Interim Report and Financial Statements For the six months ended 31 January Vanguard FTSE 100 Index Unit Trust

Transcription

1 Interim Report and Financial Statements For the six months ended 31 January 2018 Vanguard FTSE 100 Index Unit Trust

2 Contents CEO s Letter 1 Tracking Error 2 Trust Profile* 3 Portfolio Manager s Commentary* 4 Summary of Significant Changes* 5 Portfolio Statement* 6 Balance Sheet 8 Statement of Total Return 8 Statement of Change in Unitholders Net Assets 8 Statement of the Manager s Responsibilities 9 Further Information 10 Directory* Inside Back Cover * The items with an asterisk collectively constitute the Manager s Report. About the cover: Nautical images have been part of Vanguard s rich heritage since its start in For an incoming ship, a lighthouse offers a beacon and safe path to shore. You can similarly depend on Vanguard to put you first and light the way as you strive to meet your financial goals. Our client focus and low costs, stemming from our unique ownership structure, assure that your interests are paramount.

3 CEO s Letter Dear Unitholder, As I begin my tenure as Vanguard s fourth chief executive, I ve been reflecting on both the past and the future of the company where I have spent my entire professional career. I feel extremely fortunate to have the chance to lead a company filled with people who come to work every day passionate about Vanguard s core purpose: to take a stand for all investors, to treat them fairly and to give them the best chance for investment success. Making a real difference When I joined Vanguard in 1991, I found a mission-driven team focused on improving lives helping people retire more comfortably, put their children through college and achieve financial security. I found a company with purpose in an industry ripe for improvement. It was clear, even early in my career, that the cards were stacked against most investors. Hidden fees, performancechasing and poor advice were relentlessly eroding investors dreams. We knew Vanguard could be different and, as a result, could make a real difference. Vanguard is built for Vanguard investors as a client-owned company, we focus solely on you, our fund shareholders. Everything we do is designed to give our clients the best chance for investment success. In my role as CEO, I intend to keep this priority front and center. We re proud of what we ve achieved, but we re even more excited about what s to come. As I write this, we ve experienced a period of pronounced market volatility. In the United States, for example, strong economic growth and budding signs of inflation have raised concerns about a more aggressive Federal Reserve. A pullback in US stocks quickly triggered similar sell-offs in Europe and Asia. In the UK that uncertainty was exacerbated by concerns about sluggish economic growth and the continuing Brexit negotiations. Although volatility can test investors nerves, we sometimes think of this as Vanguard weather a time when having a disciplined, low-cost and long-term approach to investment management serves investors well. Steady, time-tested guidance Our guidance for investors, as always, is to stay the course, tune out the hyperbolic headlines and focus on your goals and what you can control, such as costs and how much you save. This time-tested advice has served our clients well over the decades. Regardless of how the markets perform in the short term, I m incredibly optimistic about the future for our investors. We have a dedicated team serving you, and we will never stop striving to make Vanguard the best place for you to invest through our high-quality funds and services, investor education to help you meet your financial goals, and an experience that makes you feel good about entrusting us with your hard-earned savings. Thank you for your continued loyalty. Sincerely, Mortimer J. Buckley President and Chief Executive Officer The Vanguard Group, Inc. 26 March

4 Tracking Error The Trust seeks to replicate the Index by investing all, or substantially all, of its assets in the securities that make up the index, holding each in approximately the same proportion as its weighting in the index. Tracking error measures the volatility of the return difference between the Trust and the index. It is calculated as the standard deviation of the tracking difference between the Trust and the index (gross of fees for the trailing 36-month period, or since the Trust s inception if it does not have 36 months of performance history). Tracking error can result from various factors including transaction costs and any swing pricing adjustment as applied to the Trust. Please refer to the Commentary page for additional detail on the impact of the swing pricing adjustment to Trust performance. As at 31 January 2018 Ex-Post Trust Tracking Error Vanguard FSTE 100 Index Unit Trust The Trust was launched on 8 November

