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, 2022—March 31, 2023
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, 2023 | |||
Beginning Account Value 9/30/2022 | Ending Account Value 3/31/2023 | Expenses Paid During Period | |
Based on Actual Fund Return | |||
Equity Income Fund | |||
Investor Shares | $1,000.00 | $1,114.80 | $1.42 |
Admiral™ Shares | 1,000.00 | 1,115.30 | 0.95 |
Based on Hypothetical 5% Yearly Return | |||
Equity Income Fund | |||
Investor Shares | $1,000.00 | $1,023.59 | $1.36 |
Admiral Shares | 1,000.00 | 1,024.03 | 0.91 |
Communication Services | 2.3% |
Consumer Discretionary | 5.5 |
Consumer Staples | 13.8 |
Energy | 10.0 |
Financials | 18.4 |
Health Care | 17.0 |
Industrials | 10.4 |
Information Technology | 9.3 |
Materials | 3.7 |
Real Estate | 1.4 |
Utilities | 8.2 |
Shares | Market Value• ($000) | ||
Common Stocks (97.5%) | |||
Communication Services (2.3%) | |||
Comcast Corp. Class A | 22,840,706 | 865,891 | |
Verizon Communications Inc. | 6,505,874 | 253,014 | |
AT&T Inc. | 4,062,864 | 78,210 | |
1 | Sirius XM Holdings Inc. | 4,364,547 | 17,327 |
1,214,442 | |||
Consumer Discretionary (5.3%) | |||
Home Depot Inc. | 4,454,642 | 1,314,654 | |
TJX Cos. Inc. | 5,281,385 | 413,849 | |
Lennar Corp. Class A | 3,081,412 | 323,887 | |
McDonald's Corp. | 720,551 | 201,473 | |
Advance Auto Parts Inc. | 814,416 | 99,041 | |
Macy's Inc. | 5,137,331 | 89,852 | |
Williams-Sonoma Inc. | 722,163 | 87,858 | |
Best Buy Co. Inc. | 858,865 | 67,223 | |
Starbucks Corp. | 549,233 | 57,192 | |
Tapestry Inc. | 1,125,491 | 48,520 | |
Wendy's Co. | 1,711,364 | 37,274 | |
Travel & Leisure Co. | 943,775 | 36,996 | |
Ralph Lauren Corp. Class A | 291,078 | 33,960 | |
Whirlpool Corp. | 115,941 | 15,307 | |
Penske Automotive Group Inc. | 105,739 | 14,995 | |
Bloomin' Brands Inc. | 459,915 | 11,797 | |
2,853,878 | |||
Consumer Staples (13.5%) | |||
Procter & Gamble Co. | 7,237,018 | 1,076,072 | |
Philip Morris International Inc. | 8,627,481 | 839,022 | |
Mondelez International Inc. Class A | 10,071,755 | 702,203 | |
Unilever plc ADR | 12,835,796 | 666,563 | |
Archer-Daniels-Midland Co. | 8,212,623 | 654,217 | |
Keurig Dr Pepper Inc. | 15,266,992 | 538,619 | |
Walmart Inc. | 2,582,612 | 380,806 | |
Kellogg Co. | 5,214,047 | 349,133 | |
Kimberly-Clark Corp. | 2,513,880 | 337,413 | |
Pernod Ricard SA | 1,412,829 | 319,908 | |
PepsiCo Inc. | 1,578,292 | 287,723 | |
Coca-Cola Co. | 3,532,649 | 219,130 | |
Altria Group Inc. | 4,453,019 | 198,694 | |
Hershey Co. | 635,500 | 161,678 | |
Kroger Co. | 3,078,928 | 152,007 |
Shares | Market Value• ($000) | ||
Tyson Foods Inc. Class A | 1,863,837 | 110,563 | |
Colgate-Palmolive Co. | 1,257,740 | 94,519 | |
Coca-Cola Europacific Partners plc | 590,332 | 34,942 | |
Medifast Inc. | 219,813 | 22,788 | |
Ingredion Inc. | 200,407 | 20,387 | |
Target Corp. | 66,810 | 11,066 | |
7,177,453 | |||
Energy (9.7%) | |||
ConocoPhillips | 12,325,806 | 1,222,843 | |
EOG Resources Inc. | 10,339,852 | 1,185,257 | |
Exxon Mobil Corp. | 4,610,608 | 505,599 | |
Coterra Energy Inc. | 20,097,274 | 493,187 | |
Chevron Corp. | 2,642,264 | 431,112 | |
1 | TC Energy Corp. | 8,439,969 | 328,294 |
Phillips 66 | 3,175,549 | 321,937 | |
Diamondback Energy Inc. | 1,561,964 | 211,131 | |
Marathon Petroleum Corp. | 1,455,900 | 196,299 | |
Valero Energy Corp. | 1,206,336 | 168,405 | |
APA Corp. | 1,348,094 | 48,612 | |
Halliburton Co. | 1,045,602 | 33,083 | |
Schlumberger NV | 520,270 | 25,545 | |
Vitesse Energy Inc. | 345,055 | 6,567 | |
5,177,871 | |||
Financials (18.0%) | |||
JPMorgan Chase & Co. | 12,589,525 | 1,640,541 | |
Morgan Stanley | 8,401,026 | 737,610 | |
MetLife Inc. | 12,292,503 | 712,228 | |
Chubb Ltd. | 2,938,922 | 570,680 | |
M&T Bank Corp. | 4,569,348 | 546,357 | |
Royal Bank of Canada | 5,433,439 | 519,624 | |
American International Group Inc. | 9,268,573 | 466,765 | |
Raymond James Financial Inc. | 4,999,981 | 466,348 | |
Bank of America Corp. | 12,259,488 | 350,621 | |
Blackstone Inc. | 3,963,411 | 348,146 | |
Regions Financial Corp. | 16,396,607 | 304,321 | |
Fidelity National Information Services Inc. | 5,282,542 | 287,000 | |
Wells Fargo & Co. | 7,447,792 | 278,398 | |
Truist Financial Corp. | 7,586,266 | 258,692 | |
Citigroup Inc. | 4,592,548 | 215,345 | |
Aflac Inc. | 2,321,185 | 149,763 |
Shares | Market Value• ($000) | ||
Ameriprise Financial Inc. | 468,972 | 143,740 | |
Bank of New York Mellon Corp. | 2,909,789 | 132,221 | |
Discover Financial Services | 1,255,244 | 124,068 | |
Hartford Financial Services Group Inc. | 1,630,558 | 113,634 | |
PNC Financial Services Group Inc. | 802,955 | 102,056 | |
MGIC Investment Corp. | 7,326,802 | 98,326 | |
