a complimentary analysis of your investments prepared for portfolio... · stock portfolio as...

A complimentary analysis ofyour investments prepared for:

SSA Foundation

As of June 30, 2014

What You'll See About Risk

Because diversification is a powerful risk-reduction tool, most sectionsof this report focus on the degree to which your stock and bondholdings are diversified.1

We compare your stock investments with overall market benchmarks,as they are the very definition of stock-market diversification. The moreyour holdings vary from overall market weightings in terms ofcapitalization, style, and industry sector, the greater the probability thatyour returns will differ, higher or lower, from the market. For your bondportfolio, we gauge diversification by analyzing the overall credit qualityand interest rate sensitivity of your bond holdings.

Of course, you or your investment manager may have chosen to deviatefrom stock-market benchmark weights to try for higher returns andaccept the higher risks, or to concentrate on certain bonds to meetspecific investment goals.

The results of each analysis will be accompanied by one of these icons:

Your portfolio is characterized by broad diversification, low costs,or tax efficiency.

Some aspect of your portfolio appears to add a moderateamount of risk, cost, or extra taxes.

Some aspect of your portfolio appears to add a substantialamount of risk, cost, or extra taxes.

This information can help you better manage your portfolio.

Note: All footnotes appear at the end of the report.

How to Use This Analysis

Vanguard is pleased to provide you with Portfolio Watch, an analysis of your portfolio based on ourtime−tested investment principles. Our goal in providing it to you is to help you better monitor andmanage your portfolio by focusing on investment factors you can control. We’ve designed our analysis tobe informative to sophisticated and novice investors alike.

Much of this report deals with risk because although it is inevitable in investing, risk is a factor you cancontrol to a large extent. And, once you understand the types of risks your portfolio is most vulnerable to,you can decide whether they’re at a level you are comfortable with. We also focus on some of theinvestment and tax costs that inevitably shrink returns, because cost is another factor you can control.

We examined your investments−all your Vanguard® assets, assets you hold in a Vanguard® Brokerageaccount, and any non−Vanguard assets you track on vanguard.com from multiple points of view:

Your overall exposure to market risk (Section 2).

Your exposure to specific risks in the stock and bond markets (Sections 3, 4, and 5).

Your mutual fund costs and the tax efficiency of your portfolio (Sections 6 and 7).

The report concludes with steps you can take to update and further customize your analysis or to get helpin fine−tuning your investment strategy (Section 8).

A member of your Voyager Service® team will be happy to discuss any aspect of this report with you,including Vanguard’s planning and advice services, which can provide you with specificrecommendations based on your personal situation and investment goals. You can reach your Voyager team at 1-800-284-7245. For more information about Vanguard funds, visit www.vanguard.com, or call 1-800-284-7245, to obtain a prospectus.Investment objectives, risks, charges, expenses, and other important information about a fund are contained in theprospectus; read and consider it carefully before investing.

1. Assets Analyzed Vanguard accounts $3,286,248.87

Outside investments $0.00

Total assets $3,286,248.87

Your report takes into consideration all the accountsyou hold at Vanguard and the outside investments youtrack on our website. All the accounts are listed inSection 9.

2. Your Asset Allocation Vanguard's Investment Principles How a portfolio is allocated among asset classes is

the most significant determinant of long−termreturns.

The most important decision investors make is themix of assets they select, not the individualinvestments they purchase. Asset mix should bebased on an investor’s financial objectives, risktolerance, and time horizon (which is ofteninfluenced by an investor’s age).

In choosing an asset mix, investors should balancetheir need for asset growth against their willingnessto accept the negative returns that a given mixcould produce in some years.

Understanding the volatility of past returnsassociated with a given asset mix will helpinvestors assess their risk tolerance. Investorsshouldn’t expect future long−term returns to differsignificantly from the markets’ long−term historicalaverages.

Your Current Asset AllocationStock 62.6%

Bond 37.4%

Short-term reserves 0.0%

Other 0.0%

Total 100.0%

This chart and table categorize your holdings basedon 3 broad asset classes−stocks, bonds, and short−term reserves.2

To get the most out of your analysis, include your non-Vanguardassets. You can enter them as outside investments on vanguard.com.

