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: 811-05445
Name of Registrant: | Vanguard Fenway 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: September 30
Date of reporting period: October 1, 2021—March 31, 2022
Item 1: Reports to Shareholders
About Your Fund’s Expenses | 1 |
Financial Statements | 4 |
Trustees Approve Advisory Arrangement | 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 March 31, 2022 | |||
Beginning Account Value 9/30/2021 | Ending Account Value 3/31/2022 | Expenses Paid During Period | |
Based on Actual Fund Return | |||
Equity Income Fund | |||
Investor Shares | $1,000.00 | $1,099.00 | $1.47 |
Admiral™ Shares | 1,000.00 | 1,099.30 | 0.99 |
Based on Hypothetical 5% Yearly Return | |||
Equity Income Fund | |||
Investor Shares | $1,000.00 | $1,023.54 | $1.41 |
Admiral Shares | 1,000.00 | 1,023.98 | 0.96 |
Communication Services | 3.7% |
Consumer Discretionary | 4.5 |
Consumer Staples | 13.3 |
Energy | 8.6 |
Financials | 20.1 |
Health Care | 17.2 |
Industrials | 10.2 |
Information Technology | 9.8 |
Materials | 4.0 |
Real Estate | 0.4 |
Utilities | 8.2 |
Shares | Market Value• ($000) | ||
Common Stocks (97.4%) | |||
Communication Services (3.6%) | |||
Comcast Corp. Class A | 21,263,846 | 995,573 | |
Verizon Communications Inc. | 12,704,988 | 647,192 | |
AT&T Inc. | 5,793,373 | 136,897 | |
Interpublic Group of Cos. Inc. | 2,194,975 | 77,812 | |
Omnicom Group Inc. | 676,115 | 57,389 | |
Lumen Technologies Inc. | 1,862,630 | 20,992 | |
1,935,855 | |||
Consumer Discretionary (4.4%) | |||
Home Depot Inc. | 2,135,531 | 639,228 | |
Lowe's Cos. Inc. | 2,948,812 | 596,220 | |
McDonald's Corp. | 1,221,589 | 302,075 | |
TJX Cos. Inc. | 4,694,706 | 284,405 | |
Target Corp. | 948,914 | 201,379 | |
H&R Block Inc. | 3,246,073 | 84,528 | |
Ford Motor Co. | 4,070,533 | 68,833 | |
Best Buy Co. Inc. | 474,179 | 43,103 | |
Whirlpool Corp. | 171,704 | 29,667 | |
Foot Locker Inc. | 775,778 | 23,010 | |
Macy's Inc. | 698,662 | 17,019 | |
Hanesbrands Inc. | 889,897 | 13,251 | |
Tapestry Inc. | 354,464 | 13,168 | |
Genuine Parts Co. | 83,322 | 10,500 | |
Garmin Ltd. | 86,129 | 10,216 | |
Ralph Lauren Corp. Class A | 83,097 | 9,426 | |
Newell Brands Inc. | 320,369 | 6,859 | |
2,352,887 | |||
Consumer Staples (12.9%) | |||
Procter & Gamble Co. | 9,692,454 | 1,481,007 | |
Philip Morris International Inc. | 8,801,481 | 826,811 | |
Mondelez International Inc. Class A | 12,335,475 | 774,421 | |
PepsiCo Inc. | 3,821,686 | 639,674 | |
Archer-Daniels-Midland Co. | 5,971,498 | 538,987 | |
Coca-Cola Co. | 8,654,183 | 536,559 | |
Kimberly-Clark Corp. | 3,051,855 | 375,866 | |
Unilever plc ADR | 6,778,084 | 308,877 | |
Walmart Inc. | 1,625,005 | 241,996 | |
Altria Group Inc. | 4,386,690 | 229,205 | |
Kellogg Co. | 3,540,425 | 228,322 | |
Kroger Co. | 2,527,168 | 144,984 | |
Hershey Co. | 660,377 | 143,058 |
Shares | Market Value• ($000) | ||
Tyson Foods Inc. Class A | 1,513,850 | 135,686 | |
Colgate-Palmolive Co. | 1,412,664 | 107,122 | |
Nestle SA ADR | 774,125 | 100,714 | |
Bunge Ltd. | 355,047 | 39,343 | |
General Mills Inc. | 460,792 | 31,205 | |
Coca-Cola Europacific Partners plc | 590,332 | 28,696 | |
Nu Skin Enterprises Inc. Class A | 467,552 | 22,386 | |
Medifast Inc. | 72,575 | 12,394 | |
Walgreens Boots Alliance Inc. | 148,504 | 6,649 | |
6,953,962 | |||
Energy (8.4%) | |||
ConocoPhillips | 10,260,700 | 1,026,070 | |
Pioneer Natural Resources Co. | 3,002,965 | 750,831 | |
Chevron Corp. | 3,117,858 | 507,681 | |
1 | TC Energy Corp. | 7,455,253 | 420,485 |
Coterra Energy Inc. | 14,705,234 | 396,600 | |
Exxon Mobil Corp. | 4,443,554 | 366,993 | |
Phillips 66 | 3,315,540 | 286,430 | |
EOG Resources Inc. | 2,331,496 | 277,984 | |
Halliburton Co. | 3,151,690 | 119,354 | |
Schlumberger NV | 2,158,231 | 89,157 | |
Targa Resources Corp. | 1,175,543 | 88,718 | |
Valero Energy Corp. | 452,114 | 45,908 | |
Kinder Morgan Inc. | 2,410,818 | 45,589 | |
APA Corp. | 972,830 | 40,207 | |
�� | Marathon Petroleum Corp. | 389,636 | 33,314 |
DT Midstream, Inc. | 124,527 | 6,757 | |
4,502,078 | |||
Financials (19.6%) | |||
JPMorgan Chase & Co. | 12,198,089 | 1,662,843 | |
Morgan Stanley | 12,196,274 | 1,065,954 | |
Bank of America Corp. | 25,134,111 | 1,036,028 | |
Chubb Ltd. | 4,834,645 | 1,034,131 | |
MetLife Inc. | 13,772,460 | 967,928 | |
BlackRock Inc. | 658,544 | 503,240 | |
Truist Financial Corp. | 8,271,351 | 468,986 | |
Progressive Corp. | 4,026,445 | 458,974 | |
Royal Bank of Canada | 3,587,959 | 395,030 | |
PNC Financial Services Group Inc. | 2,115,412 | 390,188 | |
Wells Fargo & Co. | 6,934,231 | 336,033 | |
M&T Bank Corp. | 1,933,861 | 327,789 | |
Citigroup Inc. | 4,131,082 | 220,600 | |
Ally Financial Inc. | 2,568,633 | 111,684 |
Shares | Market Value• ($000) | ||
Fidelity National Financial Inc. | 2,095,106 | 102,325 | |
Hartford Financial Services Group Inc. | 1,383,990 | 99,384 | |
First American Financial Corp. | 1,477,253 | 95,755 | |