5 FTSE 100 Index Unit Trust Trust Profile As at 31 January 2018 Investment Objective Vanguard FTSE 100 Index Unit Trust seeks to track the performance of the FTSE 100 Index. Investment Strategy The Trust employs an indexing investment strategy designed to achieve a result consistent with the replication of the Index by investing in all of the component securities that make up the Index, holding each stock in approximate proportion to its weighting in the Index. The Index is a marketcapitalisation-weighted index representing the performance of the 100 largest companies traded on the London Stock Exchange that pass screening for size and liquidity. Risk Profile Portfolio Characteristics The value of investments, and the income from them, may fall or rise and investors may get back less than they invested. Investments in smaller companies may be more volatile than investments in well-established blue chip companies. The Trust may invest in derivatives for efficient portfolio management or hedging purposes. The risks associated with the use of derivatives are different from, or possibly greater than, the risks associated with investing directly in securities and other traditional investments for efficient portfolio management or hedging purposes. There is no assurance that any derivative strategy used by the Trust will succeed and the Trust may suffer a substantial loss as a result. Trust FTSE 100 Index Number of Stocks Ongoing Charges Figure 1 Trust Trust 31 January July 2017 A GBP Accumulation Units 0.06% 0.06% A GBP Income Units 0.06% 0.06% Ex-Dividend Date 2 1 August August 2017 Distribution Date 30 September September 2017 Sector Diversification (% of portfolio) Trust FTSE 100 Index Basic Materials 9.1% 9.1% Consumer Goods Consumer Services Financials Health Care Industrials Oil & Gas Technology Telecommunications Utilities Ten Largest Holdings 3 (% of total net assets) HSBC Holdings plc Banks 7.7% Royal Dutch Shell A plc Oil & Gas Producers 5.7 British American Tobacco plc Tobacco 5.6 BP plc Oil & Gas Producers 4.9 Royal Dutch Shell B plc Oil & Gas Producers 4.8 GlaxoSmithKline plc Pharmaceuticals & Biotechnology 3.3 Diageo plc Beverages 3.2 AstraZeneca plc Pharmaceuticals & Biotechnology 3.2 Vodafone Group plc Mobile Telecommunications 3.1 Lloyds Banking Group plc Banks 2.5 Top Ten 44.0% Synthetic Risk and Reward Indicator 4 Lower risk Typically lower rewards Higher risk Typically higher rewards The Ongoing Charges Figure (OCF) is the ratio of the Trust s total discloseable costs (excluding overdraft interest) to the average net assets of the Trust. 2 If the ex-dividend or distribution date does not fall on a business day, the effective date will be the first business day following the end of the financial period. 3 The holdings listed exclude any temporary cash investments and equity index products. 4 The Synthetic Risk and Reward Indicator (SRRI) measures the volatility of the Trust. The risk and reward category (which may range from 1 to 7) is calculated using historical data and may not be a reliable indicator of the Trust s future risk profile. The risk and reward category may shift over time and is not a target guarantee. The lowest category (i.e. category 1) does not mean risk free. The Trust appears in the higher risk category on the risk and reward indicator. This is because the Trust invests primarily in shares whose values tend to have higher price fluctuations. 3

