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, 2023—March 31, 2024
Item 1: Reports to Shareholders
![](https://capedge.com/proxy/N-CSRS/0001104659-24-065490/tm248933d4equincq652i001.jpg)
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, 2024 | |||
Beginning Account Value 9/30/2023 | Ending Account Value 3/31/2024 | Expenses Paid During Period | |
Based on Actual Fund Return | |||
Equity Income Fund | |||
Investor Shares | $1,000.00 | $1,174.50 | $1.47 |
Admiral™ Shares | 1,000.00 | 1,175.00 | 0.98 |
Based on Hypothetical 5% Yearly Return | |||
Equity Income Fund | |||
Investor Shares | $1,000.00 | $1,023.65 | $1.37 |
Admiral Shares | 1,000.00 | 1,024.10 | 0.91 |
Communication Services | 2.0% |
Consumer Discretionary | 5.1 |
Consumer Staples | 12.0 |
Energy | 11.1 |
Financials | 21.2 |
Health Care | 15.0 |
Industrials | 9.8 |
Information Technology | 10.0 |
Materials | 3.9 |
Real Estate | 2.3 |
Utilities | 7.6 |
Shares | Market Value• ($000) | ||
Common Stocks (97.7%) | |||
Communication Services (2.0%) | |||
Comcast Corp. Class A | 7,515,225 | 325,785 | |
T-Mobile US Inc. | 1,633,328 | 266,592 | |
Omnicom Group Inc. | 2,230,884 | 215,861 | |
Verizon Communications Inc. | 3,989,569 | 167,402 | |
TEGNA Inc. | 5,235,477 | 78,218 | |
AT&T Inc. | 2,830,803 | 49,822 | |
Fox Corp. Class A | 832,338 | 26,027 | |
1,129,707 | |||
Consumer Discretionary (5.0%) | |||
Home Depot Inc. | 1,955,193 | 750,012 | |
Lennar Corp. Class A | 2,141,099 | 368,226 | |
Tractor Supply Co. | 1,363,559 | 356,871 | |
Booking Holdings Inc. | 91,546 | 332,118 | |
McDonald's Corp. | 513,998 | 144,922 | |
Tapestry Inc. | 2,919,633 | 138,624 | |
eBay Inc. | 2,529,141 | 133,488 | |
Macy's Inc. | 5,751,421 | 114,971 | |
Ralph Lauren Corp. | 553,438 | 103,914 | |
Travel & Leisure Co. | 2,082,443 | 101,956 | |
Starbucks Corp. | 820,586 | 74,993 | |
Wendy's Co. | 3,388,726 | 63,844 | |
Bloomin' Brands Inc. | 1,819,319 | 52,178 | |
Lowe's Cos. Inc. | 165,356 | 42,121 | |
Genuine Parts Co. | 190,120 | 29,455 | |
Wyndham Hotels & Resorts Inc. | 297,205 | 22,811 | |
Polaris Inc. | 194,682 | 19,492 | |
1 | Dillard's Inc. Class A | 41,223 | 19,442 |
2,869,438 | |||
Consumer Staples (11.7%) | |||
Procter & Gamble Co. | 5,555,646 | 901,404 | |
Philip Morris International Inc. | 8,498,211 | 778,606 | |
Unilever plc ADR | 12,461,782 | 625,457 | |
Kenvue Inc. | 28,874,917 | 619,656 | |
Pernod Ricard SA | 3,292,209 | 532,956 | |
Archer-Daniels-Midland Co. | 8,370,960 | 525,780 | |
Keurig Dr Pepper Inc. | 16,913,789 | 518,746 | |
Walmart Inc. | 7,079,683 | 425,985 | |
PepsiCo Inc. | 1,567,021 | 274,244 | |
Mondelez International Inc. Class A | 3,318,834 | 232,319 | |
Altria Group Inc. | 4,678,977 | 204,097 | |
Coca-Cola Co. | 2,993,857 | 183,164 |
Shares | Market Value• ($000) | ||
Kellanova | 3,182,087 | 182,302 | |
Kroger Co. | 3,030,900 | 173,155 | |
Hershey Co. | 707,126 | 137,536 | |
Target Corp. | 652,599 | 115,647 | |
Colgate-Palmolive Co. | 1,196,047 | 107,704 | |
General Mills Inc. | 1,241,135 | 86,842 | |
Ingredion Inc. | 473,506 | 55,329 | |
Coca-Cola Europacific Partners plc | 328,925 | 23,008 | |
Bunge Global SA | 85,791 | 8,795 | |
6,712,732 | |||
Energy (10.8%) | |||
ConocoPhillips | 11,027,979 | 1,403,641 | |
EOG Resources Inc. | 10,204,603 | 1,304,557 | |
Phillips 66 | 3,542,041 | 578,557 | |
Coterra Energy Inc. | 16,402,469 | 457,301 | |
Exxon Mobil Corp. | 3,819,805 | 444,014 | |
EQT Corp. | 10,519,114 | 389,944 | |
Targa Resources Corp. | 3,247,319 | 363,667 | |
Chevron Corp. | 1,589,333 | 250,701 | |
Marathon Petroleum Corp. | 1,123,702 | 226,426 | |
Valero Energy Corp. | 1,220,856 | 208,388 | |
Schlumberger NV | 3,544,260 | 194,261 | |
APA Corp. | 3,497,975 | 120,260 | |
Marathon Oil Corp. | 4,191,580 | 118,789 | |
HF Sinclair Corp. | 1,895,069 | 114,405 | |
Scorpio Tankers Inc. | 314,449 | 22,499 | |
Halliburton Co. | 310,396 | 12,236 | |
6,209,646 | |||
Financials (20.7%) | |||
JPMorgan Chase & Co. | 11,957,521 | 2,395,091 | |
MetLife Inc. | 11,198,667 | 829,933 | |
Wells Fargo & Co. | 13,658,756 | 791,662 | |
Regions Financial Corp. | 33,566,608 | 706,241 | |
Raymond James Financial Inc. | 4,583,480 | 588,611 | |
Royal Bank of Canada | 5,174,810 | 521,932 | |
Morgan Stanley | 5,528,206 | 520,536 | |
M&T Bank Corp. | 3,537,822 | 514,541 | |
American International Group Inc. | 6,557,610 | 512,608 | |
Intercontinental Exchange Inc. | 3,437,972 | 472,480 | |
Bank of America Corp. | 11,593,751 | 439,635 | |
PNC Financial Services Group Inc. | 2,378,829 | 384,419 | |
Citigroup Inc. | 3,948,413 | 249,698 | |
Chubb Ltd. | 955,702 | 247,651 |
Shares | Market Value• ($000) | ||
Allstate Corp. | 1,324,507 | 229,153 | |
Ares Management Corp. Class A | 1,472,427 | 195,803 | |
Ameriprise Financial Inc. | 420,974 | 184,572 | |
Hartford Financial Services Group Inc. | 1,612,490 | 166,167 | |
Bank of New York Mellon Corp. | 2,681,049 | 154,482 | |
Nasdaq Inc. | 2,411,639 | 152,174 | |
Synchrony Financial | 3,378,728 | 145,691 | |
MGIC Investment Corp. | 6,304,272 | 140,964 | |
SLM Corp. | 6,094,749 | 132,805 | |