Synchrony Financial | 3,255,317 | 94,665 | |
Jefferies Financial Group Inc. | 2,931,818 | 93,056 | |
Allstate Corp. | 703,367 | 77,940 | |
Radian Group Inc. | 3,087,063 | 68,224 | |
Zions Bancorp NA | 2,215,710 | 66,316 | |
Goldman Sachs Group Inc. | 179,780 | 58,808 | |
Fidelity National Financial Inc. | 1,677,470 | 58,594 | |
Popular Inc. | 978,844 | 56,195 | |
Assurant Inc. | 458,951 | 55,106 | |
Unum Group | 1,124,871 | 44,500 | |
SLM Corp. | 3,538,888 | 43,847 | |
Lincoln National Corp. | 1,901,745 | 42,732 | |
Jackson Financial Inc. Class A | 1,097,530 | 41,059 | |
Fifth Third Bancorp | 1,265,620 | 33,716 | |
BlackRock Inc. | 48,327 | 32,337 | |
Travelers Cos. Inc. | 164,351 | 28,171 | |
Western Union Co. | 2,381,370 | 26,552 | |
Comerica Inc. | 559,169 | 24,279 | |
East West Bancorp Inc. | 359,392 | 19,946 | |
Ally Financial Inc. | 687,894 | 17,534 | |
American Financial Group Inc. | 83,000 | 10,084 | |
Credicorp Ltd. | 68,778 | 9,106 | |
Progressive Corp. | 62,964 | 9,008 | |
US Bancorp | 63,412 | 2,286 | |
9,580,545 | |||
Health Care (16.6%) | |||
Pfizer Inc. | 39,420,516 | 1,608,357 | |
Merck & Co. Inc. | 12,894,123 | 1,371,806 | |
Johnson & Johnson | 8,681,156 | 1,345,579 | |
Eli Lilly & Co. | 3,111,606 | 1,068,588 | |
AstraZeneca plc ADR | 6,783,612 | 470,851 | |
Becton Dickinson and Co. | 1,577,229 | 390,427 | |
AbbVie Inc. | 2,344,658 | 373,668 | |
UnitedHealth Group Inc. | 782,554 | 369,827 | |
Roche Holding AG | 1,246,882 | 356,287 | |
Medtronic plc | 3,862,652 | 311,407 | |
Bristol-Myers Squibb Co. | 4,244,219 | 294,167 | |
Elevance Health Inc. | 586,301 | 269,587 | |
Amgen Inc. | 1,114,587 | 269,451 | |
CVS Health Corp. | 2,610,066 | 193,954 | |
Gilead Sciences Inc. | 1,660,233 | 137,750 | |
Organon & Co. | 406,871 | 9,570 | |
8,841,276 | |||
Industrials (10.1%) | |||
General Dynamics Corp. | 2,494,225 | 569,207 | |
Johnson Controls International plc | 7,875,817 | 474,282 |
Shares | Market Value• ($000) | ||
Siemens AG (Registered) | 2,731,858 | 442,572 | |
L3Harris Technologies Inc. | 2,248,827 | 441,310 | |
Raytheon Technologies Corp. | 4,145,240 | 405,943 | |
Honeywell International Inc. | 2,100,722 | 401,490 | |
Emerson Electric Co. | 4,464,032 | 388,996 | |
Eaton Corp. plc | 2,093,796 | 358,751 | |
Canadian National Railway Co. | 2,876,839 | 339,452 | |
Union Pacific Corp. | 1,186,721 | 238,839 | |
Caterpillar Inc. | 1,018,185 | 233,001 | |
Automatic Data Processing Inc. | 986,071 | 219,529 | |
Waste Management Inc. | 942,696 | 153,820 | |
Cummins Inc. | 575,185 | 137,400 | |
3M Co. | 1,211,349 | 127,325 | |
United Parcel Service Inc. Class B (XNYS) | 518,609 | 100,605 | |
Lockheed Martin Corp. | 201,814 | 95,404 | |
Triton International Ltd. | 1,384,476 | 87,527 | |
ManpowerGroup Inc. | 975,724 | 80,526 | |
CH Robinson Worldwide Inc. | 413,103 | 41,050 | |
Snap-on Inc. | 100,175 | 24,732 | |
Oshkosh Corp. | 194,014 | 16,138 | |
Huntington Ingalls Industries Inc. | 71,146 | 14,729 | |
nVent Electric plc | 210,858 | 9,054 | |
5,401,682 | |||
Information Technology (9.0%) | |||
Cisco Systems Inc. | 20,470,890 | 1,070,116 | |
QUALCOMM Inc. | 7,216,320 | 920,658 | |
Broadcom Inc. | 1,056,579 | 677,838 | |
NXP Semiconductors NV | 2,243,598 | 418,375 | |
Analog Devices Inc. | 2,047,416 | 403,791 | |
Corning Inc. | 11,420,122 | 402,902 | |
TE Connectivity Ltd. | 2,780,787 | 364,700 | |
HP Inc. | 4,872,435 | 143,006 | |
Texas Instruments Inc. | 649,177 | 120,753 | |
NetApp Inc. | 1,753,658 | 111,971 | |
Intel Corp. | 1,962,871 | 64,127 | |
International Business Machines Corp. | 471,153 | 61,764 | |
KLA Corp. | 134,535 | 53,702 | |
4,813,703 | |||
Materials (3.6%) | |||
LyondellBasell Industries NV Class A | 5,225,977 | 490,667 | |
PPG Industries Inc. | 3,301,801 | 441,055 | |
Rio Tinto plc ADR | 4,665,321 | 320,041 | |
Celanese Corp. Class A | 2,091,128 | 227,703 | |
Reliance Steel & Aluminum Co. | 505,600 | 129,808 | |
CF Industries Holdings Inc. | 1,463,392 | 106,081 | |
Steel Dynamics Inc. | 921,573 | 104,193 | |
Linde plc | 161,455 | 57,387 | |
Olin Corp. | 325,561 | 18,069 | |
Eastman Chemical Co. | 184,979 | 15,601 | |
Chemours Co. | 287,257 | 8,600 | |
1,919,205 |
Shares | Market Value• ($000) | ||
Real Estate (1.4%) | |||
Crown Castle Inc. | 2,994,578 | 400,795 | |
Welltower Inc. | 4,841,668 | 347,099 | |
747,894 | |||
Utilities (8.0%) | |||
NextEra Energy Inc. | 9,317,825 | 718,218 | |
American Electric Power Co. Inc. | 7,692,009 | 699,896 | |
Exelon Corp. | 16,464,280 | 689,689 | |
Sempra Energy (XNYS) | 3,514,449 | 531,244 | |
Atmos Energy Corp. | 4,213,919 | 473,476 | |
WEC Energy Group Inc. | 1,469,734 | 139,316 | |
