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, 2020—April 30, 2021
Item 1: Reports to Shareholders
![](https://capedge.com/proxy/N-CSRS/0001104659-21-086775/img04398cc81.jpg)
About Your Fund’s Expenses | 1 |
Financial Statements | 4 |
Trustees Approve Advisory Arrangements | 19 |
Liquidity Risk Management | 21 |
• | 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 April 30, 2021 | |||
Windsor Fund | Beginning Account Value 10/31/2020 | Ending Account Value 4/30/2021 | Expenses Paid During Period |
Based on Actual Fund Return | |||
Investor Shares | $1,000.00 | $1,445.00 | $1.82 |
Admiral™ Shares | 1,000.00 | 1,445.40 | 1.21 |
Based on Hypothetical 5% Yearly Return | |||
Investor Shares | $1,000.00 | $1,023.31 | $1.51 |
Admiral Shares | 1,000.00 | 1,023.80 | 1.00 |
Communication Services | 3.6% |
Consumer Discretionary | 11.1 |
Consumer Staples | 4.6 |
Energy | 6.1 |
Financials | 24.6 |
Health Care | 13.0 |
Industrials | 8.0 |
Information Technology | 13.4 |
Materials | 3.9 |
Real Estate | 5.6 |
Utilities | 6.1 |
Other | 0.0 |
Shares | Market Value• ($000) | ||
Common Stocks (97.9%) | |||
Communication Services (3.5%) | |||
* | T-Mobile US Inc. | 2,703,081 | 357,158 |
* | Alphabet Inc. Class A | 79,020 | 185,974 |
Electronic Arts Inc. | 937,778 | 133,239 | |
* | Charter Communications Inc. Class A | 191,309 | 128,837 |
Verizon Communications Inc. | 220,056 | 12,717 | |
817,925 | |||
Consumer Discretionary (10.9%) | |||
* | Dollar Tree Inc. | 2,487,668 | 285,833 |
Lear Corp. | 1,287,305 | 236,658 | |
* | Compass Group plc | 10,561,979 | 229,768 |
* | Gildan Activewear Inc. | 6,528,044 | 226,458 |
* | PVH Corp. | 1,755,621 | 198,701 |
* | Ford Motor Co. | 15,918,728 | 183,702 |
VF Corp. | 1,913,631 | 167,749 | |
* | CarMax Inc. | 1,247,843 | 166,263 |
* | Mohawk Industries Inc. | 793,348 | 163,033 |
* | General Motors Co. | 2,719,996 | 155,638 |
Newell Brands Inc. | 5,632,130 | 151,842 | |
* | Las Vegas Sands Corp. | 2,222,301 | 136,138 |
TJX Cos. Inc. | 1,356,819 | 96,334 | |
* | Skechers USA Inc. Class A | 1,637,717 | 79,413 |
* | Booking Holdings Inc. | 28,294 | 69,776 |
2,547,306 | |||
Consumer Staples (4.5%) | |||
Philip Morris International Inc. | 3,557,698 | 337,981 | |
Keurig Dr Pepper Inc. | 8,196,949 | 293,861 | |
Tyson Foods Inc. Class A | 2,757,268 | 213,551 | |
Archer-Daniels-Midland Co. | 1,647,158 | 103,985 | |
Sysco Corp. | 975,299 | 82,637 | |
Kellogg Co. | 535,631 | 33,434 | |
1,065,449 | |||
Energy (5.9%) | |||
Halliburton Co. | 12,292,314 | 240,438 | |
Canadian Natural Resources Ltd. | 7,818,393 | 237,523 | |
Exxon Mobil Corp. | 3,089,288 | 176,831 | |
Baker Hughes Co. Class A | 7,266,569 | 145,913 | |
NOV Inc. | 8,378,161 | 125,253 |
Shares | Market Value• ($000) | ||
1 | Royal Dutch Shell plc Class A ADR | 3,001,631 | 114,062 |
Schlumberger NV | 3,959,868 | 107,114 | |
Diamondback Energy Inc. | 1,294,074 | 105,765 | |
ConocoPhillips | 1,654,208 | 84,596 | |
Cenovus Energy Inc. | 6,621,254 | 51,447 | |
1,388,942 | |||
Financials (24.1%) | |||
Bank of America Corp. | 17,923,130 | 726,424 | |
MetLife Inc. | 7,244,536 | 460,970 | |
Charles Schwab Corp. | 5,882,358 | 414,118 | |
Raymond James Financial Inc. | 2,985,946 | 390,502 | |
Chubb Ltd. | 1,982,794 | 340,228 | |
Equitable Holdings Inc. | 9,612,688 | 329,042 | |
Wells Fargo & Co. | 6,551,977 | 295,167 | |
* | Athene Holding Ltd. Class A | 4,688,751 | 279,778 |
Capital One Financial Corp. | 1,755,544 | 261,717 | |
M&T Bank Corp. | 1,633,926 | 257,654 | |
American International Group Inc. | 4,745,297 | 229,910 | |
Zions Bancorp NA | 3,839,750 | 214,258 | |
S&P Global Inc. | 523,547 | 204,388 | |
Citigroup Inc. | 2,779,032 | 197,978 | |
JPMorgan Chase & Co. | 1,102,065 | 169,509 | |
Travelers Cos. Inc. | 975,949 | 150,940 | |
Goldman Sachs Group Inc. | 406,137 | 141,518 | |
Voya Financial Inc. | 1,996,494 | 135,402 | |
ING Groep NV ADR | 9,676,882 | 123,283 | |
Axis Capital Holdings Ltd. | 1,829,345 | 102,077 | |
Unum Group | 2,655,523 | 75,045 | |
Morgan Stanley | 850,884 | 70,240 | |
UBS Group AG (Registered) | 2,753,680 | 42,104 | |
Invesco Ltd. | 852,369 | 23,014 | |
5,635,266 | |||
Health Care (12.7%) | |||
UnitedHealth Group Inc. | 895,956 | 357,307 | |
CVS Health Corp. | 4,408,952 | 336,844 | |
Medtronic plc | 1,913,797 | 250,554 | |
* | Boston Scientific Corp. | 4,470,116 | 194,897 |
* | Centene Corp. | 3,115,386 | 192,344 |
Eli Lilly & Co. | 1,019,330 | 186,303 | |
* | Vertex Pharmaceuticals Inc. | 783,203 | 170,895 |
1 | AstraZeneca plc ADR | 2,957,921 | 156,977 |
* | Regeneron Pharmaceuticals Inc. | 299,649 | 144,221 |
* | Seagen Inc. | 987,182 | 141,917 |
Anthem Inc. | 370,046 | 140,392 | |
McKesson Corp. | 700,633 | 131,411 | |
Sanofi | 1,144,454 | 119,987 | |
Bristol-Myers Squibb Co. | 1,415,124 | 88,332 | |
Cardinal Health Inc. | 1,305,773 | ��� 78,790 | |
Pfizer Inc. | 2,033,820 | 78,607 | |
Cigna Corp. | 298,096 | 74,229 | |
* | Biogen Inc. | 272,471 | 72,840 |
