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: 811-00834
Name of Registrant: | Vanguard Windsor Funds |
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: October 31
Date of reporting period: November 1, 2019—October 31, 2020
Item 1: Reports to Shareholders
Your Fund’s Performance at a Glance | 1 |
Advisors' Report | 2 |
About Your Fund’s Expenses | 7 |
Performance Summary | 9 |
Financial Statements | 11 |
• | Vanguard Windsor Fund returned –5.64% for Investor Shares and –5.55% for Admiral Shares for the 12 months ended October 31, 2020. The fund proved more resilient than its benchmark, the Russell 1000 Value Index, which returned –7.57%. |
• | The period was marked by the global spread of COVID-19 and efforts to contain it. However, responses from policymakers, the start of trials for vaccines and treatments, and the easing of some pandemic-related restrictions eventually lifted investor sentiment. |
• | Growth stocks recorded double-digit gains—trouncing their loss-making value counterparts and extending a decade-long run of outperformance. Large-capitalization stocks surpassed mid- and small-caps. |
• | Vanguard Capital Value Fund was merged into the Windsor Fund on July 24, 2020. |
• | Relative to the benchmark, stock selection in the real estate and communication services sectors benefited returns most. The advisors’ overweight allocation to information technology also helped. Selection in consumer discretionary hurt relative performance most. Underweight allocations to industrials and consumer staples also detracted. |
Average Annual Total Returns Periods Ended October 31, 2020 | |||
One Year | Three Years | Five Years | |
Stocks | |||
Russell 1000 Index (Large-caps) | 10.87% | 10.63% | 11.79% |
Russell 2000 Index (Small-caps) | -0.14 | 2.19 | 7.27 |
Russell 3000 Index (Broad U.S. market) | 10.15 | 10.04 | 11.48 |
FTSE All-World ex US Index (International) | -2.17 | 0.13 | 4.52 |
Bonds | |||
Bloomberg Barclays U.S. Aggregate Bond Index (Broad taxable market) | 6.19% | 5.06% | 4.08% |
Bloomberg Barclays Municipal Bond Index (Broad tax-exempt market) | 3.59 | 4.09 | 3.70 |
FTSE Three-Month U.S. Treasury Bill Index | 0.86 | 1.62 | 1.15 |
CPI | |||
Consumer Price Index | 1.18% | 1.82% | 1.83% |
Fund Assets Managed | |||
Investment Advisor | % | $ Million | Investment Strategy |
Wellington Management Company LLP | 70 | 12,147 | Seeks to provide long-term total returns above both the S&P 500 and value-oriented indexes over a complete market cycle through bottom-up, fundamentally driven stock selection focused on undervalued securities. |
Pzena Investment Management, LLC | 28 | 4,855 | Uses a fundamental, bottom-up, deep-value-oriented investment strategy. Seeks to buy good businesses at low prices, focusing exclusively on companies that are underperforming their historically demonstrated earnings power. |
Cash Investments | 2 | 263 | These short-term reserves are invested by Vanguard in equity index products to simulate investment in stocks. Each advisor also may maintain a modest cash position. |
• | 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. |
• | 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. |
Six Months Ended October 31, 2020 | |||
Windsor Fund | Beginning Account Value 4/30/2020 | Ending Account Value 10/31/2020 | Expenses Paid During Period |
Based on Actual Fund Return | |||
Investor Shares | $1,000.00 | $1,090.29 | $1.47 |
Admiral™ Shares | 1,000.00 | 1,091.11 | 0.95 |
Based on Hypothetical 5% Yearly Return | |||
Investor Shares | $1,000.00 | $1,023.73 | $1.42 |
Admiral Shares | 1,000.00 | 1,024.23 | 0.92 |
Average Annual Total Returns Periods Ended October 31, 2020 | |||||
One Year | Five Years | Ten Years | Final Value of a $10,000 Investment | ||
Windsor Fund Investor Shares | -5.64% | 5.48% | 9.45% | $24,667 | |
Russell 1000 Value Index | -7.57 | 5.82 | 9.48 | 24,732 | |
Dow Jones U.S. Total Stock Market Float Adjusted Index | 9.99 | 11.41 | 12.75 | 33,211 |
One Year | Five Year | Ten Years | Final Value of a $50,000 Investment | ||
Windsor Fund Admiral Shares | -5.55% | 5.59% | 9.56% | $124,646 | |
Russell 1000 Value Index | -7.57 | 5.82 | 9.48 | 123,662 | |
Dow Jones U.S. Total Stock Market Float Adjusted Index | 9.99 | 11.41 | 12.75 | 166,054 |
Communication Services | 5.9% |
Consumer Discretionary | 11.1 |
Consumer Staples | 5.8 |
Energy | 4.6 |
Financials | 21.8 |
Health Care | 12.2 |
Industrials | 8.3 |
Information Technology | 14.4 |
Materials | 4.5 |
Real Estate | 4.8 |
Utilities | 6.6 |
Other | 0.0 |
Shares | Market Value• ($000) | ||
Common Stocks (97.0%) | |||
Communication Services (5.7%) | |||
Comcast Corp. Class A | 8,926,912 | 377,073 | |
* | T-Mobile US Inc. | 3,248,733 | 355,963 |
* | Alphabet Inc. Class A | 91,245 | 147,462 |
* | Electronic Arts Inc. | 720,545 | 86,343 |
Verizon Communications Inc. | 220,056 | 12,541 | |
979,382 | |||
Consumer Discretionary (10.8%) | |||
General Motors Co. | 7,152,814 | 246,987 | |
* | Dollar Tree Inc. | 2,642,464 | 238,667 |
Lear Corp. | 1,463,465 | 176,801 | |
Ford Motor Co. | 22,140,080 | 171,143 | |
Gildan Activewear Inc. | 7,789,791 | 161,794 | |
Compass Group plc | 11,046,445 | 151,201 | |
VF Corp. | 2,023,982 | 136,012 | |
PVH Corp. | 1,974,367 | 115,086 | |
Newell Brands Inc. | 6,105,453 | 107,822 | |
TJX Cos. Inc. | 2,119,200 | 107,655 | |
Las Vegas Sands Corp. | 2,206,590 | 106,049 | |
* | Mohawk Industries Inc. | 922,409 | 95,183 |
* | Booking Holdings Inc. | 26,973 | 43,764 |
Carnival Corp. | 504,655 | 6,919 | |
1,865,083 | |||
Consumer Staples (5.7%) | |||
Philip Morris International Inc. | 3,779,079 | 268,390 | |
Keurig Dr Pepper Inc. | 9,035,332 | 243,050 | |
Tyson Foods Inc. Class A | 3,573,932 | 204,536 | |
Sysco Corp. | 2,286,740 | 126,480 | |
Archer-Daniels-Midland Co. | 2,148,352 | 99,340 | |
Kellogg Co. | 570,756 | 35,895 | |
977,691 | |||
Energy (4.5%) | |||
Halliburton Co. | 14,854,715 | 179,148 | |
Canadian Natural Resources Ltd. | 8,304,896 | 132,463 | |
Concho Resources Inc. | 2,198,837 | 91,274 | |
Baker Hughes Co. Class A | 5,056,841 | 74,689 | |
1 | Royal Dutch Shell plc Class A ADR | 2,900,751 | 74,114 |
National Oilwell Varco Inc. | 8,378,161 | 70,377 |
Shares | Market Value• ($000) | ||
Exxon Mobil Corp. | 2,049,779 | 66,864 | |
Diamondback Energy Inc. | 2,326,446 | 60,394 | |
Cenovus Energy Inc. | 6,621,254 | 21,718 | |
771,041 | |||
Financials (21.1%) | |||
Bank of America Corp. | 15,645,825 | 370,806 | |
Charles Schwab Corp. | 8,839,427 | 363,389 | |
MetLife Inc. | 7,693,304 | 291,191 | |
Chubb Ltd. | 2,106,175 | 273,613 | |
Raymond James Financial Inc. | 3,303,318 | 252,506 | |
Equitable Holdings Inc. | 10,223,492 | 219,703 | |
M&T Bank Corp. | 1,673,982 | 173,391 | |
* | Athene Holding Ltd. Class A | 4,980,510 | 159,775 |
Capital One Financial Corp. | 2,094,500 | 153,066 | |
American International Group Inc. | 4,745,297 | 149,429 | |
Wells Fargo & Co. | 5,873,199 | 125,980 | |
Zions Bancorp NA | 3,845,808 | 124,104 | |
JPMorgan Chase & Co. | 1,218,510 | 119,463 | |
Morgan Stanley | 2,410,729 | 116,077 | |
Citigroup Inc. | 2,779,032 | 115,107 | |
Travelers Cos. Inc. | 893,353 | 107,837 | |
Voya Financial Inc. | 1,996,494 | 95,692 | |
LPL Financial Holdings Inc. | 1,168,400 | 93,390 | |
Goldman Sachs Group Inc. | 493,525 | 93,296 | |
Axis Capital Holdings Ltd. | 1,829,345 | 78,095 | |
* | ING Groep NV ADR | 10,234,910 | 69,802 |
Unum Group | 3,211,586 | 56,717 | |
UBS Group AG (Registered) | 2,753,680 | 32,190 | |
Invesco Ltd. | 1,129,675 | 14,810 | |
3,649,429 | |||
Health Care (11.8%) | |||
CVS Health Corp. | 5,526,350 | 309,973 | |
UnitedHealth Group Inc. | 951,707 | 290,404 | |