6 FTSE 100 Index Unit Trust Commentary On behalf of Vanguard Asset Management, Limited 1 For the six months ended 31 January 2018, Vanguard FTSE 100 Index Unit Trust returned 4.36% for A GBP Accumulation Units and 4.37% for A GBP Income Units. The Trust s target index returned 3.94% for the period. The tracking difference was 0.42 percentage point for Accumulation Units and 0.43 percentage point for Income Units. 2 The difference between the return of the Trust and that of the index resulted in part from a swing pricing adjustment. With effect from 2 October 2017, Vanguard no longer applied a dilution levy and instead implemented a dilution adjustment to the price of Units, also known as swing pricing. The magnitude of the swing is based on estimates of the Trust s average trading costs, including Stamp Duty Reserve Tax. The total return and tracking difference figures calculated for the Trust reflect the Trust s net asset value for dealing purposes, which includes any swing pricing adjustment that was applied. Global equity returns for the six months were generally positive, with emerging-market stocks outpacing those of developed markets. Oil prices rose amid supply concerns and strong global demand. The US dollar continued a long downward trend as the yield curve on US bonds flattened relative to their European and Japanese counterparts. Seven of the index s ten sectors generated positive returns. Oil and gas was the top-contributing sector, followed by basic materials. Health care and utilities were the biggest detractors. FTSE 100 Index Unit Trust Benchmark: FTSE 100 Index Total Returns Total Returns Periods Ended 31 January 2018 Since Inception Six Months (8 November 2016) A GBP Accumulation Units 4.36% 12.56% A GBP Income Units Benchmark Past performance is not a reliable indicator of future results. Sources: The Vanguard Group, Inc., and FTSE. Basis of performance: NAV to NAV with net income reinvested. Performance Information As at As at A GBP Accumulation Units 31 January July 2017 Closing Net Asset Value 3 15,151,884 4,297,957 Closing Number of Units 131,701 38,791 Closing Net Asset Value Per Unit Operating charges % 0.06% The Trust launched on 8 November A GBP Income Units Closing Net Asset Value 3 384, ,730 Closing Number of Units 3,433 2,530 Closing Net Asset Value Per Unit Operating charges % 0.06% The Trust launched on 8 November Vanguard Global Advisers, LLC, as investment manager for Vanguard FTSE 100 Index Unit Trust, sub-delegates the management of the Trust to Vanguard Asset Management, Limited. 2 The tracking difference between the Trust return and the Index return over a stated period of time can be attributed to a number of factors, including, without limitation, small differences in weightings; trading activity; transaction costs; and differences in the valuation and withholding tax treatment between the Trust and the Index vendor. 3 Underlying investments are valued at bid-market prices. The net asset value per unit shown may diverge from the net asset value per unit used for dealing purposes as at 31 January 2018 because of any adjustments for swing pricing and trade date accounting. 4 Operating charges include indirect costs incurred in the maintenance and running of the Trust, as disclosed in the detailed expenses within the Statement of Total Return. 4

7 FTSE 100 Index Unit Trust Summary of Significant Changes For the period ended 31 January 2018 Largest Purchases Cost ( ) Vanguard FTSE 100 UCITS ETF 969,630 HSBC Holdings plc 877,340 British American Tobacco plc 693,758 Royal Dutch Shell A plc 635,503 BP plc 562,782 Total 3,739,013 Total Purchases for the Period 12,446,654 Largest Sales Proceeds ( ) Vanguard FTSE 100 UCITS ETF 914,136 Worldpay Group plc 59,180 British American Tobacco plc ADR 38,777 HSBC Holdings plc 25,069 Babcock International Group plc 20,711 Total 1,057,873 Total Sales for the Period 1,429,319 5