Synchrony Financial | 2,676,035 | 93,153 | |
Aflac Inc. | 1,419,362 | 91,393 | |
Jefferies Financial Group Inc. | 2,750,513 | 90,354 | |
Unum Group | 2,824,684 | 89,006 | |
Regions Financial Corp. | 3,881,527 | 86,403 | |
KeyCorp. | 3,088,721 | 69,126 | |
Equitable Holdings Inc. | 2,081,293 | 64,333 | |
Discover Financial Services | 560,708 | 61,784 | |
Ameriprise Financial Inc. | 204,220 | 61,339 | |
Invesco Ltd. | 2,653,825 | 61,197 | |
OneMain Holdings Inc. | 1,265,871 | 60,015 | |
PacWest Bancorp | 1,311,049 | 56,546 | |
Goldman Sachs Group Inc. | 164,457 | 54,287 | |
Fifth Third Bancorp | 1,230,962 | 52,981 | |
US Bancorp | 976,819 | 51,918 | |
Comerica Inc. | 512,751 | 46,368 | |
Virtu Financial Inc. Class A | 1,183,653 | 44,056 | |
Citizens Financial Group Inc. | 912,791 | 41,377 | |
Carlyle Group Inc. | 623,722 | 30,506 | |
Travelers Cos. Inc. | 119,263 | 21,793 | |
Franklin Resources Inc. | 431,508 | 12,048 | |
American International Group Inc. | 155,457 | 9,758 | |
CME Group Inc. | 40,339 | 9,595 | |
State Street Corp. | 107,263 | 9,345 | |
10,545,553 | |||
Health Care (16.8%) | |||
Johnson & Johnson | 10,633,497 | 1,884,575 | |
Pfizer Inc. | 27,728,776 | 1,435,519 | |
Eli Lilly & Co. | 3,781,391 | 1,082,877 | |
Merck & Co. Inc. | 11,325,680 | 929,272 | |
UnitedHealth Group Inc. | 1,182,522 | 603,051 | |
Anthem Inc. | 1,065,220 | 523,257 | |
AstraZeneca plc ADR | 5,745,471 | 381,154 | |
Becton Dickinson and Co. | 1,421,149 | 378,026 | |
Baxter International Inc. | 4,546,004 | 352,497 | |
Medtronic plc | 2,808,223 | 311,572 | |
AbbVie Inc. | 1,902,299 | 308,382 | |
Roche Holding AG | 641,331 | 253,750 | |
CVS Health Corp. | 1,945,635 | 196,918 | |
Bristol-Myers Squibb Co. | 2,618,701 | 191,244 | |
Cardinal Health Inc. | 1,579,135 | 89,537 | |
Amgen Inc. | 308,344 | 74,564 | |
Gilead Sciences Inc. | 481,051 | 28,598 | |
9,024,793 | |||
Industrials (10.0%) | |||
General Dynamics Corp. | 2,788,149 | 672,446 | |
Johnson Controls International plc | 8,896,252 | 583,327 | |
Raytheon Technologies Corp. | 5,360,579 | 531,073 | |
Caterpillar Inc. | 2,349,352 | 523,483 | |
Eaton Corp. plc | 3,373,894 | 512,022 | |
L3Harris Technologies Inc. | 1,624,259 | 403,580 |
Shares | Market Value• ($000) | ||
Canadian National Railway Co. | 2,663,120 | 357,241 | |
Northrop Grumman Corp. | 746,320 | 333,769 | |
Honeywell International Inc. | 1,109,086 | 215,806 | |
United Parcel Service Inc. Class B | 937,374 | 201,029 | |
Emerson Electric Co. | 1,714,670 | 168,124 | |
3M Co. | 1,037,395 | 154,447 | |
Lockheed Martin Corp. | 241,763 | 106,714 | |
Illinois Tool Works Inc. | 508,821 | 106,547 | |
Cummins Inc. | 486,180 | 99,720 | |
Nielsen Holdings plc | 3,065,342 | 83,500 | |
Fastenal Co. | 1,288,067 | 76,511 | |
Watsco Inc. | 239,365 | 72,920 | |
Triton International Ltd. | 805,040 | 56,498 | |
nVent Electric plc | 1,481,212 | 51,517 | |
ManpowerGroup Inc. | 404,538 | 37,994 | |
Snap-on Inc. | 67,004 | 13,768 | |
ABM Industries Inc. | 211,515 | 9,738 | |
5,371,774 | |||
Information Technology (9.5%) | |||
Cisco Systems Inc. | 21,039,088 | 1,173,140 | |
Texas Instruments Inc. | 4,498,349 | 825,357 | |
Broadcom Inc. | 787,537 | 495,896 | |
Analog Devices Inc. | 2,869,600 | 474,000 | |
TE Connectivity Ltd. | 3,119,555 | 408,599 | |
Corning Inc. | 9,823,235 | 362,576 | |
QUALCOMM Inc. | 2,044,265 | 312,405 | |
International Business Machines Corp. | 1,819,304 | 236,546 | |
Intel Corp. | 4,445,803 | 220,334 | |
HP Inc. | 4,600,219 | 166,988 | |
Fidelity National Information Services Inc. | 1,554,800 | 156,133 | |
Automatic Data Processing Inc. | 446,255 | 101,541 | |
Seagate Technology Holdings plc | 1,060,528 | 95,341 | |
KLA Corp. | 191,880 | 70,240 | |
Hewlett Packard Enterprise Co. | 1,523,428 | 25,456 | |
Western Union Co. | 1,236,984 | 23,181 | |
5,147,733 | |||
Materials (3.8%) | |||
LyondellBasell Industries NV Class A | 4,676,729 | 480,861 | |
PPG Industries Inc. | 3,139,033 | 411,433 | |
Celanese Corp. Class A | 1,756,481 | 250,948 | |
Nucor Corp. | 987,316 | 146,765 | |
Dow Inc. | 2,003,806 | 127,682 | |
CF Industries Holdings Inc. | 1,131,332 | 116,595 | |
Reliance Steel & Aluminum Co. | 625,283 | 114,646 | |
Linde plc | 332,719 | 106,280 | |
Steel Dynamics Inc. | 1,267,292 | 105,730 | |
1 | Rio Tinto plc ADR | 1,265,496 | 101,746 |
Packaging Corp. of America | 232,746 | 36,334 | |
Olin Corp. | 462,139 | 24,161 | |
International Paper Co. | 489,332 | 22,583 | |
Greif Inc. Class A | 193,002 | 12,557 | |
Huntsman Corp. | 299,404 | 11,231 |
Shares | Market Value• ($000) | ||
Westrock Co. | 195,588 | 9,198 | |
2,078,750 | |||
Real Estate (0.4%) | |||
Crown Castle International Corp. | 1,088,835 | 200,999 | |
Utilities (8.0%) | |||
American Electric Power Co. Inc. | 7,502,439 | 748,518 | |
Exelon Corp. | 15,664,345 | 746,093 | |
Duke Energy Corp. | 5,322,006 | 594,255 | |
Sempra Energy (XNYS) | 3,347,749 | 562,824 | |
