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Interim Report and Financial Statements For the six months ended 30 September 2017 Vanguard LifeStrategy Funds ICVC (An open-ended investment company incorporated with limited liability and registered in England and Wales under registered number IC000904.)

Contents Chairman s Letter 1 Statement of the Authorised Corporate Director's Responsibilities 2 Aggregated Financial Statements for Vanguard LifeStrategy Funds ICVC 3 Vanguard LifeStrategy 20% Equity Fund 4 Vanguard LifeStrategy 40% Equity Fund 9 Vanguard LifeStrategy 60% Equity Fund 14 Vanguard LifeStrategy 80% Equity Fund 19 Vanguard LifeStrategy 100% Equity Fund 24 Vanguard Target Retirement 2015 Fund 29 Vanguard Target Retirement 2020 Fund 34 Vanguard Target Retirement 2025 Fund 39 Vanguard Target Retirement 2030 Fund 44 Vanguard Target Retirement 2035 Fund 49 Vanguard Target Retirement 2040 Fund 54 Vanguard Target Retirement 2045 Fund 59 Vanguard Target Retirement 2050 Fund 64 Vanguard Target Retirement 2055 Fund 69 Further Information* 74 Directory* Inside Back Cover * The items with an asterisk, plus each sub-fund s Profile, Commentary, Performance Information, Summary of Significant Changes, and Portfolio Statement collectively constitute the Authorised Corporate Director s Report. About the cover: No matter what language you speak, Vanguard has one consistent message and set of principles. Our primary focus is on you, our clients. We conduct our business with integrity as a faithful steward of your assets. This message is shown translated into seven languages, reflecting our expanding global presence.

Chairman s Letter Dear Shareholder, Markets were generally positive during the six months ended 30 September 2017, but gains were more muted than they were in our previous reporting period. Stock markets continued to focus on encouraging economic data despite some political uncertainty. Global bonds mostly generated small returns, although UK government bond prices fell as yields rose. This report covers the five Vanguard LifeStrategy Funds, which maintain a fixed asset allocation, and nine Vanguard Target Retirement Funds, which gradually shift to a more conservative mix of stocks and bonds as the target retirement date is approached and passed. Returns from all the funds were in step with their allocations. Results for the five LifeStrategy Funds ranged from 0.82% for the LifeStrategy 20% Equity Fund's Income Shares to 2.57% for the LifeStrategy 100% Equity Fund. Target Retirement Fund returns were also in a tight range, from 1.55% for the 2015 Fund to 2.11% for the 2055 Fund. Capital markets digested notable political developments in Europe during the period. The election of French President Emmanuel Macron and the fourth consecutive albeit more modest victory of Angela Merkel s party in German parliamentary elections reassured investors looking for relative policy stability. On the other hand, parliamentary elections created more uncertainty in the United Kingdom as it began complicated negotiations to leave the European Union. And Spain struggled with unrest caused by the Catalan independence movement. The broad US stock market returned more than 7% in US dollars, but the rebound in the British pound reduced that figure for UK investors to less than 1%. Within the United Kingdom, the economy was resilient. The FTSE All-Share Index returned 3.6%; financials, oil and gas, industrials and basic materials added most to results. The euro s decline of almost 3% against the pound helped returns from developed European markets reach about 9% in sterling terms. The pound rose more than 7% against the Japanese yen, reducing UK investors returns from Japanese stocks, which delivered close to 2%. Emerging markets returned about 7%. The broad global bond market returned about 1% when currency-hedged back to the pound. As UK government bond yields rose and prices fell, 10-year gilts returned about 2%. Their corporate counterparts fared better, returning about 1%. In the United States, the Federal Reserve raised its benchmark lending rate in June and indicated it might do so again in December, reflecting its confidence that the US economy was on track to meet its growth and inflation targets. The yield of the benchmark 10-year US Treasury note drifted a bit downward from 2.39% to 2.33% during the period. That translated into muted returns from the US bond market, where corporate bonds outperformed government bonds. Tim Buckley chosen as Vanguard s next CEO In closing, I ll note senior leadership changes that we announced in July. Our board of directors has elected Vanguard Chief Investment Officer Tim Buckley as president and director of Vanguard. Under the planned transition, Tim will succeed me as Vanguard s chief executive officer on 1 January 2018. I m delighted with our board s unanimous decision to elect Tim. Since he joined Vanguard in 1991, he s always impressed me as a man of tremendous character and an outstanding leader with a passion for serving our clients. During the transition period, I will work closely with Tim in managing the firm and overseeing its operations. As with past successions, I will remain as chairman for a period of time to be determined by the board. Thank you for your confidence in Vanguard Investments UK, Limited. Yours faithfully, F. William McNabb III Chairman 20 October 2017 1

Vanguard LifeStrategy Funds ICVC Statement of the Authorised Corporate Director's Responsibilities For the six months ended 30 September 2017 The Authorised Corporate Director ( ACD ) of Vanguard LifeStrategy Funds ICVC (the Company ) is Vanguard Investments UK, Limited. The ACD is the sole director of the Company. The Depositary is State Street Trustees Limited and the Independent Auditors are PricewaterhouseCoopers LLP. The Company is an authorised open-ended investment company with variable capital under Regulation 14 (Authorisation) of the Open-Ended Investment Companies Regulations 2001 (as amended) (the OEIC Regulations ), and the shareholders are not liable for the debts of the Company. The Company is an Umbrella Company and therefore new sub-funds ( Funds ) may be formed by the ACD, subject to regulatory approval. The investment objective of each Fund, the Company s policy for pursuing that objective and a review of each Fund s investment activities for the relevant year are set out in the individual Fund reviews contained in this Interim Report and Financial Statements. The aggregated financial statements included in the financial statements are unaudited, as the requirement for umbrella companies to present aggregated accounts has been removed for the interim financial statements in accordance with the Statement of Recommended Practice for Authorised Funds issued by the Investment Management Association (now the Investment Association) (the SORP 2014 ). Statement of Authorised Corporate Director s Responsibilities These financial statements have been prepared by the ACD in accordance with the SORP 2014 and the rules contained in the Financial Conduct Authority s Collective Investment Schemes sourcebook (together the Regulations ). The statements give a true and fair view of the net revenue/expenses and gains/losses of the scheme property of the Company and the Funds and the financial position of the Company and the Funds at the end of the interim accounting period. The ACD is responsible for keeping proper accounting records, which disclose with reasonable accuracy at any time the financial position of the Company and enable the ACD to ensure that the financial statements comply with the Regulations. In preparing this report, the ACD has: prepared the financial statements on a going-concern basis; selected suitable accounting policies and applied them consistently; made judgements and estimates that are reasonable and prudent; followed applicable accounting standards; and prepared financial statements in accordance with the SORP 2014 as well as in accordance with Financial Reporting Standard ( FRS ) 102. The ACD confirms that it has complied with the above requirements in preparing the financial statements. The ACD is responsible for the management of the Company in accordance with the Company s Instrument of Incorporation, Prospectus and the Regulations. The ACD is responsible for taking reasonable steps for the prevention and detection of fraud and other irregularities. Sean Hagerty, Director Kenneth E. Volpert, Director Vanguard Investments UK, Limited Vanguard Investments UK, Limited as Authorised Corporate Director of as Authorised Corporate Director of Vanguard LifeStrategy Funds ICVC Vanguard LifeStrategy Funds ICVC 20 November 2017 20 November 2017 2

