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VANGUARD/TRUSTEES' EQUITY FUND
PROSPECTUS SUPPLEMENT
NOVEMBER 9, 1994
On October 11, 1994, Batterymarch Financial Management ("Batterymarch"),
investment adviser to the International Portfolio of Vanguard/Trustees' Equity
Fund (the "Fund"), and Dean Le Baron, the holder of all of the shares of
beneficial interest in Batterymarch, entered into an agreement with Legg Mason,
Inc. ("Legg Mason") and Batterymarch Financial Management, Inc. ("BFM, Inc."),
a wholly owned subsidiary of Legg Mason, under which, subject to certain
conditions, BFM, Inc. would acquire substantially all of the operating assets
and business of Batterymarch. Batterymarch has served as the adviser to the
International Portfolio (the "Portfolio") since the Portfolio's inception in
1983. In the event the acquisition is consummated, the Fund's Board of
Trustees, under an exemptive order granted by the Securities and Exchange
Commission, may, without the approval of shareholders, approve the terms of a
new advisory agreement with BFM, Inc. Any such new advisory agreement will only
go into effect upon not less than 30 days' prior written notice to
shareholders, which shall include detailed information concerning the new
advisory agreement. The Fund expects that the terms of the new advisory
agreement, including the fees paid for advisory services, will be substantially
identical to those of the existing advisory agreement. The Fund further expects
that the Portfolio will continue to be managed effectively and without
disruption as a result of the acquisition by Legg Mason. The Fund does not at
this time anticipate making any changes in the management of the Portfolio.
Ancillary to the acquisition by Legg Mason, Inc., Deborah H. Miller, CFA, who
has actively participated as a member of Batterymarch's international team for
over seven years, will assume the duties of Jarrod Wilcox as co-manager of the
Portfolio.
PS25
