VANGUARD HORIZON FUNDS
GLOBAL ASSET ALLOCATION FUND
GLOBAL EQUITY FUND
VANGUARD INTERNATIONAL STOCK INDEX FUNDS
VANGUARD INTERNATIONAL VALUE FUND
SUPPLEMENT TO THE STATEMENT OF ADDITIONAL INFORMATION
The transition to a common European currency--the "euro"--beginning on January
1, 1999, is one form of country risk faced by funds that invest in European
companies, including the Funds listed above. Although the euro conversion should
have no immediate impact on the Funds' share prices, it may cause uncertainty in
European financial markets. If there are difficulties with the euro conversion,
the Funds' European holdings could be adversely affected. See the Funds'
prospectus for a more detailed discussion of country risk.
12/31/1998