Unum Group | 2,048,129 | 109,903 | |
Popular Inc. | 1,167,109 | 102,811 | |
State Street Corp. | 1,196,341 | 92,501 | |
Jackson Financial Inc. Class A | 1,282,702 | 84,838 | |
Western Union Co. | 5,037,345 | 70,422 | |
Everest Group Ltd. | 175,844 | 69,898 | |
XP Inc. Class A | 2,638,686 | 67,709 | |
Corebridge Financial Inc. | 2,109,731 | 60,613 | |
Comerica Inc. | 974,113 | 53,566 | |
American Financial Group Inc. | 379,234 | 51,758 | |
Goldman Sachs Group Inc. | 123,312 | 51,506 | |
BlackRock Inc. | 57,076 | 47,584 | |
Zions Bancorp NA | 1,054,495 | 45,765 | |
Radian Group Inc. | 1,302,159 | 43,583 | |
Assurant Inc. | 213,994 | 40,282 | |
Lincoln National Corp. | 1,025,919 | 32,758 | |
Voya Financial Inc. | 408,840 | 30,221 | |
Credicorp Ltd. | 172,497 | 29,226 | |
Progressive Corp. | 121,085 | 25,043 | |
Equitable Holdings Inc. | 520,112 | 19,769 | |
OneMain Holdings Inc. | 293,994 | 15,020 | |
Jefferies Financial Group Inc. | 325,084 | 14,336 | |
Lazard Inc. | 206,228 | 8,635 | |
Assured Guaranty Ltd. | 54,489 | 4,754 | |
11,849,350 | |||
Health Care (14.7%) | |||
Merck & Co. Inc. | 11,673,312 | 1,540,294 | |
Johnson & Johnson | 8,990,950 | 1,422,278 | |
Pfizer Inc. | 38,520,926 | 1,068,956 | |
Gilead Sciences Inc. | 10,969,940 | 803,548 | |
UnitedHealth Group Inc. | 1,101,933 | 545,126 | |
AstraZeneca plc ADR | 6,617,506 | 448,336 | |
Elevance Health Inc. | 742,948 | 385,248 | |
Roche Holding AG | 1,493,302 | 381,268 | |
Becton Dickinson & Co. | 1,387,054 | 343,227 | |
AbbVie Inc. | 1,545,388 | 281,415 | |
Amgen Inc. | 954,808 | 271,471 | |
Bristol-Myers Squibb Co. | 4,664,686 | 252,966 | |
CVS Health Corp. | 3,144,479 | 250,804 | |
Cigna Group | 614,396 | 223,142 | |
Abbott Laboratories | 1,001,500 | 113,830 | |
Medtronic plc | 407,082 | 35,477 | |
Quest Diagnostics Inc. | 194,935 | 25,948 | |
Royalty Pharma plc Class A | 315,921 | 9,595 | |
8,402,929 |
Shares | Market Value• ($000) | ||
Industrials (9.6%) | |||
United Parcel Service Inc. Class B (XNYS) | 3,968,023 | 589,767 | |
General Dynamics Corp. | 1,985,485 | 560,880 | |
Johnson Controls International plc | 8,378,381 | 547,276 | |
Emerson Electric Co. | 4,785,191 | 542,736 | |
L3Harris Technologies Inc. | 2,109,520 | 449,539 | |
Caterpillar Inc. | 971,859 | 356,118 | |
Canadian National Railway Co. | 2,641,160 | 347,794 | |
Siemens AG (Registered) | 1,819,039 | 347,325 | |
Union Pacific Corp. | 1,007,555 | 247,788 | |
Automatic Data Processing Inc. | 990,590 | 247,390 | |
Lockheed Martin Corp. | 513,990 | 233,799 | |
Honeywell International Inc. | 976,101 | 200,345 | |
3M Co. | 1,750,511 | 185,677 | |
PACCAR Inc. | 1,058,686 | 131,161 | |
Oshkosh Corp. | 805,087 | 100,402 | |
ManpowerGroup Inc. | 1,289,196 | 100,093 | |
Cummins Inc. | 298,744 | 88,025 | |
CNH Industrial NV | 5,386,674 | 69,811 | |
RTX Corp. | 622,611 | 60,723 | |
Ryder System Inc. | 293,306 | 35,252 | |
AGCO Corp. | 257,808 | 31,716 | |
Eaton Corp. plc | 82,533 | 25,806 | |
FedEx Corp. | 23,699 | 6,867 | |
5,506,290 | |||
Information Technology (9.8%) | |||
Broadcom Inc. | 1,048,004 | 1,389,035 | |
Cisco Systems Inc. | 25,288,796 | 1,262,164 | |
QUALCOMM Inc. | 5,003,572 | 847,105 | |
NXP Semiconductors NV | 2,646,119 | 655,629 | |
TE Connectivity Ltd. | 2,849,031 | 413,793 | |
Corning Inc. | 12,306,701 | 405,629 | |
HP Inc. | 4,680,779 | 141,453 | |
Intel Corp. | 2,675,961 | 118,197 | |
International Business Machines Corp. | 541,495 | 103,404 | |
KLA Corp. | 134,535 | 93,982 | |
Texas Instruments Inc. | 494,253 | 86,104 | |
Hewlett Packard Enterprise Co. | 2,734,426 | 48,481 | |
Dell Technologies Inc. Class C | 219,683 | 25,068 | |
Amdocs Ltd. | 173,258 | 15,657 | |
NetApp Inc. | 52,587 | 5,520 | |
5,611,221 | |||
Materials (3.8%) | |||
Rio Tinto plc ADR | 9,554,832 | 609,025 | |
Barrick Gold Corp. (XTSE) | 22,436,214 | 373,338 | |
PPG Industries Inc. | 2,544,603 | 368,713 | |
Celanese Corp. | 2,108,847 | 362,426 | |
Reliance Inc. | 449,682 | 150,275 | |
Steel Dynamics Inc. | 921,573 | 136,605 | |
LyondellBasell Industries NV Class A | 752,689 | 76,985 | |
Arch Resources Inc. | 243,135 | 39,094 | |
Berry Global Group Inc. | 535,281 | 32,374 |
Shares | Market Value• ($000) | ||
CF Industries Holdings Inc. | 343,262 | 28,563 | |
Mosaic Co. | 392,383 | 12,737 | |
2,190,135 | |||
Real Estate (2.2%) | |||
Crown Castle Inc. | 5,390,086 | 570,433 | |
Weyerhaeuser Co. | 12,756,294 | 458,078 | |
Host Hotels & Resorts Inc. | 11,145,789 | 230,495 | |
1,259,006 | |||
Utilities (7.4%) | |||
American Electric Power Co. Inc. | 7,042,315 | 606,343 | |
PPL Corp. | 21,520,238 | 592,452 | |
Exelon Corp. | 15,577,362 | 585,241 | |
Atmos Energy Corp. | 4,449,247 | 528,882 | |
Sempra | 7,185,428 | 516,129 | |
Dominion Energy Inc. | 7,948,306 | 390,977 | |
Vistra Corp. | 2,434,912 | 169,592 | |
Xcel Energy Inc. | 2,503,588 | 134,568 | |
WEC Energy Group Inc. | 1,616,751 | 132,768 | |
DTE Energy Co. | 1,047,854 | 117,506 | |
Evergy Inc. | 2,170,485 | 115,860 | |
National Fuel Gas Co. | 1,949,838 | 104,745 | |
UGI Corp. | 4,204,594 | 103,181 | |