Page 1 of 13

2. Your Asset Allocation (cont.)

Historical Returns and Volatility ofan Asset Allocation Similar toYours 3

Average annual total return, 1926-2013 8.9%

Volatility of returns: Best single year 37.8% (1933)

Worst single year -27.7% (1931)

Number and percentage ofyears with a loss

22 of 88(25.0%)

This table does not reflect actual historicalperformance for your portfolio. It is designed to helpyou gauge your tolerance for market fluctuations byshowing what the performance would have been for aportfolio that both had your current asset mixthroughout the period shown and waswell−diversified.

These returns are based on broad market indexes; the returns ofyour holdings might have been more volatile.

3. Your Stock Portfolio Vanguard's Investment Principles Broad diversification across all segments of the

domestic stock market reduces volatility. Large−, mid−, and small−capitalization stocks

should be held in proportions similar to those of theoverall U.S. stock market.

Investors should hold both growth stocks and valuestocks in similar proportions.

International investing aids diversification. Becauseof the additional risks inherent in internationalinvesting, we believe that no more than 40% of astock portfolio should be invested abroad.

An Important Stock Investing ConsiderationSome individual investors and fund managers aim forhigher−than−market returns by emphasizing stocks ofcertain market capitalizations, investing styles, orindustry sectors. These investors take on the risk thattheir return will be less than that of the market ifassets they’re overweighted in perform poorly orthose that they’re underweighted in perform well.Consistently outperforming the market by deviatingfrom market weightings is extremely difficult.

Vanguard Portfolio Watch Prepared for SSA FoundationFor the Period Ending June 30, 2014 Page 2 of 13

Individual Stocks and Stock Funds62.7% of Your Analyzed AssetsDomestic and International

U.S. stocks 69.3%

International stocks 30.7%

Uncategorized stocks 0.0%

Total 100.0%

your portfolio.

Domestic Stocks and Stock Funds43.5% of Your Analyzed AssetsMarket Capitalization

Your stockportfolio

U.S. stockmarket 4

Difference(percentage pts)

Large cap 64.0% 64.0% 0.0

Mid cap 28.0% 28.0% 0.0

Small cap 8.0% 8.0% 0.0

Total 100.0% 100.0%

This table shows the size of the companies in yourstock portfolio as measured by their capitalization, orthe total market value of their shares.

Your domestic stock holdings are well diversified among large-, mid-,and small-capitalization companies.

Investment Style

Growth

You Market

Over/Under weighting(percentage points)

Value

Your stockportfolio

Value 0.0%

Blend 100.0%

Growth 0.0%

Total 100.0%

The predominant investment style−"growth," "value,"or a "blend" of both−of your stock holdings is shownin the bar chart. The overall style is based on theproportionate mix of each style in your stockportfolio, shown in the table.5

Your portfolio has a good balance of value stocks and growth stocks.

Page 3 of 13

3. Your Stock Portfolio (cont.)Industry Sectors Sector

Your stockportfolio

U.S. stockmarket 6


Basic materials 3.0% 3.0% 0.0

Communication services 4.0% 4.0% 0.0

Consumer cyclical 11.0% 11.0% 0.0

Consumer defensive 9.0% 9.0% 0.0

Energy 10.0% 10.0% 0.0

Financial services 14.0% 14.0% 0.0

Health care 13.0% 13.0% 0.0

Industrials 12.0% 12.0% 0.0

Real estate 4.0% 4.0% 0.0

Technology 17.0% 17.0% 0.0

Utilities 3.0% 3.0% 0.0

Total 100.0% 100.0%

This table breaks down your stock holdings byindustry sector and compares the weighting of eachwith those of the market.

International Stocks and StockFunds19.2% of Your Analyzed Assets

Your stockportfolio

Stock markets outside theU.S.7


Developed Markets

Europe 46.4% 49.0% -2.6

Pacific 27.6% 23.0% 4.6

Canada 7.5% 7.0% 0.5

Emerging Markets 18.1% 21.0% -2.9

Uncategorized Holdings 0.4% 0.0% 0.4

Total 100.0% 100.0%

This table shows how your foreign stock holdings areallocated to various regions based on market value. Italso compares your allocation with the weightings ofan international stock benchmark.

