Conservative Income Portfolio
The Conservative Income Portfolio invests entirely in the Vanguard LifeStrategy Income Fund (the “Income Fund”). The Income Fund invests in other Vanguard Mutual Funds according to a fixed formula that reflects an allocation of approximately 80% of the Income Fund’s assets to fixed income securities, and 20% to common stocks.
Investment Objective
The Conservative Income Portfolio seeks to provide a high level of current income and some capital appreciation.
Investment Strategy
The Conservative Income Portfolio invests entirely in the Vanguard LifeStrategy Income Fund (the “Income Fund”). The Income Fund invests in a mix of Vanguard Mutual Funds according to an asset allocation strategy that reflects an allocation of approximately 80% of the Income Fund’s assets to fixed income securities, and 20% to common stocks.
The Income Fund’s indirect bond holdings are a diversified mix of short-, intermediate-, and long-term U.S. government, U.S. agency, and Investment Grade U.S. corporate bonds; mortgage-backed and asset-backed Securities; and government, agency, corporate, and securitized investment-grade foreign bonds issued in currencies other than the U.S. dollar (but hedged by Vanguard to minimize foreign currency exposure). Its indirect stock holdings are a diversified mix of U.S. and foreign large-, mid-, and small-capitalization stocks. The Income Fund’s board of trustees allocates the Income Fund’s assets among the underlying funds based on the Income Fund’s investment objectives and policies. The Income Fund’s board of trustees may change these allocations from time to time without shareholder approval.
Investment Risks
Because the Conservative Income Portfolio invests entirely in the Income Fund, the Portfolio is proportionately subject to fixed income risks, including interest rate risk, credit risk, income risk, call risk, country/regional risk, and currency hedging risk; and stock risks, including stock market risk. The Portfolio is also subject to asset allocation risk and underlying fund risk.
To learn more about this investment portfolio, please visit Vanguard's website.
Ready to open an ABLEnow Account?
It only takes a few minutes
