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VANGUARD/WELLESLEY INCOME FUND, INC.
PROSPECTUS SUPPLEMENT
DECEMBER 17, 1996
Vanguard/Wellesley Income Fund is compared to an unmanaged composite index of
65% bonds and 35% stocks. The Lehman Brothers Long-Term Corporate AA or Better
Index represents the bond portion. The S&P/BARRA Value Index makes up 75% of the
composite index's stock portion and the S&P Utilities Index makes up the
remaining 25%.
Recently, Standard & Poor's changed the composition of the S&P Utilities
Index by moving telephone companies from the S&P Utilities Index to the S&P
Industrials Index. S&P will continue to maintain telephone companies as a
separate industry index, the S&P Telephone Index, however.
The removal of telephone companies from the S&P Utilities Index
fundamentally alters Wellesley's benchmark. As a result, we are modifying the
equity component of the benchmark to retain its original characteristics.
Effective immediately, the equity component of Vanguard/Wellesley Income Fund's
benchmark will consist of 75% S&P/BARRA Value Index,12.5% S&P Utilities Index,
and 12.5% S&P Telephone Index.
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