UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT
OF
REGISTERED MANAGEMENT INVESTMENT COMPANIES
| | |
| Investment Company Act file number: | 811-02554 |
Name of Registrant: | Vanguard Money Market Reserves |
Address of Registrant: | P.O. Box 2600 |
| | Valley Forge, PA 19482 |
Name and address of agent for service: | Anne E. Robinson, Esquire |
| | P.O. Box 876 |
| | Valley Forge, PA 19482 |
Registrant’s telephone number, including area code: (610) 669-1000 |
Date of fiscal year end: August 31 |
Date of reporting period: September 1, 2017 – February 28, 2018 |
Item 1: Reports to Shareholders |
Semiannual Report | February 28, 2018
Vanguard Money Market Funds
Vanguard Prime Money Market Fund
Vanguard Federal Money Market Fund
Vanguard Treasury Money Market Fund
Vanguard’s Principles for Investing Success
We want to give you the best chance of investment success. These principles, grounded in Vanguard’s research and experience, can put you on the right path.
Goals. Create clear, appropriate investment goals.
Balance. Develop a suitable asset allocation using broadly diversified funds. Cost. Minimize cost.
Discipline. Maintain perspective and long-term discipline.
A single theme unites these principles: Focus on the things you can control.
We believe there is no wiser course for any investor.
| |
| Contents | |
| Your Fund’s Performance at a Glance. | 1 |
| CEO’s Perspective. | 3 |
| Advisor’s Report. | 6 |
| Results of Proxy Voting. | 9 |
| Prime Money Market Fund. | 12 |
| Federal Money Market Fund. | 30 |
| Treasury Money Market Fund. | 44 |
| About Your Fund’s Expenses. | 53 |
| Glossary. | 55 |
Please note: The opinions expressed in this report are just that—informed opinions. They should not be considered promises
or advice. Also, please keep in mind that the information and opinions cover the period through the date on the front of this
report. Of course, the risks of investing in your fund are spelled out in the prospectus.
See the Glossary for definitions of investment terms used in this report.
About the cover: Nautical images have been part of Vanguard’s rich heritage since its start in 1975. For an
incoming ship, a lighthouse offers a beacon and safe path to shore. You can similarly depend on Vanguard to put
you first––and light the way––as you strive to meet your financial goals. Our client focus and low costs,
stemming from our unique ownership structure, assure that your interests are paramount.
Your Fund’s Performance at a Glance
• For the six months ended February 28, 2018, Investor Shares of Vanguard Prime Money Market Fund returned 0.63%, while Admiral Shares, with their lower expense ratio, returned 0.66%. Vanguard Federal Money Market Fund returned 0.56% and Vanguard Treasury Money Market Fund returned 0.55%. All three funds surpassed the average returns of their peers.
• The Federal Reserve raised the federal funds rate by a quarter of a percentage point during the period, pushing its target range to 1.25%–1.5%. It also began trimming its $4.5 trillion balance sheet.
• A surge in volatility allowed us to add to the funds’ floating-rate securities exposures at attractive prices. These moves helped the funds’ returns.
| | |
| Total Returns: Six Months Ended February 28, 2018 | | |
| | 7-Day SEC | Total |
| | Yield | Returns |
| Vanguard Prime Money Market Fund | | |
| Investor Shares | 1.52% | 0.63% |
| Admiral™ Shares | 1.58 | 0.66 |
| Money Market Funds Average | | 0.41 |
| Money Market Funds Average: Derived from data provided by Lipper, a Thomson Reuters Company. |
| |
| Vanguard Federal Money Market Fund | 1.36% | 0.56% |
| Government Money Market Funds Average | | 0.29 |
| Government Money Market Funds Average: Derived from data provided by Lipper, a Thomson Reuters Company. |
| |
| Vanguard Treasury Money Market Fund | 1.41% | 0.55% |
| iMoneyNet Money Fund Report’s 100% Treasury Funds Average | | 0.31 |
iMoneyNet Money Fund Report’s 100% Treasury Funds Average: Derived from data provided by iMoneyNet, Inc.
The 7-day SEC yield of a money market fund more closely reflects the current earnings of the fund than its total return.
Admiral Shares carry lower expenses and are available to investors who meet certain account-balance requirements.
| | |
| Expense Ratios | | |
| Your Fund Compared With Its Peer Group | | |
| | | Peer Group |
| | Fund | Average |
| Prime Money Market Fund | | |
| Investor Shares | 0.16% | 0.50% |
| Admiral Shares | 0.10 | 0.50 |
| Federal Money Market Fund | 0.11 | 0.48 |
| Treasury Money Market Fund | 0.09 | 0.40 |
The fund expense ratios shown are from the prospectus dated December 22, 2017, and represent estimated costs for the current fiscal
year. For the six months ended February 28, 2018, the funds’ annualized expense ratios were: for the Prime Money Market Fund, 0.16% for
Investor Shares and 0.10% for Admiral Shares; for the Federal Money Market Fund, 0.11%; and for the Treasury Money Market Fund,
0.09%.
Peer groups: For the Prime Money Market Fund Investor Shares and Admiral Shares, Money Market Funds; for the Federal Money Market
Fund, Government Money Market Funds; and for the Treasury Money Market Fund, iMoneyNet Money Fund Report’s 100% Treasury
Funds.
2
CEO’s Perspective
Tim Buckley
President and Chief Executive Officer
Dear Shareholder,
As I begin my tenure as Vanguard’s fourth chief executive, I’ve been reflecting on both the past and the future of the company where I have spent my entire professional career.
I feel extremely fortunate to have the chance to lead a company filled with people who come to work every day passionate about Vanguard’s core purpose: to take a stand for all investors, to treat them fairly, and to give them the best chance for investment success.
Making a real difference
When I joined Vanguard in 1991, I found a mission-driven team focused on improving lives—helping people retire more comfortably, put their children through college, and achieve financial security. I found a company with purpose in an industry ripe for improvement.
It was clear, even early in my career, that the cards were stacked against most investors. Hidden fees, performance-chasing, and poor advice were relentlessly eroding investors’ dreams.
We knew Vanguard could be different and, as a result, could make a real difference. Over the past 25 years, for example, Vanguard has lowered our funds’ asset-weighted average expense ratio
3
from 0.31% to 0.12%. And over the past decade, 94% of our funds have beaten the average annual return of their peers.1
Focused on your success
Vanguard is built for Vanguard investors—as a client-owned company, we focus solely on you, our fund shareholders. Everything we do is designed to give our clients the best chance for investment success. In my role as CEO, I intend to keep this priority front and center. We’re proud of what we’ve achieved, but we’re even more excited about what’s to come.
As I write this, we’ve experienced a period of pronounced market volatility. Strong economic growth and budding signs of inflation have raised concerns about a more aggressive Federal Reserve. Although volatility can test investors’ nerves, we sometimes think of this as “Vanguard weather”—a time when having a disciplined, low-cost, and long-term approach to investment management serves investors well.
| | | |
| Market Barometer | | | |
| | Total Returns |
| | Periods Ended February 28, 2018 |
| | Six | One | Five Years |
| | Months | Year | (Annualized) |
| Stocks | | | |
| Russell 1000 Index (Large-caps) | 10.62% | 16.70% | 14.56% |
| Russell 2000 Index (Small-caps) | 8.30 | 10.51 | 12.19 |
| Russell 3000 Index (Broad U.S. market) | 10.45 | 16.22 | 14.37 |
| FTSE All-World ex US Index (International) | 7.84 | 21.50 | 6.69 |
| |
| Bonds | | | |
| Bloomberg Barclays U.S. Aggregate Bond Index | | | |
| (Broad taxable market) | -2.18% | 0.51% | 1.71% |
| Bloomberg Barclays Municipal Bond Index | | | |
| (Broad tax-exempt market) | -1.24 | 2.50 | 2.57 |
| Citigroup Three-Month U.S. Treasury Bill Index | 0.59 | 0.98 | 0.27 |
| |
| CPI | | | |
| Consumer Price Index | 1.41% | 2.21% | 1.41% |
The performance data shown represent past performance, which is not a guarantee of future results.
1 For the ten-year period through December 31, 2017, 9 of 9 Vanguard money market funds, 56 of 60 bond funds, 21 of 22 balanced funds,
and 131 of 140 stock funds, or 217 of 231 Vanguard funds, outperformed their peer-group averages. Sources: Vanguard, based on data
from Lipper, a Thomson Reuters Company.
4
Steady, time-tested guidance
Our guidance for investors, as always, is to stay the course, tune out the hyperbolic headlines, and focus on your goals and what you can control, such as costs and how much you save. This time-tested advice has served our clients well over the decades.
Regardless of how the markets perform in the short term, I’m incredibly optimistic about the future for our investors. We have a dedicated team serving you, and we will never stop striving to make Vanguard the best place for you to invest through our high-quality funds and services, advice and guidance to help you meet your financial goals, and an experience that makes you feel good about entrusting us with your hard-earned savings.
Thank you for your continued loyalty.
Sincerely,
Mortimer J. Buckley
President and Chief Executive Officer
March 19, 2018
5
Advisor’s Report
For the six months ended February 28, 2018, Investor Shares of Vanguard Prime Money Market Fund returned 0.63%, while Admiral Shares, with their lower expense ratio, returned 0.66%. Vanguard Federal Money Market Fund returned 0.56% and Vanguard Treasury Money Market Fund 0.55%. Each fund exceeded the average returns of its peer group.
The investment environment
Congress passed a tax reform bill during the period, overcoming political debate that had waylaid much of the administration’s agenda throughout 2017. Investors pushed U.S. stocks to new highs as the economy remained on solid footing and companies recorded strong profits.
The Federal Reserve acknowledged the health of the economy in December, when it raised interest rates in its third hike of 2017. This brought the target range for the federal funds rate to 1.25%–1.5%. The Fed also began reducing its $4.5 trillion balance sheet, signaling its intent to normalize monetary policy.
Early in 2018, however, a surge in volatility caught investors off guard. Although there was no single catalyst, the volatility was likely the by-product of the resilient U.S. economy. Investors worried that record-low unemployment would lead to higher wages, triggering price inflation—which would in turn cause the Federal Reserve under new chair Jerome Powell to raise rates at a more aggressive pace than anticipated.
Although volatility eventually moderated in the United States and other markets, concern remained as the period closed.
There are ample reasons for such concerns. The U.S. economy made up for a sluggish start to the year with stronger growth later on. Gross domestic product grew at a rate of 2.3% in 2017, up from 1.5% in 2016. The unemployment rate continued to grind lower, hovering at 4.1% at the end of February compared with 4.2% at the beginning of September and 4.8% 12 months earlier. And although wage growth and inflation didn’t accelerate, there were signs the two measures were on the upswing.
Fed action contributed to a significant increase in short-term yields. The 2-year U.S. Treasury note rose 76 basis points over the period to 2.25% and the 5-year note rose 70 basis points to 2.64%. (A basis point is one one-hundredth of a percentage point.) Longer-term yields, which are more affected by market expectations for growth and inflation, moved less. The yield of the bellwether 10-year Treasury note was lower than where it started for a good part of the year, but it finished up 53 basis points at 2.86%.
Continued growth in business revenue and earnings, a reduction in corporate tax rates, and investor thirst for yield all supported demand for investment-grade corporate bonds. The picture was somewhat nuanced, however, with long-dated bonds and those rated BBB generally faring best.
6
Management of the funds
The six months were characterized by a surge in volatility throughout global markets. In the past, we’ve had success using the funds’ liquidity to our advantage in such environments—most recently in 2016, when compliance with new money market regulations triggered the movement of more than $1 trillion in assets industrywide to government money market funds from prime money market funds. We were similarly opportunistic during this period.
In the Prime Money Market Fund, we continued to add exposure to floating-rate securities as a way to position the fund for a rising interest rate environment. These debt securities reset, typically every month, at prevailing interest rates. They generated positive performance as the Fed raised rates three times in 2017, including a hike in the middle of the period. Market volatility also allowed us to purchase high-quality short-term corporate bonds and bank debt at attractive prices. In recent months we have added bonds from companies outside the United States, which enhances the fund’s diversification.
The floating-rate securities theme carried over to the Federal Money Market and Treasury Money Market Funds. In the Federal Money Market Fund, we increased our exposure to floating-rate agency securities. In the Treasury fund, we added to our floating-rate Treasury positions. (We also increased the Treasury exposure in the Federal Money Market Fund.) These moves allowed us to generate incremental yield while maintaining the funds’ short maturity profiles.
A look ahead
Despite long-term structural challenges posed by, among other things, the pace of productivity growth, demographic trends, and the impact of new technologies, the U.S. economy is on pace to break above its long-term potential growth rate to around 2.5% in 2018.
The unemployment rate has fallen to its lowest level since 2000 and is likely to move even lower. While it’s taken longer than expected, we have seen some indications lately that the tight labor market is putting some upward pressure on wages. That, along with stable and broader global growth, may well lead to a cyclical upswing in inflation, a scenario the financial markets are now beginning to price in. Recent weakness in the U.S. dollar will also likely bolster core inflation metrics, albeit moderately and over the course of the next year. Our long-term outlook, which calls for tepid inflation, remains unchanged.
Against such a backdrop, the Fed would be justified in raising the federal funds rate to at least 2% by the end of 2018. Barring unexpected economic data or unintended consequences from tapering in the bond market, the central bank will probably want to stick to its framework and timetable for reducing its balance sheet.
7
Volatility has recently picked up from the very low levels we’ve been experiencing for some time, bringing with it more opportunities to take advantage of price dislocations in the market. Rising inflation expectations seem to have been the trigger, but other potential developments could also fuel volatility: midterm elections, stalled or scuttled trade negotiations, and flare-ups in geopolitical tensions, to name a few. In addition, as 2018 unfolds, we anticipate a convergence of monetary policy, with central banks adopting a less accommodative stance—some raising rates, some planning to raise rates, some reducing quantitative easing.
While spreads have become very tight, U.S. corporate bonds could get some support from pension and life insurance companies drawn back into the market for longer-term securities now that yields for these securities have moved higher. U.S.
corporates should also remain attractive to international investors, given their yield advantage. And the new tax bill could prove supportive to prices if the repatriation of profits results in reduced bond issuance.
It’s worth restating that investors should look beyond short-term volatility and adhere to their long-term investment strategies. And keep in mind the silver lining in higher rates for long-term investors—namely, that coupon payments and proceeds from maturing bonds can be reinvested at higher rates.
David R. Glocke, Principal
John C. Lanius, Portfolio Manager
Nafis T. Smith, Portfolio Manager
Vanguard Fixed Income Group
March 9, 2018
8
Results of Proxy Voting
At a special meeting of shareholders on November 15, 2017, fund shareholders approved the following proposals:
Proposal 1—Elect trustees for the fund.*
The individuals listed in the table below were elected as trustees for the fund. All trustees with the exception of Ms. Mulligan, Ms. Raskin, and Mr. Buckley (each of whom already serves as a director of The Vanguard Group, Inc.) served as trustees to the funds prior to the shareholder meeting.
Vanguard Federal Money Market Fund and Vanguard Prime Money Market Fund
| | | |
| | | | Percentage |
| Trustee | For | Withheld | For |
| Mortimer J. Buckley | 118,781,453,243 | 5,071,631,564 | 95.9% |
| Emerson U. Fullwood | 118,444,250,215 | 5,408,834,592 | 95.6% |
| Amy Gutmann | 118,277,288,931 | 5,575,795,875 | 95.5% |
| JoAnn Heffernan Heisen | 118,525,270,236 | 5,327,814,570 | 95.7% |
| F. Joseph Loughrey | 118,643,625,864 | 5,209,458,942 | 95.8% |
| Mark Loughridge | 118,669,847,294 | 5,183,237,512 | 95.8% |
| Scott C. Malpass | 118,371,923,332 | 5,481,161,474 | 95.6% |
| F. William McNabb III | 118,599,687,891 | 5,253,396,915 | 95.8% |
| Deanna Mulligan | 118,583,905,224 | 5,269,179,582 | 95.7% |
| André F. Perold | 117,533,261,439 | 6,319,823,367 | 94.9% |
| Sarah Bloom Raskin | 118,312,165,055 | 5,540,919,751 | 95.5% |
| Peter F. Volanakis | 118,525,374,500 | 5,327,710,306 | 95.7% |
| * Results are for all funds within the same trust. |
| | | |
| Vanguard Treasury Money Market Fund | | | |
| | | | Percentage |
| Trustee | For | Withheld | For |
| Mortimer J. Buckley | 9,281,319,082 | 271,149,701 | 97.2% |
| Emerson U. Fullwood | 9,233,627,321 | 318,841,462 | 96.7% |
| Amy Gutmann | 9,180,258,885 | 372,209,899 | 96.1% |
| JoAnn Heffernan Heisen | 9,203,859,497 | 348,609,287 | 96.4% |
| F. Joseph Loughrey | 9,266,102,164 | 286,366,620 | 97.0% |
| Mark Loughridge | 9,194,614,438 | 357,854,345 | 96.3% |
| Scott C. Malpass | 9,160,256,693 | 392,212,090 | 95.9% |
| F. William McNabb III | 9,281,230,095 | 271,238,689 | 97.2% |
| Deanna Mulligan | 9,181,747,156 | 370,721,628 | 96.1% |
| André F. Perold | 9,107,402,388 | 445,066,396 | 95.3% |
| Sarah Bloom Raskin | 9,115,014,439 | 437,454,345 | 95.4% |
| Peter F. Volanakis | 9,200,130,944 | 352,337,840 | 96.3% |
| * Results are for all funds within the same trust. |
9
Proposal 2—Approve a manager-of-managers arrangement with third-party investment advisors.
This arrangement enables the fund to enter into and materially amend investment advisory arrangements with third-party investment advisors, subject to the approval of the fund’s board of trustees and certain conditions imposed by the Securities and Exchange Commission, while avoiding the costs and delays associated with obtaining future shareholder approval.
| | | | | |
| | | | | Broker | Percentage |
| Vanguard Fund | For | Abstain | Against | Non-Votes | For |
| Federal Money Market | | | | | |
| Fund | 42,528,217,434 | 2,817,574,671 | 2,501,499,754 | 1,244,196,023 | 86.6% |
| Prime Money Market | | | | | |
| Fund | 59,317,369,292 | 4,125,039,938 | 4,281,910,211 | 7,037,277,483 | 79.3% |
| Treasury Money Market | | | | | |
| Fund | 7,567,392,069 | 441,297,018 | 642,627,540 | 865,685,329 | 79.5% |
Proposal 3—Approve a manager-of-managers arrangement with wholly owned subsidiaries of Vanguard.
