed Income Collective Investment Schemes 31.76% (31 March 2021: 30.59%)
Vanguard Global Bond Index Fund 233,254 35,833,916 19.08
Vanguard U.K. Government Bond Index Fund 63,355 10,566,337 5.62
Vanguard U.K. Investment Grade Bond Index Fund 72,673 7,299,657 3.89
Vanguard Global Aggregate Bond UCITS ETF 239,748 5,945,942 3.17
59,645,852 31.76
Portfolio of Investments 187,876,835 100.03
Net Other Liabilities (50,512) (0.03)
Net Assets Attributable to Shareholders 187,826,323 100.00
64
Vanguard Target Retirement 2035 Fund
Balance Sheet
As at As at
31 March 2022 31 March 2021
Note1 (£) (£)
Assets:
Financial Assets 187,876,835 101,618,232
Current Assets
Debtors 12 1,210,504 776,233
Cash and Bank Balances 13 53,571 161,926
Total Assets 189,140,910 102,556,391
Liabilities:
Creditors
Other Creditors 14 1,314,587 810,742
Total Liabilities 1,314,587 810,742
Net Assets Attributable to Shareholders 187,826,323 101,745,649
1 See the Notes to the Financial Statements.
65
Vanguard Target Retirement 2035 Fund
Distribution Table
For the year ended 31 March 2022
Final distribution payable 31 May 2022
66
Vanguard Target Retirement 2040 Fund
Managed by Vanguard Global Advisers, LLC.
Investment Objective
The Fund’s investment objective is to achieve an increase in value and, consistent with a gradually changing investment allocation, hold investments that will pay
out money for investors planning to retire in or within approximately five years after 2040.
Investment Strategy
The Fund will seek to achieve its investment objective by investing more than 90% of its assets in passive funds that track an index, which are managed or
operated by the ACD or its associates.
1 2 3 4 5 6 7
The Synthetic Risk and Reward Indicator (SRRI) measures the volatility of the Fund. The risk and reward category (which may range from 1 to 7) is calculated
using historical data and may not be a reliable indicator of the Fund’s future risk profile. The risk and reward category may shift over time and is not a target or
guarantee. The lowest category (i.e. category 1) does not mean “risk free”. The Fund appears in the middle range of the risk and reward indicator because the
values of the Fund’s investments have experienced a moderate rate of change in the past.
Performance Summary
The Performance Summary does not form part of the Financial Statements.
• The investment environment grew considerably more challenging over the 12 months ended 31 March 2022. Early on, the global economy was continuing to
heal from the pandemic, bolstered by reopening economies, improving labour markets and sustained consumer demand.
• However, ongoing supply disruptions and labour shortages in some sectors and the subsequent surge in oil prices following Russia’s invasion of Ukraine
contributed to inflation readings that climbed to multidecade highs across much of the world and a more muted outlook for growth.
• To combat inflation, some central banks, including those in the United States and the United Kingdom, raised short-term interest rates. The European Central
Bank continued to reduce its bond purchases and seemed likely to raise rates later in 2022.
• Vanguard Target Retirement 2040 Fund returned 7.19% for the 12-month period, reflecting its global equity and fixed income exposure.
• Global stocks slumped in the first quarter of 2022, but finished the 12 months up almost 12%, as measured by the FTSE Global All Cap Index. Energy
performed especially well as the price of oil had been recovering even before the conflict in Ukraine.
• UK stocks rose a little more, returning about 13%, as measured by the FTSE All-Share Index, although returns varied significantly across industry sectors.
Energy, utilities, health care and basic materials were up more than 30%, while consumer discretionary and technology finished in negative territory.
• With monetary policy turning less accommodative, the Bloomberg Global Aggregate Float Adjusted and Scaled Index hedged in British pounds, a proxy for
global bonds, declined by close to 5%. US bonds, which had the largest country weighting in the index, held up a little better than the index overall, as did
Japan and China. The United Kingdom, Italy and France underperformed.
Total Returns
Total Returns
Periods Ended 31 March 2022
(Annualised for periods over one year)
Ten Years or
One Year Five Years Since Inception1
A GBP Accumulation 7.19% 7.09% 9.82%
Returns are based on NAV with income reinvested.
All of the returns in this report represent past performance, which is not a guarantee of future results that may be achieved by the Fund. For performance data current to the most recent month-
end, which may be higher or lower than that cited, visit our website at http://global.vanguard.com. Note, too, that both investment returns and principal value can fluctuate widely, so an investor’s
shares, when sold, could be worth more or less than their original cost.
The Fund is not managed to a benchmark and there is not a benchmark against which the performance of the Fund can appropriately be assessed. However, investors may compare the
performance of the Fund against other funds within the Morningstar EEA Fund Target Date 2036-2040 category or the Investment Association Mixed Investment 40-85% Shares category.
1 Since-inception returns: A GBP Accumulation, 17 December 2015.
67
Vanguard Target Retirement 2040 Fund
For the Year Ended For the Year Ended For the Year Ended
A GBP Accumulation 31 March 2022 31 March 2021 31 March 2020
Change in Net Assets Per Share
Opening Net Asset Value Per Share1 £168.07 £132.78 £140.79
Return Before Operating Charges*,2 £12.52 £35.67 (£7.65)
Operating Charges2 (£0.43) (£0.38) (£0.36)
Return After Operating Charges*,2 £12.09 £35.29 (£8.01)
Distributions3 (£2.67) (£1.99) (£2.59)
Retained Distributions on Accumulation Shares3 £2.67 £1.99 £2.59
Closing Net Asset Value Per Share1 £180.16 £168.07 £132.78
*Net of Direct Transaction Costs of:4 £0.00 £0.00 £0.00
Performance
Return After Operating Charges2,5 7.19% 26.58% (5.69%)
Other Information
Closing Net Asset Value £155,523,764 £88,707,459 £30,949,801
Closing Number of Shares 863,269 527,813 233,087
Operating Charges2 0.24% 0.24% 0.24%
Direct Transaction Costs6 0.00% 0.00% 0.00%
Prices
Highest Share Price7 £187.84 £169.36 £158.60
Lowest Share Price7 £169.07 £128.92 £124.62
1 The net asset value per share shown may diverge from the net asset value per share used for dealing purposes as at 31 March 2022 because of any adjustments for trade date accounting and any
adjustments in valuation to bid prices. The quoted price for underlying collective investment schemes may be inclusive of any applicable swing pricing adjustments.
2 Operating charges include indirect costs incurred in the maintenance and running of the Fund, as disclosed in the detailed expenses within the Statement of Total Return and Note 9.
3 The distribution on Accumulation Shares includes distribution paid and payable in the financial year.
4 Direct transaction costs have been calculated against the average shares for the financial year.
5 Returns have been calculated using methods prescribed in the SORP 2014 as amended in 2017 regulations. They may differ slightly from returns shown in the Fund Performance Summary.
6 Direct transaction costs have been calculated against the average net asset value for the financial year.
7 Share prices represent the net asset value per share used for dealing purposes.
68
Vanguard Target Retirement 2040 Fund
Cost Proceeds
(£) (£)
Largest Purchases Largest Sales
Vanguard Global Bond Index Fund 15,883,537 Vanguard FTSE U.K. All Share Index Unit Trust 1,304,236
Vanguard FTSE Developed World ex-U.K. Equity Index Fund 10,182,695 Vanguard Global Bond Index Fund 1,157,447
Vanguard U.S. Equity Index Fund 9,478,704 Vanguard U.S. Equity Index Fund 770,524
Vanguard FTSE U.K. All Share Index Unit Trust 8,156,028 Vanguard FTSE Developed World ex-U.K. Equity Index Fund 533,665
Vanguard U.K. Government Bond Index Fund 3,854,995 Vanguard U.K. Government Bond Index Fund 160,239
Total 47,555,959 Total 3,926,111
Total Purchases for theYear 63,682,221 Total Sales for theYear 4,172,776
69
Vanguard Target Retirement 2040 Fund
Portfolio Statement
As at 31 March 2022
The holdings displayed are affiliated collective investment schemes, through which the Fund seeks to achieve its investment objective.
The prospectus and other information about the collective investment schemes are available at vanguard.co.uk.
Market % of
Value Total Net
Holding (£) Assets
Equity Collective Investment Schemes 73.24% (31 March 2021: 74.31%)
Vanguard FTSE Developed World ex-U.K. Equity Index Fund 55,242 29,456,981 18.94
Vanguard U.S. Equity Index Fund 34,331 25,914,044 16.66
Vanguard FTSE U.K. All Share Index Unit Trust 90,557 21,356,942 13.73
Vanguard Emerging Markets Stock Index Fund 35,509 8,996,530 5.79
Vanguard FTSE North America UCITS ETF 103,487 8,575,537 5.51
Vanguard FTSE 100 UCITS ETF 206,840 7,144,274 4.59
Vanguard FTSE Developed Europe ex-U.K. Equity Index Fund 21,552 6,952,164 4.47
Vanguard Japan Stock Index Fund 13,553 3,554,777 2.29
Vanguard Pacific ex-Japan Stock Index Fund 5,590 1,963,070 1.26
113,914,319 73.24
Fixed Income Collective Investment Schemes 26.77% (31 March 2021: 25.58%)
Vanguard Global Bond Index Fund 189,662 29,137,059 18.74
Vanguard U.K. Government Bond Index Fund 44,271 7,383,417 4.75
Vanguard U.K. Investment Grade Bond Index Fund 50,840 5,106,613 3.28
41,627,089 26.77
Portfolio of Investments 155,541,408 100.01
Net Other Liabilities (17,644) (0.01)
Net Assets Attributable to Shareholders 155,523,764 100.00
70
Vanguard Target Retirement 2040 Fund
Balance Sheet
As at As at
31 March 2022 31 March 2021
Note1 (£) (£)
Assets:
Financial Assets 155,541,408 88,611,064
Current Assets
Debtors 12 399,275 471,759
Cash and Bank Balances 13 51,848 113,558
Total Assets 155,992,531 89,196,381
Liabilities:
Creditors
Other Creditors 14 468,767 488,922
Total Liabilities 468,767 488,922
Net Assets Attributable to Shareholders 155,523,764 88,707,459
1 See the Notes to the Financial Statements.
71
Vanguard Target Retirement 2040 Fund
Distribution Table
For the year ended 31 March 2022
Final distribution payable 31 May 2022
72
Vanguard Target Retirement 2045 Fund
Managed by Vanguard Global Advisers, LLC.
