VANGUARD LAUNCHES A COMMON CONTRACTUAL FUND

 
BRUSSELS, March 9, 2006 – The Vanguard Group has entered the pension asset pooling marketplace with the Vanguard® Common Contractual Fund (CCF), strengthening the company’s growing presence in global asset management. The Vanguard® CCF is an open-ended fund umbrella structure domiciled in Ireland and established under UCITS III guidelines.
 
The key advantages of a common contractual fund are tax transparency and economies of scale. This investment vehicle was designed to permit a pension fund or other institutional investor to achieve the same tax treatment as if it invested in the underlying securities directly. As a result, dividend withholding taxes may be reduced or even eliminated for qualifying pension funds and other institutional investors. Additionally, a CCF can be used by investors seeking investment management, administration, and custody efficiencies by pooling their pension assets either on a domestic or cross-border basis. As such, it represents a particularly attractive solution not only for multi-national companies operating pension funds in various jurisdictions, but also for large non-U.S. pension funds.
 
“We are pleased to bring solutions like this to multinational companies and large pension funds,” said Shellie Unger, managing director of Vanguard Investments Europe®. “The benefits extend beyond cost savings, as cross-border pooling provides greater opportunity for centralized governance and oversight. The benefits of scale are magnified when it comes to indexing, where economies of scale are of prime importance. Vanguard remains committed to expanding its offerings and relationships with global clients.”
 
The Vanguard® CCF comprises multi-currency share classes of index and enhanced equity portfolios. Vanguard also offers index and active pooled investment vehicles established under UCITS III to investors throughout Europe. Vanguard® Investment Series includes 19 investment funds, of which 14 are index funds.
 
Vanguard Investments Europe is the European asset management and marketing arm of The Vanguard Group, Inc. Founded in 1975, The Vanguard Group is an independent asset manager that has grown into a world leading indexer and active asset manager. The Vanguard Group manages more than €840 billion, with more than €350 billion in index funds. In addition to being a strong proponent of indexing, Vanguard has developed more than 25 advisory relationships with active specialist managers and has over 25 years experience in overseeing these rigorously selected managers. Vanguard maintains high standards of corporate governance, transparency and ethics and promotes the benefits of its investment philosophy - in particular, a "core / satellite" investment approach, strategic asset allocation, long term investment and cost optimization.
 
Offices are located in the United States (Headquarters), Belgium, France, Netherlands, Australia, Japan and Singapore. Vanguard offers more than 150 investment funds worldwide, covering the main asset classes, of which 19 are UCITS (Undertaking for Collective Investment in Transferable Securities) funds domiciled in Dublin tailored to European investors’ needs.
 
This document cannot be interpreted or used either as an offer or a recommendation to acquire any securities nor to enter in any transaction. This document is merely information; it doesn't represent or offer or contain any contractual representation.
 
Any transaction is subject to conditions stipulated in the prospectus, in supplements to the prospectus and, in some countries, in local addenda. Moreover, the sale of securities can be limited or even forbidden in some countries. All persons interested in the products described in this presentation are invited to receive and examine the above- mentioned, as well as to verify, possibly assisted by their adviser, to what extent the considered investment corresponds to their aims and their profile. All persons are also invited to check the existence of incidental fiscal consequences.
 
Vanguard Investment Series plc funds are offered by prospectus only. The prospectuses and supplements to the prospectus can be obtained at no cost by writing to Vanguard Group (Ireland) Limited, c/o JPMorgan Administrative Services (Ireland) Limited, JPMorgan House, International Financial Services Centre, Dublin 1, Ireland, by contacting us at +32.2.357.1410, or by visiting our website at www.vanguard.com.
 
Vanguard and Vanguard Investments Europe are trademarks of The Vanguard Group, Inc.  All other marks are the exclusive property of their respective owners.