This arrangement enables Vanguard or the fund to enter into and materially amend investment advisory arrangements with wholly owned subsidiaries of Vanguard, subject to the approval of the fund’s board of trustees and any conditions imposed by the Securities and Exchange Commission (SEC), while avoiding the costs and delays associated with obtaining future shareholder approval. The ability of the fund to operate in this manner is contingent upon the SEC’s approval of a pending application for an order of exemption.
| | | | | |
| | | | | Broker | Percentage |
| Vanguard Fund | For | Abstain | Against | Non-Votes | For |
| Federal Money Market | | | | | |
| Fund | 43,173,490,603 | 2,649,171,040 | 2,024,630,216 | 1,244,196,023 | 87.9% |
| Prime Money Market | | | | | |
| Fund | 60,370,123,611 | 3,881,002,978 | 3,473,192,853 | 7,037,277,483 | 80.8% |
| Treasury Money Market | | | | | |
| Fund | 7,824,819,015 | 413,441,306 | 413,056,307 | 865,685,329 | 82.2% |
10
Fund shareholders did not approve the following proposal:
Proposal 7—Institute transparent procedures to avoid holding investments in companies that, in management’s judgment, substantially contribute to genocide or crimes against humanity, the most egregious violations of human rights. Such procedures may include time-limited engagement with problem companies if management believes that their behavior can be changed.
The trustees recommended a vote against the proposal for the following reasons: (1) Vanguard is fully compliant with all applicable U.S. laws and regulations that prohibit the investment in any company owned or controlled by the government of Sudan; (2) the addition of further investment constraints is not in fund shareholders’ best interests if those constraints are unrelated to a fund’s stated investment objective, policies, and strategies; and (3) divestment is an ineffective means to implement social change, as it often puts the shares into the hands of another owner with no direct impact to the company’s capitalization.
| | | | | |
| | | | | Broker | Percentage |
| Vanguard Fund | For | Abstain | Against | Non-Votes | For |
| Prime Money Market | | | | | |
| Fund | 16,260,938,113 | 4,759,401,331 | 46,703,979,997 | 7,037,277,483 | 21.8% |
11
Prime Money Market Fund
Fund Profile
As of February 28, 2018
| | |
| Financial Attributes | | |
| | Investor | Admiral |
| | Shares | Shares |
| Ticker Symbol | VMMXX | VMRXX |
| Expense Ratio1 | 0.16% | 0.10% |
| 7-Day SEC Yield | 1.52% | 1.58% |
| Average Weighted | | |
| Maturity | 46 days | 46 days |
| |
| Sector Diversification (% of portfolio) | |
| Certificates of Deposit | 20.7% |
| U.S. Commercial Paper | 4.7 |
| U.S. Government Obligations | 9.2 |
| U.S. Treasury Bills | 21.6 |
| Yankee/Foreign | 43.8 |
The agency and mortgage-backed securities sectors may include
issues from government-sponsored enterprises; such issues are
generally not backed by the full faith and credit of the U.S.
government.
1 The expense ratios shown are from the prospectus dated December 22, 2017, and represent estimated costs for the current fiscal year.
For the six months ended February 28, 2018, the annualized expense ratios were 0.16% for Investor Shares and 0.10% for Admiral Shares.
12
Prime Money Market Fund
Performance Summary
Investment returns will fluctuate. All of the returns in this report represent past performance, which is not a guarantee of future results that may be achieved by the fund. (Current performance may be lower or higher than the performance data cited. For performance data current to the most recent month-end, visit our website at vanguard.com/performance.) The returns shown do not reflect taxes that a shareholder would pay on fund distributions. The fund is only available to retail investors (natural persons). You could lose money by investing in the fund. Although the fund seeks to preserve the value of your investment at $1 per share, it cannot guarantee it will do so. The fund may impose a fee upon sale of your shares or may temporarily suspend your ability to sell shares if the fund’s liquidity falls below required minimums because of market conditions or other factors. An investment in the fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. The fund’s sponsor has no legal obligation to provide financial support to the fund, and you should not expect that the sponsor will provide financial support to the fund at any time. The fund’s 7-day SEC yield reflects its current earnings more closely than do the average annual returns.
| | |
| Fiscal-Year Total Returns (%): August 31, 2007, Through February 28, 2018 | |
| | | Money |
| | | Market |
| | | Funds |
| | Investor Shares | Average |
| Fiscal Year | Total Returns | Total Returns |
| 2008 | 3.60% | 3.02% |
| 2009 | 1.31 | 0.62 |
| 2010 | 0.08 | 0.02 |
| 2011 | 0.06 | 0.00 |
| 2012 | 0.04 | 0.00 |
| 2013 | 0.02 | 0.00 |
| 2014 | 0.02 | 0.00 |
| 2015 | 0.02 | 0.00 |
| 2016 | 0.32 | 0.04 |
| 2017 | 0.83 | 0.43 |
| 2018 | 0.63 | 0.41 |
| 7-day SEC yield (2/28/2018): 1.52% |
| Money Market Funds Average: Derived from data provided by Lipper, a Thomson Reuters Company. |
| Note: For 2018, performance data reflect the six months ended February 28, 2018. |
See Financial Highlights for dividend information.
13
Prime Money Market Fund
Average Annual Total Returns: Periods Ended December 31, 2017
This table presents returns through the latest calendar quarter—rather than through the end of the fiscal period.
Securities and Exchange Commission rules require that we provide this information.
| | | | |
| | Inception | One | Five | Ten |
| | Date | Year | Years | Years |
| Investor Shares | 6/4/1975 | 1.02% | 0.32% | 0.50% |
| Admiral Shares | 10/3/1989 | 1.08 | 0.37 | 0.59 |
14
Prime Money Market Fund
Financial Statements (unaudited)
Statement of Net Assets
As of February 28, 2018
The fund reports a complete list of its holdings in various monthly and quarterly regulatory filings. The fund publishes its holdings on a monthly basis at vanguard.com and files them with the Securities and Exchange Commission on Form N-MFP. The fund’s Form N-MFP filings may be viewed at sec.gov or via a link on the “Portfolio Holdings” page on vanguard.com. For the second and fourth fiscal quarters, the lists appear in the fund’s semiannual and annual reports to shareholders. For the first and third fiscal quarters, the fund files the lists with the SEC on Form N-Q. Shareholders can look up the fund’s Forms N-Q on the SEC’s website at sec.gov. Forms N-Q may also be reviewed and copied at the SEC’s Public Reference Room (see the back cover of this report for further information).
| | | | | | |
| | | | | | Face | Market |
| | | | | Maturity | Amount | Value • |
| | | | Yield1 | Date | ($000) | ($000) |
| U. S. Government and Agency Obligations (30.7%) | | | |
| 2 | Federal Home Loan Bank Discount Notes | 1.370% | 3/2/18 | 4,576 | 4,576 |
| 2 | Federal Home Loan Bank Discount Notes | 1.351% | 3/16/18 | 2,314,000 | 2,312,700 |
| 2 | Federal Home Loan Bank Discount Notes | 1.322% | 3/19/18 | 161,500 | 161,393 |
| 2 | Federal Home Loan Bank Discount | | | | | |
| | Notes | 1.327%–1.338% | 3/21/18 | 681,538 | 681,038 |
| 2 | Federal Home Loan Bank Discount Notes | 1.423% | 4/4/18 | 1,875,000 | 1,872,485 |
| 2 | Federal Home Loan Bank Discount | | | | | |
| | Notes | 1.438%–1.483% | 4/6/18 | 934,237 | 932,855 |
| 2 | Federal Home Loan Bank Discount Notes | 1.582% | 4/11/18 | 1,449,000 | 1,446,396 |
| | United States Treasury Bill | 1.503%–1.564% | 4/12/18 | 1,121,486 | 1,119,452 |
| | United States Treasury Bill | 1.435%–1.444% | 4/19/18 | 4,582,618 | 4,573,667 |
| | United States Treasury Bill | 1.356%–1.381% | 5/10/18 | 1,500,000 | 1,496,157 |
| | United States Treasury Bill | | 1.425% | 5/24/18 | 2,493,357 | 2,485,125 |
| | United States Treasury Bill | | 1.652% | 5/31/18 | 2,000,000 | 1,991,684 |
| | United States Treasury Bill | | 1.588% | 7/5/18 | 1,500,000 | 1,491,731 |
| | United States Treasury Bill | | 1.588% | 7/12/18 | 2,444,173 | 2,429,951 |
| | United States Treasury Bill | | 1.613% | 7/19/18 | 748,000 | 743,346 |
| | United States Treasury Bill | | 1.628% | 7/26/18 | 2,000,000 | 1,986,811 |
| | United States Treasury Bill | 1.638%–1.639% | 8/2/18 | 750,000 | 744,785 |
| | United States Treasury Bill | 1.796%–1.802% | 8/16/18 | 2,000,000 | 1,983,348 |
| † | United States Treasury | | | | | |
| | Floating Rate Note | | 1.822% | 10/31/18 | 1,500,000 | 1,500,010 |
| Total U.S. Government and Agency Obligations (Cost $29,957,510) | | 29,957,510 |
| Commercial Paper (39.2%) | | | | | |
| Bank Holding Company (0.7%) | | | | | |
| 3 | ABN Amro Funding USA LLC | | 1.728% | 3/26/18 | 29,250 | 29,215 |
| 3 | ABN Amro Funding USA LLC | 1.588%–1.589% | 4/5/18 | 173,250 | 172,984 |
| 3 | ABN Amro Funding USA LLC | | 1.842% | 4/30/18 | 10,000 | 9,969 |
| 3 | ABN Amro Funding USA LLC | | 1.973% | 6/12/18 | 227,250 | 225,976 |
| 3 | ABN Amro Funding USA LLC | | 2.044% | 6/21/18 | 198,000 | 196,750 |
| | | | | | | 634,894 |
15
| | | | | | |
| Prime Money Market Fund | | | | | |
| |
| |
| |
| | | | | | Face | Market |
| | | | | Maturity | Amount | Value • |
| | | | Yield1 | Date | ($000) | ($000) |
| Finance—Auto (0.7%) | | | | | |
| | Toyota Motor Credit Corp. | | 1.760% | 4/13/18 | 188,000 | 187,607 |
| | Toyota Motor Credit Corp. | | 2.084% | 6/25/18 | 99,000 | 98,340 |
| | Toyota Motor Credit Corp. | | 2.084% | 6/26/18 | 198,000 | 196,668 |
| | Toyota Motor Credit Corp. | | 2.084% | 6/27/18 | 198,000 | 196,656 |
| | | | | | | 679,271 |
| Finance—Other (0.3%) | | | | | |
| 4 | GE Capital Treasury Services US LLC | | 1.660% | 3/2/18 | 99,000 | 99,000 |
| | GE Capital Treasury Services US LLC | | 1.339% | 3/13/18 | 31,250 | 31,236 |
| | GE Capital Treasury Services US LLC | | 1.400% | 4/3/18 | 61,000 | 60,922 |
| | GE Capital Treasury Services US LLC | | 1.430% | 4/9/18 | 49,500 | 49,424 |
| | GE Capital Treasury Services US LLC | | 1.471% | 4/19/18 | 30,750 | 30,689 |
| | | | | | | 271,271 |
| Foreign Banks (31.7%) | | | | | |
| 3 | Australia & New Zealand Banking Group Ltd. | 1.395% | 3/1/18 | 99,000 | 99,000 |
| 3,4 | Australia & New Zealand Banking Group Ltd. | 1.716% | 3/21/18 | 156,000 | 156,000 |
| 3,4 | Australia & New Zealand Banking Group Ltd. | 1.706% | 3/22/18 | 121,500 | 121,498 |
| 3,4 | Australia & New Zealand Banking Group Ltd. | 1.746% | 6/21/18 | 156,000 | 156,000 |
| 3,4 | Australia & New Zealand Banking Group Ltd. | 1.771% | 7/26/18 | 63,000 | 62,998 |
| 3,4 | Australia & New Zealand Banking Group Ltd. | 1.740% | 8/2/18 | 107,000 | 107,000 |
| 3,4 | Australia & New Zealand Banking Group Ltd. | 1.740% | 8/7/18 | 240,000 | 240,000 |
| 3,4 | Australia & New Zealand Banking Group Ltd. | 1.739% | 8/8/18 | 89,000 | 88,998 |
| 3,4 | Australia & New Zealand Banking Group Ltd. | 1.739% | 8/9/18 | 118,000 | 118,000 |
| 3,4 | Australia & New Zealand Banking Group Ltd. | 1.757% | 8/14/18 | 161,500 | 161,493 |
| 3,4 | Australia & New Zealand Banking Group Ltd. | 1.750% | 9/6/18 | 220,000 | 219,994 |
| 3,4 | Australia & New Zealand Banking Group Ltd. | 1.796% | 9/24/18 | 135,500 | 135,496 |
| 3,4 | Australia & New Zealand Banking Group Ltd. | 1.848% | 11/29/18 | 524,500 | 524,500 |
| 3,4 | Australia & New Zealand Banking Group Ltd. | 1.790% | 12/6/18 | 150,000 | 149,972 |
| 3,4 | Australia & New Zealand Banking Group Ltd. | 1.791% | 12/10/18 | 120,000 | 120,000 |
| 3,4 | Australia & New Zealand Banking Group Ltd. | 1.838% | 12/14/18 | 65,000 | 65,000 |
| 3 | Bank Nederlandse Gemeenten NV | 1.475%–1.48% | 3/1/18 | 436,750 | 436,750 |
| 3 | Bank Nederlandse Gemeenten NV | | 1.470% | 3/6/18 | 1,268,000 | 1,267,741 |
| 3 | Bank Nederlandse Gemeenten NV | 1.470%–1.48% | 3/7/18 | 565,750 | 565,611 |
| 3 | Bank of Nova Scotia | | 1.707% | 3/15/18 | 145,000 | 144,904 |
| 3 | Bank of Nova Scotia | | 1.511% | 4/23/18 | 155,000 | 154,658 |
| 3,4 | Bank of Nova Scotia | | 1.699% | 5/3/18 | 289,000 | 289,000 |
| 3,4 | Bank of Nova Scotia | | 1.744% | 6/18/18 | 531,000 | 531,000 |
| 3,4 | Bank of Nova Scotia | | 1.826% | 9/21/18 | 655,000 | 655,000 |
| 3,4 | Canadian Imperial Bank of Commerce | | 1.771% | 4/26/18 | 440,000 | 440,000 |
| 3,4 | Commonwealth Bank of Australia | | 1.915% | 3/1/18 | 100,000 | 100,000 |
| 3,4 | Commonwealth Bank of Australia | | 1.919% | 3/2/18 | 350,000 | 350,000 |
| 3,4 | Commonwealth Bank of Australia | | 1.781% | 5/11/18 | 100,000 | 100,000 |
| 3,4 | Commonwealth Bank of Australia | | 1.794% | 5/17/18 | 148,000 | 148,000 |
| 3,4 | Commonwealth Bank of Australia | | 1.794% | 5/18/18 | 99,000 | 99,000 |
| 3,4 | Commonwealth Bank of Australia | | 1.739% | 6/4/18 | 99,000 | 98,999 |
| 3,4 | Commonwealth Bank of Australia | | 1.748% | 6/15/18 | 99,000 | 99,000 |
| 3,4 | Commonwealth Bank of Australia | | 1.753% | 7/13/18 | 300,000 | 300,000 |
| 3,4 | Commonwealth Bank of Australia | | 1.750% | 8/2/18 | 132,000 | 131,995 |
| 3,4 | Commonwealth Bank of Australia | | 1.749% | 8/3/18 | 110,000 | 110,000 |
| 3,4 | Commonwealth Bank of Australia | | 1.759% | 8/9/18 | 268,000 | 268,000 |
| 3,4 | Commonwealth Bank of Australia | | 1.838% | 8/30/18 | 190,000 | 190,000 |
| 3,4 | Commonwealth Bank of Australia | | 1.811% | 9/24/18 | 136,000 | 136,001 |
16
| | | | | |
| Prime Money Market Fund | | | | |
| |
| |
| |
| | | | | Face | Market |
| | | | Maturity | Amount | Value • |
| | | Yield1 | Date | ($000) | ($000) |
| 3,4 | Commonwealth Bank of Australia | 1.838% | 9/28/18 | 180,000 | 180,000 |
| 3,4 | Commonwealth Bank of Australia | 1.831% | 2/7/19 | 222,750 | 222,750 |
| 3,4 | Commonwealth Bank of Australia | 1.838% | 2/8/19 | 247,500 | 247,500 |
| | Credit Agricole Corporate & Investment | | | |
| | Bank (New York Branch) | 1.330% | 3/1/18 | 1,881,000 | 1,881,000 |
| | Credit Suisse AG (New York Branch) | 2.040% | 5/22/18 | 1,000,000 | 995,376 |
| | Credit Suisse AG (New York Branch) | 2.040% | 5/24/18 | 920,000 | 915,642 |
| 3 | Danske Corp. | 1.588% | 4/3/18 | 49,500 | 49,428 |
| 3 | Danske Corp. | 1.588% | 4/4/18 | 247,500 | 247,131 |
| 3 | Danske Corp. | 1.589% | 4/5/18 | 297,000 | 296,544 |
| 3 | Danske Corp. | 1.589% | 4/6/18 | 297,000 | 296,531 |
| 3 | Danske Corp. | 1.709% | 4/10/18 | 198,000 | 197,626 |
| 3 | Danske Corp. | 1.710% | 4/11/18 | 264,250 | 263,738 |
| 3 | Danske Corp. | 1.710% | 4/12/18 | 244,500 | 244,015 |
| 3,4 | DNB Bank ASA | 1.688% | 3/15/18 | 502,000 | 501,999 |
| 3,4 | HSBC Bank plc | 1.920% | 3/19/18 | 160,750 | 160,750 |
| 3,4 | HSBC Bank plc | 1.851% | 4/24/18 | 110,000 | 110,000 |
| 3,4 | HSBC Bank plc | 1.851% | 4/25/18 | 63,000 | 63,000 |
| 3,4 | HSBC Bank plc | 1.821% | 10/24/18 | 123,000 | 123,000 |
| 3,4 | HSBC Bank plc | 1.821% | 10/25/18 | 61,250 | 61,250 |
| 3,4 | HSBC Bank plc | 1.779% | 11/5/18 | 86,000 | 86,000 |
| 3,4 | HSBC Bank plc | 1.841% | 11/26/18 | 142,600 | 142,600 |
| 3,4 | HSBC Bank plc | 1.881% | 1/25/19 | 341,000 | 341,000 |
| 3,4 | HSBC Bank plc | 1.840% | 2/1/19 | 239,000 | 239,000 |
| 3,4 | HSBC Bank plc | 1.851% | 2/12/19 | 43,000 | 43,000 |
| 3,4 | HSBC Bank plc | 2.014% | 2/26/19 | 187,000 | 187,000 |
| | ING US Funding LLC | 2.041% | 6/1/18 | 49,880 | 49,621 |
| | Lloyds Bank plc | 2.085% | 6/25/18 | 504,000 | 500,638 |
| 3,4 | National Australia Bank Ltd. | 1.798% | 5/30/18 | 186,000 | 186,000 |
| 3,4 | National Australia Bank Ltd. | 1.798% | 5/31/18 | 160,000 | 160,000 |
| 3,4 | National Australia Bank Ltd. | 1.721% | 6/12/18 | 435,000 | 435,000 |
| 3,4 | National Australia Bank Ltd. | 1.798% | 7/30/18 | 600,000 | 600,000 |
| 3,4 | National Australia Bank Ltd. | 1.794% | 9/19/18 | 760,000 | 760,000 |
| | Natixis (New York Branch) | 1.370% | 3/1/18 | 603,000 | 603,000 |
| | Natixis (New York Branch) | 1.440% | 3/6/18 | 1,340,000 | 1,339,732 |
