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.

Vanguard FTSE U.K. Equity Income Index Fund, Vanguard Global Equity Income Fund - 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 Vanguard Emerging Markets Bond Fund; Vanguard Global Credit Bond Fund,  Vanguard FTSE Developed Europe ex UK Common Contractual Fund, Vanguard FTSE Developed World Common Contractual Fund, Vanguard FTSE Developed World ex UK Common Contractual Fund may use derivatives, including for investment purposes, in order to reduce risk or cost and/or generate extra income or growth. For all other funds they will be used to reduce risk or cost and/or generate extra income or growth. The use of derivatives could increase or reduce exposure to underlying assets and result in greater fluctuations of the Fund's net asset value. A derivative is a financial contract whose value is based on the value of a financial asset (such as a share, bond, or currency) or a market index.

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.

An investment in a money market fund is not a guaranteed investment. An investment in a money market fund is different from an investment in deposits, as the amount invested in a money market fund is capable of fluctuation. Money market funds do not rely on external support for guaranteeing the liquidity of the money market fund or stabilising the Net Asset Value per share. The risk of loss of the amount invested shall be borne by the investor.

For further information on risks please see the “Risk Factors” section of the prospectus on our website at https://global.vanguard.com.

Important information

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 EEA countries and the UK. 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.

Vanguard Common Contractual Fund, Vanguard Investments Common Contractual Fund and   Vanguard Investments III Common Contractual Fund have been authorised by the Central Bank of Ireland as a UCITS and has been registered for public distribution in the UK. Prospective investors are referred to the Fund’s prospectus for further information. Prospective investors are also urged to consult their own professional advisers on the implications of making an investment in, and holding or disposing units of, and the receipt of distributions from a CCF or any other investment.

The Manager for Vanguard Common Contractual Fund, Vanguard Investments Common Contractual Fund and Vanguard Investments III Common Contractual Fund is Vanguard Group (Ireland) Limited. The distributor of Vanguard Common Contractual Fund, Vanguard Investments Common Contractual Fund and Vanguard Investments III Common Contractual Fund is Vanguard Asset Management, Limited.

The Authorised Corporate Director for Vanguard LifeStrategy Funds ICVC, Vanguard® Investments Money Market Funds, Vanguard Investment Funds ICVC, 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 LifeStrategy Funds ICVC, Vanguard® Investments Money Market Funds, Vanguard Investment Funds ICVC, Vanguard FTSE U.K. All Share Index Unit Trust (‘Trust’) and Vanguard FTSE 100 Index Unit Trust (‘Trust’).

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 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 uk_client_services@vanguard.co.uk or telephone 0800 032 3731.

The Indicative Net Asset Value (“iNAV”) for Vanguard’s ETFs is published on Bloomberg or Reuters.  Refer to the Portfolio Holdings Policy at https://global.vanguard.com/portal/site/portal/ucits-documentation for holdings information

Vanguard Group (Ireland) Limited has implemented the EU Sustainable Finance Disclosure Regulation (EU) 2019/2088 (“EU SFDR”), as appropriate. Vanguard has introduced an internal product classification framework that helps to identify whether certain Vanguard funds promote, among other characteristics, environmental and/or social characteristics, or whether a fund has sustainable investment as its objective. Vanguard also considers the degree to which sustainability risks are integrated into the investment decision making process. Statements explaining Vanguard’s approach to the integration of sustainability risk, including into its remuneration policy and a transition statement to support the consideration of Principal Adverse Indicators (this is the impact of its investment decisions on sustainability factors, commonly referred to PAI), will be available on the policy page of Vanguard’s global website.

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 U.S. Treasury 0-1 Year Bond UCITS ETF, Vanguard Eurozone Inflation Linked Bond Index Fund, Vanguard Japan Government Bond Index Fund, Vanguard U.K. Gilt UCITS ETF, Vanguard U.K. 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. 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 and Italy. 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 U.K. 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 U.S. Treasury Inflation-Protected Securities 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. The Vanguard U.S. Treasury 0-1 Year Bond UCITS ETF invests more than 35% of its scheme property in transferable securities and money market instruments issued or guaranteed by the US. 

The Vanguard U.K. Long Duration Gilt Index Fund and Vanguard U.K. Inflation-Linked Gilt Index Fund  invests more than 35% of their scheme property in transferable securities and money market instruments issued or guaranteed by the UK. 

Remuneration Policies and Practices

Vanguard Investments UK, Limited, Vanguard Asset Management, Limited and Vanguard Group (Ireland) Limited

Introduction

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 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 Asset Management Limited is subject to the "IFPRU Remuneration Code" (Chapter 19A of the Senior Management Arrangement Systems and Controls ("SYSC") handbook), Vanguard Investments UK, Limited is subject to the "UCITS Remuneration Code" (Chapter 19E of the SYSC handbook) and Vanguard Group (Ireland) Limited is subject to the “Irish UCITS Regulations” (The European Communities (Undertakings for Collective Investment in Transferable Securities) Regulations 2011 (S.I. 352 of 2011) (as amended by the European Union (Undertakings for Collective Investment in Transferable Securities) (Amendment) Regulations 2016 (S.I. 143 of 2016) and the ESMA Guidelines on sound remuneration policies under the UCITS Directive (ESMA 2016/575)).

Oversight

The Remuneration Policy is overseen and implemented by Vanguard's European Leadership Team (“ELT”) and (in respect of matters relating to Vanguard Asset Management Limited) the Vanguard Asset Management Limited Remuneration Committee (which is comprised solely of non-executive directors) (“VRC”).

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).

Implementation

The Remuneration Policy promotes sound and effective risk management, taking into account the risk profile of Vanguard Europe, the long-term interests and strategy of the business and the risks presented to it (including, for example, sustainability risks). As set out within the Remuneration Policy, Vanguard Europe’s remuneration practices do not encourage risk-taking (including excessive risk-taking with respect to sustainability risks) that exceeds Vanguard Europe’s levels of tolerated risk.

As part of the operation of the Remuneration Policy, crew that constitute "Code Staff" (being “IFPRU Code Staff” and / or “UCITS Code Staff”) are identified and notified of their status. IFPRU Code Staff are identified in accordance with the criteria set out in the Regulation (EU) 604/2014 of 4 March 2014. UCITS Code Staff broadly 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.

UCITS Remuneration Code Staff

Crew that are designated as UCITS Code Staff are subject to deferral bonus arrangements. Forty to sixty percent of variable compensation awarded to UCITS 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 UCITS Code Staff will be awarded in the form of appropriate instruments or an equivalent cash-based form (taking into account the relevant regulatory requirements). This applies to both to the deferred remuneration described above and non-deferred remuneration.

Review

On an at least an annual basis, the Human Resources, Risk, and Compliance functions will liaise to review the implementation of the Remuneration Policy and will report to the ELT and VRC, as appropriate. 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 / VRC will report to Vanguard's Global Remuneration Committee in the event that any material compliance issues are identified or in the event that the ELT / VRC proposes any amendments to the Remuneration 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.

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