Ameren Corp. | 1,251,021 | 92,526 | |
NextEra Energy Inc. | 1,087,163 | 69,481 | |
4,260,251 | |||
Total Common Stocks (Cost $42,183,865) | 56,000,705 | ||
Temporary Cash Investments (2.0%) | |||
Money Market Fund (1.0%) | |||
2,3 | Vanguard Market Liquidity Fund, 5.407% | 5,524,128 | 552,302 |
Face Amount ($000) | |||
Repurchase Agreements (1.0%) | |||
Goldman Sachs & Co. 5.320%, 4/1/24 (Dated 3/28/24, Repurchase Value $166,799,000, collateralized by Ginnie Mae 2.500%–7.000%, 6/15/31–11/15/63, and U.S. Treasury Note/Bond 3.625%, 2/15/53, with a value of $170,034,000) | 166,700 | 166,700 |
Face Amount ($000) | Market Value• ($000) | ||
NatWest Markets plc 5.320%, 4/1/24 (Dated 3/28/24, Repurchase Value $179,006,000, collateralized by U.S. Treasury Note/Bond 0.500%–3.750%, 2/15/26–12/31/30, with a value of $182,478,000) | 178,900 | 178,900 | |
Nomura International plc 5.320%, 4/1/24 (Dated 3/28/24, Repurchase Value $229,736,000, collateralized by U.S. Treasury Inflation Indexed Note/Bond 0.125%–0.625%, 1/15/31–7/15/32, and U.S. Treasury Note/Bond 0.375%–6.000%, 8/15/24–8/15/53, with a value of $234,192,000) | 229,600 | 229,600 | |
575,200 | |||
Total Temporary Cash Investments (Cost $1,127,466) | 1,127,502 | ||
Total Investments (99.7%) (Cost $43,311,331) | 57,128,207 | ||
Other Assets and Liabilities—Net (0.3%) | 189,993 | ||
Net Assets (100%) | 57,318,200 | ||
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 $6,367,000. |
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 $6,318,000 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 2024 | 2,269 | 602,249 | 12,901 |
($000s, except shares, footnotes, and per-share amounts) | Amount |
Assets | |
Investments in Securities, at Value1 | |
Unaffiliated Issuers (Cost $42,759,065) | 56,575,905 |
Affiliated Issuers (Cost $552,266) | 552,302 |
Total Investments in Securities | 57,128,207 |
Investment in Vanguard | 1,660 |
Cash | 26,997 |
Cash Collateral Pledged—Futures Contracts | 26,779 |
Foreign Currency, at Value (Cost $15) | 15 |
Receivables for Investment Securities Sold | 303,671 |
Receivables for Accrued Income | 122,500 |
Receivables for Capital Shares Issued | 19,891 |
Variation Margin Receivable—Futures Contracts | 579 |
Total Assets | 57,630,299 |
Liabilities | |
Payables for Investment Securities Purchased | 254,495 |
Collateral for Securities on Loan | 6,318 |
Payables to Investment Advisor | 10,203 |
Payables for Capital Shares Redeemed | 38,406 |
Payables to Vanguard | 2,677 |
Total Liabilities | 312,099 |
Net Assets | 57,318,200 |
1 Includes $6,367,000 of securities on loan. | |
At March 31, 2024, net assets consisted of: | |
Paid-in Capital | 41,772,022 |
Total Distributable Earnings (Loss) | 15,546,178 |
Net Assets | 57,318,200 |
Investor Shares—Net Assets | |
Applicable to 124,314,784 outstanding $.001 par value shares of beneficial interest (unlimited authorization) | 5,358,169 |
Net Asset Value Per Share—Investor Shares | $43.10 |
Admiral Shares—Net Assets | |
Applicable to 575,288,347 outstanding $.001 par value shares of beneficial interest (unlimited authorization) | 51,960,031 |
Net Asset Value Per Share—Admiral Shares | $90.32 |
Six Months Ended March 31, 2024 | |
($000) | |
Investment Income | |
Income | |
Dividends1 | 850,351 |
Interest2 | 29,231 |
Securities Lending—Net | 499 |
Total Income | 880,081 |
Expenses | |
Investment Advisory Fees—Note B | |
Basic Fee | 23,132 |
Performance Adjustment | 274 |
The Vanguard Group—Note C | |
Management and Administrative—Investor Shares | 4,261 |
Management and Administrative—Admiral Shares | 19,524 |
Marketing and Distribution—Investor Shares | 148 |
Marketing and Distribution—Admiral Shares | 1,259 |
Custodian Fees | 166 |
Shareholders’ Reports—Investor Shares | 58 |
Shareholders’ Reports—Admiral Shares | 355 |
Trustees’ Fees and Expenses | 20 |
Other Expenses | 8 |
Total Expenses | 49,205 |
Expenses Paid Indirectly | (55) |
Net Expenses | 49,150 |
Net Investment Income | 830,931 |
Realized Net Gain (Loss) | |
Investment Securities Sold2 | 1,947,279 |
Futures Contracts | 56,886 |
Foreign Currencies | 408 |
Realized Net Gain (Loss) | 2,004,573 |
Change in Unrealized Appreciation (Depreciation) | |
Investment Securities2 | 5,825,665 |
Futures Contracts | 37,451 |
Foreign Currencies | (21) |
Change in Unrealized Appreciation (Depreciation) | 5,863,095 |
Net Increase (Decrease) in Net Assets Resulting from Operations | 8,698,599 |
1 | Dividends are net of foreign withholding taxes of $9,724,000. |
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 $14,320,000, ($13,000), $4,000, and ($83,000), respectively. Purchases and sales are for temporary cash investment purposes. |
Six Months Ended March 31, 2024 | Year Ended September 30, 2023 | ||
($000) | ($000) | ||
Increase (Decrease) in Net Assets | |||
Operations | |||
Net Investment Income | 830,931 | 1,577,432 | |
Realized Net Gain (Loss) | 2,004,573 | 2,596,798 | |
Change in Unrealized Appreciation (Depreciation) | 5,863,095 | 1,899,892 | |
Net Increase (Decrease) in Net Assets Resulting from Operations | 8,698,599 | 6,074,122 | |