Medtronic plc | 2,032,883 | 204,447 | |
DENTSPLY SIRONA Inc. | 4,228,017 | 199,520 | |
* | Centene Corp. | 2,383,854 | 140,886 |
McKesson Corp. | 917,724 | 135,355 | |
Anthem Inc. | 440,935 | 120,287 | |
Eli Lilly and Co. | 885,671 | 115,545 | |
Sanofi | 1,196,949 | 108,076 | |
Bristol-Myers Squibb Co. | 1,415,124 | 82,714 | |
Pfizer Inc. | 2,033,820 | 72,160 | |
Cardinal Health Inc. | 1,392,218 | 63,750 | |
Amgen Inc. | 269,795 | 58,529 | |
* | Regeneron Pharmaceuticals Inc. | 91,991 | 50,003 |
Cigna Corp. | 298,096 | 49,773 | |
* | Mylan NV | 2,898,835 | 42,149 |
2,043,571 | |||
Industrials (8.0%) | |||
Westinghouse Air Brake Technologies Corp. | 4,848,266 | 287,502 | |
General Electric Co. | 22,850,163 | 169,548 | |
Raytheon Technologies Corp. | 2,956,203 | 160,581 | |
* | Middleby Corp. | 1,369,640 | 136,334 |
FedEx Corp. | 432,289 | 112,166 |
Shares | Market Value• ($000) | ||
Stanley Black & Decker Inc. | 634,919 | 105,523 | |
JB Hunt Transport Services Inc. | 769,449 | 93,673 | |
Southwest Airlines Co. | 2,345,574 | 92,720 | |
* | Airbus SE | 1,058,372 | 77,437 |
Textron Inc. | 1,936,113 | 69,313 | |
Parker-Hannifin Corp. | 233,672 | 48,688 | |
Dover Corp. | 281,597 | 31,176 | |
1,384,661 | |||
Information Technology (14.0%) | |||
Cognizant Technology Solutions Corp. Class A | 3,650,999 | 260,754 | |
Intel Corp. | 5,370,644 | 237,812 | |
Broadcom Inc. | 576,724 | 201,640 | |
Cisco Systems Inc. | 5,188,225 | 186,257 | |
* | FleetCor Technologies Inc. | 823,244 | 181,863 |
* | Micron Technology Inc. | 3,570,104 | 179,719 |
*,1 | VMware Inc. Class A | 906,382 | 116,679 |
KLA Corp. | 568,631 | 112,123 | |
Leidos Holdings Inc. | 1,348,408 | 111,918 | |
Hewlett Packard Enterprise Co. | 12,630,218 | 109,125 | |
Genpact Ltd. | 3,163,577 | 108,732 | |
* | F5 Networks Inc. | 817,218 | 108,641 |
Global Payments Inc. | 678,971 | 107,101 | |
Amdocs Ltd. | 1,856,198 | 104,652 | |
* | GoDaddy Inc. Class A | 1,309,311 | 92,621 |
Oracle Corp. | 1,635,666 | 91,777 | |
Samsung Electronics Co. Ltd. | 1,249,239 | 62,794 | |
Juniper Networks Inc. | 1,995,063 | 39,343 | |
2,413,551 | |||
Materials (4.3%) | |||
Celanese Corp. Class A | 1,504,489 | 170,774 | |
Reliance Steel & Aluminum Co. | 1,535,736 | 167,380 | |
Dow Inc. | 2,898,750 | 131,864 | |
PPG Industries Inc. | 833,762 | 108,156 | |
FMC Corp. | 840,693 | 86,373 | |
Vulcan Materials Co. | 578,910 | 83,849 | |
748,396 | |||
Other (0.0%) | |||
2 | Allstar Coinv LLC PP | 1,647,100 | 1,385 |
Real Estate (4.7%) | |||
Americold Realty Trust | 5,838,526 | 211,530 | |
VICI Properties Inc. | 8,953,007 | 205,471 | |
Camden Property Trust | 1,301,191 | 120,022 | |
Equinix Inc. | 132,806 | 97,113 | |
Digital Realty Trust Inc. | 643,463 | 92,852 | |
Prologis Inc. | 750,395 | 74,439 | |
801,427 | |||
Utilities (6.4%) | |||
Exelon Corp. | 7,425,591 | 296,207 | |
Duke Energy Corp. | 2,212,941 | 203,834 | |
Pinnacle West Capital Corp. | 2,038,647 | 166,292 | |
Consolidated Edison Inc. | 1,634,105 | 128,261 | |
NRG Energy Inc. | 3,791,099 | 119,875 | |
Edison International | 2,103,085 | 117,857 |
Shares | Market Value• ($000) | ||
Avangrid Inc. | 1,512,300 | 74,617 | |
Entergy Corp. | 20,502 | 2,075 | |
Iberdrola SA | 1 | — | |
1,109,018 | |||
Total Common Stocks (Cost $16,412,118) | 16,744,635 | ||
Temporary Cash Investments (3.6%) | |||
Money Market Fund (3.0%) | |||
3,4 | Vanguard Market Liquidity Fund, 0.112% | 5,095,479 | 509,548 |
Face Amount ($000) | |||
Repurchase Agreement (0.6%) | |||
Bank of America Securities, LLC 0.090%, 11/2/20 (Dated 10/30/20, Repurchase Value $100,601,000, collateralized by Federal Home Loan Mortgage Corp., 2.000%, 10/1/50 and Federal National Mortgage Association, 2.500%, 10/1/50, with a value of $102,612,000) | 100,600 | 100,600 | |
U.S. Government and Agency Obligations (0.0%) | |||
5 | U.S. Treasury Bill, 0.103%, 12/31/20 | 6,000 | 5,999 |
5 | U.S. Treasury Bill, 0.096%, 1/28/21 | 2,520 | 2,520 |
8,519 | |||
Total Temporary Cash Investments (Cost $618,627) | 618,667 | ||
Total Investments (100.6%) (Cost $17,030,745) | 17,363,302 | ||
Other Assets and Liabilities—Net (-0.6%) | (98,261) | ||
Net Assets (100%) | 17,265,041 | ||
Cost is in $000. |
• | See Note A in Notes to Financial Statements. |
* | Non-income-producing security. |
1 | Includes partial security positions on loan to broker-dealers. The total value of securities on loan is $72,868,000. |
2 | Restricted securities totaling $1,385,000, representing 0.0% of net assets. See Restricted Securities table for additional information. |
3 | Affiliated money market fund available only to Vanguard funds and certain trusts and accounts managed by Vanguard. Rate shown is the 7-day yield. |
4 | Collateral of $75,232,000 was received for securities on loan. |
5 | Securities with a value of $8,519,000 have been segregated as initial margin for open futures contracts. |
ADR—American Depositary Receipt. | |
PP—Private Placement. |
Restricted Securities as of Period End | ||
Security Name | Acquisition Date | Acquisition Cost ($000) |
Allstar Coinv LLC PP | August 2011 | 459 |
Futures Contracts | ||||
($000) | ||||
Expiration | Number of Long (Short) Contracts | Notional Amount | Value and Unrealized Appreciation (Depreciation) | |
Long Futures Contracts | ||||
E-mini S&P 500 Index | December 2020 | 1,615 | 263,625 | (10,303) |
($000s, except shares and per-share amounts) | Amount |
Assets | |
Investments in Securities, at Value | |
Unaffiliated Issuers (Cost $16,521,236) | 16,853,754 |
Affiliated Issuers (Cost $509,509) | 509,548 |
Total Investments in Securities | 17,363,302 |
Investment in Vanguard | 731 |
Cash Collateral Pledged—Futures Contracts | 14,032 |
Receivables for Investment Securities Sold | 77,001 |
Receivables for Accrued Income | 17,815 |
Receivables for Capital Shares Issued | 2,778 |
Total Assets | 17,475,659 |
Liabilities | |
Due to Custodian | 1,995 |
Payables for Investment Securities Purchased | 76,378 |
Collateral for Securities on Loan | 75,232 |
Payables to Investment Advisor | 2,543 |
Payables for Capital Shares Redeemed | 50,313 |
Payables to Vanguard | 645 |
Variation Margin Payable—Futures Contracts | 3,512 |
Total Liabilities | 210,618 |
Net Assets | 17,265,041 |
At October 31, 2020, net assets consisted of: | |
Paid-in Capital | 15,562,714 |
Total Distributable Earnings (Loss) | 1,702,327 |
Net Assets | 17,265,041 |
Investor Shares—Net Assets | |
Applicable to 246,289,482 outstanding $.001 par value shares of beneficial interest (unlimited authorization) | 4,569,817 |
Net Asset Value Per Share—Investor Shares | $18.55 |
Admiral Shares—Net Assets | |
Applicable to 202,869,898 outstanding $.001 par value shares of beneficial interest (unlimited authorization) | 12,695,224 |
Net Asset Value Per Share—Admiral Shares | $62.58 |
Year Ended October 31, 2020 | |
($000) | |
Investment Income | |
Income | |
Dividends—Unaffiliated Issuers1 | 422,076 |
Dividends—Affiliated Issuers | — |
Interest—Unaffiliated Issuers | 1,195 |
Interest—Affiliated Issuers | 2,680 |
Securities Lending—Net | 4,825 |
Total Income | 430,776 |
Expenses | |
Investment Advisory Fees—Note B | |
Basic Fee | 22,712 |
Performance Adjustment | (12,922) |
The Vanguard Group—Note C | |
Management and Administrative—Investor Shares | 9,674 |
Management and Administrative—Admiral Shares | 16,556 |
Marketing and Distribution—Investor Shares | 362 |
Marketing and Distribution—Admiral Shares | 496 |
Custodian Fees | 102 |
Auditing Fees | 42 |
Shareholders’ Reports—Investor Shares | 119 |
Shareholders’ Reports—Admiral Shares | 118 |
Trustees’ Fees and Expenses | 30 |
Total Expenses | 37,289 |
Net Investment Income | 393,487 |
