Investment information and Remuneration policy
Products and services described in this website may not be suitable for all users.
Investment risk information
The value of investments, and the income from them, may fall or rise and investors may get back less than they invested.
Some funds invest in securities which are denominated in different currencies. Movements in currency exchange rates can affect the return of investments.
Charges are deducted from capital (not income). Whilst this may increase the level of income paid, it will result in capital erosion and will constrain growth.
The fund(s) may invest in financial derivative instruments that could increase or reduce exposure to underlying assets and result in greater fluctuations of the fund's Net Asset Value. Some derivatives give rise to increased potential for loss where the fund's counterparty defaults in meeting its payment obligations.
Some funds invest in emerging markets which can be more volatile than more established markets. As a result the value of your investment may rise or fall. Investments in smaller companies may be more volatile than investments in well-established blue chip companies.
ETF shares can be bought or sold only through a broker. Investing in ETFs entails stockbroker commission and a bid- offer spread which should be considered fully before investing.
The Vanguard Target Retirement Funds and or Vanguard LifeStrategy® Funds may invest in Exchange Traded Fund (ETF) shares.
Funds investing in fixed interest securities carry the risk of default on repayment and erosion of the capital value of your investment and the level of income may fluctuate. Movements in interest rates are likely to affect the capital value of fixed interest securities. Corporate bonds may provide higher yields but as such may carry greater credit risk increasing the risk of default on repayment and erosion of the capital value of your investment. The level of income may fluctuate and movements in interest rates are likely to affect the capital value of bonds.
The content contained within these web pages is not to be regarded as an offer to buy or sell or the solicitation of any offer to buy or sell securities in any jurisdiction where such an offer or solicitation is against the law, or to anyone to whom it is unlawful to make such an offer or solicitation, or if the person making the offer or solicitation is not qualified to do so. The information does not constitute legal, tax, or investment advice. Potential investors are urged to consult their professional advisers on the implications of making an investment in, holding or disposing of [units/shares] of, and the receipt of distribution from any investment.
Vanguard Investment Series plc and Vanguard Funds plc have been authorised by the Central Bank of Ireland as a UCITS and has been registered for public distribution in certain EU countries. Prospective investors are referred to the Funds' prospectus for further information. Prospective investors are also urged to consult their own professional advisors on the implications of making an investment in, and holding or disposing shares of the Funds and the receipt of distributions with respect to such shares under the law of the countries in which they are liable to taxation.
The Manager of Vanguard Investment Series plc and Vanguard Funds plc is Vanguard Group (Ireland) Limited. Vanguard Asset Management, Limited is a distributor of Vanguard Investment Series plc and Vanguard Funds plc
For further information on the fund's investment policy, please refer to the Key Investor Information Document ("KIID"). The KIID and the Prospectus for these funds are available from Vanguard via our website https://global.vanguard.com/.
The Authorised Corporate Director for Vanguard LifeStrategy Funds ICVC is Vanguard Investments UK, Limited. Vanguard Asset Management, Limited is a distributor of Vanguard LifeStrategy Funds ICVC. The Authorised Corporate Director for Vanguard Investment Funds ICVC is Vanguard Investments UK, Limited. Vanguard Asset Management, Limited is a distributor of Vanguard Investment Funds ICVC.
The Manager of Vanguard FTSE U.K. All Share Index Unit Trust ('Trust') and Vanguard FTSE 100 Index Unit Trust ('Trust') is Vanguard Investments UK, Limited. Vanguard Asset Management, Limited is a distributor of Vanguard FTSE U.K. All Share Index Unit Trust and Vanguard FTSE 100 Index Unit Trust. The Key Investor Information Document ("KIIDs") and the Prospectus for Vanguard FTSE U.K. All Share Index Unit Trust and Vanguard FTSE 100 Unit Trust are available, on request, via firstname.lastname@example.org or telephone 0800 032 3731.
The Central Bank of Ireland has granted authorisation for the Vanguard U.S. Treasury Inflation-Protected Securities Index Fund, Vanguard USD Treasury Bond UCITS ETF, Vanguard Eurozone Inflation Linked Bond Index Fund, Vanguard Japan Government Bond Index Fund, Vanguard U.K. Gilt UCITS ETF, Vanguard UK Government Bond Index Fund and the Vanguard U.S. Government Bond Index Fund to invest up to 100% of net assets in different Transferable Securities and Money Market Instruments issued or guaranteed by any EU Member State, its local authorities, non-EU Member States or public international bodies of which one or more EU Member States are members. As at 31 December 2018, the Vanguard Eurozone Inflation Linked Bond Index Fund invests more than 35% of its scheme property in transferable securities and money market instruments issued or guaranteed by France. The Vanguard Japan Government Bond Index Fund invests more than 35% of its scheme property in transferable securities and money market instruments issued or guaranteed by Japan. The Vanguard UK Government Bond Index Fund invests more than 35% of its scheme property in transferable securities and money market instruments issued or guaranteed by the UK. The Vanguard U.K. Gilt UCITS ETF invests more than 35% of its scheme property in transferable securities and money market instruments issued or guaranteed by the UK. The Vanguard U.S. Government Bond Index Fund invests more than 35% of its scheme property in transferable securities and money market instruments issued or guaranteed by the US. The Vanguard USD Treasury Bond UCITS ETF invests more than 35% of its scheme property in transferable securities and money market instruments issued or guaranteed by the US.
