https://www.sec.gov/Archives/edgar/data/1409957/000093247119007247/supplementmarketneutral.htm497 1 supplementmarketneutral.htm MARKET NEUTRAL FUND INVESTOR SHARES SUPPLEMENT
Vanguard Market Neutral Fund Supplement Dated August 1, 2019, to the Prospectus Dated
April 26, 2019
The minimum investment amount required to open and maintain a Fund account for
Investor Shares will be reduced from $250,000 to $50,000. The account minimum
change is expected to become effective on or about November 4, 2019.
The Fund's investment objective, strategies, and policies will remain unchanged.
Prospectus Text Changes
The following replaces similar text under the heading “Purchase and Sale of Fund
Shares” in the Fund Summary section:
You may purchase or redeem shares online through our website (vanguard.com), by
mail (The Vanguard Group, P.O. Box 1110, Valley Forge, PA 19482-1110), or by
telephone (800-662-2739). The minimum investment amount required to open and
maintain a Fund account for Investor Shares is $50,000. The minimum investment
amount required to add to an existing Fund account is generally $1. Financial
intermediaries and institutional clients should contact Vanguard for information on
special eligibility rules that may apply to them regarding Investor Shares. If you are
investing through an intermediary, please contact that firm directly for more
information regarding your eligibility. If you are investing through an employer-
sponsored
retirement or savings plan, your plan administrator or your benefits office
can provide you with detailed information on how you can invest through your plan.
The following replaces similar text under the heading “Account Minimums for
Investor Shares” in the Investing With Vanguard section:
To open and maintain an account. $50,000. Financial intermediaries and institutional
clients should contact Vanguard for information on special eligibility rules that may
apply to them regarding Investor Shares. If you are investing through an intermediary,
please contact that firm directly for more information regarding your eligibility.
To add to an existing account. Generally $1.
© 2019 The Vanguard Group, Inc. All rights reserved.
Vanguard Marketing Corporation, Distributor. PS 634 082019
https://www.sec.gov/Archives/edgar/data/313850/000093247119007246/alternativestrategies497.htm497 1 alternativestrategies497.htm ALTERNATIVE STRATEGIES 497
Vanguard Alternative Strategies Fund Supplement Dated August 1, 2019, to the Prospectus Dated
February 27, 2019
Important Changes to the Fund
The Fund's Board of Trustees has approved changes to the investment
objective and benchmark of the Fund. The Fund's investment objective will
change to: “The Fund seeks to generate returns that have low correlation with
the returns of the stock and bond markets and seeks capital appreciation.” The
Fund's performance benchmark will change from the FTSE 3-month US T-Bill
Index +4% to the FTSE 3-month US T-Bill Index.
The Fund will also adopt a risk methodology that targets a fixed volatility range
of 5-7% measured at the portfolio level. However, the Fund's volatility from time
to time may move outside this targeted range.
The account minimum required to open and maintain an account will be reduced
from $250,000 to $50,000.
The investment objective and benchmark changes for the Fund, together with
the risk methodology adoption, are expected to become effective on or about
November 1, 2019. The Fund's registration statement will be updated at that
time to reflect these changes. The account minimum change is expected to
become effective on or about November 4, 2019.
Prospectus Text Changes
The following replaces similar text under the heading “Investment Objective” in
the Fund Summary section:
The Fund seeks to generate returns that have low correlation with the returns of
the stock and bond markets and seeks capital appreciation.
The following paragraph is added after the third paragraph under the heading
“Principal Investment Strategies” in the Fund Summary section:
The Fund has adopted a risk methodology that targets a fixed volatility range of
5-7% measured at the portfolio level. However, the Fund's volatility from time to
time may move outside this targeted range.
The following replaces similar text under the heading “Annual Total Returns”:
The following bar chart and table are intended to help you understand the risks of
investing in the Fund. The bar chart shows how the performance of the Fund has
varied from one calendar year to another over the periods shown. The table
shows how the average annual total returns of the Fund compare with those of a
relevant market index, which has investment characteristics similar to those of the
Fund. Effective November 1, 2019, the FTSE 3-month US T-Bill Index +4% was
replaced with the FTSE 3-month US T-Bill Index in order to align with the Fund's
investment objective and risk methodology. The Spliced Alternative Strategies
Index reflects the performance of the FTSE 3-month US T-Bill Index +4% through
October 31, 2019, and the FTSE 3-month US T-Bill Index thereafter. Keep in mind
that the Fund's past performance (before and after taxes) does not indicate how
the Fund will perform in the future. Updated performance information is available
on our website at vanguard.com/performance or by calling Vanguard toll-free at
800-662-7447....