Amgen Inc. | 269,795 | 64,654 | |
2,981,501 |
Shares | Market Value• ($000) | ||
Industrials (7.8%) | |||
Westinghouse Air Brake Technologies Corp. | 5,477,503 | 449,539 | |
Raytheon Technologies Corp. | 4,230,887 | 352,179 | |
General Electric Co. | 21,151,885 | 277,513 | |
Leidos Holdings Inc. | 2,102,787 | 212,970 | |
Stanley Black & Decker Inc. | 634,919 | 131,282 | |
Textron Inc. | 2,033,758 | 130,649 | |
JB Hunt Transport Services Inc. | 727,497 | 124,191 | |
* | Airbus SE | 1,011,955 | 121,697 |
Dover Corp. | 218,597 | 32,612 | |
1,832,632 | |||
Information Technology (13.1%) | |||
Cognizant Technology Solutions Corp. Class A | 4,806,667 | 386,456 | |
Cisco Systems Inc. | 7,362,280 | 374,814 | |
Broadcom Inc. | 542,940 | 247,689 | |
Amdocs Ltd. | 3,037,038 | 233,062 | |
* | FleetCor Technologies Inc. | 775,018 | 222,988 |
*,1 | VMware Inc. Class A | 1,327,458 | 213,495 |
* | GoDaddy Inc. Class A | 2,407,113 | 208,986 |
Hewlett Packard Enterprise Co. | 11,420,593 | 182,958 | |
* | F5 Networks Inc. | 944,991 | 176,486 |
* | Micron Technology Inc. | 1,872,658 | 161,180 |
Genpact Ltd. | 2,653,110 | 126,102 | |
Oracle Corp. | 1,635,666 | 123,967 | |
NXP Semiconductors NV | 531,782 | 102,373 | |
KLA Corp. | 317,969 | 100,272 | |
* | Lumentum Holdings Inc. | 1,159,958 | 98,654 |
Samsung Electronics Co. Ltd. | 942,669 | 68,707 | |
Juniper Networks Inc. | 1,995,063 | 50,655 | |
3,078,844 | |||
Materials (3.9%) | |||
Reliance Steel & Aluminum Co. | 1,445,771 | 231,772 | |
Celanese Corp. Class A | 1,416,355 | 221,872 | |
Dow Inc. | 2,664,763 | 166,548 | |
FMC Corp. | 1,246,434 | 147,378 | |
PPG Industries Inc. | 788,304 | 134,989 | |
902,559 | |||
Other (0.0%) | |||
* | Allstar Coinv LLC | 1,647,100 | 2,044 |
Real Estate (5.5%) | |||
American Tower Corp. | 1,228,542 | 312,996 | |
VICI Properties Inc. | 9,546,539 | 302,625 | |
Americold Realty Trust | 5,988,855 | 241,890 | |
Camden Property Trust | 1,230,247 | 148,220 | |
Digital Realty Trust Inc. | 940,117 | 145,069 | |
Equinix Inc. | 191,298 | 137,880 | |
1,288,680 | |||
Utilities (6.0%) | |||
Exelon Corp. | 6,990,599 | 314,158 | |
Duke Energy Corp. | 2,083,307 | 209,768 | |
Edison International | 3,310,563 | 196,813 | |
Pinnacle West Capital Corp. | 2,107,564 | 178,405 | |
NRG Energy Inc. | 4,303,566 | 154,154 |
Shares | Market Value• ($000) | ||
Consolidated Edison Inc. | 1,545,010 | 119,599 | |
Avangrid Inc. | 2,237,135 | 113,870 | |
* | Iberdrola SA (XMAD) | 8,092,906 | 109,367 |
1,396,134 | |||
Total Common Stocks (Cost $16,331,314) | 22,937,282 | ||
Temporary Cash Investments (3.6%) | |||
Money Market Fund (3.1%) | |||
2,3 | Vanguard Market Liquidity Fund, 0.068% | 7,131,919 | 713,192 |
Face Amount ($000) | |||
Repurchase Agreement (0.5%) | |||
Bank of America Securities LLC 0.010%, 5/3/21 (Dated 4/30/21, Repurchase Value $122,600,000, collateralized by Federal National Mortgage Association 2.000%–2.500%, 2/1/36–6/1/50, with a value of $125,052,000) | 122,600 | 122,600 | |
Total Temporary Cash Investments (Cost $835,755) | 835,792 | ||
Total Investments (101.5%) (Cost $17,167,069) | 23,773,074 | ||
Other Assets and Liabilities—Net (-1.5%) | (345,635) | ||
Net Assets (100%) | 23,427,439 | ||
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 $316,051,000. |
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 $322,454,000 was received for securities on loan, of which $322,092,000 is held in Vanguard Market Liquidity Fund and $362,000 is held in cash. |
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 | June 2021 | 1,581 | 329,986 | 6,197 |
($000s, except shares and per-share amounts) | Amount |
Assets | |
Investments in Securities, at Value | |
Unaffiliated Issuers (Cost $16,453,914) | 23,059,882 |
Affiliated Issuers (Cost $713,155) | 713,192 |
Total Investments in Securities | 23,773,074 |
Investment in Vanguard | 829 |
Cash | 362 |
Cash Collateral Pledged—Futures Contracts | 17,394 |
Receivables for Investment Securities Sold | 199,684 |
Receivables for Accrued Income | 10,210 |
Receivables for Capital Shares Issued | 8,787 |
Total Assets | 24,010,340 |
Liabilities | |
Due to Custodian | 47,525 |
Payables for Investment Securities Purchased | 180,912 |
Collateral for Securities on Loan | 322,454 |
Payables to Investment Advisor | 3,759 |
Payables for Capital Shares Redeemed | 25,200 |
Payables to Vanguard | 759 |
Variation Margin Payable—Futures Contracts | 2,292 |
Total Liabilities | 582,901 |
Net Assets | 23,427,439 |
At April 30, 2021, net assets consisted of: | |
Paid-in Capital | 15,685,635 |
Total Distributable Earnings (Loss) | 7,741,804 |
Net Assets | 23,427,439 |
Investor Shares—Net Assets | |
Applicable to 241,117,108 outstanding $.001 par value shares of beneficial interest (unlimited authorization) | 6,004,589 |
Net Asset Value Per Share—Investor Shares | $24.90 |
Admiral Shares—Net Assets | |
Applicable to 207,431,300 outstanding $.001 par value shares of beneficial interest (unlimited authorization) | 17,422,850 |