PPL Corp. | 4,486,297 | 124,674 | |
NRG Energy Inc. | 3,306,780 | 113,390 | |
Vistra Corp. | 4,702,224 | 112,853 | |
Xcel Energy Inc. | 1,606,316 | 108,330 | |
UGI Corp. | 2,749,178 | 95,562 | |
National Fuel Gas Co. | 1,427,362 | 82,416 | |
Eversource Energy | 864,580 | 67,662 | |
DTE Energy Co. | 571,512 | 62,603 | |
AES Corp. | 2,231,532 | 53,735 | |
Portland General Electric Co. | 1,048,824 | 51,277 | |
IDACORP Inc. | 461,816 | 50,029 | |
Edison International | 536,288 | 37,857 | |
Entergy Corp. | 234,410 | 25,255 | |
Duke Energy Corp. | 109,414 | 10,555 | |
Evergy Inc. | 168,657 | 10,308 | |
Southern Co. | 125,443 | 8,728 | |
CMS Energy Corp. | 31,873 | 1,956 | |
4,269,029 | |||
Total Common Stocks (Cost $42,380,415) | 51,996,978 | ||
Temporary Cash Investments (3.1%) | |||
Money Market Fund (2.2%) | |||
2,3 | Vanguard Market Liquidity Fund, 4.839% | 11,495,118 | 1,149,397 |
Face Amount ($000) | |||
Repurchase Agreements (0.9%) | |||
Goldman Sachs & Co. 4.760%, 4/3/23 (Dated 3/31/23, Repurchase Value $52,321,000, collateralized by Fannie Mae 2.000%–4.500%, 2/1/41–4/1/52, Ginnie Mae 2.400%–6.000%, 9/15/24–4/15/57, and U.S. Treasury Bill 0.000%, 6/29/23, with a value of $53,346,000) | 52,300 | 52,300 |
Face Amount ($000) | Market Value• ($000) | ||
NatWest Markets plc 4.770%, 4/3/23 (Dated 3/31/23, Repurchase Value $258,603,000, collateralized by U.S. Treasury Note/Bond 0.125%–4.625%, 5/31/23–5/15/32, with a value of $263,670,000) | 258,500 | 258,500 | |
Nomura International plc 4.800%, 4/3/23 (Dated 3/31/23, Repurchase Value $192,177,000, collateralized by U.S. Treasury Inflation Indexed Note/Bond 0.250%–2.375, 1/15/27–7/15/29, and U.S. Treasury Note/Bond 0.375%–4.375%, 11/30/25–8/15/42, with a value of $195,942,000) | 192,100 | 192,100 | |
502,900 | |||
Total Temporary Cash Investments (Cost $1,652,174) | 1,652,297 | ||
Total Investments (100.6%) (Cost $44,032,589) | 53,649,275 | ||
Other Assets and Liabilities—Net (-0.6%) | (294,076) | ||
Net Assets (100%) | 53,355,199 | ||
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 $343,878,000. |
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 $365,988,000 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 2023 | 4,215 | 872,031 | 47,814 |
($000s, except shares, footnotes, and per-share amounts) | Amount |
Assets | |
Investments in Securities, at Value1 | |
Unaffiliated Issuers (Cost $42,883,315) | 52,499,878 |
Affiliated Issuers (Cost $1,149,274) | 1,149,397 |
Total Investments in Securities | 53,649,275 |
Investment in Vanguard | 1,963 |
Cash Collateral Pledged—Futures Contracts | 46,779 |
Receivables for Investment Securities Sold | 232,638 |
Receivables for Accrued Income | 107,905 |
Receivables for Capital Shares Issued | 47,606 |
Variation Margin Receivable—Futures Contracts | 12,058 |
Total Assets | 54,098,224 |
Liabilities | |
Foreign Currency Due to Custodian, at Value (Proceeds $3) | 97 |
Due to Custodian | 11,713 |
Payables for Investment Securities Purchased | 309,765 |
Collateral for Securities on Loan | 365,988 |
Payables to Investment Advisor | 10,316 |
Payables for Capital Shares Redeemed | 42,678 |
Payables to Vanguard | 2,468 |
Total Liabilities | 743,025 |
Net Assets | 53,355,199 |
1 Includes $343,878,000 of securities on loan. | |
At March 31, 2023, net assets consisted of: | |
Paid-in Capital | 42,787,509 |
Total Distributable Earnings (Loss) | 10,567,690 |
Net Assets | 53,355,199 |
Investor Shares—Net Assets | |
Applicable to 133,023,222 outstanding $.001 par value shares of beneficial interest (unlimited authorization) | 5,223,861 |
Net Asset Value Per Share—Investor Shares | $39.27 |
Admiral Shares—Net Assets | |
Applicable to 584,894,267 outstanding $.001 par value shares of beneficial interest (unlimited authorization) | 48,131,338 |
Net Asset Value Per Share—Admiral Shares | $82.29 |
Six Months Ended March 31, 2023 | |
($000) | |
Investment Income | |
Income | |
Dividends1 | 832,188 |
Interest2 | 24,989 |
Securities Lending—Net | 452 |
Total Income | 857,629 |
Expenses | |
Investment Advisory Fees—Note B | |
Basic Fee | 22,427 |
Performance Adjustment | 1,432 |
The Vanguard Group—Note C | |
Management and Administrative—Investor Shares | 4,642 |
Management and Administrative—Admiral Shares | 20,413 |
Marketing and Distribution—Investor Shares | 128 |
Marketing and Distribution—Admiral Shares | 1,170 |
Custodian Fees | 153 |
Shareholders’ Reports—Investor Shares | 61 |
Shareholders’ Reports—Admiral Shares | 386 |
Trustees’ Fees and Expenses | 12 |
Other Expenses | 6 |
Total Expenses | 50,830 |
Expenses Paid Indirectly | (24) |
Net Expenses | 50,806 |
Net Investment Income | 806,823 |
