Vanguard Global Advisers LLC

FEES AND COMPENSATION

VGA does not currently charge an advisory fee with respect to the Service, and neither VGA
nor its affiliates are otherwise directly compensated for the Service. They will, however,
receive compensation in the form of product fees where Portfolios include an allocation to a
Vanguard UCITS. Each Vanguard UCITS incurs advisory, administrative, and custodial fees, as
well as other fees and expenses that it pays out of its own assets. Each Vanguard UCITS
prospectus contains information about a specific fund’s fees.

Additionally, Intermediaries (or other third-party adviser that have access to the Portfolios)
may charge fees, which should be disclosed in their clients’ account documentation. As of the
date of this brochure, the Service has $0 in regulatory assets under management to report.

PERFORMANCE-BASED FEES AND SIDE-BY-SIDE MANAGEMENT

VGA does not receive performance-based fees for advisory services provided through the
Service.

TYPES OF CLIENTS

The Service is intended for financial intermediaries with non-resident alien clients and is not
suitable for individual investors, nor available for use with respect to U.S. persons. The Service
can be made available to intermediaries in two different ways, directly to intermediaries, or
through third party platforms. When the Service is delivered via third party platforms, it may be

offered via a wrap fee or non-wrap-fee managed account program. VGA does not serve as the
sponsor of wrap fee programs, nor does VGA receive compensation from the wrap-fee sponsor.

METHODS OF ANALYSIS, INVESTMENT STRATEGIES, AND RISK OF LOSS

In constructing Portfolios for the Service, VGA relies on information from a wide variety of
sources, both public and private, regarding short-term and long-term economic and financial
market characteristics and trends. The Portfolios offered through the Service may be tailored
at the direction of Intermediaries and are designed to provide a high level of diversification
through broad exposure to domestic and international markets.

VGA may modify Portfolios to reflect, among other things, the need for reduced market risks
or lower portfolio volatility. As such, the asset allocation targets described below may be
changed by VGA to reflect our updated analysis and conviction.

The Portfolios

Time-Varying Portfolios
Vanguard’s Time Varying Portfolios seek to generate higher risk-adjusted returns - than the
broad market and maximize wealth accumulation using dynamic (time-varying) asset
allocation optimized utilizing Vanguard’s Asset Allocation Model (VAAM). These portfolios are
recalibrated annually or after significant market events, such as changes in inflation
expectations, interest rates, or equity premiums, to maximize risk-adjusted returns within the
strategic risk target. Rebalancing can occur as frequently as monthly to align with Vanguard´s
Capital Markets Model (VCMM) output.

Global Time-Varying Model Portfolios

Vanguard’s Global Time-Varying Model Portfolios incorporate a diversified mix of global bond
and equity funds to provide optimized risk-adjusted returns using a dynamic asset allocation
strategy. These Portfolios aim to meet a minimum long-term risk target through time-varying
analysis and index funds. The strategy offers different portfolios with varying levels of risk
and are available in multiple mixes of stocks and bonds, with initial targets as follows:

•      Global Bonds: 0% Equity / 100% Bonds
•      Ultra Conservative: 10% Equity / 90% Bonds
•      Conservative: 20% Equity / 80% Bonds
•      Moderately Conservative: 30% Equity / 70% Bonds
•      Moderate: 50% Equity / 50% Bonds
•      Moderately Aggressive: 70% Equity / 30% Bonds
•      Aggressive: 80% Equity / 20% Bonds

•      Global Equities: 100% equities / 0% Bonds

The Global Time-Varying Model Portfolios are adjusted quarterly to maintain the target
weights at both the overall asset class level and within specific sub-asset classes.

US-Tilt Time-Varying Model Portfolios

The US-Tilt Time-Varying Model Portfolios aim to optimize risk-adjusted returns using time-
varying asset allocation (TVAA) to meet a minimum long term risk target. This strategy focuses
on a diversified portfolio of US equities and USD-denominated bonds, including US Treasury
and corporate bonds. The strategy offers different portfolios with varying levels of risk with
initial targets as follow:

•      Fixed Income: 0% Equity / 100% Bonds
•      Conservative: 10% Equity / 90% Bonds
•      Moderate: 25% Equity / 75% Bonds
•      Moderately Aggressive: 55% Equity / 45% Bonds
•      Aggressive: 70% Equity / 30% Bonds

The US-Tilt Time-Varying Model Portfolios are adjusted or “rebalanced” quarterly to target
weights at asset class level and at the sub-asset class level.

Portfolio Structure- Vanguard Asset Allocation Model®:

The Portfolios above utilize the Vanguard Asset Allocation Model (VAAM) to assist in the
creation of the Portfolio allocations. VAAM is a proprietary portfolio optimization tool created
to help make effective asset allocation decisions.

One of the key inputs that VAAM utilizes is the Vanguard Capital Market Model’s (VCMM)
forecast distributions, which are based on the empirical foundation that the returns of various
asset classes reflect the compensation investors receive for bearing different types of
systemic risk (or beta risk). To reasonably forecast the potential distribution of future asset
returns, VCMM is designed to identify the primary macroeconomic and financial risk factors
and how they influence asset returns over time. Using a long span of monthly financial and
economic data from as early as 1960, the VCMM estimates a dynamic statistical relationship
between risk factors and asset returns. Based on these calculations, the model uses
regression-based Monte Carlo simulation methods to project these relationships in the future.

Projections generated by the VCMM are based both on estimated historical relationships and
on assumptions about the risk characteristics of various asset classes. As a result, the accuracy
of VCMM forecasts depends on the relevance of the historical sample in simulating future

events. The VCMM’s simulated return distributions are used as inputs to construct efficient
portfolio combinations in VAAM.

IMPORTANT: The projections or other information generated by the Vanguard Capital
Markets Model regarding the likelihood of various investment outcomes are hypothetical in
nature, do not reflect actual investment results, and are not guarantees of future results.
Results may vary with each use and over time.

Portfolio-level analysis
Portfolios constructed using VAAM are intended to maximize the expected utility of wealth
at maturity coming from different risk sources (systematic, alpha and factor risk), allowing the
model to simultaneously consider various portfolio construction decisions. One of the key
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