Distributions | |||
Investor Shares | (319,837) | (441,135) | |
Admiral Shares | (3,070,212) | (4,056,028) | |
Total Distributions | (3,390,049) | (4,497,163) | |
Capital Share Transactions | |||
Investor Shares | (82,265) | (43,886) | |
Admiral Shares | 649,633 | 2,048,004 | |
Net Increase (Decrease) from Capital Share Transactions | 567,368 | 2,004,118 | |
Total Increase (Decrease) | 5,875,918 | 3,581,077 | |
Net Assets | |||
Beginning of Period | 51,442,282 | 47,861,205 | |
End of Period | 57,318,200 | 51,442,282 |
Investor Shares | ||||||
For a Share Outstanding Throughout Each Period | Six Months Ended March 31, 2024 | Year Ended September 30, | ||||
2023 | 2022 | 2021 | 2020 | 2019 | ||
Net Asset Value, Beginning of Period | $39.11 | $37.83 | $42.95 | $33.75 | $36.51 | $37.98 |
Investment Operations | ||||||
Net Investment Income1 | .611 | 1.157 | 1.159 | 1.041 | 1.000 | 1.002 |
Net Realized and Unrealized Gain (Loss) on Investments | 5.988 | 3.597 | (2.848) | 9.232 | (2.067) | .972 |
Total from Investment Operations | 6.599 | 4.754 | (1.689) | 10.273 | (1.067) | 1.974 |
Distributions | ||||||
Dividends from Net Investment Income | (.623) | (1.149) | (1.134) | (1.012) | (1.034) | (.997) |
Distributions from Realized Capital Gains | (1.986) | (2.325) | (2.297) | (.061) | (.659) | (2.447) |
Total Distributions | (2.609) | (3.474) | (3.431) | (1.073) | (1.693) | (3.444) |
Net Asset Value, End of Period | $43.10 | $39.11 | $37.83 | $42.95 | $33.75 | $36.51 |
Total Return2 | 17.45% | 12.54% | -4.67% | 30.66% | -2.87% | 6.43% |
Ratios/Supplemental Data | ||||||
Net Assets, End of Period (Millions) | $5,358 | $4,943 | $4,823 | $5,285 | $4,482 | $5,478 |
Ratio of Total Expenses to Average Net Assets3 | 0.27%4 | 0.27%4 | 0.28%4 | 0.28% | 0.28% | 0.27% |
Ratio of Net Investment Income to Average Net Assets | 3.00% | 2.86% | 2.69% | 2.56% | 2.89% | 2.84% |
Portfolio Turnover Rate | 22% | 48% | 40% | 29% | 35% | 32% |
The expense ratio and net investment income ratio for the current period have been annualized. |
1 | Calculated based on average shares outstanding. |
2 | Total returns do not include account service fees that may have applied in the periods shown. Fund prospectuses provide information about any applicable account service fees. |
3 | Includes performance-based investment advisory fee increases (decreases) of 0.00%, 0.01%, 0.01%, 0.01%, 0.01%, and 0.01%. |
4 | The ratio of expenses to average net assets for the period net of reduction from broker commission abatement arrangements was 0.27%, 0.27% and 0.28% respectively. |
Admiral Shares | ||||||
For a Share Outstanding Throughout Each Period | Six Months Ended March 31, 2024 | Year Ended September 30, | ||||
2023 | 2022 | 2021 | 2020 | 2019 | ||
Net Asset Value, Beginning of Period | $81.96 | $79.28 | $90.01 | $70.73 | $76.52 | $79.61 |
Investment Operations | ||||||
Net Investment Income1 | 1.320 | 2.503 | 2.516 | 2.262 | 2.159 | 2.167 |
Net Realized and Unrealized Gain (Loss) on Investments | 12.546 | 7.534 | (5.973) | 19.342 | (4.331) | 2.028 |
Total from Investment Operations | 13.866 | 10.037 | (3.457) | 21.604 | (2.172) | 4.195 |
Distributions | ||||||
Dividends from Net Investment Income | (1.344) | (2.484) | (2.460) | (2.196) | (2.236) | (2.156) |
Distributions from Realized Capital Gains | (4.162) | (4.873) | (4.813) | (.128) | (1.382) | (5.129) |
Total Distributions | (5.506) | (7.357) | (7.273) | (2.324) | (3.618) | (7.285) |
Net Asset Value, End of Period | $90.32 | $81.96 | $79.28 | $90.01 | $70.73 | $76.52 |
Total Return2 | 17.50% | 12.64% | -4.58% | 30.77% | -2.77% | 6.51% |
Ratios/Supplemental Data | ||||||
Net Assets, End of Period (Millions) | $51,960 | $46,499 | $43,039 | $43,422 | $30,816 | $30,972 |
Ratio of Total Expenses to Average Net Assets3 | 0.18%4 | 0.18%4 | 0.19%4 | 0.19% | 0.19% | 0.18% |
Ratio of Net Investment Income to Average Net Assets | 3.09% | 2.95% | 2.78% | 2.64% | 2.98% | 2.93% |
Portfolio Turnover Rate | 22% | 48% | 40% | 29% | 35% | 32% |
The expense ratio and net investment income ratio for the current period have been annualized. |
1 | Calculated based on average shares outstanding. |
2 | Total returns do not include account service fees that may have applied in the periods shown. Fund prospectuses provide information about any applicable account service fees. |
3 | Includes performance-based investment advisory fee increases (decreases) of 0.00%, 0.01%, 0.01%, 0.01%, 0.01%, and 0.01%. |
4 | The ratio of expenses to average net assets for the period net of reduction from broker commission abatement arrangements was 0.18%, 0.18% and 0.19%, respectively. |
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, 2024, these arrangements reduced the fund’s expenses by $55,000 (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 | 54,739,156 | 1,261,549 | — | 56,000,705 |
Temporary Cash Investments | 552,302 | 575,200 | — | 1,127,502 |
Total | 55,291,458 | 1,836,749 | — | 57,128,207 |
Derivative Financial Instruments | ||||
Assets | ||||