Realized Net Gain (Loss) | |
Investment Securities Sold2 | 1,174,500 |
Futures Contracts | (79,549) |
Foreign Currencies | 687 |
Realized Net Gain (Loss) | 1,095,638 |
Change in Unrealized Appreciation (Depreciation) | |
Investment Securities2 | 3,413,558 |
Futures Contracts | 183,776 |
Foreign Currencies | 611 |
Change in Unrealized Appreciation (Depreciation) | 3,597,945 |
Net Increase (Decrease) in Net Assets Resulting from Operations | 5,500,406 |
1 | Dividends are net of foreign withholding taxes of $8,577,000. |
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 $17,155,000, $224,000, $2,000, and ($44,000), respectively. Purchases and sales are for temporary cash investment purposes. |
Six Months Ended March 31, 2023 | Year Ended September 30, 2022 | ||
($000) | ($000) | ||
Increase (Decrease) in Net Assets | |||
Operations | |||
Net Investment Income | 806,823 | 1,445,651 | |
Realized Net Gain (Loss) | 1,095,638 | 3,027,890 | |
Change in Unrealized Appreciation (Depreciation) | 3,597,945 | (6,877,921) | |
Net Increase (Decrease) in Net Assets Resulting from Operations | 5,500,406 | (2,404,380) | |
Distributions | |||
Investor Shares | (371,405) | (417,573) | |
Admiral Shares | (3,380,091) | (3,618,297) | |
Total Distributions | (3,751,496) | (4,035,870) | |
Capital Share Transactions | |||
Investor Shares | 220,466 | 181,131 | |
Admiral Shares | 3,524,618 | 5,413,453 | |
Net Increase (Decrease) from Capital Share Transactions | 3,745,084 | 5,594,584 | |
Total Increase (Decrease) | 5,493,994 | (845,666) | |
Net Assets | |||
Beginning of Period | 47,861,205 | 48,706,871 | |
End of Period | 53,355,199 | 47,861,205 |
Investor Shares | ||||||
For a Share Outstanding Throughout Each Period | Six Months Ended March 31, 2023 | Year Ended September 30, | ||||
2022 | 2021 | 2020 | 2019 | 2018 | ||
Net Asset Value, Beginning of Period | $37.83 | $42.95 | $33.75 | $36.51 | $37.98 | $35.64 |
Investment Operations | ||||||
Net Investment Income1 | .597 | 1.159 | 1.041 | 1.000 | 1.002 | .965 |
Net Realized and Unrealized Gain (Loss) on Investments | 3.769 | (2.848) | 9.232 | (2.067) | .972 | 2.764 |
Total from Investment Operations | 4.366 | (1.689) | 10.273 | (1.067) | 1.974 | 3.729 |
Distributions | ||||||
Dividends from Net Investment Income | (.601) | (1.134) | (1.012) | (1.034) | (.997) | (.943) |
Distributions from Realized Capital Gains | (2.325) | (2.297) | (.061) | (.659) | (2.447) | (.446) |
Total Distributions | (2.926) | (3.431) | (1.073) | (1.693) | (3.444) | (1.389) |
Net Asset Value, End of Period | $39.27 | $37.83 | $42.95 | $33.75 | $36.51 | $37.98 |
Total Return2 | 11.48% | -4.67% | 30.66% | -2.87% | 6.43% | 10.58% |
Ratios/Supplemental Data | ||||||
Net Assets, End of Period (Millions) | $5,224 | $4,823 | $5,285 | $4,482 | $5,478 | $5,751 |
Ratio of Total Expenses to Average Net Assets3 | 0.27%4 | 0.28%4 | 0.28% | 0.28% | 0.27% | 0.27% |
Ratio of Net Investment Income to Average Net Assets | 2.82% | 2.69% | 2.56% | 2.89% | 2.84% | 2.60% |
Portfolio Turnover Rate | 20% | 40% | 29% | 35% | 32% | 37% |
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%, 0.01%, and (0.00%). |
4 | The ratio of expenses to average net assets for the period net of reduction from broker commission abatement arrangements was 0.27% and 0.28% . |
Admiral Shares | ||||||
For a Share Outstanding Throughout Each Period | Six Months Ended March 31, 2023 | Year Ended September 30, | ||||
2022 | 2021 | 2020 | 2019 | 2018 | ||
Net Asset Value, Beginning of Period | $79.28 | $90.01 | $70.73 | $76.52 | $79.61 | $74.69 |
Investment Operations | ||||||
Net Investment Income1 | 1.291 | 2.516 | 2.262 | 2.159 | 2.167 | 2.099 |
Net Realized and Unrealized Gain (Loss) on Investments | 7.891 | (5.973) | 19.342 | (4.331) | 2.028 | 5.806 |
Total from Investment Operations | 9.182 | (3.457) | 21.604 | (2.172) | 4.195 | 7.905 |
Distributions | ||||||
Dividends from Net Investment Income | (1.299) | (2.460) | (2.196) | (2.236) | (2.156) | (2.048) |
Distributions from Realized Capital Gains | (4.873) | (4.813) | (.128) | (1.382) | (5.129) | (.937) |
Total Distributions | (6.172) | (7.273) | (2.324) | (3.618) | (7.285) | (2.985) |
Net Asset Value, End of Period | $82.29 | $79.28 | $90.01 | $70.73 | $76.52 | $79.61 |
Total Return2 | 11.53% | -4.58% | 30.77% | -2.77% | 6.51% | 10.70% |
Ratios/Supplemental Data | ||||||
Net Assets, End of Period (Millions) | $48,131 | $43,039 | $43,422 | $30,816 | $30,972 | $27,625 |
Ratio of Total Expenses to Average Net Assets3 | 0.18%4 | 0.19%4 | 0.19% | 0.19% | 0.18% | 0.18% |
Ratio of Net Investment Income to Average Net Assets | 2.91% | 2.78% | 2.64% | 2.98% | 2.93% | 2.69% |