Realized Net Gain (Loss) | |
Investment Securities Sold—Unaffiliated Issuers | 1,423,463 |
Investment Securities Sold—Affiliated Issuers | 36,288 |
Futures Contracts | (6,732) |
Foreign Currencies | 302 |
Realized Net Gain (Loss) | 1,453,321 |
Change in Unrealized Appreciation (Depreciation) | |
Investment Securities—Unaffiliated Issuers | (2,770,381) |
Investment Securities—Affiliated Issuers | (33,025) |
Futures Contracts | (10,626) |
Foreign Currencies | (6) |
Change in Unrealized Appreciation (Depreciation) | (2,814,038) |
Net Increase (Decrease) in Net Assets Resulting from Operations | (967,230) |
1 | Dividends are net of foreign withholding taxes of $3,409,000. |
Year Ended October 31, | ||
2020 ($000) | 2019 ($000) | |
Increase (Decrease) in Net Assets | ||
Operations | ||
Net Investment Income | 393,487 | 389,438 |
Realized Net Gain (Loss) | 1,453,321 | 1,635,919 |
Change in Unrealized Appreciation (Depreciation) | (2,814,038) | 25,651 |
Net Increase (Decrease) in Net Assets Resulting from Operations | (967,230) | 2,051,008 |
Distributions1 | ||
Investor Shares | (459,718) | (482,158) |
Admiral Shares | (1,481,286) | (1,528,988) |
Total Distributions | (1,941,004) | (2,011,146) |
Capital Share Transactions | ||
Investor Shares | 647,387 | 63,089 |
Admiral Shares | 329,826 | 678,063 |
Net Increase (Decrease) from Capital Share Transactions | 977,213 | 741,152 |
Total Increase (Decrease) | (1,931,021) | 781,014 |
Net Assets | ||
Beginning of Period | 19,196,062 | 18,415,048 |
End of Period | 17,265,041 | 19,196,062 |
1 | Certain prior-period numbers have been reclassified to conform with the current-period presentation. |
Investor Shares | |||||
For a Share Outstanding Throughout Each Period | Year Ended October 31, | ||||
2020 | 2019 | 2018 | 2017 | 2016 | |
Net Asset Value, Beginning of Period | $21.76 | $22.02 | $23.38 | $19.70 | $21.06 |
Investment Operations | |||||
Net Investment Income | .4081 | .4191 | .4171 | .3631 | .394 |
Net Realized and Unrealized Gain (Loss) on Investments | (1.412) | 1.700 | (.753) | 4.345 | (.168) |
Total from Investment Operations | (1.004) | 2.119 | (.336) | 4.708 | .226 |
Distributions | |||||
Dividends from Net Investment Income | (.420) | (.426) | (.378) | (.433) | (.317) |
Distributions from Realized Capital Gains | (1.786) | (1.953) | (.646) | (.595) | (1.269) |
Total Distributions | (2.206) | (2.379) | (1.024) | (1.028) | (1.586) |
Net Asset Value, End of Period | $18.55 | $21.76 | $22.02 | $23.38 | $19.70 |
Total Return2 | -5.64% | 11.59% | -1.69% | 24.53% | 1.27% |
Ratios/Supplemental Data | |||||
Net Assets, End of Period (Millions) | $4,570 | $4,549 | $4,468 | $5,191 | $4,896 |
Ratio of Total Expenses to Average Net Assets3 | 0.29% | 0.30% | 0.31% | 0.31% | 0.30% |
Ratio of Net Investment Income to Average Net Assets | 2.14% | 2.04% | 1.76% | 1.66% | 2.01% |
Portfolio Turnover Rate | 51% | 39% | 33% | 26% | 26% |
1 | Calculated based on average shares outstanding. |
2 | 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. |
3 | Includes performance-based investment advisory fee increases (decreases) of (0.07%), (0.05%), (0.05%), (0.05%), and (0.06%). |
Admiral Shares | |||||
For a Share Outstanding Throughout Each Period | Year Ended October 31, | ||||
2020 | 2019 | 2018 | 2017 | 2016 | |
Net Asset Value, Beginning of Period | $73.41 | $74.29 | $78.88 | $66.48 | $71.04 |
Investment Operations | |||||
Net Investment Income | 1.4481 | 1.4841 | 1.4841 | 1.2951 | 1.398 |
Net Realized and Unrealized Gain (Loss) on Investments | (4.770) | 5.735 | (2.538) | 14.650 | (.545) |
Total from Investment Operations | (3.322) | 7.219 | (1.054) | 15.945 | .853 |
Distributions | |||||
Dividends from Net Investment Income | (1.485) | (1.509) | (1.358) | (1.538) | (1.134) |
Distributions from Realized Capital Gains | (6.023) | (6.590) | (2.178) | (2.007) | (4.279) |
Total Distributions | (7.508) | (8.099) | (3.536) | (3.545) | (5.413) |
Net Asset Value, End of Period | $62.58 | $73.41 | $74.29 | $78.88 | $66.48 |
Total Return2 | -5.55% | 11.71% | -1.59% | 24.63% | 1.41% |
Ratios/Supplemental Data | |||||
Net Assets, End of Period (Millions) | $12,695 | $14,647 | $13,948 | $14,366 | $11,703 |
Ratio of Total Expenses to Average Net Assets3 | 0.19% | 0.20% | 0.21% | 0.21% | 0.20% |
Ratio of Net Investment Income to Average Net Assets | 2.24% | 2.14% | 1.86% | 1.76% | 2.11% |
Portfolio Turnover Rate | 51% | 39% | 33% | 26% | 26% |
1 | Calculated based on average shares outstanding. |
2 | 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. |
3 | Includes performance-based investment advisory fee increases (decreases) of (0.07%), (0.05%), (0.05%), (0.05%), and (0.06%). |
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. |
B. | The investment advisory firms Wellington Management Company llp and Pzena Investment Management, LLC, each provide investment advisory services to a portion of the fund for a fee calculated at an annual percentage rate of average net assets managed by the advisor. The basic fee of Wellington Management Company llp is subject to quarterly adjustments based on performance relative to the S&P 500 Index for the preceding three years. The basic fee of Pzena Investment Management, LLC, is subject to quarterly adjustments based on performance relative to the Russell 1000 Value Index for the preceding three years. |
C. | In accordance with the terms of a Funds' Service Agreement (the “FSA”) between Vanguard and the fund, Vanguard furnishes to the fund corporate management, administrative, marketing, distribution and cash management 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 and are generally settled twice a month. |
D. | Various inputs may be used to determine the value of the fund’s investments and derivatives. 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 ($000) | Level 2 ($000) | Level 3 ($000) | Total ($000) | |
Investments | ||||
Assets | ||||
Common Stocks | 16,343,742 | 400,893 | — | 16,744,635 |
Temporary Cash Investments | 509,548 | 109,119 | — | 618,667 |
Total | 16,853,290 | 510,012 | — | 17,363,302 |
Derivative Financial Instruments | ||||
Liabilities | ||||
Future Contracts1 | 3,512 | — | — | 3,512 |
1 | Represents variation margin on the last day of the reporting period. |
E. | Permanent differences between book-basis and tax-basis components of net assets are reclassified among capital accounts in the financial statements to reflect their tax character. These reclassifications have no effect on net assets or net asset value per share. As of period end, permanent differences primarily attributable to the accounting for foreign currency transactions and distributions in connection with fund share redemptions were reclassified between the following accounts: |
Amount ($000) | |
Paid-in Capital | 198,643 |
Total Distributable Earnings (Loss) | (198,643) |
Amount ($000) | |
Undistributed Ordinary Income | 530,710 |
Undistributed Long-Term Gains | 850,957 |
Capital Loss Carryforwards | — |
Qualified Late-Year Losses | — |
Net Unrealized Gains (Losses) | 320,660 |
Year Ended October 31, | ||
2020 Amount ($000) | 2019 Amount ($000) | |
Ordinary Income* | 424,622 | 443,974 |
Long-Term Capital Gains | 1,516,382 | 1,567,172 |
Total | 1,941,004 | 2,011,146 |
* | Includes short-term capital gains, if any. |
Amount ($000) | |
Tax Cost | 17,042,670 |
Gross Unrealized Appreciation | 2,637,342 |
Gross Unrealized Depreciation | (2,316,710) |
Net Unrealized Appreciation (Depreciation) | 320,632 |
F. | During the year ended October 31, 2020, the fund purchased $8,776,021,000 of investment securities and sold $9,945,943,000 of investment securities, other than temporary cash investments. |