Dominion Energy Inc. | 5,850,012 | 497,075 | |
DTE Energy Co. | 1,814,189 | 239,854 | |
Constellation Energy Corp. | 3,902,575 | 219,520 | |
AES Corp. | 4,908,751 | 126,302 | |
NextEra Energy Inc. | 1,333,733 | 112,980 | |
Evergy Inc. | 1,641,871 | 112,205 | |
NiSource Inc. | 2,801,192 | 89,078 | |
FirstEnergy Corp. | 1,551,415 | 71,148 | |
WEC Energy Group Inc. | 508,156 | 50,719 | |
NRG Energy Inc. | 1,240,824 | 47,598 | |
IDACORP Inc. | 332,462 | 38,353 | |
Southern Co. | 160,365 | 11,628 | |
PPL Corp. | 352,965 | 10,081 | |
Eversource Energy | 107,430 | 9,474 | |
UGI Corp. | 254,131 | 9,205 | |
4,296,910 | |||
Total Common Stocks (Cost $36,832,625) | 52,411,294 | ||
Temporary Cash Investments (3.4%) | |||
Money Market Fund (2.4%) | |||
2,3 | Vanguard Market Liquidity Fund, 0.312% | 12,767,851 | 1,276,657 |
Face Amount ($000) | |||
Repurchase Agreements (0.7%) | |||
Goldman, Sachs & Co. 0.300%, 4/1/22 (Dated 3/31/22, Repurchase Value $43,300,000, collateralized by Ginnie Mae 3.000%–8.500%, 4/15/30–10/20/51, with a value of $44,166,000) | 43,300 | 43,300 |
Face Amount ($000) | Market Value• ($000) | ||
NatWest Markets plc 0.300%, 4/1/22 (Dated 3/31/22, Repurchase Value $290,702,000, collateralized by U.S. Treasury Note/Bond 0.125%–2.500%, 4/30/22–10/31/28, with a value of $296,514,000) | 290,700 | 290,700 | |
Nomura International plc 0.270%, 4/1/22 (Dated 3/31/22, Repurchase Value $52,600,000, collateralized by U.S. Treasury Inflation Indexed Note/Bond 0.125%, 1/15/31–1/15/32, and U.S. Treasury Note/Bond 1.625%–3.750%, 8/15/41–11/15/50, with a value of $53,652,000) | 52,600 | 52,600 | |
386,600 | |||
U.S. Government and Agency Obligations (0.3%) | |||
United States Treasury Bill, 0.010%, 4/5/22 | 200,000 | 199,997 | |
Total Temporary Cash Investments (Cost $1,863,082) | 1,863,254 | ||
Total Investments (100.8%) (Cost $38,695,707) | 54,274,548 | ||
Other Assets and Liabilities—Net (-0.8%) | (449,079) | ||
Net Assets (100%) | 53,825,469 | ||
Cost is in $000. |
• | See Note A in Notes to Financial Statements. |
1 | Includes partial security positions on loan to broker-dealers. The total value of securities on loan is $407,834,000. |
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 $440,668,000 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 2022 | 3,711 | 840,681 | 54,525 |
($000s, except shares and per-share amounts) | Amount |
Assets | |
Investments in Securities, at Value1 | |
Unaffiliated Issuers (Cost $37,419,224) | 52,997,891 |
Affiliated Issuers (Cost $1,276,483) | 1,276,657 |
Total Investments in Securities | 54,274,548 |
Investment in Vanguard | 1,788 |
Cash Collateral Pledged—Futures Contracts | 47,549 |
Receivables for Investment Securities Sold | 32,750 |
Receivables for Accrued Income | 90,977 |
Receivables for Capital Shares Issued | 39,623 |
Total Assets | 54,487,235 |
Liabilities | |
Foreign Currency Due to Custodian, at Value (Proceeds $5) | 5 |
Due to Custodian | 6,789 |
Payables for Investment Securities Purchased | 54,670 |
Collateral for Securities on Loan | 440,668 |
Payables to Investment Advisor | 11,489 |
Payables for Capital Shares Redeemed | 132,616 |
Payables to Vanguard | 2,582 |
Variation Margin Payable—Futures Contracts | 12,947 |
Total Liabilities | 661,766 |
Net Assets | 53,825,469 |
1 Includes $407,834 of securities on loan. | |
At March 31, 2022, net assets consisted of: | |
Paid-in Capital | 36,867,861 |
Total Distributable Earnings (Loss) | 16,957,608 |
Net Assets | 53,825,469 |
Investor Shares—Net Assets | |
Applicable to 125,770,021 outstanding $.001 par value shares of beneficial interest (unlimited authorization) | 5,565,020 |
Net Asset Value Per Share—Investor Shares | $44.25 |
Admiral Shares—Net Assets | |
Applicable to 520,469,387 outstanding $.001 par value shares of beneficial interest (unlimited authorization) | 48,260,449 |
Net Asset Value Per Share—Admiral Shares | $92.72 |
Six Months Ended March 31, 2022 | |
($000) | |
Investment Income | |
Income | |
Dividends1 | 718,200 |
Interest2 | 669 |
Securities Lending—Net | 151 |
Total Income | 719,020 |
Expenses | |
Investment Advisory Fees—Note B | |
Basic Fee | 20,343 |
Performance Adjustment | 3,036 |
The Vanguard Group—Note C | |
Management and Administrative—Investor Shares | 4,831 |
Management and Administrative—Admiral Shares | 20,815 |
Marketing and Distribution—Investor Shares | 263 |
Marketing and Distribution—Admiral Shares | 1,347 |
Custodian Fees | 126 |
Shareholders’ Reports—Investor Shares | 15 |
Shareholders’ Reports—Admiral Shares | 276 |
Trustees’ Fees and Expenses | 13 |
Other Expenses | 8 |
Total Expenses | 51,073 |
Net Investment Income | 667,947 |
Realized Net Gain (Loss) | |
Investment Securities Sold2 | 1,521,187 |
Futures Contracts | (39,372) |
Foreign Currencies | 9 |
Realized Net Gain (Loss) | 1,481,824 |
Change in Unrealized Appreciation (Depreciation) | |
Investment Securities2 | 2,602,701 |
