US SEC Filing Announcement for the Vanguard® Exchange Traded Funds
Total Page：16
File Type：pdf, Size：1020Kb
US SEC Filing Announcement for the Vanguard® Exchange Traded Funds 27 June 2013 Vanguard Investments Australia Ltd announces the following: ETF ASX ANNOUNCEMENT CODE Vanguard® All-World ex-US Shares Index ETF VEU US SEC Filing of Form N-CSRS The Vanguard Group, Inc. in the US has completed and filed Form N-CSRS (certified semi-annual shareholder report filed on Form N-CSR) for Registered Investment Companies with the Securities and Exchange Commission (SEC) in the US as part of the regulatory requirements of the SEC. The completed form is attached and can be viewed online at the SEC website pages at: http://www.sec.gov/Archives/edgar/data/857489/000093247113006973/0000932471-13-006973-index.htm Further details of the SEC requirements for this filing are available at: • www.sec.gov/about/forms/formn-csr.pdf Further Information If you have any queries on Vanguard ETFs, please visit vanguard.com.au/etf © 2013 Vanguard Investments Australia Ltd (ABN 72 072 881 086 / AFS Licence 227263) (Vanguard) is the issuer of the Prospectus on behalf of the US listed ETFs described in the Prospectus. Vanguard has arranged for the interests in the US ETFs to be made available to Australian investors via CHESS Depositary Interests (CDIs) that are quoted on the AQUA market of the ASX. Vanguard is a wholly owned subsidiary of The Vanguard Group, Inc. based in the US. All rights reserved. Vanguard Investments Australia Ltd, Level 34, Freshwater Place, 2 Southbank Boulevard, Southbank VIC 3006 vanguard.com.au 1300 655 888 UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM N-CSR CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES Investment Company Act file number: 811-05972 Name of Registrant: Vanguard International Equity Index Funds Address of Registrant: P.O. Box 2600 Valley Forge, PA 19482 Name and address of agent for service: Heidi Stam, Esquire P.O. Box 876 Valley Forge, PA 19482 Registrant’s telephone number, including area code: (610) 669-1000 Date of fiscal year end: October 31 Date of reporting period: November 1, 2012 – April 30, 2013 Item 1: Reports to Shareholders Semiannual Report | April 30, 2013 Vanguard FTSE International Index Funds Vanguard FTSE All-World ex-US Index Fund Vanguard FTSE All-World ex-US Small-Cap Index Fund > For the six months ended April 30, 2013, Vanguard FTSE All-World ex-US Index Fund and Vanguard FTSE All-World ex-US Small-Cap Index Fund each returned slightly less than 13% for all share classes. > Both funds closely tracked their benchmark indexes but trailed the average return of peer funds. > Developed markets outperformed emerging markets, with stocks from the Pacific region providing the highest returns. Contents Your Fund’s Total Returns. 1 Chairman’s Letter. 2 FTSE All-World ex-US Index Fund. 9 FTSE All-World ex-US Small-Cap Index Fund. 32 About Your Fund’s Expenses. 49 Trustees Approve Advisory Arrangements. .51 Glossary. 52 Please note: The opinions expressed in this report are just that—informed opinions. They should not be considered promises or advice. Also, please keep in mind that the information and opinions cover the period through the date on the front of this report. Of course, the risks of investing in your fund are spelled out in the prospectus. See the Glossary for definitions of investment terms used in this report. About the cover: Our cover photograph shows rigging on the HMS Surprise, a replica of an 18th-century Royal Navy frigate. It was featured in the 2003 movie Master and Commander: The Far Side of the World, which was based on Patrick O’Brian’s sea novels, set amid the Napoleonic Wars. Vanguard was named for another ship of that era, the HMS Vanguard, which was the flagship of British Admiral Horatio Nelson at the Battle of the Nile. Your Fund’s Total Returns Six Months Ended April 30, 2013 Total Returns Vanguard FTSE All-World ex-US Index Fund Investor Shares 12.71% Admiral™ Shares 12.79 Institutional Shares 12.81 Institutional Plus Shares 12.82 ETF Shares Market Price 12.75 Net Asset Value 12.78 FTSE All-World ex US Index 12.91 International Funds Average 13.59 International Funds Average: Derived from data provided by Lipper Inc. Vanguard FTSE All-World ex-US Small-Cap Index Fund Investor Shares 12.71% Institutional Shares 12.84 ETF Shares Market Price 13.07 Net Asset Value 12.82 FTSE Global Small Cap ex US Index 12.83 International Small-Cap Funds Average 16.23 International Small-Cap Funds Average: Derived from data provided by Lipper Inc. Admiral Shares carry lower expenses and are available to investors who meet certain account-balance requirements. Institutional