| 3 | Nederlandse Waterschapsbank NV | 1.475% | 3/2/18 | 312,000 | 311,987 |
| 3 | Nederlandse Waterschapsbank NV | 1.470% | 3/6/18 | 400,000 | 399,918 |
| 3 | Nordea Bank AB | 1.395% | 3/1/18 | 190,000 | 190,000 |
| 3 | Nordea Bank AB | 1.395% | 3/8/18 | 494,750 | 494,617 |
| 3 | Nordea Bank AB | 1.395% | 3/9/18 | 198,000 | 197,939 |
| 3 | Nordea Bank AB | 1.395% | 3/12/18 | 130,000 | 129,945 |
| 3 | Nordea Bank AB | 1.461% | 4/12/18 | 614,000 | 612,961 |
| 3 | Nordea Bank AB | 1.476% | 4/16/18 | 148,000 | 147,723 |
| 3 | Nordea Bank AB | 1.809% | 6/20/18 | 392,000 | 389,834 |
| 3 | Skandinaviska Enskilda Banken AB | 1.476% | 4/18/18 | 200,000 | 199,609 |
| | Swedbank AB | 1.400% | 3/1/18 | 126,750 | 126,750 |
| | Swedbank AB | 1.395% | 3/5/18 | 138,500 | 138,479 |
| | Swedbank AB | 1.390% | 3/12/18 | 200,000 | 199,916 |
| | Swedbank AB | 1.390% | 3/13/18 | 200,000 | 199,908 |
| | Swedbank AB | 1.390% | 3/14/18 | 200,000 | 199,900 |
| | Swedbank AB | 1.390%–1.395% | 3/15/18 | 205,750 | 205,640 |
| | Swedbank AB | 1.583% | 5/4/18 | 211,000 | 210,411 |
| | Swedbank AB | 2.194% | 8/20/18 | 99,500 | 98,468 |
17
| | | | | |
| Prime Money Market Fund | | | | |
| |
| |
| |
| | | | | Face | Market |
| | | | Maturity | Amount | Value • |
| | | Yield1 | Date | ($000) | ($000) |
| | Swedbank AB | 2.194% | 8/21/18 | 98,500 | 97,473 |
| | Swedbank AB | 2.214% | 8/22/18 | 230,000 | 227,565 |
| | Swedbank AB | 2.214% | 8/23/18 | 230,000 | 227,551 |
| | Swedbank AB | 2.225% | 8/27/18 | 143,000 | 141,436 |
| 3,4 | Toronto Dominion Bank | 1.739% | 6/5/18 | 250,000 | 250,000 |
| 3,4 | Toronto Dominion Bank | 1.778% | 9/14/18 | 260,000 | 260,000 |
| 3,4 | Toronto Dominion Bank | 1.788% | 11/14/18 | 792,000 | 792,000 |
| 3,4 | Toronto Dominion Bank | 1.809% | 12/5/18 | 208,000 | 208,000 |
| 3,4 | Toronto-Dominion Bank | 1.853% | 2/8/19 | 200,000 | 200,000 |
| 3,4 | Westpac Banking Corp. | 1.915% | 3/1/18 | 198,000 | 198,000 |
| 3,4 | Westpac Banking Corp. | 1.801% | 5/25/18 | 312,000 | 312,000 |
| 3,4 | Westpac Banking Corp. | 1.748% | 6/14/18 | 186,000 | 186,000 |
| 3,4 | Westpac Banking Corp. | 1.748% | 6/15/18 | 400,000 | 400,000 |
| 3,4 | Westpac Banking Corp. | 1.784% | 9/20/18 | 250,000 | 249,994 |
| 3,4 | Westpac Banking Corp. | 1.821% | 9/27/18 | 199,000 | 198,996 |
| 3,4 | Westpac Banking Corp. | 1.838% | 9/28/18 | 200,000 | 200,000 |
| 3,4 | Westpac Banking Corp. | 1.801% | 12/10/18 | 340,000 | 339,985 |
| 3,4 | Westpac Banking Corp. | 1.851% | 1/24/19 | 83,000 | 82,987 |
| | | | | | 30,897,471 |
| Foreign Governments (2.0%) | | | | |
| 3 | CDP Financial Inc. | 1.430% | 3/1/18 | 23,250 | 23,250 |
| 3 | CDP Financial Inc. | 1.460% | 3/26/18 | 60,000 | 59,940 |
| 3 | CDP Financial Inc. | 1.491% | 3/29/18 | 53,800 | 53,738 |
| 3 | CDP Financial Inc. | 1.471%–1.501% | 4/3/18 | 112,750 | 112,598 |
| 3 | CDP Financial Inc. | 1.470% | 4/4/18 | 51,000 | 50,930 |
| 3 | CDP Financial Inc. | 1.471% | 4/10/18 | 27,000 | 26,956 |
| 3 | CDP Financial Inc. | 1.512%–1.532% | 4/20/18 | 27,600 | 27,542 |
| 3 | CDP Financial Inc. | 1.542% | 4/30/18 | 39,250 | 39,150 |
| 3 | CDP Financial Inc. | 1.562% | 5/11/18 | 29,250 | 29,161 |
| 3 | CDP Financial Inc. | 1.653% | 5/31/18 | 45,100 | 44,913 |
| 3 | CDP Financial Inc. | 1.674%–1.714% | 6/6/18 | 80,500 | 80,133 |
| 3 | CDP Financial Inc. | 1.817% | 6/18/18 | 91,950 | 91,449 |
| 3 | CDP Financial Inc. | 1.878% | 7/13/18 | 41,900 | 41,610 |
| 3 | CDP Financial Inc. | 1.878% | 7/16/18 | 69,500 | 69,008 |
| 3 | CDP Financial Inc. | 2.180% | 8/1/18 | 22,250 | 22,046 |
| | Export Development Canada | 2.079% | 8/1/18 | 198,000 | 196,266 |
| | Export Development Canada | 2.079% | 8/2/18 | 198,000 | 196,255 |
| 5 | Ontario Teachers’ Finance Trust | 1.432%–1.451% | 4/10/18 | 66,000 | 65,895 |
| 5 | Ontario Teachers’ Finance Trust | 1.482% | 4/19/18 | 45,500 | 45,409 |
| 5 | Ontario Teachers’ Finance Trust | 1.493% | 4/30/18 | 6,250 | 6,235 |
| 5 | Ontario Teachers’ Finance Trust | 1.771% | 5/1/18 | 49,500 | 49,352 |
| 5 | Ontario Teachers’ Finance Trust | 1.504% | 5/9/18 | 14,000 | 13,960 |
| 5 | Ontario Teachers’ Finance Trust | 1.952% | 6/14/18 | 25,000 | 24,858 |
| 5 | Ontario Teachers’ Finance Trust | 1.717% | 7/5/18 | 54,500 | 54,176 |
| 5 | Ontario Teachers’ Finance Trust | 1.717%–1.899% | 7/6/18 | 73,000 | 72,544 |
| 5 | Ontario Teachers’ Finance Trust | 1.760% | 8/2/18 | 24,600 | 24,417 |
| 5 | Ontario Teachers’ Finance Trust | 2.005% | 8/24/18 | 50,000 | 49,516 |
| 5 | Ontario Teachers’ Finance Trust | 2.258% | 9/18/18 | 31,250 | 30,861 |
| 5 | Ontario Teachers’ Finance Trust | 2.309% | 11/16/18 | 61,169 | 60,166 |
| 4,5 | PSP Capital Inc. | 1.674% | 4/20/18 | 108,250 | 108,250 |
| 4,5 | PSP Capital Inc. | 1.801% | 10/26/18 | 122,500 | 122,500 |
| | | | | | 1,893,084 |
18
| | | | |
| Prime Money Market Fund | | | | |
| |
| |
| |
| | | | Face | Market |
| | | Maturity | Amount | Value • |
| | Yield1 | Date | ($000) | ($000) |
| Foreign Industrial (2.3%) | | | | |
| 3 Nestle Capital Corp. | 1.694% | 6/11/18 | 62,000 | 61,705 |
| 3 Nestle Capital Corp. | 1.694% | 6/12/18 | 62,000 | 61,702 |
| 3 Nestle Capital Corp. | 1.694% | 6/13/18 | 62,000 | 61,699 |
| 3 Nestle Capital Corp. | 1.694% | 6/14/18 | 198,000 | 197,030 |
| 3 Nestle Capital Corp. | 1.694% | 6/15/18 | 198,000 | 197,021 |
| 3 Nestle Capital Corp. | 1.980% | 8/9/18 | 198,000 | 196,264 |
| 3 Nestle Capital Corp. | 1.979% | 8/10/18 | 192,250 | 190,554 |
| 3 Nestle Capital Corp. | 1.980% | 8/13/18 | 297,000 | 294,332 |
| Nestle Finance International Ltd. | 1.430% | 3/1/18 | 101,000 | 101,000 |
| 3 Sanofi | 1.881% | 6/8/18 | 160,700 | 159,874 |
| 3 Siemens Capital Co. LLC | 1.445% | 3/6/18 | 94,000 | 93,981 |
| 3 Total Capital Canada Ltd. | 1.969% | 8/8/18 | 495,000 | 490,710 |
| Toyota Credit Canada Inc. | 1.609% | 3/27/18 | 30,750 | 30,714 |
| Toyota Credit Canada Inc. | 1.609% | 3/29/18 | 30,750 | 30,712 |
| Toyota Credit Canada Inc. | 1.760% | 4/13/18 | 50,000 | 49,896 |
| Toyota Credit Canada Inc. | 1.760% | 4/16/18 | 49,000 | 48,890 |
| | | | | 2,266,084 |
| Industrial (1.5%) | | | | |
| 4 General Electric Co. | 1.718% | 3/29/18 | 371,250 | 371,250 |
| 4 General Electric Co. | 1.718% | 3/29/18 | 273,500 | 273,500 |
| 4 General Electric Co. | 1.718% | 3/29/18 | 30,250 | 30,250 |
| 3 Henkel of America Inc. | 1.420% | 3/1/18 | 20,000 | 20,000 |
| 3 Novartis Finance Corp. | 1.500% | 3/6/18 | 22,000 | 21,995 |
| 3 The Coca-Cola Co. | 1.644% | 6/6/18 | 46,250 | 46,047 |
| 3 The Coca-Cola Co. | 1.644% | 6/7/18 | 154,250 | 153,565 |
| 3 The Coca-Cola Co. | 1.644% | 6/8/18 | 77,250 | 76,904 |
| 3 The Coca-Cola Co. | 1.644% | 6/11/18 | 179,500 | 178,671 |
| 3 The Coca-Cola Co. | 1.644% | 6/12/18 | 130,000 | 129,394 |
| 3 The Coca-Cola Co. | 1.694% | 6/13/18 | 100,000 | 99,515 |
| 3 The Coca-Cola Co. | 1.694% | 6/14/18 | 100,000 | 99,510 |
| | | | | 1,500,601 |
| Total Commercial Paper (Cost $38,142,676) | | | | 38,142,676 |
| Certificates of Deposit (30.3%) | | | | |
| Domestic Banks (9.6%) | | | | |
| Citibank NA | 1.720% | 4/3/18 | 250,000 | 250,000 |
| Citibank NA | 1.810% | 6/18/18 | 344,500 | 344,500 |
| Citibank NA | 1.830% | 6/21/18 | 500,000 | 500,000 |
| Citibank NA | 1.860% | 7/9/18 | 372,000 | 372,000 |
| Citibank NA | 1.860% | 7/10/18 | 366,000 | 366,000 |
| 4 Citibank NA | 1.575% | 8/2/18 | 544,500 | 544,500 |
| 4 HSBC Bank USA NA | 1.940% | 3/2/18 | 67,250 | 67,250 |
| 4 HSBC Bank USA NA | 1.940% | 3/6/18 | 101,250 | 101,250 |
| 4 HSBC Bank USA NA | 1.889% | 4/3/18 | 130,000 | 130,000 |
| 4 HSBC Bank USA NA | 1.874% | 4/19/18 | 63,000 | 63,000 |
| 4 HSBC Bank USA NA | 1.819% | 5/3/18 | 273,500 | 273,500 |
| 4 HSBC Bank USA NA | 1.769% | 6/5/18 | 150,000 | 150,000 |
| 4 HSBC Bank USA NA | 1.788% | 8/16/18 | 48,300 | 48,300 |
| 4 HSBC Bank USA NA | 1.796% | 8/21/18 | 99,000 | 99,000 |
| 4 HSBC Bank USA NA | 1.775% | 8/31/18 | 257,000 | 257,000 |
| 4 HSBC Bank USA NA | 1.770% | 10/2/18 | 153,000 | 153,000 |
| 4 HSBC Bank USA NA | 1.780% | 11/2/18 | 71,975 | 71,975 |
19
| | | | |
| Prime Money Market Fund | | | | |
| |
| |
| |
| | | | Face | Market |
| | | Maturity | Amount | Value • |
| | Yield1 | Date | ($000) | ($000) |
| 4 HSBC Bank USA NA | 1.841% | 11/23/18 | 82,250 | 82,250 |
| 4 HSBC Bank USA NA | 1.851% | 11/27/18 | 30,750 | 30,750 |
| 4 State Street Bank & Trust Co. | 1.731% | 4/26/18 | 1,225,000 | 1,225,000 |
| 4 State Street Bank & Trust Co. | 1.699% | 5/8/18 | 1,000,000 | 1,000,000 |
| 4 Wells Fargo Bank NA | 1.689% | 3/5/18 | 320,000 | 320,000 |
| 4 Wells Fargo Bank NA | 1.691% | 3/12/18 | 205,000 | 205,000 |
| 4 Wells Fargo Bank NA | 1.690% | 4/6/18 | 460,000 | 460,000 |
| 4 Wells Fargo Bank NA | 1.711% | 5/10/18 | 499,000 | 499,000 |
| 4 Wells Fargo Bank NA | 1.771% | 5/29/18 | 210,000 | 210,000 |
| 4 Wells Fargo Bank NA | 1.821% | 8/1/18 | 849,250 | 849,250 |
| 4 Wells Fargo Bank NA | 1.861% | 8/28/18 | 690,000 | 690,000 |
| | | | | 9,362,525 |
| Yankee Certificates of Deposit (20.7%) | | | | |
| 4 Bank of Montreal (Chicago Branch) | 1.710% | 3/2/18 | 168,000 | 168,000 |
| Bank of Montreal (Chicago Branch) | 1.700% | 3/15/18 | 214,000 | 214,000 |
| 4 Bank of Montreal (Chicago Branch) | 1.733% | 4/13/18 | 140,000 | 140,000 |
| 4 Bank of Montreal (Chicago Branch) | 1.725% | 6/1/18 | 243,000 | 243,000 |
| 4 Bank of Montreal (Chicago Branch) | 1.808% | 6/29/18 | 573,000 | 573,000 |
| 4 Bank of Montreal (Chicago Branch) | 1.784% | 7/19/18 | 322,000 | 322,000 |
| 4 Bank of Montreal (Chicago Branch) | 1.781% | 9/12/18 | 259,000 | 259,000 |
| 4 Bank of Montreal (Chicago Branch) | 1.836% | 9/21/18 | 399,000 | 399,000 |
| 4 Bank of Montreal (Chicago Branch) | 1.853% | 9/24/18 | 277,000 | 277,000 |
| 4 Bank of Nova Scotia (Houston Branch) | 1.733% | 4/13/18 | 464,000 | 464,000 |
| 4 Bank of Nova Scotia (Houston Branch) | 1.793% | 7/23/18 | 181,000 | 181,000 |
| 4 Canadian Imperial Bank of Commerce | | | | |
| (New York Branch) | 1.711% | 3/12/18 | 505,000 | 505,000 |
| 4 Canadian Imperial Bank of Commerce | | | | |
| (New York Branch) | 1.751% | 7/12/18 | 141,000 | 141,000 |
| 4 Canadian Imperial Bank of Commerce | | | | |
| (New York Branch) | 1.784% | 8/20/18 | 910,000 | 910,000 |
| 4 Canadian Imperial Bank of Commerce | | | | |
| (New York Branch) | 1.826% | 9/20/18 | 420,000 | 420,000 |
| 4 DNB Bank ASA (New York Branch) | 1.700% | 5/7/18 | 250,000 | 250,000 |
| 4 DNB Bank ASA (New York Branch) | 1.731% | 7/12/18 | 1,000,000 | 1,000,000 |
| 4 DNB Bank ASA (New York Branch) | 1.781% | 7/26/18 | 172,000 | 172,000 |
| 4 DNB Bank ASA (New York Branch) | 1.803% | 8/27/18 | 499,000 | 499,000 |
| KBC Bank NV (New York Branch) | 1.450% | 3/5/18 | 1,320,000 | 1,320,000 |
| KBC Bank NV (New York Branch) | 1.450% | 3/6/18 | 500,000 | 500,000 |
| Nordea Bank AB (New York Branch) | 1.455% | 4/12/18 | 100,000 | 99,999 |
| Nordea Bank AB (New York Branch) | 1.590% | 5/14/18 | 60,750 | 60,749 |
| Nordea Bank AB (New York Branch) | 1.590% | 5/17/18 | 60,000 | 59,999 |
| Nordea Bank AB (New York Branch) | 1.680% | 6/5/18 | 494,000 | 493,994 |
| Nordea Bank AB (New York Branch) | 2.170% | 8/27/18 | 223,000 | 222,995 |
| 4 Royal Bank of Canada (New York Branch) | 1.930% | 3/7/18 | 100,875 | 100,875 |
| 4 Royal Bank of Canada (New York Branch) | 1.718% | 3/16/18 | 979,000 | 979,000 |
| 4 Royal Bank of Canada (New York Branch) | 1.914% | 3/20/18 | 128,400 | 128,400 |
| 4 Royal Bank of Canada (New York Branch) | 1.723% | 4/13/18 | 700,000 | 700,000 |
| 4 Royal Bank of Canada (New York Branch) | 1.738% | 6/15/18 | 517,000 | 517,000 |
| 4 Royal Bank of Canada (New York Branch) | 1.753% | 7/13/18 | 214,000 | 214,000 |
| 4 Royal Bank of Canada (New York Branch) | 1.918% | 8/28/18 | 119,000 | 119,000 |
| 4 Royal Bank of Canada (New York Branch) | 1.771% | 9/12/18 | 260,000 | 260,000 |
| 4 Skandinaviska Enskilda Banken AB | | | | |
| (New York Branch) | 1.670% | 3/6/18 | 150,000 | 150,000 |
20
| | | | |
| Prime Money Market Fund | | | | |
| |
| |
| |
| | | | Face | Market |
| | | Maturity | Amount | Value • |
| | Yield1 | Date | ($000) | ($000) |
| 4 Skandinaviska Enskilda Banken AB | | | | |
| (New York Branch) | 1.686% | 3/22/18 | 198,000 | 198,000 |
| 4 Skandinaviska Enskilda Banken AB | | | | |
| (New York Branch) | 1.784% | 7/19/18 | 500,000 | 500,000 |
| 4 Svenska HandelsBanken AB (New York Branch) | 1.798% | 4/30/18 | 135,000 | 135,000 |
| 4 Svenska HandelsBanken AB (New York Branch) | 1.720% | 8/6/18 | 461,000 | 460,990 |
| 4 Svenska HandelsBanken AB (New York Branch) | 1.739% | 9/4/18 | 569,000 | 569,000 |
| 4 Svenska HandelsBanken AB (New York Branch) | 1.760% | 9/7/18 | 272,000 | 272,000 |
| 4 Svenska HandelsBanken AB (New York Branch) | 1.806% | 9/21/18 | 470,000 | 470,000 |
| 4 Svenska HandelsBanken AB (New York Branch) | 1.824% | 11/19/18 | 1,000,000 | 1,000,000 |
| Swedbank AB (New York Branch) | 1.390% | 3/2/18 | 457,000 | 457,000 |
| 4 Swedbank AB (New York Branch) | 1.731% | 7/11/18 | 346,000 | 345,994 |
| 4 Swedbank AB (New York Branch) | 1.790% | 11/6/18 | 750,000 | 750,000 |
| 4 Toronto Dominion Bank (New York Branch) | 1.767% | 6/15/18 | 490,000 | 490,000 |
| 4 Toronto Dominion Bank (New York Branch) | 1.781% | 8/10/18 | 694,000 | 694,000 |
| 4 Westpac Banking Corp. (New York Branch) | 1.838% | 2/13/19 | 234,000 | 234,000 |
| 4 Westpac Banking Corp. (New York Branch) | 1.838% | 2/14/19 | 500,000 | 500,000 |
| | | | | 20,138,995 |
| Total Certificates of Deposit (Cost $29,501,520) | | | | 29,501,520 |
| Other Notes (1.4%) | | | | |
| 4 Bank of America NA | 1.690% | 3/7/18 | 128,500 | 128,500 |
| 4 Bank of America NA | 1.689% | 4/3/18 | 153,250 | 153,250 |
| 4 Bank of America NA | 1.699% | 4/3/18 | 60,000 | 60,000 |
| 4 Bank of America NA | 1.699% | 4/5/18 | 60,000 | 60,000 |
| 4 Bank of America NA | 1.689% | 4/9/18 | 220,500 | 220,500 |
| 4 Bank of America NA | 1.691% | 4/11/18 | 153,750 | 153,750 |
| 4 Bank of America NA | 1.700% | 5/2/18 | 155,500 | 155,500 |
| 4 Bank of America NA | 1.708% | 5/14/18 | 149,750 | 149,750 |
| 4 Bank of America NA | 1.718% | 5/16/18 | 155,500 | 155,500 |
| 4 Bank of America NA | 1.826% | 9/10/18 | 157,000 | 157,000 |
| Total Other Notes (Cost $1,393,750) | | | | 1,393,750 |
| Taxable Municipal Bonds (0.0%) | | | | |
| 6 Greene County GA Development Authority | | | | |
| Revenue VRDO (Cost $6,250) | 1.600% | 3/7/18 | 6,250 | 6,250 |
| Total Investments (101.6%) (Cost $99,001,706) | | | | 99,001,706 |
21
| |
| Prime Money Market Fund | |
| |
| |
| |
| |
| | Amount |
| | ($000) |
| Other Assets and Liabilities (-1.6%) | |
| Other Assets | |
| Investment in Vanguard | 5,001 |
| Receivables for Investment Securities Sold | 249,860 |
| Receivables for Accrued Income | 41,375 |
| Receivables for Capital Shares Issued | 223,547 |
| Other Assets | 91,721 |
| Total Other Assets | 611,504 |
| Liabilities | |
| Payables for Investment Securities Purchased | (1,991,684) |
| Payables for Capital Shares Redeemed | (193,306) |
| Payables for Distributions | (6,487) |
| Payables to Vanguard | (6,056) |
| Total Liabilities | (2,197,533) |
| Net Assets (100%) | 97,415,677 |
| |
| |
| At February 28, 2018, net assets consisted of: | |
| | Amount |
| | ($000) |
| Paid-in Capital | 97,410,911 |
| Undistributed Net Investment Income | 4 |
| Accumulated Net Realized Gains | 4,762 |
| Net Assets | 97,415,677 |
| |
| |
| Investor Shares—Net Assets | |
| Applicable to 84,305,243,959 outstanding $.001 par value shares of | |
| beneficial interest (unlimited authorization) | 84,318,526 |
| Net Asset Value Per Share—Investor Shares | $1.00 |
| |
| |
| Admiral Shares—Net Assets | |
| Applicable to 13,095,103,407 outstanding $.001 par value shares of | |
| beneficial interest (unlimited authorization) | 13,097,151 |
| Net Asset Value Per Share—Admiral Shares | $1.00 |
• See Note A in Notes to Financial Statements.
