Trust services you and your family can count on today and tomorrow. Vanguard Asset Management Services TM

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1 Trust services you and your family can count on today and tomorrow Vanguard Asset Management Services TM

2 Feel secure knowing that your trust assets will be prudently managed, protected, and distributed by experienced professionals who put your interests first.

3 Professional trust services are they right for you? The responsibilities of serving as a trustee While your trust document sets the parameters for how you want your assets managed and distributed, the real responsibility rests upon those you ask to carry out the administrative and investment obligations of a trust. You ll want the confidence of knowing that whomever you choose as trustee understands the commitment involved in meeting the trust s often underestimated challenges. Trustee responsibilities Trust administration Interpret the trust document. Distribute trust assets according to the trust document. Perform principal and income accounting. Prepare and file fiduciary income tax returns. Address specific beneficiary issues. Investment management Invest the trust portfolio assets objectively for the benefit of all interested parties. Manage portfolio assets in a tax-efficient and tax-effective manner. Review investment performance to ensure the portfolio is meeting the established goals and objectives. Vanguard National Trust Company (VNTC) can help meet any of these obligations. Whether you want investment management only or prefer to have someone handle all of the trustee responsibilities, we can be there for you whenever you need us and at a cost that s less than what many investors pay to hold mutual funds alone. Connect with us > vanguard.com/trusts >

4 What a corporate trustee can do for you Even if family members or friends are able to manage the complexities of a trust, you may not want to burden them with the considerable time and tasks involved. Instead, a corporate trustee like Vanguard National Trust Company may be a wiser choice. Our professionals have the expertise, objectivity, integrity, and time necessary for managing trust responsibilities. You can rely on us to: Administer and manage your assets objectively, in accordance with your trust document(s). Eliminate the administrative burden for you or whoever is given trustee responsibility. Ensure a stable, continuous personal relationship for your beneficiaries. Establish and maintain proper and impartial oversight. Give you the outstanding service you expect from a company known for exceptional value and a client-first focus. By choosing Vanguard National Trust Company as a sole or co-trustee, you put your trust in good hands. Vanguard Asset Management Services offers trust services through Vanguard National Trust Company (VNTC), a limited-purpose trust company that Vanguard established to offer personal trust and advisory services to clients across the nation. 2

5 Choose how you want us to serve you and your family Our experienced professionals will work with you to help address the complex issues trusts often entail. You can rely on us to assume roles and responsibilities associated with most types of trusts beginning now or whenever the need arises. How we can help Our role What it means The service you ll receive Financial advisor for trustee Sole trustee Co-trustee Successor trustee In this relationship, your appointed trustee is responsible for all trust administrative duties, but the investment management responsibility is delegated to us. Our investment professionals will manage your trust assets on behalf of your trustee, focusing on risk management, diversification, tax-efficiency, and low costs. As sole trustee, VNTC s dedicated team assumes both the investment management and administrative duties for your trust. In this shared relationship, your beneficiaries have the benefits associated with both a corporate trustee and the individual trustee you ve chosen who knows and understands your family. We ll work with the co-trustee(s) to invest the trust assets, address administrative duties, and give guidance when necessary to carry out the wishes you ve set forth in your trust document. You can name VNTC as your successor trustee, and we will evaluate our ability to step in as trustee whenever the need arises. Meanwhile, any of your assets already held at Vanguard will continue to stay with the company you trust. Investment management. Investment management. Compliance with your trust document. Principal and income accounting. Fiduciary income tax preparing and filing. Beneficiary distributions. Beneficiary communications. Access to a trust specialist. Connect with us > vanguard.com/trusts >

6 Expect more than management When you place your confidence with our trust services, you ll receive experienced, professional management, as well as the following Vanguard advantages: Stability and continuity Because of Vanguard s unique ownership it s owned by the Vanguard family of mutual funds, which, in turn, is owned by its clients we essentially work for you. And because we have no parent company subject to a buyout or merger, you can be confident the company serving you today will be around for you and your beneficiaries tomorrow. Exceptional value The combination of outstanding personal service, world-class financial expertise, and proven investment philosophy in tandem with our reasonable fees and Vanguard s low fund costs adds up to one of the best values you can find for your trust investments. Personal attention and advice customized for you Our trust professionals are salaried and receive no commissions, so our advice and services focus only on your interests and those of your trust beneficiaries. And we limit the number of clients we serve, leaving more time available for personal service. A disciplined investing approach Our investing strategies share a fundamental commitment to diversification, risk management, tax-efficiency, and low costs. We adhere to respected principles, rather than short-term strategies or the latest trends, to create a plan based on a custom mix of low-cost, tax-efficient mutual funds. Access to a network of financial expertise All of our trust professionals hold advanced degrees and/or certifications, so you ll have a staff of specialists Certified Financial Planner TM (CFP ) professionals, Certified Trust and Financial Advisors, (CTFAs), Chartered Financial Analyst certification holders, wealth planners, and fiduciary specialists at your service. Service for trusts of all types Vanguard National Trust Company has the expertise and resources needed to effectively handle most trusts, regardless of their complexity or amount of assets. Investing involves risk, and fluctuations in the financial markets and other factors may cause declines in account value. There s no guarantee that a particular asset allocation or fund mix will meet objectives or provide a given income. Diversification doesn t ensure a profit or protect against a loss in a declining market. 4