Portfolio Turnover Rate | 20% | 40% | 29% | 35% | 32% | 37% |
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%, 0.01%, and (0.00%). |
4 | The ratio of expenses to average net assets for the period net of reduction from broker commission abatement arrangements was 0.18% and 0.19%. |
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. | The fund has asked its investment advisor to direct certain security trades, subject to obtaining the best price and execution, to brokers who have agreed to rebate to the fund part of the commissions generated. Such rebates are used solely to reduce the fund’s management and administrative expenses. For the six months ended March 31, 2023, these arrangements reduced the fund’s expenses by $24,000 (an annual rate of less than 0.01% of average net assets). |
E. | 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 | 50,878,211 | 1,118,767 | — | 51,996,978 |
Temporary Cash Investments | 1,149,397 | 502,900 | — | 1,652,297 |
Total | 52,027,608 | 1,621,667 | — | 53,649,275 |
Derivative Financial Instruments | ||||
Assets | ||||
Futures Contracts1 | 47,814 | — | — | 47,814 |
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. |
F. | As of March 31, 2023, 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 | 44,130,748 |
Gross Unrealized Appreciation | 11,099,679 |
Gross Unrealized Depreciation | (1,533,338) |
Net Unrealized Appreciation (Depreciation) | 9,566,341 |
G. | During the six months ended March 31, 2023, the fund purchased $11,532,263,000 of investment securities and sold $10,586,466,000 of investment securities, other than temporary cash investments. |
H. | Capital share transactions for each class of shares were: |
Six Months Ended March 31, 2023 | Year Ended September 30, 2022 | ||||
Amount ($000) | Shares (000) | Amount ($000) | Shares (000) | ||
Investor Shares | |||||
Issued | 407,113 | 9,890 | 847,534 | 19,586 | |
Issued in Lieu of Cash Distributions | 346,519 | 8,707 | 385,775 | 9,104 | |
Redeemed | (533,166) | (13,048) | (1,052,178) | (24,275) | |
Net Increase (Decrease)—Investor Shares | 220,466 | 5,549 | 181,131 | 4,415 | |
Admiral Shares | |||||
Issued | 4,904,787 | 57,257 | 9,294,275 | 102,758 | |
Issued in Lieu of Cash Distributions | 3,042,984 | 36,492 | 3,190,190 | 35,953 | |
Redeemed | (4,423,153) | (51,731) | (7,071,012) | (78,259) | |
Net Increase (Decrease)—Admiral Shares | 3,524,618 | 42,018 | 5,413,453 | 60,452 |
I. | Management has determined that no events or transactions occurred subsequent to March 31, 2023, 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, 2023 | |||
PRIMECAP Core Fund | Beginning Account Value 9/30/2022 | Ending Account Value 3/31/2023 | Expenses Paid During Period |
Based on Actual Fund Return | $1,000.00 | $1,164.90 | $2.48 |
Based on Hypothetical 5% Yearly Return | 1,000.00 | 1,022.64 | 2.32 |
Communication Services | 5.9% |
Consumer Discretionary | 10.0 |
Consumer Staples | 1.2 |
Energy | 3.4 |
Financials | 9.7 |
Health Care | 28.4 |
Industrials | 15.9 |
Information Technology | 23.5 |
Materials | 1.9 |
Real Estate | 0.1 |
Shares | Market Value• ($000) | ||
Common Stocks (95.2%) | |||
Communication Services (5.6%) | |||
* | Alphabet Inc. Class A | 1,776,550 | 184,282 |
* | Alphabet Inc. Class C | 1,288,490 | 134,003 |
* | Walt Disney Co. | 627,535 | 62,835 |
* | T-Mobile US Inc. | 424,800 | 61,528 |
Activision Blizzard Inc. | 706,750 | 60,491 | |
* | Meta Platforms Inc. Class A | 146,800 | 31,113 |
Electronic Arts Inc. | 169,850 | 20,458 | |
Nintendo Co. Ltd. | 507,500 | 19,712 | |
* | Charter Communications Inc. Class A | 40,950 | 14,644 |
* | Netflix Inc. | 18,300 | 6,322 |
Comcast Corp. Class A | 156,400 | 5,929 | |
* | Altice USA Inc. Class A | 574,200 | 1,964 |
603,281 | |||
Consumer Discretionary (9.5%) | |||
Sony Group Corp. ADR | 1,796,100 | 162,816 | |
TJX Cos. Inc. | 1,589,200 | 124,530 | |
Ross Stores Inc. | 1,064,180 | 112,941 | |
* | Mattel Inc. | 5,996,471 | 110,395 |
* | Alibaba Group Holding Ltd. ADR | 918,900 | 93,893 |
Whirlpool Corp. | 686,614 | 90,647 | |
* | CarMax Inc. | 1,068,680 | 68,695 |
* | Royal Caribbean Cruises Ltd. | 758,700 | 49,543 |
* | Tesla Inc. | 213,500 | 44,293 |
Marriott International Inc. Class A | 185,290 | 30,766 | |
* | Capri Holdings Ltd. | 439,363 | 20,650 |
McDonald's Corp. | 70,500 | 19,712 | |
Newell Brands Inc. | 1,550,000 | 19,282 | |
Bath & Body Works Inc. | 526,300 | 19,252 | |
* | Victoria's Secret & Co. | 391,700 | 13,377 |
Restaurant Brands International Inc. | 168,300 | 11,300 | |
* | Burlington Stores Inc. | 46,000 | 9,297 |
* | Leslie's Inc. | 511,100 | 5,627 |
Lowe's Cos. Inc. | 25,000 | 4,999 | |