Futures Contracts | 86,358 |
Foreign Currencies | 88 |
Change in Unrealized Appreciation (Depreciation) | 2,689,147 |
Net Increase (Decrease) in Net Assets Resulting from Operations | 4,838,918 |
1 | Dividends are net of foreign withholding taxes of $2,875,000. |
2 | Interest income, realized net gain (loss), capital gain distributions received, and change in unrealized appreciation (depreciation) from an affiliated company of the fund were $504,000, ($19,000), $16,000, and ($10,000), respectively. Purchases and sales are for temporary cash investment purposes. |
Six Months Ended March 31, 2022 | Year Ended September 30, 2021 | ||
($000) | ($000) | ||
Increase (Decrease) in Net Assets | |||
Operations | |||
Net Investment Income | 667,947 | 1,168,906 | |
Realized Net Gain (Loss) | 1,481,824 | 2,715,655 | |
Change in Unrealized Appreciation (Depreciation) | 2,689,147 | 7,103,797 | |
Net Increase (Decrease) in Net Assets Resulting from Operations | 4,838,918 | 10,988,358 | |
Distributions | |||
Investor Shares | (344,394) | (138,888) | |
Admiral Shares | (2,948,588) | (1,066,361) | |
Total Distributions | (3,292,982) | (1,205,249) | |
Capital Share Transactions | |||
Investor Shares | 109,321 | (398,046) | |
Admiral Shares | 3,463,341 | 4,023,566 | |
Net Increase (Decrease) from Capital Share Transactions | 3,572,662 | 3,625,520 | |
Total Increase (Decrease) | 5,118,598 | 13,408,629 | |
Net Assets | |||
Beginning of Period | 48,706,871 | 35,298,242 | |
End of Period | 53,825,469 | 48,706,871 |
Investor Shares | ||||||
For a Share Outstanding Throughout Each Period | Six Months Ended March 31, 2022 | Year Ended September 30, | ||||
2021 | 2020 | 2019 | 2018 | 2017 | ||
Net Asset Value, Beginning of Period | $42.95 | $33.75 | $36.51 | $37.98 | $35.64 | $31.69 |
Investment Operations | ||||||
Net Investment Income1 | .549 | 1.041 | 1.000 | 1.002 | .965 | .908 |
Net Realized and Unrealized Gain (Loss) on Investments | 3.603 | 9.232 | (2.067) | .972 | 2.764 | 4.292 |
Total from Investment Operations | 4.152 | 10.273 | (1.067) | 1.974 | 3.729 | 5.200 |
Distributions | ||||||
Dividends from Net Investment Income | (.555) | (1.012) | (1.034) | (.997) | (.943) | (.912) |
Distributions from Realized Capital Gains | (2.297) | (.061) | (.659) | (2.447) | (.446) | (.338) |
Total Distributions | (2.852) | (1.073) | (1.693) | (3.444) | (1.389) | (1.250) |
Net Asset Value, End of Period | $44.25 | $42.95 | $33.75 | $36.51 | $37.98 | $35.64 |
Total Return2 | 9.90% | 30.66% | -2.87% | 6.43% | 10.58% | 16.68% |
Ratios/Supplemental Data | ||||||
Net Assets, End of Period (Millions) | $5,565 | $5,285 | $4,482 | $5,478 | $5,751 | $6,002 |
Ratio of Total Expenses to Average Net Assets3 | 0.28% | 0.28% | 0.28% | 0.27% | 0.27% | 0.26% |
Ratio of Net Investment Income to Average Net Assets | 2.42% | 2.56% | 2.89% | 2.84% | 2.60% | 2.70% |
Portfolio Turnover Rate | 17% | 29% | 35% | 32% | 37% | 28% |
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 0.01%, 0.01%, 0.01%, 0.01%, (0.00%), and (0.01%). |
Admiral Shares | ||||||
For a Share Outstanding Throughout Each Period | Six Months Ended March 31, 2022 | Year Ended September 30, | ||||
2021 | 2020 | 2019 | 2018 | 2017 | ||
Net Asset Value, Beginning of Period | $90.01 | $70.73 | $76.52 | $79.61 | $74.69 | $66.43 |
Investment Operations | ||||||
Net Investment Income1 | 1.194 | 2.262 | 2.159 | 2.167 | 2.099 | 1.968 |
Net Realized and Unrealized Gain (Loss) on Investments | 7.536 | 19.342 | (4.331) | 2.028 | 5.806 | 8.977 |
Total from Investment Operations | 8.730 | 21.604 | (2.172) | 4.195 | 7.905 | 10.945 |
Distributions | ||||||
Dividends from Net Investment Income | (1.206) | (2.196) | (2.236) | (2.156) | (2.048) | (1.977) |
Distributions from Realized Capital Gains | (4.814) | (.128) | (1.382) | (5.129) | (.937) | (.708) |
Total Distributions | (6.020) | (2.324) | (3.618) | (7.285) | (2.985) | (2.685) |
Net Asset Value, End of Period | $92.72 | $90.01 | $70.73 | $76.52 | $79.61 | $74.69 |
Total Return2 | 9.93% | 30.77% | -2.77% | 6.51% | 10.70% | 16.75% |
Ratios/Supplemental Data | ||||||
Net Assets, End of Period (Millions) | $48,260 | $43,422 | $30,816 | $30,972 | $27,625 | $23,373 |
Ratio of Total Expenses to Average Net Assets3 | 0.19% | 0.19% | 0.19% | 0.18% | 0.18% | 0.17% |
Ratio of Net Investment Income to Average Net Assets | 2.51% | 2.64% | 2.98% | 2.93% | 2.69% | 2.79% |
Portfolio Turnover Rate | 17% | 29% | 35% | 32% | 37% | 28% |
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 0.01%, 0.01%, 0.01%, 0.01%, (0.00%), and (0.01%). |
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. | Wellington Management Company llp provides 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 is subject to quarterly adjustments based on performance relative to the FTSE High Dividend Yield 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 investment advisory, corporate management, administrative, marketing, and distribution services at Vanguard’s cost of operations (as defined by the FSA). These costs of operations are allocated to the fund based on methods and guidelines approved by the board of trustees 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 | 52,157,544 | 253,750 | — | 52,411,294 |