Your proportions of stocks from developed and emerging markets aresimilar to the market's, which means your overall international stockreturns should closely match those of the market.


4. Your Bond Portfolio Vanguard's Investment Principles While stocks are the driving force behind long−term

portfolio growth, bonds−which typically fluctuatefar less than stocks−should be included in mostportfolios to temper stocks’ short−term volatility.

Broad diversification of bond holdings−in terms ofcredit quality and interest rate sensitivity−helps toreduce risk. Investors may also choose not todiversify (within limits) if they’re aware of thetradeoffs. For example, an investor mayconcentrate on Treasury bonds to eliminate creditrisk (at the cost of lower returns over the long termcompared with investing in corporate bonds). Or, aninvestor may emphasize short−term bonds tominimize interest rate sensitivity (and give up thehigher income that longer−term bonds provide).

Important Bond Relationships Credit quality refers to the likelihood that a bond’s

principal will be repaid by the issuer. The higher abond’s credit quality, the lower the risk ofnonpayment or default−and, generally, the lowerthe yield.

Bond prices change in the opposite direction ofinterest rate changes. We refer to the magnitude ofthe price change as interest rate sensitivity. Thelonger a bond’s maturity, the greater its price willfluctuate in response to changes in interest rates.

Individual Bonds and Bond Funds37.3% of Your Analyzed AssetsDomestic and International

Domestic bonds 100.0%

International bonds 0.0%

Uncategorized bonds 0.0%

Total 100.0%

Bonds are categorized as either domestic orinternational.

Adding some currency-hedged, foreign bonds couldpotentially increase your portfolio diversification. An allocation of about20% of your bonds in a low-cost, currency-hedged, international bond fundis a reasonable approach to capture the diversification benefits.

Individual Bonds and Bond Funds37.3% of Your Analyzed AssetsTaxable and Municipal

Taxable bonds 100.0%

Municipal bonds 0.0%

Uncategorized bonds 0.0%

Total 100.0%

Bonds are categorized as either taxable (interest issubject to income tax) or municipal (interest isgenerally free from income tax).

This section focuses on the credit quality and interestrate sensitivity of your bonds. The tax aspects of yourbonds are addressed in Section 7.

Page 5 of 13

4. Your Bond Portfolio (cont.)

Credit Quality 8

37.3% of Your Analyzed AssetsYour taxable

bondsYour municipal

bonds Your total bonds

High 38.5% 0.0% 38.5%

Medium 60.9% 0.0% 60.9%

Low 0.6% 0.0% 0.6%

Total 100.0% 0.0% 100.0%

This table shows what portion of your bond holdingsare invested in bonds with high, medium, and lowcredit quality. Excludes international bond holdings.

Your investments in low-credit-quality bonds, which have a greaterrisk of default than higher-credit-quality bonds, provide some diversificationand higher yields.

However, the overall fund is categorized as a high-credit-quality,medium-interest-rate-sensitive investment.

Interest Rate Sensitivity 9

37.3% of Your Analyzed AssetsYour taxable

bondsYour municipal

bonds Your total bonds

High (Long-term) 7.5% 0.0% 7.5%

Medium (Intermediate-term) 51.9% 0.0% 51.9%

Low (Short-term) 40.6% 0.0% 40.6%

Total 100.0% 0.0% 100.0%

This table shows what portion of your bond holdingsare invested in bonds with high, medium, and lowinterest rate sensitivity. Excludes international bondholdings.

Your bond holdings are not weighted strongly toward short- or long-term bonds.


5. Manager Risk Vanguard's Investment Principles It is difficult for anyone to predict−consistently and

accurately−which individual securities or activelymanaged funds will outperform the market.

Diversified portfolios minimize risk because subparperformance in one area often can be tempered bygood performance in another.

Index funds, which track the returns of a marketbenchmark and don’t try to predict whichindividual securities will perform well, are anefficient and low−cost way to diversify across amarket or market segment.

