Vanguard® Target Retirement 2040 Fund

1 Release Date: 09-30-2018. vanguard Target Retirement 2040 fund .. Morningstar Category Target -Date 2040. Investment Objective & Strategy Allocation of Assets The investment seeks to provide capital appreciation and 100 % Allocation current income consistent with its current asset allocation. 80 Bonds Stocks The fund invests in other vanguard mutual funds 60. Cash according to an asset allocation strategy designed for 40 Other investors planning to retire and leave the workforce in or 20. within a few years of 2040 (the Target year). The fund 's asset 0. allocation will become more conservative over time, 50 40 30 20 10 0 -10 -20 -30. meaning that the percentage of assets allocated to stocks Years Until Retirement will decrease while the percentage of assets allocated to bonds and other fixed income investments will increase.

2 Portfolio Analysis Composition as of 09-30-18 % Assets Morningstar Style Box as of 09-30-18(EQ) ; 06-30-18(F-I). Operations and Management Stocks Large Mid High Stocks Initial Inception Date 06-07-06. Bonds Med Management Company vanguard Group Inc Cash Issuer vanguard Other Small Low Volatility Analysis Value Blend Growth Ltd Mod Ext Investment Low Moderate High Top 20 Holdings as of 09-30-18 % Assets Morningstar Equity Sectors as of 09-30-18 % fund Category vanguard Total Stock Mkt Idx Inv h Cyclical .. vanguard Total Intl Stock Index Inv r Basic Materials In the past, this investment has shown a relatively moderate vanguard Total Bond Market II Idx Inv t Consumer Cyclical range of price fluctuations relative to other investments.

3 This vanguard Total Intl Bd Idx Investor y Financial Services investment may experience larger or smaller price declines or Cmt Market Liquidity Rate u Real Estate price increases depending on market conditions. Some of this risk may be offset by owning other investments with different .. j Sensitive .. portfolio makeups or investment strategies. Total Number of Holdings 5. i Communication Services Annual Turnover Ratio % o Energy p Industrials Notes a Technology The year in the Target date fund name refers to the k Defensive .. approximate year when an investor in the fund would retire s Consumer Defensive and leave the work force. The fund will gradually shift its d Healthcare emphasis from more aggressive investments to more f Utilities conservative investments based on the Target date.

4 The equity allocation of the vanguard Target Retirement Funds is % fund % Category Morningstar F-I Sectors as of 09-30-18. relatively more conservative closer to and at Retirement . Government vanguard 's glide path converts to the vanguard Target Corporate Retirement income fund , with a static asset allocation, Securitized following the seventh year of reaching the named Target date. Municipal The return of principal for the underlying funds in a Target date Cash/Cash Equivalents fund is not guaranteed at any time, including on or after the Other Target date. Although the Target date funds are managed for investors on a projected Retirement date time frame, the fund 's allocation strategy does not guarantee that investors' Principal Risks Retirement goals will be met and a Target date fund should Hedging Strategies, Credit and Counterparty, Prepayment (Call), Currency, Loss of Money, Not FDIC Insured, Country or Region, not be invested in based solely on age or Retirement date.

5 income , Interest Rate, Market/Market Volatility, Equity Securities, Fixed- income Securities, Management, Target Date Unit price, principal value and return will vary and an investor may have a gain or loss when units are sold. Investors who redeem, transfer or exchange any amount out of the fund must wait thirty (30) calendar days before transferring or exchanging any amount back into the fund . AFN43617 2018 Morningstar, Inc., Morningstar Investment Profiles 312-696-6000. All rights reserved. The information contained herein: (1) is proprietary to Morningstar and/or . 09-18. its content providers; (2) may not be copied or distributed and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of information.

6 Past performance is no guarantee of future performance. Visit our investment website at . Disclosure Investment options are subaccounts in an insurance company those whose weighted-average credit quality is determined addition, United of Omaha Life Insurance Company, separate account maintained by United of Omaha Life to be less than "BBB-"; medium are those less than "AA-", but Companion Life Insurance Company, their representatives and Insurance Company for contracts issued in all states except greater or equal to "BBB-"; and high are those with a affiliates are not undertaking to provide impartial investment New York, and by Companion Life Insurance Company for weighted-average credit quality of "AA-" or higher.

7 When advice or to give advice in a fiduciary capacity. contracts issued in New York, that invests in the underlying classifying a bond portfolio, Morningstar first maps the mutual fund /collective trust investments or is managed by NRSRO credit ratings of the underlying holdings to their Group variable annuities are long-term investment vehicles the specified investment manager. All funds may not be respective default rates (as determined by Morningstar's designed to accumulate money on a tax-deferred basis for available as an investment option in a plan. analysis of actual historical default rates). Morningstar then Retirement purposes. Distributions may be subject to ordinary averages these default rates to determine the average income tax and, if taken prior to age 59 , a 10 percent Composition Graph default rate for the entire bond fund .

8 Finally, Morningstar federal tax penalty may apply. Investing in a group variable The Long/Short/Net bar chart replaces the Composition pie maps this average default rate to its corresponding credit annuity involves risk, including possible loss of principal. chart when a fund invests in shorts and derivatives. The rating along a convex curve. overall net percentage value of each investment class is Group annuity contract (Form 728 LGAM-U-Rev. and Form displayed. A short is any security in which a negative position For interest-rate sensitivity, Morningstar obtains from fund 728-LGAI-U-Rev.) is issued by United of Omaha Life Insurance is taken where the portfolio manager looks to profit from companies the average effective duration.

9 Generally, Company, Omaha, NE 68175, which accepts full responsibility falling prices. A derivative is any future, forward, option or Morningstar classifies a fixed- income fund 's interest-rate for all its contractual obligations under the contract. swap contract that provides exposure to assets like stocks, sensitivity based on the effective duration of the Morningstar Payments and values provided by this contract that are based bonds, or commodities. Derivatives are also used to manage Core Bond Index (MCBI), which is currently three years. The on investment results of the separate account are variable risk or to act on a view about the economy. classification of Limited will be assigned to those funds and specific dollar amounts are not guaranteed .

10 Investment whose average effective duration is between 25% to 75% of options are offered through a group annuity separate account Morningstar Style Box MCBI's average effective duration; funds whose average rider (Form 625-GAQR-09, Form 625-GAQR-09(VA) or Form Morningstar Style Box The Morningstar Style Box reveals effective duration is between 75% to 125% of the MCBI will 625-GAQR-11) underwritten by United of Omaha Life an investment choice's investment strategy as of the date be classified as Moderate; and those that are at 125% or Insurance Company, Omaha, NE 68175, which accepts full noted on this report. greater of the average effective duration of the MCBI will be responsibility for all of United's contractual obligations under classified as Extensive.