Temporary Cash Investments | 1,276,657 | 586,597 | — | 1,863,254 |
Total | 53,434,201 | 840,347 | — | 54,274,548 |
Derivative Financial Instruments | ||||
Assets | ||||
Futures Contracts1 | 54,525 | — | — | 54,525 |
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 March 31, 2022, 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 | 38,720,190 |
Gross Unrealized Appreciation | 15,960,214 |
Gross Unrealized Depreciation | (351,331) |
Net Unrealized Appreciation (Depreciation) | 15,608,883 |
F. | During the six months ended March 31, 2022, the fund purchased $9,473,856,000 of investment securities and sold $8,777,147,000 of investment securities, other than temporary cash investments. |
G. | Capital share transactions for each class of shares were: |
Six Months Ended March 31, 2022 | Year Ended September 30, 2021 | ||||
Amount ($000) | Shares (000) | Amount ($000) | Shares (000) | ||
Investor Shares | |||||
Issued | 425,139 | 9,610 | 905,414 | 22,254 | |
Issued in Lieu of Cash Distributions | 318,178 | 7,404 | 127,115 | 3,134 | |
Redeemed | (633,996) | (14,303) | (1,430,575) | (35,121) | |
Net Increase (Decrease)—Investor Shares | 109,321 | 2,711 | (398,046) | (9,733) | |
Admiral Shares | |||||
Issued | 4,639,535 | 49,980 | 9,053,463 | 106,583 | |
Issued in Lieu of Cash Distributions | 2,599,126 | 28,861 | 918,531 | 10,777 | |
Redeemed | (3,775,320) | (40,796) | (5,948,428) | (70,619) | |
Net Increase (Decrease)—Admiral Shares | 3,463,341 | 38,045 | 4,023,566 | 46,741 |
H. | Management has determined that no events or transactions occurred subsequent to March 31, 2022, that would require recognition or disclosure in these financial statements. |
All rights reserved.
Vanguard Marketing Corporation, Distributor.
About Your Fund’s Expenses | 1 |
Financial Statements | 4 |
Trustees Approve Advisory Arrangement | 15 |
Liquidity Risk Management | 17 |
• | 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 March 31, 2022 | |||
PRIMECAP Core Fund | Beginning Account Value 9/30/2021 | Ending Account Value 3/31/2022 | Expenses Paid During Period |
Based on Actual Fund Return | $1,000.00 | $1,023.60 | $2.32 |
Based on Hypothetical 5% Yearly Return | 1,000.00 | 1,022.64 | 2.32 |
Communication Services | 6.4% |
Consumer Discretionary | 11.4 |
Consumer Staples | 0.7 |
Energy | 3.0 |
Financials | 10.3 |
Health Care | 25.7 |
Industrials | 15.4 |
Information Technology | 25.1 |
Materials | 1.9 |
Real Estate | 0.1 |
Shares | Market Value• ($000) | ||
Common Stocks (95.6%) | |||
Communication Services (6.2%) | |||
* | Alphabet Inc. Class A | 91,010 | 253,131 |
* | Alphabet Inc. Class C | 70,087 | 195,752 |
* | T-Mobile US Inc. | 491,167 | 63,041 |
* | Walt Disney Co. | 401,035 | 55,006 |
Activision Blizzard Inc. | 598,600 | 47,954 | |
* | Meta Platforms Inc. Class A | 149,200 | 33,176 |
Nintendo Co. Ltd. | 50,750 | 25,617 | |
* | Charter Communications Inc. Class A | 41,450 | 22,612 |
Electronic Arts Inc. | 154,850 | 19,590 | |
Comcast Corp. Class A | 178,538 | 8,359 | |
* | Altice USA Inc. Class A | 568,000 | 7,088 |
731,326 | |||
Consumer Discretionary (10.9%) | |||
Sony Group Corp. ADR | 1,844,900 | 189,490 | |
* | Mattel Inc. | 6,088,471 | 135,225 |
Whirlpool Corp. | 713,974 | 123,360 | |
* | CarMax Inc. | 1,240,300 | 119,664 |
TJX Cos. Inc. | 1,604,600 | 97,207 | |
Ross Stores Inc. | 1,052,680 | 95,225 | |
* | Alibaba Group Holding Ltd. ADR | 832,400 | 90,565 |
* | Tesla Inc. | 79,800 | 85,992 |
* | Dollar Tree Inc. | 347,200 | 55,604 |
* | Amazon.com Inc. | 12,475 | 40,668 |
Newell Brands Inc. | 1,675,000 | 35,862 | |
* | Royal Caribbean Cruises Ltd. | 389,100 | 32,599 |
* | Marriott International Inc. Class A | 184,290 | 32,389 |
* | Carnival Corp. | 1,432,100 | 28,957 |
Bath & Body Works Inc. | 584,300 | 27,930 | |
* | Capri Holdings Ltd. | 454,000 | 23,331 |
* | Victoria's Secret & Co. | 439,933 | 22,595 |
McDonald's Corp. | 53,000 | 13,106 | |
* | Burlington Stores Inc. | 62,500 | 11,386 |
* | Leslie's Inc. | 511,100 | 9,895 |
Restaurant Brands International Inc. | 151,200 | 8,829 | |
Lowe's Cos. Inc. | 35,000 | 7,077 | |
MGM Resorts International | 95,000 | 3,984 | |
* | Las Vegas Sands Corp. | 79,600 | 3,094 |
* | O'Reilly Automotive Inc. | 4,300 | 2,945 |
* | AutoZone Inc. | 1,055 | 2,157 |
Shares | Market Value• ($000) | ||
* | Hilton Worldwide Holdings Inc. | 13,800 | 2,094 |
* | Norwegian Cruise Line Holdings Ltd. | 68,440 | 1,497 |
1,302,727 | |||
Consumer Staples (0.7%) | |||
* | BJ's Wholesale Club Holdings Inc. | 306,600 | 20,729 |
Sysco Corp. | 231,500 | 18,902 | |
Tyson Foods Inc. Class A | 187,700 | 16,824 | |