Although most actively managed funds don’toutperform the market over the long term, someactively managed funds do offer the potential forabove−market returns. For investors who chooseactively managed funds, select funds that operate atthe lowest possible cost.

Combining active and indexing strategies offers thebest of both worlds: the low costs and relativeperformance predictability of index funds and thepotential for outperformance offered by activelymanaged funds, albeit at a higher cost than indexfunds.

Holding individual securities dilutes portfoliodiversification and can significantly amplifyportfolio volatility.

Types of Stock and BondInvestments Index funds 81.5%

Actively managed funds 18.5%

Individual stocks 0.0%

Individual bonds 0.0%

Other assets 0.0%

Total 100.0%

Index funds are the core of your portfolio, providing the benefit ofsignificant diversification at low cost. Including one or more carefullychosen, low-cost, actively managed funds can add the potential for above-market returns.

Page 7 of 13

6. Investment Costs Vanguard's Investment Principles Costs matter a great deal. Investment returns are

reduced dollar for dollar by fees, commissions,transaction expenses, and any taxes incurred.(Taxes are addressed in Section 7.)

Low−cost funds have a head start compared withhigh−cost funds that have similar objectives,because expenses act as a drag on returns.

Mutual Fund Expense Ratios10

0.19%

1.08%

0.08%

1.00%

Vanguardfund average

Mutual fund industry average

Your portfolio's average

Mutual fund expenses

Your savings

A mutual fund’s operating costs are expressed as itsexpense ratio, which is the percentage of assets usedto pay such costs over the course of a year.11

The average annual expense ratio for the mutual funds in yourportfolio is substantially lower than the average annual expense ratio ofthe industry. Your savings, compared with the costs of the industryaverage mutual fund, would have been approximately $32,791 during thepast year.

Not shown are other investment costs: Somecompanies charge loads, commissions, and other feesthat reduce your net investment returns.

Note: Expense ratio data provided by Vanguard andLipper Inc. as of December 31, 2013.


7. Tax Efficiency of YourPortfolio

Vanguard's Investment Principles Investors should maximize the tax efficiency of their

portfolio because taxes have the potential for takingthe biggest bite out of investment returns over thelong run.

To save on taxes, investors should use tax−advantaged retirement accounts to the extentpossible. Those in a high tax bracket should alsoconsider municipal bond funds and tax−managedfunds.

Although tax−efficient investing is important,investors must also be sure to preserve the rightasset mix. When necessary, adjustments shouldgenerally be made in tax−advantaged accountswhenever possible.

Tax Efficiency Percentage of yourportfolio

Tax-advantaged accounts (such as IRAs, 401(k)accounts, and Education Savings Accounts) 0.0%

Other tax-efficient assets

Index and tax-managed stock and balanced funds 62.7%

Tax-free bonds, bond funds, and money market funds12 0.0%

Individual stocks 0.0%

Possible tax reduction opportunities

Other stock and balanced funds 0.0%

Taxable bonds and bond funds 37.3%

Taxable money market funds and other cash investments 0.0%

Other investments 0.0%

Total 100.0%

This table highlights holdings that are tax−efficient−those that minimize the tax bite−and those that maynot be.

Investors in high tax brackets can reduce taxes by investingin municipal bonds or bond funds or municipal money market funds. Asimple calculation can show whether you should hold taxable or municipalsecurities in your portfolio. Ask a member of your Voyager Service® teamto assist you with the comparison.

Page 9 of 13

8. Next Steps We hope you found this Portfolio Watch reportvaluable.

Here are some steps you can take to make thisanalysis even more helpful:

If you haven’t done so already, broaden this analysisby consolidating your non−Vanguard assets in aVanguard® Brokerage account or by entering yournon−Vanguard assets as "outside investments" on ourwebsite.

Customize this analysis by choosing onvanguard.com only the accounts you would like to use in youranalysis.

Use Vanguard’s Investor Questionnaire to create orconfirm your long−term target asset allocation. Thequestionnaire is available on our website. Or ask usfor a copy.