7 Your trust team Every trust account receives continued attention from several professionals. Your particular team membership depends upon the role you ve chosen for us. For trust accounts where you ask us to serve as the financial advisor for trustee, your team includes: Your financial advisor, who will hold the CFP and/or CTFA certifications and provide financial planning and investment recommendations for your trust. With the exception of investment management, note that all fiduciary responsibility for the trust continues to reside with your appointed trustee. Your trust investment associate, who will work with you and your financial advisor to address routine questions about your trust account and help with general issues like account balances, account statements, and web access. For trust accounts where you ask us to assume the role of sole trustee or co-trustee, your team expands to include: Your trust administrator, who will assist the financial advisor and take ownership of the trust fiduciary and administrative management responsibilities. In addition, all trust accounts are governed and monitored by: The VNTC Trust Administrative Committee, a fiduciary council of officers and senior management who oversee management of all trusts and ensure that our trust administration complies with applicable investment and fiduciary laws. Connect with us > vanguard.com/trusts >

8 Straightforward fees Our fees are as you see them you ll find no hidden charges such as distribution or trust termination fees. Plus, you pay a flat trust administration fee, which, unlike at many other companies, will not increase as your assets grow. Investment management fees Assets under management Annual fee 1 First $1 million 0.70% Next $1 million 0.35% Subsequent amounts 0.20% A minimum of $500,000 is necessary to establish a relationship, and the minimum annual fee is $4,500. Trust relationships of $10 million or more follow an even lower annual fee schedule. Trust administration fees Our role Financial advisor for trustee Annual fee No additional fee Sole trustee $2,500 per trust registration 2 Co-trustee $2,500 per trust registration 3 Successor trustee No fee until we assume the trustee responsibilities; then, the schedule in effect at the time will apply. 1 The annual service fee, payable quarterly, is based on the market value of assets under management at the end of each quarter. 2 This fee covers trust administration or consulting, principal and income reporting, tax preparation and filing, and beneficiary communications. Contact Vanguard Asset Management Services to learn of other pricing opportunities that may be available for multiple trusts. 6

9 Remarkable value You can benefit from our trust services at a cost that s less than what you d pay, on average, just to hold mutual funds (with no asset management or trust services) at other companies. Cost comparison Assets under management $1 million 1 $2 million $5 million Investment management fee 0.70% 0.53% 0.33% Average cost of Vanguard funds % 0.11% 0.11% Sole or co-trustee trust administration fee % 0.13% 0.05% What you d pay for all of the following services with us: 1.06% 0.77% 0.49% Investment management Trust administration 3 Vanguard funds What you d pay, on average for funds only at other companies % 1.19% 1.19% 1 On a $500,000 portfolio (the minimum amount necessary to establish a relationship), the minimum annual fee of $4,500 would be assessed. This represents 0.90% of the total portfolio, which when added to the 0.23% average expense ratio of Vanguard Investor Shares mutual funds would result in a total cost of 1.13%, a figure that s less than the average mutual fund expense ratio of 1.19% (source: Lipper Inc., December 31, 2009). This hypothetical illustration is not intended to represent the actual cost associated with any particular investment. 2 Based on the weighted expense ratio of actual Vanguard Admiral Shares funds (index and managed) representing a typical 50% stock/50% bond portfolio allocation used by our asset management services in Admiral Shares are a share class of Vanguard funds that have costs signifi cantly below our already low-cost Vanguard Investor Shares. The minimum amounts needed to purchase Admiral Shares are $10,000 for most of our broad-market index funds and $50,000 for most actively managed funds. See the prospectus for additional information about Admiral Shares. 3 The trust administration fee is generally $2,500 per trust registration. We present the trust administration fee here in percentage form to help you see how we arrive at our total service percentage figure. Note that for asset amounts below $1 million, the trust administration fee percentage will increase. However, because the trust administration fee is not asset-based, the fee amount will remain constant, even though your assets may continue to grow. 4 Source: Lipper Inc., December 31, The Lipper industry average expense ratio of 1.19% takes into account fi gures from more than 23,000 funds of all share classes. Investors with larger accounts may have the opportunity to purchase funds at a lower expense ratio. Investments are subject to risk. Connect with us > vanguard.com/trusts >

10 Ready to put your trust with us? If you want Vanguard National Trust Company (VNTC) to assume a role for your trust, call us at You ll talk with a specialist who can help you determine whether our professional trust services are appropriate for your needs. The steps you d follow to create a VNTC relationship depend on the trust role you choose for us: Financial advisor for trustee. Current sole trustee or co-trustee. Successor trustee to step in whenever the need may arise in the future. Refer to the enclosed pamphlet, How to establish a relationship with our trust services, for details about the specific procedures to follow for each role. If you want to appoint VNTC as a current or successor trustee and you re creating a new trust or amending an existing one, just let us know. We can partner with you and your attorney to review and help finalize your trust documents, ensuring that VNTC is properly appointed as a trustee. 8

11 For more information Visit vanguard.com/trusts or call on business days from 8:30 a.m. to 6 p.m., Eastern time, and one of our specialists will be happy to talk with you. Connect with us > vanguard.com/trusts >

12 Vanguard Asset Management Services P.O. Box 709 Valley Forge, PA Connect w ith Vanguard > vanguard.com/trusts > Vanguard Asset Management Services are provided by Vanguard National Trust Company, which is a federally chartered, limitedpurpose trust company operated under the supervision of the Office of the Comptroller of the Currency. For more information about Vanguard funds, visit vanguard.com or call to obtain a prospectus. Investment objectives, risks, charges, expenses, and other important information about a fund are contained in the prospectus; read and consider it carefully before investing The Vanguard Group, Inc. All rights reserved. Vanguard Marketing Corporation, Distributor. EPTSB