Aggregated Financial Statements for Vanguard LifeStrategy Funds ICVC Aggregated Balance Sheet As at As at 30 September 2017 31 March 2017 ( ) ( ) Assets: Fixed Assets Investments 8,223,229,272 6,526,010,044 Current Assets Debtors 26,295,460 52,292,821 Cash and Bank Balances 9,917,822 3,054,052 Total Assets 8,259,442,554 6,581,356,917 Liabilities: Creditors Bank Overdrafts 979,171 Distribution Payable 11,395,753 Other Creditors 29,832,848 51,368,084 Total Liabilities 29,832,848 63,743,008 Net Assets Attributable to Shareholders 8,229,609,706 6,517,613,909 Aggregated Statement of Total Return Restated 30 September 2017 30 September 2017 30 September 2016 30 September 2016 ( ) ( ) ( ) ( ) Income Net Capital Gains/(Losses) 98,190,055 447,901,109 Revenue 20,766,143 17,374,038* Expenses (2,523,456) (1,763,848)* Net Revenue Before Taxation 18,242,687 15,610,190 Taxation (2,665,611) (2,791,590) Net Revenue After Taxation 15,577,076 12,818,600 Total Return Before Distributions 113,767,131 460,719,709 Distributions 686,043 1,140,445 Change in Net Assets Attributable to Shareholders From Investment Activities 114,453,174 461,860,154 * Comparative figures have been restated to include the reduction for Synthetic OCF of underlying Funds. Aggregated Statement of Change in Net Assets Attributable to Shareholders 30 September 2017 30 September 2017 30 September 2016 30 September 2016 ( ) ( ) ( ) ( ) Opening Net Assets Attributable to Shareholders 6,517,613,909 3,358,630,678 Amounts Received on Issue of Shares 1,631,199,975 950,588,806 Amounts Paid on Cancellation of Shares (33,657,352) (29,807,444) 1,597,542,623 920,781,362 Change in Net Assets Attributable to Shareholders From Investment Activities 114,453,174 461,860,154 Closing Net Assets Attributable to Shareholders 8,229,609,706 4,741,272,194 The aggregated financial statements represent the sum of the assets and liabilities of the Funds that constitute Vanguard LifeStrategy Funds ICVC. 3

LifeStrategy 20% Equity Fund Fund Profile As at 30 September 2017 Investment Objective The Fund seeks to gain exposure to a diversified notional portfolio composed approximately 20% by value of equity securities and 80% by value of fixed income securities. Investment Strategy The Fund will seek to achieve its investment objective predominantly through investment in passive, index-tracking collective investment schemes. Risk Profile The value of investments, and the income from them, may fall or rise and investors may get back less than they invested. The value of this investment may fall or rise as a result of changes in exchange rates. This Fund invests in emerging markets, which can be more volatile than more established markets. As a result, the value of your investment may rise or fall. 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. Allocation to Underlying Vanguard Funds (% of Underlying Vanguard Funds) Vanguard Global Bond Index Fund 19.1% Vanguard FTSE Developed World ex-u.k. Equity Index Fund 13.6 Vanguard U.K. Government Bond Index Fund 12.3 Vanguard U.S. Investment Grade Credit Index Fund 8.6 Vanguard Euro Government Bond Index Fund 8.3 Vanguard U.S. Government Bond Index Fund 7.8 Vanguard U.K. Investment Grade Bond Index Fund 7.5 Vanguard U.K. Inflation-Linked Gilt Index Fund 7.2 Vanguard FTSE U.K. All Share Index Unit Trust 5.1 Vanguard Japan Government Bond Index Fund 4.9 Vanguard Euro Investment Grade Bond Index Fund 4.1 Vanguard Emerging Markets Stock Index Fund 1.5 Fund Market Diversification (% of Underlying Vanguard Funds) Portfolio Characteristics Ongoing Charges Figure 1 30 September 2017 31 March 2017 A GBP Gross Accumulation Shares Expenses 0.03% 0.05% Synthetic Element 0.19% 0.17% Total Synthetic Ongoing Charge 1 0.22% 0.22% A GBP Gross Income Shares Expenses 0.03% 0.05% Synthetic Element 0.19% 0.17% Total Synthetic Ongoing Charge 1 0.22% 0.22% Ex-Dividend Date 1 April 2018 1 April 2017 Distribution Date 31 May 2018 31 May 2017 Fund Asset Allocation (% of Net Asset Value) n n 20% Equity-Based Collective Investment Schemes 80% Fixed Income-Based Collective Investment Schemes Global Bonds 19.1% UK Gilts 12.3 North American Equities 8.9 US Investment-Grade Bonds 8.6 European Government Bonds 8.3 US Government Bonds 7.8 UK Investment-Grade Bonds 7.5 UK Inflation-Linked Gilts 7.2 UK Equities 5.1 Japan Government Bonds 4.9 European Investment-Grade Bonds 4.1 European ex-uk Equities 2.5 Emerging Markets Equities 1.5 Japan Equities 1.3 Asia ex-japan Equities 0.9 Synthetic Risk and Reward Indicator 2 Lower risk Higher risk Typically lower rewards Typically higher rewards 1 2 3 4 5 6 7 1 The Ongoing Charges Figure (OCF) is the ratio of the Fund s total discloseable costs (excluding overdraft interest) to the average net assets of the Fund. Because the Fund invests a substantial proportion of its assets in other UCITS or Collective Investment Undertakings (CIU), it is required to disclose a synthetic OCF that accounts for the ongoing charges incurred in the underlying CIUs. 2 The Synthetic Risk and Reward Indicator (SRRI) measures the volatility of the Fund. 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 Fund s future risk profile. The risk and reward category may shift over time and is not a target or guarantee. The lowest category (i.e. category 1) does not mean risk free. The Fund appears in the lower range of the risk and reward indicator. This is because the values of the Fund s investments have experienced a lower rate of change in the past. 4