† Adjustable-rate security based upon 3-month U.S. Treasury Bill Auction High Money Market Yield plus spread.
1 Represents annualized yield at date of purchase for discount securities, and coupon for coupon-bearing securities.
2 The issuer operates under a congressional charter; its securities are generally neither guaranteed by the U.S. Treasury nor backed
by the full faith and credit of the U.S. government.
3 Security exempt from registration under Section 4(2) of the Securities Act of 1933. Such securities may be sold in transactions
exempt from registration only to dealers in that program or other “accredited investors.” At February 28, 2018, the aggregate value
of these securities was $26,776,756,000, representing 27.5% of net assets.
4 Adjustable-rate security based upon 1-month USD LIBOR plus spread.
5 Security exempt from registration under Rule 144A of the Securities Act of 1933. Such securities may be sold in transactions
exempt from registration, normally to qualified institutional buyers. At February 28, 2018, the aggregate value of these securities
was $728,139,000, representing 0.7% of net assets.
6 Scheduled principal and interest payments are guaranteed by bank letter of credit.
VRDO—Variable Rate Demand Obligation.
See accompanying Notes, which are an integral part of the Financial Statements.
22
| |
| Prime Money Market Fund | |
| |
| |
| Statement of Operations | |
| |
| | Six Months Ended |
| | February28,2018 |
| | ($000) |
| Investment Income | |
| Income | |
| Interest | 681,285 |
| Total Income | 681,285 |
| Expenses | |
| The Vanguard Group—Note B | |
| Investment Advisory Services | 1,840 |
| Management and Administrative—Investor Shares | 55,278 |
| Management and Administrative—Admiral Shares | 5,586 |
| Marketing and Distribution—Investor Shares | 8,319 |
| Marketing and Distribution—Admiral Shares | 272 |
| Custodian Fees | 377 |
| Shareholders’ Reports and Proxy—Investor Shares | 914 |
| Shareholders’ Reports and Proxy—Admiral Shares | 46 |
| Trustees’ Fees and Expenses | 47 |
| Total Expenses | 72,679 |
| Net Investment Income | 608,606 |
| Realized Net Gain (Loss) on Investment Securities Sold | (3,169) |
| Net Increase (Decrease) in Net Assets Resulting from Operations | 605,437 |
See accompanying Notes, which are an integral part of the Financial Statements.
23
| | |
| Prime Money Market Fund | | |
| |
| |
| Statement of Changes in Net Assets | | |
| |
| | Six Months Ended | Year Ended |
| | February 28, | August 31, |
| | 2018 | 2017 |
| | ($000) | ($000) |
| Increase (Decrease) in Net Assets | | |
| Operations | | |
| Net Investment Income | 608,606 | 834,141 |
| Realized Net Gain (Loss) | (3,169) | 1,961 |
| Net Increase (Decrease) in Net Assets Resulting from Operations | 605,437 | 836,102 |
| Distributions | | |
| Net Investment Income | | |
| Investor Shares | (526,191) | (726,141) |
| Admiral Shares | (82,456) | (107,955) |
| Realized Capital Gain | | |
| Investor Shares | — | — |
| Admiral Shares | — | — |
| Total Distributions | (608,647) | (834,096) |
| Capital Share Transactions (at $1.00 per share) | | |
| Investor Shares | (564,961) | (15,325,634) |
| Admiral Shares | 1,100,367 | (4,432,381) |
| Net Increase (Decrease) from Capital Share Transactions | 535,406 | (19,758,015) |
| Total Increase (Decrease) | 532,196 | (19,756,009) |
| Net Assets | | |
| Beginning of Period | 96,883,481 | 116,639,490 |
| End of Period1 | 97,415,677 | 96,883,481 |
1 Net Assets—End of Period includes undistributed (overdistributed) net investment income of $4,000 and $45,000.
See accompanying Notes, which are an integral part of the Financial Statements.
24
| | | | | | | |
| Prime Money Market Fund | | | | | | | |
| |
| |
| Financial Highlights | | | | | | |
| |
| |
| Investor Shares | | | | | | | |
| | Six Months | | | | | |
| | | Ended | | | | | |
| For a Share Outstanding | February 28, | Year Ended August 31, |
| Throughout Each Period | | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 |
| Net Asset Value, Beginning of Period | $1.00 | $1.00 | $1.00 | $1.00 | $1.00 | $1.00 |
| Investment Operations | | | | | | | |
| Net Investment Income | | . 0061 | .0081 | .0032 | .0002 | .0001 | .0002 |
| Net Realized and Unrealized Gain (Loss) | | | | | | |
| on Investments | | — | — | — | — | — | — |
| Total from Investment Operations | .006 | .008 | .0032 | .0002 | .0001 | .0002 |
| Distributions | | | | | | | |
| Dividends from Net Investment Income | (.006) | (.008) | (.0032) | (.0002) | (.0001) | (.0002) |
| Distributions from Realized Capital Gains | — | — | — | — | (.0000)2 | — |
| Total Distributions | | (.006) | (.008) | (.0032) | (.0002) | (.0001) | (.0002) |
| Net Asset Value, End of Period | | $1.00 | $1.00 | $1.00 | $1.00 | $1.00 | $1.00 |
| |
| Total Return3 | | 0.63% | 0.83% | 0.32% | 0.02% | 0.02% | 0.02% |
| |
| Ratios/Supplemental Data | | | | | | | |
| Net Assets, End of Period (Millions) | $84,319 | $84,886 | $100,210 | $105,820 | $101,910 | $102,160 |
| Ratio of Total Expenses to | | | | | | | |
| Average Net Assets | | 0.16% | 0.16% | 0.16%4 | 0.15% 4 | 0.14% 4 | 0.16% 4 |
| Ratio of Net Investment Income to | | | | | | |
| Average Net Assets | | 1.27% | 0.82% | 0.32% | 0.02% | 0.01% | 0.02% |
The expense ratio and net investment income ratio for the current period have been annualized.
1 Calculated based on average shares outstanding.
2 Distribution was less than $.0001 per share.
3 Total returns do not include account service fees that may have applied in the periods shown. Fund prospectuses provide information
about any applicable account service fees.
4 The ratio of total expenses to average net assets before an expense reduction was 0.16% for 2016, 0.16% for 2015, 0.16% for 2014, and
0.17% for 2013. For the six months ended February 28, 2018, and the year ended August 31, 2017, there were no expense reductions.
See Note B in the Notes to Financial Statements.
See accompanying Notes, which are an integral part of the Financial Statements.
25
| | | | | | | |
| Prime Money Market Fund | | | | | | | |
| |
| |
| Financial Highlights | | | | | | |
| |
| |
| Admiral Shares | | | | | | | |
| | Six Months | | | | | |
| | | Ended | | | | | |
| For a Share Outstanding | February 28, | Year Ended August 31, |
| Throughout Each Period | | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 |
| Net Asset Value, Beginning of Period | $1.00 | $1.00 | $1.00 | $1.00 | $1.00 | $1.00 |
| Investment Operations | | | | | | | |
| Net Investment Income | | . 0071 | .0091 | .004 | .001 | .001 | .001 |
| Net Realized and Unrealized Gain (Loss) | | | | | | |
| on Investments | | — | — | — | — | — | — |
| Total from Investment Operations | .007 | .009 | .004 | .001 | .001 | .001 |
| Distributions | | | | | | | |
| Dividends from Net Investment Income | (. 007) | (. 009) | (. 004) | (. 001) | (. 001) | (. 001) |
| Distributions from Realized Capital Gains | — | — | — | — | (.000)2 | — |
| Total Distributions | | (. 007) | (. 009) | (. 004) | (. 001) | (. 001) | (. 001) |
| Net Asset Value, End of Period | | $1.00 | $1.00 | $1.00 | $1.00 | $1.00 | $1.00 |
| |
| Total Return3 | | 0.66% | 0.89% | 0.38% | 0.07% | 0.06% | 0.07% |
| |
| Ratios/Supplemental Data | | | | | | | |
| Net Assets, End of Period (Millions) | $13,097 | $11,997 | $16,429 | $28,988 | $28,699 | $27,015 |
| Ratio of Total Expenses to | | | | | | | |
| Average Net Assets | | 0.10% | 0.10% | 0.10% | 0.10% | 0.10% | 0.10% |
| Ratio of Net Investment Income to | | | | | | |
| Average Net Assets | | 1.33% | 0.88% | 0.38% | 0.07% | 0.05% | 0.07% |
The expense ratio and net investment income ratio for the current period have been annualized. Institutional Shares were renamed
Admiral Shares in December 2015. Prior periods’ Financial Highlights are for the Institutional class.
1 Calculated based on average shares outstanding.
2 Distribution was less than $.0001 per share.
3 Total returns do not include account service fees that may have applied in the periods shown. Fund prospectuses provide information
about any applicable account service fees.
See accompanying Notes, which are an integral part of the Financial Statements.
26
Prime Money Market Fund
Notes to Financial Statements
Vanguard Prime Money Market Fund is registered under the Investment Company Act of 1940 as an open-end investment company, or mutual fund. The fund invests in short-term debt instruments of companies primarily operating in specific industries, particularly financial services; the issuers’ abilities to meet their obligations may be affected by economic developments in such industries. The fund offers two classes of shares, Investor Shares and Admiral Shares. Investor Shares are available to any investor who meets the fund’s minimum purchase requirements. Admiral Shares are designed for investors who meet certain administrative, service, and account-size criteria. Effective December 2015, Institutional Shares were renamed Admiral Shares.
A. The following significant accounting policies conform to generally accepted accounting principles for U.S. investment companies. The fund consistently follows such policies in preparing its financial statements.
1. Security Valuation: Securities are valued as of the close of trading on the New York Stock Exchange (generally 4 p.m., Eastern time) on the valuation date. Securities are valued at amortized cost, which approximates market value.
2. Federal Income Taxes: The fund intends to continue to qualify as a regulated investment company and distribute all of its taxable income. Management has analyzed the fund’s tax positions taken for all open federal income tax years (August 31, 2014–2017), and for the period ended February 28, 2018, and has concluded that no provision for federal income tax is required in the fund’s financial statements.
3. Distributions: Distributions from net investment income are declared daily and paid on the first business day of the following month.
4. Credit Facility: The fund and certain other funds managed by The Vanguard Group (“Vanguard”) participate in a $3.1 billion committed credit facility provided by a syndicate of lenders pursuant to a credit agreement that may be renewed annually; each fund is individually liable for its borrowings, if any, under the credit facility. Borrowings may be utilized for temporary and emergency purposes, and are subject to the fund’s regulatory and contractual borrowing restrictions. The participating funds are charged administrative fees and an annual commitment fee of 0.10% of the undrawn amount of the facility; these fees are allocated to the funds based on a method approved by the fund’s board of trustees and included in Management and Administrative expenses on the fund’s Statement of Operations. Any borrowings under this facility bear interest at a rate based upon the higher of the one-month London Interbank Offered Rate, federal funds effective rate, or overnight bank funding rate plus an agreed-upon spread.
The fund had no borrowings outstanding at February 28, 2018, or at any time during the period then ended.
5. Other: Interest income is accrued daily. Premiums and discounts on debt securities purchased are amortized and accreted, respectively, to interest income over the lives of the respective securities. Security transactions are accounted for on the date securities are bought or sold. Costs used to determine realized gains (losses) on the sale of investment securities are those of the specific securities sold.
27
Prime Money Market Fund
Each class of shares has equal rights as to assets and earnings, except that each class separately bears certain class-specific expenses related to maintenance of shareholder accounts (included in Management and Administrative expenses), shareholder reporting, and the proxy. Marketing and distribution expenses are allocated to each class of shares based on a method approved by the board of trustees. Income, other non-class-specific expenses, and gains and losses on investments are allocated to each class of shares based on its relative net assets.
B. In accordance with the terms of a Funds’ Service Agreement (the “FSA”) between Vanguard and the fund, Vanguard furnishes to the fund investment advisory, corporate management, administrative, marketing, and distribution services at Vanguard’s cost of operations (as defined by the FSA). These costs of operations are allocated to the fund based on methods and guidelines approved by the board of trustees. Vanguard does not require reimbursement in the current period for certain costs of operations (such as deferred compensation/benefits and risk/insurance costs); the fund’s liability for these costs of operations is included in Payables to Vanguard on the Statement of Net Assets. All other costs of operations payable to Vanguard are generally settled twice a month.
Upon the request of Vanguard, the fund may invest up to 0.40% of its net assets as capital in Vanguard. At February 28, 2018, the fund had contributed to Vanguard capital in the amount of $5,001,000, representing 0.01% of the fund’s net assets and 2.00% of Vanguard’s capitalization. The fund’s trustees and officers are also directors and employees, respectively, of Vanguard.
Vanguard and the board of trustees have agreed to temporarily limit certain net operating expenses in excess of the fund’s daily yield in order to maintain a zero or positive yield for the fund. Vanguard and the board of trustees may terminate the temporary expense limitation at any time. The fund is not obligated to repay this amount to Vanguard. For the period ended February 28, 2018, the fund did not receive an expense reduction from Vanguard.
C. Various inputs may be used to determine the value of the fund’s investments. These inputs are summarized in three broad levels for financial statement purposes. The inputs or methodologies used to value securities are not necessarily an indication of the risk associated with investing in those securities.
Level 1—Quoted prices in active markets for identical securities.
Level 2—Other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.).
Level 3—Significant unobservable inputs (including the fund’s own assumptions used to determine
the fair value of investments). Any investments valued with significant unobservable inputs are
noted on the Statement of Net Assets.
At February 28, 2018, 100% of the market value of the fund’s investments was determined using amortized cost, in accordance with rules under the Investment Company Act of 1940. Amortized cost approximates the current fair value of a security, but since the value is not obtained from a quoted price in an active market, securities valued at amortized cost are considered to be valued using Level 2 inputs.