Futures Contracts1 | 12,901 | — | — | 12,901 |
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, 2024, 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 | 43,463,998 |
Gross Unrealized Appreciation | 14,560,494 |
Gross Unrealized Depreciation | (883,384) |
Net Unrealized Appreciation (Depreciation) | 13,677,110 |
G. | During the six months ended March 31, 2024, the fund purchased $11,218,906,000 of investment securities and sold $13,315,295,000 of investment securities, other than temporary cash investments. |
H. | Capital share transactions for each class of shares were: |
Six Months Ended March 31, 2024 | Year Ended September 30, 2023 | ||||
Amount ($000) | Shares (000) | Amount ($000) | Shares (000) | ||
Investor Shares | |||||
Issued | 241,285 | 6,009 | 585,386 | 14,340 | |
Issued in Lieu of Cash Distributions | 297,893 | 7,474 | 411,265 | 10,313 | |
Redeemed | (621,443) | (15,543) | (1,040,537) | (25,752) | |
Net Increase (Decrease)—Investor Shares | (82,265) | (2,060) | (43,886) | (1,099) | |
Admiral Shares | |||||
Issued | 2,723,350 | 32,359 | 7,447,318 | 87,620 | |
Issued in Lieu of Cash Distributions | 2,780,355 | 33,284 | 3,644,882 | 43,619 | |
Redeemed | (4,854,072) | (57,669) | (9,044,196) | (106,801) | |
Net Increase (Decrease)—Admiral Shares | 649,633 | 7,974 | 2,048,004 | 24,438 |
I. | Significant market disruptions, such as those caused by pandemics, natural or environmental disasters, war, acts of terrorism, or other events, can adversely affect local and global markets and normal market operations. Any such disruptions could have an adverse impact on the value of the fund’s investments and fund performance. |
J. | Management has determined that no events or transactions occurred subsequent to March 31, 2024, that would require recognition or disclosure in these financial statements. |
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Vanguard Marketing Corporation, Distributor.
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About Your Fund’s Expenses | 1 |
Financial Statements | 4 |
Trustees Approve Advisory 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, 2024 | |||
PRIMECAP Core Fund | Beginning Account Value 9/30/2023 | Ending Account Value 3/31/2024 | Expenses Paid During Period |
Based on Actual Fund Return | $1,000.00 | $1,210.90 | $2.54 |
Based on Hypothetical 5% Yearly Return | 1,000.00 | 1,022.70 | 2.33 |
Communication Services | 5.6% |
Consumer Discretionary | 8.4 |
Consumer Staples | 1.1 |
Energy | 3.4 |
Financials | 9.8 |
Health Care | 29.2 |
Industrials | 15.6 |
Information Technology | 25.2 |
Materials | 1.6 |
Real Estate | 0.1 |
Shares | Market Value• ($000) | ||
Common Stocks (96.1%) | |||
Communication Services (5.4%) | |||
* | Alphabet Inc. Class A | 1,713,800 | 258,664 |
* | Alphabet Inc. Class C | 1,263,540 | 192,387 |
Walt Disney Co. | 698,275 | 85,441 | |
Meta Platforms Inc. Class A | 104,600 | 50,792 | |
T-Mobile US Inc. | 273,700 | 44,673 | |
Nintendo Co. Ltd. | 507,500 | 27,691 | |
Electronic Arts Inc. | 169,400 | 22,474 | |
* | Charter Communications Inc. Class A | 40,850 | 11,872 |
* | Netflix Inc. | 18,000 | 10,932 |
Comcast Corp. Class A | 156,200 | 6,771 | |
* | Altice USA Inc. Class A | 160,000 | 418 |
712,115 | |||
Consumer Discretionary (8.0%) | |||
TJX Cos. Inc. | 1,533,100 | 155,487 | |
Ross Stores Inc. | 1,044,280 | 153,259 | |
Sony Group Corp. ADR | 1,734,500 | 148,716 | |
* | Mattel Inc. | 4,858,100 | 96,239 |
* | CarMax Inc. | 1,035,300 | 90,185 |
Whirlpool Corp. | 716,774 | 85,748 | |
Alibaba Group Holding Ltd. ADR | 1,073,000 | 77,642 | |
* | Royal Caribbean Cruises Ltd. | 551,200 | 76,622 |
* | Tesla Inc. | 190,400 | 33,470 |
Bath & Body Works Inc. | 526,300 | 26,326 | |
Marriott International Inc. Class A | 97,000 | 24,474 | |
Newell Brands Inc. | 2,725,000 | 21,882 | |
* | Capri Holdings Ltd. | 406,763 | 18,426 |
* | Burlington Stores Inc. | 46,000 | 10,681 |
McDonald's Corp. | 31,800 | 8,966 | |
Lowe's Cos. Inc. | 25,000 | 6,368 | |
* | Victoria's Secret & Co. | 311,700 | 6,041 |
* | Amazon.com Inc. | 33,000 | 5,953 |
* | Carnival Corp. | 348,400 | 5,693 |
* | MGM Resorts International | 94,900 | 4,480 |
* | Leslie's Inc. | 511,100 | 3,322 |
* | Norwegian Cruise Line Holdings Ltd. | 68,440 | 1,432 |
Restaurant Brands International Inc. | 10,700 | 850 | |
1,062,262 |
Shares | Market Value• ($000) | ||
Consumer Staples (1.1%) | |||
* | Dollar Tree Inc. | 472,400 | 62,900 |
* | BJ's Wholesale Club Holdings Inc. | 426,000 | 32,227 |
Sysco Corp. | 382,700 | 31,068 | |
Tyson Foods Inc. Class A | 180,000 | 10,571 | |
Altria Group Inc. | 162,000 | 7,066 | |
143,832 | |||
Energy (3.3%) | |||
Pioneer Natural Resources Co. | 559,123 | 146,770 | |
ConocoPhillips | 416,600 | 53,025 | |
Cameco Corp. | 1,115,700 | 48,332 | |
Hess Corp. | 261,800 | 39,961 | |
EOG Resources Inc. | 311,221 | 39,786 | |
Coterra Energy Inc. | 967,050 | 26,961 | |
TechnipFMC plc | 733,600 | 18,421 | |
Valero Energy Corp. | 103,200 | 17,615 | |
* | Transocean Ltd. (XNYS) | 2,537,200 | 15,934 |