Preview how changes you’re considering will affectyour portfolio before you implement them throughour online Portfolio Tester(TM) tool. Note: Beforeyou make any changes to your portfolio, take anypotential tax consequences into consideration.

Use our advice services. A Vanguard financialplanner can prepare a customized plan for you. Or ourexperienced investment managers can manage yourassets for you on an ongoing basis.

vanguard.com.

Thank you for entrusting your assets to Vanguard!

9. Accounts Included in ThisAnalysis

We used the following accounts in analyzing yourportfolio. Note that some mutual funds may appear inthis listing more than once: This is because we haveseparated each fund’s holdings by asset class.To be most meaningful, any analysis of your portfolioshould include all your assets. You can make ananalysis more comprehensive by consolidating non−Vanguard assets in a Vanguard Brokerage account orby entering them as "outside investments" at vanguard.com. The value of your outside holdingswill be calculated as of the previous market close,rather than month−end.

Note: In the account listing, the abbreviation NAmeans that data is not available or not applicable.


Holdings Categorized by Asset Allocation

Domestic Large Cap Stocks Balance Percent of portfolio Expense ratio Active/Index Style Sector

The Soaring Society Of America FoundationAccount

Vanguard Total Stock Mkt Idx Adm (64%) $914,216.97 27.8% 0.1% Index Diversified Multisector

Domestic Mid/Small Cap Stocks Balance Percent of portfolio Expense ratio Active/Index Style Sector


Vanguard Total Stock Mkt Idx Adm (36%) $514,247.05 15.6% 0.1% Index Diversified Multisector

International Stocks Balance Percent of portfolio Expense ratio Active/Index Region


Vanguard Tot Intl Stock Ix Admiral $630,516.00 19.2% 0.1% Index Multiregion

Bonds Balance Percent of portfolio Expense ratio Active/IndexDomestic/

InternationalTaxable/Municipal

Credit qualityInterest ratesensitivity


Vanguard Inter-Term Invest-Gr Adm $386,062.10 11.7% 0.1% Active Domestic Taxable Medium Medium


Vanguard Short-Term Invest-Gr Adm $223,481.41 6.8% 0.1% Active Domestic Taxable Medium Low


Vanguard Total Bond Mkt Index Adm $617,725.34 18.8% 0.1% Index Domestic Taxable Various Various

Page 11 of 13

Portfolio Total $3,286,248.87 100.0%


Footnotes(Visit Vanguard.com for more details.)

1. (a) We have used the latest available data for both Vanguard and non-Vanguardinvestments at the time this report was generated. (b) Assets of Vanguard® fundsand non-Vanguard funds are generally categorized based on their long-terminvestment strategies and not the actual holding proportions at the time this reportwas produced. Some non-Vanguard fund holdings in subasset classes outside thefund's long-term strategy may be allocated to appropriate asset classes reflectingthis strategy. (c) Morningstar, Inc., provides the data for non-Vanguard funds andindividual stocks, unless otherwise noted. Vanguard's and Morningstar's methodsof categorizing funds may differ. (d) In some cases, your assets are labeled"uncategorized." This occurs when our external sources of data are unclear as tothe type of asset you're holding. (e) In a diversified portfolio, gains from someinvestments may help offset losses from others. However, diversification does notensure a profit or protect against a loss.

2. (a) Short-term reserves include assets such as money market funds, Treasurybills, and bank CDs. Bonds include short-term, intermediate-term, and long-termbonds as well as fixed annuities and stable value funds. (b) A category called"other assets" may also be shown if you track assets such as precious metals, unitinvestment trusts, and limited partnerships. "Other assets" also includes anyuncategorized assets.

3. (a) Period covered is from January 1, 1960, through the most current year-endavailable. (b) For stock market returns, we use the Wilshire 5000 Total MarketIndex for years after 1970 and the Standard & Poor's 500 Index from 1960 to 1970.For bond market returns, we use the Lehman Brothers U.S. Government/CreditBond Index for years after 1972, the Citigroup High Grade Index from 1969 to 1972,and the Standard & Poor's High Grade Corporate Index from 1960 to 1968. For thereturns on short-term reserves, we use the Citigroup 3-Month Treasury Bill Index.(c) If your portfolio includes other assets, it's assumed that they are spread pro rataamong stocks, bonds, and short-term reserves. (d) Treasury bills are guaranteed asto the timely payment of principal and interest; U.S. corporate bonds and stockscarry no such guarantee. (e) The returns shown include the reinvestment ofdividend income and capital gains distributions; they do not reflect the effects ofinvestment expenses and taxes. (f) Past performance is not a guarantee of futureresults.