28
Prime Money Market Fund
D. Capital share transactions for each class of shares were:
| | | | |
| | Six Months Ended | Year Ended |
| | February 28, 2018 | August 31, 2017 |
| | Amount | Shares | Amount | Shares |
| | ($000) | (000) | ($000) | (000) |
| Investor Shares | | | | |
| Issued | 26,018,983 | 26,019,141 | 64,128,512 | 64,127,620 |
| Issued in Lieu of Cash Distributions | 491,622 | 491,622 | 680,319 | 680,319 |
| Redeemed | (27,075,566) | (27,075,566) | (80,134,465) | (80,134,468) |
| Net Increase (Decrease)—Investor Shares | (564,961) | (564,803) | (15,325,634) | (15,326,529) |
| Admiral Shares | | | | |
| Issued | 4,368,242 | 4,368,085 | 8,144,434 | 8,145,324 |
| Issued in Lieu of Cash Distributions | 77,173 | 77,173 | 102,733 | 102,733 |
| Redeemed | (3,345,048) | (3,345,048) | (12,679,548) | (12,679,548) |
| Net Increase (Decrease)—Admiral Shares | 1,100,367 | 1,100,210 | (4,432,381) | (4,431,491) |
E. Management has determined that no material events or transactions occurred subsequent to February 28, 2018, that would require recognition or disclosure in these financial statements.
29
Federal Money Market Fund
Fund Profile
As of February 28, 2018
| |
| Financial Attributes | |
| Ticker Symbol | VMFXX |
| Expense Ratio1 | 0.11% |
| 7-Day SEC Yield | 1.36% |
| Average Weighted | |
| Maturity | 48 days |
| |
| Sector Diversification (% of portfolio) | |
| U.S. Government Obligations | 42.6% |
| U.S. Treasury Bills | 40.3 |
| Repurchase Agreements | 17.1 |
The agency and mortgage-backed securities sectors may include
issues from government-sponsored enterprises; such issues are
generally not backed by the full faith and credit of the U.S.
government.
1 The expense ratio shown is from the prospectus dated December 22, 2017, and represents estimated costs for the current fiscal year.
For the six months ended February 28, 2018, the annualized expense ratio was 0.11%.
30
Federal Money Market Fund
Performance Summary
Investment returns will fluctuate. All of the returns in this report represent past performance, which is not a guarantee of future results that may be achieved by the fund. (Current performance may be lower or higher than the performance data cited. For performance data current to the most recent month-end, visit our website at vanguard.com/performance.) The returns shown do not reflect taxes that a shareholder would pay on fund distributions. You could lose money by investing in the fund. Although the fund seeks to preserve the value of your investment at $1 per share, it cannot guarantee it will do so. An investment in the fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. The fund’s sponsor has no legal obligation to provide financial support to the fund, and you should not expect that the sponsor will provide financial support to the fund at any time. The fund’s 7-day SEC yield reflects its current earnings more closely than do the average annual returns.
| | |
| Fiscal-Year Total Returns (%): August 31, 2007, Through February 28, 2018 | |
| | | US Gov’t Money |
| | | Market Funds |
| | | Average |
| Fiscal Year | Total Returns | Total Returns |
| 2008 | 3.46% | 2.71% |
| 2009 | 1.06 | 0.43 |
| 2010 | 0.04 | 0.00 |
| 2011 | 0.02 | 0.00 |
| 2012 | 0.01 | 0.00 |
| 2013 | 0.01 | 0.00 |
| 2014 | 0.02 | 0.00 |
| 2015 | 0.01 | 0.00 |
| 2016 | 0.23 | 0.00 |
| 2017 | 0.57 | 0.19 |
| 2018 | 0.56 | 0.29 |
| 7-day SEC yield (2/28/2018): 1.36% |
| Government Money Market Funds Average: Derived from data provided by Lipper, a Thomson Reuters Company. |
| Note: For 2018, performance data reflect the six months ended February 28, 2018. |
Average Annual Total Returns: Periods Ended December 31, 2017
This table presents returns through the latest calendar quarter—rather than through the end of the fiscal period.
Securities and Exchange Commission rules require that we provide this information.
| | | | |
| | Inception | One | Five | Ten |
| | Date | Year | Years | Years |
| Federal Money Market Fund | 7/13/1981 | 0.81% | 0.24% | 0.41% |
See Financial Highlights for dividend information.
31
Federal Money Market Fund
Financial Statements (unaudited)
Statement of Net Assets
As of February 28, 2018
The fund reports a complete list of its holdings in various monthly and quarterly regulatory filings. The fund publishes its holdings on a monthly basis at vanguard.com and files them with the Securities and Exchange Commission on Form N-MFP. The fund’s Form N-MFP filings may be viewed at sec.gov or via a link on the “Portfolio Holdings” page on vanguard.com. For the second and fourth fiscal quarters, the lists appear in the fund’s semiannual and annual reports to shareholders. For the first and third fiscal quarters, the fund files the lists with the SEC on Form N-Q. Shareholders can look up the fund’s Forms N-Q on the SEC’s website at sec.gov. Forms N-Q may also be reviewed and copied at the SEC’s Public Reference Room (see the back cover of this report for further information).
| | | | | |
| | | | | Face | Market |
| | | | Maturity | Amount | Value • |
| | | Yield1 | Date | ($000) | ($000) |
| U. S. Government and Agency Obligations (82.9%) | | | |
| 2 | Fannie Mae Discount Notes | 1.305% | 3/26/18 | 550,000 | 549,503 |
| 3 | Federal Home Loan Bank Discount | | | | |
| | Notes | 1.323%–1.325% | 3/2/18 | 147,375 | 147,370 |
| 3 | Federal Home Loan Bank Discount | | | | |
| | Notes | 1.330% | 3/8/18 | 533 | 533 |
| 3 | Federal Home Loan Bank Discount | | | | |
| | Notes | 1.353% | 3/9/18 | 200,000 | 199,940 |
| 3 | Federal Home Loan Bank Discount | | | | |
| | Notes | 1.353% | 3/12/18 | 500,000 | 499,794 |
| 3 | Federal Home Loan Bank Discount | | | | |
| | Notes | 1.342%–1.353% | 3/14/18 | 866,500 | 866,078 |
| 3 | Federal Home Loan Bank Discount | | | | |
| | Notes | 1.167%–1.351% | 3/16/18 | 1,029,000 | 1,028,430 |
| 3 | Federal Home Loan Bank Discount | | | | |
| | Notes | 1.348% | 3/19/18 | 250,000 | 249,832 |
| 3 | Federal Home Loan Bank Discount | | | | |
| | Notes | 1.157%–1.372% | 3/20/18 | 275,000 | 274,809 |
| 3 | Federal Home Loan Bank Discount | | | | |
| | Notes | 1.338%–1.358% | 3/21/18 | 1,179,462 | 1,178,582 |
| 3 | Federal Home Loan Bank Discount | | | | |
| | Notes | 1.353%–1.359% | 3/22/18 | 765,000 | 764,396 |
| 3 | Federal Home Loan Bank Discount | | | | |
| | Notes | 1.330%–1.369% | 3/23/18 | 730,000 | 729,404 |
| 3 | Federal Home Loan Bank Discount | | | | |
| | Notes | 1.368% | 3/26/18 | 500,000 | 499,526 |
| 3 | Federal Home Loan Bank Discount | | | | |
| | Notes | 1.369% | 3/27/18 | 500,000 | 499,507 |
| 3 | Federal Home Loan Bank Discount | | | | |
| | Notes | 1.373%–1.384% | 3/28/18 | 549,913 | 549,346 |
| 3 | Federal Home Loan Bank Discount | | | | |
| | Notes | 1.353% | 3/29/18 | 1,800,000 | 1,798,110 |
| 3 | Federal Home Loan Bank Discount | | | | |
| | Notes | 1.423% | 4/2/18 | 225,000 | 224,716 |
32
| | | | | |
| Federal Money Market Fund | | | | |
| |
| |
| |
| | | | | Face | Market |
| | | | Maturity | Amount | Value • |
| | | Yield1 | Date | ($000) | ($000) |
| 3 | Federal Home Loan Bank Discount | | | | |
| | Notes | 1.414%–1.423% | 4/4/18 | 1,145,250 | 1,143,715 |
| 3 | Federal Home Loan Bank Discount | | | | |
| | Notes | 1.212%–1.483% | 4/6/18 | 911,909 | 910,616 |
| 3 | Federal Home Loan Bank Discount | | | | |
| | Notes | 1.233%–1.624% | 4/11/18 | 680,000 | 678,969 |
| 3 | Federal Home Loan Bank Discount | | | | |
| | Notes | 1.580% | 4/13/18 | 333,218 | 332,591 |
| 3 | Federal Home Loan Bank Discount | | | | |
| | Notes | 1.584% | 4/17/18 | 600,000 | 598,762 |
| 3 | Federal Home Loan Bank Discount | | | | |
| | Notes | 1.233% | 4/18/18 | 75,000 | 74,878 |
| 3 | Federal Home Loan Bank Discount | | | | |
| | Notes | 1.248% | 4/20/18 | 215,000 | 214,630 |
| 3 | Federal Home Loan Bank Discount | | | | |
| | Notes | 1.627% | 5/16/18 | 200,000 | 199,316 |
| 3,4 | Federal Home Loan Banks | 1.630% | 3/2/18 | 250,000 | 250,000 |
| 3,5 | Federal Home Loan Banks | 1.560% | 3/7/18 | 500,000 | 500,000 |
| 3,5 | Federal Home Loan Banks | 1.623% | 3/23/18 | 500,000 | 500,000 |
| 3,5 | Federal Home Loan Banks | 1.508% | 4/27/18 | 500,000 | 500,000 |
| 3,5 | Federal Home Loan Banks | 1.440% | 5/1/18 | 500,000 | 500,000 |
| 3,5 | Federal Home Loan Banks | 1.414% | 5/3/18 | 100,000 | 99,992 |
| 3,5 | Federal Home Loan Banks | 1.444% | 5/9/18 | 500,000 | 500,000 |
| 3,5 | Federal Home Loan Banks | 1.455% | 5/17/18 | 500,000 | 500,000 |
| 3,5 | Federal Home Loan Banks | 1.468% | 5/23/18 | 750,000 | 750,000 |
| 3,5 | Federal Home Loan Banks | 1.486% | 5/25/18 | 500,000 | 500,000 |
| 3,5 | Federal Home Loan Banks | 1.486% | 5/25/18 | 500,000 | 500,000 |
| 3,5 | Federal Home Loan Banks | 1.486% | 5/25/18 | 750,000 | 750,000 |
| 3,5 | Federal Home Loan Banks | 1.445% | 6/1/18 | 500,000 | 500,000 |
| 3,5 | Federal Home Loan Banks | 1.445% | 6/1/18 | 500,000 | 500,000 |
| 3,5 | Federal Home Loan Banks | 1.441% | 6/12/18 | 350,000 | 350,000 |
| 3,5 | Federal Home Loan Banks | 1.441% | 6/12/18 | 230,000 | 230,000 |
| 3,5 | Federal Home Loan Banks | 1.443% | 6/13/18 | 250,000 | 250,000 |
| 3,5 | Federal Home Loan Banks | 1.448% | 6/14/18 | 500,000 | 500,000 |
| 3,5 | Federal Home Loan Banks | 1.518% | 6/28/18 | 500,000 | 500,000 |
| 3,5 | Federal Home Loan Banks | 1.450% | 8/20/18 | 44,850 | 44,844 |
| 3,5 | Federal Home Loan Banks | 1.476% | 8/24/18 | 1,750,000 | 1,750,000 |
| 3,5 | Federal Home Loan Banks | 1.506% | 8/24/18 | 750,000 | 750,000 |
| 3,5 | Federal Home Loan Banks | 1.533% | 8/28/18 | 250,000 | 250,000 |
| 3,5 | Federal Home Loan Banks | 1.533% | 8/28/18 | 930,000 | 930,081 |
| 3,5 | Federal Home Loan Banks | 1.450% | 9/18/18 | 240,000 | 239,957 |
| 3,5 | Federal Home Loan Banks | 1.516% | 9/27/18 | 600,000 | 600,000 |
| 3,5 | Federal Home Loan Banks | 1.486% | 10/26/18 | 1,000,000 | 1,000,000 |
| 3,5 | Federal Home Loan Banks | 1.489% | 11/8/18 | 100,000 | 99,997 |
| 3,5 | Federal Home Loan Banks | 1.465% | 11/20/18 | 1,000,000 | 1,000,000 |
| 3,5 | Federal Home Loan Banks | 1.514% | 11/21/18 | 500,000 | 500,000 |
| 3,5 | Federal Home Loan Banks | 1.523% | 11/23/18 | 230,000 | 230,000 |
| 3,5 | Federal Home Loan Banks | 1.556% | 11/28/18 | 600,000 | 600,000 |
| 2,5 | Federal Home Loan Mortgage Corp. | 1.564% | 3/9/18 | 650,000 | 650,000 |
| 2,5 | Federal Home Loan Mortgage Corp. | 1.595% | 7/6/18 | 750,000 | 750,000 |
| 2,5 | Federal Home Loan Mortgage Corp. | 1.444% | 8/20/18 | 2,000,000 | 2,000,000 |
| 2,5 | Federal Home Loan Mortgage Corp. | 1.460% | 12/7/18 | 1,500,000 | 1,500,000 |
| 2,5 | Federal Home Loan Mortgage Corp. | 1.479% | 8/8/19 | 1,000,000 | 1,000,000 |
| 2,5 | Federal Home Loan Mortgage Corp. | 1.481% | 8/12/19 | 1,000,000 | 1,000,000 |
33
| | | | | | |
| Federal Money Market Fund | | | | | |
| |
| |
| |
| | | | | | Face | Market |
| | | | | Maturity | Amount | Value • |
| | | | Yield1 | Date | ($000) | ($000) |
| 2,4 | Federal National Mortgage Assn. | | 1.592% | 3/21/18 | 400,000 | 400,016 |
| 2 | Freddie Mac Discount Notes | | 1.337% | 3/1/18 | 25,121 | 25,121 |
| 2 | Freddie Mac Discount Notes | | 1.167% | 3/16/18 | 44,491 | 44,469 |
| | United States Treasury Bill | | 1.564% | 4/12/18 | 500,000 | 499,090 |
| | United States Treasury Bill | | 1.444% | 4/19/18 | 4,228,500 | 4,220,212 |
| | United States Treasury Bill | | 1.268% | 5/3/18 | 3,000,000 | 2,993,385 |
| | United States Treasury Bill | 1.309%–1.531% | 5/10/18 | 2,500,000 | 2,493,462 |
| | United States Treasury Bill | 1.369%–1.576% | 5/17/18 | 4,780,600 | 4,765,894 |
| | United States Treasury Bill | | 1.425% | 5/24/18 | 2,250,000 | 2,242,571 |
| | United States Treasury Bill | 1.445%–1.652% | 5/31/18 | 3,750,000 | 3,735,601 |
| | United States Treasury Bill | | 1.461% | 6/7/18 | 1,875,000 | 1,867,599 |
| | United States Treasury Bill | | 1.471% | 6/14/18 | 1,923,000 | 1,914,811 |
| | United States Treasury Bill | | 1.542% | 6/28/18 | 3,500,000 | 3,482,299 |
| | United States Treasury Bill | | 1.588% | 7/5/18 | 1,500,000 | 1,491,731 |
| | United States Treasury Bill | | 1.588% | 7/12/18 | 1,500,000 | 1,491,272 |
| | United States Treasury Bill | | 1.613% | 7/19/18 | 1,500,000 | 1,490,667 |
| | United States Treasury Bill | | 1.628% | 7/26/18 | 1,000,000 | 993,405 |
| | United States Treasury Bill | | 1.639% | 8/2/18 | 750,000 | 744,783 |
| | United States Treasury Bill | | 1.801% | 8/16/18 | 500,000 | 495,835 |
| | United States Treasury Bill | | 1.837% | 8/23/18 | 1,743,600 | 1,728,174 |
| 6 | United States Treasury Floating Rate Note | 1.822% | 10/31/18 | 600,000 | 600,004 |
| Total U.S. Government and Agency Obligations (Cost $75,508,625) | | 75,508,625 |
| Repurchase Agreements (18.7%) | | | | | |
| | Bank of Montreal | | | | | |
| | (Dated 2/1/18, Repurchase Value | | | | | |
| | $500,513,000, collateralized by | | | | | |
| | Treasury Inflation Indexed Note/Bond | | | | | |
| | 0.125%–3.875%, 7/15/26–2/15/47, | | | | | |
| | and U.S. Treasury Note/Bond | | | | | |
| | 0.750%–3.625%, 5/31/18–2/15/48, | | | | | |
| | with a value of $510,000,000) | | 1.320% | 3/1/18 | 500,000 | 500,000 |
| | Bank of Montreal | | | | | |
| | (Dated 2/28/18, Repurchase Value | | | | | |
| | $400,015,000, collateralized by | | | | | |
| | Treasury Inflation Indexed Note/Bond | | | | | |
| | 0.125%–1.375%, 4/15/18–2/15/46, | | | | | |
| | U. S. Treasury Bill 0.000%, 3/29/18, | | | | | |
| | and U.S. Treasury Note/Bond | | | | | |
| | 1.375%–5.250%, 2/28/19–11/15/46, | | | | | |
| | with a value of $408,000,000) | | 1.340% | 3/1/18 | 400,000 | 400,000 |
| | Bank of Montreal | | | | | |
| | (Dated 1/29/18, Repurchase Value | | | | | |
| | $250,484,000, collateralized by | | | | | |
| | Treasury Inflation Indexed Note/Bond | | | | | |
| | 0.125%–2.125%, 7/15/19–2/15/47, | | | | | |
| | and U.S. Treasury Note/Bond | | | | | |
| | 1.250%–3.750%, 5/31/19–8/15/46, | | | | | |
| | with a value of $255,000,000) | | 1.340% | 3/22/18 | 250,000 | 250,000 |
34
| | | | |
| Federal Money Market Fund | | | | |
| |
| |
| |
| | | | Face | Market |
| | | Maturity | Amount | Value • |
| | Yield1 | Date | ($000) | ($000) |
| Bank of Montreal | | | | |
| (Dated 1/29/18, Repurchase Value | | | | |
| $400,795,000, collateralized by | | | | |
| Treasury Inflation Indexed Note/Bond | | | | |
| 0.125%–1.375%, 7/15/20–2/15/44, | | | | |
| and U.S. Treasury Note/Bond | | | | |
| 1.375%–3.875%, 11/30/18–5/15/47, | | | | |
| with a value of $408,000,000) | 1.350% | 3/23/18 | 400,000 | 400,000 |
| Bank of Nova Scotia | | | | |
| (Dated 2/28/18, Repurchase Value | | | | |
| $1,750,065,000, collateralized by | | | | |
| Treasury Inflation Indexed Note/Bond | | | | |
| 0.125%–3.875%, 7/15/20–2/15/40, | | | | |
| U. S. Treasury Bill 0.000%, 4/12/18–1/3/19, | | | | |
| and U.S. Treasury Note/Bond | | | | |
| 0.875%– 6.000%, 4/30/18–8/15/47, | | | | |
| with a value of $1,785,000,000) | 1.340% | 3/1/18 | 1,750,000 | 1,750,000 |
| Canadian Imperial Bank of Commerce | | | | |
| (Dated 2/28/18, Repurchase Value | | | | |
| $3,500,130,000, collateralized by | | | | |
| Treasury Inflation Indexed Note/Bond | | | | |
| 0.125%–3.625%, 4/15/20–4/15/28, | | | | |
| and U.S. Treasury Note/Bond | | | | |
| 0.875%–4.375%, 10/15/18–11/15/46, | | | | |
| with a value of $3,570,000,000) | 1.340% | 3/1/18 | 3,500,000 | 3,500,000 |
| Credit Agricole Corporate & Investment | | | | |
| Bank NY Branch (Dated 2/28/18, | | | | |
| Repurchase Value $2,000,075,000, | | | | |
| collateralized by Treasury Inflation | | | | |
| Indexed Note/Bond 0.125%, 7/15/26, | | | | |
| U. S. Treasury Bill 0.000%, 5/10/18, | | | | |
| and U.S. Treasury Note/Bond | | | | |
| 1.125%–3.000%, 9/30/21–11/15/45, | | | | |
| with a value of $2,040,000,000) | 1.350% | 3/1/18 | 2,000,000 | 2,000,000 |
| Credit Agricole Corporate & | | | | |