LifeStrategy 20% Equity Fund Commentary On behalf of Vanguard Asset Management, Limited 1 For the six months ended 30 September 2017, Vanguard LifeStrategy 20% Equity Fund returned 0.84% for Accumulation Shares and 0.82% for Income Shares. A heavy allocation to bonds weighed on performance. Global stocks did better than bonds as investors favoured riskier assets. Key central banks, including the Bank of England, continued their accommodative monetary policies, and economic indicators in most countries pointed to steady growth. Global fixed income markets returned about 1%. In the United Kingdom, the yield of the benchmark 10-year gilt rose from 1.14% to 1.37%. (Bond yields and prices move in opposite directions.) UK government bonds returned about 2%, trailing their investment-grade counterparts, which returned about 1%. Inflation-linked gilts returned about 3% as the rebound in the British pound contributed to lower inflation expectations. Outside the United Kingdom, European government bonds outpaced those of the United States and Japan, and US investment-grade bonds outperformed those in Europe. UK stocks gained about 4%. Financials, oil and gas, industrials and basic materials added the most to results. Health care, utilities, consumer goods and telecommunications detracted. Developed European stock markets outside of the United Kingdom returned about 9%. US stocks were essentially flat, and Japanese stocks returned about 2%. Strong performers in Europe included France, Germany and Italy. Emerging-market stocks returned about 7%. China, South Korea, Taiwan, Brazil and Poland were among the top contributors. Total Returns Total Returns Periods Ended 30 September 2017 Annualised Annualised Since Inception Six Months Five Years (23 June 2011) A GBP Gross Accumulation Shares 0.84% 5.50% 6.29% A GBP Gross Income Shares 0.82 5.49 6.28 Past performance is not a reliable indicator of future results. Basis of performance: NAV to NAV with net income reinvested. Performance Information As at As at As at As at A GBP Gross Accumulation Shares 30 September 2017 31 March 2017 31 March 2016 31 March 2015 Closing Net Asset Value 2 652,648,754 528,463,156 271,603,752 145,287,427 Closing Number of Shares 4,452,760 3,635,653 2,023,351 1,097,723 Closing Net Asset Value Per Share 2 146.57 145.36 134.23 132.35 Operating Charges 3 0.22% 0.24% 0.24% 0.24% A GBP Gross Income Shares Closing Net Asset Value 2 60,740,035 52,275,074 38,822,520 31,804,778 Closing Number of Shares 450,853 391,262 310,251 254,897 Closing Net Asset Value Per Share 2 134.72 133.61 125.13 124.78 Operating Charges 3 0.22% 0.24% 0.24% 0.24% 1 The Vanguard Group, Inc., as investment adviser for Vanguard LifeStrategy Funds ICVC, sub-delegates the management of this sub-fund to Vanguard Asset Management, Limited. 2 Underlying investments are valued at bid-market prices. 3 Operating charges include indirect costs incurred in the maintenance and running of the Fund, as disclosed in the detailed expenses within the Statement of Total Return. The figures used within this table have been calculated against the average Shares in issue for the accounting period. 5

LifeStrategy 20% Equity Fund Summary of Significant Changes For the period ended 30 September 2017 Largest Purchases Cost ( ) Vanguard U.K. Government Bond Index Fund 90,196,942 Vanguard U.K. Investment Grade Bond Index Fund 54,233,884 Vanguard Global Bond Index Fund 23,897,000 Vanguard FTSE Developed World ex-u.k. Equity Index Fund 17,339,000 Vanguard Euro Government Bond Index Fund 12,999,000 Total 198,665,826 Total Purchases for the Period 272,137,851 Largest Sales Proceeds ( ) Vanguard U.K. Government Bond Index Fund 83,040,942 Vanguard U.K. Investment Grade Bond Index Fund 48,276,884 Vanguard Emerging Markets Stock Index Fund 9,760,596 Vanguard FTSE Developed World ex-u.k. Equity Index Fund 727,000 Vanguard U.S. Investment Grade Credit Index Fund 577,000 Total 142,382,422 Total Sales for the Period 144,713,422 6

LifeStrategy 20% Equity Fund Portfolio Statement As at 30 September 2017 The holdings displayed are the collective investment schemes, unless otherwise stated, through which the Fund seeks to achieve its investment objective. The prospectus and other information about the collective investment schemes are available at vanguard.co.uk. Market % of Value Net Asset Holding ( ) Value Equity 20.17% (31.03.2017: 19.91%) Vanguard FTSE Developed World ex-u.k. Equity Index Fund 1 308,135 96,846,175 13.57 Vanguard FTSE U.K. All Share Index Unit Trust 1 186,190 36,171,670 5.07 Vanguard Emerging Markets Stock Index Fund 50,512 10,893,858 1.53 143,911,703 20.17 Fixed Income 79.73% (31.03.2017: 80.02%) Vanguard Global Bond Index Fund 927,178 136,626,197 19.15 Vanguard U.K. Government Bond Index Fund 552,154 88,001,122 12.34 Vanguard U.S. Investment Grade Credit Index Fund 531,159 61,018,689 8.55 Vanguard Euro Government Bond Index Fund 508,157 59,300,657 8.31 Vanguard U.S. Government Bond Index Fund 518,740 55,310,935 7.75 Vanguard U.K. Investment Grade Bond Index Fund 572,620 53,365,435 7.48 Vanguard U.K. Inflation-Linked Gilt Index Fund 1 280,811 51,202,123 7.18 Vanguard Japan Government Bond Index Fund 317,827 35,047,688 4.92 Vanguard Euro Investment Grade Bond Index Fund 253,359 28,886,843 4.05 568,759,689 79.73 Portfolio of Investments 712,671,392 99.90 Net Other Assets 717,397 0.10 Net Assets Attributable to Shareholders 713,388,789 100.00 1 The ACD of this Fund is Vanguard Investments UK, Limited. 7