4. The U.S. stock market is represented by the MSCI® US Broad Market Index. Themarket-value categories for Vanguard funds are based on the Russell 3000 index;for non-Vanguard funds, on definitions provided by Morningstar.

5. The "value" style involves investing in stocks that are considered low-pricedcompared to the issuing company's potential earnings, sales growth, or assets.The "growth" style involves investing in stocks of companies that have fast-growing sales and earnings. Style classifications for non-Vanguard funds areprovided by Morningstar.

6. The U.S. stock market is represented by Vanguard® Total Stock Market IndexFund as a proxy for the MSCI® US Broad Market Index. Industry sectors arebased on Morningstar categories.

7. (a) The stock markets of developed countries outside the United States arerepresented by the MSCI All Country World Index Free ex-USA. Non-Vanguard fundsmay include emerging market countries in their developed-market categories. (b)Some U.S. stocks may be categorized as Canadian stocks. (c) Investments instocks issued by non-U.S. companies are subject to risks includingcountry/regional risk and currency risk.

8. Bond credit quality is based on ratings issued by Moody's Investors Service.

9. Interest rate sensitivity of bond mutual funds is described as duration, which isa measure of the volatility of a bond or bond fund in response to a change ininterest rates. The greater the duration (given in years), the greater the volatility.For individual bonds, we base interest rate sensitivity on their maturities becausecomprehensive duration data is not available. As with duration, the longer a bond'smaturity, the greater its volatility. Bond funds are subject to the risk that an issuerwill fail to make payments on time, and that bond prices will decline because ofrising interest rates or negative perceptions of an issuer's ability to makepayments.

10. (a) Your portfolio expense ratio is a weighted average of the expense ratios ofall the funds you own, excluding any annuities. (b) The industry average is non-dollar-weighted. Average excludes annuities. (c) Lipper Inc. is the source of theexpense ratios for the industry and non-Vanguard mutual funds. (d) Data forVanguard funds is as of the most recent year-end; data for other funds may be asof a different date.

11. We used your current mutual fund assets and their most recent year-endexpense ratios for the calculation, and assumed no change in the asset level,investment mix, or expense ratios of the funds you hold.

12. For some investors, a portion of the funds' income may be subject to state andlocal taxes as well as to the alternative minimum tax.

Page 13 of 13

Vanguard, The Vanguard Group, VanguardPortfolio Watch, Vanguard.com, Voyager,Voyager Service, Voyager Select Services,Vanguard Brokerage Services , PortfolioTester, and the ship logo are trademarks ofThe Vanguard Group, Inc.

Standard & Poor's® is a trademark ofThe McGraw-Hill Companies, Inc., and hasbeen licensed for use by The VanguardGroup, Inc. Vanguard mutual funds are notsponsored, endorsed, sold, or promoted byStandard & Poor's, and Standard & Poor'smakes no representation regarding theadvisability of investing in the funds.

All other marks are the exclusive propertyof their respective owners.

World Wide Web vanguard.comToll-Free Information1-800-284-7245

Vanguard is not responsible for theaccuracy of data obtained from non-Vanguard sources.

Vanguard Financial Planning Service isprovided by Vanguard Advisers, Inc., aregistered investment adviser.Vanguard® Asset Management Servicesare provided by Vanguard National TrustCompany, which is a federally charteredtrust company operated under thesupervision of the Office of theComptroller of the Currency.

© 2014 The Vanguard Group, Inc.All rights reserved. VanguardMarketing Corporation, Distributor ofthe Vanguard Funds.VYVYG 102003

Vanguard® Voyager Service®P.O. Box 1120Valley Forge, PA 19482−1120

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