Net Asset Value Per Share—Admiral Shares | $83.99 |
Six Months Ended April 30, 2021 | |
($000) | |
Investment Income | |
Income | |
Dividends1 | 193,011 |
Interest2 | 238 |
Securities Lending—Net | 360 |
Total Income | 193,609 |
Expenses | |
Investment Advisory Fees—Note B | |
Basic Fee | 13,383 |
Performance Adjustment | (6,424) |
The Vanguard Group—Note C | |
Management and Administrative—Investor Shares | 5,988 |
Management and Administrative—Admiral Shares | 9,453 |
Marketing and Distribution—Investor Shares | 156 |
Marketing and Distribution—Admiral Shares | 194 |
Custodian Fees | 646 |
Shareholders’ Reports—Investor Shares | 15 |
Shareholders’ Reports—Admiral Shares | 10 |
Trustees’ Fees and Expenses | 5 |
Total Expenses | 23,426 |
Net Investment Income | 170,183 |
Realized Net Gain (Loss) | |
Investment Securities Sold2 | 978,763 |
Futures Contracts | 54,075 |
Foreign Currencies | (22) |
Realized Net Gain (Loss) | 1,032,816 |
Change in Unrealized Appreciation (Depreciation) | |
Investment Securities—Unaffiliated Issuers2 | 6,273,448 |
Futures Contracts | 16,500 |
Foreign Currencies | (23) |
Change in Unrealized Appreciation (Depreciation) | 6,289,925 |
Net Increase (Decrease) in Net Assets Resulting from Operations | 7,492,924 |
1 | Dividends are net of foreign withholding taxes of $1,962,000. |
2 | Interest income, realized net gain (loss), and change in unrealized appreciation (depreciation) from an affiliated company of the fund were $192,000, $3,000, and ($2,000), respectively. Purchases and sales are for temporary cash investment purposes. |
Six Months Ended April 30, 2021 | Year Ended October 31, 2020 | ||
($000) | ($000) | ||
Increase (Decrease) in Net Assets | |||
Operations | |||
Net Investment Income | 170,183 | 393,487 | |
Realized Net Gain (Loss) | 1,032,816 | 1,453,321 | |
Change in Unrealized Appreciation (Depreciation) | 6,289,925 | (2,814,038) | |
Net Increase (Decrease) in Net Assets Resulting from Operations | 7,492,924 | (967,230) | |
Distributions | |||
Investor Shares | (377,667) | (459,718) | |
Admiral Shares | (1,075,780) | (1,481,286) | |
Total Distributions | (1,453,447) | (1,941,004) | |
Capital Share Transactions | |||
Investor Shares | (149,871) | 647,387 | |
Admiral Shares | 272,792 | 329,826 | |
Net Increase (Decrease) from Capital Share Transactions | 122,921 | 977,213 | |
Total Increase (Decrease) | 6,162,398 | (1,931,021) | |
Net Assets | |||
Beginning of Period | 17,265,041 | 19,196,062 | |
End of Period | 23,427,439 | 17,265,041 |
Investor Shares | ||||||
For a Share Outstanding Throughout Each Period | Six Months Ended April 30, 2021 | Year Ended October 31, | ||||
2020 | 2019 | 2018 | 2017 | 2016 | ||
Net Asset Value, Beginning of Period | $18.55 | $21.76 | $22.02 | $23.38 | $19.70 | $21.06 |
Investment Operations | ||||||
Net Investment Income | .1721 | .4081 | .4191 | .4171 | .3631 | .394 |
Net Realized and Unrealized Gain (Loss) on Investments | 7.771 | (1.412) | 1.700 | (.753) | 4.345 | (.168) |
Total from Investment Operations | 7.943 | (1.004) | 2.119 | (.336) | 4.708 | .226 |
Distributions | ||||||
Dividends from Net Investment Income | (.216) | (.420) | (.426) | (.378) | (.433) | (.317) |
Distributions from Realized Capital Gains | (1.377) | (1.786) | (1.953) | (.646) | (.595) | (1.269) |
Total Distributions | (1.593) | (2.206) | (2.379) | (1.024) | (1.028) | (1.586) |
Net Asset Value, End of Period | $24.90 | $18.55 | $21.76 | $22.02 | $23.38 | $19.70 |
Total Return2 | 44.50% | -5.64% | 11.59% | -1.69% | 24.53% | 1.27% |
Ratios/Supplemental Data | ||||||
Net Assets, End of Period (Millions) | $6,005 | $4,570 | $4,549 | $4,468 | $5,191 | $4,896 |
Ratio of Total Expenses to Average Net Assets3 | 0.30% | 0.29% | 0.30% | 0.31% | 0.31% | 0.30% |
Ratio of Net Investment Income to Average Net Assets | 1.57% | 2.14% | 2.04% | 1.76% | 1.66% | 2.01% |
Portfolio Turnover Rate | 17% | 51% | 39% | 33% | 26% | 26% |
The expense ratio and net investment income ratio for the current period have been annualized. |
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 (0.06%), (0.07%), (0.05%), (0.05%), (0.05%), and (0.06%) |
Admiral Shares | ||||||
For a Share Outstanding Throughout Each Period | Six Months Ended April 30, 2021 | Year Ended October 31, | ||||
2020 | 2019 | 2018 | 2017 | 2016 | ||
Net Asset Value, Beginning of Period | $62.58 | $73.41 | $74.29 | $78.88 | $66.48 | $71.04 |
Investment Operations | ||||||
Net Investment Income | .6151 | 1.4481 | 1.4841 | 1.4841 | 1.2951 | 1.398 |
Net Realized and Unrealized Gain (Loss) on Investments | 26.199 | (4.770) | 5.735 | (2.538) | 14.650 | (.545) |
Total from Investment Operations | 26.814 | (3.322) | 7.219 | (1.054) | 15.945 | .853 |
Distributions | ||||||
Dividends from Net Investment Income | (.759) | (1.485) | (1.509) | (1.358) | (1.538) | (1.134) |
Distributions from Realized Capital Gains | (4.645) | (6.023) | (6.590) | (2.178) | (2.007) | (4.279) |