LifeStrategy 20% Equity Fund Balance Sheet As at As at 30 September 2017 31 March 2017 ( ) ( ) Assets: Investment Assets 712,671,392 580,318,075 Current Assets Debtors 569,422 5,122,099 Cash and Bank Balances 737,289 1,359,121 Total Assets 713,978,103 586,799,295 Liabilities: Creditors Distribution Payable 1,459,726 Other Creditors 589,314 4,601,339 Total Liabilities 589,314 6,061,065 Net Assets Attributable to Shareholders 713,388,789 580,738,230 Statement of Total Return 30 September 2017 30 September 2017 30 September 2016 30 September 2016 ( ) ( ) ( ) ( ) Income Net Capital Gains/(Losses) 2,286,038 27,011,652 Revenue 2,642,851 2,458,432* Expenses (105,504) (98,298)* Net Revenue Before Taxation 2,537,347 2,360,134 Taxation (472,027) Net Revenue After Taxation 2,537,347 1,888,107 Total Return Before Distributions 4,823,385 28,899,759 Distributions 85,073 224,801 Change in Net Assets Attributable to Shareholders From Investment Activities 4,908,458 29,124,560 * Comparative figures have been restated to reallocate the reduction for Synthetic OCF of underlying Funds from Revenue into Expenses. Statement of Change in Net Assets Attributable to Shareholders 30 September 2017 30 September 2017 30 September 2016 30 September 2016 ( ) ( ) ( ) ( ) Opening Net Assets Attributable to Shareholders 580,738,230 310,426,272 Amounts Received on Issue of Shares 134,138,759 122,749,588 Amounts Paid on Cancellation of Shares (6,396,658) (7,646,422) 127,742,101 115,103,166 Change in Net Assets Attributable to Shareholders From Investment Activities 4,908,458 29,124,560 Closing Net Assets Attributable to Shareholders 713,388,789 454,653,998 8

LifeStrategy 40% Equity Fund Fund Profile As at 30 September 2017 Investment Objective The Fund seeks to gain exposure to a diversified notional portfolio composed approximately 40% by value of equity securities and 60% by value of fixed income securities. Investment Strategy The Fund will seek to achieve its investment objective predominantly through investment in passive, index-tracking collective investment schemes. Risk Profile Portfolio Characteristics Ongoing Charges Figure 1 The value of investments, and the income from them, may fall or rise and investors may get back less than they invested. The value of this investment may fall or rise as a result of changes in exchange rates. This Fund invests in emerging markets, which can be more volatile than more established markets. As a result, the value of your investment may rise or fall. 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. 30 September 2017 31 March 2017 A GBP Accumulation Shares Expenses 0.05% 0.07% Synthetic Element 0.17% 0.15% Total Synthetic Ongoing Charge 1 0.22% 0.22% A GBP Income Shares Expenses 0.05% 0.07% Synthetic Element 0.17% 0.15% Total Synthetic Ongoing Charge 1 0.22% 0.22% Ex-Dividend Date 1 April 2018 1 April 2017 Distribution Date 31 May 2018 31 May 2017 Fund Asset Allocation (% of Net Asset Value) n n 40% Equity-Based Collective Investment Schemes 60% Fixed Income-Based Collective Investment Schemes Allocation to Underlying Vanguard Funds (% of Underlying Vanguard Funds) Vanguard FTSE Developed World ex-u.k. Equity Index Fund 19.2% Vanguard Global Bond Index Fund 19.2 Vanguard FTSE U.K. All Share Index Unit Trust 10.1 Vanguard U.K. Government Bond Index Fund 9.0 Vanguard U.K. Investment Grade Bond Index Fund 5.5 Vanguard U.K. Inflation-Linked Gilt Index Fund 5.4 Vanguard U.S. Investment Grade Credit Index Fund 5.2 Vanguard Euro Government Bond Index Fund 5.1 Vanguard U.S. Equity Index Fund 5.0 Vanguard U.S. Government Bond Index Fund 4.8 Vanguard Emerging Markets Stock Index Fund 3.1 Vanguard Japan Government Bond Index Fund 3.1 Vanguard Euro Investment Grade Bond Index Fund 2.5 Vanguard FTSE Developed Europe ex-u.k. Equity Index Fund 1.5 Vanguard Japan Stock Index Fund 0.8 Vanguard Pacific ex-japan Stock Index Fund 0.4 Vanguard U.K. Gilt UCITS ETF 0.1 Fund Market Diversification (% of Underlying Vanguard Funds) Global Bonds 19.2% North American Equities 17.4 UK Equities 10.1 UK Gilts 9.1 UK Investment-Grade Bonds 5.5 UK Inflation-Linked Gilts 5.4 US Investment-Grade Bonds 5.2 European Government Bonds 5.1 European ex-uk Equities 5.1 US Government Bonds 4.8 Japan Government Bonds 3.1 Emerging Markets Equities 3.1 Japan Equities 2.7 European Investment-Grade Bonds 2.5 Asia ex-japan Equities 1.7 Synthetic Risk and Reward Indicator 2 Lower risk Typically lower rewards Higher risk Typically higher rewards 1 2 3 4 5 6 7 1 The Ongoing Charges Figure (OCF) is the ratio of the Fund s total discloseable costs (excluding overdraft interest) to the average net assets of the Fund. Because the Fund invests a substantial proportion of its assets in other UCITS or Collective Investment Undertakings (CIU), it is required to disclose a synthetic OCF that accounts for the ongoing charges incurred in the underlying CIUs. 2 The Synthetic Risk and Reward Indicator (SRRI) measures the volatility of the Fund. 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 Fund s future risk profile. The risk and reward category may shift over time and is not a target or guarantee. The lowest category (i.e. category 1) does not mean risk free. The Fund appears in the middle range of the risk and reward indicator. This is because the values of the Fund s investments have experienced a moderate rate of change in the past. 9

