Vanguard Repurchase Agreement

Under new money market reforms, sovereign wealth funds must invest at least 99.5% of their total assets in cash, government bonds and/or pension transactions exclusively guaranteed by government securities or cash (excluding government bonds). As a general rule, the fund invests 100% of its assets in government bonds and will therefore meet the 99.5% requirement to be designated as a public monetary fund. With the Prime Money Market Fund, the fund giant aims to improve credit quality and liquidity levels by investing «almost exclusively» in U.S. Treasury bonds, cash transactions and pensions exclusively guaranteed by the U.S. government. A sovereign money market fund must hold at least 99.5% of its assets in cash, U.S. Treasury bonds and/or pension transactions exclusively guaranteed by U.S. Treasury bonds or cash. On the other hand, a premium money consumer fund can invest heavily in certain corporate-issued securities — most often commercial securities — as well as in U.S. government-issued securities and other money market securities.

The fund is for investors with low risk tolerance; However, the fund is subject to the following risks, which could affect the fund`s performance: The owners of Current Admiral Shares (VMRXX): they do not have to act. Vanguard Cash Reserves Federal Money Market Fund is designated as a public money fund designed to reduce the fund`s credit risk and strengthen its liquidity. Vanguard Personal Advisor Clients Who owners Investor Shares (VMMXX): We will automatically convert your investor shares into «Admiral Shares» in the next quarterly overweight. Talk to a counsellor if you have any questions about this transition. Note: Our control service is not available for the fund`s flagship stock class. Checkwriting is available for vanguard Federal Money Market Fund and other Vanguard money market funds. With effect as of September 29, the Vanguard Prime Money Market Fund has a new name, a new investment strategy and a change in its investor class. Here are the details of the changes: Due to the low interest rate environment and tight credit spreads, Vanguard has already increased its exposure to government bonds while reducing investment in commercial securities, it is said.

The fund invests primarily in high-quality short-term money market instruments issued by the U.S. government and its agencies and instruments. Although these securities are of high quality, most of the securities held by the Fund are not guaranteed by the U.S. Treasury, nor are they supported by full faith and U.S. loans.