MGM Resorts International | 95,000 | 4,220 | |
* | Carnival Corp. | 348,400 | 3,536 |
* | Las Vegas Sands Corp. | 59,400 | 3,413 |
* | Amazon.com Inc. | 23,250 | 2,401 |
Hilton Worldwide Holdings Inc. | 13,800 | 1,944 |
Shares | Market Value• ($000) | ||
* | Norwegian Cruise Line Holdings Ltd. | 68,440 | 921 |
1,028,450 | |||
Consumer Staples (1.1%) | |||
* | Dollar Tree Inc. | 365,500 | 52,467 |
* | BJ's Wholesale Club Holdings Inc. | 411,300 | 31,288 |
Sysco Corp. | 266,500 | 20,582 | |
Tyson Foods Inc. Class A | 187,700 | 11,134 | |
Altria Group Inc. | 174,200 | 7,773 | |
123,244 | |||
Energy (3.2%) | |||
Pioneer Natural Resources Co. | 673,923 | 137,642 | |
Valero Energy Corp. | 309,400 | 43,192 | |
EOG Resources Inc. | 321,421 | 36,845 | |
Hess Corp. | 272,400 | 36,049 | |
Cameco Corp. | 1,151,600 | 30,137 | |
Coterra Energy Inc. | 1,007,050 | 24,713 | |
Schlumberger NV | 216,400 | 10,625 | |
* | Southwestern Energy Co. | 2,000,000 | 10,000 |
* | TechnipFMC plc | 698,600 | 9,536 |
* | Transocean Ltd. (XNYS) | 1,237,200 | 7,869 |
346,608 | |||
Financials (9.3%) | |||
Raymond James Financial Inc. | 1,795,305 | 167,448 | |
Wells Fargo & Co. | 4,040,500 | 151,034 | |
JPMorgan Chase & Co. | 849,900 | 110,750 | |
Northern Trust Corp. | 1,164,050 | 102,588 | |
Visa Inc. Class A | 374,740 | 84,489 | |
Goldman Sachs Group Inc. | 246,700 | 80,698 | |
Evercore Inc. Class A | 551,830 | 63,670 | |
Discover Financial Services | 515,681 | 50,970 | |
Fidelity National Information Services Inc. | 610,185 | 33,151 | |
CME Group Inc. | 154,050 | 29,504 | |
* | WEX Inc. | 148,480 | 27,304 |
Bank of New York Mellon Corp. | 555,800 | 25,255 | |
Mastercard Inc. Class A | 55,400 | 20,133 | |
Progressive Corp. | 131,430 | 18,802 | |
* | PayPal Holdings Inc. | 220,800 | 16,768 |
Marsh & McLennan Cos. Inc. | 58,812 | 9,795 |
Shares | Market Value• ($000) | ||
Charles Schwab Corp. | 90,400 | 4,735 | |
Morgan Stanley | 22,800 | 2,002 | |
Bank of America Corp. | 62,959 | 1,801 | |
1,000,897 | |||
Health Care (27.0%) | |||
Eli Lilly & Co. | 1,985,732 | 681,940 | |
AstraZeneca plc ADR | 5,697,780 | 395,483 | |
* | Biogen Inc. | 1,263,167 | 351,198 |
Amgen Inc. | 1,351,720 | 326,778 | |
Thermo Fisher Scientific Inc. | 321,610 | 185,366 | |
* | Boston Scientific Corp. | 3,225,230 | 161,358 |
Novartis AG ADR | 1,595,600 | 146,795 | |
Bristol-Myers Squibb Co. | 1,795,700 | 124,460 | |
Zimmer Biomet Holdings Inc. | 598,950 | 77,384 | |
Roche Holding AG | 213,632 | 61,044 | |
* | Elanco Animal Health Inc. (XNYS) | 6,386,878 | 60,037 |
GSK plc ADR | 1,517,050 | 53,977 | |
* | BioMarin Pharmaceutical Inc. | 476,720 | 46,356 |
CVS Health Corp. | 614,100 | 45,634 | |
* | LivaNova plc | 756,810 | 32,982 |
Agilent Technologies Inc. | 235,620 | 32,596 | |
Abbott Laboratories | 252,640 | 25,582 | |
* | Illumina Inc. | 86,630 | 20,146 |
Stryker Corp. | 62,820 | 17,933 | |
Danaher Corp. | 47,140 | 11,881 | |
Humana Inc. | 21,844 | 10,604 | |
* | IQVIA Holdings Inc. | 46,056 | 9,160 |
1 | Siemens Healthineers AG | 148,420 | 8,557 |
Sanofi ADR | 135,200 | 7,358 | |
Alcon Inc. | 84,460 | 5,958 | |
* | Waters Corp. | 17,631 | 5,459 |
Medtronic plc | 54,500 | 4,394 | |
UnitedHealth Group Inc. | 8,489 | 4,012 | |
* | Zimvie Inc. | 27,740 | 201 |
2,914,633 | |||
Industrials (15.2%) | |||
Siemens AG (Registered) | 1,562,246 | 253,090 | |
FedEx Corp. | 949,900 | 217,043 | |
AECOM | 2,384,180 | 201,034 | |
Southwest Airlines Co. | 6,148,969 | 200,087 | |
Jacobs Solutions Inc. | 970,315 | 114,022 | |
United Parcel Service Inc. Class B (XNYS) | 563,000 | 109,216 | |
Airbus SE | 721,945 | 96,428 | |
* | United Airlines Holdings Inc. | 1,424,440 | 63,031 |
* | Delta Air Lines Inc. | 1,565,300 | 54,660 |
TransDigm Group Inc. | 65,800 | 48,498 | |
Textron Inc. | 487,820 | 34,455 | |
Caterpillar Inc. | 149,660 | 34,248 | |
General Dynamics Corp. | 144,800 | 33,045 | |
* | American Airlines Group Inc. | 2,128,300 | 31,392 |
Carrier Global Corp. | 490,000 | 22,418 | |
Union Pacific Corp. | 89,500 | 18,013 | |
Otis Worldwide Corp. | 183,300 | 15,471 | |
* | XPO Inc. | 432,100 | 13,784 |
JB Hunt Transport Services Inc. | 72,500 | 12,721 | |
CSX Corp. | 339,000 | 10,150 | |
* | GXO Logistics Inc. | 165,200 | 8,336 |
* | RXO Inc. | 413,611 | 8,123 |
Shares | Market Value• ($000) | ||
* | Saia Inc. | 28,500 | 7,754 |
Rockwell Automation Inc. | 25,650 | 7,527 | |
L3Harris Technologies Inc. | 34,000 | 6,672 | |
Deere & Co. | 15,700 | 6,482 | |
Knight-Swift Transportation Holdings Inc. | 81,700 | 4,623 | |
AMETEK Inc. | 10,000 | 1,453 | |
Norfolk Southern Corp. | 1,300 | 276 | |
1,634,052 | |||
Information Technology (22.4%) | |||
