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: 811-07175
Name of Registrant: Vanguard Tax-Managed Funds
Address of Registrant:
P.O. Box 2600
Valley Forge, PA 19482
Name and address of agent for service:
Heidi Stam, Esquire
P.O. Box 876
Valley Forge, PA 19482
Registrant’s telephone number, including area code: (610) 669-1000
Date of fiscal year end: December 31
Date of reporting period: January 1, 2012 – December 31, 2012
Item 1: Reports to Shareholders
Annual Report | December 31, 2012 |
Vanguard Tax-Managed Funds® |
Vanguard Tax-Managed Balanced Fund |
Vanguard Tax-Managed Growth and Income Fund |
Vanguard Tax-Managed Capital Appreciation Fund |
Vanguard Tax-Managed Small-Cap Fund |
> For the year ended December 31, 2012, Vanguard Tax-Managed Balanced Fund returned nearly 11%. Each of Vanguard’s three domestic tax-managed stock funds returned about 16%.
> The funds distributed no capital gains, meeting their tax-management objectives as they have since inception.
> For the decade ended December 31, 2012, all four tax-managed funds outperformed the average returns of their peer funds.
Contents | |
Your Fund’s Total Returns. | 1 |
Chairman’s Letter. | 2 |
Tax-Managed Balanced Fund. | 9 |
Tax-Managed Growth and Income Fund. | 54 |
Tax-Managed Capital Appreciation Fund. | 70 |
Tax-Managed Small-Cap Fund. | 88 |
Your Fund’s After-Tax Returns. | 108 |
About Your Fund’s Expenses. | 110 |
Glossary. | 112 |
Please note: The opinions expressed in this report are just that—informed opinions. They should not be considered promises or advice.
Also, please keep in mind that the information and opinions cover the period through the date on the front of this report. Of course, the risks of investing in your fund are spelled out in the prospectus.
See the Glossary for definitions of investment terms used in this report.
About the cover: Our cover photograph shows rigging on the HMSSurprise, a replica of an 18th-century Royal Navy frigate. It was featured in the 2003 movie Master and Commander: The Far Side of the World, which was based on Patrick O’Brian’s sea novels, set amid the Napoleonic Wars. Vanguard was named for another ship of that era, the HMSVanguard, which was the flagship of British Admiral Horatio Nelson at the Battle of the Nile.
Your Fund’s Total Returns | |
Fiscal Year Ended December 31, 2012 | |
Total | |
Returns | |
Vanguard Tax-Managed Balanced Fund | 10.87% |
Tax-Managed Balanced Composite Index | 10.68 |
Mixed-Asset Target Allocation Moderate Funds Average | 11.49 |
For a benchmark description, see the Glossary. | |
Mixed-Asset Target Allocation Moderate Funds Average: Derived from data provided by Lipper Inc. |
Vanguard Tax-Managed Growth and Income Fund | |
Admiral™ Shares | 15.91% |
Institutional Shares | 15.96 |
S&P 500 Index | 16.00 |
Large-Cap Core Funds Average | 14.94 |
Large-Cap Core Funds Average: Derived from data provided by Lipper Inc. |
Vanguard Tax-Managed Capital Appreciation Fund | |
Admiral Shares | 16.35% |
Institutional Shares | 16.41 |
Russell 1000 Index | 16.42 |
Multi-Cap Core Funds Average | 14.93 |
Multi-Cap Core Funds Average: Derived from data provided by LipperInc. |
Vanguard Tax-Managed Small-Cap Fund | |
Admiral Shares | 16.03% |
Institutional Shares | 16.05 |
S&P SmallCap 600 Index | 16.33 |
Small-Cap Core Funds Average | 14.70 |
Small-Cap Core Funds Average: Derived from data provided by Lipper Inc.
Institutional Shares are available to certain institutional investors who meet specific administrative, service, and account-size criteria.
1
Chairman’s Letter
Dear Shareholder,
Helped by a rebound in financial stocks, Vanguard’s domestic tax-managed funds posted solid advances for the 12 months ended December 31, 2012. The strong showings marked an improvement from the modest returns that the funds generated in the previous year.
Vanguard Tax-Managed Balanced Fund returned nearly 11%, as its stocks and tax-exempt bonds both performed well. Returns for Admiral Shares of the stock-only funds—Tax-Managed Growth and Income, Tax-Managed Capital Appreciation, and Tax-Managed Small-Cap—fell in a narrow range from 15.91% to 16.35%. Across the board, financials—one of 2011’s worst-performing sectors—produced robust results.
The funds met their tax-management objective, as they have since their inception. In the Performance at a Glance chart on page 8, you can see that the funds’ advisors, Vanguard’s Equity Investment Group and Fixed Income Group, continued to avoid distributing capital gains to shareholders. The advisors used various portfolio management strategies to accomplish this while deviating as little as possible from an indexing strategy.
You may wish to review the table later in this report that shows the funds’ after-tax returns for the past one, five, and ten years. (We review the performance of Vanguard Tax-Managed International Fund in a separate report.)
2
With help from central banks, stocks posted strong results
Stocks around the world recorded double-digit gains for the 12 months ended December 31, with international stocks faring even better than their U.S. counterparts.
European stocks shook off investors’ concerns to deliver some of the best results, rising about 19%, compared with about 16% for U.S. stocks. The rally came as European central bankers moved to address worries about the finances of governments and banks. Still, Vanguard economists expect Europe to remain a trouble spot, with occasional spikes in market volatility, as fiscal tightening persists in the face of weak economic growth.