8 FTSE 100 Index Unit Trust Portfolio Statement As at 31 January 2018 Basic Materials 9.01% (2017: 7.73%) Glencore plc 92, , Rio Tinto plc 9, , BHP Billiton plc 16, , Anglo American plc 7, , Mondi plc 2,910 54, Randgold Resources Ltd , Johnson Matthey plc 1,508 52, Croda International plc 1,007 45, Antofagasta plc 2,750 25, Fresnillo plc 1,454 19, Evraz plc 3,845 14, Consumer Goods 17.45% (2017: 17.24%) 1,399, British American Tobacco plc 18, , Diageo plc 19, , Unilever plc 9, , Reckitt Benckiser Group plc 4, , Imperial Brands plc 7, , Associated British Foods plc 2,760 75, Persimmon plc 2,438 60, GKN plc 13,625 57, Burberry Group plc 3,363 53, Taylor Wimpey plc 25,787 49, Barratt Developments plc 7,948 46, Berkeley Group Holdings plc , Coca-Cola HBC AG 1,550 36, Consumer Services 9.58% (2017: 9.14%) Market % of Value Net Asset Holding ( ) Value 2,710, Compass Group plc 12, , Tesco plc 64, , RELX plc 8, , WPP plc 9, , Sky plc 8,205 86, International Consolidated Airlines Group SA 13,021 83, Carnival plc 1,426 70, InterContinental Hotels Group plc 1,507 70, Kingfisher plc 17,214 59, Next plc 1,113 56, Whitbread plc 1,455 56, TUI AG 3,452 54, Paddy Power Betfair plc , ITV plc 29,584 49, Informa plc 6,518 45, Pearson plc 6,430 44, Marks & Spencer Group plc 12,948 39, Wm Morrison Supermarkets plc 17,190 38, Just Eat plc 4,565 37, easyjet plc 1,971 32, J Sainsbury plc 12,714 32, ,488, Exchange Traded Funds 0.44% (2017: 0.33%) Vanguard FTSE 100 UCITS ETF 2,065 68, Financials 23.27% (2017: 22.58%) 68, HSBC Holdings plc 159,321 1,196, Lloyds Banking Group plc 566, , Prudential plc 20, , Barclays plc 134, , Standard Chartered plc 21, , Aviva plc 31, , Legal & General Group plc 46, , London Stock Exchange Group plc 2,483 97, Standard Life Aberdeen plc 21,515 91, Old Mutual plc 37,729 88, Royal Bank of Scotland Group plc 25,588 73, i Group plc 7,561 70, Land Securities Group plc # 5,659 56, British Land Co plc # 7,970 53, Scottish Mortgage Investment Trust plc 11,085 50, RSA Insurance Group plc 8,086 50, St. James s Place plc 4,136 49, Segro plc # 7,920 46, Direct Line Insurance Group plc 10,956 40, Hargreaves Lansdown plc 2,094 38, Schroders plc , Hammerson plc # 6,272 30, Admiral Group plc 1,594 29, Health Care 8.76% (2017: 9.41%) 3,614, GlaxoSmithKline plc 38, , AstraZeneca plc 10, , Shire plc 7, , Smith & Nephew plc 6,951 88, NMC Health plc , Mediclinic International plc 3,101 18, Industrials 7.55% (2017: 7.37%) Market % of Value Net Asset Holding ( ) Value 1,360, CRH plc 6, , BAE Systems plc 25, , Experian plc 7, , Rolls-Royce Holdings plc 13, , Ferguson plc 2, , Ashtead Group plc 3,945 83, Intertek Group plc 1,281 64, Bunzl plc 2,664 54, DCC plc , Smiths Group plc 3,141 50, Smurfit Kappa Group plc 1,882 46, Rentokil Initial plc 14,600 43, DS Smith plc 7,904 39, Halma plc 2,991 38, G4S plc 12,315 34, ,172,

9 FTSE 100 Index Unit Trust Market % of Value Net Asset Holding ( ) Value Oil & Gas 15.44% (2017: 13.15%) Royal Dutch Shell A plc 36, , BP plc 153, , Royal Dutch Shell B plc 29, , ,399, Technology 0.88% (2017: 0.61%) Micro Focus International plc 3,398 72, Sage Group plc 8,587 64, , Telecommunications 4.15% (2017: 4.29%) Vodafone Group plc 211, , BT Group plc 66, , , Utilities 2.95% (2017: 3.44%) National Grid plc 26, , SSE plc 8, , Centrica plc 44,401 59, United Utilities Group plc 5,433 40, Severn Trent plc 1,877 36, , Derivatives (0.01%) (2017: (0.02%)) Futures Contracts (0.01%) (2017: (0.02%)) Unrealised % of Number of Gain/(Loss) Net Asset Contracts ( ) Value FTSE 100 Index Futures March (1,699) (0.01) (1,699) (0.01) Portfolio of Investments* 15,454, Net Other Assets 82, Net Assets Attributable to Unitholders 15,536, All holdings are ordinary shares or stock units included on an official stock exchange listing unless otherwise stated. * Including investment liabilities. # Real Estate Investment Trust. 7