Microsoft Corp. | 1,012,210 | 291,820 | |
Texas Instruments Inc. | 1,400,410 | 260,490 | |
KLA Corp. | 602,360 | 240,444 | |
Intel Corp. | 7,313,980 | 238,948 | |
* | Flex Ltd. | 8,474,700 | 195,003 |
Applied Materials Inc. | 1,046,900 | 128,591 | |
Oracle Corp. | 1,308,650 | 121,600 | |
Micron Technology Inc. | 1,799,820 | 108,601 | |
Analog Devices Inc. | 433,800 | 85,554 | |
ASML Holding NV GDR (Registered) | 122,200 | 83,183 | |
Intuit Inc. | 170,700 | 76,103 | |
HP Inc. | 2,375,423 | 69,719 | |
QUALCOMM Inc. | 535,530 | 68,323 | |
* | Adobe Inc. | 159,100 | 61,312 |
Apple Inc. | 311,500 | 51,366 | |
Hewlett Packard Enterprise Co. | 3,224,450 | 51,366 | |
NetApp Inc. | 758,800 | 48,449 | |
Cisco Systems Inc. | 900,300 | 47,063 | |
Jabil Inc. | 406,000 | 35,793 | |
Corning Inc. | 853,000 | 30,094 | |
Telefonaktiebolaget LM Ericsson ADR | 4,445,000 | 26,003 | |
* | Keysight Technologies Inc. | 150,900 | 24,367 |
Teradyne Inc. | 178,740 | 19,216 | |
Seagate Technology Holdings plc | 217,900 | 14,408 | |
* | Western Digital Corp. | 374,400 | 14,104 |
NVIDIA Corp. | 34,170 | 9,491 | |
*,2 | BlackBerry Ltd. | 1,276,500 | 5,821 |
* | Ciena Corp. | 58,000 | 3,046 |
2,410,278 | |||
Materials (1.8%) | |||
Albemarle Corp. | 284,465 | 62,878 | |
Glencore plc | 9,227,281 | 53,096 | |
DuPont de Nemours Inc. | 341,600 | 24,517 | |
Freeport-McMoRan Inc. | 411,200 | 16,822 | |
Corteva Inc. | 269,793 | 16,271 | |
Dow Inc. | 239,500 | 13,129 | |
Linde plc | 13,500 | 4,798 | |
Greif Inc. Class B | 24,000 | 1,837 | |
193,348 | |||
Real Estate (0.1%) | |||
American Homes 4 Rent Class A | 220,000 | 6,919 | |
Total Common Stocks (Cost $4,993,336) | 10,261,710 |
Shares | Market Value• ($000) | ||
Temporary Cash Investments (4.8%) | |||
Money Market Fund (4.8%) | |||
3,4 | Vanguard Market Liquidity Fund, 4.839% (Cost $519,438) | 5,196,152 | 519,564 |
Total Investments (100.0%) (Cost $5,512,774) | 10,781,274 | ||
Other Assets and Liabilities—Net (0.0%) | (1,152) | ||
Net Assets (100%) | 10,780,122 | ||
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, 2023, the aggregate value was $8,557,000, representing 0.1% of net assets. |
2 | Includes partial security positions on loan to broker-dealers. The total value of securities on loan is $3,197,000. |
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 $3,505,000 was received for securities on loan. |
ADR—American Depositary Receipt. | |
GDR—Global Depositary Receipt. |
($000s, except shares, footnotes, and per-share amounts) | Amount |
Assets | |
Investments in Securities, at Value1 | |
Unaffiliated Issuers (Cost $4,993,336) | 10,261,710 |
Affiliated Issuers (Cost $519,438) | 519,564 |
Total Investments in Securities | 10,781,274 |
Investment in Vanguard | 386 |
Cash | 1,000 |
Receivables for Investment Securities Sold | 5,459 |
Receivables for Accrued Income | 12,441 |
Receivables for Capital Shares Issued | 1,039 |
Total Assets | 10,801,599 |
Liabilities | |
Payables for Investment Securities Purchased | 2,923 |
Collateral for Securities on Loan | 3,505 |
Payables to Investment Advisor | 8,240 |
Payables for Capital Shares Redeemed | 6,126 |
Payables to Vanguard | 683 |
Total Liabilities | 21,477 |
Net Assets | 10,780,122 |
1 Includes $3,197,000 of securities on loan. | |
At March 31, 2023, net assets consisted of: | |
Paid-in Capital | 5,113,336 |
Total Distributable Earnings (Loss) | 5,666,786 |
Net Assets | 10,780,122 |
Net Assets | |
Applicable to 378,770,425 outstanding $.001 par value shares of beneficial interest (unlimited authorization) | 10,780,122 |
Net Asset Value Per Share | $28.46 |
Six Months Ended March 31, 2023 | |
($000) | |
Investment Income | |
Income | |
Dividends1 | 94,273 |
Interest2 | 11,458 |
Securities Lending—Net | 4 |
Total Income | 105,735 |
Expenses | |
Investment Advisory Fees—Note B | 16,278 |
The Vanguard Group—Note C | |
Management and Administrative | 7,544 |
Marketing and Distribution | 197 |
Custodian Fees | 181 |
Shareholders’ Reports | 40 |
Trustees’ Fees and Expenses | 2 |
Other Expenses | 6 |
Total Expenses | 24,248 |
Expenses Paid Indirectly | (1) |
Net Expenses | 24,247 |
Net Investment Income | 81,488 |
Realized Net Gain (Loss) | |
Investment Securities Sold2 | 395,563 |
Foreign Currencies | 8 |
Realized Net Gain (Loss) | 395,571 |
Change in Unrealized Appreciation (Depreciation) | |
Investment Securities2 | 1,093,085 |
Foreign Currencies | 95 |
Change in Unrealized Appreciation (Depreciation) | 1,093,180 |
Net Increase (Decrease) in Net Assets Resulting from Operations | 1,570,239 |
1 | Dividends are net of foreign withholding taxes of $2,397,000. |