* | Southwestern Energy Co. | 1,910,000 | 14,478 |
Schlumberger NV | 235,400 | 12,902 | |
434,185 | |||
Financials (9.4%) | |||
Raymond James Financial Inc. | 1,729,455 | 222,097 | |
Wells Fargo & Co. | 3,628,400 | 210,302 | |
JPMorgan Chase & Co. | 875,500 | 175,363 | |
Visa Inc. Class A | 374,590 | 104,541 | |
Evercore Inc. Class A | 525,700 | 101,245 | |
Northern Trust Corp. | 1,115,450 | 99,186 | |
Goldman Sachs Group Inc. | 202,400 | 84,540 | |
Discover Financial Services | 274,800 | 36,023 | |
CME Group Inc. | 154,050 | 33,165 | |
KeyCorp. | 2,088,500 | 33,019 | |
Bank of New York Mellon Corp. | 546,800 | 31,507 | |
Progressive Corp. | 130,500 | 26,990 | |
Mastercard Inc. Class A | 55,400 | 26,679 | |
Fidelity National Information Services Inc. | 342,000 | 25,370 | |
* | PayPal Holdings Inc. | 220,800 | 14,791 |
* | WEX Inc. | 53,480 | 12,703 |
Charles Schwab Corp. | 90,400 | 6,540 |
Shares | Market Value• ($000) | ||
Bank of America Corp. | 62,959 | 2,387 | |
1,246,448 | |||
Health Care (28.0%) | |||
Eli Lilly & Co. | 1,791,672 | 1,393,849 | |
Amgen Inc. | 1,350,980 | 384,111 | |
AstraZeneca plc ADR | 5,586,180 | 378,464 | |
* | Biogen Inc. | 1,298,217 | 279,934 |
* | Boston Scientific Corp. | 3,148,380 | 215,633 |
Thermo Fisher Scientific Inc. | 274,470 | 159,525 | |
Bristol-Myers Squibb Co. | 2,353,910 | 127,652 | |
* | Elanco Animal Health Inc. (XNYS) | 7,840,188 | 127,638 |
1 | Novartis AG ADR | 1,151,600 | 111,394 |
Zimmer Biomet Holdings Inc. | 691,050 | 91,205 | |
GSK plc ADR | 1,822,550 | 78,133 | |
Roche Holding AG | 213,112 | 54,411 | |
* | BioMarin Pharmaceutical Inc. | 599,860 | 52,392 |
CVS Health Corp. | 580,850 | 46,329 | |
* | LivaNova plc | 809,900 | 45,306 |
Agilent Technologies Inc. | 232,430 | 33,821 | |
Stryker Corp. | 68,700 | 24,586 | |
* | IQVIA Holdings Inc. | 54,156 | 13,695 |
Danaher Corp. | 47,140 | 11,772 | |
* | Illumina Inc. | 85,370 | 11,723 |
*,2 | Siemens Healthineers AG | 148,420 | 9,077 |
Abbott Laboratories | 72,000 | 8,183 | |
UnitedHealth Group Inc. | 14,289 | 7,069 | |
Alcon Inc. | 84,460 | 7,035 | |
* | Waters Corp. | 20,331 | 6,999 |
Sanofi SA ADR | 134,000 | 6,512 | |
Humana Inc. | 15,844 | 5,493 | |
Medtronic plc | 54,400 | 4,741 | |
* | Sandoz Group AG | 60,680 | 1,832 |
* | Zimvie Inc. | 5,830 | 96 |
3,698,610 | |||
Industrials (15.0%) | |||
Siemens AG (Registered) | 1,471,334 | 280,935 | |
FedEx Corp. | 930,800 | 269,690 | |
AECOM | 2,212,050 | 216,958 | |
Southwest Airlines Co. | 5,842,969 | 170,556 | |
Jacobs Solutions Inc. | 968,345 | 148,864 | |
Airbus SE | 561,152 | 103,380 | |
United Parcel Service Inc. Class B (XNYS) | 552,000 | 82,044 | |
* | NEXTracker Inc. Class A | 1,455,021 | 81,874 |
Delta Air Lines Inc. | 1,649,510 | 78,962 | |
TransDigm Group Inc. | 60,100 | 74,019 | |
* | United Airlines Holdings Inc. | 1,412,340 | 67,623 |
Textron Inc. | 535,600 | 51,380 | |
Caterpillar Inc. | 115,000 | 42,139 | |
* | American Airlines Group Inc. | 2,650,900 | 40,691 |
* | XPO Inc. | 330,800 | 40,368 |
General Dynamics Corp. | 136,400 | 38,532 | |
Carrier Global Corp. | 426,000 | 24,763 | |
Otis Worldwide Corp. | 220,300 | 21,869 | |
Union Pacific Corp. | 84,400 | 20,756 | |
Moog Inc. Class A | 119,900 | 19,142 | |
* | Saia Inc. | 28,500 | 16,673 |
JB Hunt Transport Services Inc. | 65,800 | 13,111 | |
Norfolk Southern Corp. | 42,500 | 10,832 |
Shares | Market Value• ($000) | ||
* | RXO Inc. | 443,600 | 9,702 |
* | Boeing Co. | 48,000 | 9,264 |
* | GXO Logistics Inc. | 154,200 | 8,290 |
Knight-Swift Transportation Holdings Inc. | 137,700 | 7,576 | |
Rockwell Automation Inc. | 25,650 | 7,473 | |
L3Harris Technologies Inc. | 34,000 | 7,245 | |
CSX Corp. | 171,900 | 6,372 | |
Deere & Co. | 12,880 | 5,290 | |
AMETEK Inc. | 10,000 | 1,829 | |
Veralto Corp. | 15,713 | 1,393 | |
1,979,595 | |||
Information Technology (24.2%) | |||
Microsoft Corp. | 989,980 | 416,504 | |
KLA Corp. | 554,400 | 387,287 | |
Intel Corp. | 7,900,400 | 348,961 | |
* | Flex Ltd. | 8,774,230 | 251,031 |
Texas Instruments Inc. | 1,355,750 | 236,185 | |
Micron Technology Inc. | 1,807,100 | 213,039 | |
Applied Materials Inc. | 960,100 | 198,001 | |
Oracle Corp. | 1,297,000 | 162,916 | |
ASML Holding NV GDR (Registered) | 120,000 | 116,456 | |
Intuit Inc. | 158,600 | 103,090 | |
Analog Devices Inc. | 420,600 | 83,191 | |
* | Adobe Inc. | 159,100 | 80,282 |
NetApp Inc. | 747,500 | 78,465 | |
HP Inc. | 2,592,053 | 78,332 | |
QUALCOMM Inc. | 425,280 | 72,000 | |
Hewlett Packard Enterprise Co. | 3,152,020 | 55,885 | |
Apple Inc. | 275,000 | 47,157 | |
Jabil Inc. | 340,000 | 45,543 | |
Cisco Systems Inc. | 870,300 | 43,437 | |
NVIDIA Corp. | 34,100 | 30,811 | |
Seagate Technology Holdings plc | 318,600 | 29,646 | |
Corning Inc. | 888,600 | 29,288 | |
Teradyne Inc. | 218,840 | 24,692 | |
* | Keysight Technologies Inc. | 149,300 | 23,348 |
Telefonaktiebolaget LM Ericsson ADR | 3,894,400 | 21,458 | |
* | Western Digital Corp. | 146,600 | 10,004 |
* | Ciena Corp. | 80,000 | 3,956 |
* | BlackBerry Ltd. | 1,276,500 | 3,523 |
3,194,488 | |||
Materials (1.6%) | |||
Albemarle Corp. | 433,265 | 57,078 | |