10 FTSE 100 Index Unit Trust Balance Sheet As at As at 31 January July 2017 ( ) ( ) Assets: Investment Assets 15,455,809 4,355,283 Current Assets Debtors 197, ,238 Cash and Bank Balances 50, ,482 Total Assets 15,703,010 4,781,003 Liabilities: Investment Liabilities 1, Creditors Bank Overdrafts 13 35,374 Distribution Payable 7,599 Other Creditors 165, ,568 Total Liabilities 166, ,316 Net Assets Attributable to Unitholders 15,536,280 4,570,687 Statement of Total Return Period Ended 31 January January 2018 ( ) ( ) Income Net Capital Gains/(Losses) 89,922 Revenue 118,608 Expenses (2,668) Net Revenue Before Taxation 115,940 Taxation (1,262) Net Revenue After Taxation 114,678 Total Return Before Distributions 204,600 Distributions 140,858 Change in Net Assets Attributable to Unitholders From Investment Activities 345,458 The Trust launched on 8 November 2016; therefore, there are no prior-period comparisons. Statement of Change in Unitholders Net Assets Period Ended 31 January January 2018 ( ) ( ) Opening Net Assets Attributable to Unitholders 4,570,687 Amounts Received on Issue of Units 11,218,625 Amounts Paid on Cancellation of Units (652,210) 10,566,415 Dilution Levy/Adjustment 53,720 Change in Net Assets Attributable to Unitholders From Investment Activities 345,458 Closing Net Assets Attributable to Unitholders 15,536,280 The Trust launched on 8 November 2016; therefore, there are no prior-period comparisons. 8

11 Vanguard FTSE 100 Index Unit Trust Statement of the Manager s Responsibilities Period ended 31 January 2018 The Manager of Vanguard FTSE 100 Index Unit Trust ( Trust ) is Vanguard Investments UK, Limited. The Trustee is State Street Trustees Limited and the Auditors are PricewaterhouseCoopers LLP. The Trust is a unit trust established under the Trust Deed between the Manager and the Trustee and authorised by the Financial Conduct Authority under Section 243 of the Financial Services and Markets Act 2000 and has been established as an Undertaking for Collective Investments in Transferable Securities ( UCITS ) scheme. The unitholders are not liable for the debts of the Trust. The investment objective of the Trust and the Manager s policy for pursuing that objective are set out in the Trust Profile section of this report and a review of the Trust s investment activities for the relevant period is included within the Portfolio Manager s Commentary. Important Events During the Period With effect from 14 August 2017, the Administrator and Registrar of the Trust, International Financial Data Services Limited and International Financial Data Services (UK) Limited, changed their names to DST Financial Services International Limited and DST Financial Services Europe Limited, respectively. With effect from 5 September 2017, the settlement time of the Trust in relation to subscriptions and redemptions changed from three business days to two business days. With effect from 2 October 2017, a dilution levy was no longer applied and instead a dilution adjustment to the price of Units (also known as swing pricing ) was implemented. With effect from 15 January 2018, Vanguard Global Advisers, LLC, replaced The Vanguard Group, Inc., as the Investment Adviser to the Trust. Statement of Manager s Responsibilities in Relation to the Financial Statements of the Trust The Financial Conduct Authority s Collective Investment Schemes sourcebook ( COLL ) requires the Manager to prepare Financial Statements for each annual and half-yearly accounting period, in accordance with United Kingdom Generally Accepted Accounting Practice, which give a true and fair view of the financial position of the Trust and of its net revenue and the net capital gains on the property of the Trust for the period. In preparing the Financial Statements the Manager is required to: select suitable accounting policies and then apply them consistently; make judgement and accounting estimates that are reasonable and prudent; prepare financial statements in accordance with the revised Statement of Recommended Practice for Authorised Funds issued by the Investment Management Association (now the Investment Association) in May 2014 (the SORP 2014 ), and with Financial Reporting Standards ( FRS ) 102; prepare the Financial Statements on the basis that the Trust will continue in operation unless it is inappropriate to do so; and keep adequate accounting records that are sufficient to show and explain the Trust s transactions and disclose with reasonable accuracy at any time the financial position of the Trust, and enable it to ensure that the financial statements comply with the requirements above. The Manager is responsible for the management of the Trust in accordance with its Trust Deed, the Prospectus and the COLL and for taking reasonable steps for the prevention and detection of fraud, error and non-compliance with law or regulations. The Manager s report and the Financial Statements for the period ended 31 January 2018 were signed on 26 March 2018 on behalf of the Manager by: Sean Hagerty, Kenneth E. Volpert, Director Director Vanguard Investments UK, Limited Vanguard Investments UK, Limited as Manager of as Manager of Vanguard FTSE 100 Index Unit Trust Vanguard FTSE 100 Index Unit Trust 26 March March