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 $11,458,000, ($7,000), $1,000, and $114,000, respectively. Purchases and sales are for temporary cash investment purposes. |
Six Months Ended March 31, 2023 | Year Ended September 30, 2022 | ||
($000) | ($000) | ||
Increase (Decrease) in Net Assets | |||
Operations | |||
Net Investment Income | 81,488 | 123,984 | |
Realized Net Gain (Loss) | 395,571 | 682,004 | |
Change in Unrealized Appreciation (Depreciation) | 1,093,180 | (2,632,497) | |
Net Increase (Decrease) in Net Assets Resulting from Operations | 1,570,239 | (1,826,509) | |
Distributions | |||
Total Distributions | (822,420) | (814,697) | |
Capital Share Transactions | |||
Issued | 290,235 | 609,191 | |
Issued in Lieu of Cash Distributions | 653,228 | 650,830 | |
Redeemed | (549,967) | (1,035,560) | |
Net Increase (Decrease) from Capital Share Transactions | 393,496 | 224,461 | |
Total Increase (Decrease) | 1,141,315 | (2,416,745) | |
Net Assets | |||
Beginning of Period | 9,638,807 | 12,055,552 | |
End of Period | 10,780,122 | 9,638,807 |
For a Share Outstanding Throughout Each Period | Six Months Ended March 31, 2023 | Year Ended September 30, | ||||
2022 | 2021 | 2020 | 2019 | 2018 | ||
Net Asset Value, Beginning of Period | $26.49 | $33.78 | $27.08 | $27.08 | $29.92 | $26.33 |
Investment Operations | ||||||
Net Investment Income1 | .218 | .339 | .243 | .398 | .391 | .314 |
Net Realized and Unrealized Gain (Loss) on Investments | 4.035 | (5.312) | 8.746 | 1.553 | (1.020) | 4.379 |
Total from Investment Operations | 4.253 | (4.973) | 8.989 | 1.951 | (.629) | 4.693 |
Distributions | ||||||
Dividends from Net Investment Income | (.365) | (.236) | (.357) | (.388) | (.322) | (.287) |
Distributions from Realized Capital Gains | (1.918) | (2.081) | (1.932) | (1.563) | (1.889) | (.816) |
Total Distributions | (2.283) | (2.317) | (2.289) | (1.951) | (2.211) | (1.103) |
Net Asset Value, End of Period | $28.46 | $26.49 | $33.78 | $27.08 | $27.08 | $29.92 |
Total Return2 | 16.49% | -15.92% | 34.71% | 7.02% | -1.06% | 18.27% |
Ratios/Supplemental Data | ||||||
Net Assets, End of Period (Millions) | $10,780 | $9,639 | $12,056 | $9,681 | $10,655 | $11,654 |
Ratio of Total Expenses to Average Net Assets | 0.46%3 | 0.46% | 0.46% | 0.46% | 0.46% | 0.46% |
Ratio of Net Investment Income to Average Net Assets | 1.51% | 1.08% | 0.76% | 1.52% | 1.48% | 1.13% |
Portfolio Turnover Rate | 5% | 6% | 8% | 8% | 7% | 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. |
3 | The ratio of expenses to average net assets for the period net of reduction from custody fee offset arrangements was 0.46%. |
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, 2023, 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, 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. | The fund’s custodian bank has agreed to reduce its fees when the fund maintains cash on deposit in the non-interest-bearing custody account. For the six months ended March 31, 2023, custodian fee offset arrangements reduced the fund’s expenses by $1,000 (an annual rate of less than 0.01% of average net assets). |
E. | 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 | 9,769,783 | 491,927 | — | 10,261,710 |
Temporary Cash Investments | 519,564 | — | — | 519,564 |
Total | 10,289,347 | 491,927 | — | 10,781,274 |
F. | As of March 31, 2023, gross unrealized appreciation and depreciation for investments based on cost for U.S. federal income tax purposes were as follows: |
Amount ($000) | |
Tax Cost | 5,516,289 |
Gross Unrealized Appreciation | 5,662,670 |
Gross Unrealized Depreciation | (397,685) |
Net Unrealized Appreciation (Depreciation) | 5,264,985 |
G. | During the six months ended March 31, 2023, the fund purchased $491,917,000 of investment securities and sold $854,221,000 of investment securities, other than temporary cash investments. |
H. | Capital shares issued and redeemed were: |
Six Months Ended March 31, 2023 | Year Ended September 30, 2022 | ||
Shares (000) | Shares (000) | ||
Issued | 10,254 | 19,092 | |
Issued in Lieu of Cash Distributions | 24,113 | 20,256 | |
Redeemed | (19,512) | (32,307) | |
Net Increase (Decrease) in Shares Outstanding | 14,855 | 7,041 |
I. | Management has determined that no events or transactions occurred subsequent to March 31, 2023, 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, 2023
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, 2023
VANGUARD fenway FUNDS | ||
BY: | /s/ CHRISTINE BUCHANAN* | |
CHRISTINE BUCHANAN | ||
CHIEF FINANCIAL OFFICER |
Date: May 19, 2023
* By: | /s/ Anne E. Robinson |
Anne E. Robinson, pursuant to a Power of Attorney filed on March 29, 2023 (see File Number 2-11444), Incorporated by Reference.