International Explorer Fund (VINEX)

 
 

OPTIONS as of
02/25/2014

Options Expense ratio Minimum
Investor 0.36% $3,000

About our options  


 

Fees

Purchase fee:

A fee charged by some mutual funds when an investor buys shares. This fee is not a sales charge or load because it is paid directly to the fund to offset the costs of trading certain securities.

 None
Redemption fee:

A fee charged by some mutual funds when an investor sells shares. A redemption fee differs from a back-end load because the money is paid back into the fund. Many funds charge redemption fees only when shares are bought and then sold within a specific period of time, generally in an effort to discourage market-timing and short-term trading. Some brokers also charge their clients redemption fees for the sale of securities.

 None

KEY FACTS

DesignationInternational Small/Mid Growth
VINEX
 inception on 11/04/1996
$2.6 billion net assets for
VINEX
 as of 03/31/2014
323 holdings as of 03/31/2014
Benchmarked to the S&P EPAC SmallCap Index
Turnover rate (Fiscal year-end  10/31/2013) 35.80%

STYLEBOX

Stock
Diversified portfolio of non-U.S., smaller-capitalization stocks.



Expected range
Central tendency

About our styleboxes  

Investment approach



  • Non-U.S. equity with a small-cap bias.
  • Seeks long-term capital appreciation.
  • Broadly diversified, emphasizing developed countries.
  • Fundamental stock selection with region/country overlay.
  • Seeks undervalued, growth-oriented stocks.

Total returns

View as:

as of 03/31/2014

30%
25
20
15
10
5
0%
 
 
 
 
 
  1 year 3 year 5 year 10 year Since inception

11/04/1996

NAV 
27.57% 7.88% 20.56% 9.33% 10.43%
Benchmark

S&P EPAC SmallCap Index

*
23.43% 9.18% 20.75% 9.09%

Note: Fee adjusted for mutual funds where applicable.

* Measures the performance of the smallest companies from the European and Pacific countries represented in the S&P Broad Market Index. The EPAC SmallCap Index represents the bottom 15% of the total market capital of each country. Index returns are adjusted for withholding taxes.

The performance data shown represent past performance, which is not a guarantee of future results. Investment returns and principal value will fluctuate, so investors' shares, when sold, may be worth more or less than their original cost. Current performance may be lower or higher than the performance data cited.


People and process

Firms

Schroder Investment Management North America Inc.
Wellington Management Company, LLP

Product management

Vanguard International Explorer™ Fund uses a multimanager approach to seek long-term capital appreciation by investing in smaller, growth-oriented companies located outside the United States. One fund advisor uses a fundamental investment approach that focuses on company-specific factors, and the other employs a more opportunistic, bottom-up stance. Vanguard manages a small portion of the fund’s assets in stock index futures and/or exchange-traded funds to facilitate cash flows to and from the fund’s advisors.

Firm and manager details  

Regional exposure as of 03/31/2014

  Region  VINEX Benchmark

S&P EPAC SmallCap Index

+/- Weight
Europe 55.7% 62.0% – 6.3%
Pacific 30.8% 33.2% – 2.4%
Emerging Markets 7.3% 0.6% 6.7%
North America 0.1% 0.1% 0.0%
Middle East 0.0% 0.6% – 0.6%
Other 6.1% 3.5% 2.6%
0%
65%
Total 100.0% 100.0%  

Top 10 countries as of 03/31/2014

Country Region VINEX Benchmark

S&P EPAC SmallCap Index

+/- Weight
Japan Pacific 19.9% 19.6% 0.3%
United Kingdom Europe 16.6% 20.4% – 3.8%
Germany Europe 7.5% 8.2% – 0.7%
Other Other 6.1% 3.5% 2.6%
France Europe 5.2% 8.7% – 3.5%
Italy Europe 5.2% 2.8% 2.4%
Ireland Europe 4.7% 0.2% 4.5%
Australia Pacific 4.5% 5.9% – 1.4%
Switzerland Europe 3.8% 8.3% – 4.5%
Denmark Europe 3.6% 1.5% 2.1%
Top 10 equals 77.1% of stock