| Investment Bank NY Branch | | | | |
| (Dated 2/23/18, Repurchase Value | | | | |
| $300,079,000, collateralized by | | | | |
| U. S. Treasury Note/Bond 1.875%–2.875%, | | | | |
| 10/31/22–11/15/46, with a value | | | | |
| of $306,000,000) | 1.350% | 3/2/18 | 300,000 | 300,000 |
| Credit Agricole Corporate & | | | | |
| Investment Bank NY Branch | | | | |
| (Dated 2/27/18, Repurchase Value | | | | |
| $500,131,000, collateralized by | | | | |
| Treasury Inflation Indexed | | | | |
| Note/Bond 0.125%–3.625%, | | | | |
| 4/15/22–4/15/28, and U.S. | | | | |
| Treasury Note/Bond 1.375%–3.125%, | | | | |
| 9/30/19–11/15/41, with a value | | | | |
| of $510,000,000) | 1.350% | 3/6/18 | 500,000 | 500,000 |
35
| | | | |
| Federal Money Market Fund | | | | |
| |
| |
| |
| | | | Face | Market |
| | | Maturity | Amount | Value • |
| | Yield1 | Date | ($000) | ($000) |
| Credit Agricole Corporate & | | | | |
| Investment Bank NY Branch | | | | |
| (Dated 2/28/18, Repurchase Value | | | | |
| $1,200,317,000, collateralized by | | | | |
| Treasury Inflation Indexed Note/Bond | | | | |
| 0.625%–3.375%, 1/15/19–2/15/48, | | | | |
| U. S. Treasury Bill 0.000%, | | | | |
| 3/8/18–1/31/19, and U.S. Treasury | | | | |
| Note/Bond 0.750%–9.125%, | | | | |
| 3/15/18–2/15/48, with a value | | | | |
| of $1,224,000,000) | 1.360% | 3/7/18 | 1,200,000 | 1,200,000 |
| JP Morgan Securities LLC | | | | |
| (Dated 2/28/18, Repurchase Value | | | | |
| $45,002,000, collateralized by | | | | |
| U.S. Treasury Note/Bond 3.750%, | | | | |
| 11/15/43, with a value of $45,902,000) | 1.320% | 3/1/18 | 45,000 | 45,000 |
| JP Morgan Securities LLC | | | | |
| (Dated 2/28/18, Repurchase Value | | | | |
| $100,004,000, collateralized by | | | | |
| U.S. Treasury Note/Bond | | | | |
| 1.875%–2.125%, 10/31/22–9/30/24, | | | | |
| with a value of $102,004,000) | 1.320% | 3/1/18 | 100,000 | 100,000 |
| JP Morgan Securities LLC | | | | |
| (Dated 2/28/18, Repurchase Value | | | | |
| $500,018,000, collateralized by | | | | |
| Treasury Inflation Indexed Note/Bond | | | | |
| 0.375%–0.625%, 1/15/26–7/15/27, | | | | |
| and U.S. Treasury Note/Bond | | | | |
| 1.625%–1.875%, 8/31/22–9/30/22, | | | | |
| with a value of $510,002,000) | 1.320% | 3/1/18 | 500,000 | 500,000 |
| JP Morgan Securities LLC | | | | |
| (Dated 2/28/18, Repurchase Value | | | | |
| $1,050,040,000, collateralized by | | | | |
| Treasury Inflation Indexed | | | | |
| Note/Bond 0.125%–3.875%, | | | | |
| 1/15/19–2/15/44, with a value | | | | |
| of $1,071,013,000) | 1.360% | 3/1/18 | 1,050,000 | 1,050,000 |
| Mizuho Securities (USA) Inc. | | | | |
| (Dated 2/28/18, Repurchase Value | | | | |
| $500,019,000, collateralized by | | | | |
| U. S. Treasury Note/Bond 1.125%–2.875%, | | | | |
| 7/31/21–11/15/46, with a value | | | | |
| of $510,000,000) | 1.350% | 3/1/18 | 500,000 | 500,000 |
| RBC Dominion Securities | | | | |
| (Dated 2/28/18, Repurchase Value | | | | |
| $250,009,000, collateralized by | | | | |
| U. S. Treasury Note/Bond 1.875%–3.625%, | | | | |
| 12/31/19–11/15/27, with a value | | | | |
| of $255,000,000) | 1.340% | 3/1/18 | 250,000 | 250,000 |
36
| | | | |
| Federal Money Market Fund | | | | |
| |
| |
| |
| | | | Face | Market |
| | | Maturity | Amount | Value • |
| | Yield1 | Date | ($000) | ($000) |
| RBC Dominion Securities | | | | |
| (Dated 2/28/18, Repurchase Value | | | | |
| $2,500,093,000, collateralized | | | | |
| by Treasury Inflation Indexed | | | | |
| Note/Bond 0.125%–1.000%, | | | | |
| 7/15/24–2/15/46, U.S. Treasury | | | | |
| Bill 0.000%, 5/24/18, and | | | | |
| U.S. Treasury Note/Bond | | | | |
| 0.750%–4.500%, 3/31/18–5/15/47, | | | | |
| with a value of $2,550,000,000) | 1.340% | 3/1/18 | 2,500,000 | 2,500,000 |
| RBC Dominion Securities | | | | |
| (Dated 2/28/18, Repurchase Value | | | | |
| $250,066,000, collateralized by | | | | |
| Treasury Inflation Indexed Note/Bond | | | | |
| 0.750%, 2/15/45, and U.S. Treasury | | | | |
| Note/Bond 1.625%–2.250%, | | | | |
| 3/31/19–11/15/27, with a value | | | | |
| of $255,000,000) | 1.350% | 3/7/18 | 250,000 | 250,000 |
| TD Securities (USA) LLC | | | | |
| (Dated 2/28/18, Repurchase Value | | | | |
| $400,015,000, collateralized by | | | | |
| U.S. Treasury Note/Bond | | | | |
| 3.625%–4.375%, 5/15/40–8/15/43, | | | | |
| with a value of $408,000,000) | 1.340% | 3/1/18 | 400,000 | 400,000 |
| TD Securities (USA) LLC | | | | |
| (Dated 2/23/18, Repurchase Value | | | | |
| $200,053,000, collateralized by | | | | |
| U.S. Treasury Note/Bond | | | | |
| 2.000%–2.250%, 3/31/21–2/15/23, | | | | |
| with a value of $204,000,000) | 1.350% | 3/2/18 | 200,000 | 200,000 |
| TD Securities (USA) LLC | | | | |
| (Dated 2/28/18, Repurchase Value | | | | |
| $100,026,000, collateralized by | | | | |
| U.S. Treasury Note/Bond | | | | |
| 1.250%–2.375%, 7/31/23–8/15/24, | | | | |
| with a value of $102,000,000) | 1.350% | 3/7/18 | 100,000 | 100,000 |
| TD Securities (USA) LLC | | | | |
| (Dated 2/28/18, Repurchase Value | | | | |
| $275,073,000, collateralized by | | | | |
| U.S. Treasury Note/Bond | | | | |
| 1.375%–2.125%, 2/28/19–8/15/25, | | | | |
| with a value of $280,500,000) | 1.360% | 3/7/18 | 275,000 | 275,000 |
| Total Repurchase Agreements (Cost $16,970,000) | | | 16,970,000 |
| Total Investments (101.6%) (Cost $92,478,625) | | | | 92,478,625 |
37
| |
| Federal Money Market Fund | |
| |
| |
| |
| |
| | Amount |
| | ($000) |
| Other Assets and Liabilities (-1.6%) | |
| Other Assets | |
| Investment in Vanguard | 4,519 |
| Receivables for Accrued Income | 15,245 |
| Receivables for Capital Shares Issued | 468,671 |
| Other Assets | 24,040 |
| Total Other Assets | 512,475 |
| Liabilities | |
| Payables for Investment Securities Purchased | (1,493,763) |
| Payables for Capital Shares Redeemed | (438,718) |
| Payables for Distributions | (1,334) |
| Payables to Vanguard | (4,096) |
| Total Liabilities | (1,937,911) |
| Net Assets (100%) | |
| Applicable to 91,054,888,465 outstanding $.001 par value shares of | |
| beneficial interest (unlimited authorization) | 91,053,189 |
| Net Asset Value Per Share | $1.00 |
| |
| |
| At February 28, 2018, net assets consisted of: | |
| | Amount |
| | ($000) |
| Paid-in Capital | 91,055,398 |
| Undistributed Net Investment Income | 114 |
| Accumulated Net Realized Losses | (2,323) |
| Net Assets | 91,053,189 |
• See Note A in Notes to Financial Statements.
1 Represents annualized yield at date of purchase for discount securities, and coupon for coupon-bearing securities.
2 The issuer was placed under federal conservatorship in September 2008; since that time, its daily operations have been managed
by the Federal Housing Finance Agency and it receives capital from the U.S. Treasury, as needed to maintain a positive net worth,
in exchange for senior preferred stock.
3 The issuer operates under a congressional charter; its securities are generally neither guaranteed by the U.S. Treasury nor backed
by the full faith and credit of the U.S. government.
4 Adjustable-rate security based upon 3-month USD LIBOR plus spread.
5 Adjustable-rate security based upon 1-month USD LIBOR plus spread.
6 Adjustable-rate security based upon 3-month U.S. Treasury Bill Auction High Money Market Yield plus spread.
See accompanying Notes, which are an integral part of the Financial Statements.
38
| |
| Federal Money Market Fund | |
| |
| |
| Statement of Operations | |
| |
| | Six Months Ended |
| | February28,2018 |
| | ($000) |
| Investment Income | |
| Income | |
| Interest | 514,711 |
| Total Income | 514,711 |
| Expenses | |
| The Vanguard Group—Note B | |
| Investment Advisory Services | 1,623 |
| Management and Administrative | 34,658 |
| Marketing and Distribution | 8,416 |
| Custodian Fees | 315 |
| Shareholders’ Reports and Proxy | 836 |
| Trustees’ Fees and Expenses | 44 |
| Total Expenses | 45,892 |
| Net Investment Income | 468,819 |
| Realized Net Gain (Loss) on Investment Securities Sold | (1,783) |
| Net Increase (Decrease) in Net Assets Resulting from Operations | 467,036 |
See accompanying Notes, which are an integral part of the Financial Statements.
39
| | |
| Federal Money Market Fund | | |
| |
| |
| Statement of Changes in Net Assets | | |
| |
| | Six Months Ended | Year Ended |
| | February 28, | August 31, |
| | 2018 | 2017 |
| | ($000) | ($000) |
| Increase (Decrease) in Net Assets | | |
| Operations | | |
| Net Investment Income | 468,819 | 402,841 |
| Realized Net Gain (Loss) | (1,783) | (596) |
| Net Increase (Decrease) in Net Assets Resulting from Operations | 467,036 | 402,245 |
| Distributions | | |
| Net Investment Income | (468,754) | (402,787) |
| Realized Capital Gain | — | — |
| Total Distributions | (468,754) | (402,787) |
| Capital Share Transactions (at $1.00 per share) | | |
| Issued | 44,071,135 | 88,362,924 |
| Issued in Lieu of Cash Distributions | 460,416 | 395,681 |
| Redeemed | (32,928,229) | (48,110,472) |
| Net Increase (Decrease) from Capital Share Transactions | 11,603,322 | 40,648,133 |
| Total Increase (Decrease) | 11,601,604 | 40,647,591 |
| Net Assets | | |
| Beginning of Period | 79,451,585 | 38,803,994 |
| End of Period1 | 91,053,189 | 79,451,585 |
1 Net Assets—End of Period includes undistributed (overdistributed) net investment income of $114,000 and $49,000.
See accompanying Notes, which are an integral part of the Financial Statements.
40
| | | | | | | |
| Federal Money Market Fund | | | | | | | |
| |
| |
| Financial Highlights | | | | | | |
| |
| |
| | Six Months | | | | | |
| | | Ended | | | | | |
| For a Share Outstanding | February 28, | Year Ended August 31, |
| Throughout Each Period | | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 |
| Net Asset Value, Beginning of Period | $1.00 | $1.00 | $1.00 | $1.00 | $1.00 | $1.00 |
| Investment Operations | | | | | | | |
| Net Investment Income | | . 0061 | .0061 | .0022 | .0001 | .0001 | .0001 |
| Net Realized and Unrealized Gain (Loss) | | | | | | |
| on Investments | | — | — | — | — | — | — |
| Total from Investment Operations | .006 | .006 | .0022 | .0001 | .0001 | .0001 |
| Distributions | | | | | | | |
| Dividends from Net Investment Income | (.006) | (.006) | (.0022) | (.0001) | (.0001) | (.0001) |
| Distributions from Realized Capital Gains | — | — | — | — | (.0000)2 | — |
| Total Distributions | | (.006) | (.006) | (.0022) | (.0001) | (.0001) | (.0001) |
| Net Asset Value, End of Period | | $1.00 | $1.00 | $1.00 | $1.00 | $1.00 | $1.00 |
| |
| Total Return3 | | 0.56% | 0.57% | 0.23% | 0.01% | 0.02% | 0.01% |
| |
| Ratios/Supplemental Data | | | | | | | |
| Net Assets, End of Period (Millions) | $91,053 | $79,452 | $38,804 | $3,325 | $3,108 | $3,522 |
| Ratio of Total Expenses to | | | | | | | |
| Average Net Assets | | 0.11% | 0.11% | 0.11%4 | 0.10% 4 | 0.09% 4 | 0.13% 4 |
| Ratio of Net Investment Income to | | | | | | |
| Average Net Assets | | 1.12% | 0.60% | 0.27% | 0.01% | 0.01% | 0.01% |
The expense ratio and net investment income ratio for the current period have been annualized.
1 Calculated based on average shares outstanding.
2 Distribution was less than $.0001 per share.
3 Total returns do not include account service fees that may have applied in the periods shown. Fund prospectuses provide information
about any applicable account service fees.
4 The ratio of total expenses to average net assets before an expense reduction was 0.11% for 2016, 0.11% for 2015, 0.11% for 2014,
and 0.14% for 2013. For the six months ended February 28, 2018, and the year ended August 31, 2017, there were no expense
reductions. See Note B in the Notes to Financial Statements.
See accompanying Notes, which are an integral part of the Financial Statements.
41
Federal Money Market Fund
Notes to Financial Statements
Vanguard Federal Money Market Fund is registered under the Investment Company Act of 1940 as an open-end investment company, or mutual fund. The fund invests in short-term debt instruments issued by the U.S. government or its agencies and instrumentalities, and repurchase agreements collateralized by such instruments.
A. The following significant accounting policies conform to generally accepted accounting principles for U.S. investment companies. The fund consistently follows such policies in preparing its financial statements.
1. Security Valuation: Securities are valued as of the close of trading on the New York Stock Exchange (generally 4 p.m., Eastern time) on the valuation date. Securities are valued at amortized cost, which approximates market value.
2. Repurchase Agreements: The fund enters into repurchase agreements with institutional counterparties. Securities pledged as collateral to the fund under repurchase agreements are held by a custodian bank until the agreements mature, and in the absence of a default, such collateral cannot be repledged, resold, or rehypothecated. Each agreement requires that the market value of the collateral be sufficient to cover payments of interest and principal. The fund further mitigates its counterparty risk by entering into repurchase agreements only with a diverse group of prequalified counterparties, monitoring their financial strength, and entering into master repurchase agreements with its counterparties. The master repurchase agreements provide that, in the event of a counterparty’s default (including bankruptcy), the fund may terminate any repurchase agreements with that counterparty, determine the net amount owed, and sell or retain the collateral up to the net amount owed to the fund. Such action may be subject to legal proceedings, which may delay or limit the disposition of collateral.
3. Federal Income Taxes: The fund intends to continue to qualify as a regulated investment company and distribute all of its taxable income. Management has analyzed the fund’s tax positions taken for all open federal income tax years (August 31, 2014–2017), and for the period ended February 28, 2018, and has concluded that no provision for federal income tax is required in the fund’s financial statements.
4. Distributions: Distributions from net investment income are declared daily and paid on the first business day of the following month.
5. Credit Facility: The fund and certain other funds managed by The Vanguard Group (“Vanguard”) participate in a $3.1 billion committed credit facility provided by a syndicate of lenders pursuant to a credit agreement that may be renewed annually; each fund is individually liable for its borrowings, if any, under the credit facility. Borrowings may be utilized for temporary and emergency purposes, and are subject to the fund’s regulatory and contractual borrowing restrictions. The participating funds are charged administrative fees and an annual commitment fee of 0.10% of the undrawn amount of the facility; these fees are allocated to the funds based on a method approved by the fund’s board of trustees and included in Management and Administrative expenses on the fund’s Statement of Operations. Any borrowings under this facility bear interest at a rate based upon the higher of the one-month London Interbank Offered Rate, federal funds effective rate, or overnight bank funding rate plus an agreed-upon spread.
The fund had no borrowings outstanding at February 28, 2018, or at any time during the period then ended.
42
Federal Money Market Fund
6. Other: Interest income is accrued daily. Premiums and discounts on debt securities purchased are amortized and accreted, respectively, to interest income over the lives of the respective securities. Security transactions are accounted for on the date securities are bought or sold. Costs used to determine realized gains (losses) on the sale of investment securities are those of the specific securities sold.