Investment Objective
The Fund’s investment objective is to achieve an increase in value and, consistent with a gradually changing investment allocation, hold investments that will pay
out money for investors planning to retire in or within approximately five years after 2045.
Investment Strategy
The Fund will seek to achieve its investment objective by investing more than 90% of its assets in passive funds that track an index, which are managed or
operated by the ACD or its associates.
1 2 3 4 5 6 7
The Synthetic Risk and Reward Indicator (SRRI) measures the volatility of the Fund. The risk and reward category (which may range from 1 to 7) is calculated
using historical data and may not be a reliable indicator of the Fund’s future risk profile. The risk and reward category may shift over time and is not a target or
guarantee. The lowest category (i.e. category 1) does not mean “risk free”. The Fund appears in the middle range of the risk and reward indicator because the
values of the Fund’s investments have experienced a moderate rate of change in the past.
Performance Summary
The Performance Summary does not form part of the Financial Statements.
• The investment environment grew considerably more challenging over the 12 months ended 31 March 2022. Early on, the global economy was continuing to
heal from the pandemic, bolstered by reopening economies, improving labour markets and sustained consumer demand.
• However, ongoing supply disruptions and labour shortages in some sectors and the subsequent surge in oil prices following Russia’s invasion of Ukraine
contributed to inflation readings that climbed to multidecade highs across much of the world and a more muted outlook for growth.
• To combat inflation, some central banks, including those in the United States and the United Kingdom, raised short-term interest rates. The European Central
Bank continued to reduce its bond purchases and seemed likely to raise rates later in 2022.
• Vanguard Target Retirement 2045 Fund returned 8.07% for the 12-month period, reflecting its global equity and fixed income exposure.
• Global stocks slumped in the first quarter of 2022, but finished the 12 months up almost 12%, as measured by the FTSE Global All Cap Index. Energy
performed especially well as the price of oil had been recovering even before the conflict in Ukraine.
• UK stocks rose a little more, returning about 13%, as measured by the FTSE All-Share Index, although returns varied significantly across industry sectors.
Energy, utilities, health care and basic materials were up more than 30%, while consumer discretionary and technology finished in negative territory.
• With monetary policy turning less accommodative, the Bloomberg Global Aggregate Float Adjusted and Scaled Index hedged in British pounds, a proxy for
global bonds, declined by close to 5%. US bonds, which had the largest country weighting in the index, held up a little better than the index overall, as did
Japan and China. The United Kingdom, Italy and France underperformed.
Total Returns
Total Returns
Periods Ended 31 March 2022
(Annualised for periods over one year)
Ten Years or
One Year Five Years Since Inception1
A GBP Accumulation 8.07% 7.47% 10.19%
Returns are based on NAV with income reinvested.
All of the returns in this report represent past performance, which is not a guarantee of future results that may be achieved by the Fund. For performance data current to the most recent month-
end, which may be higher or lower than that cited, visit our website at http://global.vanguard.com. Note, too, that both investment returns and principal value can fluctuate widely, so an investor’s
shares, when sold, could be worth more or less than their original cost.
The Fund is not managed to a benchmark and there is not a benchmark against which the performance of the Fund can appropriately be assessed. However, investors may compare the
performance of the Fund against other funds within the Morningstar EEA Fund Target Date 2041-2045 category or the Investment Association Mixed Investment 40-85% Shares category.
1 Since-inception returns: A GBP Accumulation, 17 December 2015.
73
Vanguard Target Retirement 2045 Fund
For the Year Ended For the Year Ended For the Year Ended
A GBP Accumulation 31 March 2022 31 March 2021 31 March 2020
Change in Net Assets Per Share
Opening Net Asset Value Per Share1 £170.29 £132.52 £141.58
Return Before Operating Charges*,2 £14.18 £38.15 (£8.70)
Operating Charges2 (£0.44) (£0.38) (£0.36)
Return After Operating Charges*,2 £13.74 £37.77 (£9.06)
Distributions3 (£2.78) (£1.99) (£2.72)
Retained Distributions on Accumulation Shares3 £2.78 £1.99 £2.72
Closing Net Asset Value Per Share1 £184.03 £170.29 £132.52
*Net of Direct Transaction Costs of:4 £0.00 £0.00 £0.00
Performance
Return After Operating Charges2,5 8.07% 28.50% (6.40%)
Other Information
Closing Net Asset Value £134,983,310 £75,312,193 £23,439,366
Closing Number of Shares 733,487 442,266 176,870
Operating Charges2 0.24% 0.24% 0.24%
Direct Transaction Costs6 0.00% 0.00% 0.00%
Prices
Highest Share Price7 £191.43 £171.50 £159.95
Lowest Share Price7 £171.39 £128.42 £123.97
1 The net asset value per share shown may diverge from the net asset value per share used for dealing purposes as at 31 March 2022 because of any adjustments for trade date accounting and any
adjustments in valuation to bid prices. The quoted price for underlying collective investment schemes may be inclusive of any applicable swing pricing adjustments.
2 Operating charges include indirect costs incurred in the maintenance and running of the Fund, as disclosed in the detailed expenses within the Statement of Total Return and Note 9.
3 The distribution on Accumulation Shares includes distribution paid and payable in the financial year.
4 Direct transaction costs have been calculated against the average shares for the financial year.
5 Returns have been calculated using methods prescribed in the SORP 2014 as amended in 2017 regulations. They may differ slightly from returns shown in the Fund Performance Summary.
6 Direct transaction costs have been calculated against the average net asset value for the financial year.
7 Share prices represent the net asset value per share used for dealing purposes.
74
Vanguard Target Retirement 2045 Fund
Cost Proceeds
(£) (£)
Largest Purchases Largest Sales
Vanguard Global Bond Index Fund 11,955,691 Vanguard Global Bond Index Fund 1,211,242
Vanguard U.S. Equity Index Fund 8,913,475 Vanguard FTSE U.K. All Share Index Unit Trust 543,000
Vanguard FTSE Developed World ex-U.K. Equity Index Fund 8,821,727 Vanguard U.S. Equity Index Fund 150,000
Vanguard FTSE U.K. All Share Index Unit Trust 7,463,726 Vanguard FTSE Developed World ex-U.K. Equity Index Fund 133,000
Vanguard Emerging Markets Stock Index Fund 3,614,378 Vanguard U.K. Government Bond Index Fund 121,558
Total 40,768,997 Total 2,158,800
Total Purchases for theYear 54,777,126 Total Sales for theYear 2,212,474
75
Vanguard Target Retirement 2045 Fund
Portfolio Statement
As at 31 March 2022
The holdings displayed are affiliated collective investment schemes, through which the Fund seeks to achieve its investment objective.
The prospectus and other information about the collective investment schemes are available at vanguard.co.uk.
Market % of
Value Total Net
Holding (£) Assets
Equity Collective Investment Schemes 78.20% (31 March 2021: 79.32%)
Vanguard FTSE Developed World ex-U.K. Equity Index Fund 47,805 25,490,885 18.88
Vanguard U.S. Equity Index Fund 33,066 24,959,141 18.49
Vanguard FTSE U.K. All Share Index Unit Trust 85,024 20,052,014 14.86
Vanguard Emerging Markets Stock Index Fund 32,691 8,282,444 6.14
Vanguard FTSE North America UCITS ETF 99,728 8,264,044 6.12
Vanguard FTSE Developed Europe ex-U.K. Equity Index Fund 20,686 6,672,945 4.94
Vanguard FTSE 100 UCITS ETF 189,088 6,531,118 4.84
Vanguard Japan Stock Index Fund 13,043 3,420,954 2.53
Vanguard Pacific ex-Japan Stock Index Fund 5,383 1,890,626 1.40
105,564,171 78.20
Fixed Income Collective Investment Schemes 21.75% (31 March 2021: 20.57%)
Vanguard Global Bond Index Fund 133,771 20,550,770 15.23
Vanguard U.K. Government Bond Index Fund 31,181 5,200,329 3.85
Vanguard U.K. Investment Grade Bond Index Fund 35,878 3,603,761 2.67
29,354,860 21.75
Portfolio of Investments 134,919,031 99.95
Net Other Assets 64,279 0.05
Net Assets Attributable to Shareholders 134,983,310 100.00
76
Vanguard Target Retirement 2045 Fund
Balance Sheet
As at As at
31 March 2022 31 March 2021
Note1 (£) (£)
Assets:
Financial Assets 134,919,031 75,229,143
Current Assets
Debtors 12 974,635 680,031
Cash and Bank Balances 13 51,355 90,630
Total Assets 135,945,021 75,999,804
Liabilities:
Creditors
Other Creditors 14 961,711 687,611
Total Liabilities 961,711 687,611
Net Assets Attributable to Shareholders 134,983,310 75,312,193
1 See the Notes to the Financial Statements.
77
Vanguard Target Retirement 2045 Fund
Distribution Table
For the year ended 31 March 2022
Final distribution payable 31 May 2022
78
Vanguard Target Retirement 2050 Fund
Managed by Vanguard Global Advisers, LLC.
Investment Objective
The Fund’s investment objective is to achieve an increase in value and, consistent with a gradually changing investment allocation, hold investments that will pay
out money for investors planning to retire in or within approximately five years after 2050.
Investment Strategy
The Fund will seek to achieve its investment objective by investing more than 90% of its assets in passive funds that track an index, which are managed or
operated by the ACD or its associates.
1 2 3 4 5 6 7
The Synthetic Risk and Reward Indicator (SRRI) measures the volatility of the Fund. The risk and reward category (which may range from 1 to 7) is calculated
using historical data and may not be a reliable indicator of the Fund’s future risk profile. The risk and reward category may shift over time and is not a target or
guarantee. The lowest category (i.e. category 1) does not mean “risk free”. The Fund appears in the middle range of the risk and reward indicator because the
values of the Fund’s investments have experienced a moderate rate of change in the past.
Performance Summary
The Performance Summary does not form part of the Financial Statements.
• The investment environment grew considerably more challenging over the 12 months ended 31 March 2022. Early on, the global economy was continuing to
heal from the pandemic, bolstered by reopening economies, improving labour markets and sustained consumer demand.
• However, ongoing supply disruptions and labour shortages in some sectors and the subsequent surge in oil prices following Russia’s invasion of Ukraine
contributed to inflation readings that climbed to multidecade highs across much of the world and a more muted outlook for growth.
• To combat inflation, some central banks, including those in the United States and the United Kingdom, raised short-term interest rates. The European Central
Bank continued to reduce its bond purchases and seemed likely to raise rates later in 2022.
