Vanguard Emerging Markets Bond Fund - Institutional Plus CHF Hedged Acc

Investment strategy

The Fund employs an &#8220;active management&#8221; strategy, and while the Fund will invest substantially in components of the J.P. Morgan EMBI Global Diversified Index (the &#8220;Index&#8221;), its investment manager will follow distinct approaches in managing the Fund&#8217;s assets.<br /><br />The Fund invests in fixed income securities of various maturities, yields, and qualities. Under normal circumstances, the Fund will invest at least 80% of its assets in fixed income securities of issuers that are tied economically to emerging market countries. The Fund seeks to have a majority of its assets denominated in or hedged back to the U.S. dollar but has the ability to invest in bonds denominated in a local currency on an unhedged basis. Emerging market bonds include sovereign debt securities, which include fixed income securities that are issued or guaranteed by foreign governments or their agencies, authorities, political subdivisions or instrumentalities, or other supranational agencies, as well as debt securities issued or guaranteed by foreign corporations and foreign financial institutions.