In the United States, the Federal Reserve continued buying bonds and mortgage-backed securities to try to stimulate growth. The Fed’s actions seemed to buoy both stock and bond returns.
Attention to the nation’s considerable budget challenges intensified as 2012 drew to a close. The focus on the “fiscal cliff” led to nervousness in the markets before policymakers reached a limited tax-rate agreement on the cusp of the new year. The compromise legislation, which President Barack Obama signed into law on January 2, addressed some immediate concerns, but a credible long-term deficit-reduction strategy had yet to be crafted to resolve the nation’s fiscal imbalance and open the way for growth.
Market Barometer | |||
Average Annual Total Returns | |||
Periods Ended December 31, 2012 | |||
One | Three | Five | |
Year | Years | Years | |
Stocks | |||
Russell 1000 Index (Large-caps) | 16.42% | 11.12% | 1.92% |
Russell 2000 Index (Small-caps) | 16.35 | 12.25 | 3.56 |
Russell 3000 Index (Broad U.S. market) | 16.42 | 11.20 | 2.04 |
MSCI All Country World Index ex USA (International) | 16.83 | 3.87 | -2.89 |
Bonds | |||
Barclays U.S. Aggregate Bond Index (Broad taxable market) | 4.21% | 6.19% | 5.95% |
Barclays Municipal Bond Index (Broad tax-exempt market) | 6.78 | 6.57 | 5.91 |
Citigroup Three-Month U.S. Treasury Bill Index | 0.07 | 0.08 | 0.44 |
CPI | |||
Consumer Price Index | 1.74% | 2.06% | 1.80% |
3
Bond returns were solid, but challenges lie ahead
The broad U.S. taxable bond market returned about 4% for the 12 months. Municipal bonds returned more than 6%.
As bond prices rose, the yield of the 10-year U.S. Treasury note slipped to a record low in July, closing below 1.5%. (Bond yields and prices move in opposite directions.) By the end of the period, the yield had climbed, but it remained exceptionally low by historical standards.
Although bonds can provide critical diversification benefits to a portfolio, their prospects look much less promising than they had in recent years. As yields have tumbled, the opportunity for future bond price appreciation has greatly diminished. (You can read more about our expectations for bond and stock returns in Vanguard’s Economic and Investment Outlook, available at vanguard.com/research.)
As it has since late 2008, the Fed held its target for short-term interest rates between 0% and 0.25%, which kept a tight lid on returns from money market funds and savings accounts.
Financial stocks bounced back, and tax-exempt munis were strong
As I mentioned earlier, financial stocks were among the year’s best performers as banks, brokerages, and finance companies put more distance between their balance sheets and the financial crisis. Bank stocks seemed to get a further boost as the U.S. housing recovery gathered
Expense Ratios | |||
Your Fund Compared With Its Peer Group | |||
Admiral | Institutional | Peer Group | |
Shares | Shares | Average | |
Tax-Managed Balanced Fund | 0.12% | — | 0.94% |
Tax-Managed Growth and Income Fund | 0.12 | 0.08% | 1.19 |
Tax-Managed Capital Appreciation Fund | 0.12 | 0.08 | 1.18 |
Tax-Managed Small-Cap Fund | 0.13 | 0.09 | 1.37 |
The fund expense ratios shown are from the prospectus dated April 26, 2012, and represent estimated costs for the current fiscal year. For the fiscal year ended December 31, 2012, the funds’ expense ratios were: for the Tax-Managed Balanced Fund, 0.12%; for the Tax-Managed Growth and Income Fund, 0.12% for Admiral Shares and 0.08% for Institutional Shares; for the Tax-Managed Capital Appreciation Fund, 0.12% for Admiral Shares and 0.08% for Institutional Shares; and for the Tax-Managed Small-Cap Fund, 0.12% for Admiral Shares and 0.08% for Institutional Shares. Peer group expense ratios are derived from data provided by Lipper Inc. and capture information through year-end 2011.
Peer groups: For the Tax-Managed Balanced Fund, Mixed-Asset Target Allocation Moderate Funds; for the Tax-Managed Growth and Income Fund, Large-Cap Core Funds; for the Tax-Managed Capital Appreciation Fund, Multi-Cap Core Funds; and for the Tax-Managed Small-Cap Fund, Small-Cap Core Funds.
4
strength—a development that also benefited shares of home improvement retailers and home builders.
The rising tide of financial stocks lifted all four funds. But the Tax-Managed Growth and Income Fund, which focuses on the largest-capitalization U.S. stocks, had the biggest returns of the four in financials (nearly 29%). The shares of large banks,
which have been battered in recent years, recorded some of the sharpest rebounds in 2012.
Utilities were among the weakest performers, though the sector still notched positive returns for each of the funds. The year was challenging for utilities as economic sluggishness restrained power demand.
Total Returns | |
Ten Years Ended December 31, 2012 | |
Average | |
Annual Return | |
Tax-Managed Balanced Fund | 6.49% |
Tax-Managed Balanced Composite Index | 6.70 |
Mixed-Asset Target Allocation Moderate Funds Average | 5.97 |
For a benchmark description, see the Glossary. | |
Mixed-Asset Target Allocation Moderate Funds Average: Derived from data provided by Lipper Inc. | |
Tax-Managed Growth and Income Fund Admiral Shares | 7.07% |
S&P 500 Index | 7.10 |
Large-Cap Core Funds Average | 5.64 |
Large-Cap Core Funds Average: Derived from data provided by Lipper Inc. | |
Tax-Managed Capital Appreciation Fund Admiral Shares | 7.81% |
Russell 1000 Index | 7.52 |
Multi-Cap Core Funds Average | 6.67 |
Multi-Cap Core Funds Average: Derived from data provided by Lipper Inc. | |
Tax-Managed Small-Cap Fund Admiral Shares | 10.46% |
S&P SmallCap 600 Index | 10.45 |
Small-Cap Core Funds Average | 9.05 |
Small-Cap Core Funds Average: Derived from data provided by Lipper Inc. |
The figures shown represent past performance, which is not a guarantee of future results. (Current performance may be lower or higher than the performance data cited. For performance data current to the most recent month-end, visit our website at vanguard.com/performance.) Note, too, that both investment returns and principal value can fluctuate widely, so an investor’s shares, when sold, could be worth more or less than their original cost.