• Vanguard Target Retirement 2050 Fund returned 8.25% for the 12-month period, reflecting its global equity and fixed income exposure.
• Global stocks slumped in the first quarter of 2022, but finished the 12 months up almost 12%, as measured by the FTSE Global All Cap Index. Energy
performed especially well as the price of oil had been recovering even before the conflict in Ukraine.
• UK stocks rose a little more, returning about 13%, as measured by the FTSE All-Share Index, although returns varied significantly across industry sectors.
Energy, utilities, health care and basic materials were up more than 30%, while consumer discretionary and technology finished in negative territory.
• With monetary policy turning less accommodative, the Bloomberg Global Aggregate Float Adjusted and Scaled Index hedged in British pounds, a proxy for
global bonds, declined by close to 5%. US bonds, which had the largest country weighting in the index, held up a little better than the index overall, as did
Japan and China. The United Kingdom, Italy and France underperformed.
Total Returns
Total Returns
Periods Ended 31 March 2022
(Annualised for periods over one year)
Ten Years or
One Year Five Years Since Inception1
A GBP Accumulation 8.25% 7.53% 10.24%
Returns are based on NAV with income reinvested.
All of the returns in this report represent past performance, which is not a guarantee of future results that may be achieved by the Fund. For performance data current to the most recent month-end,
which may be higher or lower than that cited, visit our website at http://global.vanguard.com. Note, too, that both investment returns and principal value can fluctuate widely, so an investor’s shares,
when sold, could be worth more or less than their original cost.
The Fund is not managed to a benchmark and there is not a benchmark against which the performance of the Fund can appropriately be assessed. However, investors may compare the performance
of the Fund against other funds within the Morningstar EEA Fund Target Date 2046+ category or the Investment Association Mixed Investment 40-85% Shares category.
1 Since-inception returns: A GBP Accumulation, 17 December 2015.
79
Vanguard Target Retirement 2050 Fund
For the Year Ended For the Year Ended For the Year Ended
A GBP Accumulation 31 March 2022 31 March 2021 31 March 2020
Change in Net Assets Per Share
Opening Net Asset Value Per Share1 £170.47 £132.57 £141.60
Return Before Operating Charges*,2 £14.51 £38.28 (£8.31)
Operating Charges2 (£0.44) (£0.38) (£0.72)
Return After Operating Charges*,2 £14.07 £37.90 (£9.03)
Distributions3 (£2.81) (£2.01) (£2.61)
Retained Distributions on Accumulation Shares3 £2.81 £2.01 £2.61
Closing Net Asset Value Per Share1 £184.54 £170.47 £132.57
*Net of Direct Transaction Costs of:4 £0.00 £0.00 £0.00
Performance
Return After Operating Charges2,5 8.25% 28.59% (6.38%)
Other Information
Closing Net Asset Value £86,836,509 £47,377,201 £15,369,209
Closing Number of Shares 470,558 277,922 115,932
Operating Charges2 0.24% 0.24% 0.24%
Direct Transaction Costs6 0.00% 0.00% 0.00%
Prices
Highest Share Price7 £191.85 £171.67 £159.99
Lowest Share Price7 £171.58 £128.46 £124.01
1 The net asset value per share shown may diverge from the net asset value per share used for dealing purposes as at 31 March 2022 because of any adjustments for trade date accounting and any
adjustments in valuation to bid prices. The quoted price for underlying collective investment schemes may be inclusive of any applicable swing pricing adjustments.
2 Operating charges include indirect costs incurred in the maintenance and running of the Fund, as disclosed in the detailed expenses within the Statement of Total Return and Note 9.
3 The distribution on Accumulation Shares includes distribution paid and payable in the financial year.
4 Direct transaction costs have been calculated against the average shares for the financial year.
5 Returns have been calculated using methods prescribed in the SORP 2014 as amended in 2017 regulations. They may differ slightly from returns shown in the Fund Performance Summary.
6 Direct transaction costs have been calculated against the average net asset value for the financial year.
7 Share prices represent the net asset value per share used for dealing purposes.
80
Vanguard Target Retirement 2050 Fund
Cost Proceeds
(£) (£)
Largest Purchases Largest Sales
Vanguard Global Bond Index Fund 7,015,109 Vanguard Global Bond Index Fund 737,270
Vanguard U.S. Equity Index Fund 6,473,890 Vanguard FTSE U.K. All Share Index Unit Trust 540,654
Vanguard FTSE Developed World ex-U.K. Equity Index Fund 5,934,574 Vanguard U.S. Equity Index Fund 128,414
Vanguard FTSE U.K. All Share Index Unit Trust 5,490,192 Vanguard FTSE Developed World ex-U.K. Equity Index Fund 101,270
Vanguard Emerging Markets Stock Index Fund 2,513,124 Vanguard U.K. Government Bond Index Fund 72,782
Total 27,426,889 Total 1,580,390
Total Purchases for theYear 36,587,555 Total Sales for theYear 1,643,399
81
Vanguard Target Retirement 2050 Fund
Portfolio Statement
As at 31 March 2022
The holdings displayed are affiliated collective investment schemes, through which the Fund seeks to achieve its investment objective.
The prospectus and other information about the collective investment schemes are available at vanguard.co.uk.
Market % of
Value Total Net
Holding (£) Assets
Equity Collective Investment Schemes 79.72% (31 March 2021: 79.80%)
Vanguard U.S. Equity Index Fund 22,053 16,646,727 19.17
Vanguard FTSE Developed World ex-U.K. Equity Index Fund 30,747 16,395,124 18.88
Vanguard FTSE U.K. All Share Index Unit Trust 56,173 13,247,893 15.26
Vanguard Emerging Markets Stock Index Fund 21,506 5,448,829 6.27
Vanguard FTSE North America UCITS ETF 64,713 5,362,497 6.18
Vanguard FTSE Developed Europe ex-U.K. Equity Index Fund 13,716 4,424,580 5.10
Vanguard FTSE 100 UCITS ETF 120,964 4,178,109 4.81
Vanguard Japan Stock Index Fund 8,623 2,261,811 2.60
Vanguard Pacific ex-Japan Stock Index Fund 3,590 1,260,704 1.45
69,226,274 79.72
Fixed Income Collective Investment Schemes 20.27% (31 March 2021: 20.07%)
Vanguard Global Bond Index Fund 80,218 12,323,589 14.19
Vanguard U.K. Government Bond Index Fund 18,698 3,118,457 3.59
Vanguard U.K. Investment Grade Bond Index Fund 21,515 2,161,056 2.49
17,603,102 20.27
Portfolio of Investments 86,829,376 99.99
Net Other Assets 7,133 0.01
Net Assets Attributable to Shareholders 86,836,509 100.00
82
Vanguard Target Retirement 2050 Fund
Balance Sheet
As at As at
31 March 2022 31 March 2021
Note1 (£) (£)
Assets:
Financial Assets 86,829,376 47,313,419
Current Assets
Debtors 12 457,643 630,768
Cash and Bank Balances 13 33,991 84,227
Total Assets 87,321,010 48,028,414
Liabilities:
Creditors
Other Creditors 14 484,501 651,213
Total Liabilities 484,501 651,213
Net Assets Attributable to Shareholders 86,836,509 47,377,201
1 See the Notes to the Financial Statements.
83
Vanguard Target Retirement 2050 Fund
Distribution Table
For the year ended 31 March 2022
Final distribution payable 31 May 2022
84
Vanguard Target Retirement 2055 Fund
Managed by Vanguard Global Advisers, LLC.
Investment Objective
The Fund’s investment objective is to achieve an increase in value and, consistent with a gradually changing investment allocation, hold investments that will pay
out money for investors planning to retire in or within approximately five years after 2055.
Investment Strategy
The Fund will seek to achieve its investment objective by investing more than 90% of its assets in passive funds that track an index, which are managed or
operated by the ACD or its associates.
1 2 3 4 5 6 7
The Synthetic Risk and Reward Indicator (SRRI) measures the volatility of the Fund. The risk and reward category (which may range from 1 to 7) is calculated
using historical data and may not be a reliable indicator of the Fund’s future risk profile. The risk and reward category may shift over time and is not a target or
guarantee. The lowest category (i.e. category 1) does not mean “risk free”. The Fund appears in the middle range of the risk and reward indicator because the
values of the Fund’s investments have experienced a moderate rate of change in the past.
Performance Summary
The Performance Summary does not form part of the Financial Statements.
• The investment environment grew considerably more challenging over the 12 months ended 31 March 2022. Early on, the global economy was continuing to
heal from the pandemic, bolstered by reopening economies, improving labour markets and sustained consumer demand.
• However, ongoing supply disruptions and labour shortages in some sectors and the subsequent surge in oil prices following Russia’s invasion of Ukraine
contributed to inflation readings that climbed to multidecade highs across much of the world and a more muted outlook for growth.
• To combat inflation, some central banks, including those in the United States and the United Kingdom, raised short-term interest rates. The European Central
Bank continued to reduce its bond purchases and seemed likely to raise rates later in 2022.
• Vanguard Target Retirement 2055 Fund returned 8.25% for the 12-month period, reflecting its global equity and fixed income exposure.
• Global stocks slumped in the first quarter of 2022, but finished the 12 months up almost 12%, as measured by the FTSE Global All Cap Index. Energy
performed especially well as the price of oil had been recovering even before the conflict in Ukraine.
• UK stocks rose a little more, returning about 13%, as measured by the FTSE All-Share Index, although returns varied significantly across industry sectors.
Energy, utilities, health care and basic materials were up more than 30%, while consumer discretionary and technology finished in negative territory.
• With monetary policy turning less accommodative, the Bloomberg Global Aggregate Float Adjusted and Scaled Index hedged in British pounds, a proxy for
global bonds, declined by close to 5%. US bonds, which had the largest country weighting in the index, held up a little better than the index overall, as did
Japan and China. The United Kingdom, Italy and France underperformed.
Total Returns
Total Returns
Periods Ended 31 March 2022
(Annualised for periods over one year)
Ten Years or
One Year Five Years Since Inception1
A GBP Accumulation 8.25% 7.53% 10.28%
Returns are based on NAV with income reinvested.
All of the returns in this report represent past performance, which is not a guarantee of future results that may be achieved by the Fund. For performance data current to the most recent month-
end, which may be higher or lower than that cited, visit our website at http://global.vanguard.com. Note, too, that both investment returns and principal value can fluctuate widely, so an investor’s
shares, when sold, could be worth more or less than their original cost.