Glencore plc | 9,464,223 | 51,935 | |
DuPont de Nemours Inc. | 299,500 | 22,963 | |
Freeport-McMoRan Inc. | 422,200 | 19,852 | |
Tronox Holdings plc | 959,000 | 16,639 | |
Corteva Inc. | 266,293 | 15,357 | |
Dow Inc. | 224,500 | 13,005 | |
Linde plc | 13,500 | 6,268 | |
Greif Inc. Class B | 24,000 | 1,669 | |
204,766 | |||
Real Estate (0.1%) | |||
American Homes 4 Rent Class A | 220,000 | 8,092 | |
Total Common Stocks (Cost $4,929,910) | 12,684,393 |
Shares | Market Value• ($000) | ||
Temporary Cash Investments (3.6%) | |||
Money Market Fund (3.6%) | |||
3,4 | Vanguard Market Liquidity Fund, 5.407% (Cost $472,632) | 4,728,028 | 472,708 |
Total Investments (99.7%) (Cost $5,402,542) | 13,157,101 | ||
Other Assets and Liabilities—Net (0.3%) | 35,211 | ||
Net Assets (100%) | 13,192,312 | ||
Cost is in $000. |
• | See Note A in Notes to Financial Statements. |
* | Non-income-producing security. |
1 | Includes partial security positions on loan to broker-dealers. The total value of securities on loan is $4,315,000. |
2 | 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, 2024, the aggregate value was $9,077,000, representing 0.1% of net assets. |
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 $4,371,000 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 $4,929,910) | 12,684,393 |
Affiliated Issuers (Cost $472,632) | 472,708 |
Total Investments in Securities | 13,157,101 |
Investment in Vanguard | 386 |
Receivables for Investment Securities Sold | 32,417 |
Receivables for Accrued Income | 17,737 |
Receivables for Capital Shares Issued | 6,507 |
Total Assets | 13,214,148 |
Liabilities | |
Due to Custodian | 29 |
Payables for Investment Securities Purchased | 4,724 |
Collateral for Securities on Loan | 4,371 |
Payables to Investment Advisor | 9,554 |
Payables for Capital Shares Redeemed | 2,306 |
Payables to Vanguard | 852 |
Total Liabilities | 21,836 |
Net Assets | 13,192,312 |
1 Includes $4,315,000 of securities on loan. | |
At March 31, 2024, net assets consisted of: | |
Paid-in Capital | 5,141,407 |
Total Distributable Earnings (Loss) | 8,050,905 |
Net Assets | 13,192,312 |
Net Assets | |
Applicable to 378,554,512 outstanding $.001 par value shares of beneficial interest (unlimited authorization) | 13,192,312 |
Net Asset Value Per Share | $34.85 |
Six Months Ended March 31, 2024 | |
($000) | |
Investment Income | |
Income | |
Dividends1 | 92,683 |
Interest2 | 13,088 |
Securities Lending—Net | 4 |
Total Income | 105,775 |
Expenses | |
Investment Advisory Fees—Note B | 18,296 |
The Vanguard Group—Note C | |
Management and Administrative | 8,522 |
Marketing and Distribution | 271 |
Custodian Fees | 149 |
Shareholders’ Reports | 45 |
Trustees’ Fees and Expenses | 4 |
Other Expenses | 8 |
Total Expenses | 27,295 |
Expenses Paid Indirectly | (2) |
Net Expenses | 27,293 |
Net Investment Income | 78,482 |
Realized Net Gain (Loss) | |
Investment Securities Sold2 | 315,991 |
Foreign Currencies | (65) |
Realized Net Gain (Loss) | 315,926 |
Change in Unrealized Appreciation (Depreciation) | |
Investment Securities2 | 1,933,808 |
Foreign Currencies | 15 |
Change in Unrealized Appreciation (Depreciation) | 1,933,823 |
Net Increase (Decrease) in Net Assets Resulting from Operations | 2,328,231 |
1 | Dividends are net of foreign withholding taxes of $2,280,000. |
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 $13,088,000, $10,000, $2,000, and ($54,000), respectively. Purchases and sales are for temporary cash investment purposes. |
Six Months Ended March 31, 2024 | Year Ended September 30, 2023 | ||
($000) | ($000) | ||
Increase (Decrease) in Net Assets | |||
Operations | |||
Net Investment Income | 78,482 | 147,238 | |
Realized Net Gain (Loss) | 315,926 | 522,729 | |
Change in Unrealized Appreciation (Depreciation) | 1,933,823 | 1,645,422 | |
Net Increase (Decrease) in Net Assets Resulting from Operations | 2,328,231 | 2,315,389 | |
Distributions | |||
Total Distributions | (663,536) | (822,420) | |
Capital Share Transactions | |||
Issued | 279,251 | 459,021 | |
Issued in Lieu of Cash Distributions | 527,309 | 653,229 | |
Redeemed | (500,811) | (1,022,158) | |
Net Increase (Decrease) from Capital Share Transactions | 305,749 | 90,092 | |
Total Increase (Decrease) | 1,970,444 | 1,583,061 | |
Net Assets | |||
Beginning of Period | 11,221,868 | 9,638,807 | |
End of Period | 13,192,312 | 11,221,868 |
For a Share Outstanding Throughout Each Period | Six Months Ended March 31, 2024 | Year Ended September 30, | ||||
2023 | 2022 | 2021 | 2020 | 2019 | ||
Net Asset Value, Beginning of Period | $30.44 | $26.49 | $33.78 | $27.08 | $27.08 | $29.92 |
Investment Operations | ||||||
Net Investment Income1 | .209 | .394 | .339 | .243 | .398 | .391 |
Net Realized and Unrealized Gain (Loss) on Investments | 6.018 | 5.839 | (5.312) | 8.746 | 1.553 | (1.020) |
Total from Investment Operations | 6.227 | 6.233 | (4.973) | 8.989 | 1.951 | (.629) |
Distributions | ||||||
Dividends from Net Investment Income | (.398) | (.365) | (.236) | (.357) | (.388) | (.322) |