12 FTSE 100 Index Unit Trust Further Information Reports and Financial Statements Each year, annual and interim reports will be prepared. They will describe investment activity during the period and provide management commentary. Recipients of this document should not treat the contents as advice relating to legal, taxation or investment matters and should consult their own professional advisers concerning the acquisition, holding or disposing of investments in the Trust. Past performance is not necessarily indicative of future performance, and the value of the units and income from them may fall as well as rise. On redemption of units, investors may receive back an amount less than the original amount of their investment. The assets of the Trust will be in a variety of currencies, and therefore movements in the value of currencies may affect the value of an investor s holdings and the income from the holdings may fluctuate in value in money terms. Prospectus The Prospectus, an important document describing the Trust in detail, is available from the Manager, which is responsible for the management and administration of the Trust. The Manager of the Trust is Vanguard Investments UK, Limited, located at 4th Floor, The Walbrook Building, 25 Walbrook, London EC4N 8AF. Types of Units Available The Trust offered one class of units, A GBP, with Income Units and Accumulation Units available in this class. Switching Investors may sell their units and transfer the proceeds into any of the other unit classes by calling our dealing desk on Distributions The Trust allocates income annually, on 31 July. Publication of Prices The most recent unit prices are published daily on vanguard.co.uk. Remuneration Disclosure The Vanguard UK Consolidation Group publishes annually its Pillar 3 disclosures including certain information on remuneration. The latest Pillar 3 disclosures can be found at Vanguard personnel providing services to the Manager are subject to the Vanguard European Remuneration Policy (the Remuneration Policy ). The Remuneration Policy includes the remuneration requirements of the UCITS V Directive (2014/91/EU). Details of the Remuneration Policy are available through which will be updated periodically to reflect changes to the policy. The governance of remuneration within Vanguard Europe is undertaken through a tiered structure, including Vanguard s Global Remuneration Committee and the European Remuneration Committee ( ERC ). The Compensation Committee also operates at the Vanguard Group level and oversees the overall compensation programmes of The Vanguard Group. The ERC is responsible for implementing the remuneration programmes in accordance with our total rewards philosophy and global organisation, including overseeing the Remuneration Policy. The Remuneration Policy provides for an appropriate balance of fixed salary; benefits, such as pension; and annual bonus and long-term incentive arrangements. Incentive arrangements are based on the overall business performance of The Vanguard Group, or individual, team, business unit and fund performance. The incentive plans are reviewed and approved by the ERC (and other applicable groups) in order to ensure that plans appropriately assess financial and non-financial performance and do not encourage conflicts of interest, and to ensure that risk or compliance issues are appropriately reflected. The ERC also reviews and approves the list of UCITS code staff annually. Identified code staff are notified and understand the code staff responsibilities. Under the UCITS V Directive, the Manager is required to disclose information relating to the remuneration paid to its staff for the financial year, split into fixed and variable remuneration. Remuneration reflects fixed pay (salary) and performance-related pay (annual and long-term incentives). Individual incentive outcomes under the plans are based on performance assessed by reference to an appropriate balance of quantitative and qualitative measures, such as behaviour, including compliance with all applicable policies. The individual incentive outcome is fully discretionary and, if appropriate, outcomes based on financial performance can be overridden based on the qualitative measures. Issued by Vanguard Investments UK, Limited 4th Floor, The Walbrook Building, 25 Walbrook, London, EC4N 8AF 10