LifeStrategy 40% Equity Fund Commentary On behalf of Vanguard Asset Management, Limited 1 For the six months ended 30 September 2017, Vanguard LifeStrategy 40% Equity Fund returned 1.22% for both Accumulation Shares and Income Shares. Global stocks outperformed bonds as investors favoured riskier assets. Key central banks, including the Bank of England, continued their accommodative monetary policies, and economic indicators in most countries pointed to steady growth. UK stocks gained about 4%. Financials, oil and gas, industrials and basic materials added the most to results. Health care, utilities, consumer goods and telecommunications detracted. Developed European stock markets outside of the United Kingdom returned about 9%. US stocks were essentially flat, and Japanese stocks returned about 2%. Strong performers in Europe included France, Germany and Italy. Emerging-market stocks returned about 7%. China, South Korea, Taiwan, Brazil and Poland were among the top contributors. Global fixed income markets returned about 1%. In the United Kingdom, the yield of the benchmark 10-year gilt rose from 1.14% to 1.37%. (Bond yields and prices move in opposite directions.) UK government bonds returned about 2%, trailing their investment-grade counterparts, which returned about 1%. Inflation-linked gilts returned about 3% as the rebound in the British pound contributed to lower inflation expectations. European government bonds outpaced those of the United States and Japan, and US investment-grade bonds did better than those in Europe. Total Returns Total Returns Periods Ended 30 September 2017 Annualised Annualised Since Inception Six Months Five Years (23 June 2011) A GBP Accumulation Shares 1.22% 7.56% 7.71% A GBP Income Shares 1.22 7.56 7.70 Past performance is not a reliable indicator of future results. Basis of performance: NAV to NAV with net income reinvested. Performance Information As at As at As at As at A GBP Accumulation Shares 30 September 2017 31 March 2017 31 March 2016 31 March 2015 Closing Net Asset Value 2 1,916,475,502 1,477,396,632 710,020,511 408,779,038 Closing Number of Shares 12,029,342 9,386,789 5,121,657 2,974,919 Closing Net Asset Value Per Share 2 159.32 157.39 138.63 137.41 Operating Charges 3 0.22% 0.24% 0.24% 0.24% A GBP Income Shares Closing Net Asset Value 2 220,780,528 182,573,779 102,342,259 61,219,443 Closing Number of Shares 1,516,188 1,269,192 796,097 474,330 Closing Net Asset Value Per Share 2 145.62 143.85 128.55 129.07 Operating Charges 3 0.22% 0.24% 0.24% 0.24% 1 The Vanguard Group, Inc., as investment adviser for Vanguard LifeStrategy Funds ICVC, sub-delegates the management of this sub-fund to Vanguard Asset Management, Limited. 2 Underlying investments are valued at bid-market prices. 3 Operating charges include indirect costs incurred in the maintenance and running of the Fund, as disclosed in (but not limited to) the detailed expenses within the Statement of Total Return. The figures used within this table have been calculated against the average Shares in issue for the accounting period. 10

LifeStrategy 40% Equity Fund Summary of Significant Changes For the period ended 30 September 2017 Largest Purchases Cost ( ) Vanguard U.K. Government Bond Index Fund 196,080,240 Vanguard U.K. Investment Grade Bond Index Fund 120,091,494 Vanguard FTSE Developed World ex-u.k. Equity Index Fund 86,580,000 Vanguard Global Bond Index Fund 83,916,000 Vanguard Emerging Markets Stock Index Fund 64,899,778 Total 551,567,512 Total Purchases for the Period 809,688,791 Largest Sales Proceeds ( ) Vanguard U.K. Government Bond Index Fund 175,078,240 Vanguard U.K. Investment Grade Bond Index Fund 103,245,494 Vanguard Emerging Markets Stock Index Fund 56,080,778 Vanguard Japan Stock Index Fund 15,815,783 Vanguard Pacific ex-japan Stock Index Fund 8,075,737 Total 358,296,032 Total Sales for the Period 358,296,032 11

LifeStrategy 40% Equity Fund Portfolio Statement As at 30 September 2017 The holdings displayed are the collective investment schemes, unless otherwise stated, through which the Fund seeks to achieve its investment objective. The prospectus and other information about the collective investment schemes are available at vanguard.co.uk. Market % of Value Net Asset Holding ( ) Value Equity 40.17% (31.03.2017: 39.93%) Vanguard FTSE Developed World ex-u.k. Equity Index Fund 1 1,315,445 413,441,245 19.34 Vanguard FTSE U.K. All Share Index Unit Trust 1 1,105,965 214,858,780 10.05 Vanguard U.S. Equity Index Fund 1 267,083 106,141,967 4.97 Vanguard Emerging Markets Stock Index Fund 306,214 66,040,604 3.09 Vanguard FTSE Developed Europe ex-u.k. Equity Index Fund 1 128,082 32,303,397 1.51 Vanguard Japan Stock Index Fund 81,710 17,236,930 0.81 Vanguard Pacific ex-japan Stock Index Fund 32,162 8,474,112 0.40 858,497,035 40.17 Fixed Income 59.76% (31.03.2017: 60.20%) Vanguard Global Bond Index Fund 2,774,201 408,798,208 19.13 Vanguard U.K. Government Bond Index Fund 1,203,764 191,853,234 8.97 Vanguard U.K. Investment Grade Bond Index Fund 1,275,154 118,838,243 5.56 Vanguard U.K. Inflation-Linked Gilt Index Fund 1 633,779 115,561,234 5.41 Vanguard U.S. Investment Grade Credit Index Fund 976,603 112,190,543 5.25 Vanguard Euro Government Bond Index Fund 930,386 108,573,797 5.08 Vanguard U.S. Government Bond Index Fund 951,581 101,462,857 4.75 Vanguard Japan Government Bond Index Fund 592,295 65,314,141 3.05 Vanguard Euro Investment Grade Bond Index Fund 461,673 52,637,892 2.46 Vanguard U.K. Gilt UCITS ETF 94,241 2,126,237 0.10 1,277,356,386 59.76 Portfolio of Investments 2,135,853,421 99.93 Net Other Assets 1,402,609 0.07 Net Assets Attributable to Shareholders 2,137,256,030 100.00 1 The ACD of this Fund is Vanguard Investments UK, Limited. 12

LifeStrategy 40% Equity Fund Balance Sheet As at As at 30 September 2017 31 March 2017 ( ) ( ) Assets: Investment Assets 2,135,853,421 1,662,079,373 Current Assets Debtors 5,660,737 13,135,997 Cash and Bank Balances 2,752,781 866,026 Total Assets 2,144,266,939 1,676,081,396 Liabilities: Creditors Distribution Payable 2,671,649 Other Creditors 7,010,909 13,439,336 Total Liabilities 7,010,909 16,110,985 Net Assets Attributable to Shareholders 2,137,256,030 1,659,970,411 Statement of Total Return 30 September 2017 30 September 2017 30 September 2016 30 September 2016 ( ) ( ) ( ) ( ) Income Net Capital Gains/(Losses) 16,141,129 92,322,214 Revenue 6,257,686 5,259,357* Expenses (489,473) (356,425)* Net Revenue Before Taxation 5,768,213 4,902,932 Taxation (1,153,643) (973,739) Net Revenue After Taxation 4,614,570 3,929,193 Total Return Before Distributions 20,755,699 96,251,407 Distributions 217,657 451,307 Change in Net Assets Attributable to Shareholders From Investment Activities 20,973,356 96,702,714 * Comparative figures have been restated to reallocate the reduction for Synthetic OCF of underlying Funds from Revenue into Expenses. Statement of Change in Net Assets Attributable to Shareholders 30 September 2017 30 September 2017 30 September 2016 30 September 2016 ( ) ( ) ( ) ( ) Opening Net Assets Attributable to Shareholders 1,659,970,411 812,362,770 Amounts Received on Issue of Shares 458,327,084 298,239,953 Amounts Paid on Cancellation of Shares (2,014,821) (826,869) 456,312,263 297,413,084 Change in Net Assets Attributable to Shareholders From Investment Activities 20,973,356 96,702,714 Closing Net Assets Attributable to Shareholders 2,137,256,030 1,206,478,568 13