B. In accordance with the terms of a Funds’ Service Agreement (the “FSA”) between Vanguard and the fund, Vanguard furnishes to the fund investment advisory, corporate management, administrative, marketing, and distribution services at Vanguard’s cost of operations (as defined by the FSA). These costs of operations are allocated to the fund based on methods and guidelines approved by the board of trustees. Vanguard does not require reimbursement in the current period for certain costs of operations (such as deferred compensation/benefits and risk/insurance costs); the fund’s liability for these costs of operations is included in Payables to Vanguard on the Statement of Net Assets. All other costs of operations payable to Vanguard are generally settled twice a month.
Upon the request of Vanguard, the fund may invest up to 0.40% of its net assets as capital in Vanguard. At February 28, 2018, the fund had contributed to Vanguard capital in the amount of $4,519,000, representing 0.01% of the fund’s net assets and 1.81% of Vanguard’s capitalization. The fund’s trustees and officers are also directors and employees, respectively, of Vanguard.
Vanguard and the board of trustees have agreed to temporarily limit certain net operating expenses in excess of the fund’s daily yield in order to maintain a zero or positive yield for the fund. Vanguard and the board of trustees may terminate the temporary expense limitation at any time. The fund is not obligated to repay this amount to Vanguard. For the period ended February 28, 2018, the fund did not receive an expense reduction from Vanguard.
C. Various inputs may be used to determine the value of the fund’s investments. These inputs are summarized in three broad levels for financial statement purposes. The inputs or methodologies used to value securities are not necessarily an indication of the risk associated with investing in those securities.
Level 1—Quoted prices in active markets for identical securities.
Level 2—Other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.).
Level 3—Significant unobservable inputs (including the fund’s own assumptions used to determine
the fair value of investments). Any investments valued with significant unobservable inputs are
noted on the Statement of Net Assets.
At February 28, 2018, 100% of the market value of the fund’s investments was determined using amortized cost, in accordance with rules under the Investment Company Act of 1940. Amortized cost approximates the current fair value of a security, but since the value is not obtained from a quoted price in an active market, securities valued at amortized cost are considered to be valued using Level 2 inputs.
D. Management has determined that no material events or transactions occurred subsequent to February 28, 2018, that would require recognition or disclosure in these financial statements.
43
Treasury Money Market Fund
Fund Profile
As of February 28, 2018
| |
| Financial Attributes | |
| Ticker Symbol | VUSXX |
| Expense Ratio1 | 0.09% |
| 7-Day SEC Yield | 1.41% |
| Average Weighted | |
| Maturity | 55 days |
| |
| Sector Diversification (% of portfolio) | |
| U.S. Treasury Bills | 100.0% |
The agency and mortgage-backed securities sectors may include
issues from government-sponsored enterprises; such issues are
generally not backed by the full faith and credit of the U.S.
government.
1 The expense ratio shown is from the prospectus dated December 22, 2017, and represents estimated costs for the current fiscal year.
For the six months ended February 28, 2018, the annualized expense ratio was 0.09%.
44
Treasury Money Market Fund
Performance Summary
Investment returns will fluctuate. All of the returns in this report represent past performance, which is not a guarantee of future results that may be achieved by the fund. (Current performance may be lower or higher than the performance data cited. For performance data current to the most recent month-end, visit our website at vanguard.com/performance.) The returns shown do not reflect taxes that a shareholder would pay on fund distributions. You could lose money by investing in the fund. Although the fund seeks to preserve the value of your investment at $1 per share, it cannot guarantee it will do so. An investment in the fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. The fund’s sponsor has no legal obligation to provide financial support to the fund, and you should not expect that the sponsor will provide financial support to the fund at any time. The fund’s 7-day SEC yield reflects its current earnings more closely than do the average annual returns.
| | |
| Fiscal-Year Total Returns (%): August 31, 2007, Through February 28, 2018 | |
| | | iMoneyNet |
| | | Average |
| Fiscal Year | Total Returns | Total Returns |
| 2008 | 3.08% | 2.08% |
| 2009 | 0.70 | 0.17 |
| 2010 | 0.03 | 0.00 |
| 2011 | 0.02 | 0.00 |
| 2012 | 0.01 | 0.00 |
| 2013 | 0.02 | 0.00 |
| 2014 | 0.01 | 0.00 |
| 2015 | 0.01 | 0.00 |
| 2016 | 0.17 | 0.00 |
| 2017 | 0.54 | 0.19 |
| 2018 | 0.55 | 0.31 |
| 7-day SEC yield (2/28/2018): 1.41% |
| iMoneyNet Money Fund Report’s 100% Treasury Funds Average: Derived from data provided by iMoneyNet, Inc. |
| Note: For 2018, performance data reflect the six months ended February 28, 2018. |
Average Annual Total Returns: Periods Ended December 31, 2017
This table presents returns through the latest calendar quarter—rather than through the end of the fiscal period.
Securities and Exchange Commission rules require that we provide this information.
| | | | |
| | Inception | One | Five | Ten |
| | Date | Year | Years | Years |
| Treasury Money Market Fund | 12/14/1992 | 0.79% | 0.22% | 0.35% |
See Financial Highlights for dividend information.
45
Treasury Money Market Fund
Financial Statements (unaudited)
Statement of Net Assets
As of February 28, 2018
The fund reports a complete list of its holdings in various monthly and quarterly regulatory filings. The fund publishes its holdings on a monthly basis at vanguard.com and files them with the Securities and Exchange Commission on Form N-MFP. The fund’s Form N-MFP filings may be viewed at sec.gov or via a link on the “Portfolio Holdings” page on vanguard.com. For the second and fourth fiscal quarters, the lists appear in the fund’s semiannual and annual reports to shareholders. For the first and third fiscal quarters, the fund files the lists with the SEC on Form N-Q. Shareholders can look up the fund’s Forms N-Q on the SEC’s website at sec.gov. Forms N-Q may also be reviewed and copied at the SEC’s Public Reference Room (see the back cover of this report for further information).
| | | | | |
| | | | | Face | Market |
| | | | Maturity | Amount | Value • |
| | | Yield1 | Date | ($000) | ($000) |
| U. S. Government and Agency Obligations (102.4%) | | | |
| | United States Treasury Bill | 1.100%–1.175% | 3/1/18 | 422,808 | 422,808 |
| | United States Treasury Bill | 1.293%–1.323% | 3/29/18 | 1,547,450 | 1,545,880 |
| | United States Treasury Bill | 1.298%–1.378% | 4/5/18 | 526,817 | 526,133 |
| | United States Treasury Bill | 1.425%–1.564% | 4/12/18 | 2,155,068 | 2,151,458 |
| | United States Treasury Bill | 1.435%–1.516% | 4/19/18 | 2,338,570 | 2,333,973 |
| | United States Treasury Bill | 1.422%–1.435% | 4/26/18 | 2,023,860 | 2,019,359 |
| | United States Treasury Bill | 1.264%–1.430% | 5/3/18 | 1,040,000 | 1,037,615 |
| | United States Treasury Bill | 1.491%–1.536% | 5/10/18 | 987,575 | 984,722 |
| | United States Treasury Bill | 1.576% | 5/17/18 | 1,778,819 | 1,772,846 |
| | United States Treasury Bill | 1.643% | 5/24/18 | 800,000 | 796,946 |
| | United States Treasury Bill | 1.445%–1.652% | 5/31/18 | 1,599,163 | 1,592,837 |
| | United States Treasury Bill | 1.461% | 6/14/18 | 10,046 | 10,004 |
| | United States Treasury Bill | 1.853% | 8/23/18 | 300,000 | 297,322 |
| 2 | United States Treasury Floating | | | | |
| | Rate Note | 1.842% | 4/30/18 | 15,000 | 15,007 |
| 2 | United States Treasury Floating | | | | |
| | Rate Note | 1.822% | 10/31/18 | 899,825 | 899,831 |
| 2 | United States Treasury Floating | | | | |
| | Rate Note | 1.652% | 1/31/20 | 500,000 | 500,000 |
| Total U.S. Government and Agency Obligations (Cost $16,906,741) | | 16,906,741 |
| Total Investments (102.4%) (Cost $16,906,741) | | | 16,906,741 |
46
| |
| Treasury Money Market Fund | |
| |
| |
| |
| |
| | Amount |
| | ($000) |
| Other Assets and Liabilities (-2.4%) | |
| Other Assets | |
| Investment in Vanguard | 836 |
| Receivables for Investment Securities Sold | 602,101 |
| Receivables for Accrued Income | 1,886 |
| Receivables for Capital Shares Issued | 51,376 |
| Other Assets | 3,993 |
| Total Other Assets | 660,192 |
| Liabilities | |
| Payables for Investment Securities Purchased | (1,024,904) |
| Payables for Capital Shares Redeemed | (33,657) |
| Payables for Distributions | (562) |
| Payables to Vanguard | (604) |
| Total Liabilities | (1,059,727) |
| Net Assets (100%) | |
| Applicable to 16,504,503,065 outstanding $.001 par value shares of | |
| beneficial interest (unlimited authorization) | 16,507,206 |
| Net Asset Value Per Share | $1.00 |
| |
| At February 28, 2018, net assets consisted of: | |
| | Amount |
| | ($000) |
| Paid-in Capital | 16,507,543 |
| Undistributed Net Investment Income | 16 |
| Accumulated Net Realized Losses | (353) |
| Net Assets | 16,507,206 |
• See Note A in Notes to Financial Statements.
1 Represents annualized yield at date of purchase for discount securities, and coupon for coupon-bearing securities.
2 Adjustable-rate security based upon 3-month U.S. Treasury Bill Auction High Money Market Yield plus spread.
See accompanying Notes, which are an integral part of the Financial Statements.
47
| |
| Treasury Money Market Fund | |
| |
| |
| Statement of Operations | |
| |
| | Six Months Ended |
| | February28,2018 |
| | ($000) |
| Investment Income | |
| Income | |
| Interest | 94,609 |
| Total Income | 94,609 |
| Expenses | |
| The Vanguard Group—Note B | |
| Investment Advisory Services | 304 |
| Management and Administrative | 5,012 |
| Marketing and Distribution | 1,569 |
| Custodian Fees | 75 |
| Shareholders’ Reports and Proxy | 100 |
| Trustees’ Fees and Expenses | 6 |
| Total Expenses | 7,066 |
| Net Investment Income | 87,543 |
| Realized Net Gain (Loss) on Investment Securities Sold | 79 |
| Net Increase (Decrease) in Net Assets Resulting from Operations | 87,622 |
See accompanying Notes, which are an integral part of the Financial Statements.
48
| | |
| Treasury Money Market Fund | | |
| |
| |
| Statement of Changes in Net Assets | | |
| |
| | Six Months Ended | Year Ended |
| | February 28, | August 31, |
| | 2018 | 2017 |
| | ($000) | ($000) |
| Increase (Decrease) in Net Assets | | |
| Operations | | |
| Net Investment Income | 87,543 | 80,882 |
| Realized Net Gain (Loss) | 79 | (407) |
| Net Increase (Decrease) in Net Assets Resulting from Operations | 87,622 | 80,475 |
| Distributions | | |
| Net Investment Income | (87,536) | (80,873) |
| Realized Capital Gain | — | — |
| Total Distributions | (87,536) | (80,873) |
| Capital Share Transactions (at $1.00 per share) | | |
| Issued | 4,924,461 | 9,585,836 |
| Issued in Lieu of Cash Distributions | 84,508 | 78,567 |
| Redeemed | (4,140,602) | (6,828,339) |
| Net Increase (Decrease) from Capital Share Transactions | 868,367 | 2,836,064 |
| Total Increase (Decrease) | 868,453 | 2,835,666 |
| Net Assets | | |
| Beginning of Period | 15,638,753 | 12,803,087 |
| End of Period1 | 16,507,206 | 15,638,753 |
1 Net Assets—End of Period includes undistributed (overdistributed) net investment income of $16,000 and $9,000.
See accompanying Notes, which are an integral part of the Financial Statements.
49
| | | | | | | |
| Treasury Money Market Fund | | | | | | | |
| |
| |
| Financial Highlights | | | | | | |
| |
| |
| | Six Months | | | | | |
| | | Ended | | | | | |
| For a Share Outstanding | February 28, | Year Ended August 31, |
| Throughout Each Period | | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 |
| Net Asset Value, Beginning of Period | $1.00 | $1.00 | $1.00 | $1.00 | $1.00 | $1.00 |
| Investment Operations | | | | | | | |
| Net Investment Income | | . 0061 | .0051 | .0017 | .0001 | .0001 | .0002 |
| Net Realized and Unrealized Gain (Loss) | | | | | | |
| on Investments | | — | — | — | — | — | — |
| Total from Investment Operations | .006 | .005 | .0017 | .0001 | .0001 | .0002 |
| Distributions | | | | | | | |
| Dividends from Net Investment Income | (.006) | (.005) | (.0017) | (.0001) | (.0001) | (.0002) |
| Distributions from Realized Capital Gains | — | — | — | — | (.0000)2 | — |
| Total Distributions | | (.006) | (.005) | (.0017) | (.0001) | (.0001) | (0002) |
| Net Asset Value, End of Period | | $1.00 | $1.00 | $1.00 | $1.00 | $1.00 | $1.00 |
| |
| Total Return3 | | 0.55% | 0.54% | 0.17% | 0.01% | 0.01% | 0.02% |
| |
| Ratios/Supplemental Data | | | | | | | |
| Net Assets, End of Period (Millions) | $16,507 | $15,639 | $12,803 | $9,388 | $10,365 | $11,660 |
| Ratio of Total Expenses to | | | | | | | |
| Average Net Assets | | 0.09% | 0.09% | 0.09%4 | 0.04% 4 | 0.05% 4 | 0.08% 4 |
| Ratio of Net Investment Income to | | | | | | |
| Average Net Assets | | 1.12% | 0.55% | 0.18% | 0.01% | 0.01% | 0.02% |
The expense ratio and net investment income ratio for the current period have been annualized.
1 Calculated based on average shares outstanding.
2 Distributions from realized capital gains were less than $.0001 per share.
3 Total returns do not include account service fees that may have applied in the periods shown. Fund prospectuses provide
information about any applicable account service fees.
4 The ratio of total expenses to average net assets before an expense reduction was 0.09% for 2016, 0.09% for 2015, 0.09% for
2014, and 0.09% for 2013. For the six months ended February 28, 2018, and the year ended August 31, 2017, there were no expense
reductions. See Note B in the Notes to Financial Statements.
See accompanying Notes, which are an integral part of the Financial Statements.
50
Treasury Money Market Fund
Notes to Financial Statements
Vanguard Treasury Money Market Fund is registered under the Investment Company Act of 1940 as an open-end investment company, or mutual fund. The fund invests in short-term debt instruments backed by the full faith and credit of the U.S. government.
A. The following significant accounting policies conform to generally accepted accounting principles for U.S. investment companies. The fund consistently follows such policies in preparing its financial statements.
1. Security Valuation: Securities are valued as of the close of trading on the New York Stock Exchange (generally 4 p.m., Eastern time) on the valuation date. Securities are valued at amortized cost, which approximates market value.
2. Federal Income Taxes: The fund intends to continue to qualify as a regulated investment company and distribute all of its taxable income. Management has analyzed the fund’s tax positions taken for all open federal income tax years (August 31, 2014–2017), and for the period ended February 28, 2018, and has concluded that no provision for federal income tax is required in the fund’s financial statements.
3. Distributions: Distributions from net investment income are declared daily and paid on the first business day of the following month.
4. Credit Facility: The fund and certain other funds managed by The Vanguard Group (“Vanguard”) participate in a $3.1 billion committed credit facility provided by a syndicate of lenders pursuant to a credit agreement that may be renewed annually; each fund is individually liable for its borrowings, if any, under the credit facility. Borrowings may be utilized for temporary and emergency purposes, and are subject to the fund’s regulatory and contractual borrowing restrictions. The participating funds are charged administrative fees and an annual commitment fee of 0.10% of the undrawn amount of the facility; these fees are allocated to the funds based on a method approved by the fund’s board of trustees and included in Management and Administrative expenses on the fund’s Statement of Operations. Any borrowings under this facility bear interest at a rate based upon the higher of the one-month London Interbank Offered Rate, federal funds effective rate, or overnight bank funding rate plus an agreed-upon spread.
The fund had no borrowings outstanding at February 28, 2018, or at any time during the period then ended.
5. Other: Interest income is accrued daily. Premiums and discounts on debt securities purchased are amortized and accreted, respectively, to interest income over the lives of the respective securities. Security transactions are accounted for on the date securities are bought or sold. Costs used to determine realized gains (losses) on the sale of investment securities are those of the specific securities sold.
B. In accordance with the terms of a Funds’ Service Agreement (the “FSA”) between Vanguard and the fund, Vanguard furnishes to the fund investment advisory, corporate management, administrative, marketing, and distribution services at Vanguard’s cost of operations (as defined by the FSA). These costs of operations are allocated to the fund based on methods and guidelines approved by the board of trustees. Vanguard does not require reimbursement in the current period for certain costs of operations (such as deferred compensation/benefits and risk/insurance costs); the fund’s liability for these costs of operations is included in Payables to Vanguard on the Statement of Net Assets. All other costs of operations payable to Vanguard are generally settled twice a month.
51
Treasury Money Market Fund
Upon the request of Vanguard, the fund may invest up to 0.40% of its net assets as capital in Vanguard. At February 28, 2018, the fund had contributed to Vanguard capital in the amount of $836,000, representing 0.01% of the fund’s net assets and 0.33% of Vanguard’s capitalization. The fund’s trustees and officers are also directors and employees, respectively, of Vanguard.
Vanguard and the board of trustees have agreed to temporarily limit certain net operating expenses in excess of the fund’s daily yield in order to maintain a zero or positive yield for the fund. Vanguard and the board of trustees may terminate the temporary expense limitation at any time. The fund is not obligated to repay this amount to Vanguard. For the six months ended February 28, 2018, the fund did not receive an expense reduction from Vanguard.
C. Various inputs may be used to determine the value of the fund’s investments. These inputs are summarized in three broad levels for financial statement purposes. The inputs or methodologies used to value securities are not necessarily an indication of the risk associated with investing in those securities.
Level 1—Quoted prices in active markets for identical securities.
Level 2—Other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.).
Level 3—Significant unobservable inputs (including the fund’s own assumptions used to determine
the fair value of investments). Any investments valued with significant unobservable inputs are
noted on the Statement of Net Assets.
At February 28, 2018, 100% of the market value of the fund’s investments was determined using amortized cost, in accordance with rules under the Investment Company Act of 1940. Amortized cost approximates the current fair value of a security, but since the value is not obtained from a quoted price in an active market, securities valued at amortized cost are considered to be valued using Level 2 inputs.
D. Management has determined that no material events or transactions occurred subsequent to February 28, 2018, that would require recognition or disclosure in these financial statements.
52
About Your Fund’s Expenses
As a shareholder of the fund, you incur ongoing costs, which include costs for portfolio management, administrative services, and shareholder reports (like this one), among others. Operating expenses, which are deducted from a fund’s gross income, directly reduce the investment return of the fund.