The Fund is not managed to a benchmark and there is not a benchmark against which the performance of the Fund can appropriately be assessed. However, investors may compare the
performance of the Fund against other funds within the Morningstar EEA Fund Target Date 2046+ category or the Investment Association Mixed Investment 40-85% Shares category.
1 Since-inception returns: A GBP Accumulation, 17 December 2015.
85
Vanguard Target Retirement 2055 Fund
For the Year Ended For the Year Ended For the Year Ended
A GBP Accumulation 31 March 2022 31 March 2021 31 March 2020
Change in Net Assets Per Share
Opening Net Asset Value Per Share1 £170.88 £132.91 £142.02
Return Before Operating Charges*,2 £14.53 £38.35 (£8.75)
Operating Charges2 (£0.44) (£0.38) (£0.36)
Return After Operating Charges*,2 £14.09 £37.97 (£9.11)
Distributions3 (£2.81) (£2.05) (£2.78)
Retained Distributions on Accumulation Shares3 £2.81 £2.05 £2.78
Closing Net Asset Value Per Share1 £184.97 £170.88 £132.91
*Net of Direct Transaction Costs of:4 £0.00 £0.00 £0.00
Performance
Return After Operating Charges2,5 8.25% 28.57% (6.41%)
Other Information
Closing Net Asset Value £52,933,401 £28,790,184 £10,120,997
Closing Number of Shares 286,169 168,479 76,148
Operating Charges2 0.24% 0.24% 0.24%
Direct Transaction Costs6 0.00% 0.00% 0.00%
Prices
Highest Share Price7 £192.31 £172.08 £160.47
Lowest Share Price7 £171.99 £128.79 £124.37
1 The net asset value per share shown may diverge from the net asset value per share used for dealing purposes as at 31 March 2022 because of any adjustments for trade date accounting and any
adjustments in valuation to bid prices. The quoted price for underlying collective investment schemes may be inclusive of any applicable swing pricing adjustments.
2 Operating charges include indirect costs incurred in the maintenance and running of the Fund, as disclosed in the detailed expenses within the Statement of Total Return and Note 9.
3 The distribution on Accumulation Shares includes distribution paid and payable in the financial year.
4 Direct transaction costs have been calculated against the average shares for the financial year.
5 Returns have been calculated using methods prescribed in the SORP 2014 as amended in 2017 regulations. They may differ slightly from returns shown in the Fund Performance Summary.
6 Direct transaction costs have been calculated against the average net asset value for the financial year.
7 Share prices represent the net asset value per share used for dealing purposes.
86
Vanguard Target Retirement 2055 Fund
Cost Proceeds
(£) (£)
Largest Purchases Largest Sales
Vanguard Global Bond Index Fund 4,362,050 Vanguard Global Bond Index Fund 521,019
Vanguard U.S. Equity Index Fund 3,853,771 Vanguard FTSE U.K. All Share Index Unit Trust 331,916
Vanguard FTSE Developed World ex-U.K. Equity Index Fund 3,658,450 Vanguard U.S. Equity Index Fund 106,664
Vanguard FTSE U.K. All Share Index Unit Trust 3,326,460 Vanguard FTSE Developed World ex-U.K. Equity Index Fund 73,924
Vanguard Emerging Markets Stock Index Fund 1,533,115 Vanguard U.K. Investment Grade Bond Index Fund 28,335
Total 16,733,846 Total 1,061,858
Total Purchases for theYear 22,509,232 Total Sales for theYear 1,080,193
87
Vanguard Target Retirement 2055 Fund
Portfolio Statement
As at 31 March 2022
The holdings displayed are affiliated collective investment schemes, through which the Fund seeks to achieve its investment objective.
The prospectus and other information about the collective investment schemes are available at vanguard.co.uk.
Market % of
Value Total Net
Holding (£) Assets
Equity Collective Investment Schemes 79.70% (31 March 2021: 79.78%)
Vanguard U.S. Equity Index Fund 13,250 10,001,771 18.89
Vanguard FTSE Developed World ex-U.K. Equity Index Fund 18,738 9,991,855 18.88
Vanguard FTSE U.K. All Share Index Unit Trust 34,341 8,098,965 15.30
Vanguard FTSE North America UCITS ETF 41,179 3,412,332 6.45
Vanguard Emerging Markets Stock Index Fund 13,074 3,312,419 6.26
Vanguard FTSE Developed Europe ex-U.K. Equity Index Fund 8,401 2,709,847 5.12
Vanguard FTSE 100 UCITS ETF 73,004 2,521,565 4.76
Vanguard Japan Stock Index Fund 5,258 1,379,160 2.60
Vanguard Pacific ex-Japan Stock Index Fund 2,173 763,013 1.44
42,190,927 79.70
Fixed Income Collective Investment Schemes 20.26% (31 March 2021: 20.07%)
Vanguard Global Bond Index Fund 48,863 7,506,638 14.18
Vanguard U.K. Government Bond Index Fund 11,390 1,899,535 3.59
Vanguard U.K. Investment Grade Bond Index Fund 13,105 1,316,364 2.49
10,722,537 20.26
Portfolio of Investments 52,913,464 99.96
Net Other Assets 19,937 0.04
Net Assets Attributable to Shareholders 52,933,401 100.00
88
Vanguard Target Retirement 2055 Fund
Balance Sheet
As at As at
31 March 2022 31 March 2021
Note1 (£) (£)
Assets:
Financial Assets 52,913,464 28,748,333
Current Assets
Debtors 12 292,842 310,490
Cash and Bank Balances 13 21,014 63,451
Total Assets 53,227,320 29,122,274
Liabilities:
Creditors
Other Creditors 14 293,919 332,090
Total Liabilities 293,919 332,090
Net Assets Attributable to Shareholders 52,933,401 28,790,184
1 See the Notes to the Financial Statements.
89
Vanguard Target Retirement 2055 Fund
Distribution Table
For the year ended 31 March 2022
Final distribution payable 31 May 2022
90
Vanguard Target Retirement 2060 Fund
Managed by Vanguard Global Advisers, LLC.
Investment Objective
The Fund’s investment objective is to achieve an increase in value and, consistent with a gradually changing investment allocation, hold investments that will pay
out money for investors planning to retire in or within approximately five years after 2060.
Investment Strategy
The Fund will seek to achieve its investment objective by investing more than 90% of its assets in passive funds that track an index, which are managed or
operated by the ACD or its associates.
1 2 3 4 5 6 7
The Synthetic Risk and Reward Indicator (SRRI) measures the volatility of the Fund. The risk and reward category (which may range from 1 to 7) is calculated
using historical data and may not be a reliable indicator of the Fund’s future risk profile. The risk and reward category may shift over time and is not a target or
guarantee. The lowest category (i.e. category 1) does not mean “risk free”. The Fund appears in the middle range of the risk and reward indicator because the
values of the Fund’s investments have experienced a moderate rate of change in the past.
Performance Summary
The Performance Summary does not form part of the Financial Statements.
• The investment environment grew considerably more challenging over the 12 months ended 31 March 2022. Early on, the global economy was continuing to
heal from the pandemic, bolstered by reopening economies, improving labour markets and sustained consumer demand.
• However, ongoing supply disruptions and labour shortages in some sectors and the subsequent surge in oil prices following Russia’s invasion of Ukraine
contributed to inflation readings that climbed to multidecade highs across much of the world and a more muted outlook for growth.
• To combat inflation, some central banks, including those in the United States and the United Kingdom, raised short-term interest rates. The European Central
Bank continued to reduce its bond purchases and seemed likely to raise rates later in 2022.
• Vanguard Target Retirement 2060 Fund returned 8.24% for the 12-month period, reflecting its global equity and fixed income exposure.
• Global stocks slumped in the first quarter of 2022, but finished the 12 months up almost 12%, as measured by the FTSE Global All Cap Index. Energy
performed especially well as the price of oil had been recovering even before the conflict in Ukraine.
• UK stocks rose a little more, returning about 13%, as measured by the FTSE All-Share Index, although returns varied significantly across industry sectors.
Energy, utilities, health care and basic materials were up more than 30%, while consumer discretionary and technology finished in negative territory.
• With monetary policy turning less accommodative, the Bloomberg Global Aggregate Float Adjusted and Scaled Index hedged in British pounds, a proxy for
global bonds, declined by close to 5%. US bonds, which had the largest country weighting in the index, held up a little better than the index overall, as did
Japan and China. The United Kingdom, Italy and France underperformed.
Total Returns
Total Returns
Periods Ended 31 March 2022
(Annualised for periods over one year)
Ten Years or
One Year Since Inception1
A GBP Accumulation 8.24% 7.69%
Returns are based on NAV with income reinvested.
All of the returns in this report represent past performance, which is not a guarantee of future results that may be achieved by the Fund. For performance data current to the most recent month-
end, which may be higher or lower than that cited, visit our website at http://global.vanguard.com. Note, too, that both investment returns and principal value can fluctuate widely, so an investor’s
shares, when sold, could be worth more or less than their original cost.
The Fund is not managed to a benchmark and there is not a benchmark against which the performance of the Fund can appropriately be assessed. However, investors may compare the
performance of the Fund against other funds within the Morningstar EEA Fund Target Date 2046+ category or the Investment Association Mixed Investment 40-85% Shares category.
1 Since-inception returns: A GBP Accumulation, 5 December 2017.
91
Vanguard Target Retirement 2060 Fund
For the Year Ended For the Year Ended For the Year Ended
A GBP Accumulation 31 March 2022 31 March 2021 31 March 2020
Change in Net Assets Per Share
Opening Net Asset Value Per Share1 £127.24 £98.93 £105.73
Return Before Operating Charges*,2 £10.81 £28.59 (£6.53)
Operating Charges2 (£0.33) (£0.28) (£0.27)
Return After Operating Charges*,2 £10.48 £28.31 (£6.80)
Distributions3 (£1.94) (£1.45) (£1.79)
Retained Distributions on Accumulation Shares3 £1.94 £1.45 £1.79
Closing Net Asset Value Per Share1 £137.72 £127.24 £98.93
*Net of Direct Transaction Costs of:4 £0.00 £0.00 £0.00
Performance
Return After Operating Charges2,5 8.24% 28.62% (6.43%)
Other Information
Closing Net Asset Value £15,648,190 £6,796,552 £1,326,272
Closing Number of Shares 113,627 53,417 13,406
Operating Charges2 0.24% 0.24% 0.24%
Direct Transaction Costs6 0.00% 0.00% 0.00%
Prices
Highest Share Price7 £143.18 £128.13 £119.41
Lowest Share Price7 £128.06 £95.86 £92.56
1 The net asset value per share shown may diverge from the net asset value per share used for dealing purposes as at 31 March 2022 because of any adjustments for trade date accounting and any
adjustments in valuation to bid prices. The quoted price for underlying collective investment schemes may be inclusive of any applicable swing pricing adjustments.