5
About half of the Tax-Managed Balanced Fund’s portfolio is in stocks; the balance is in tax-exempt municipal bonds. For the second straight year, muni bonds produced strong returns. Munis rallied as investors bid up bond prices in their search for higher-yielding investments. Still, the Tax-Managed Balanced Fund was a step behind the average return of peer funds. Many peers own corporate bonds, which fared even better than munis in 2012.
The three all-stock tax-managed funds outperformed the average returns of their peers for the year.
The tax-managed funds delivered solid long-term results
For the decade ended December 31, 2012, Vanguard’s domestic tax-managed funds posted average annual returns ranging from more than 6% for the Tax-Managed Balanced Fund to more than 10% for the Tax-Managed Small-Cap Fund. Each of the funds performed in line with its benchmark index and outperformed the average returns of its peers for the ten-year period.
Vanguard’s Equity Investment Group and Fixed Income Group deserve credit for the funds’ success, both for meeting their tax-management objectives and for closely tracking their benchmark indexes.
Gus Sauter united traditional values with pioneering investment acumen
When I was interviewing for a job at Vanguard in the mid-1980s, Jack Brennan, who would go on to become our chairman and chief executive officer and is now chairman emeritus, described Vanguard as “a company with the intellectual rigor of Wall Street but with Midwestern values.”
I’m reminded of that when I think about Gus Sauter’s 25-year career at Vanguard. Gus retired as our chief investment officer at the end of December, having set the highest of standards for both intellectual achievement and devotion to doing the right thing for clients, colleagues, and community.
Gus played a pivotal role in transforming indexing from a novelty to an investing mainstay, a change that has benefited all investors. In addition, he developed our active quantitative equity strategies, oversaw the growth of our industry-leading expertise in fixed income, and ultimately helped Vanguard to become a global investment manager responsible for $2 trillion in client assets.
As for the Midwestern values, Gus—a native of Ohio, incidentally—served our clients with a dedication to thrift, candor, and common sense that has helped make Vanguard what it is. His colleagues knew that in any situation they could count on him to keep a level-headed, long-term outlook. Just two weeks after he started at Vanguard, he helped guide us through the stock market crash of 1987. Some 20 years later, he helped us navigate the financial crisis of 2008–2009.
An important aspect of Gus’s legacy is the team of world-class investment professionals that he cultivated at Vanguard. That
6
team is now led by Tim Buckley, who oversaw our services for individual investors before becoming chief investment officer. I am confident that Tim will not only carry on Gus’s legacy, but also—as Gus himself put it—take Vanguard investment management to the next level.
As always, thank you for investing with Vanguard.
Sincerely,
F. William McNabb III
Chairman and Chief Executive Officer
January 18, 2013
A note on expense ratios |
The Expense Ratios table in each report’s Chairman’s Letter displays fund expense |
ratios from the most recent prospectus. These figures include the funds’ actual |
operating expenses. For some funds, the figures also include “acquired fund fees |
and expenses,” which result from the funds’ holdings in business development |
companies (BDCs). |
Although the Securities and Exchange Commission requires that BDC costs be |
included in a fund’s expense ratio, these fees are not incurred by the fund. They |
have no impact on a fund’s total return or on its tracking error relative to an index. |
A footnote to the Expense Ratios table reports an annualized calculation of the |
fund’s actual expenses for the period, a more relevant tally of the operating costs |
incurred by shareholders. |
7
Your Fund’s Performance at a Glance | ||||
December 31, 2011, Through December 31, 2012 | ||||
Distributions Per Share | ||||
Starting | Ending | Income | Capital | |
Share Price | Share Price | Dividends | Gains | |
Vanguard Tax-Managed Balanced Fund | $20.55 | $22.25 | $0.521 | $0.000 |
Vanguard Tax-Managed Growth and Income | ||||
Fund | ||||
Admiral Shares | $56.33 | $63.89 | $1.364 | $0.000 |
Institutional Shares | 27.41 | 31.09 | 0.676 | 0.000 |
Vanguard Tax-Managed Capital Appreciation | ||||
Fund | ||||
Admiral Shares | $62.36 | $71.17 | $1.380 | $0.000 |
Institutional Shares | 30.98 | 35.36 | 0.701 | 0.000 |
Vanguard Tax-Managed Small-Cap Fund | ||||
Admiral Shares | $27.26 | $31.16 | $0.464 | $0.000 |
Institutional Shares | 27.33 | 31.22 | 0.490 | 0.000 |
8
Tax-Managed Balanced Fund
Fund Profile
As of December 31, 2012
Equity and Portfolio Characteristics | |||
DJ U.S. | |||
Total | |||
Russell Market | |||
1000 | FA | ||
Fund | Index | Index | |
Number of Stocks | 652 | 991 | 3,604 |
Median Market Cap | $35.1B | $42.8B | $35.1B |
Price/Earnings Ratio | 16.6x | 16.4x | 16.8x |
Price/Book Ratio | 2.1x | 2.2x | 2.1x |
Return on Equity | 17.6% | 17.9% | 17.1% |
Earnings Growth Rate | 10.6% | 10.0% | 9.7% |
Dividend Yield | 1.8% | 2.2% | 2.1% |
Foreign Holdings | 0.0% | 0.0% | 0.0% |
Turnover Rate | 7% | — | — |
Ticker Symbol | VTMFX | — | — |
Expense Ratio1 | 0.12% | — | — |
30-Day SEC Yield | 1.61% | — | — |
Short-Term Reserves | 0.0% | — | — |
Fixed Income Characteristics | |||
Barclays | |||
1-15 Year | Barclays | ||
Municipal | Municipal | ||
Fund | Index Bond Index | ||
Number of Bonds | 879 | 37,782 | 46,472 |
Yield to Maturity | |||
(before expenses) | 1.6% | 1.7% | 2.2% |
Average Coupon | 4.5% | 4.8% | 4.9% |
Average Duration | 4.9 years | 4.9 years | 6.7 years |
Average Effective | |||
Maturity | 5.4 years | 8.2 years | 13.6 years |
Total Fund Volatility Measures | ||
DJ U.S. | ||
Total | ||
Tax-Managed | Market | |
Balanced | FA | |
Comp Index | Index | |
R-Squared | 1.00 | 0.94 |
Beta | 0.98 | 0.44 |
These measures show the degree and timing of the fund’s fluctuations compared with the indexes over 36 months.