Total Distributions | (5.404) | (7.508) | (8.099) | (3.536) | (3.545) | (5.413) |
Net Asset Value, End of Period | $83.99 | $62.58 | $73.41 | $74.29 | $78.88 | $66.48 |
Total Return2 | 44.54% | -5.55% | 11.71% | -1.59% | 24.63% | 1.41% |
Ratios/Supplemental Data | ||||||
Net Assets, End of Period (Millions) | $17,423 | $12,695 | $14,647 | $13,948 | $14,366 | $11,703 |
Ratio of Total Expenses to Average Net Assets3 | 0.20% | 0.19% | 0.20% | 0.21% | 0.21% | 0.20% |
Ratio of Net Investment Income to Average Net Assets | 1.66% | 2.24% | 2.14% | 1.86% | 1.76% | 2.11% |
Portfolio Turnover Rate | 17% | 51% | 39% | 33% | 26% | 26% |
The expense ratio and net investment income ratio for the current period have been annualized. |
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 (0.06%), (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 | 22,285,712 | 651,570 | — | 22,937,282 |
Temporary Cash Investments | 713,192 | 122,600 | — | 835,792 |
Total | 22,998,904 | 774,170 | — | 23,773,074 |
Derivative Financial Instruments | ||||
Assets | ||||
Futures Contracts1 | 6,197 | — | — | 6,197 |
1 | Includes cumulative appreciation (depreciation) on futures contracts and centrally cleared swaps, if any, as reported in the Schedule of Investments. Only current day’s variation margin is reported within the Statement of Assets and Liabilities. |
E. | As of April 30, 2021, gross unrealized appreciation and depreciation for investments and derivatives based on cost for U.S. federal income tax purposes were as follows: |
Amount ($000) | |
Tax Cost | 17,178,228 |
Gross Unrealized Appreciation | 6,907,218 |
Gross Unrealized Depreciation | (306,175) |
Net Unrealized Appreciation (Depreciation) | 6,601,043 |
F. | During the six months ended April 30, 2021, the fund purchased $3,509,384,000 of investment securities and sold $4,575,463,000 of investment securities, other than temporary cash investments. |
G. | Capital share transactions for each class of shares were: |
Six Months Ended April 30, 2021 | Year Ended October 31, 2020 | ||||
Amount ($000) | Shares (000) | Amount ($000) | Shares (000) | ||
Investor Shares | |||||
Issued | 214,345 | 9,401 | 754,962 | 45,996 | |
Issued in Connection with Acquisition of Vanguard Capital Value Fund | — | — | 696,113 | 37,613 | |
Issued in Lieu of Cash Distributions | 367,593 | 17,656 | 446,705 | 21,481 | |
Redeemed | (731,809) | (32,229) | (1,250,393) | (67,795) | |
Net Increase (Decrease)—Investor Shares | (149,871) | (5,172) | 647,387 | 37,295 |
Six Months Ended April 30, 2021 | Year Ended October 31, 2020 | ||||
Amount ($000) | Shares (000) | Amount ($000) | Shares (000) | ||
Admiral Shares | |||||
Issued | 727,441 | 9,356 | 1,082,877 | 17,290 | |
Issued in Lieu of Cash Distributions | 1,005,089 | 14,319 | 1,385,454 | 19,747 | |
Redeemed | (1,459,738) | (19,114) | (2,138,505) | (33,692) | |
Net Increase (Decrease)—Admiral Shares | 272,792 | 4,561 | 329,826 | 3,345 |
H. | Management has determined that no other events or transactions occurred subsequent to April 30, 2021, that would require recognition or disclosure in these financial statements. |
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Vanguard Marketing Corporation, Distributor.
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About Your Fund’s Expenses | 1 |
Financial Statements | 4 |
Trustees Approve Advisory Arrangements | 20 |
Liquidity Risk Management | 22 |
• | 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 April 30, 2021 | |||
Windsor II Fund | Beginning Account Value 10/31/2020 | Ending Account Value 4/30/2021 | Expenses Paid During Period |
Based on Actual Fund Return | |||
Investor Shares | $1,000.00 | $1,381.80 | $2.01 |
Admiral™ Shares | 1,000.00 | 1,382.50 | 1.54 |
Based on Hypothetical 5% Yearly Return | |||
Investor Shares | $1,000.00 | $1,023.11 | $1.71 |
Admiral Shares | 1,000.00 | 1,023.51 | 1.30 |
Communication Services | 8.0% |
Consumer Discretionary | 10.9 |
Consumer Staples | 4.8 |
Energy | 4.5 |
Financials | 20.0 |
Health Care | 17.3 |
Industrials | 8.2 |
Information Technology | 21.1 |
Materials | 2.1 |
Real Estate | 1.7 |
Utilities | 0.6 |
Other | 0.8 |
Shares | Market Value• ($000) | ||
Common Stocks (95.7%) | |||
Communication Services (7.7%) | |||
* | Alphabet Inc. Class A | 702,265 | 1,652,781 |
* | Alphabet Inc. Class C | 292,365 | 704,635 |
* | Facebook Inc. Class A | 1,722,738 | 560,028 |
* | Twitter Inc. | 4,540,000 | 250,699 |
News Corp. Class A | 8,603,610 | 225,372 | |
* | Discovery Inc. Class C | 6,905,548 | 223,118 |
* | Walt Disney Co. | 1,178,862 | 219,292 |
Vodafone Group plc ADR | 10,811,932 | 204,886 | |
Comcast Corp. Class A | 2,884,213 | 161,948 | |
Omnicom Group Inc. | 913,679 | 75,159 | |
Interpublic Group of Cos. Inc. | 2,230,783 | 70,827 | |
4,348,745 | |||
Consumer Discretionary (10.5%) | |||
Lennar Corp. Class A | 6,047,759 | 626,548 | |