2 Operating charges include indirect costs incurred in the maintenance and running of the Fund, as disclosed in the detailed expenses within the Statement of Total Return and Note 9.
3 The distribution on Accumulation Shares includes distribution paid and payable in the financial year.
4 Direct transaction costs have been calculated against the average shares for the financial year.
5 Returns have been calculated using methods prescribed in the SORP 2014 as amended in 2017 regulations. They may differ slightly from returns shown in the Fund Performance Summary.
6 Direct transaction costs have been calculated against the average net asset value for the financial year.
7 Share prices represent the net asset value per share used for dealing purposes.
92
Vanguard Target Retirement 2060 Fund
Cost Proceeds
(£) (£)
Largest Purchases Largest Sales
Vanguard U.S. Equity Index Fund 1,589,385 Vanguard Global Bond Index Fund 173,238
Vanguard Global Bond Index Fund 1,534,803 Vanguard FTSE U.K. All Share Index Unit Trust 169,246
Vanguard FTSE Developed World ex-U.K. Equity Index Fund 1,482,512 Vanguard U.S. Equity Index Fund 105,034
Vanguard FTSE U.K. All Share Index Unit Trust 1,345,821 Vanguard FTSE Developed World ex-U.K. Equity Index Fund 59,117
Vanguard Emerging Markets Stock Index Fund 578,542 Vanguard U.K. Government Bond Index Fund 38,451
Total 6,531,063 Total 545,086
Total Purchases for theYear 8,729,217 Total Sales for theYear 594,300
93
Vanguard Target Retirement 2060 Fund
Portfolio Statement
As at 31 March 2022
The holdings displayed are affiliated collective investment schemes, through which the Fund seeks to achieve its investment objective.
The prospectus and other information about the collective investment schemes are available at vanguard.co.uk.
Market % of
Value Total Net
Holding (£) Assets
Equity Collective Investment Schemes 79.62% (31 March 2021: 79.69%)
Vanguard U.S. Equity Index Fund 3,993 3,013,916 19.26
Vanguard FTSE Developed World ex-U.K. Equity Index Fund 5,556 2,962,468 18.93
Vanguard FTSE U.K. All Share Index Unit Trust 10,194 2,404,135 15.36
Vanguard Emerging Markets Stock Index Fund 3,864 979,041 6.26
Vanguard FTSE North America UCITS ETF 11,191 927,352 5.93
Vanguard FTSE Developed Europe ex-U.K. Equity Index Fund 2,506 808,471 5.17
Vanguard FTSE 100 UCITS ETF 21,195 732,077 4.68
Vanguard Japan Stock Index Fund 1,545 405,255 2.59
Vanguard Pacific ex-Japan Stock Index Fund 644 226,034 1.44
12,458,749 79.62
Fixed Income Collective Investment Schemes 20.21% (31 March 2021: 20.07%)
Vanguard Global Bond Index Fund 14,372 2,207,950 14.11
Vanguard U.K. Government Bond Index Fund 3,369 561,855 3.59
Vanguard U.K. Investment Grade Bond Index Fund 3,909 392,636 2.51
3,162,441 20.21
Portfolio of Investments 15,621,190 99.83
Net Other Assets 27,000 0.17
Net Assets Attributable to Shareholders 15,648,190 100.00
94
Vanguard Target Retirement 2060 Fund
Balance Sheet
As at As at
31 March 2022 31 March 2021
Note1 (£) (£)
Assets:
Financial Assets 15,621,190 6,780,266
Current Assets
Debtors 12 183,711 122,793
Cash and Bank Balances 13 6,572 20,739
Total Assets 15,811,473 6,923,798
Liabilities:
Creditors
Other Creditors 14 163,283 127,246
Total Liabilities 163,283 127,246
Net Assets Attributable to Shareholders 15,648,190 6,796,552
1 See the Notes to the Financial Statements.
95
Vanguard Target Retirement 2060 Fund
Distribution Table
For the year ended 31 March 2022
Final distribution payable 31 May 2022
96
Vanguard Target Retirement 2065 Fund
Managed by Vanguard Global Advisers, LLC.
Investment Objective
The Fund’s investment objective is to achieve an increase in value and, consistent with a gradually changing investment allocation, hold investments that will pay
out money for investors planning to retire in or within approximately five years after 2065.
Investment Strategy
The Fund will seek to achieve its investment objective by investing more than 90% of its assets in passive funds that track an index, which are managed or
operated by the ACD or its associates.
1 2 3 4 5 6 7
The Synthetic Risk and Reward Indicator (SRRI) measures the volatility of the Fund. The risk and reward category (which may range from 1 to 7) is calculated
using historical data and may not be a reliable indicator of the Fund’s future risk profile. The risk and reward category may shift over time and is not a target or
guarantee. The lowest category (i.e. category 1) does not mean “risk free”. The Fund appears in the middle range of the risk and reward indicator because the
values of the Fund’s investments have experienced a moderate rate of change in the past.
Performance Summary
The Performance Summary does not form part of the Financial Statements.
• The investment environment grew considerably more challenging over the 12 months ended 31 March 2022. Early on, the global economy was continuing to
heal from the pandemic, bolstered by reopening economies, improving labour markets and sustained consumer demand.
• However, ongoing supply disruptions and labour shortages in some sectors and the subsequent surge in oil prices following Russia’s invasion of Ukraine
contributed to inflation readings that climbed to multidecade highs across much of the world and a more muted outlook for growth.
• To combat inflation, some central banks, including those in the United States and the United Kingdom, raised short-term interest rates. The European Central
Bank continued to reduce its bond purchases and seemed likely to raise rates later in 2022.
• Vanguard Target Retirement 2065 Fund returned 8.22% for the 12-month period, reflecting its global equity and fixed income exposure.
• Global stocks slumped in the first quarter of 2022, but finished the 12 months up almost 12%, as measured by the FTSE Global All Cap Index. Energy
performed especially well as the price of oil had been recovering even before the conflict in Ukraine.
• UK stocks rose a little more, returning about 13%, as measured by the FTSE All-Share Index, although returns varied significantly across industry sectors.
Energy, utilities, health care and basic materials were up more than 30%, while consumer discretionary and technology finished in negative territory.
• With monetary policy turning less accommodative, the Bloomberg Global Aggregate Float Adjusted and Scaled Index hedged in British pounds, a proxy for
global bonds, declined by close to 5%. US bonds, which had the largest country weighting in the index, held up a little better than the index overall, as did
Japan and China. The United Kingdom, Italy and France underperformed.
Total Returns
Total Returns
Periods Ended 31 March 2022
(Annualised for periods over one year)
Ten Years or
One Year Since Inception1
A GBP Accumulation 8.22% 7.68%
Returns are based on NAV with income reinvested.
All of the returns in this report represent past performance, which is not a guarantee of future results that may be achieved by the Fund. For performance data current to the most recent month-
end, which may be higher or lower than that cited, visit our website at http://global.vanguard.com. Note, too, that both investment returns and principal value can fluctuate widely, so an investor’s
shares, when sold, could be worth more or less than their original cost.
The Fund is not managed to a benchmark and there is not a benchmark against which the performance of the Fund can appropriately be assessed. However, investors may compare the
performance of the Fund against other funds within the Morningstar EEA Fund Target Date 2046+ category or the Investment Association Mixed Investment 40-85% Shares category.
1 Since-inception returns: A GBP Accumulation, 5 December 2017.
97
Vanguard Target Retirement 2065 Fund
For the Year Ended For the Year Ended For the Year Ended
A GBP Accumulation 31 March 2022 31 March 2021 31 March 2020
Change in Net Assets Per Share
Opening Net Asset Value Per Share1 £127.20 £98.96 £105.62
Return Before Operating Charges*,2 £10.78 £28.52 (£6.39)
Operating Charges2 (£0.33) (£0.28) (£0.27)
Return After Operating Charges*,2 £10.45 £28.24 (£6.66)
Distributions3 (£1.87) (£1.30) (£1.71)
Retained Distributions on Accumulation Shares3 £1.87 £1.30 £1.71
Closing Net Asset Value Per Share1 £137.65 £127.20 £98.96
*Net of Direct Transaction Costs of:4 £0.00 £0.00 £0.00
Performance
Return After Operating Charges2,5 8.22% 28.54% (6.31%)
Other Information
Closing Net Asset Value £13,249,215 £5,472,649 £1,845,443
Closing Number of Shares 96,251 43,023 18,649
Operating Charges2 0.24% 0.24% 0.24%
Direct Transaction Costs6 0.00% 0.00% 0.00%
Prices
Highest Share Price7 £143.12 £128.10 £119.34
Lowest Share Price7 £128.03 £95.90 £92.58
1 The net asset value per share shown may diverge from the net asset value per share used for dealing purposes as at 31 March 2022 because of any adjustments for trade date accounting and any
adjustments in valuation to bid prices. The quoted price for underlying collective investment schemes may be inclusive of any applicable swing pricing adjustments.
2 Operating charges include indirect costs incurred in the maintenance and running of the Fund, as disclosed in the detailed expenses within the Statement of Total Return and Note 9.
3 The distribution on Accumulation Shares includes distribution paid and payable in the financial year.
4 Direct transaction costs have been calculated against the average shares for the financial year.
5 Returns have been calculated using methods prescribed in the SORP 2014 as amended in 2017 regulations. They may differ slightly from returns shown in the Fund Performance Summary.
6 Direct transaction costs have been calculated against the average net asset value for the financial year.
7 Share prices represent the net asset value per share used for dealing purposes.
98
Vanguard Target Retirement 2065 Fund
Cost Proceeds
(£) (£)
Largest Purchases Largest Sales
Vanguard U.S. Equity Index Fund 1,603,010 Vanguard U.S. Equity Index Fund 274,685
Vanguard FTSE Developed World ex-U.K. Equity Index Fund 1,412,393 Vanguard FTSE U.K. All Share Index Unit Trust 254,177
Vanguard Global Bond Index Fund 1,408,015 Vanguard Global Bond Index Fund 210,455
Vanguard FTSE U.K. All Share Index Unit Trust 1,293,856 Vanguard FTSE Developed World ex-U.K. Equity Index Fund 148,811
Vanguard Emerging Markets Stock Index Fund 521,808 Vanguard FTSE Developed Europe ex-U.K. Equity Index Fund 47,341
Total 6,239,082 Total 935,469
Total Purchases for theYear 8,238,163 Total Sales for theYear 1,026,877
99
Vanguard Target Retirement 2065 Fund
Portfolio Statement
As at 31 March 2022
The holdings displayed are affiliated collective investment schemes, through which the Fund seeks to achieve its investment objective.