Ten Largest Stocks (% of equity portfolio) | ||
Apple Inc. | Computer Hardware | 3.5% |
Exxon Mobil Corp. | Integrated Oil & Gas | 2.6 |
International Business | IT Consulting & | |
Machines Corp. | Other Services | 1.5 |
General Electric Co. | Industrial | |
Conglomerates | 1.4 | |
Chevron Corp. | Integrated Oil & Gas | 1.3 |
Google Inc. Class A | Internet Software & | |
Services | 1.3 | |
Microsoft Corp. | System Software | 1.2 |
AT&T Inc. | Integrated | |
Telecommunication | ||
Services | 1.2 | |
Procter & Gamble Co. | Household Products | 1.2 |
Johnson & Johnson | Pharmaceuticals | 1.2 |
Top Ten | 16.4% | |
Top Ten as % of Total Net Assets | 8.0% |
The holdings listed exclude any temporary cash investments and equity index products.
Fund Asset Allocation
1 The expense ratio shown is from the prospectus dated April 26, 2012, and represents estimated costs for the current fiscal year. For the fiscal year ended December 31, 2012, the expense ratio was 0.12%.
9
Tax-Managed Balanced Fund
Sector Diversification (% of equity exposure) | |||
DJ U.S. | |||
Total | |||
Russell | Market | ||
1000 | FA | ||
Fund | Index | Index | |
Consumer | |||
Discretionary | 12.4% | 12.4% | 12.3% |
Consumer Staples | 9.8 | 9.8 | 9.3 |
Energy | 10.3 | 10.3 | 10.2 |
Financials | 16.3 | 16.3 | 16.9 |
Health Care | 11.8 | 11.7 | 11.7 |
Industrials | 11.0 | 10.9 | 11.1 |
Information | |||
Technology | 18.3 | 18.3 | 18.3 |
Materials | 3.9 | 4.0 | 4.0 |
Telecommunication | |||
Services | 2.9 | 2.9 | 2.7 |
Utilities | 3.3 | 3.4 | 3.5 |
Distribution by Effective Maturity (% of fixed income portfolio) | |
Under 1 Year | 11.4% |
1 - 3 Years | 14.5 |
3 - 5 Years | 18.9 |
5 - 10 Years | 51.5 |
10 - 20 Years | 3.7 |
Largest Area Concentrations (% of fixed income portfolio) | |
New York | 16.9% |
California | 11.2% |
Texas | 6.9% |
New Jersey | 6.8% |
Massachusetts | 4.4% |
Ohio | 4.4% |
Florida | 4.0% |
Pennsylvania | 4.0% |
Illinois | 3.5% |
Georgia | 3.1% |
Top Ten | 65.2% |
"Largest Area Concentration" figures exclude any fixed income futures contracts.
Distribution by Credit Quality (% of fixed income portfolio) | |
AAA | 21.3% |
AA | 51.1 |
A | 23.7 |
BBB | 3.7 |
Not Rated | 0.2 |
For information about these ratings, see the Glossary entry for Credit Quality.
Equity Investment Focus
Fixed Income Investment Focus
10
Tax-Managed Balanced Fund
Performance Summary
All of the returns in this report represent past performance, which is not a guarantee of future results that may be achieved by the fund. (Current performance may be lower or higher than the performance data cited. For performance data current to the most recent month-end, visit our website at vanguard.com/performance.) Note, too, that both investment returns and principal value can fluctuate widely, so an investor’s shares, when sold, could be worth more or less than their original cost. The returns shown do not reflect taxes that a shareholder would pay on fund distributions or on the sale of fund shares.
Cumulative Performance: December 31, 2002, Through December 31, 2012
Initial Investment of $10,000
Average Annual Total Returns | ||||
Periods Ended December 31, 2012 | ||||
Final Value | ||||
One | Five | Ten | of a $10,000 | |
Year | Years | Years | Investment | |
Tax-Managed Balanced Fund | 10.87% | 4.46% | 6.49% | $18,753 |
Barclays Municipal Bond Index | 6.78 | 5.91 | 5.10 | 16,448 |
Tax-Managed Balanced Composite | ||||
Index | 10.68 | 4.68 | 6.70 | 19,129 |
Mixed-Asset Target Allocation | ||||
Moderate Funds Average | 11.49 | 2.61 | 5.97 | 17,865 |
Dow Jones U.S. Total Stock Market | ||||
Float Adjusted Index | 16.38 | 2.21 | 7.95 | 21,484 |
For a benchmark description, see the Glossary.