Country diversification details  

Sector weightings as of 03/31/2014

  Sector  VINEX Benchmark

S&P EPAC SmallCap Index

+/- Weight
Industrials 24.8% 24.0% 0.8%
Consumer Discretionary 19.8% 17.3% 2.5%
Financials 17.0% 22.1% – 5.1%
Materials 10.7% 9.4% 1.3%
Health Care 8.3% 6.1% 2.2%
Information Technology 7.2% 9.2% – 2.0%
Consumer Staples 5.1% 5.8% – 0.7%
Energy 2.7% 2.5% 0.2%
Telecommunication Services 2.5% 1.3% 1.2%
Utilities 1.5% 2.3% – 0.8%
Other 0.4% 0.0% 0.4%
0%
25%
Total 100.0% 100.0%

Sector categories are based on the Global Industry Classification Standard system.

Top 10 holdings as of 03/31/2014

Rank Holding
1 Delta Lloyd NV
2 Freenet AG
3 Helvetia Holding AG
4 Smurfit Kappa Group plc
5 Groupe Eurotunnel SA
6 Glanbia plc
7 Storebrand ASA
8 Borregaard ASA
9 Andritz AG
10 Maire Tecnimont SPA
Top 10 equals 12.1% of net assets

Portfolio holdings may exclude any temporary cash investments and equity index products.

Holdings policy for this fund  

Fundamentals

Stockas of 03/31/2014 VINEX Benchmark

S&P EPAC SmallCap Index

Number of stocks 323 3,227
Median market cap $2.2 billion $2.1 billion
P/E ratio 21.7x 22.7x
P/B ratio 1.9x 1.5x
Turnover rate 35.8% Fiscal year end 10/2013 N/A
% Emerging 7.30% 0.60%
% Developed 92.70% 99.40%

Risk and volatility as of 03/31/2014

  VINEX Benchmark

S&P EPAC SmallCap Index

R-squared N/A 0.97
Beta N/A 0.99
Alpha – 0.09 N/A
Standard deviation 16.98% 16.94%
Sharpe ratio 0.46 0.54

Risk and volatility are based on the share class with the earliest inception date.

Risk measures are calculated from trailing 36-month fund returns relative to the associated benchmarks.

An investment in the fund could lose money over short or even long periods. You should expect the fund’s share price and total return to fluctuate within a wide range, like the fluctuations of the overall stock market. The fund’s performance could be hurt by:

  • Stock market risk: The chance that stock prices overall will decline. Stock markets tend to move in cycles, with periods of rising stock prices and periods of falling stock prices. In addition, investments in foreign stock markets can be riskier than U.S. stock investments. The prices of foreign stocks and the prices of U.S. stocks have, at times, moved in opposite directions.
  • Country/regional risk: The chance that world events—such as political upheaval, financial troubles, or natural disasters—will adversely affect the value of securities issued by companies in foreign countries or regions. Because the fund may invest a large portion of its assets in securities of companies located in any one country or region, its performance may be hurt disproportionately by the poor performance of its investments in that area. Country/regional risk is especially high in emerging markets.
  • Currency risk: The chance that the value of a foreign investment, measured in U.S. dollars, will decrease because of unfavorable changes in currency exchange rates.
  • Investment style risk: The chance that returns from non-U.S. small-capitalization growth stocks will trail returns from the overall stock market. Historically, non-U.S. small-capitalization stocks have been more volatile in price than the large-cap stocks that dominate the overall market, and they often perform quite differently.
  • Manager risk: The chance that poor security selection or focus on securities in a particular sector, category, or group of companies will cause the fund to underperform relevant benchmarks or other funds with a similar investment objective.



 
 
 
 

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