LifeStrategy 60% Equity Fund Fund Profile As at 30 September 2017 Investment Objective The Fund seeks to gain exposure to a diversified notional portfolio composed approximately 60% by value of equity securities and 40% by value of fixed income securities. Investment Strategy The Fund will seek to achieve its investment objective predominantly through investment in passive, index-tracking collective investment schemes. Risk Profile Portfolio Characteristics Ongoing Charges Figure 1 The value of investments, and the income from them, may fall or rise and investors may get back less than they invested. The value of this investment may fall or rise as a result of changes in exchange rates. This Fund invests in emerging markets, which can be more volatile than more established markets. As a result, the value of your investment may rise or fall. 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. 30 September 2017 31 March 2017 A GBP Accumulation Shares Expenses 0.07% 0.09% Synthetic Element 0.15% 0.13% Total Synthetic Ongoing Charge 1 0.22% 0.22% A GBP Income Shares Expenses 0.07% 0.09% Synthetic Element 0.15% 0.13% Total Synthetic Ongoing Charge 1 0.22% 0.22% Ex-Dividend Date 1 April 2018 1 April 2017 Distribution Date 31 May 2018 31 May 2017 Fund Asset Allocation (% of Net Asset Value) n n 60% Equity-Based Collective Investment Schemes 40% Fixed Income-Based Collective Investment Schemes Allocation to Underlying Vanguard Funds (% of Underlying Vanguard Funds) Vanguard FTSE Developed World ex-u.k. Equity Index Fund 19.4% Vanguard Global Bond Index Fund 19.2 Vanguard FTSE U.K. All Share Index Unit Trust 15.1 Vanguard U.S. Equity Index Fund 13.7 Vanguard U.K. Government Bond Index Fund 5.8 Vanguard Emerging Markets Stock Index Fund 4.6 Vanguard FTSE Developed Europe ex-u.k. Equity Index Fund 4.2 Vanguard U.K. Investment Grade Bond Index Fund 3.6 Vanguard U.K. Inflation-Linked Gilt Index Fund 3.6 Vanguard Japan Stock Index Fund 2.2 Vanguard U.S. Investment Grade Credit Index Fund 1.9 Vanguard Euro Government Bond Index Fund 1.9 Vanguard U.S. Government Bond Index Fund 1.7 Vanguard Japan Government Bond Index Fund 1.1 Vanguard Pacific ex-japan Stock Index Fund 1.1 Vanguard Euro Investment Grade Bond Index Fund 0.9 Vanguard U.K. Gilt UCITS ETF 0.0 Fund Market Diversification (% of Underlying Vanguard Funds) North American Equities 26.3% Global Bonds 19.2 UK Equities 15.1 European ex-uk Equities 7.8 UK Gilts 5.8 Emerging Markets Equities 4.6 Japan Equities 4.1 UK Inflation-Linked Gilts 3.6 UK Investment-Grade Bonds 3.6 Asia ex-japan Equities 2.4 European Government Bonds 1.9 US Investment-Grade Bonds 1.9 US Government Bonds 1.7 Japan Government Bonds 1.1 European Investment-Grade Bonds 0.9 Synthetic Risk and Reward Indicator 2 Lower risk Typically lower rewards Higher risk Typically higher rewards 1 2 3 4 5 6 7 1 The Ongoing Charges Figure (OCF) is the ratio of the Fund s total discloseable costs (excluding overdraft interest) to the average net assets of the Fund. Because the Fund invests a substantial proportion of its assets in other UCITS or Collective Investment Undertakings (CIU), it is required to disclose a synthetic OCF that accounts for the ongoing charges incurred in the underlying CIUs. 2 The Synthetic Risk and Reward Indicator (SRRI) measures the volatility of the Fund. 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 Fund s future risk profile. The risk and reward category may shift over time and is not a target or guarantee. The lowest category (i.e. category 1) does not mean risk free. The Fund appears in the middle range of the risk and reward indicator. This is because the values of the Fund s investments have experienced a moderate rate of change in the past. 14

LifeStrategy 60% Equity Fund Commentary On behalf of Vanguard Asset Management, Limited 1 For the six months ended 30 September 2017, Vanguard LifeStrategy 60% Equity Fund returned 1.67% for both Accumulation Shares and Income Shares. Global stocks outperformed bonds as investors favoured riskier assets. Key central banks, including the Bank of England, continued their accommodative monetary policies, and economic indicators in most countries pointed to steady growth. UK stocks gained about 4%. Financials, oil and gas, industrials and basic materials added the most to results. Health care, utilities, consumer goods and telecommunications detracted. Developed European stock markets outside of the United Kingdom returned about 9%. US stocks were essentially flat, and Japanese stocks returned about 2%. Strong performers in Europe included France, Germany and Italy. Emerging-market stocks returned about 7%. China, South Korea, Taiwan, Brazil and Poland were among the top contributors. Global fixed income markets returned about 1%. In the United Kingdom, the yield of the benchmark 10-year gilt rose from 1.14% to 1.37%. (Bond yields and prices move in opposite directions.) UK government bonds returned about 2%, trailing their investment-grade counterparts, which returned about 1%. Inflation-linked gilts returned about 3% as the rebound in the British pound contributed to lower inflation expectations. European government bonds outpaced those of the United States and Japan, and US investment-grade bonds did better than those in Europe. Total Returns Total Returns Periods Ended 30 September 2017 Annualised Annualised Since Inception Six Months Five Years (23 June 2011) A GBP Accumulation Shares 1.67% 9.64% 9.02% A GBP Income Shares 1.67 9.63 9.01 Past performance is not a reliable indicator of future results. Basis of performance: NAV to NAV with net income reinvested. Performance Information As at As at As at As at A GBP Accumulation Shares 30 September 2017 31 March 2017 31 March 2016 31 March 2015 Closing Net Asset Value 2 2,807,541,847 2,234,502,831 1,146,757,807 653,064,962 Closing Number of Shares 16,337,139 13,220,244 8,071,554 4,601,781 Closing Net Asset Value Per Share 2 171.85 169.02 142.07 141.92 Operating Charges 3 0.22% 0.24% 0.24% 0.24% A GBP Income Shares Closing Net Asset Value 2 327,737,046 270,182,900 156,465,315 104,466,219 Closing Number of Shares 2,088,079 1,750,241 1,187,607 782,688 Closing Net Asset Value Per Share 2 156.96 154.37 131.75 133.47 Operating Charges 3 0.22% 0.24% 0.24% 0.24% 1 The Vanguard Group, Inc., as investment adviser for Vanguard LifeStrategy Funds ICVC, sub-delegates the management of this sub-fund to Vanguard Asset Management, Limited. 2 Underlying investments are valued at bid-market prices. 3 Operating charges include indirect costs incurred in the maintenance and running of the Fund, as disclosed in (but not limited to) the detailed expenses within the Statement of Total Return. The figures used within this table have been calculated against the average Shares in issue for the accounting period. 15