Mixed-Asset Target Allocation Moderate Funds Average: Derived from data provided by Lipper Inc.
See Financial Highlights for dividend and capital gains information.
11
Tax-Managed Balanced Fund
Fiscal-Year Total Returns (%): December 31, 2002, Through December 31, 2012
Tax-Managed Balanced Fund |
Tax-Managed Balanced Composite Index |
For a benchmark description, see the Glossary.
12
Tax-Managed Balanced Fund
Financial Statements
Statement of Net Assets
As of December 31 , 2012
The fund reports a complete list of its holdings in regulatory filings four times in each fiscal year, at the quarter-ends. For the second and fourth fiscal quarters, the lists appear in the fund’s semiannual and annual reports to shareholders. For the first and third fiscal quarters, the fund files the lists with the Securities and Exchange Commission on Form N-Q. Shareholders can look up the fund’s Forms N-Q on the SEC’s website at sec.gov. Forms N-Q may also be reviewed and copied at the SEC’s Public Reference Room (see the back cover of this report for further information).
Market | |||
Value | |||
Shares | ($000) | ||
Common Stocks (48.0%) | |||
Consumer Discretionary (6.0%) | |||
* | Amazon.com Inc. | 13,202 | 3,315 |
Comcast Corp. Class A | 84,845 | 3,171 | |
Walt Disney Co. | 63,166 | 3,145 | |
McDonald’s Corp. | 30,774 | 2,715 | |
Home Depot Inc. | 40,399 | 2,499 | |
News Corp. Class A | 79,351 | 2,027 | |
Ford Motor Co. | 142,400 | 1,844 | |
Lowe’s Cos. Inc. | 44,615 | 1,585 | |
NIKE Inc. Class B | 28,894 | 1,491 | |
Starbucks Corp. | 26,263 | 1,408 | |
* | DIRECTV | 27,018 | 1,355 |
Target Corp. | 22,045 | 1,304 | |
TJX Cos. Inc. | 29,186 | 1,239 | |
Time Warner Inc. | 25,796 | 1,234 | |
* | priceline.com Inc. | 1,978 | 1,229 |
Viacom Inc. Class B | 21,627 | 1,141 | |
CBS Corp. Class B | 28,800 | 1,096 | |
Yum! Brands Inc. | 16,305 | 1,083 | |
* | General Motors Co. | 30,400 | 876 |
Coach Inc. | 14,120 | 784 | |
Time Warner Cable Inc. | 7,643 | 743 | |
Macy’s Inc. | 18,494 | 722 | |
* | Liberty Media Corp. - | ||
Liberty Capital Class A | 6,204 | 720 | |
Virgin Media Inc. | 18,636 | 685 | |
* | Bed Bath & Beyond Inc. | 11,700 | 654 |
Starwood Hotels & | |||
Resorts Worldwide Inc. | 10,707 | 614 | |
Carnival Corp. | 16,650 | 612 | |
Ross Stores Inc. | 11,104 | 601 | |
Harley-Davidson Inc. | 12,290 | 600 | |
* | O’Reilly Automotive Inc. | 6,562 | 587 |
PVH Corp. | 5,283 | 586 | |
Marriott International Inc. | |||
Class A | 15,183 | 566 | |
Gap Inc. | 17,925 | 556 | |
Ralph Lauren Corp. Class A | 3,573 | 536 | |
DISH Network Corp. Class A | 14,505 | 528 |
Market | |||
Value | |||
Shares | ($000) | ||
PetSmart Inc. | 7,424 | 507 | |
* | Dollar Tree Inc. | 12,088 | 490 |
Kohl’s Corp. | 11,385 | 489 | |
Lennar Corp. Class A | 12,623 | 488 | |
* | Liberty Global Inc. Class A | 7,732 | 487 |
* | AutoZone Inc. | 1,351 | 479 |
Tractor Supply Co. | 5,157 | 456 | |
Johnson Controls Inc. | 14,700 | 451 | |
DR Horton Inc. | 22,722 | 449 | |
Newell Rubbermaid Inc. | 19,818 | 441 | |
Family Dollar Stores Inc. | 6,866 | 435 | |
Royal Caribbean Cruises Ltd. | 12,547 | 427 | |
Advance Auto Parts Inc. | 5,864 | 424 | |
* | Jarden Corp. | 8,092 | 418 |
Lear Corp. | 8,800 | 412 | |
Scripps Networks | |||
Interactive Inc. Class A | 7,068 | 409 | |
* | Discovery Communications | ||
Inc. Class A | 6,441 | 409 | |
Dillard’s Inc. Class A | 4,613 | 386 | |
Harman International | |||
Industries Inc. | 8,007 | 357 | |
Expedia Inc. | 5,791 | 356 | |
* | NVR Inc. | 380 | 350 |
Staples Inc. | 29,898 | 341 | |
Chico’s FAS Inc. | 18,400 | 340 | |
Wyndham Worldwide Corp. | 6,300 | 335 | |
* | BorgWarner Inc. | 4,476 | 321 |
* | Liberty Global Inc. | 5,446 | 320 |
Aaron’s Inc. | 10,711 | 303 | |
International Game | |||