Altria Group Inc. | 248,924 | 13,006 | |
Mowi ASA | 157,000 | 4,229 | |
Philip Morris International Inc. | 15,500 | 1,456 | |
Kroger Co. | 25,000 | 1,434 | |
Constellation Brands Inc. Class A | 4,400 | 1,014 | |
77,594 | |||
Energy (2.9%) | |||
Pioneer Natural Resources Co. | 679,173 | 169,814 | |
EOG Resources Inc. | 333,221 | 39,730 | |
Valero Energy Corp. | 311,900 | 31,670 | |
Cameco Corp. | 962,800 | 28,017 | |
Coterra Energy Inc. | 1,037,050 | 27,969 | |
Hess Corp. | 228,000 | 24,405 | |
* | Southwestern Energy Co. | 2,000,000 | 14,340 |
* | Transocean Ltd. (XNYS) | 1,237,200 | 5,654 |
Schlumberger NV | 47,700 | 1,971 | |
* | TechnipFMC plc | 197,500 | 1,531 |
* | Technip Energies NV | 7,820 | 95 |
345,196 | |||
Financials (9.8%) | |||
Wells Fargo & Co. | 4,128,300 | 200,057 | |
JPMorgan Chase & Co. | 1,391,466 | 189,685 | |
Raymond James Financial Inc. | 1,624,925 | 178,596 | |
Northern Trust Corp. | 1,107,650 | 128,986 | |
Charles Schwab Corp. | 1,274,654 | 107,466 | |
Goldman Sachs Group Inc. | 308,200 | 101,737 | |
Discover Financial Services | 547,281 | 60,305 | |
Evercore Inc. Class A | 398,800 | 44,394 | |
Marsh & McLennan Cos. Inc. | 220,612 | 37,597 | |
Bank of America Corp. | 894,059 | 36,853 | |
US Bancorp | 633,300 | 33,660 |
Shares | Market Value• ($000) | ||
CME Group Inc. | 80,450 | 19,136 | |
Progressive Corp. | 138,400 | 15,776 | |
Morgan Stanley | 171,400 | 14,980 | |
1,169,228 | |||
Health Care (24.5%) | |||
Eli Lilly & Co. | 2,291,412 | 656,192 | |
AstraZeneca plc ADR | 5,658,490 | 375,384 | |
Amgen Inc. | 1,460,600 | 353,202 | |
* | Biogen Inc. | 1,170,807 | 246,572 |
Thermo Fisher Scientific Inc. | 398,590 | 235,427 | |
Novartis AG ADR | 1,744,860 | 153,111 | |
Bristol-Myers Squibb Co. | 1,866,710 | 136,326 | |
* | Boston Scientific Corp. | 2,988,230 | 132,349 |
* | Elanco Animal Health Inc. (XNYS) | 4,366,091 | 113,911 |
Roche Holding AG | 220,493 | 87,241 | |
Zimmer Biomet Holdings Inc. | 551,950 | 70,594 | |
CVS Health Corp. | 663,980 | 67,201 | |
* | LivaNova plc | 727,940 | 59,567 |
Abbott Laboratories | 332,870 | 39,399 | |
Agilent Technologies Inc. | 262,390 | 34,722 | |
* | Illumina Inc. | 98,800 | 34,521 |
* | BioMarin Pharmaceutical Inc. | 288,770 | 22,264 |
1 | Siemens Healthineers AG | 358,975 | 22,246 |
* | IQVIA Holdings Inc. | 87,722 | 20,282 |
Stryker Corp. | 55,820 | 14,924 | |
Alcon Inc. | 125,260 | 9,937 | |
Humana Inc. | 17,844 | 7,765 | |
Sanofi ADR | 135,300 | 6,946 | |
Medtronic plc | 59,600 | 6,613 | |
Danaher Corp. | 19,140 | 5,614 | |
UnitedHealth Group Inc. | 8,489 | 4,329 | |
* | Waters Corp. | 10,431 | 3,238 |
Zimvie Inc. | 49,895 | 1,140 | |
Cerner Corp. | 10,000 | 936 | |
2,921,953 | |||
Industrials (14.7%) | |||
* | Southwest Airlines Co. | 6,783,469 | 310,683 |
AECOM | 2,810,300 | 215,859 | |
Siemens AG (Registered) | 1,542,528 | 213,590 | |
FedEx Corp. | 836,400 | 193,535 | |
Jacobs Engineering Group Inc. | 955,405 | 131,664 | |
United Parcel Service Inc. Class B | 502,200 | 107,702 | |
* | Airbus SE | 661,789 | 79,857 |
* | United Airlines Holdings Inc. | 1,466,100 | 67,968 |
* | TransDigm Group Inc. | 81,850 | 53,328 |
* | Delta Air Lines Inc. | 1,112,510 | 44,022 |
Union Pacific Corp. | 159,400 | 43,550 | |
Textron Inc. | 582,030 | 43,291 | |
Caterpillar Inc. | 188,400 | 41,979 | |
* | American Airlines Group Inc. | 2,199,000 | 40,132 |
General Dynamics Corp. | 156,800 | 37,817 | |
Carrier Global Corp. | 462,500 | 21,215 | |
* | XPO Logistics Inc. | 245,100 | 17,843 |
* | GXO Logistics Inc. | 240,600 | 17,164 |
Deere & Co. | 40,890 | 16,988 | |
Otis Worldwide Corp. | 180,500 | 13,889 | |
CSX Corp. | 339,000 | 12,696 | |
L3Harris Technologies Inc. | 34,000 | 8,448 |
Shares | Market Value• ($000) | ||
Science Applications International Corp. | 80,000 | 7,374 | |
Rockwell Automation Inc. | 25,650 | 7,183 | |
Pentair plc | 87,100 | 4,722 | |
Old Dominion Freight Line Inc. | 4,500 | 1,344 | |
1,753,843 | |||
Information Technology (24.0%) | |||
Microsoft Corp. | 1,211,950 | 373,656 | |
Texas Instruments Inc. | 1,521,400 | 279,146 | |
Intel Corp. | 5,152,270 | 255,347 | |
KLA Corp. | 656,200 | 240,209 | |
* | Flex Ltd. | 8,284,800 | 153,683 |
Applied Materials Inc. | 1,088,500 | 143,464 | |
Micron Technology Inc. | 1,718,600 | 133,862 | |
Hewlett Packard Enterprise Co. | 6,562,198 | 109,654 | |
HP Inc. | 2,693,423 | 97,771 | |
ASML Holding NV GDR (Registered) | 143,000 | 95,514 | |
Intuit Inc. | 181,550 | 87,297 | |
QUALCOMM Inc. | 565,280 | 86,386 | |
2 | Telefonaktiebolaget LM Ericsson ADR | 8,854,045 | 80,926 |
Visa Inc. Class A | 353,100 | 78,307 | |
Analog Devices Inc. | 460,000 | 75,983 | |
* | Adobe Inc. | 159,100 | 72,489 |
NetApp Inc. | 767,000 | 63,661 | |
Apple Inc. | 345,000 | 60,240 | |
Oracle Corp. | 684,300 | 56,612 | |
Cisco Systems Inc. | 937,100 | 52,253 | |
Corning Inc. | 1,035,200 | 38,209 | |
* | WEX Inc. | 192,080 | 34,277 |