G. | Capital share transactions for each class of shares were: |
Year Ended October 31, | |||||
2020 | 2019 | ||||
Amount ($000) | Shares (000) | Amount ($000) | Shares (000) | ||
Investor Shares | |||||
Issued | 754,962 | 45,996 | 337,518 | 16,763 | |
Issued in Connection with Acquisition of Vanguard Capital Value Fund | 696,113 | 37,613 | — | — | |
Issued in Lieu of Cash Distributions | 446,705 | 21,481 | 468,025 | 25,211 | |
Redeemed | (1,250,393) | (67,795) | (742,454) | (35,854) | |
Net Increase (Decrease)—Investor Shares | 647,387 | 37,295 | 63,089 | 6,120 | |
Admiral Shares | |||||
Issued | 1,082,877 | 17,290 | 797,705 | 11,373 | |
Issued in Lieu of Cash Distributions | 1,385,454 | 19,747 | 1,434,609 | 22,917 | |
Redeemed | (2,138,505) | (33,692) | (1,554,251) | (22,522) | |
Net Increase (Decrease)—Admiral Shares | 329,826 | 3,345 | 678,063 | 11,768 |
H. | On July 24, 2020, the fund acquired all of the net assets of Vanguard Capital Value Fund pursuant to a plan of reorganization approved by the fund’s' board of trustees in March 2020. The purpose of the transaction was to combine two funds with comparable investment objectives. The |
($000) | |
Net Investment Income | 405,826 |
Realized Net Gain (Loss) | 1,448,537 |
Change in Unrealized Appreciation (Depreciation) | (2,845,453) |
Net Increase (Decrease) in Net Assets Resulting from Operations | (991,090) |
I. | Transactions during the period in investments where the issuer is another member of The Vanguard Group were as follows: |
Current Period Transactions | ||||||||
Oct. 31, 2019 Market Value ($000) | Purchases at Cost ($000) | Proceeds from Securities Sold ($000) | Realized Net Gain (Loss) ($000) | Change in Unrealized App. (Dep.) ($000) | Income ($000) | Capital Gain Distributions Received ($000) | Oct. 31, 2020 Market Value ($000) | |
Vanguard Market Liquidity Fund | 415,193 | NA1 | NA1 | (96) | 24 | 2,680 | — | 509,548 |
Vanguard Value ETF | 61,815 | — | 65,150 | 36,384 | (33,049) | — | — | — |
Total | 477,008 | 36,288 | (33,025) | 2,680 | — | 509,548 |
1 | Not applicable—purchases and sales are for temporary cash investment purposes. |
J. | Management has determined that no other events or transactions occurred subsequent to October 31, 2020, that would require recognition or disclosure in these financial statements. |
Philadelphia, Pennsylvania
December 17, 2020
Joseph Brennan | James M. Norris |
Mortimer J. Buckley | Thomas M. Rampulla |
Gregory Davis | Karin A. Risi |
John James | Anne E. Robinson |
John T. Marcante | Michael Rollings |
Chris D. McIsaac | Lauren Valente |
All rights reserved.
Vanguard Marketing Corporation, Distributor.
Your Fund’s Performance at a Glance | 1 |
Advisors' Report | 2 |
About Your Fund’s Expenses | 7 |
Performance Summary | 9 |
Financial Statements | 11 |
• | Vanguard Windsor II Fund returned 3.00% for Admiral Shares and 2.93% for Investor Shares for the 12 months ended October 31, 2020, ahead of the –7.57% return of its benchmark, the Russell 1000 Value Index. |
• | The period was marked by the global spread of COVID-19 and efforts to contain it. However, responses from policymakers, the start of trials for vaccines and treatments, and the easing of some pandemic-related restrictions eventually lifted investor sentiment. The U.S. stock market rebounded more strongly than emerging markets and much more than developed markets outside the United States. |
• | Growth stocks recorded double-digit gains—trouncing their loss-making value counterparts and extending a decade-long run of outperformance—and large-capitalization stocks surpassed mid- and small-caps. |
• | The advisors’ stock selection and overweight position in information technology stocks boosted returns the most. Selection in consumer discretionary and communication services also helped. Selection in consumer staples hurt relative performance, as did underweight allocations to materials and industrials. |
• | For the ten years ended October 31, 2020, the fund posted an average annual return of 10.53% for Admiral Shares and 10.44% for Investor Shares, ahead of the benchmark’s 9.48% average annual return. |
Average Annual Total Returns Periods Ended October 31, 2020 | |||
One Year | Three Years | Five Years | |
Stocks | |||
Russell 1000 Index (Large-caps) | 10.87% | 10.63% | 11.79% |
Russell 2000 Index (Small-caps) | -0.14 | 2.19 | 7.27 |
Russell 3000 Index (Broad U.S. market) | 10.15 | 10.04 | 11.48 |
FTSE All-World ex US Index (International) | -2.17 | 0.13 | 4.52 |
Bonds | |||
Bloomberg Barclays U.S. Aggregate Bond Index (Broad taxable market) | 6.19% | 5.06% | 4.08% |
Bloomberg Barclays Municipal Bond Index (Broad tax-exempt market) | 3.59 | 4.09 | 3.70 |
FTSE Three-Month U.S. Treasury Bill Index | 0.86 | 1.62 | 1.15 |
CPI | |||
Consumer Price Index | 1.18% | 1.82% | 1.83% |
• | Compounders: These are companies our analysis indicates can sustain very high |
• | Improvers: We believe companies can improve returns, but investors often are too optimistic about the probability of success. Our research indicates that companies that improve their returns on capital materially outperform the broad market. We typically invest 20% to 40% of our capital in these types of ideas. |
Fund Assets Managed | |||
Investment Advisor | % | $ Million | Investment Strategy |
Lazard Asset Management LLC | 37 | 15,625 | Employs a relative-value approach that seeks a combination of attractive valuation and high financial productivity. The process is research-driven, relying upon bottom-up stock analysis performed by the firm’s global sector analysts. |
Sanders Capital, LLC | 22 | 8,983 | Employs a traditional, bottom-up, fundamental research approach to identifying securities that are undervalued relative to their expected total return. |
Aristotle Capital Management, LLC | 20 | 8,504 | Employs a fundamental, bottom-up security selection process focused on quality companies with attractive valuations and compelling catalysts. |
Hotchkis and Wiley Capital Management, LLC | 20 | 8,373 | Uses a disciplined investment approach, focusing on such investment parameters as a company’s tangible assets, sustainable cash flow, and potential for improving business performance. |
Cash Investments | 1 | 503 | These short-term reserves are invested by Vanguard in equity index products to simulate investment in stocks. Each advisor may also maintain a modest cash position. |
• | 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. |
• | 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. |
Six Months Ended October 31, 2020 | |||
Windsor II Fund | Beginning Account Value 4/30/2020 | Ending Account Value 10/31/2020 | Expenses Paid During Period |
Based on Actual Fund Return | |||
Investor Shares | $1,000.00 | $1,134.69 | $1.82 |
AdmiralTM Shares | 1,000.00 | 1,135.38 | 1.40 |
Based on Hypothetical 5% Yearly Return | |||
Investor Shares | $1,000.00 | $1,023.43 | $1.73 |
Admiral Shares | 1,000.00 | 1,023.83 | 1.32 |
Average Annual Total Returns Periods Ended October 31, 2020 | |||||
One Year | Five Years | Ten Years | Final Value of a $10,000 Investment | ||
Windsor II Fund Investor Shares | 2.93% | 7.94% | 10.44% | $27,005 | |
Russell 1000 Value Index | -7.57 | 5.82 | 9.48 | 24,732 | |
Dow Jones U.S. Total Stock Market Float Adjusted Index | 9.99 | 11.41 | 12.75 | 33,211 |
One Year | Five Year | Ten Years | Final Value of a $50,000 Investment | ||
Windsor II Fund Admiral Shares | 3.00% | 8.03% | 10.53% | $136,085 | |
Russell 1000 Value Index | -7.57 | 5.82 | 9.48 | 123,662 | |
Dow Jones U.S. Total Stock Market Float Adjusted Index | 9.99 | 11.41 | 12.75 | 166,054 |