The prospectus and other information about the collective investment schemes are available at vanguard.co.uk.
Market % of
Value Total Net
Holding (£) Assets
Equity Collective Investment Schemes 79.72% (31 March 2021: 79.92%)
Vanguard U.S. Equity Index Fund 3,383 2,553,936 19.28
Vanguard FTSE Developed World ex-U.K. Equity Index Fund 4,699 2,505,719 18.91
Vanguard FTSE U.K. All Share Index Unit Trust 8,565 2,020,038 15.25
Vanguard Emerging Markets Stock Index Fund 3,292 834,142 6.30
Vanguard FTSE North America UCITS ETF 9,649 799,572 6.03
Vanguard FTSE Developed Europe ex-U.K. Equity Index Fund 2,096 676,100 5.10
Vanguard FTSE 100 UCITS ETF 18,358 634,087 4.79
Vanguard Japan Stock Index Fund 1,320 346,282 2.61
Vanguard Pacific ex-Japan Stock Index Fund 547 191,972 1.45
10,561,848 79.72
Fixed Income Collective Investment Schemes 20.26% (31 March 2021: 20.04%)
Vanguard Global Bond Index Fund 12,180 1,871,115 14.12
Vanguard U.K. Government Bond Index Fund 2,908 484,990 3.66
Vanguard U.K. Investment Grade Bond Index Fund 3,276 329,060 2.48
2,685,165 20.26
Portfolio of Investments 13,247,013 99.98
Net Other Assets 2,202 0.02
Net Assets Attributable to Shareholders 13,249,215 100.00
100
Vanguard Target Retirement 2065 Fund
Balance Sheet
As at As at
31 March 2022 31 March 2021
Note1 (£) (£)
Assets:
Financial Assets 13,247,013 5,470,533
Current Assets
Debtors 12 45,443 31,841
Cash and Bank Balances 13 5,473 17,514
Total Assets 13,297,929 5,519,888
Liabilities:
Creditors
Other Creditors 14 48,714 47,239
Total Liabilities 48,714 47,239
Net Assets Attributable to Shareholders 13,249,215 5,472,649
1 See the Notes to the Financial Statements.
101
Vanguard Target Retirement 2065 Fund
Distribution Table
For the year ended 31 March 2022
Final distribution payable 31 May 2022
102
Notes to the Financial Statements
1. General Information
Vanguard LifeStrategy Funds ICVC is an open-ended investment company and was incorporated on 16 June 2011 and under the laws of
England and Wales. The address of the ACD is the Walbrook Building, 25 Walbrook, London EC4N 8AF, United Kingdom.
To achieve the targeted allocation of assets of their Investment Objectives, the Funds invest more than 80% of their assets in selected
related party (“affiliated”) collective investment schemes.
2. Basis of Presentation
The financial statements have been prepared in accordance with Financial Reporting Standard (“FRS”) 102 and the Statement of
Recommended Practice for UK Authorised Funds (the “SORP 2014 as amended in 2017”) issued by the Investment Management Association
(now known as the Investment Association) in May 2014.
The financial statements have been prepared on a going concern basis, subject to the historical cost convention, as modified by the
revaluation of financial assets and liabilities at fair value through profit or loss ("FVTPL").
(b) Revenue Recognition. Income arising from collective investment schemes is recognised when the securities are quoted ex-dividend or
when sufficient relevant and reliable information that establishes a right to this income has been obtained. Where income from collective
investment schemes is reported in lieu of a distribution, such as when the shares are held in an accumulation form, the amount reported is
recognised as income. Equalisation returned with the distribution is deducted from the cost of the investment and does not form part of the
distributable income.
The treatment of returns from financial derivative instruments is dependent upon the nature of the transaction and considers both motives
and circumstances to determine whether returns should be treated as capital or revenue. Where positions are undertaken to protect or
enhance capital, the returns are considered capital. Similarly, where positions are undertaken for generating or protecting revenue, the
returns are considered revenue.
In the case of debt securities, any difference between acquisition cost and maturity value is recognised as revenue over the life of the
security using the effective yield basis of calculating amortisation. With respect to inflation-linked securities, changes in the maturity value are
calculated by reference to inflation and recorded as revenue. If required, adjustments are made to ensure the total return of the bond is
treated as revenue.
(c) Treatment of Expenses. All expenses, except those relating to the purchase and sale of investments, are charged against revenue and
are recognised on an accrual basis.
To the extent any Fund invests in affiliated products, the ACD intends to reduce its annual management charge in amount equal to similar
charges already incurred by an underlying fund. This reduction represents the entire amount of the synthetic element and is recognised on an
accrual basis as a reduction of expenses.
(d) Taxation. Corporate tax is payable at current tax rates on the excess taxable revenue over allowable expenses. Deferred taxation is
provided on all timing differences that have originated but not reversed by the reporting date. Deferred tax is measured at the rates expected
to apply for the period in which the timing differences will reverse. Deferred taxes are not discounted to reflect the time value of money and
are only recognised to the extent they are expected to crystallise.
Additionally, the Funds incur withholding taxes imposed by certain foreign countries on investment income. Such income is recorded gross of
the related withholding taxation, which is shown as a separate tax expense in the Statement of Total Return.
Recognition and Derecognition. Purchases and sales of financial instruments are recognised on the trade date, being the date on which
the purchase or sale is executed. Financial instruments are initially recognised when the Funds become party to the contractual provisions of
the instrument. Financial instruments are derecognised when the contractual rights to the cash flows from the instruments expire, or when
substantially all the risks and rewards of ownership have been transferred.
103
Notes to the Financial Statements (continued)
Collective Investment Schemes. Collective investment schemes are valued at their single price if a single price for buying and selling units
or shares is quoted and the bid price if separate buying and selling prices are quoted. If, in the opinion of the ACD no reliable price exists at
the Fund’s valuation point or the price has been affected by events occurring between the close of the collective investment scheme’s
primary market and the Fund's valuation point, the ACD will apply a value that is fair and reasonable. When a fair value price is employed, the
price may differ from quoted or published prices for the same collective investment scheme.
Fixed Income. Fixed income securities traded in recognised markets are valued using the latest bid prices on the securities exchange in
which they are principally traded or using valuations based on a matrix system (which considers such factors as security prices, yields,
maturities, and ratings), both as furnished by independent pricing services.
Derivatives. Futures contracts are valued in an active market if quoted prices are readily and regularly available; this represents the amount
that would be required to close the position.
(f) Fair Value Hierarchy. The Funds classify financial instruments measured at fair value using a three-level hierarchy. Instruments are
categorised in their entirety based on the lowest level input that is significant to the fair value measurement. Assessing the significance and
observability of a particular input requires significant judgement specific to an asset or liability. Inputs are considered to be observable when
they are readily available, regularly distributed or updated, reliable and verifiable, not proprietary, and provided by independent sources that
are actively involved in the relevant market. Each financial instrument held in a Fund is valued at the close of business on each business day
on the market that in the opinion of the Administrator is the principal market on which such financial instrument is traded.
Level 2 – Other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk,
etc.).
Level 3 – Significant unobservable inputs (including the Fund’s own fair value assumptions).
(g) Transaction Costs. Transaction costs are incremental costs that are directly attributable to the acquisition, issue or disposal of an
investment. These costs include fees and commissions paid to agents, advisers, brokers and dealers. Investments in financial instruments
include transaction costs which form part of the net capital gains/(losses).
(h) Foreign Currency. All transactions in foreign currencies are translated into sterling at the exchange rates prevailing on the date of the
transaction. At the reporting date, monetary assets and liabilities denominated in foreign currencies are translated at the prevailing exchange
rates. Gains and losses arising on translation are included as part of the return and are reported on a net basis.
(i) Cash and Bank Overdrafts. Cash is composed of demand deposits with financial institutions or bank overdrafts. Bank overdrafts, when
applicable, are presented as current liabilities. Cash held or pledged as margin against financial derivative instruments is included within Cash
and Bank Overdrafts on the balance sheet and disclosed separately in the Notes to the Financial Statements as Amounts Held at, or
Overdrafts with, Futures Clearing Houses and Brokers, as applicable.
Margin. Upon entering into futures contracts, cash deposits are required (initial margin) in an amount equal to a certain percentage of the
contract value. Subsequent payments (variation margin) are made or received by the Funds each day.
(j) Swing Pricing. The Funds employ swing pricing as a means to prevent dilution. Swing pricing results from the ACD’s determination to
adjust the Funds’ net asset value, on any dealing day, following a consideration of dealing activity (i.e. level of subscriptions and redemptions)
and the level of costs associated with such activity. A dilution adjustment is exercised only for the purpose of reducing the negative effects of
transaction charges in the interest of the non-dealing shareholders in the Funds and is applied consistently in respect of the Funds, and in
respect of all assets of the Funds. The direction of the swing depends on whether there are net subscriptions or net redemptions in the
Funds on the relevant dealing day, while the magnitude of the swing is based on pre-determined estimates of the average execution costs in
the relevant asset classes in which the Funds are invested.
There were no dilution adjustments applied during the year ended 31 March 2022 (31 March 2021: None).
4. Distribution Policies
(a) Basis of Distribution. Where revenue from investments exceeds expenses of the share class, a distribution will be made to that share
class. Should expenses exceed revenue, there will be no distribution and the shortfall will be transferred to capital. Revenue attributable to
Accumulation shareholders is retained at the end of each distribution period and represents a reinvestment of revenue. All remaining revenue
is distributed in accordance with the Collective Investment Schemes sourcebook. Additionally, some or all of the expenses are charged to
capital for distribution purposes. The amount charged may vary between accounting periods.
(b) Equalisation. Equalisation occurs to reflect the pro rata payment of distributions based on the time period over which shares have been
owned by an investor. If shares are purchased when the Fund has accrued income but has not yet declared a distribution, the Fund will credit
to the equalisation account the portion of the purchase price representing income accrued but directly attributable to those shares.
Conversely, if shares are redeemed when the Fund has accrued income but has not yet declared a distribution, the Fund will deduct from the
equalisation account the portion of the redemption price representing income accrued but directly attributable to those shares.