Fidelity National Information Services Inc. | 303,300 | 30,457 | |
* | Keysight Technologies Inc. | 179,900 | 28,419 |
* | PayPal Holdings Inc. | 243,650 | 28,178 |
Mastercard Inc. Class A | 52,900 | 18,905 | |
NVIDIA Corp. | 69,200 | 18,882 | |
Jabil Inc. | 285,000 | 17,593 | |
Teradyne Inc. | 145,540 | 17,207 | |
* | Western Digital Corp. | 272,900 | 13,550 |
* | BlackBerry Ltd. | 1,276,500 | 9,523 |
* | Ciena Corp. | 57,000 | 3,456 |
2,855,116 | |||
Materials (1.8%) | |||
Albemarle Corp. | 380,465 | 84,140 | |
Glencore plc | 7,826,481 | 50,925 | |
DuPont de Nemours Inc. | 341,300 | 25,113 | |
Freeport-McMoRan Inc. | 367,200 | 18,265 | |
Corteva Inc. | 285,193 | 16,393 | |
Dow Inc. | 238,000 | 15,165 | |
Linde plc | 8,300 | 2,651 | |
Greif Inc. Class B | 28,000 | 1,785 | |
214,437 | |||
Real Estate (0.1%) | |||
American Homes 4 Rent Class A | 222,000 | 8,887 | |
Total Common Stocks (Cost $4,875,821) | 11,380,307 |
Shares | Market Value• ($000) | ||
Temporary Cash Investments (4.7%) | |||
Money Market Fund (4.7%) | |||
3,4 | Vanguard Market Liquidity Fund, 0.312% (Cost $560,785) | 5,609,189 | 560,863 |
Total Investments (100.3%) (Cost $5,436,606) | 11,941,170 | ||
Other Assets and Liabilities—Net (-0.3%) | (32,530) | ||
Net Assets (100%) | 11,908,640 | ||
Cost is in $000. |
• | See Note A in Notes to Financial Statements. |
* | Non-income-producing security. |
1 | Security exempt from registration under Rule 144A of the Securities Act of 1933. Such securities may be sold in transactions exempt from registration, normally to qualified institutional buyers. At March 31, 2022, the aggregate value was $22,246,000, representing 0.2% of net assets. |
2 | Includes partial security positions on loan to broker-dealers. The total value of securities on loan is $30,162,000. |
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 $33,000,000 was received for securities on loan. |
ADR—American Depositary Receipt. | |
GDR—Global Depositary Receipt. |
($000s, except shares and per-share amounts) | Amount |
Assets | |
Investments in Securities, at Value1 | |
Unaffiliated Issuers (Cost $4,875,821) | 11,380,307 |
Affiliated Issuers (Cost $560,785) | 560,863 |
Total Investments in Securities | 11,941,170 |
Investment in Vanguard | 399 |
Receivables for Investment Securities Sold | 908 |
Receivables for Accrued Income | 11,398 |
Receivables for Capital Shares Issued | 1,418 |
Total Assets | 11,955,293 |
Liabilities | |
Payables for Investment Securities Purchased | 1,068 |
Collateral for Securities on Loan | 33,000 |
Payables to Investment Advisor | 9,075 |
Payables for Capital Shares Redeemed | 2,728 |
Payables to Vanguard | 782 |
Total Liabilities | 46,653 |
Net Assets | 11,908,640 |
1 Includes $30,162 of securities on loan. | |
At March 31, 2022, net assets consisted of: | |
Paid-in Capital | 4,852,412 |
Total Distributable Earnings (Loss) | 7,056,228 |
Net Assets | 11,908,640 |
Net Assets | |
Applicable to 369,280,158 outstanding $.001 par value shares of beneficial interest (unlimited authorization) | 11,908,640 |
Net Asset Value Per Share | $32.25 |
Six Months Ended March 31, 2022 | |
($000) | |
Investment Income | |
Income | |
Dividends1 | 86,276 |
Interest2 | 268 |
Securities Lending—Net | 24 |
Total Income | 86,568 |
Expenses | |
Investment Advisory Fees—Note B | 18,591 |
The Vanguard Group—Note C | |
Management and Administrative | 8,159 |
Marketing and Distribution | 470 |
Custodian Fees | 450 |
Shareholders’ Reports | 35 |
Trustees’ Fees and Expenses | 3 |
Other Expenses | 8 |
Total Expenses | 27,716 |
Net Investment Income | 58,852 |
Realized Net Gain (Loss) | |
Investment Securities Sold2 | 527,344 |
Foreign Currencies | 45 |
Realized Net Gain (Loss) | 527,389 |
Change in Unrealized Appreciation (Depreciation) | |
Investment Securities2 | (303,157) |
Foreign Currencies | (63) |
Change in Unrealized Appreciation (Depreciation) | (303,220) |
Net Increase (Decrease) in Net Assets Resulting from Operations | 283,021 |
1 | Dividends are net of foreign withholding taxes of $2,749,000. |
2 | Interest income, realized net gain (loss), capital gain distributions received, and change in unrealized appreciation (depreciation) from an affiliated company of the fund were $268,000, ($20,000), $10,000, and ($17,000), respectively. Purchases and sales are for temporary cash investment purposes. |
Six Months Ended March 31, 2022 | Year Ended September 30, 2021 | ||
($000) | ($000) | ||
Increase (Decrease) in Net Assets | |||
Operations | |||
Net Investment Income | 58,852 | 87,492 | |
Realized Net Gain (Loss) | 527,389 | 888,632 | |
Change in Unrealized Appreciation (Depreciation) | (303,220) | 2,245,908 | |
Net Increase (Decrease) in Net Assets Resulting from Operations | 283,021 | 3,222,032 | |
Distributions | |||
Total Distributions | (814,697) | (791,131) | |
Capital Share Transactions | |||
Issued | 397,490 | 1,427,812 | |
Issued in Lieu of Cash Distributions | 650,830 | 655,544 | |