* | General Motors Co. | 9,703,902 | 555,257 |
McDonald's Corp. | 2,188,469 | 516,654 | |
Lowe's Cos. Inc. | 2,293,163 | 450,033 | |
Dollar General Corp. | 1,606,937 | 345,090 | |
1 | Sony Corp. ADR | 3,375,000 | 338,040 |
DR Horton Inc. | 3,372,510 | 331,484 | |
* | Dollar Tree Inc. | 2,774,904 | 318,836 |
Home Depot Inc. | 912,660 | 295,401 | |
Starbucks Corp. | 2,513,510 | 287,772 | |
* | Aptiv plc | 1,858,543 | 267,426 |
Magna International Inc. | 2,812,932 | 265,597 | |
Cie Generale des Etablissements Michelin SCA ADR | 8,570,000 | 248,016 | |
* | Booking Holdings Inc. | 85,400 | 210,603 |
Daimler AG (Registered) | 2,159,229 | 192,169 | |
Ross Stores Inc. | 1,211,380 | 158,618 | |
Bayerische Motoren Werke AG | 1,371,126 | 137,401 | |
Harley-Davidson Inc. | 1,971,673 | 95,370 | |
* | O'Reilly Automotive Inc. | 170,583 | 94,312 |
Genuine Parts Co. | 496,042 | 61,990 | |
* | Adient plc | 1,311,943 | 60,795 |
* | Goodyear Tire & Rubber Co. | 3,226,296 | 55,524 |
Lennar Corp. Class B | 46,457 | 3,743 | |
5,916,679 |
Shares | Market Value• ($000) | ||
Consumer Staples (4.6%) | |||
Coca-Cola Co. | 11,667,954 | 629,836 | |
Procter & Gamble Co. | 4,270,093 | 569,716 | |
PepsiCo Inc. | 2,460,473 | 354,702 | |
Unilever plc ADR | 3,871,398 | 227,329 | |
Tyson Foods Inc. Class A | 2,787,779 | 215,913 | |
Sysco Corp. | 2,466,278 | 208,968 | |
Nestle SA (Registered) | 1,050,073 | 125,306 | |
Mondelez International Inc. Class A | 2,026,888 | 123,255 | |
Walgreens Boots Alliance Inc. | 2,100,000 | 111,510 | |
Unilever plc (XLON) | 623,592 | 36,528 | |
2,603,063 | |||
Energy (4.3%) | |||
ConocoPhillips | 7,751,334 | 396,403 | |
Marathon Oil Corp. | 26,018,487 | 292,968 | |
APA Corp. | 11,201,377 | 224,028 | |
Hess Corp. | 2,939,167 | 218,997 | |
Halliburton Co. | 11,140,235 | 217,903 | |
1 | Royal Dutch Shell plc Class A ADR | 4,873,612 | 185,197 |
Cabot Oil & Gas Corp. | 10,471,000 | 174,552 | |
Suncor Energy Inc. | 7,518,132 | 161,038 | |
Phillips 66 | 1,990,000 | 161,011 | |
NOV Inc. | 10,076,888 | 150,650 | |
Marathon Petroleum Corp. | 1,680,189 | 93,503 | |
Schlumberger NV | 2,915,800 | 78,872 | |
Baker Hughes Co. Class A | 3,043,100 | 61,105 | |
Murphy Oil Corp. | 2,182,252 | 36,946 | |
2,453,173 | |||
Financials (19.1%) | |||
Wells Fargo & Co. | 25,687,008 | 1,157,200 | |
Bank of America Corp. | 26,032,707 | 1,055,106 | |
Citigroup Inc. | 13,640,958 | 971,782 | |
JPMorgan Chase & Co. | 6,000,301 | 922,906 | |
Intercontinental Exchange Inc. | 6,004,149 | 706,748 | |
American International Group Inc. | 13,087,256 | 634,078 | |
American Express Co. | 3,553,707 | 544,961 | |
PNC Financial Services Group Inc. | 2,569,755 | 480,416 | |
Capital One Financial Corp. | 2,453,000 | 365,693 | |
Commerce Bancshares Inc. | 4,348,061 | 338,323 | |
Marsh & McLennan Cos. Inc. | 2,343,356 | 317,993 | |
Goldman Sachs Group Inc. | 816,749 | 284,596 | |
Ameriprise Financial Inc. | 1,057,000 | 273,129 | |
Cincinnati Financial Corp. | 2,192,000 | 246,995 | |
East West Bancorp Inc. | 2,710,000 | 206,366 | |
Cullen/Frost Bankers Inc. | 1,702,000 | 204,342 | |
Bank of New York Mellon Corp. | 4,029,434 | 200,988 | |
* | Berkshire Hathaway Inc. Class B | 728,900 | 200,411 |
Chubb Ltd. | 1,121,000 | 192,352 | |
Travelers Cos. Inc. | 1,204,992 | 186,364 | |
BNP Paribas SA | 2,782,700 | 178,420 | |
Truist Financial Corp. | 2,831,319 | 167,925 | |
Hartford Financial Services Group Inc. | 2,324,200 | 153,304 | |
Equitable Holdings Inc. | 4,003,740 | 137,048 | |
Citizens Financial Group Inc. | 2,678,151 | 123,945 | |
1 | Mitsubishi UFJ Financial Group Inc. ADR | 19,937,000 | 107,062 |
Shares | Market Value• ($000) | ||
CIT Group Inc. | 1,947,710 | 103,793 | |
Discover Financial Services | 627,378 | 71,521 | |
Synchrony Financial | 1,589,451 | 69,523 | |
State Street Corp. | 665,188 | 55,843 | |
Natwest Group plc | 18,703,800 | 50,759 | |
China Construction Bank Corp. Class H | 51,864,000 | 40,938 | |
Sumitomo Mitsui Financial Group Inc. | 963,900 | 33,861 | |
* | Banco de Sabadell SA | 36,345,074 | 23,011 |
10,807,702 | |||
Health Care (16.5%) | |||
Medtronic plc | 10,458,073 | 1,369,171 | |
Johnson & Johnson | 6,783,277 | 1,103,843 | |
UnitedHealth Group Inc. | 2,037,915 | 812,720 | |
Danaher Corp. | 3,128,904 | 794,554 | |
Anthem Inc. | 2,003,738 | 760,198 | |
HCA Healthcare Inc. | 2,229,500 | 448,263 | |
Cigna Corp. | 1,502,773 | 374,206 | |
Humana Inc. | 782,618 | 348,453 | |
Thermo Fisher Scientific Inc. | 642,553 | 302,148 | |
* | Boston Scientific Corp. | 6,679,168 | 291,212 |
Amgen Inc. | 1,116,000 | 267,438 | |
Pfizer Inc. | 6,548,831 | 253,112 | |
Alcon Inc. | 3,105,000 | 234,210 | |
Zoetis Inc. | 1,346,898 | 233,054 | |
* | IQVIA Holdings Inc. | 957,951 | 224,822 |
* | Elanco Animal Health Inc. | 6,499,000 | 206,083 |
Roche Holding AG | 566,900 | 184,898 | |
Novartis AG ADR | 1,947,000 | 165,962 | |
1 | GlaxoSmithKline plc ADR | 4,176,194 | 155,939 |
* | Laboratory Corp. of America Holdings | 502,377 | 133,567 |