104
Notes to the Financial Statements (continued)
The Funds seek to achieve their investment objectives predominantly through investment in passive, index-tracking collective investment
schemes. For index-tracking collective investment schemes, the investment objective is to seek to track as closely as reasonably possible the
performance of the benchmark indices. In order to achieve this objective, an index-tracking collective investment scheme invests primarily in
securities held in the relevant benchmark index. An index-tracking collective investment scheme places limitations on the amount by which a
holding may deviate from the proportion in the benchmark to limit the market risk from mismatched positions.
All investments present a risk of loss of capital. The ACD assesses the Funds’ market risk volatility to ensure that the effect of using financial
derivative instruments is not significant enough to cause disproportionate losses to the Funds’ overall value. The ACD moderates this risk
through careful selection of financial instruments. The ACD manages this risk through a combination of risk metrics.
(b) Allocation Risk. The Asset Allocation Funds pursue an investment strategy whereby the Investment Manager has discretion over the
composition of the Funds' portfolio holdings and is not managed with reference to a benchmark index. However, the investment manager
manages the Funds through pre-determined asset allocations to equity and fixed income securities using a combination of underlying
collective investment schemes. Asset allocation risk occurs when the Asset Allocation Funds are not able to invest the pre-determined
allocations. The Investment Manager moderates this risk through careful selection of the underlying collective investment schemes chosen
for the pre-determined allocation.
(c) Currency Risk. Currency risk is the risk that the value of the Funds’ investments will fluctuate as a result of changes in currency
exchange rates. Local interest rates and monetary policy, as well as other government fiscal and labour policies, also can adversely impact
the Fund’s currency values. Currency risk is not significant to the Funds.
(d) Interest Rate Risk. The Funds may invest in fixed income securities either directly or indirectly through index-tracking collective
investment schemes. Revenue may be affected by changes in interest rates relevant to particular securities or as a result of the ACD being
unable to secure similar returns on the expiry of contracts or sale of securities. The value of fixed rate securities may be affected by interest
rate movements or the expectation of such movements in the future. Interest receivable on bank deposits or payable on bank overdraft
positions will also be affected by fluctuations in interest rates.
Only Vanguard Target Retirement 2015 Fund, Vanguard Target Retirement 2020 Fund and Vanguard Target Retirement 2025 Fund hold direct
investments in fixed income securities; however, the exposure for Vanguard Target Retirement 2020 and Vanguard Target Retirement
2025 Fund is not significant to the portfolio.
The interest rate risk profile of financial assets and liabilities as at 31 March 2021 was as follows:
105
Notes to the Financial Statements (continued)
Management of Market Risk (Including Market Price, Allocation Risk, Foreign Currency and Interest Rate Risks). The Investment
Adviser performs daily reviews of performance and portfolio attributes, such as sector diversification, maturity and credit quality, and makes
adjustments where necessary to ensure that the risk components closely match those of the respective investment policies. Potential
investment policy deviations are raised and discussed by the Investment Adviser and the Administrator for investigation and resolution.
Market impact, currency discrepancies and interest rate exposure are investigated as possible causes. Currency positions are reconciled daily
and discrepancies are immediately resolved. Procedures are established with the Investment Adviser to trade currency as closely as possible
to the close of the markets, so as to obtain exchange rates that closely approximate the rates used in the valuation.
Significant market disruptions, such as those caused by pandemics (e.g., COVID-19 pandemic), natural or environmental disasters, war (e.g.,
Russia's invasion of Ukraine), acts of terrorism, or other events, can adversely affect local and global markets and normal market operations.
Any such disruptions could have an adverse impact on the value of the Funds' investments and Fund performance.
(e) Market Risk Sensitivity Analysis. Market risk exposures to the Funds are measured using value-at-risk ("VaR"), which estimates the
maximum expected loss over a defined period given a specified confidence level. The VaR methodology is a statistically defined, probability-
based approach that takes into account estimates for market volatilities and correlations between assets in the portfolio. Risks can be
measured consistently across markets and products, and risk measures can be aggregated to arrive at a single risk number. For the purpose
of this annual report, a one-year historical (realised) absolute VaR calculation has been completed for each Fund as set out below. VaR as
presented is based on historical performance through 31 March 2022 and does not reflect the effects of any market volatility since that date.
The calculation includes a 95% confidence interval with a 260-trading-day (one-year) VaR period. That is, under normal market conditions and
assuming no changes to Fund holdings, there is a 95% probability that the value of Fund assets will not decrease by more than the
calculated value over a one-year period.
VaR as presented is based on historical performance through 31 March 2022 and does not reflect the effects of any market volatility since
that date.
Exposure. Global exposure is measured using the commitment approach, which considers the full constituents of the portfolio. The
Investment Adviser will observe the regulatory limit and any internal risk limits which may be appropriate for the portfolio.
The use of financial derivative instruments creates a higher degree of risk exposure. In particular, financial derivative instrument contracts can
be highly volatile, and the amount of initial margin is generally small relative to the size of the contract so that transactions may be leveraged
in terms of market exposure. A relatively small market movement may have a potentially larger impact on financial derivative instruments
than on standard securities. Leveraged derivative positions can therefore increase volatility. The leverage is calculated on a gross exposure
basis, by taking the sum of the notional values of the financial derivative instruments, without netting, and is expressed as a percentage of
the net asset value. Leverage was not significant during the year.
The Funds may use equity index futures only for efficient portfolio management. Index futures are used to equitise cash holdings from
inflows and outflows and also anticipated cash flows (e.g. dividend receivables).
(f) Liquidity Risk. Liquidity risk is the risk that sufficient cash cannot be raised to meet liabilities when due. One of the key liquidity factors
influencing the Funds is exposure to cash redemptions of redeemable shares. Hence the Funds invest in collective investment schemes for
which the large majority of their underlying investments are traded in active markets and can ordinarily be readily disposed. However, liquidity
risk will occur if an issuer becomes credit-impaired or if the relevant market becomes illiquid. In such a case, it may not be possible to initiate
or liquidate a position at a price deemed by the ACD to be demonstrating fair value. Liquidity risk may be temporary or may last for extended
106
Notes to the Financial Statements (continued)
periods. The Funds primarily invest in underlying index-tracking collective investment schemes that form part of their respective target
allocation. The Funds are exposed to withdrawals and contributions that are invested in order to meet the investment objective of the Funds.
The Funds may use index futures contracts to a limited extent, to maintain liquidity and minimise transaction costs. The Funds may equitise
cash holdings from inflows and outflows by purchasing futures contracts to immediately invest incoming cash in the market, or by selling
futures in response to cash outflows, thereby simulating a fully invested position in the target allocation while maintaining a cash balance for
liquidity.
Management of Liquidity Risk. In order to meet redemption requests and raise cash from the portfolio, the Investment Adviser receives
daily reports of capital share activity from the Administrator. The Investment Adviser incorporates cash forecasts into the daily management
of the portfolio and monitors cash balances daily.
Subject to certain circumstances as detailed in the Prospectus, negative impacts to liquidity or transaction costs caused by significant
shareholder redemptions may be mitigated through the Funds’ available liquidity measures including, but not limited to, the use of (a) it’s
swing pricing policies, (b) distribution of underlying investments rather than cash, subject to certain conditions, in which case the shareholder
may bear the cost of charges incurred in connection with the sale of such underlying investments, (c) limiting the maximum amount of daily
redemptions when total redemption requests for the day exceed 10%, or (d) temporary suspension of dealing in shares. Should the Funds
require, they also have access to a syndicated line of credit for temporary or emergency purposes (as disclosed in Note 21).
(g) Credit Risk. Vanguard Target Retirement 2015 Fund, Vanguard Target Retirement 2020 Fund and Vanguard Target Retirement 2025 Fund
invest in government bonds, where credit risk is negligible because of the low risk of the UK Treasury defaulting on interest payments or
maturities. The remaining funds invest in only equity and fixed income securities through underlying collective investment schemes. These
securities are not credit instruments, and therefore these Funds are not directly exposed to credit risk. When efficient portfolio management
techniques are employed, exchange-traded index futures, which are subject to daily valuation, are used to minimise counterparty risk.
Management of Credit Risk. Where applicable, each Fund's exposure to credit risk is considered negligible, any action performed by the
Investment Adviser would be minimal.
107
Notes to the Financial Statements (continued)
Sales Excluding
Transaction Costs:
Debt Securities — — — — — 200,089 491,092 150,354
Collective Investment
Schemes 276,917,048 686,737,206 631,395,193 163,415,633 74,596,648 1,836,029 8,555,479 7,266,833
Sales in the Year Before
Transaction Costs 276,917,048 686,737,206 631,395,193 163,415,633 74,596,648 2,036,118 9,046,571 7,417,187
Sales Including
Transaction Costs 276,917,048 686,737,206 631,395,193 163,415,633 74,596,648 2,036,118 9,046,571 7,417,187
108
Notes to the Financial Statements (continued)
Sales Excluding
Transaction Costs:
Debt Securities — — — — — — — —
Collective Investment
Schemes 5,701,260 4,594,462 4,172,776 2,212,474 1,643,399 1,080,193 594,300 1,026,877
Sales in the Year Before
Transaction Costs 5,701,260 4,594,462 4,172,776 2,212,474 1,643,399 1,080,193 594,300 1,026,877
Sales Including
Transaction Costs 5,701,260 4,594,462 4,172,776 2,212,474 1,643,399 1,080,193 594,300 1,026,877
There were no commissions, taxes or fees related with Collective Investment Schemes or Debt Securing transactions during the year.
At 31 March 2022 there were no separately identifiable dealing spreads as the Funds invest in single-priced collective investment schemes,
except for Vanguard Target Retirement 2015 Fund, Vanguard Target Retirement 2020 Fund and Vanguard Target Retirement 2025 Fund, which
also invest in debt securities, and had an average portfolio dealing spread of 0.03%, 0.03%, and 0.03%, respectively.