Communication Services | 8.3% |
Consumer Discretionary | 11.0 |
Consumer Staples | 6.0 |
Energy | 3.6 |
Financials | 16.9 |
Health Care | 17.6 |
Industrials | 9.0 |
Information Technology | 22.3 |
Materials | 2.5 |
Real Estate | 1.5 |
Utilities | 0.7 |
Other | 0.6 |
Shares | Market Value• ($000) | ||
Common Stocks (97.1%) | |||
Communication Services (8.1%) | |||
* | Alphabet Inc. Class A | 716,097 | 1,157,292 |
* | Alphabet Inc. Class C | 299,965 | 486,246 |
* | Facebook Inc. Class A | 1,553,662 | 408,784 |
Verizon Communications Inc. | 3,721,710 | 212,100 | |
* | Twitter Inc. | 4,540,000 | 187,774 |
* | Electronic Arts Inc. | 1,465,120 | 175,565 |
Walt Disney Co. | 1,178,862 | 142,937 | |
Vodafone Group plc ADR | 10,004,932 | 135,167 | |
News Corp. Class A | 9,631,710 | 126,464 | |
Comcast Corp. Class A | 2,884,213 | 121,829 | |
* | Discovery Inc. Class C | 5,839,498 | 106,980 |
ViacomCBS Inc. Class B | 2,019,379 | 57,694 | |
Omnicom Group Inc. | 913,679 | 43,126 | |
Interpublic Group of Cos. Inc. | 2,230,783 | 40,355 | |
3,402,313 | |||
Consumer Discretionary (10.7%) | |||
McDonald's Corp. | 2,188,469 | 466,144 | |
Lennar Corp. Class A | 6,364,759 | 446,997 | |
General Motors Co. | 12,000,002 | 414,360 | |
* | Alibaba Group Holding Ltd. ADR | 941,945 | 287,001 |
Sony Corp. ADR | 3,375,000 | 282,352 | |
Dollar General Corp. | 1,306,561 | 272,692 | |
Starbucks Corp. | 3,058,066 | 265,929 | |
Lowe's Cos. Inc. | 1,632,297 | 258,066 | |
DR Horton Inc. | 3,650,810 | 243,911 | |
Home Depot Inc. | 912,660 | 243,416 | |
* | Dollar Tree Inc. | 2,578,451 | 232,886 |
Aptiv plc | 2,064,676 | 199,221 | |
Magna International Inc. | 3,659,532 | 187,039 | |
Ross Stores Inc. | 2,003,146 | 170,608 | |
* | Booking Holdings Inc. | 85,400 | 138,562 |
Daimler AG (Registered) | 2,159,229 | 111,607 | |
Bayerische Motoren Werke AG | 1,371,126 | 93,701 | |
Harley-Davidson Inc. | 2,293,773 | 75,419 | |
Genuine Parts Co. | 521,042 | 47,118 | |
Goodyear Tire & Rubber Co. | 4,584,996 | 37,964 | |
* | Adient plc | 1,311,943 | 27,839 |
Shares | Market Value• ($000) | ||
Lennar Corp. Class B | 46,457 | 2,643 | |
4,505,475 | |||
Consumer Staples (5.8%) | |||
Procter & Gamble Co. | 4,509,621 | 618,269 | |
Coca-Cola Co. | 11,667,954 | 560,762 | |
PepsiCo Inc. | 2,489,073 | 331,769 | |
Mondelez International Inc. Class A | 5,978,253 | 317,565 | |
Kimberly-Clark Corp. | 1,186,062 | 157,260 | |
Tyson Foods Inc. Class A | 2,649,282 | 151,618 | |
Nestle SA (Registered) | 1,095,673 | 123,239 | |
1 | Unilever plc ADR | 2,056,698 | 116,882 |
Walgreens Boots Alliance Inc. | 2,100,000 | 71,484 | |
2,448,848 | |||
Energy (3.5%) | |||
Cabot Oil & Gas Corp. | 10,471,000 | 186,279 | |
ConocoPhillips | 6,090,396 | 174,307 | |
Halliburton Co. | 13,234,139 | 159,604 | |
Hess Corp. | 3,813,667 | 141,945 | |
Marathon Oil Corp. | 30,151,987 | 119,402 | |
1 | Royal Dutch Shell plc Class A ADR | 4,094,912 | 104,625 |
Suncor Energy Inc. | 8,277,132 | 93,449 | |
Phillips 66 | 1,990,000 | 92,853 | |
National Oilwell Varco Inc. | 10,076,888 | 84,646 | |
Apache Corp. | 8,992,677 | 74,639 | |
Marathon Petroleum Corp. | 2,408,289 | 71,044 | |
Pioneer Natural Resources Co. | 820,000 | 65,239 | |
Baker Hughes Co. Class A | 3,043,100 | 44,947 | |
Schlumberger NV | 2,915,800 | 43,562 | |
Murphy Oil Corp. | 2,182,252 | 16,847 | |
1,473,388 | |||
Financials (16.4%) | |||
Bank of America Corp. | 27,450,480 | 650,576 | |
Intercontinental Exchange Inc. | 6,318,931 | 596,507 | |
Citigroup Inc. | 13,173,894 | 545,663 | |
JPMorgan Chase & Co. | 5,387,701 | 528,210 | |
Wells Fargo & Co. | 20,365,093 | 436,831 | |
American International Group Inc. | 13,653,256 | 429,941 | |
Commerce Bancshares Inc. | 4,141,011 | 257,778 | |
PNC Financial Services Group Inc. | 2,270,700 | 254,046 | |
American Express Co. | 2,667,534 | 243,386 | |
Marsh & McLennan Cos. Inc. | 2,103,988 | 217,679 | |
Ameriprise Financial Inc. | 1,330,000 | 213,904 | |
Fifth Third Bancorp | 8,857,621 | 205,674 | |
Goldman Sachs Group Inc. | 979,049 | 185,079 | |
Charles Schwab Corp. | 4,380,012 | 180,062 | |
Chubb Ltd. | 1,121,000 | 145,629 | |
Travelers Cos. Inc. | 1,204,992 | 145,455 | |
Citizens Financial Group Inc. | 5,114,251 | 139,363 | |
Capital One Financial Corp. | 1,798,000 | 131,398 | |
Truist Financial Corp. | 2,992,319 | 126,036 | |
Equitable Holdings Inc. | 5,114,540 | 109,911 | |
East West Bancorp Inc. | 3,000,000 | 109,440 | |
Hartford Financial Services Group Inc. | 2,822,900 | 108,738 | |
* | BNP Paribas SA | 2,782,700 | 97,046 |
Shares | Market Value• ($000) | ||
Cincinnati Financial Corp. | 1,213,778 | 85,863 | |
Cullen/Frost Bankers Inc. | 1,132,000 | 79,546 | |
Mitsubishi UFJ Financial Group Inc. ADR | 19,937,000 | 78,552 | |
Discover Financial Services | 1,136,878 | 73,908 | |
Bank of New York Mellon Corp. | 2,041,034 | 70,130 | |
BOK Financial Corp. | 982,032 | 57,685 | |
Morgan Stanley | 1,184,216 | 57,020 | |
* | Barclays plc | 33,292,764 | 46,146 |
China Construction Bank Corp. Class H | 64,086,000 | 44,163 | |
Synchrony Financial | 1,589,451 | 39,768 | |
Industrial & Commercial Bank of China Ltd. Class H | 69,386,000 | 39,402 | |
State Street Corp. | 665,188 | 39,180 | |
Sumitomo Mitsui Financial Group Inc. | 1,166,500 | 32,291 | |
* | Natwest Group plc | 18,703,800 | 30,157 |
CIT Group Inc. | 1,001,610 | 29,497 | |
Banco de Sabadell SA | 36,345,074 | 11,122 | |
6,872,782 | |||
Health Care (17.1%) | |||
Medtronic plc | 10,456,840 | 1,051,644 | |
Danaher Corp. | 3,335,504 | 765,632 | |
Johnson & Johnson | 4,910,820 | 673,322 | |
Pfizer Inc. | 15,420,677 | 547,126 | |
Anthem Inc. | 1,770,838 | 483,085 | |
UnitedHealth Group Inc. | 1,542,750 | 470,755 | |
Thermo Fisher Scientific Inc. | 642,553 | 304,005 | |
Humana Inc. | 690,218 | 275,590 | |
Cigna Corp. | 1,534,973 | 256,294 | |
Amgen Inc. | 1,116,000 | 242,105 | |
HCA Healthcare Inc. | 1,886,900 | 233,862 | |
Zoetis Inc. | 1,346,898 | 213,551 | |
* | Elanco Animal Health Inc. | 6,499,000 | 201,534 |
Roche Holding AG | 602,500 | 193,602 | |
* | Alcon Inc. | 3,105,000 | 176,488 |
* | Boston Scientific Corp. | 4,859,456 | 166,534 |
Novartis AG ADR | 1,947,000 | 152,022 | |
* | Laboratory Corp. of America Holdings | 759,677 | 151,761 |
* | IQVIA Holdings Inc. | 900,167 | 138,617 |
GlaxoSmithKline plc ADR | 2,970,294 | 99,267 | |
* | Centene Corp. | 1,362,088 | 80,499 |
Sanofi ADR | 1,546,991 | 70,079 | |
Bristol-Myers Squibb Co. | 1,049,700 | 61,355 | |
Zimmer Biomet Holdings Inc. | 440,508 | 58,191 | |
AbbVie Inc. | 620,567 | 52,810 | |
* | Biogen Inc. | 150,011 | 37,813 |
Merck & Co. Inc. | 442,329 | 33,268 | |
7,190,811 | |||
Industrials (8.7%) | |||
Honeywell International Inc. | 3,225,165 | 531,991 | |
General Electric Co. | 61,446,484 | 455,933 | |
Caterpillar Inc. | 2,789,985 | 438,167 | |
Norfolk Southern Corp. | 1,379,985 | 288,582 | |
Xylem Inc. | 2,400,000 | 209,136 | |
Parker-Hannifin Corp. | 995,000 | 207,318 | |
Cummins Inc. | 924,672 | 203,326 | |
Johnson Controls International plc | 4,680,000 | 197,543 |
Shares | Market Value• ($000) | ||
Allegion plc | 1,836,000 | 180,846 | |
FedEx Corp. | 681,090 | 176,722 | |
Oshkosh Corp. | 2,540,000 | 171,094 | |
Waste Management Inc. | 1,441,165 | 155,516 | |
* | CNH Industrial NV | 18,302,399 | 142,210 |
General Dynamics Corp. | 1,018,000 | 133,694 | |
Stanley Black & Decker Inc. | 431,190 | 71,664 | |
PACCAR Inc. | 490,820 | 41,906 | |
Fluor Corp. | 2,263,685 | 25,693 | |
Boeing Co. | 143,400 | 20,706 | |
* | Embraer SA ADR | 1,662,054 | 6,848 |
3,658,895 | |||
Information Technology (21.6%) | |||
Microsoft Corp. | 11,695,993 | 2,368,088 | |
Apple Inc. | 9,453,324 | 1,029,089 | |
