Fund Description

The fund was incepted in October 1991 and is managed by the Vanguard Group. The fund's main objective is to seek a high level of current income. The fund invests at least 85% of its total assets in intermediate-term bonds whose interest and principal payments are backed by the full faith and credit of the U.S. government. At least 65% of the Fund's total assets will always be invested in U.S. Treasury securities. The fund is expected to maintain a dollar-weighted average maturity of between five and ten years. Dividends are declared daily and distributed monthly. Capital gains, if any, are distributed annually in December.