Sales Excluding
Transaction Costs:
Debt Securities — — — — — 365,852 757,394 —
Collective Investment
Schemes 94,548,553 247,573,933 178,354,141 262,347,099 447,128,641 1,873,673 6,824,963 9,025,058
Trades in the Year Before
Transaction Costs 94,548,553 247,573,933 178,354,141 262,347,099 447,128,641 2,239,525 7,582,357 9,025,058
Commissions and Fees
Debt Securities — — — — — — — —
Collective Investment
Schemes — — — (5,164) (9,781) (4) (32) (97)
Total Commissions and
Fees — — — (5,164) (9,781) (4) (32) (97)
Total Sales Transaction
Costs — — — (5,164) (9,781) (4) (32) (97)
Sales Including
Transaction Costs 94,548,553 247,573,933 178,354,141 262,341,935 447,118,860 2,239,521 7,582,325 9,024,961
1 Transaction costs associated with Collective Investment Schemes and Debt Securities was not material.
109
Notes to the Financial Statements (continued)
Sales Excluding
Transaction Costs:
Debt Securities — — — — — — — —
Collective Investment
Schemes 8,601,028 7,616,779 8,063,397 5,260,787 3,745,067 2,125,015 624,519 872,937
Trades in the Year Before
Transaction Costs 8,601,028 7,616,779 8,063,397 5,260,787 3,745,067 2,125,015 624,519 872,937
Commissions and Fees
Collective Investment
Schemes (114) (124) (119) (106) (69) (44) (8) (8)
Total Commissions and
Fees (114) (124) (119) (106) (69) (44) (8) (8)
Total Sales Transaction
Costs (114) (124) (119) (106) (69) (44) (8) (8)
Sales Including
Transaction Costs 8,600,914 7,616,655 8,063,278 5,260,681 3,744,998 2,124,971 624,511 872,929
1 Transaction costs associated with Collective Investment Schemes and Debt Securities was not material.
Total transaction costs expressed as a percentage of transaction value for the 2020-21 year:
Total transaction cost expressed as a percentage of average net assets for the 2020-21 year:
Commissions — — — 0.00 0.00 0.00 0.00 0.00
Total transaction cost expressed as a percentage of average net assets for the 2020-21 year:
Commissions 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
At 31 March 2021 there were no separately identifiable dealing spreads as the Funds invest in single-priced collective investment schemes,
except for Vanguard Target Retirement 2015 Fund, Vanguard Target Retirement 2020 Fund and Vanguard Target Retirement 2025 Fund, which
also invest in debt securities, and had an average portfolio dealing spread of 0.02%, 0.02%, and 0.02%, respectively.
110
Notes to the Financial Statements (continued)
8. Revenue
Revenue for the 2021-22 year:
9. Expenses
Expenses for the 2021-22 year:
111
Notes to the Financial Statements (continued)
112
Notes to the Financial Statements (continued)
10. Taxation
(a) Tax Charge Analysis
Analysis of the tax charge for the 2021-22 year:
113
Notes to the Financial Statements (continued)
114
Notes to the Financial Statements (continued)
11. Distributions
The distributions take account of equalisation received on the creation of shares and deducted on cancellation of shares, and comprise:
115
Notes to the Financial Statements (continued)
12. Debtors
Debtors as at 31 March 2022:
116
Notes to the Financial Statements (continued)
117
Notes to the Financial Statements (continued)
118
Notes to the Financial Statements (continued)
Authorised Corporate Director. Vanguard Investments UK, Limited, is the ACD and acts as a principal in respect of all transactions of
shares in the Funds. For its services, the ACD receives a fixed single fee per share class (the “Management Charge”) calculated on a daily
basis per share class and paid monthly. Out of the fees received, the ACD pays for any sub-advisers, as well as the costs of administration
including audit, depositary, legal, registration and regulatory fees associated with the Funds. As a result, the ACD anticipates the ongoing
charges figure (“OCF”) of each share class will closely track the Management Charge. The ACD, in its sole discretion, may voluntarily waive
all or part of its fee, and any such waiver could be discontinued at any time and without notice.
The Funds invest in affiliated collective investment schemes, and the Net Capital Gains/(Losses) and Revenue from these collective
investment schemes, as disclosed in Notes 6 and 8, respectively, are derived from related party holdings. Additionally with respect to the
Funds, the ACD intends to reduce its annual management charge in an amount equal to similar charges already incurred in the underlying
affiliated collective investment schemes. This reduction is voluntary and at the sole discretion of the ACD and could be discontinued at any
time without notice. Amounts due from or to the ACD are disclosed in Notes 12 and 14. Amounts earned by the ACD in respect to annual
management charges are disclosed in Note 9.
119
Notes to the Financial Statements (continued)
Directors' Fees. Aggregate director fees paid by the ACD out of the OCF for the year ended 31 March 2022 were £248,270 (31 March 2021:
£212,410), of which £0 (31 March 2021: Nil) was outstanding at the year-end.
Investment Adviser. Vanguard Global Advisers, LLC, is the Investment Adviser to the Funds and is compensated by the ACD. The
Investment Adviser or the ACD, at their discretion, may appoint other companies from within The Vanguard Group of Companies to provide
investment management and advisory services with respect to the Funds.
The following amounts were held by affiliates of Vanguard Investments UK, Limited, expressed as a percentage of total net assets:
120
Notes to the Financial Statements (continued)
121
Notes to the Financial Statements (continued)
As at 31 March 2021:
The Funds had no borrowings outstanding at 31 March 2022 or at any time during the year then ended (31 March 2021: none).
Management has determined that no other events or transactions occurred subsequent to 31 March 2022, that would require recognition or
disclosure in these financial statements.
122
Further Information
Recipients of this document should not treat the contents as advice relating to legal, taxation or investment matters and should consult their
own professional advisers concerning the acquisition, holding or disposing of investments in the Funds.
Past performance is not necessarily indicative of future performance, and the value of the shares and income from them may fall as well as
rise. On redemption of shares, investors may receive back an amount less than the original amount of their investment. The assets of the
Funds will be in a variety of currencies, and therefore movements in the value of currencies may affect the value of an investor’s holdings and
the income from the holdings may fluctuate in value in money terms.
Prospectus
The Fund Prospectus, an important document describing each Fund in detail, is available from the ACD, which is responsible for the
management and administration of the Funds.
The ACD for Vanguard LifeStrategy Funds ICVC is Vanguard Investments UK, Limited, located at 4th Floor, The Walbrook Building,
25 Walbrook, London EC4N 8AF.
Each of the Target Retirement Funds offers one class of shares: A GBP Accumulation Shares.
Switching
Investors may sell their shares and transfer the proceeds into any of the other Funds by calling our dealing desk on 0800 408 2065.
Distributions
The existing Funds allocate revenue to shareholders once a year, on 31 May.
Publication of Prices
The most recent share prices are published daily on https://global.vanguard.com.
Cross Holdings
On 31 March 2022 there were no shares in any sub-fund held by other sub-funds of the Vanguard LifeStrategy Funds ICVC.
Remuneration Disclosure
The Vanguard UK Consolidation Group publishes annually its Pillar 3 disclosures including certain information on remuneration. The latest
Pillar 3 disclosures can be found at https://global.vanguard.com/documents/pillar3-disclosures.pdf.
Vanguard personnel providing services to the ACD are subject to the Vanguard European Remuneration Policy (the “Remuneration Policy”).
The Remuneration Policy includes the remuneration requirements of the UCITS V Directive (2014/91/EU) (as implemented in the UK). Details
of the Remuneration Policy are available through https://www.vanguard.co.uk/uk/portal/investment-information.jsp, which will be updated
periodically to reflect changes to the policy.
The governance of remuneration within Vanguard Europe is undertaken through a tiered structure, including Vanguard’s Global Remuneration
Committee and the Vanguard European Leadership Team. The Global Remuneration Committee also operates at The Vanguard Group level
and oversees the overall compensation programmes of The Vanguard Group. The Vanguard European Leadership Team is responsible for
implementing the remuneration programmes in accordance with our total rewards philosophy and global organisation, including overseeing
the Remuneration Policy.
The Remuneration Policy provides for an appropriate balance of fixed salary; benefits, such as pension; and annual bonus and long-term
incentive arrangements. Incentive are based on the overall business performance of The Vanguard Group, or individual, team, business unit
and fund performance. The incentive plans are reviewed and approved by the Vanguard European Leadership Team (and other applicable
groups) in order to ensure that plans appropriately assess financial and non-financial performance and do not encourage conflicts of interest,
and to ensure that risk or compliance issues are appropriately reflected.
The Vanguard European Leadership Team also reviews and approves the list of UK UCITS code staff annually. Identified code staff are notified
and understand the code staff responsibilities.
123
Further Information (continued)
Under the UCITS V Directive (as implemented in the UK), the ACD is required to disclose information relating to the remuneration paid to its staff
for the financial year, split into fixed and variable remuneration. The table below presents the aggregate total remuneration paid to staff who
provide services to the Trust and the aggregate total remuneration paid to all relevant UK UCITS code staff.
Total
Remuneration
Headcount1,2 (£000)3
Funds, of which 590 24,818,985
Fixed Remuneration 590 15,397,844
Variable Remuneration 590 9,421,141
Performance Fees n/a n/a
UCITS Code Staff, of which 14 3,558,691
Senior Management 10 3,169,748
Other Code Staff 4 388,943
1 This is the total number of employees who are fully or partly involved in the activities of the Funds.
2 The staff in this table may provide services to other entities within The Vanguard Group.
3 Remuneration disclosed is apportioned based on total assets under management by Vanguard Investments UK, Limited, from total European assets under management.
Remuneration reflects fixed pay (salary) and performance-related pay (annual and long-term incentives). Individual incentive outcomes under
the plans are based on performance assessed by reference to an appropriate balance of quantitative and qualitative measures, such as
behaviour, including compliance with all applicable policies. The individual incentive outcome is fully discretionary and, if appropriate,
outcomes based on financial performance can be overridden based on the qualitative measures.
Assessment of Value
Under rules laid out in COLL 6.6.20R of the Financial Conduct Authority's Handbook, the ACD is required to inform investors annually
whether its funds are providing value to investors and then publish an annual statement summarising the outcome of this process. Details of
the statement are available at https://www.vanguard.co.uk/adviser/adv/about-vanguard/assessment-of-value.
124
Further Information (continued)
125
Directory
1 With effect from 17 November 2021, Katie Smith resigned as a director of Vanguard Investments UK, Limited.
2 With effect from 30 April 2022, Kathleen Bock and Sean Hagerty resigned as directors of Vanguard Investments UK, Limited.
3 Robyn Laidlaw and Paul Jakubowski were appointed as directors on 30 April 2022.
Vanguard Investments UK, Limited
4th Floor, The Walbrook Building
25 Walbrook
London
EC4N 8AF
United Kingdom
Client Services This report is intended for the Funds’ shareholders. It may not be dis-
0800 408 2065 tributed to prospective investors unless it is preceded or accompanied
by the current Fund Prospectus.
Monday to Friday
09.00–17.00 All comparative mutual fund data are from Lipper, a Thomson Reuters
Company, or Morningstar, Inc., unless otherwise noted.