Taiwan Semiconductor Manufacturing Co. Ltd. ADR | 7,725,085 | 647,903 | |
Samsung Electronics Co. Ltd. | 8,969,100 | 450,837 | |
Analog Devices Inc. | 3,178,446 | 376,741 | |
* | Adobe Inc. | 794,000 | 354,997 |
Visa Inc. Class A | 1,953,322 | 354,938 | |
Texas Instruments Inc. | 2,282,946 | 330,091 | |
* | ANSYS Inc. | 1,042,000 | 317,154 |
* | Micron Technology Inc. | 5,748,323 | 289,371 |
QUALCOMM Inc. | 2,191,000 | 270,282 | |
Microchip Technology Inc. | 2,228,000 | 234,118 | |
Cisco Systems Inc. | 5,830,143 | 209,302 | |
* | PayPal Holdings Inc. | 1,068,000 | 198,787 |
Oracle Corp. | 3,491,625 | 195,915 | |
Amphenol Corp. Class A | 1,492,036 | 168,361 | |
Accenture plc Class A | 769,234 | 166,855 | |
Corning Inc. | 4,483,651 | 143,342 | |
* | salesforce.com Inc. | 595,085 | 138,220 |
Telefonaktiebolaget LM Ericsson ADR | 11,536,480 | 129,324 | |
Hewlett Packard Enterprise Co. | 14,428,241 | 124,660 | |
TE Connectivity Ltd. | 1,179,766 | 114,296 | |
Fidelity National Information Services Inc. | 860,610 | 107,223 | |
CDW Corp. | 680,299 | 83,405 | |
Applied Materials Inc. | 1,383,364 | 81,937 | |
International Business Machines Corp. | 660,551 | 73,757 | |
* | Palo Alto Networks Inc. | 322,027 | 71,229 |
* | F5 Networks Inc. | 337,100 | 44,814 |
9,075,036 | |||
Materials (2.5%) | |||
Corteva Inc. | 7,087,000 | 233,729 | |
Martin Marietta Materials Inc. | 823,000 | 219,206 | |
RPM International Inc. | 2,570,000 | 217,602 | |
Avery Dennison Corp. | 1,167,246 | 161,535 | |
International Paper Co. | 2,376,429 | 103,969 | |
Vulcan Materials Co. | 667,350 | 96,659 | |
1,032,700 | |||
Other (0.6%) | |||
SPDR S&P 500 ETF Trust | 803,940 | 262,518 |
Shares | Market Value• ($000) | ||
Real Estate (1.5%) | |||
Prologis Inc. | 3,145,211 | 312,005 | |
Crown Castle International Corp. | 650,579 | 101,620 | |
Sun Communities Inc. | 720,000 | 99,094 | |
Equity LifeStyle Properties Inc. | 1,600,000 | 94,704 | |
607,423 | |||
Utilities (0.6%) | |||
PPL Corp. | 7,498,403 | 206,206 | |
Southern Co. | 994,110 | 57,112 | |
263,318 | |||
Total Common Stocks (Cost $33,318,735) | 40,793,507 | ||
Temporary Cash Investments (3.0%) | |||
Money Market Fund (2.9%) | |||
2,3 | Vanguard Market Liquidity Fund, 0.112% | 12,170,396 | 1,217,040 |
Face Amount ($000) | |||
U.S. Government and Agency Obligations (0.1%) | |||
4 | U.S. Cash Management Bill, 0.114%, 3/23/21 | 5,972 | 5,969 |
4 | U.S. Treasury Bill, 0.094%, 11/3/20 | 31,000 | 31,000 |
36,969 | |||
Total Temporary Cash Investments (Cost $1,253,720) | 1,254,009 | ||
Total Investments (100.1%) (Cost $34,572,455) | 42,047,516 | ||
Other Assets and Liabilities—Net (-0.1%) | (59,177) | ||
Net Assets (100%) | 41,988,339 | ||
Cost is in $000. |
• | See Note A in Notes to Financial Statements. |
* | Non-income-producing security. |
1 | Includes partial security positions on loan to broker-dealers. The total value of securities on loan is $81,149,000. |
2 | Affiliated money market fund available only to Vanguard funds and certain trusts and accounts managed by Vanguard. Rate shown is the 7-day yield. |
3 | Collateral of $84,206,000 was received for securities on loan, of which $60,754,000 is held in Vanguard Market Liquidity Fund and $23,452,000 is held in cash. |
4 | Securities with a value of $36,969,000 have been segregated as initial margin for open futures contracts. |
ADR—American Depositary Receipt. |
Futures Contracts | ||||
($000) | ||||
Expiration | Number of Long (Short) Contracts | Notional Amount | Value and Unrealized Appreciation (Depreciation) | |
Long Futures Contracts | ||||
E-mini S&P 500 Index | December 2020 | 3,089 | 504,233 | (22,696) |
($000s, except shares and per-share amounts) | Amount |
Assets | |
Investments in Securities, at Value | |
Unaffiliated Issuers (Cost $33,355,704) | 40,830,476 |
Affiliated Issuers (Cost $1,216,751) | 1,217,040 |
Total Investments in Securities | 42,047,516 |
Investment in Vanguard | 1,804 |
Cash | 23,452 |
Cash Collateral Pledged—Futures Contracts | 1,490 |
Receivables for Investment Securities Sold | 50,109 |
Receivables for Accrued Income | 47,147 |
Receivables for Capital Shares Issued | 8,415 |
Total Assets | 42,179,933 |
Liabilities | |
Due to Custodian | 34,592 |
Payables for Investment Securities Purchased | 31,851 |
Collateral for Securities on Loan | 84,206 |
Payables to Investment Advisor | 13,291 |
Payables for Capital Shares Redeemed | 19,407 |
Payables to Vanguard | 2,282 |
Variation Margin Payable—Futures Contracts | 5,965 |
Total Liabilities | 191,594 |
Net Assets | 41,988,339 |
At October 31, 2020, net assets consisted of: | |
Paid-in Capital | 31,615,538 |
Total Distributable Earnings (Loss) | 10,372,801 |
Net Assets | 41,988,339 |
Investor Shares—Net Assets | |
Applicable to 315,554,045 outstanding $.001 par value shares of beneficial interest (unlimited authorization) | 10,996,775 |
Net Asset Value Per Share—Investor Shares | $34.85 |
Admiral Shares—Net Assets | |
Applicable to 501,165,208 outstanding $.001 par value shares of beneficial interest (unlimited authorization) | 30,991,564 |
Net Asset Value Per Share—Admiral Shares | $61.84 |
Year Ended October 31, 2020 | |
($000) | |
Investment Income | |
Income | |
Dividends—Unaffiliated Issuers1 | 826,838 |
Dividends—Affiliated Issuers | 233 |
Interest—Unaffiliated Issuers | 326 |
Interest—Affiliated Issuers | 13,133 |
Securities Lending—Net | 1,895 |
Total Income | 842,425 |
Expenses | |
Investment Advisory Fees—Note B | |
Basic Fee | 55,080 |
Performance Adjustment | (4,634) |
The Vanguard Group—Note C | |
Management and Administrative—Investor Shares | 23,411 |
Management and Administrative—Admiral Shares | 42,531 |
Marketing and Distribution—Investor Shares | 900 |
Marketing and Distribution—Admiral Shares | 1,159 |
Custodian Fees | 362 |
Auditing Fees | 38 |
Shareholders’ Reports—Investor Shares | 718 |
Shareholders’ Reports—Admiral Shares | 461 |
Trustees’ Fees and Expenses | 67 |
Total Expenses | 120,093 |
Net Investment Income | 722,332 |
Realized Net Gain (Loss) | |
Investment Securities Sold—Unaffiliated Issuers | 2,991,555 |
Investment Securities Sold—Affiliated Issuers | 18,580 |
Futures Contracts | 194,020 |
Foreign Currencies | (340) |
Realized Net Gain (Loss) | 3,203,815 |
Change in Unrealized Appreciation (Depreciation) | |
Investment Securities—Unaffiliated Issuers | (2,668,753) |
Investment Securities—Affiliated Issuers | (16,604) |
Futures Contracts | (47,821) |
Foreign Currencies | 338 |
Change in Unrealized Appreciation (Depreciation) | (2,732,840) |
Net Increase (Decrease) in Net Assets Resulting from Operations | 1,193,307 |
1 | Dividends are net of foreign withholding taxes of $12,538,000. |
Year Ended October 31, | ||
2020 ($000) | 2019 ($000) | |
Increase (Decrease) in Net Assets | ||
Operations | ||
Net Investment Income | 722,332 | 1,021,147 |
Realized Net Gain (Loss) | 3,203,815 | 3,748,740 |
Change in Unrealized Appreciation (Depreciation) | (2,732,840) | (93,447) |
Net Increase (Decrease) in Net Assets Resulting from Operations | 1,193,307 | 4,676,440 |
Distributions1 | ||
Investor Shares | (1,132,159) | (1,149,738) |
Admiral Shares | (3,219,357) | (3,272,645) |
Total Distributions | (4,351,516) | (4,422,383) |
Capital Share Transactions | ||
Investor Shares | (360,690) | (15,087) |
Admiral Shares | (633,591) | (284,508) |
Net Increase (Decrease) from Capital Share Transactions | (994,281) | (299,595) |
Total Increase (Decrease) | (4,152,490) | (45,538) |
Net Assets | ||
Beginning of Period | 46,140,829 | 46,186,367 |
End of Period | 41,988,339 | 46,140,829 |
1 | Certain prior-period numbers have been reclassified to conform with the current-period presentation. |