Shares and Institutional Plus Shares are available to certain institutional investors who meet specific administrative, service, and account-size criteria. The Vanguard ETF® Shares shown are traded on the NYSE Arca exchange and are available only through brokers. The table provides ETF returns based on both the NYSE Arca market price and the net asset value for a share. U.S. Pat. No. 6,879,964 B2; 7,337,138; 7,720,749; 7,925,573; 8,090,646. For the ETF Shares, the market price is determined by the midpoint of the bid-offer spread as of the closing time of the New York Stock Exchange (generally 4 p.m., Eastern time). The net asset value is also determined as of the NYSE closing time. For more information about how the ETF Shares' market prices have compared with their net asset value, visit vanguard.com, select your ETF, and then select the Price and Performance tab. The ETF premium/discount analysis there shows the percentages of days on which the ETF Shares' market price was above or below the NAV. Index returns are adjusted for withholding taxes applicable to U.S.-based mutual funds organized as Delaware statutory trusts. 1 Dear Shareholder, Although international stock markets certainly weren’t immune to volatility over the six months ended April 30, 2013, their performance was smoother than it had been in recent years. Apart from short rough patches related to political issues in Europe and economic concerns in emerging markets, the journey was largely free of jolts, and Chairman’s Letter it ended with double-digit returns. Both Vanguard FTSE All-World ex-US Index Fund and Vanguard FTSE All-World ex-US Small-Cap Index Fund returned slightly less than 13%. Both funds closely tracked their benchmark indexes but lagged the average returns of their respective peer groups, which include actively managed and indexed international funds. The global stock rally persisted, but not without challenges In aggregate, stocks worldwide recorded gains in five of the six months ended April 30. The performance of the two FTSE funds reflects the overall strength of international markets, although there was considerable variation among regions. U.S. equities finished the half year with a return of about 15%. The S&P 500 Index closed April the same way it had March: at an all-time high amid solid corporate earnings and encouraging economic data. 2 Despite the impressive results and 1.69% and lower still than the 1.85% it relatively low volatility, the period had registered at the end of March. (Bond its share of potential pitfalls. Investors yields and prices move in opposite continued to worry about the pace of directions.) growth in China and the United States. And the deadly Boston Marathon bombing Municipal bonds delivered a return closer on April 15 triggered market anxiety. to 2%, with more than half the gain coming in April. The Federal Reserve’s target for Bonds notched a slight return short-term interest rates remained pegged as yields remained low between 0% and 0.25%, which kept a firm Bonds, after sputtering for most of the half leash on returns from money market and year, finished it with a bit of a flourish. The savings accounts. In a statement issued broad U.S. taxable bond market returned May 1, the Fed said it would continue 0.9% for the six months, following a 1.0% buying $85 billion a month in U.S. Treasury boost in April. The yield of the 10-year U.S. bonds and mortgage-backed securities Treasury note closed the period at 1.67%, until the job market improves substantially. a couple of ticks below its starting level of Market Barometer Total Returns Periods Ended April 30, 2013 Six One Five Years Months Year (Annualized) Stocks Russell 1000 Index (Large-caps) 15.05% 17.17% 5.49% Russell 2000 Index (Small-caps) 16.58 17.69 7.27 Russell 3000 Index (Broad U.S. market) 15.16 17.21 5.63 MSCI All Country World Index ex USA (International) 12.78 14.15 -0.84 Bonds Barclays U.S. Aggregate Bond Index (Broad taxable market) 0.90% 3.68% 5.72% Barclays Municipal Bond Index (Broad tax-exempt market) 1.78 5.19 6.09 Citigroup Three-Month U.S. Treasury Bill Index 0.05 0.08 0.28 CPI Consumer Price Index 0.52% 1.06% 1.60% 3 Kenneth Volpert, head of our Taxable markets when an economy emerges from Bond Group, noted recently that the Fed’s a recession, as their nimbler operations extraordinary actions to stimulate growth translate to superior growth rates. But the may have, in effect, pulled what would improved conditions eventually serve large have been future investment gains into companies, too, as they benefit from their the present. The trade-off, he said, is more formidable resources and diversity of that once the Fed begins to unwind the business lines.