The Fund seeks to track the return of the Bloomberg MSCI Global Aggregate SRI Exclusions Float Adjusted Index hedged into 
Australian dollars (AUD) (Index) before taking into account fees, expenses and tax. 

The Fund aims to hold an appropriate number of securities so as to produce a portfolio risk exposure profile consistent with that of 
the Index. This is generally achieved by holding a representative sample of securities included in the Index or securities that provide 
similar characteristics to those securities in the Index

Benefits of investing in the Vanguard Ethically Conscious Global Aggregate Bond Index Fund (Hedged)

The significant features and benefits of investing in the Fund include:

• Competitive long-term performance - Vanguard's investment approach provides investors with an efficient way to capture long- term market performance.

• Diversification - The Fund provides exposure to a diversified portfolio of securities, which means the Fund is less exposed to the performance fluctuations of individual securities. This moderates the volatility of the portfolio and smooths out' investment returns over time. The Fund provides exposure to a wide selection of available securities in the relevant index, generally holding significantly more securities than most active funds with the same benchmark. From time to time, however, the number of securities in a given index may reduce due to factors such as index rebalancing.

• Low-cost investing - The Fund has low ongoing fees as we strive to minimise the costs of managing and operating the Fund. The Fund typically has low portfolio turnover resulting in low trading costs such as brokerage and other transaction costs.

The significant features and benefits of investing with Vanguard include:

• Stability and experience - The Vanguard Group, Inc. established the world's first index mutual fund for individual investors in 1976 and has been a leader in low-cost index investing ever since. In Australia, Vanguard leverages the scale, experience and resources of our established global business. Investing in the Fund allows you to access the knowledge and skill of Vanguard as a specialist investment manager.

• Client focus - The Vanguard Group, Inc. was founded on a simple but revolutionary idea - that an investment company should manage the funds it offers in the sole interest of its clients. From rigorous risk management to transparent pricing to plain talk communications, we put our clients' interest first.

• Low costs - Investors can't control the markets, but they can control the costs of investing. Providing low-cost investments isn't a pricing strategy for us. It's how we do business. Vanguard's scale also helps to keep costs low.

Risk level

Medium

Investor suitability

Investors seeking exposure to a diversified portfolio of international fixed interest securities with an ethically conscious screen that is relatively unaffected by currency fluctuations.

Investors seeking exposure to a diversified portfolio of international fixed interest securities with an ethically conscious screen that is relatively unaffected by currency fluctuations

About the Fund

The Fund provides low-cost exposure to high-quality, income-generating securities issued by governments, government-owned entities, government- guaranteed entities, investment-grade corporate issues and securitised assets from around the world.

In constructing the Index, using MSCI research, Bloomberg Barclays (the Index provider) excludes the securities of issuers that engage in activities in, and/or derive revenue (above a threshold specified by the Index provider) from, fossil fuels, nuclear power, alcohol, tobacco, gambling, weapons and adult entertainment. This index methodology also excludes the securities that have a controversy score above a threshold specified by MSCI. Where MSCI has insufficient or no data available to adequately assess a particular security relative to the ethically conscious criteria of the Index, these securities may not be excluded.

Investors should be aware that the index methodology only screens the securities of issuers that are researched by MSCI. The screening process does not review government securities, and certain securitised assets and company structures, particularly government related corporations and non-listed companies. Accordingly, securities issued by non-screened entities may also be contained in the Index that is tracked by the Fund.

The investments in the Fund are predominantly rated BBB- or higher by Standard & Poor's or equivalent ratings agency. The Fund is hedged to Australian dollars so the value of the Fund is relatively unaffected by currency fluctuations.

Investment objective

Vanguard Ethically Conscious Global Aggregate Bond Index Fund (Hedged) - AUD Hedged seeks to track the return of the Bloomberg Barclays MSCI Global Aggregate SRI Exclusions Float Adjusted Index Hedged into Australian dollars before taking into account fees, expenses and tax.

Benefits of investing with Vanguard

Competitive long-term performance 

• Vanguard’s investment approach provides investors with an efficient way to capture long-term market performance.

Diversification

• The Fund invests in a diversified portfolio of securities, which means the Fund is less exposed to the performance fluctuations of individual securities.

Low cost investing 

• The Fund has low ongoing fees as we strive to minimise the costs of managing and operating the Fund.

How we invest your money

The Fund seeks to track the return of the Bloomberg Barclays MSCI Global Aggregate SRI Exclusions Float Adjusted Index hedged into Australian dollars (AUD) (Index) before taking into account fees, expenses and tax.

The Index is a market value weighted index comprised of global investment grade securities (securities) including government, government-related, corporate and securitised fixed rate bonds from both developed and emerging market issuers. Bloomberg Barclays (the Index provider) constructs the index based on ethically conscious criteria with research data supplied to the Index provider by MSCI. Index construction and any securities that are excluded based on the ethically conscious criteria, is independent of Vanguard.

In constructing the Index, using MSCI research, the Index provider excludes the securities of issuers that engage in activities in, and/or derive revenue (above a threshold specified by the Index provider) from, fossil fuels, nuclear power, alcohol, tobacco, gambling, weapons and adult entertainment. This index methodology also excludes the securities that have a controversy score above a threshold specified by MSCI. Where MSCI has insufficient or no data available to adequately assess a particular security relative to the ethically conscious criteria of the Index, these securities may not be excluded.

Investors should be aware that the index methodology only screens the securities of issuers that are researched by MSCI. The screening process does not review government securities, and certain securitised assets and company structures, particularly government related corporations and non-listed companies. Accordingly, securities issued by non-screened entities may also be contained in the Index that is tracked by the Fund.

Further details in relation to the Index including details as to its exact composition, methodology, and exclusions and any revenue thresholds, can be obtained by visiting Bloomberg Barclays at www.bloomberg.com/professional/product/indices/bloomberg- barclays-indices-fact-sheets-publications/.

The Fund aims to hold an appropriate number of securities so as to produce a portfolio risk exposure profile consistent with that of the index. This is generally achieved by holding a representative sample of securities included in the index or securities that provide similar characteristics to those securities in the index. Security weightings in the Fund may vary from the index weightings. The Fund may exclude certain securities that are included in the index or may invest in securities that have been or are expected to be included in the index. The Fund may gain exposure to securities directly or through interests in other funds, such as exchange traded funds.

The Fund may utilise derivative instruments including futures traded on a licensed exchange and over the counter derivative financial instruments. Derivative instruments are used to manage the overall interest rate and credit risk exposure of the Fund where it is either unable to invest directly in physical securities or is in the Fund's best interest to do so. Derivative financial instruments will not be used to leverage the assets of the Fund. Vanguard will seek to hedge the Fund's currency exposure back to the Australian dollar using forward foreign exchange contracts.

Strategic asset allocation*

• International shares (hedged to AUD) 100%

*This is a targeted strategic asset allocation. In addition, cash may be held for the purposes of liquidity management and derivatives may be used to manage market exposure.