Distributions from Realized Capital Gains | (1.419) | (1.918) | (2.081) | (1.932) | (1.563) | (1.889) |
Total Distributions | (1.817) | (2.283) | (2.317) | (2.289) | (1.951) | (2.211) |
Net Asset Value, End of Period | $34.85 | $30.44 | $26.49 | $33.78 | $27.08 | $27.08 |
Total Return2 | 21.09% | 24.60% | -15.92% | 34.71% | 7.02% | -1.06% |
Ratios/Supplemental Data | ||||||
Net Assets, End of Period (Millions) | $13,192 | $11,222 | $9,639 | $12,056 | $9,681 | $10,655 |
Ratio of Total Expenses to Average Net Assets | 0.46%3 | 0.46%3 | 0.46% | 0.46% | 0.46% | 0.46% |
Ratio of Net Investment Income to Average Net Assets | 1.28% | 1.34% | 1.08% | 0.76% | 1.52% | 1.48% |
Portfolio Turnover Rate | 3% | 6% | 6% | 8% | 8% | 7% |
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, 2024, the investment advisory fee represented an effective annual basic rate of 0.30% 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. | 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, 2024, custodian fee offset arrangements reduced the fund’s expenses by $2,000 (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 | 12,155,132 | 529,261 | — | 12,684,393 |
Temporary Cash Investments | 472,708 | — | — | 472,708 |
Total | 12,627,840 | 529,261 | — | 13,157,101 |
F. | As of March 31, 2024, gross unrealized appreciation and depreciation for investments based on cost for U.S. federal income tax purposes were as follows: |
Amount ($000) | |
Tax Cost | 5,404,747 |
Gross Unrealized Appreciation | 8,030,190 |
Gross Unrealized Depreciation | (277,836) |
Net Unrealized Appreciation (Depreciation) | 7,752,354 |
G. | During the six months ended March 31, 2024, the fund purchased $331,690,000 of investment securities and sold $622,448,000 of investment securities, other than temporary cash investments. |
H. | Capital shares issued and redeemed were: |
Six Months Ended March 31, 2024 | Year Ended September 30, 2023 | ||
Shares (000) | Shares (000) | ||
Issued | 8,767 | 15,850 | |
Issued in Lieu of Cash Distributions | 16,740 | 24,113 | |
Redeemed | (15,647) | (35,183) | |
Net Increase (Decrease) in Shares Outstanding | 9,860 | 4,780 |
I. | Significant market disruptions, such as those caused by pandemics, natural or environmental disasters, war, acts of terrorism, or other events, can adversely affect local and global markets and normal market operations. Any such disruptions could have an adverse impact on the value of the fund’s investments and fund performance. |
J. | Management has determined that no events or transactions occurred subsequent to March 31, 2024, that would require recognition or disclosure in these financial statements. |
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Vanguard Marketing Corporation, Distributor.
Item 2: Code of Ethics.
Not applicable.
Item 3: Audit Committee Financial Expert.
Not applicable.
Item 4: Principal Accountant Fees and Services.
Not applicable.
Item 5: Audit Committee of Listed Registrants.
Not applicable.
Item 6: Investments.
Not applicable. The complete schedule of investments is included as part of the report to shareholders filed under Item 1 of this Form.
Item 7: Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.
Not applicable.
Item 8: Portfolio Managers of Closed-End Management Investment Companies.
Not applicable.
Item 9: Purchase of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers.
Not applicable.
Item 10: Submission of Matters to a Vote of Security Holders.
Not applicable.
Item 11: Controls and Procedures.
(a) Disclosure Controls and Procedures. The Principal Executive and Financial Officers concluded that the Registrant’s Disclosure Controls and Procedures are effective based on their evaluation of the Disclosure Controls and Procedures as of a date within 90 days of the filing date of this report.
(b) Internal Control Over Financial Reporting. In February 2024, a third-party service provider began performing security pricing services for the Registrant. There were no other changes in the Registrant’s internal control over financial reporting that occurred during the period covered by this report that has materially affected, or is reasonably likely to materially affect, the Registrant’s internal control over financial reporting.
Item 12: Disclosure of Securities Lending Activities for Closed-End Management Investment Companies.
Not applicable.
Item 13: Exhibits.
(a)(1) | Code of Ethics filed herewith. |
(a)(2) | Certifications filed herewith. |
(a)(2) | 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 20, 2024
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 20, 2024
VANGUARD FENWAY FUNDS | ||
BY: | /s/ CHRISTINE BUCHANAN* | |
CHRISTINE BUCHANAN | ||
CHIEF FINANCIAL OFFICER |
Date: May 20, 2024
* By: | /s/ Anne E. Robinson |
Anne E. Robinson, pursuant to a Power of Attorney filed on January 11, 2024 (see File Number 33-34494); a Power of Attorney filed on July 21, 2023 (see File Number 33-53683), Incorporated by Reference; and a Power of Attorney filed on March 29, 2023 (see File Number 2-11444), Incorporated by Reference.