Redeemed | (663,556) | (2,140,054) | |
Net Increase (Decrease) from Capital Share Transactions | 384,764 | (56,698) | |
Total Increase (Decrease) | (146,912) | 2,374,203 | |
Net Assets | |||
Beginning of Period | 12,055,552 | 9,681,349 | |
End of Period | 11,908,640 | 12,055,552 |
For a Share Outstanding Throughout Each Period | Six Months Ended March 31, 2022 | Year Ended September 30, | ||||
2021 | 2020 | 2019 | 2018 | 2017 | ||
Net Asset Value, Beginning of Period | $33.78 | $27.08 | $27.08 | $29.92 | $26.33 | $22.55 |
Investment Operations | ||||||
Net Investment Income1 | .162 | .243 | .398 | .391 | .314 | .304 |
Net Realized and Unrealized Gain (Loss) on Investments | .625 | 8.746 | 1.553 | (1.020) | 4.379 | 4.701 |
Total from Investment Operations | .787 | 8.989 | 1.951 | (.629) | 4.693 | 5.005 |
Distributions | ||||||
Dividends from Net Investment Income | (.236) | (.357) | (.388) | (.322) | (.287) | (.278) |
Distributions from Realized Capital Gains | (2.081) | (1.932) | (1.563) | (1.889) | (.816) | (.947) |
Total Distributions | (2.317) | (2.289) | (1.951) | (2.211) | (1.103) | (1.225) |
Net Asset Value, End of Period | $32.25 | $33.78 | $27.08 | $27.08 | $29.92 | $26.33 |
Total Return2 | 2.36% | 34.71% | 7.02% | -1.06% | 18.27% | 23.13% |
Ratios/Supplemental Data | ||||||
Net Assets, End of Period (Millions) | $11,909 | $12,056 | $9,681 | $10,655 | $11,654 | $10,224 |
Ratio of Total Expenses to Average Net Assets | 0.46% | 0.46% | 0.46% | 0.46% | 0.46% | 0.46% |
Ratio of Net Investment Income to Average Net Assets | 0.92% | 0.76% | 1.52% | 1.48% | 1.13% | 1.27% |
Portfolio Turnover Rate | 4% | 8% | 8% | 7% | 9% | 9% |
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. |
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. | PRIMECAP Management Company provides investment advisory services to the fund for a fee calculated at an annual percentage rate of average net assets. For the six months ended March 31, 2022, the investment advisory fee represented an effective annual basic rate of 0.31% of the fund’s average net assets. |
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, and distribution services at Vanguard’s cost of operations (as defined by the FSA). These costs of operations are allocated to the fund based on methods and guidelines approved by the board of trustees and are generally settled twice a month. |
D. | Various inputs may be used to determine the value of the fund’s investments. These inputs are summarized in three broad levels for financial statement purposes. The inputs or methodologies used to value securities are not necessarily an indication of the risk associated with investing in those securities. |
Level 1 ($000) | Level 2 ($000) | Level 3 ($000) | Total ($000) | |
Investments | ||||
Assets | ||||
Common Stocks | 10,896,507 | 483,800 | — | 11,380,307 |
Temporary Cash Investments | 560,863 | — | — | 560,863 |
Total | 11,457,370 | 483,800 | — | 11,941,170 |
E. | As of March 31, 2022, gross unrealized appreciation and depreciation for investments based on cost for U.S. federal income tax purposes were as follows: |
Amount ($000) | |
Tax Cost | 5,437,513 |
Gross Unrealized Appreciation | 6,720,960 |
Gross Unrealized Depreciation | (217,303) |
Net Unrealized Appreciation (Depreciation) | 6,503,657 |
F. | During the six months ended March 31, 2022, the fund purchased $417,229,000 of investment securities and sold $851,240,000 of investment securities, other than temporary cash investments. |
G. | Capital shares issued and redeemed were: |
Six Months Ended March 31, 2022 | Year Ended September 30, 2021 | ||
Shares (000) | Shares (000) | ||
Issued | 11,882 | 43,207 | |
Issued in Lieu of Cash Distributions | 20,256 | 22,897 | |
Redeemed | (19,732) | (66,768) | |
Net Increase (Decrease) in Shares Outstanding | 12,406 | (664) |
H. | Management has determined that no events or transactions occurred subsequent to March 31, 2022, that would require recognition or disclosure in these financial statements. |
All rights reserved.
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 filed 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 FENWAY FUNDS | ||
BY: | /s/ MORTIMER J. BUCKLEY* | |
MORTIMER J. BUCKLEY | ||
CHIEF EXECUTIVE OFFICER |
Date: May 19, 2022
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 FENWAY FUNDS | ||
BY: | /s/ MORTIMER J. BUCKLEY* | |
MORTIMER J. BUCKLEY | ||
CHIEF EXECUTIVE OFFICER |
Date: May 19, 2022
VANGUARD FENWAY FUNDS | ||
BY: | /s/ CHRISTINE BUCHANAN* | |
CHRISTINE BUCHANAN | ||
CHIEF FINANCIAL OFFICER |
Date: May 19, 2022
* By: | /s/ Anne E. Robinson |
Anne E. Robinson, pursuant to a Power of Attorney filed on November 29, 2021 (see File Number 33-64845), a Power of Attorney filed on October 12, 2021 (see File Number 33-23444), and a Power of Attorney filed on August 26, 2021 (see file Number 811-02652), Incorporated by Reference.