A fund’s expenses are expressed as a percentage of its average net assets. This figure is known as the expense ratio. The following examples are intended to help you understand the ongoing costs (in dollars) of investing in your fund and to compare these costs with those of other mutual funds. The examples are based on an investment of $1,000 made at the beginning of the period shown and held for the entire period.
The accompanying table illustrates your fund’s costs in two ways:
• Based on actual fund return. This section helps you to estimate the actual expenses that you paid over the period. The ”Ending Account Value“ shown is derived from the fund‘s actual return, and the third column shows the dollar amount that would have been paid by an investor who started with $1,000 in the fund. You may use the information here, together with the amount you invested, to estimate the expenses that you paid over the period.
To do so, simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number given for your fund under the heading ”Expenses Paid During Period.“
• Based on hypothetical 5% yearly return. This section is intended to help you compare your fund‘s costs with those of other mutual funds. It assumes that the fund had a yearly return of 5% before expenses, but that the expense ratio is unchanged. In this case—because the return used is not the fund’s actual return—the results do not apply to your investment. The example is useful in making comparisons because the Securities and Exchange Commission requires all mutual funds to calculate expenses based on a 5% return. You can assess your fund’s costs by comparing this hypothetical example with the hypothetical examples that appear in shareholder reports of other funds.
Note that the expenses shown in the table are meant to highlight and help you compare ongoing costs only and do not reflect transaction costs incurred by the fund for buying and selling securities. Further, the expenses do not include any purchase, redemption, or account service fees described in the fund prospectus. If such fees were applied to your account, your costs would be higher. Your fund does not carry a “sales load.”
The calculations assume no shares were bought or sold during the period. Your actual costs may have been higher or lower, depending on the amount of your investment and the timing of any purchases or redemptions.
You can find more information about the fund’s expenses, including annual expense ratios, in the Financial Statements section of this report. For additional information on operating expenses and other shareholder costs, please refer to your fund’s current prospectus.
53
| | | |
| Six Months Ended February 28, 2018 | | | |
| | Beginning | Ending | Expenses |
| | Account Value | Account Value | Paid During |
| | 8/31/2017 | 2/28/2018 | Period |
| Based on Actual Fund Return | | | |
| Prime Money Market Fund | | | |
| Investor Shares | $1,000.00 | $1,006.30 | $0.80 |
| Admiral Shares | 1,000.00 | 1,006.60 | 0.50 |
| Federal Money Market Fund | $1,000.00 | $1,005.56 | $0.55 |
| Treasury Money Market Fund | $1,000.00 | $1,005.54 | $0.45 |
| Based on Hypothetical 5% Yearly Return | | | |
| Prime Money Market Fund | | | |
| Investor Shares | $1,000.00 | $1,024.00 | $0.80 |
| Admiral Shares | 1,000.00 | 1,024.30 | 0.50 |
| Federal Money Market Fund | $1,000.00 | $1,024.25 | $0.55 |
| Treasury Money Market Fund | $1,000.00 | $1,024.35 | $0.45 |
The calculations are based on expenses incurred in the most recent six-month period. The funds’ annualized six-month expense ratios for
the period are: for the Prime Money Market Fund, 0.16% for Investor Shares and 0.10% for Admiral Shares; for the Federal Money Market
Fund, 0.11%; and for the Treasury Money Market Fund, 0.09%. The dollar amounts shown as “Expenses Paid” are equal to the annualized
expense ratio multiplied by the average account value over the period, multiplied by the number of days in the most recent six-month
period, then divided by the number of days in the most recent 12-month period (181/365).
54
Glossary
SEC Yields. A money market fund’s 7-day SEC yield is calculated by annualizing its income distributions for the previous seven days, as required by the U.S. Securities and Exchange Commission.
Average Weighted Maturity. The average length of time until fixed income securities held by a fund reach maturity and are repaid. The figure reflects the proportion of fund assets represented by each security.
Expense Ratio. A fund’s total annual operating expenses expressed as a percentage of the fund’s average net assets. The expense ratio includes management and administrative expenses, but does not include the transaction costs of buying and selling portfolio securities.
Inception Date. The date on which the assets of a fund (or one of its share classes) are first invested in accordance with the fund’s investment objective. For funds with a subscription period, the inception date is the day after that period ends. Investment performance is measured from the inception date.
55
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The People Who Govern Your Fund
The trustees of your mutual fund are there to see that the fund is operated and managed in your best interests since, as a shareholder, you are a part owner of the fund. Your fund’s trustees also serve on the board of directors of The Vanguard Group, Inc., which is owned by the Vanguard funds and provides services to them on an at-cost basis.
A majority of Vanguard’s board members are independent, meaning that they have no affiliation with Vanguard or the funds they oversee, apart from the sizable personal investments they have made as private individuals. The independent board members have distinguished backgrounds in business, academia, and public service. Each of the trustees and executive officers oversees 208 Vanguard funds.
Information for each trustee and executive officer of the fund appears below. The mailing address of the trustees and officers is P.O. Box 876, Valley Forge, PA 19482. More information about the trustees is in the Statement of Additional Information, which can be obtained, without charge, by contacting Vanguard at 800-662-7447, or online at vanguard.com.
Interested Trustees1
F. William McNabb III
Born in 1957. Trustee since July 2009. Principal occupation(s) during the past five years and other experience: chairman of the board (January 2010–present) of Vanguard and of each of the investment companies served by Vanguard, trustee (2009–present) of each of the investment companies served by Vanguard, and director (2008–present) of Vanguard. Chief executive officer and president (2008–2017) of Vanguard and each of the investment companies served by Vanguard, managing director (1995–2008) of Vanguard, and director (1997–2018) of Vanguard Marketing Corporation. Director (2018–present) of UnitedHealth Group.
Mortimer J. Buckley
Born in 1969. Trustee since January 2018. Principal occupation(s) during the past five years and other experience: chief executive officer (January 2018–present) of Vanguard; chief executive officer, president, and trustee (January 2018–present) of each of the investment companies served by Vanguard; president and director (2017–present) of Vanguard; and president (February 2018–present) of Vanguard Marketing Corporation. Chief investment officer (2013–2017), managing director (2002–2017), head of the Retail Investor Group (2006–2012), and chief information officer (2001–2006) of Vanguard. Chairman of the board (2011–2017) of the Children’s Hospital of Philadelphia.
Independent Trustees
Emerson U. Fullwood
Born in 1948. Trustee since January 2008. Principal occupation(s) during the past five years and other experience: executive chief staff and marketing officer for North America and corporate vice president (retired 2008) of Xerox Corporation (document management products and services). Former president of the Worldwide Channels Group, Latin America, and Worldwide Customer Service and executive chief staff officer of Developing Markets of Xerox. Executive in residence and 2009–2010 Distinguished Minett Professor at the Rochester Institute of Technology. Lead director of SPX FLOW, Inc. (multi-industry manufacturing). Director of the University of Rochester Medical Center, the Monroe Community College Foundation, the United Way of Rochester, North Carolina A&T University, and Roberts Wesleyan College. Trustee of the University of Rochester.
Amy Gutmann
Born in 1949. Trustee since June 2006. Principal occupation(s) during the past five years and other experience: president (2004–present) of the University of Pennsylvania. Christopher H. Browne Distinguished Professor of Political Science, School of Arts and Sciences, and professor of communication, Annenberg School for Communication, with secondary faculty appointments in the Department of Philosophy, School of Arts and Sciences, and at the Graduate School of Education, University of Pennsylvania. Trustee of the National Constitution Center.
1 Mr. McNabb and Mr. Buckley are considered “interested persons,” as defined in the Investment Company Act of 1940, because they are officers of the Vanguard funds.
JoAnn Heffernan Heisen
Born in 1950. Trustee since July 1998. Principal occupation(s) during the past five years and other experience: corporate vice president of Johnson & Johnson (pharmaceuticals/medical devices/consumer products) and member of its executive committee (1997–2008). Chief global diversity officer (retired 2008), vice president and chief information officer (1997–2006), controller (1995–1997), treasurer (1991–1995), and assistant treasurer (1989–1991) of Johnson & Johnson. Director of Skytop Lodge Corporation (hotels) and the Robert Wood Johnson Foundation. Member of the advisory board of the Institute for Women’s Leadership at Rutgers University.
F. Joseph Loughrey
Born in 1949. Trustee since October 2009. Principal occupation(s) during the past five years and other experience: president and chief operating officer (retired 2009) and vice chairman of the board (2008–2009) of Cummins Inc. (industrial machinery). Chairman of the board of Hillenbrand, Inc. (specialized consumer services), Oxfam America, and the Lumina Foundation for Education. Director of the V Foundation for Cancer Research. Member of the advisory council for the College of Arts and Letters and chair of the advisory board to the Kellogg Institute for International Studies, both at the University of Notre Dame.
Mark Loughridge
Born in 1953. Trustee since March 2012. Principal occupation(s) during the past five years and other experience: senior vice president and chief financial officer (retired 2013) of IBM (information technology services). Fiduciary member of IBM’s Retirement Plan Committee (2004–2013), senior vice president and general manager (2002–2004) of IBM Global Financing, vice president and controller (1998–2002) of IBM, and a variety of other prior management roles at IBM. Member of the Council on Chicago Booth.
Scott C. Malpass
Born in 1962. Trustee since March 2012. Principal occupation(s) during the past five years and other experience: chief investment officer (1989–present) and vice president (1996–present) of the University of Notre Dame. Assistant professor of finance at the Mendoza College of Business, University of Notre Dame, and member of the Notre Dame 403(b) Investment Committee. Chairman of the board of TIFF Advisory Services, Inc. Member of the board of Catholic Investment Services, Inc. (investment advisors), the board of advisors for Spruceview Capital Partners, and the board of superintendence of the Institute for the Works of Religion.
Deanna Mulligan
Born in 1963. Trustee since January 2018. Principal occupation(s) during the past five years and other experience: president (2010–present) and chief executive officer (2011–present) of The Guardian Life Insurance Company of America. Chief operating officer (2010–2011) and executive vice president (2008–2010) of Individual Life and Disability of The Guardian Life Insurance Company of America. Member of the board of The Guardian Life Insurance Company of America, the American Council of Life Insurers, the Partnership for New York City (business leadership), and the Committee Encouraging Corporate Philanthropy. Trustee of the Economic Club of New York and the Bruce Museum (arts and science). Member of the Advisory Council for the Stanford Graduate School of Business.
André F. Perold
Born in 1952. Trustee since December 2004. Principal occupation(s) during the past five years and other experience: George Gund Professor of Finance and Banking, Emeritus at the Harvard Business School (retired 2011). Chief investment officer and co-managing partner of HighVista Strategies LLC (private investment firm). Overseer of the Museum of Fine Arts Boston.
Sarah Bloom Raskin
Born in 1961. Trustee since January 2018. Principal occupation(s) during the past five years and other experience: deputy secretary (2014–2017) of the United States Department of the Treasury. Governor (2010–2014) of the Federal Reserve Board. Commissioner (2007–2010) of financial regulation for the State of Maryland. Member of the board of directors (2012–2014) of Neighborhood Reinvestment Corporation. Director of i(x) Investments, LLC.
Peter F. Volanakis
Born in 1955. Trustee since July 2009. Principal occupation(s) during the past five years and other experience: president and chief operating officer (retired 2010) of Corning Incorporated (communications equipment) and director of Corning Incorporated (2000–2010) and Dow Corning (2001–2010). Director (2012) of SPX Corporation (multi-industry manufacturing). Overseer of the Amos Tuck School of Business Administration, Dartmouth College (2001–2013). Chairman of the board of trustees of Colby-Sawyer College. Member of the Board of Hypertherm Inc. (industrial cutting systems, software, and consumables).
Executive Officers
Glenn Booraem
Born in 1967. Principal occupation(s) during the past five years and other experience: principal of Vanguard. Investment stewardship officer (2017–present), treasurer (2015–2017), controller (2010–2015), and assistant controller (2001–2010) of each of the investment companies served by Vanguard.
Christine M. Buchanan
Born in 1970. Principal occupation(s) during the past five years and other experience: principal of Vanguard and global head of Fund Administration at Vanguard. Treasurer (2017–present) of each of the investment companies served by Vanguard. Partner (2005–2017) at KPMG LLP (audit, tax, and advisory services).
Brian Dvorak
Born in 1973. Principal occupation(s) during the past five years and other experience: principal of Vanguard. Chief compliance officer (2017–present) of Vanguard and each of the investment companies served by Vanguard. Assistant vice president (2017–present) of Vanguard Marketing Corporation. Vice president and director of Enterprise Risk Management (2011–2013) at Oppenheimer Funds, Inc.
Thomas J. Higgins
Born in 1957. Principal occupation(s) during the past five years and other experience: principal of Vanguard. Chief financial officer (2008–present) and treasurer (1998–2008) of each of the investment companies served by Vanguard.
Peter Mahoney
Born in 1974. Principal occupation(s) during the past five years and other experience: principal of Vanguard. Controller (2015–present) of each of the investment companies served by Vanguard. Head of International Fund Services (2008–2014) at Vanguard.
Anne E. Robinson
Born in 1970. Principal occupation(s) during the past five years and other experience: general counsel (2016–present) of Vanguard. Secretary (2016–present) of Vanguard and of each of the investment companies served by Vanguard. Managing director (2016–present) of Vanguard. Director and senior vice president (2016–2018) of Vanguard Marketing Corporation. Managing director and general counsel of Global Cards and Consumer Services (2014–2016) at Citigroup. Counsel (2003–2014) at American Express.
Michael Rollings
Born in 1963. Principal occupation(s) during the past five years and other experience: finance director (2017–present) and treasurer (2017) of each of the investment companies served by Vanguard. Managing director (2016–present) of Vanguard. Chief financial officer (2016–present) of Vanguard. Director (2016–present) of Vanguard Marketing Corporation. Executive vice president and chief financial officer (2006–2016) of MassMutual Financial Group.
| |
| Vanguard Senior Management Team |
| |
| Mortimer J. Buckley | James M. Norris |
| Gregory Davis | Thomas M. Rampulla |
| John James | Karin A. Risi |
| Martha G. King | Anne E. Robinson |
| John T. Marcante | Michael Rollings |
| Chris D. McIsaac | |
| |
| |
| Chairman Emeritus and Senior Advisor |
| |
| John J. Brennan | |
| Chairman, 1996–2009 | |
| Chief Executive Officer and President, 1996–2008 |
| |
| |
| Founder | |
| |
| John C. Bogle | |
| Chairman and Chief Executive Officer, 1974–1996 |
|  |
| | P.O. Box 2600 |
| | Valley Forge, PA 19482-2600 |
| |
| |
| |
| Connect with Vanguard® > vanguard.com |
| |
| |
| |
| Fund Information > 800-662-7447 | Source for Bloomberg Barclays indexes: Bloomberg |
| Direct Investor Account Services > 800-662-2739 | Index Services Limited. Copyright 2018, Bloomberg. All |
| | rights reserved. |
| Institutional Investor Services > 800-523-1036 | |
| Text Telephone for People | |
| Who Are Deaf or Hard of Hearing > 800-749-7273 | |
| |
| This material may be used in conjunction | |
| with the offering of shares of any Vanguard | |
| fund only if preceded or accompanied by | |
| the fund’s current prospectus. | |
| |
| All comparative mutual fund data are from Lipper, a | |
| Thomson Reuters Company, or Morningstar, Inc., unless | |
| otherwise noted. | |
| |
| You can obtain a free copy of Vanguard’s proxy voting | |
| guidelines by visiting vanguard.com/proxyreporting or by | |
| calling Vanguard at 800-662-2739. The guidelines are | |
| also available from the SEC’s website, sec.gov. In | |
| addition, you may obtain a free report on how your fund | |
| voted the proxies for securities it owned during the 12 | |
| months ended June 30. To get the report, visit either | |
| vanguard.com/proxyreporting or sec.gov. | |
| |
| You can review and copy information about your fund at | |
| the SEC’s Public Reference Room in Washington, D.C. To | |
| find out more about this public service, call the SEC at | |
| 202-551-8090. Information about your fund is also | |
| available on the SEC’s website, and you can receive | |
| copies of this information, for a fee, by sending a | |
| request in either of two ways: via email addressed to | |
| publicinfo@sec.gov or via regular mail addressed to the | |
| Public Reference Section, Securities and Exchange | |
| Commission, Washington, DC 20549-1520. | |
| | © 2018 The Vanguard Group, Inc. |
| | All rights reserved. |
| | Vanguard Marketing Corporation, Distributor. |
| |
| | Q302 042018 |
Item 2: Code of Ethics.
Not Applicable.
Item 3: Audit Committee Financial Expert.
Not Applicable.
Item 4: Principal Accountant Fees and Services.
(a) Audit Fees.
Not Applicable.
Item 5: Audit Committee of Listed Registrants.
Not Applicable.
Item 6: Investments.
Not Applicable.
Item 7: Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment
Companies.
Not Applicable.
Item 8: Portfolio Managers of Closed-End Management Investment Companies.
Not Applicable.
Item 9: Purchase of Equity Securities by Closed-End Management Investment Company and
Affiliated Purchasers.
Not Applicable.
Item 10: Submission of Matters to a Vote of Security Holders.
Not Applicable.
Item 11: Controls and Procedures.
(a) Disclosure Controls and Procedures. The Principal Executive and Financial Officers concluded that the Registrant’s Disclosure Controls and Procedures are effective based on their evaluation of the Disclosure Controls and Procedures as of a date within 90 days of the filing date of this report.
(b) Internal Control Over Financial Reporting. There were no significant changes in Registrant’s Internal Control Over Financial Reporting or in other factors that could significantly affect this control subsequent to the date of the evaluation, including any corrective actions with regard to significant deficiencies and material weaknesses.
Item 12: Disclosure of Securities Lending Activities for Closed-End Management
Investment Companies.
Not Applicable.
Item 13: Exhibits.
(a) Certifications.
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
| |
| | VANGUARD MONEY MARKET RESERVES |
| |
| |
| BY: | /s/ MORTIMER J. BUCKLEY* |
| | MORTIMER J. BUCKLEY |
| | CHIEF EXECUTIVE OFFICER |
| |
| Date: April 17, 2018 |
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
| |
| | VANGUARD MONEY MARKET RESERVES |
| |
| BY: | /s/ MORTIMER J. BUCKLEY* |
| | MORTIMER J. BUCKLEY |
| | CHIEF EXECUTIVE OFFICER |
| Date: April 17, 2018 |
| | VANGUARD MONEY MARKET RESERVES |
| |
| BY: | /s/ THOMAS J. HIGGINS* |
| | THOMAS J. HIGGINS |
| | CHIEF FINANCIAL OFFICER |
| Date: April 17, 2018 |
* By: /s/ Anne E. Robinson
Anne E. Robinson, pursuant to a Power of Attorney filed on January 18, 2018 see file Number
33-32216, Incorporated by Reference.