Technology | 21,367 | 303 | |
Brinker International Inc. | 9,637 | 299 | |
Morningstar Inc. | 4,628 | 291 | |
Weight Watchers | |||
International Inc. | 5,533 | 290 | |
* | Dollar General Corp. | 6,500 | 287 |
John Wiley & Sons Inc. | |||
Class A | 7,218 | 281 | |
Hasbro Inc. | 7,712 | 277 | |
* | TripAdvisor Inc. | 6,191 | 260 |
13
Tax-Managed Balanced Fund | |||
Market | |||
Value | |||
Shares | ($000) | ||
Abercrombie & Fitch Co. | 5,400 | 259 | |
Las Vegas Sands Corp. | 5,400 | 249 | |
Comcast Corp. | 6,476 | 233 | |
McGraw-Hill Cos. Inc. | 4,200 | 230 | |
Thor Industries Inc. | 6,000 | 225 | |
Service Corp. International | 14,900 | 206 | |
Wendy’s Co. | 43,670 | 205 | |
Gentex Corp. | 10,743 | 202 | |
Omnicom Group Inc. | 3,800 | 190 | |
DSW Inc. Class A | 2,600 | 171 | |
Polaris Industries Inc. | 2,000 | 168 | |
DeVry Inc. | 6,800 | 161 | |
* | Panera Bread Co. Class A | 900 | 143 |
* | Apollo Group Inc. Class A | 6,500 | 136 |
Guess? Inc. | 4,600 | 113 | |
Signet Jewelers Ltd. | 2,000 | 107 | |
* | Hanesbrands Inc. | 2,800 | 100 |
* | Toll Brothers Inc. | 2,000 | 65 |
* | MGM Resorts International | 4,013 | 47 |
* | Liberty Interactive Corp. | ||
Class A | 2,138 | 42 | |
* | AMC Networks Inc. Class A | 573 | 28 |
Lennar Corp. Class B | 680 | 21 | |
* | Netflix Inc. | 177 | 16 |
Cablevision Systems Corp. | |||
Class A | 1,094 | 16 | |
Tiffany & Co. | 200 | 11 | |
* | Liberty Ventures Class A | 142 | 10 |
H&R Block Inc. | 500 | 9 | |
60,582 | |||
Consumer Staples (4.7%) | |||
Procter & Gamble Co. | 85,049 | 5,774 | |
Coca-Cola Co. | 136,364 | 4,943 | |
Philip Morris | |||
International Inc. | 49,594 | 4,148 | |
Wal-Mart Stores Inc. | 56,649 | 3,865 | |
PepsiCo Inc. | 41,890 | 2,867 | |
CVS Caremark Corp. | 42,692 | 2,064 | |
Colgate-Palmolive Co. | 18,235 | 1,906 | |
Costco Wholesale Corp. | 16,717 | 1,651 | |
Altria Group Inc. | 46,300 | 1,455 | |
Kraft Foods Group Inc. | 24,479 | 1,113 | |
Walgreen Co. | 28,118 | 1,041 | |
Mondelez International Inc. | |||
Class A | 34,937 | 890 | |
Archer-Daniels-Midland Co. | 31,473 | 862 | |
Whole Foods Market Inc. | 8,800 | 804 | |
Mead Johnson Nutrition Co. | 10,513 | 693 | |
Estee Lauder Cos. Inc. | |||
Class A | 11,318 | 677 | |
Bunge Ltd. | 8,530 | 620 | |
Hershey Co. | 8,400 | 607 | |
General Mills Inc. | 14,314 | 578 | |
Coca-Cola Enterprises Inc. | 18,186 | 577 | |
Beam Inc. | 9,400 | 574 | |
JM Smucker Co. | 6,651 | 574 |
Market | |||
Value | |||
Shares | ($000) | ||
Brown-Forman Corp. Class B | 8,688 | 549 | |
McCormick & Co. Inc. | 8,347 | 530 | |
Kroger Co. | 19,300 | 502 | |
* | Ralcorp Holdings Inc. | 5,599 | 502 |
Dr Pepper Snapple | |||
Group Inc. | 11,332 | 501 | |
Church & Dwight Co. Inc. | 9,255 | 496 | |
* | Monster Beverage Corp. | 9,238 | 488 |
* | Constellation Brands Inc. | ||
Class A | 13,587 | 481 | |
Tyson Foods Inc. Class A | 24,710 | 479 | |
Ingredion Inc. | 7,386 | 476 | |
Clorox Co. | 6,400 | 469 | |
Energizer Holdings Inc. | 5,465 | 437 | |
Kimberly-Clark Corp. | 4,972 | 420 | |
Hormel Foods Corp. | 12,892 | 402 | |
* | Dean Foods Co. | 23,302 | 385 |
* | Smithfield Foods Inc. | 17,756 | 383 |
Safeway Inc. | 20,134 | 364 | |
Hillshire Brands Co. | 12,887 | 363 | |
* | Green Mountain Coffee | ||
Roasters Inc. | 8,629 | 357 | |
Herbalife Ltd. | 9,227 | 304 | |
Molson Coors Brewing Co. | |||
Class B | 5,600 | 240 | |
Avon Products Inc. | 10,500 | 151 | |
Sysco Corp. | 1,500 | 47 | |
47,609 | |||
Energy (4.9%) | |||
Exxon Mobil Corp. | 149,215 | 12,915 | |
Chevron Corp. | 59,532 | 6,438 | |
Schlumberger Ltd. | 34,767 | 2,409 | |
ConocoPhillips | 29,712 | 1,723 | |
Occidental Petroleum Corp. | 20,404 | 1,563 | |
Anadarko Petroleum Corp. | 20,290 | 1,508 | |
Phillips 66 | 26,406 | 1,402 | |