Investor Shares | |||||
For a Share Outstanding Throughout Each Period | Year Ended October 31, | ||||
2020 | 2019 | 2018 | 2017 | 2016 | |
Net Asset Value, Beginning of Period | $37.22 | $37.39 | $38.81 | $35.03 | $36.73 |
Investment Operations | |||||
Net Investment Income1 | .551 | .775 | .783 | .750 | .847 |
Net Realized and Unrealized Gain (Loss) on Investments | .607 | 2.628 | .950 | 5.847 | .096 |
Total from Investment Operations | 1.158 | 3.403 | 1.733 | 6.597 | .943 |
Distributions | |||||
Dividends from Net Investment Income | (.635) | (.844) | (.740) | (.851) | (.781) |
Distributions from Realized Capital Gains | (2.893) | (2.729) | (2.413) | (1.966) | (1.862) |
Total Distributions | (3.528) | (3.573) | (3.153) | (2.817) | (2.643) |
Net Asset Value, End of Period | $34.85 | $37.22 | $37.39 | $38.81 | $35.03 |
Total Return2 | 2.93% | 10.82% | 4.44% | 19.60% | 2.86% |
Ratios/Supplemental Data | |||||
Net Assets, End of Period (Millions) | $10,997 | $12,119 | $12,061 | $13,638 | $13,773 |
Ratio of Total Expenses to Average Net Assets3 | 0.34% | 0.33% | 0.33% | 0.34% | 0.33% |
Ratio of Net Investment Income to Average Net Assets | 1.61% | 2.20% | 2.04% | 2.01% | 2.46% |
Portfolio Turnover Rate | 61% | 32% | 29% | 32% | 33% |
1 | Calculated based on average shares outstanding. |
2 | 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. |
3 | Includes performance-based investment advisory fee increases (decreases) of (0.01%), (0.03%), (0.03%), (0.02%), and (0.03%). |
Admiral Shares | |||||
For a Share Outstanding Throughout Each Period | Year Ended October 31, | ||||
2020 | 2019 | 2018 | 2017 | 2016 | |
Net Asset Value, Beginning of Period | $66.06 | $66.35 | $68.88 | $62.18 | $65.20 |
Investment Operations | |||||
Net Investment Income1 | 1.027 | 1.426 | 1.443 | 1.377 | 1.552 |
Net Realized and Unrealized Gain (Loss) on Investments | 1.065 | 4.675 | 1.682 | 10.376 | .168 |
Total from Investment Operations | 2.092 | 6.101 | 3.125 | 11.753 | 1.720 |
Distributions | |||||
Dividends from Net Investment Income | (1.178) | (1.547) | (1.371) | (1.565) | (1.437) |
Distributions from Realized Capital Gains | (5.134) | (4.844) | (4.284) | (3.488) | (3.303) |
Total Distributions | (6.312) | (6.391) | (5.655) | (5.053) | (4.740) |
Net Asset Value, End of Period | $61.84 | $66.06 | $66.35 | $68.88 | $62.18 |
Total Return2 | 3.00% | 10.93% | 4.52% | 19.68% | 2.94% |
Ratios/Supplemental Data | |||||
Net Assets, End of Period (Millions) | $30,992 | $34,022 | $34,126 | $35,514 | $30,991 |
Ratio of Total Expenses to Average Net Assets3 | 0.26% | 0.25% | 0.25% | 0.26% | 0.25% |
Ratio of Net Investment Income to Average Net Assets | 1.69% | 2.28% | 2.12% | 2.09% | 2.54% |
Portfolio Turnover Rate | 61% | 32% | 29% | 32% | 33% |
1 | Calculated based on average shares outstanding. |
2 | 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. |
3 | Includes performance-based investment advisory fee increases (decreases) of (0.01%), (0.03%), (0.03%), (0.02%), and (0.03%). |
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. |
B. | The investment advisory firms Lazard Asset Management LLC, Sanders Capital, LLC, Hotchkis and Wiley Capital Management, LLC, and, beginning December 2019, Aristotle Capital Management, LLC, each provide investment advisory services to a portion of the fund for a fee calculated at an annual percentage rate of average net assets managed by the advisor. The basic fee of Lazard Asset Management LLC is subject to quarterly adjustments based on performance relative to the S&P 500 Index for the preceding three years. The basic fee of Sanders Capital, LLC, is subject to quarterly adjustments based on performance relative to the Russell 3000 Index for the preceding five years. The basic fee of Hotchkis and Wiley Capital Management, LLC, is subject to quarterly adjustments based on performance relative to the MSCI US Investable Market 2500 Index for the preceding five years. In accordance with the advisory contract entered into with Aristotle Capital Management, LLC, beginning February 1, 2021, the investment advisory fee will be subject to quarterly adjustments based on performance relative to the S&P 500 Index since January 31, 2020. Until November 2019, a portion of the fund was managed by Barrow, Hanley, Mewhinney & Strauss, LLC. The basic fee paid to Barrow, Hanley, Mewhinney & Strauss, LLC, was subject to quarterly adjustments based on performance relative to the MSCI US Prime Market 750 Index for the preceding three years. |
C. | In accordance with the terms of a Funds' Service Agreement (the “FSA”) between Vanguard and the fund, Vanguard furnishes to the fund corporate management, administrative, marketing, distribution and cash management 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 and are generally settled twice a month. |
D. | Various inputs may be used to determine the value of the fund’s investments and derivatives. 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 ($000) | Level 2 ($000) | Level 3 ($000) | Total ($000) | |
Investments | ||||
Assets | ||||
Common Stocks | 39,520,194 | 1,273,313 | — | 40,793,507 |
Temporary Cash Investments | 1,217,040 | 36,969 | — | 1,254,009 |
Total | 40,737,234 | 1,310,282 | — | 42,047,516 |
Derivative Financial Instruments | ||||
Liabilities | ||||
Future Contracts1 | 5,965 | — | — | 5,965 |
1 | Represents variation margin on the last day of the reporting period. |
E. | Permanent differences between book-basis and tax-basis components of net assets are reclassified among capital accounts in the financial statements to reflect their tax character. These reclassifications have no effect on net assets or net asset value per share. As of period end, permanent differences primarily attributable to the accounting for foreign currency transactions and distributions in connection with fund share redemptions were reclassified between the following accounts: |
Amount ($000) | |
Paid-in Capital | 440,644 |
Total Distributable Earnings (Loss) | (440,644) |
Amount ($000) | |
Undistributed Ordinary Income | 333,557 |
Undistributed Long-Term Gains | 2,651,393 |
Capital Loss Carryforwards | — |
Qualified Late-Year Losses | — |
Net Unrealized Gains (Losses) | 7,387,851 |
Year Ended October 31, | ||
2020 Amount ($000) | 2019 Amount ($000) | |
Ordinary Income* | 810,275 | 1,262,960 |
Long-Term Capital Gains | 3,541,241 | 3,159,424 |
Total | 4,351,516 | 4,422,384 |
* | Includes short-term capital gains, if any. |
Amount ($000) | |
Tax Cost | 34,660,044 |
Gross Unrealized Appreciation | 11,164,746 |
Gross Unrealized Depreciation | (3,777,274) |
Net Unrealized Appreciation (Depreciation) | 7,387,472 |
F. | During the year ended October 31, 2020, the fund purchased $25,507,927,000 of investment securities and sold $29,354,938,000 of investment securities, other than temporary cash investments. |
G. | Capital share transactions for each class of shares were: |
Year Ended October 31, | |||||
2020 | 2019 | ||||
Amount ($000) | Shares (000) | Amount ($000) | Shares (000) | ||
Investor Shares | |||||
Issued | 1,105,745 | 35,975 | 651,279 | 18,910 | |
Issued in Lieu of Cash Distributions | 1,106,299 | 30,946 | 1,122,692 | 35,211 | |
Redeemed | (2,572,734) | (76,946) | (1,789,058) | (51,114) | |
Net Increase (Decrease)—Investor Shares | (360,690) | (10,025) | (15,087) | 3,007 | |
Admiral Shares | |||||
Issued | 2,289,454 | 38,346 | 1,513,788 | 24,434 | |
Issued in Lieu of Cash Distributions | 3,023,063 | 47,668 | 3,089,248 | 54,596 | |
Redeemed | (5,946,108) | (99,892) | (4,887,544) | (78,289) | |
Net Increase (Decrease)—Admiral Shares | (633,591) | (13,878) | (284,508) | 741 |