* | Centene Corp. | 2,061,188 | 127,258 |
Sanofi ADR | 2,209,191 | 115,695 | |
* | Maravai LifeSciences Holdings Inc. Class A | 2,540,642 | 98,856 |
Zimmer Biomet Holdings Inc. | 440,508 | 78,040 | |
Bristol-Myers Squibb Co. | 1,123,900 | 70,154 | |
CVS Health Corp. | 826,000 | 63,106 | |
AbbVie Inc. | 544,967 | 60,764 | |
* | Biogen Inc. | 150,011 | 40,102 |
Merck & Co. Inc. | 442,329 | 32,954 | |
9,350,782 | |||
Industrials (7.9%) | |||
Honeywell International Inc. | 2,924,748 | 652,336 | |
General Electric Co. | 39,922,984 | 523,789 | |
FedEx Corp. | 1,484,977 | 431,104 | |
Norfolk Southern Corp. | 1,379,985 | 385,347 | |
Parker-Hannifin Corp. | 979,000 | 307,220 | |
Waste Management Inc. | 2,135,940 | 294,696 | |
Johnson Controls International plc | 4,410,000 | 274,919 | |
Xylem Inc. | 2,400,000 | 265,560 | |
Allegion plc | 1,836,000 | 246,722 | |
CNH Industrial NV | 15,693,799 | 232,896 | |
General Dynamics Corp. | 1,018,000 | 193,654 | |
Cummins Inc. | 714,472 | 180,075 | |
Caterpillar Inc. | 738,613 | 168,485 | |
Raytheon Technologies Corp. | 1,531,400 | 127,474 |
Shares | Market Value• ($000) | ||
Stanley Black & Decker Inc. | 334,890 | 69,245 | |
PACCAR Inc. | 700,920 | 62,999 | |
* | Fluor Corp. | 1,993,085 | 45,801 |
4,462,322 | |||
Information Technology (20.2%) | |||
Microsoft Corp. | 10,878,462 | 2,743,330 | |
Apple Inc. | 7,682,889 | 1,009,993 | |
Taiwan Semiconductor Manufacturing Co. Ltd. ADR | 6,298,485 | 735,285 | |
Visa Inc. Class A | 2,662,135 | 621,768 | |
Samsung Electronics Co. Ltd. | 8,514,100 | 620,554 | |
* | Adobe Inc. | 1,037,199 | 527,250 |
* | Micron Technology Inc. | 5,621,323 | 483,827 |
Texas Instruments Inc. | 2,282,946 | 412,095 | |
* | ANSYS Inc. | 1,042,000 | 381,018 |
Cisco Systems Inc. | 7,304,867 | 371,891 | |
Analog Devices Inc. | 2,309,512 | 353,725 | |
Microchip Technology Inc. | 2,092,000 | 314,407 | |
QUALCOMM Inc. | 2,191,000 | 304,111 | |
* | PayPal Holdings Inc. | 1,068,000 | 280,126 |
Oracle Corp. | 3,134,325 | 237,550 | |
Amphenol Corp. Class A | 3,350,112 | 225,596 | |
Accenture plc Class A | 769,234 | 223,055 | |
* | salesforce.com Inc. | 863,772 | 198,944 |
Corning Inc. | 4,483,651 | 198,222 | |
* | F5 Networks Inc. | 1,057,700 | 197,536 |
Fidelity National Information Services Inc. | 1,165,634 | 178,225 | |
TE Connectivity Ltd. | 1,179,766 | 158,643 | |
Hewlett Packard Enterprise Co. | 9,685,341 | 155,159 | |
Telefonaktiebolaget LM Ericsson ADR | 10,016,480 | 138,127 | |
Applied Materials Inc. | 884,482 | 117,380 | |
CDW Corp. | 651,886 | 116,251 | |
* | Palo Alto Networks Inc. | 276,009 | 97,539 |
11,401,607 | |||
Materials (2.0%) | |||
Corteva Inc. | 6,961,000 | 339,418 | |
Martin Marietta Materials Inc. | 807,000 | 284,968 | |
RPM International Inc. | 2,570,000 | 243,739 | |
Avery Dennison Corp. | 700,226 | 149,967 | |
International Paper Co. | 1,810,629 | 105,017 | |
1,123,109 | |||
Other (0.7%) | |||
SPDR S&P 500 ETF Trust | 970,172 | 404,853 | |
Real Estate (1.6%) | |||
Prologis Inc. | 3,145,211 | 366,511 | |
Crown Castle International Corp. | 1,627,000 | 307,601 | |
Sun Communities Inc. | 720,000 | 120,117 | |
Equity LifeStyle Properties Inc. | 1,600,000 | 111,040 | |
905,269 | |||
Utilities (0.6%) | |||
PPL Corp. | 9,306,403 | 271,096 | |
Southern Co. | 994,110 | 65,780 | |
336,876 | |||
Total Common Stocks (Cost $33,055,792) | 54,114,180 |
Shares | Market Value• ($000) | ||
Temporary Cash Investments (4.3%) | |||
Money Market Fund (4.3%) | |||
2,3 | Vanguard Market Liquidity Fund, 0.068% (Cost $2,408,610) | 24,087,925 | 2,408,793 |
Total Investments (100.0%) (Cost $35,464,402) | 56,522,973 | ||
Other Assets and Liabilities—Net (0.0%) | (2,260) | ||
Net Assets (100%) | 56,520,713 | ||
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 $56,851,000. |
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 $60,241,000 was received for securities on loan. |
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 | June 2021 | 5,283 | 1,102,668 | 54,617 |
($000s, except shares and per-share amounts) | Amount |
Assets | |
Investments in Securities, at Value | |
Unaffiliated Issuers (Cost $33,055,792) | 54,114,180 |
Affiliated Issuers (Cost $2,408,610) | 2,408,793 |
Total Investments in Securities | 56,522,973 |
Investment in Vanguard | 1,974 |
Cash Collateral Pledged—Futures Contracts | 58,117 |
Receivables for Investment Securities Sold | 14,040 |
Receivables for Accrued Income | 44,837 |
Receivables for Capital Shares Issued | 27,125 |
Total Assets | 56,669,066 |
Liabilities | |
Due to Custodian | 7,559 |
Payables for Investment Securities Purchased | 38,995 |
Collateral for Securities on Loan | 60,241 |
Payables to Investment Advisor | 16,409 |
Payables for Capital Shares Redeemed | 14,975 |
Payables to Vanguard | 2,517 |
Variation Margin Payable—Futures Contracts | 7,657 |
Total Liabilities | 148,353 |
Net Assets | 56,520,713 |
At April 30, 2021, net assets consisted of: | |