EOG Resources Inc. | 11,128 | 1,344 | |
Apache Corp. | 16,314 | 1,281 | |
Halliburton Co. | 33,664 | 1,168 | |
National Oilwell Varco Inc. | 16,529 | 1,130 | |
Marathon Petroleum Corp. | 15,241 | 960 | |
Devon Energy Corp. | 15,657 | 815 | |
Noble Energy Inc. | 7,999 | 814 | |
* | Cameron International Corp. | 12,852 | 726 |
Hess Corp. | 13,204 | 699 | |
Pioneer Natural | |||
Resources Co. | 6,519 | 695 | |
Cabot Oil & Gas Corp. | 13,152 | 654 | |
* | Southwestern Energy Co. | 19,031 | 636 |
* | FMC Technologies Inc. | 13,886 | 595 |
HollyFrontier Corp. | 12,492 | 581 | |
Range Resources Corp. | 9,046 | 568 | |
* | Concho Resources Inc. | 6,600 | 532 |
* | Plains Exploration & | ||
Production Co. | 10,148 | 476 | |
EQT Corp. | 7,897 | 466 |
14
Tax-Managed Balanced Fund | |||
Market | |||
Value | |||
Shares | ($000) | ||
QEP Resources Inc. | 14,525 | 440 | |
Helmerich & Payne Inc. | 7,715 | 432 | |
Murphy Oil Corp. | 6,700 | 399 | |
Diamond Offshore | |||
Drilling Inc. | 5,860 | 398 | |
SM Energy Co. | 7,172 | 374 | |
Patterson-UTI Energy Inc. | 19,302 | 360 | |
Peabody Energy Corp. | 13,009 | 346 | |
* | Dresser-Rand Group Inc. | 6,122 | 344 |
* | Continental Resources Inc. | 4,564 | 335 |
Cimarex Energy Co. | 5,776 | 333 | |
* | Denbury Resources Inc. | 20,300 | 329 |
* | Newfield Exploration Co. | 11,327 | 303 |
* | Ultra Petroleum Corp. | 16,400 | 297 |
* | Oil States International Inc. | 4,098 | 293 |
SEACOR Holdings Inc. | 3,397 | 285 | |
* | Rowan Cos. plc Class A | 8,883 | 278 |
Energen Corp. | 5,830 | 263 | |
Marathon Oil Corp. | 8,482 | 260 | |
CONSOL Energy Inc. | 7,605 | 244 | |
* | Nabors Industries Ltd. | 16,090 | 232 |
* | Kosmos Energy Ltd. | 18,697 | 231 |
World Fuel Services Corp. | 5,400 | 222 | |
CARBO Ceramics Inc. | 2,108 | 165 | |
* | Whiting Petroleum Corp. | 3,600 | 156 |
* | SandRidge Energy Inc. | 21,613 | 137 |
* | Superior Energy Services Inc. | 6,121 | 127 |
* | McDermott International Inc. | 11,085 | 122 |
EXCO Resources Inc. | 13,311 | 90 | |
Baker Hughes Inc. | 1,950 | 80 | |
Chesapeake Energy Corp. | 4,500 | 75 | |
* | Alpha Natural Resources Inc. | 3,888 | 38 |
50,086 | |||
Financials (7.8%) | |||
* | Berkshire Hathaway Inc. | ||
Class B | 62,777 | 5,631 | |
Wells Fargo & Co. | 145,121 | 4,960 | |
JPMorgan Chase & Co. | 111,101 | 4,885 | |
Bank of America Corp. | 373,017 | 4,327 | |
Citigroup Inc. | 105,492 | 4,173 | |
Goldman Sachs Group Inc. | 18,285 | 2,332 | |
American Express Co. | 37,859 | 2,176 | |
Simon Property Group Inc. | 11,878 | 1,878 | |
US Bancorp | 46,300 | 1,479 | |
Capital One Financial Corp. | 22,592 | 1,309 | |
American Tower Corporation | 16,573 | 1,281 | |
Morgan Stanley | 63,960 | 1,223 | |
State Street Corp. | 21,669 | 1,019 | |
Public Storage | 6,472 | 938 | |
Discover Financial Services | 24,229 | 934 | |
* | American International | ||
Group Inc. | 25,700 | 907 | |
Equity Residential | 14,550 | 825 | |
Franklin Resources Inc. | 6,525 | 820 | |
Boston Properties Inc. | 7,481 | 792 | |
SunTrust Banks Inc. | 27,529 | 780 |
Market | |||
Value | |||
Shares | ($000) | ||
Weyerhaeuser Co. | 27,357 | 761 | |
Travelers Cos. Inc. | 10,589 | 761 | |
Aon plc | 13,400 | 745 | |
AvalonBay Communities Inc. | 5,100 | 692 | |
Progressive Corp. | 31,897 | 673 | |
Loews Corp. | 16,316 | 665 | |
Host Hotels & Resorts Inc. | 41,299 | 647 | |
Bank of New York | |||
Mellon Corp. | 25,100 | 645 | |
Moody’s Corp. | 12,500 | 629 | |
General Growth | |||
Properties Inc. | 30,900 | 613 | |
Hartford Financial | |||
Services Group Inc. | 26,400 | 592 | |
Fifth Third Bancorp | 38,275 | 581 | |
Regions Financial Corp. | 78,215 | 557 | |
Lincoln National Corp. | 20,930 | 542 | |
* | IntercontinentalExchange Inc. | 4,271 | 529 |
* | CBRE Group Inc. Class A | 25,773 | 513 |