H. | Transactions during the period in investments where the issuer is another member of The Vanguard Group were as follows: |
Current Period Transactions | ||||||||
Oct. 31, 2019 Market Value ($000) | Purchases at Cost ($000) | Proceeds from Securities Sold ($000) | Realized Net Gain (Loss) ($000) | Change in Unrealized App. (Dep.) ($000) | Income ($000) | Capital Gain Distributions Received ($000) | Oct. 31, 2020 Market Value ($000) | |
Vanguard Market Liquidity Fund | 1,799,860 | NA1 | NA1 | 301 | 184 | 13,133 | — | 1,217,040 |
Vanguard Value ETF | 29,097 | — | 30,588 | 18,279 | (16,788) | 233 | — | — |
Total | 1,828,957 | 18,580 | (16,604) | 13,366 | — | 1,217,040 |
1 | Not applicable—purchases and sales are for temporary cash investment purposes. |
I. | Management has determined that no events or transactions occurred subsequent to October 31, 2020, that would require recognition or disclosure in these financial statements. |
Philadelphia, Pennsylvania
December 17, 2020
Joseph Brennan | James M. Norris |
Mortimer J. Buckley | Thomas M. Rampulla |
Gregory Davis | Karin A. Risi |
John James | Anne E. Robinson |
John T. Marcante | Michael Rollings |
Chris D. McIsaac | Lauren Valente |
All rights reserved.
Vanguard Marketing Corporation, Distributor.
Item 2: Code of Ethics. The Registrant has adopted a code of ethics that applies to the Registrant’s principal executive officer, principal financial officer, principal accounting officer or controller or persons performing similar functions. The Code of Ethics was amended during the reporting period covered by this report to make certain technical, non-material changes.
Item 3: Audit Committee Financial Expert. All members of the Audit Committee have been determined by the Registrant’s Board of Trustees to be Audit Committee Financial Experts and to be independent: F. Joseph Loughrey, Mark Loughridge, Sarah Bloom Raskin, and Peter F. Volanakis.
Item 4: Principal Accountant Fees and Services.
(a) | Audit Fees. |
Audit Fees of the Registrant.
Fiscal Year Ended October 31, 2020: $80,000
Fiscal Year Ended October 31, 2019: $88,000
Aggregate Audit Fees of Registered Investment Companies in the Vanguard Group.
Fiscal Year Ended October 31, 2020: $10,761,407
Fiscal Year Ended October 31, 2019: $9,568,215
Includes fees billed in connection with audits of the Registrant, other registered investment companies in the Vanguard complex, The Vanguard Group, Inc., and Vanguard Marketing Corporation.
(b) | Audit-Related Fees. |
Fiscal Year Ended October 31, 2020: $2,915,863
Fiscal Year Ended October 31, 2019: $3,012,031
Includes fees billed in connection with assurance and related services provided to the Registrant, other registered investment companies in the Vanguard complex, The Vanguard Group, Inc., and Vanguard Marketing Corporation.
(c) | Tax Fees. |
Fiscal Year Ended October 31, 2020: $247,168
Fiscal Year Ended October 31, 2019: $357,238
Includes fees billed in connection with tax compliance, planning, and advice services provided to the Registrant, other registered investment companies in the Vanguard complex, The Vanguard Group, Inc., and Vanguard Marketing Corporation.
(d) | All Other Fees. |
Fiscal Year Ended October 31, 2020: $115,000
Fiscal Year Ended October 31, 2019: $0
Includes fees billed for services related to tax reported information provided to the Registrant, other registered investment companies in the Vanguard complex, The Vanguard Group, Inc., and Vanguard Marketing Corporation.
(e) (1) Pre-Approval Policies. The policy of the Registrant’s Audit Committee is to consider, and, if appropriate, approve before the principal accountant is engaged for such services, all specific audit and non-audit services provided to: the Registrant, other registered investment companies in the Vanguard complex, The Vanguard Group, Inc., and entities controlled by The Vanguard Group, Inc. that provide ongoing services to the Registrant. In making a determination, the Audit Committee considers whether the services are consistent with maintaining the principal accountant’s independence.
In the event of a contingency situation in which the principal accountant is needed to provide services in between scheduled Audit Committee meetings, the Chairman of the Audit Committee would be called on to consider and, if appropriate, pre-approve audit or permitted non-audit services in an amount sufficient to complete services through the next Audit Committee meeting, and to determine if such services would be consistent with maintaining the accountant’s independence. At the next scheduled Audit Committee meeting, services and fees would be presented to the Audit Committee for formal consideration, and, if appropriate, approval by the entire Audit Committee. The Audit Committee would again consider whether such services and fees are consistent with maintaining the principal accountant’s independence.
The Registrant’s Audit Committee is informed at least annually of all audit and non-audit services provided by the principal accountant to the Vanguard complex, whether such services are provided to: the Registrant, other registered investment companies in the Vanguard complex, The Vanguard Group, Inc., or other entities controlled by The Vanguard Group, Inc. that provide ongoing services to the Registrant.
(2) No percentage of the principal accountant’s fees or services were approved pursuant to the waiver provision of paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X.
(f) For the most recent fiscal year, over 50% of the hours worked under the principal accountant’s engagement were not performed by persons other than full-time, permanent employees of the principal accountant.
(g) | Aggregate Non-Audit Fees. |
Fiscal Year Ended October 31, 2020: $362,168
Fiscal Year Ended October 31, 2019: $357,238
Includes fees billed for non-audit services provided to the Registrant, other registered investment companies in the Vanguard complex, The Vanguard Group, Inc., and Vanguard Marketing Corporation.
(h) For the most recent fiscal year, the Audit Committee has determined that the provision of all non-audit services was consistent with maintaining the principal accountant’s independence.
Item 5: Audit Committee of Listed Registrants.
The Registrant is a listed issuer as defined in rule 10A-3 under the Securities Exchange Act of 1934 (“Exchange Act”). The Registrant has a separately-designated standing audit committee established in accordance with Section 3(a)(58)(A) of the Exchange Act. The Registrant’s audit committee members are: F. Joseph Loughrey, Mark Loughridge, Sarah Bloom Raskin, and Peter F. Volanakis.
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. In September 2020, a third-party service provider began performing certain administrative and accounting services for Vanguard Windsor Fund and Vanguard Windsor II Fund. There were no other significant changes in the 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) | Code of Ethics. | |
(b) | 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 WINDSOR FUNDS | ||
BY: | /s/ MORTIMER J. BUCKLEY* | |
MORTIMER J. BUCKLEY | ||
CHIEF EXECUTIVE OFFICER |
Date: December 18, 2020
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 WINDSOR FUNDS | ||
BY: | /s/ MORTIMER J. BUCKLEY* | |
MORTIMER J. BUCKLEY | ||
CHIEF EXECUTIVE OFFICER |
Date: December 18, 2020
VANGUARD WINDSOR FUNDS | ||
BY: | /s/ JOHN BENDL* | |
JOHN BENDL | ||
CHIEF FINANCIAL OFFICER |
Date: December 18, 2020
* By: /s/ Anne E. Robinson
Anne E. Robinson, pursuant to a Power of Attorney filed on December 18, 2020 (see File Number 33-64845), Incorporated by Reference.