Paid-in Capital | 33,419,814 |
Total Distributable Earnings (Loss) | 23,100,899 |
Net Assets | 56,520,713 |
Investor Shares—Net Assets | |
Applicable to 316,175,760 outstanding $.001 par value shares of beneficial interest (unlimited authorization) | 14,257,558 |
Net Asset Value Per Share—Investor Shares | $45.09 |
Admiral Shares—Net Assets | |
Applicable to 528,157,407 outstanding $.001 par value shares of beneficial interest (unlimited authorization) | 42,263,155 |
Net Asset Value Per Share—Admiral Shares | $80.02 |
Six Months Ended April 30, 2021 | |
($000) | |
Investment Income | |
Income | |
Dividends1 | 394,538 |
Interest2 | 817 |
Securities Lending—Net | 487 |
Total Income | 395,842 |
Expenses | |
Investment Advisory Fees—Note B | |
Basic Fee | 31,638 |
Performance Adjustment | (315) |
The Vanguard Group—Note C | |
Management and Administrative—Investor Shares | 13,673 |
Management and Administrative—Admiral Shares | 25,533 |
Marketing and Distribution—Investor Shares | 369 |
Marketing and Distribution—Admiral Shares | 485 |
Custodian Fees | 115 |
Shareholders’ Reports—Investor Shares | 161 |
Shareholders’ Reports—Admiral Shares | 98 |
Trustees’ Fees and Expenses | 10 |
Total Expenses | 71,767 |
Net Investment Income | 324,075 |
Realized Net Gain (Loss) | |
Investment Securities Sold2 | 1,752,208 |
Futures Contracts | 91,536 |
Foreign Currencies | (425) |
Realized Net Gain (Loss) | 1,843,319 |
Change in Unrealized Appreciation (Depreciation) | |
Investment Securities—Unaffiliated Issuers2 | 13,583,510 |
Futures Contracts | 77,313 |
Foreign Currencies | 9 |
Change in Unrealized Appreciation (Depreciation) | 13,660,832 |
Net Increase (Decrease) in Net Assets Resulting from Operations | 15,828,226 |
1 | Dividends are net of foreign withholding taxes of $9,078,000. |
2 | Interest income, realized net gain (loss), and change in unrealized appreciation (depreciation) from an affiliated company of the fund were $817,000, $107,000, and ($106,000), respectively. Purchases and sales are for temporary cash investment purposes. |
Six Months Ended April 30, 2021 | Year Ended October 31, 2020 | ||
($000) | ($000) | ||
Increase (Decrease) in Net Assets | |||
Operations | |||
Net Investment Income | 324,075 | 722,332 | |
Realized Net Gain (Loss) | 1,843,319 | 3,203,815 | |
Change in Unrealized Appreciation (Depreciation) | 13,660,832 | (2,732,840) | |
Net Increase (Decrease) in Net Assets Resulting from Operations | 15,828,226 | 1,193,307 | |
Distributions | |||
Investor Shares | (797,174) | (1,132,159) | |
Admiral Shares | (2,302,954) | (3,219,357) | |
Total Distributions | (3,100,128) | (4,351,516) | |
Capital Share Transactions | |||
Investor Shares | (25,189) | (360,690) | |
Admiral Shares | 1,829,465 | (633,591) | |
Net Increase (Decrease) from Capital Share Transactions | 1,804,276 | (994,281) | |
Total Increase (Decrease) | 14,532,374 | (4,152,490) | |
Net Assets | |||
Beginning of Period | 41,988,339 | 46,140,829 | |
End of Period | 56,520,713 | 41,988,339 |
Investor Shares | ||||||
For a Share Outstanding Throughout Each Period | Six Months Ended April 30, 2021 | Year Ended October 31, | ||||
2020 | 2019 | 2018 | 2017 | 2016 | ||
Net Asset Value, Beginning of Period | $34.85 | $37.22 | $37.39 | $38.81 | $35.03 | $36.73 |
Investment Operations | ||||||
Net Investment Income1 | .249 | .551 | .775 | .783 | .750 | .847 |
Net Realized and Unrealized Gain (Loss) on Investments | 12.579 | .607 | 2.628 | .950 | 5.847 | .096 |
Total from Investment Operations | 12.828 | 1.158 | 3.403 | 1.733 | 6.597 | .943 |
Distributions | ||||||
Dividends from Net Investment Income | (.261) | (.635) | (.844) | (.740) | (.851) | (.781) |
Distributions from Realized Capital Gains | (2.327) | (2.893) | (2.729) | (2.413) | (1.966) | (1.862) |
Total Distributions | (2.588) | (3.528) | (3.573) | (3.153) | (2.817) | (2.643) |
Net Asset Value, End of Period | $45.09 | $34.85 | $37.22 | $37.39 | $38.81 | $35.03 |
Total Return2 | 38.18% | 2.93% | 10.82% | 4.44% | 19.60% | 2.86% |
Ratios/Supplemental Data | ||||||
Net Assets, End of Period (Millions) | $14,258 | $10,997 | $12,119 | $12,061 | $13,638 | $13,773 |
Ratio of Total Expenses to Average Net Assets3 | 0.34% | 0.34% | 0.33% | 0.33% | 0.34% | 0.33% |
Ratio of Net Investment Income to Average Net Assets | 1.24% | 1.61% | 2.20% | 2.04% | 2.01% | 2.46% |
Portfolio Turnover Rate | 11% | 61% | 32% | 29% | 32% | 33% |
The expense ratio and net investment income ratio for the current period have been annualized. |
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 0.00%, (0.01%), (0.03%), (0.03%), (0.02%), and (0.03%). |
Admiral Shares | ||||||
For a Share Outstanding Throughout Each Period | Six Months Ended April 30, 2021 | Year Ended October 31, | ||||
2020 | 2019 | 2018 | 2017 | 2016 | ||
Net Asset Value, Beginning of Period | $61.84 | $66.06 | $66.35 | $68.88 | $62.18 | $65.20 |
Investment Operations | ||||||
