TimesSquare Capital Management, LLC (TimesSquare Capital), will be added as an advisor, a new relationship for Vanguard. Schroder Investment Management North America Inc. (Schroders) and Wellington Management Company LLP (Wellington Management) will continue to serve as advisors to the fund.

Founded in 2000, TimesSquare Capital is a New York-based small- and mid-capitalization growth equity specialist. Seeking superior risk-adjusted returns, TimesSquare Capital’s international small-cap investment team uses strong fundamental growth equity research skills to help build a diversified stock portfolio.

The team is led by Magnus Larsson, senior vice president of the firm, who has more than 20 years of experience investing in non-U.S. small-cap stocks.

Approximately 70% of the International Explorer Fund’s assets are managed by Schroders and approximately 30% of its assets are managed by Wellington Management. TimesSquare Capital is expected to become the third advisor by the end of August 2017. The firm will start with a modest allocation of less than 5% of the fund’s overall assets, with its allocation expected to grow over time. The fund’s board of trustees determines the proportion of the fund’s assets to be managed by each advisor and may change these proportions at any time.

The expense ratio of the International Explorer Fund is not expected to change, and the fund’s investment objective and principal investment strategies will remain the same. Its characteristics—including valuations, market capitalization profile, and sector allocations—will be similar to what they are now.

Vanguard’s enduring approach to active management

Vanguard’s active management history can be traced back to 1929 with the founding of Vanguard Wellington™ Fund and is rooted in a distinctive and time-tested philosophy. Vanguard believes actively managed funds can play an important role in a portfolio if they’re low-cost, managed by top talent, and invested over the long term.

Vanguard focuses on 4 key drivers of investment success when evaluating new and existing managers: the firm, the people, the philosophy, and the investment process. Vanguard’s use of a multimanager structure enables each manager to focus on longer-term opportunities where they have the most conviction.

About TimesSquare Capital

The firm manages approximately $17.2 billion across domestic and international equity mandates as of June 30, 2017. After separating from its original parent company in 2004, TimesSquare Capital became a strategic partner of Affiliated Managers Group, Inc.

Notes:

Vanguard International Explorer Fund’s assets are as of June 30, 2017.

All investing is subject to risk, including the possible loss of the money you invest.

Investments in stocks issued by non-U.S. companies are subject to risks including country/regional risk and currency risk.

Prices of small- and mid-cap stocks often fluctuate more than those of large-company stocks.