(PUB) Investing 2015

given its foreign stock allocation has done admirably, gaining an annualized 8.8% over the 20-year span from Aug. 14, 1995, through Aug. 14, 2015. Total Stock Market’s gain over the period was 8.9%, Strategic Equity’s was 11.0%, and Capital Opportunity’s was 12.4%. But the numbers for Capital Oppor- tunity really understate its massive out- performance under the PRIMECAP Management team. From Feb. 1, 1998, when PRIMECAP took over Capital Opportunity, through Aug. 14, 2015, the team generated a whopping 14.1% annualized return compared to 6.7% for Total Stock Market Index and 9.4% for Strategic Equity. You and I have owned >

the fund for almost the entire period. Now, that’s what I call a horizon job!

Online Resources

Pink Slips August marked another couple of anniversaries for Vanguard, though I don’t know if they were celebrating. It was five years ago, in August 2010, that Vanguard gave the boot to AXA Rosenberg Investment Management, which at the time was managing money at Explorer , Market Neutral and U.S. Value . The quant firm apparently had some computer troubles andwasn’t forth- right about it. That earned them the axe. That same month, AllianceBernstein’s horrific growth stock team was finally fired from U.S. Growth . They didn’t have computers to blame, just bad stock- picking. All of the aforementioned funds’ shareholders have benefited from those moves. So, I guess “Happy Anniversary” is the right thing to say after all. n understate its massive outperformance under PRIMECAP Management. The numbers for Capital Opportunity really

Many of you regularly access our website and its members-only features. For those who haven’t logged in lately, here’s a brief reminder of what you can do online at www. AdviserOnline.com. n STAY ON TOP OF RECENT EVENTS with news articles. n SEARCH THE WEBSITE to find archived articles and answers to your questions. n GET THE LATEST ISSUE the minute it is published online in both HTML and PDF format. n ACCESS YEARS’ WORTH OF ARCHIVES f or issues, Hotlines and news articles. n USE THE ADVISERONLINE FORUM to share and discuss investment ideas with other members of the FFSA community. n CHECK THE CUSTOMER SERVICE PAGE for help with your subscriber account. And that’s just the beginning. These features will make it easier and more enjoyable for you to get all of the advice and information you are looking for. Visit www.AdviserOnline.com now to get the most from your subscription.

2.0 Horizon Jobs

1.8

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0.8

Capital Opportunity vs. TSM Strategic Equity vs. TSM Global Equity vs. TSM

0.6

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8/95

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8/01

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DAN’S DO-IT-NOW ACTION RECOMMENDATIONS 4 Bonds absolutely still have a role in balanced portfolios, but stick with corporate bonds and shorter maturities, like those in Short-Term Investment Grade ’s portfolio. (See page 1) 4 At least one Vanguard insider thinks the mutual fund giant could step up its security game. Opting for two-step verification is something you can do today to better protect your account. (See page 13) 4 The list of Vanguard funds paying quarterly distributions got a lot longer. Taxable investors will want to double-check so they don’t buy a distribution. (See page 15)

Daniel P. Wiener is America’s leading expert on the Vanguard family of funds. He is founder of the Fund Family Shareholder Association and chairman and chief executive officer of Adviser Investments, LLC, a Newton, Massachusetts, investment advisory firm (800-492-6868). As

Jeffrey D. DeMaso, Editor/Director of Research, works directly with Dan Wiener researching and writing the multiple-award winning Independent Adviser for Vanguard Investors newsletter. He also leads the analyst team for Adviser Investments, LLC. Jeff gradu-

editor of The Independent Adviser for Vanguard Investors , he is a five-time recipient of the Newsletter Publishers Foundation’s Editorial Excellence Award. He also edits the annual Independent Guide to the Vanguard Funds. Mr. Wiener is often quoted in the nation’s leading financial publications.

ated magna cum laude from Tufts University with a B.A. in economics, holds the Chartered Financial Analyst designation and is a member of the CFA Institute and the Boston Security Analysts Society.

16 • Fund Family Shareholder Association

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