As at 31 December 2018, the Vanguard U.K. Long Duration Gilt Index Fund and the Vanguard U.K. Inflation-Linked Gilt Index Fund invests more than 35% of its scheme property in transferable securities and money market instruments issued or guaranteed by the UK.
Vanguard Asset Management, Limited only gives information on products and does not give investment advice based on individual circumstances. If you have any questions related to your investment decision or the suitability or appropriateness for you of the product[s] described on this website, please contact your financial adviser.
Remuneration Policies and Practices
Vanguard Investment UK, Limited
The Vanguard Group's unique "mutual" structure is a key factor in the organisation's success, and aligns the interests of Vanguard and its staff (referred to as "crew") with those of its clients. This structure, and the Vanguard Group's culture and values, set the stage for Vanguard's global total rewards philosophy, which is based on the principle that "crew win when clients win" and aligns the crew's remuneration with business strategy and the investment experience of fund shareholders.
This philosophy is supported by the Vanguard European Remuneration Policy (the "Remuneration Policy"), which is designed to ensure that remuneration policies and practices within the consolidated Vanguard UK group ("Vanguard Europe") are consistent with, and promote, sound and effective risk management, and are in line with the business strategy and objective of the group and the interests of Vanguard Europe and its stakeholders.
Vanguard Europe is subject to the "IFPRU Remuneration Code" (Chapter 19A of the Senior Management Arrangement Systems and Controls ("SYSC") handbook), and Vanguard Investments UK, Limited is subject to the "UCITS Remuneration Code" (Chapter 19E of the SYSC handbook).
The Remuneration Policy is overseen and implemented by Vanguard's European Remuneration Committee ("ERC"), which is comprised of the Head of Vanguard Europe, the Head of Total Rewards of the Vanguard Group, the Head of Human Resources for Vanguard Europe, and a number of members of the Total Rewards team. Vanguard's European Compliance and Risk functions provide input and assistance to the ERC as required.
Additional levels of oversight are provided by Vanguard's Global Remuneration Committee, and the Compensation Committee of The Vanguard Group, Inc. (which is comprised solely of independent directors).
As part of the operation of the Remuneration Policy, crew that constitute "Remuneration Code Staff" are identified and notified of their status. Remuneration Code Staff comprise senior management, risk-takers, crew members engaged in control functions and any crew members receiving total remuneration that takes them into the same remuneration bracket as senior management and risk-takers, whose professional activities have a material impact on the firm's risk profile.
Compensation elements consist of an appropriate balance of salary; benefits, including pension, life assurance and health insurance; and participation in bonus arrangements, depending on role and seniority. These include bonus arrangements designed to reward crew by reinforcing Vanguard Europe's collective interest in the Vanguard Group's long-term growth and success by ensuring that a portion of individual compensation is linked to overall performance of the Vanguard Group, and Vanguard Europe, within a responsible level of risk. Bonus arrangements for certain crew are designed to reward individual, team, business unit and fund performance by reference to both quantitative and qualitative metrics and, for certain senior crew members, bonuses may be deferred over three to five years, with the vesting amounts linked to movements in the earnings of the Vanguard Group. Vanguard may, in exceptional circumstances, provide guaranteed bonus amounts for new hires who join part way through a bonus year and only for that bonus year; and may, if deemed appropriate, offer a buy-out award to a new joiner provided that the terms of such award will reflect those being bought out.
Crew that are designated as Remuneration Code Staff are subject to deferral bonus arrangements. Forty to sixty percent of variable compensation awarded to Remuneration Code Staff is awarded in a form that is deferred over a period of time which takes into account any holding period recommended to investors in any UCITS concerned and is aligned to the nature of the risks of any such UCITS, which is not less than 3 years, and which does not vest faster than annually on a pro-rata basis. Deferred remuneration may be negatively adjusted, including by being reduced to nil, to ensure that such remuneration vests only if it is sustainable according to the financial situation of Vanguard Europe and is justified according to the performance of the individual, relevant business unit or team, or Vanguard Europe and the UCITS concerned. A minimum of fifty percent of the variable remuneration awarded to Remuneration Code Staff will be awarded in the form of appropriate instruments or an equivalent cash-based form (taking into account the requirements of Principle 5(e) of the UCITS Remuneration Code). This applies to both to the deferred remuneration described above and non-deferred remuneration.
On an at least an annual basis, the Human Resources, Risk, and Compliance functions will liaise to review the implementation of this policy, and will report to the ERC. As part of this review, the Risk function will consider the effectiveness of the methods applied to review and, where appropriate make remuneration recommendations to reflect risk. The ERC will report to Vanguard's Global Remuneration Committee in the event that any material compliance issues are identified or in the event that the ERC proposes any amendments to this Policy. Further details on the remuneration policy can be provided upon request.
Vanguard Group (Ireland) Limited
Information on the remuneration policy of Vanguard Group (Ireland) Limited can be found here.
© Vanguard Asset Management, Limited.