LifeStrategy 60% Equity Fund Summary of Significant Changes For the period ended 30 September 2017 Largest Purchases Cost ( ) Vanguard U.K. Government Bond Index Fund 187,109,337 Vanguard Emerging Markets Stock Index Fund 141,816,335 Vanguard Global Bond Index Fund 114,629,000 Vanguard FTSE Developed World ex-u.k. Equity Index Fund 113,891,000 Vanguard U.K. Investment Grade Bond Index Fund 113,850,127 Total 671,295,799 Total Purchases for the Period 1,075,657,809 Largest Sales Proceeds ( ) Vanguard U.K. Government Bond Index Fund 169,925,337 Vanguard Emerging Markets Stock Index Fund 125,105,335 Vanguard U.K. Investment Grade Bond Index Fund 99,826,127 Vanguard Japan Stock Index Fund 63,460,140 Vanguard Pacific ex-japan Stock Index Fund 31,791,786 Total 490,108,725 Total Sales for the Period 497,952,725 16

LifeStrategy 60% Equity Fund Portfolio Statement As at 30 September 2017 The holdings displayed are the collective investment schemes, unless otherwise stated, through which the Fund seeks to achieve its investment objective. The prospectus and other information about the collective investment schemes are available at vanguard.co.uk. Market % of Value Net Asset Holding ( ) Value Equity 60.09% (31.03.2017: 59.96%) Vanguard FTSE Developed World ex-u.k. Equity Index Fund 1 1,924,404 604,835,661 19.29 Vanguard FTSE U.K. All Share Index Unit Trust 1 2,428,453 471,782,070 15.05 Vanguard U.S. Equity Index Fund 1 1,078,574 428,638,552 13.67 Vanguard Emerging Markets Stock Index Fund 669,108 144,305,210 4.60 Vanguard FTSE Developed Europe ex-u.k. Equity Index Fund 1 517,077 130,411,065 4.16 Vanguard Japan Stock Index Fund 329,941 69,602,188 2.22 Vanguard Pacific ex-japan Stock Index Fund 130,574 34,403,865 1.10 1,883,978,611 60.09 Fixed Income 39.84% (31.03.2017: 40.19%) Vanguard Global Bond Index Fund 4,074,755 600,444,025 19.15 Vanguard U.K. Government Bond Index Fund 1,148,469 183,040,480 5.84 Vanguard U.K. Inflation-Linked Gilt Index Fund 1 622,363 113,479,579 3.62 Vanguard U.K. Investment Grade Bond Index Fund 1,209,014 112,674,301 3.59 Vanguard U.S. Investment Grade Credit Index Fund 529,016 60,772,520 1.94 Vanguard Euro Government Bond Index Fund 499,526 58,293,474 1.86 Vanguard U.S. Government Bond Index Fund 516,263 55,046,812 1.76 Vanguard Japan Government Bond Index Fund 323,353 35,657,099 1.14 Vanguard Euro Investment Grade Bond Index Fund 247,058 28,168,436 0.90 Vanguard U.K. Gilt UCITS ETF 62,259 1,404,669 0.04 1,248,981,395 39.84 Portfolio of Investments 3,132,960,006 99.93 Net Other Assets 2,318,886 0.07 Net Assets Attributable to Shareholders 3,135,278,892 100.00 1 The ACD of this Fund is Vanguard Investments UK, Limited. 17

LifeStrategy 60% Equity Fund Balance Sheet As at As at 30 September 2017 31 March 2017 ( ) ( ) Assets: Investment Assets 3,132,960,006 2,508,357,687 Current Assets Debtors 8,268,615 19,295,126 Cash and Bank Balances 4,376,332 803,161 Total Assets 3,145,604,953 2,528,455,974 Liabilities: Creditors Distribution Payable 4,158,267 Other Creditors 10,326,061 19,611,976 Total Liabilities 10,326,061 23,770,243 Net Assets Attributable to Shareholders 3,135,278,892 2,504,685,731 Statement of Total Return 30 September 2017 30 September 2017 30 September 2016 30 September 2016 ( ) ( ) ( ) ( ) Income Net Capital Gains/(Losses) 39,782,154 177,521,277 Revenue 7,126,764 6,281,848* Expenses (1,023,327) (714,953)* Net Revenue Before Taxation 6,103,437 5,566,895 Taxation (1,220,687) (1,094,306) Net Revenue After Taxation 4,882,750 4,472,589 Total Return Before Distributions 44,664,904 181,993,866 Distributions 197,607 333,938 Change in Net Assets Attributable to Shareholders From Investment Activities 44,862,511 182,327,804 * Comparative figures have been restated to reallocate the reduction for Synthetic OCF of underlying Funds from Revenue into Expenses. Statement of Change in Net Assets Attributable to Shareholders 30 September 2017 30 September 2017 30 September 2016 30 September 2016 ( ) ( ) ( ) ( ) Opening Net Assets Attributable to Shareholders 2,504,685,731 1,303,223,122 Amounts Received on Issue of Shares 600,044,668 345,276,488 Amounts Paid on Cancellation of Shares (14,314,018) (7,248,022) 585,730,650 338,028,466 Change in Net Assets Attributable to Shareholders From Investment Activities 44,862,511 182,327,804 Closing Net Assets Attributable to Shareholders 3,135,278,892 1,823,579,392 18