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15 Directory Company s Head Office and Registered Office 4th Floor, The Walbrook Building 25 Walbrook London EC4N 8AF United Kingdom Manager Vanguard Investments UK, Limited 4th Floor, The Walbrook Building 25 Walbrook London EC4N 8AF United Kingdom Administrator and Registrar DST Financial Services International Limited and DST Financial Services Europe Limited 1 DST House St. Nicholas Lane Basildon Essex SS15 5FS United Kingdom Investment Adviser Vanguard Global Advisers, LLC 2 P.O. Box 2600 Valley Forge, PA USA Trustee State Street Trustees Limited Quartermile 3 10 Nightingale Way Edinburgh EH3 9EG United Kingdom Independent Auditors PricewaterhouseCoopers LLP 7 More London Riverside London SE1 2RT United Kingdom 1 Formerly International Financial Data Services Limited and International Financial Data Services (UK) Limited. This change of name for each entity was effective from 14 August With effect from 15 January 2018, Vanguard Global Advisers, LLC, replaced The Vanguard Group, Inc., as the Investment Adviser to the Trust.

16 Vanguard Investments UK, Limited 4th Floor, The Walbrook Building 25 Walbrook London EC4N 8AF United Kingdom Connect with Vanguard > vanguard.co.uk This report is intended for the Trust s unitholders. It may not be distributed to prospective investors unless it is preceded or accompanied by the current Trust Prospectus. All comparative mutual fund data are from Lipper, a Thomson Reuters Company, or Morningstar, Inc., unless otherwise noted. London Stock Exchange Group companies include FTSE International Limited ( FTSE ), Frank Russell Company ( Russell ), MTS Next Limited ( MTS ), and FTSE TMX Global Debt Capital Markets Inc. ( FTSE TMX ). All rights reserved. FTSE, Russell, MTS, FTSE TMX and FTSE Russell and other service marks and trademarks related to the FTSE or Russell indexes are trademarks of the London Stock Exchange Group companies and are used by FTSE, MTS, FTSE TMX and Russell under license. All information is provided for information purposes only. Every effort is made to ensure that all information given in this publication is accurate, but no responsibility or liability can be accepted by the London Stock Exchange Group companies nor its licensors for any errors or for any loss from use of this publication. Neither the London Stock Exchange Group companies nor any of their licensors make any claim, prediction, warranty or representation whatsoever, expressly or impliedly, either as to the results to be obtained from the use of the Indices or the fitness or suitability of the Indices for any particular purpose to which they might be put. The London Stock Exchange Group companies do not provide investment advice and nothing in this document should be taken as constituting financial or investment advice. The London Stock Exchange Group companies make no representation regarding the advisability of investing in any asset. A decision to invest in any such asset should not be made in reliance on any information herein. Indexes cannot be invested in directly. Inclusion of an asset in an index is not a recommendation to buy, sell or hold that asset. The general information contained in this publication should not be acted upon without obtaining specific legal, tax, and investment advice from a licensed professional. No part of this information may be reproduced, stored in a retrieval system or transmitted in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, without prior written permission of the London Stock Exchange Group companies. Distribution of the London Stock Exchange Group companies index values and the use of their indexes to create financial products require a license with FTSE, FTSE TMX, MTS and/or Russell and/or its licensors. The Industry Classification Benchmark ( ICB ) is owned by FTSE. FTSE does not accept any liability to any person for any loss or damage arising out of any error or omission in the ICB. Vanguard Investments UK, Limited, only gives information on products and services and does not give investment advice based on individual circumstances. The Key Investor Information Document ( KIID ) and the Prospectus for this Trust is available in local languages from Vanguard Investments UK, Limited, via our website vanguard.co.uk. Issued by Vanguard Investments UK, Limited, which is authorised and regulated in the UK by the Financial Conduct Authority Vanguard Investments UK, Limited. All rights reserved. UKFTSE