Net Investment Income1 | .471 | 1.027 | 1.426 | 1.443 | 1.377 | 1.552 |
Net Realized and Unrealized Gain (Loss) on Investments | 22.326 | 1.065 | 4.675 | 1.682 | 10.376 | .168 |
Total from Investment Operations | 22.797 | 2.092 | 6.101 | 3.125 | 11.753 | 1.720 |
Distributions | ||||||
Dividends from Net Investment Income | (.488) | (1.178) | (1.547) | (1.371) | (1.565) | (1.437) |
Distributions from Realized Capital Gains | (4.129) | (5.134) | (4.844) | (4.284) | (3.488) | (3.303) |
Total Distributions | (4.617) | (6.312) | (6.391) | (5.655) | (5.053) | (4.740) |
Net Asset Value, End of Period | $80.02 | $61.84 | $66.06 | $66.35 | $68.88 | $62.18 |
Total Return2 | 38.25% | 3.00% | 10.93% | 4.52% | 19.68% | 2.94% |
Ratios/Supplemental Data | ||||||
Net Assets, End of Period (Millions) | $42,263 | $30,992 | $34,022 | $34,126 | $35,514 | $30,991 |
Ratio of Total Expenses to Average Net Assets3 | 0.26% | 0.26% | 0.25% | 0.25% | 0.26% | 0.25% |
Ratio of Net Investment Income to Average Net Assets | 1.31% | 1.69% | 2.28% | 2.12% | 2.09% | 2.54% |
Portfolio Turnover Rate | 11% | 61% | 32% | 29% | 32% | 33% |
The expense ratio and net investment income ratio for the current period have been annualized. |
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 0.00%, (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, Hotchkis and Wiley Capital Management, LLC, Sanders Capital, LLC, and 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 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. 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 Aristotle Capital Management, LLC, is subject to quarterly adjustments based on performance relative to the S&P 500 Index since January 31, 2020. |
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 | 52,490,335 | 1,623,845 | — | 54,114,180 |
Temporary Cash Investments | 2,408,793 | — | — | 2,408,793 |
Total | 54,899,128 | 1,623,845 | — | 56,522,973 |
Derivative Financial Instruments | ||||
Assets | ||||
Futures Contracts1 | 54,617 | — | — | 54,617 |
1 | Includes cumulative appreciation (depreciation) on futures contracts and centrally cleared swaps, if any, as reported in the Schedule of Investments. Only current day’s variation margin is reported within the Statement of Assets and Liabilities. |
E. | As of April 30, 2021, gross unrealized appreciation and depreciation for investments and derivatives based on cost for U.S. federal income tax purposes were as follows: |
Amount ($000) | |
Tax Cost | 35,491,084 |
Gross Unrealized Appreciation | 21,789,732 |
Gross Unrealized Depreciation | (703,226) |
Net Unrealized Appreciation (Depreciation) | 21,086,506 |
F. | During the six months ended April 30, 2021, the fund purchased $5,484,934,000 of investment securities and sold $7,496,896,000 of investment securities, other than temporary cash investments. |
G. | Capital share transactions for each class of shares were: |
Six Months Ended April 30, 2021 | Year Ended October 31, 2020 | ||||
Amount ($000) | Shares (000) | Amount ($000) | Shares (000) | ||
Investor Shares | |||||
Issued | 417,331 | 10,038 | 1,105,745 | 35,975 | |
Issued in Lieu of Cash Distributions | 778,784 | 20,467 | 1,106,299 | 30,946 | |
Redeemed | (1,221,304) | (29,883) | (2,572,734) | (76,946) | |
Net Increase (Decrease)—Investor Shares | (25,189) | 622 | (360,690) | (10,025) |
Six Months Ended April 30, 2021 | Year Ended October 31, 2020 | ||||
Amount ($000) | Shares (000) | Amount ($000) | Shares (000) | ||
Admiral Shares | |||||
Issued | 2,031,653 | 27,716 | 2,289,454 | 38,346 | |
Issued in Lieu of Cash Distributions | 2,162,058 | 32,031 | 3,023,063 | 47,668 | |
Redeemed | (2,364,246) | (32,755) | (5,946,108) | (99,892) | |
Net Increase (Decrease)—Admiral Shares | 1,829,465 | 26,992 | (633,591) | (13,878) |
H. | Management has determined that no events or transactions occurred subsequent to April 30, 2021, that would require recognition or disclosure in these financial statements. |
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Vanguard Marketing Corporation, Distributor.
Item 2: Code of Ethics.
Not applicable.
Item 3: Audit Committee Financial Expert.
Not applicable.
Item 4: Principal Accountant Fees and Services.
Not applicable.
Item 5: Audit Committee of Listed Registrants.
Not applicable.
Item 6: Investments.
Not applicable. The complete schedule of investments is included as part of the report to shareholders filed under Item 1 of this Form.
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 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)(1) | Not applicable. |
(a)(2) | Certifications filed herewith. |
(b) | Certifications field herewith. |
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: June 18, 2021
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: June 18, 2021
VANGUARD WINDSOR FUNDS | ||
BY: | /s/ JOHN BENDL* | |
JOHN BENDL | ||
CHIEF FINANCIAL OFFICER |
Date: June 18, 2021
* 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