LifeStrategy 80% Equity Fund Fund Profile As at 30 September 2017 Investment Objective The Fund seeks to gain exposure to a diversified notional portfolio composed approximately 80% by value of equity securities and 20% by value of fixed income securities. Investment Strategy The Fund will seek to achieve its investment objective predominantly through investment in passive, index-tracking collective investment schemes. Risk Profile The value of investments, and the income from them, may fall or rise and investors may get back less than they invested. The value of this investment may fall or rise as a result of changes in exchange rates. This Fund invests in emerging markets, which can be more volatile than more established markets. As a result, the value of your investment may rise or fall. 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. Allocation to Underlying Vanguard Funds (% of Underlying Vanguard Funds) Vanguard U.S. Equity Index Fund 19.4% Vanguard FTSE Developed World ex-u.k. Equity Index Fund 19.3 Vanguard FTSE U.K. All Share Index Unit Trust 18.4 Vanguard Global Bond Index Fund 13.9 Vanguard FTSE Developed Europe ex-u.k. Equity Index Fund 6.8 Vanguard Emerging Markets Stock Index Fund 6.2 Vanguard Japan Stock Index Fund 3.6 Vanguard S&P 500 UCITS ETF 3.0 Vanguard U.K. Government Bond Index Fund 2.5 Vanguard Pacific ex-japan Stock Index Fund 1.8 Vanguard U.K. Inflation-Linked Gilt Index Fund 1.8 Vanguard FTSE 100 UCITS ETF 1.7 Vanguard U.K. Investment Grade Bond Index Fund 1.6 Vanguard U.K. Gilt UCITS ETF 0.0 Portfolio Characteristics 30 September 2017 31 March 2017 Ongoing Charges Figure 1 A GBP Accumulation Shares Expenses 0.09% 0.11% Synthetic Element 0.13% 0.11% Total Synthetic Ongoing Charge 1 0.22% 0.22% A GBP Income Shares Expenses 0.09% 0.11% Synthetic Element 0.13% 0.11% Total Synthetic Ongoing Charge 1 0.22% 0.22% Ex-Dividend Date 1 April 2018 1 April 2017 Distribution Date 31 May 2018 31 May 2017 Fund Market Diversification (% of Underlying Vanguard Funds) North American Equities 34.9% UK Equities 20.1 Global Bonds 13.9 European ex-uk Equities 10.4 Emerging Markets Equities 6.2 Japan Equities 5.5 Asia ex-japan Equities 3.1 UK Gilts 2.5 UK Inflation-Linked Gilts 1.8 UK Investment-Grade Bonds 1.6 Fund Asset Allocation (% of Net Asset Value) n n 80% Equity-Based Collective Investment Schemes 20% Fixed Income-Based Collective Investment Schemes Synthetic Risk and Reward Indicator 2 Lower risk Typically lower rewards Higher risk Typically higher rewards 1 2 3 4 5 6 7 1 The Ongoing Charges Figure (OCF) is the ratio of the Fund s total discloseable costs (excluding overdraft interest) to the average net assets of the Fund. Because the Fund invests a substantial proportion of its assets in other UCITS or Collective Investment Undertakings (CIU), it is required to disclose a synthetic OCF that accounts for the ongoing charges incurred in the underlying CIUs. 2 The Synthetic Risk and Reward Indicator (SRRI) measures the volatility of the Fund. 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 Fund s future risk profile. The risk and reward category may shift over time and is not a target or guarantee. The lowest category (i.e. category 1) does not mean risk free. The Fund appears in the middle range of the risk and reward indicator. This is because the values of the Fund s investments have experienced a moderate rate of change in the past. 19

LifeStrategy 80% Equity Fund Commentary On behalf of Vanguard Asset Management, Limited 1 For the six months ended 30 September 2017, Vanguard LifeStrategy 80% Equity Fund returned 2.12% for both Accumulation Shares and Income Shares. Global stocks outperformed bonds as investors favoured riskier assets. Key central banks, including the Bank of England, continued their accommodative monetary policies, and economic indicators in most countries pointed to steady growth. UK stocks gained about 4%. Financials, oil and gas, industrials and basic materials added the most to results. Health care, utilities, consumer goods and telecommunications detracted. Developed European stock markets outside of the United Kingdom returned about 9%. US stocks were essentially flat, and Japanese stocks returned about 2%. Strong performers in Europe included France, Germany and Italy. Emerging-market stocks returned about 7%. China, South Korea, Taiwan, Brazil and Poland were among the top contributors. Global fixed income markets returned about 1%. In the United Kingdom, the yield of the benchmark 10-year gilt rose from 1.14% to 1.37%. (Bond yields and prices move in opposite directions.) UK government bonds returned about 2%, trailing their investment-grade counterparts, which returned about 1%. Inflation-linked gilts returned about 3% as the rebound in the British pound contributed to lower inflation expectations. European government bonds outpaced those of the United States and Japan, and US investment-grade bonds did better than those in Europe. Total Returns Total Returns Periods Ended 30 September 2017 Annualised Annualised Since Inception Six Months Five Years (23 June 2011) A GBP Accumulation Shares 2.12% 11.71% 10.25% A GBP Income Shares 2.12 11.71 10.25 Past performance is not a reliable indicator of future results. Basis of performance: NAV to NAV with net income reinvested. Performance Information As at As at As at As at A GBP Accumulation Shares 30 September 2017 31 March 2017 31 March 2016 31 March 2015 Closing Net Asset Value 2 1,379,456,874 1,101,804,658 575,179,715 383,395,712 Closing Number of Shares 7,480,104 6,101,094 3,966,741 2,624,648 Closing Net Asset Value Per Share 2 184.42 180.59 145.00 146.08 Operating Charges 3 0.22% 0.24% 0.24% 0.24% A GBP Income Shares Closing Net Asset Value 2 105,144,606 86,696,622 42,763,345 28,447,383 Closing Number of Shares 625,357 526,563 318,136 206,619 Closing Net Asset Value Per Share 2 168.14 164.65 134.42 137.68 Operating Charges 3 0.22% 0.24% 0.24% 0.24% 1 The Vanguard Group, Inc., as investment adviser for Vanguard LifeStrategy Funds ICVC, sub-delegates the management of this sub-fund to Vanguard Asset Management, Limited. 2 Underlying investments are valued at bid-market prices. 3 Operating charges include indirect costs incurred in the maintenance and running of the Fund, as disclosed in (but not limited to) the detailed expenses within the Statement of Total Return. The figures used within this table have been calculated against the average Shares in issue for the accounting period. 20