SL Green Realty Corp. | 6,459 | 495 | |
Vornado Realty Trust | 6,000 | 480 | |
* | Affiliated Managers | ||
Group Inc. | 3,684 | 479 | |
Federal Realty | |||
Investment Trust | 4,519 | 470 | |
Aflac Inc. | 8,800 | 467 | |
PNC Financial Services | |||
Group Inc. | 7,700 | 449 | |
Unum Group | 20,827 | 434 | |
MetLife Inc. | 12,940 | 426 | |
Comerica Inc. | 13,700 | 416 | |
Torchmark Corp. | 7,948 | 411 | |
Taubman Centers Inc. | 5,200 | 409 | |
* | Alleghany Corp. | 1,219 | 409 |
Leucadia National Corp. | 17,000 | 404 | |
* | MSCI Inc. Class A | 12,934 | 401 |
Reinsurance Group of | |||
America Inc. Class A | 7,470 | 400 | |
RenaissanceRe | |||
Holdings Ltd. | 4,898 | 398 | |
Zions Bancorporation | 18,451 | 395 | |
Raymond James | |||
Financial Inc. | 10,234 | 394 | |
Extra Space Storage Inc. | 10,800 | 393 | |
* | Arch Capital Group Ltd. | 8,850 | 390 |
Jones Lang LaSalle Inc. | 4,612 | 387 | |
* | St. Joe Co. | 16,600 | 383 |
WR Berkley Corp. | 10,143 | 383 | |
HCC Insurance Holdings Inc. | 10,264 | 382 | |
Essex Property Trust Inc. | 2,600 | 381 | |
Allstate Corp. | 9,400 | 378 | |
Charles Schwab Corp. | 26,105 | 375 | |
* | American Capital Ltd. | 31,200 | 374 |
SEI Investments Co. | 15,847 | 370 | |
DDR Corp. | 23,607 | 370 |
15
Tax-Managed Balanced Fund | |||
Market | |||
Value | |||
Shares | ($000) | ||
Tanger Factory | |||
Outlet Centers | 10,800 | 369 | |
Legg Mason Inc. | 14,354 | 369 | |
Alexandria Real Estate | |||
Equities Inc. | 5,300 | 367 | |
First Horizon National Corp. | 36,840 | 365 | |
American Financial | |||
Group Inc. | 9,150 | 362 | |
East West Bancorp Inc. | 16,769 | 360 | |
Douglas Emmett Inc. | 15,334 | 357 | |
* | Howard Hughes Corp. | 4,800 | 350 |
Equity Lifestyle | |||
Properties Inc. | 5,200 | 350 | |
Digital Realty Trust Inc. | 5,143 | 349 | |
First Republic Bank | 10,400 | 341 | |
Apartment Investment & | |||
Management Co. Class A | 12,576 | 340 | |
Brown & Brown Inc. | 13,261 | 338 | |
Allied World Assurance Co. | |||
Holdings AG | 4,248 | 335 | |
* | Forest City Enterprises Inc. | ||
Class A | 20,713 | 335 | |
* | Markel Corp. | 771 | 334 |
TCF Financial Corp. | 27,300 | 332 | |
City National Corp. | 6,600 | 327 | |
KeyCorp | 38,318 | 323 | |
Associated Banc-Corp | 24,527 | 322 | |
Washington Federal Inc. | 19,000 | 321 | |
Chubb Corp. | 4,200 | 316 | |
CapitalSource Inc. | 41,714 | 316 | |
Assurant Inc. | 8,400 | 291 | |
Assured Guaranty Ltd. | 20,094 | 286 | |
TD Ameritrade Holding Corp. | 16,661 | 280 | |
White Mountains | |||
Insurance Group Ltd. | 538 | 277 | |
LPL Financial Holdings Inc. | 9,800 | 276 | |
NASDAQ OMX Group Inc. | 10,873 | 272 | |
* | TFS Financial Corp. | 27,100 | 261 |
Prudential Financial Inc. | 4,712 | 251 | |
First Citizens | |||
BancShares Inc. Class A | 1,517 | 248 | |
* | Alexander & Baldwin Inc. | 8,400 | 247 |
CNA Financial Corp. | 8,693 | 243 | |
Retail Properties of | |||
America Inc. | 19,700 | 236 | |
Commerce Bancshares Inc. | 6,584 | 231 | |
Lazard Ltd. Class A | 7,700 | 230 | |
Huntington Bancshares Inc. | 35,900 | 229 | |
BOK Financial Corp. | 4,040 | 220 | |
ProAssurance Corp. | 5,000 | 211 | |
Hanover Insurance Group Inc. | 5,014 | 194 | |
ACE Ltd. | 2,300 | 184 | |
StanCorp Financial Group Inc. | 5,000 | 183 | |
* | MBIA Inc. | 22,375 | 176 |
BRE Properties Inc. | 3,400 | 173 | |
Jefferies Group Inc. | 9,300 | 173 |
Market | |||
Value | |||
Shares | ($000) | ||
* | Signature Bank | 2,400 | 171 |
BB&T Corp. | 5,800 | 169 | |
* | Genworth Financial Inc. | ||
Class A | 20,900 | 157 | |
BlackRock Inc. | 722 | 149 | |
Prologis Inc. | 3,600 | 131 | |
CME Group Inc. | 2,495 | 127 | |
* | CIT Group Inc. | 2,100 | 81 |
Ameriprise Financial Inc. | 1,180 | 74 | |
M&T Bank Corp. | 750 | 74 | |
Hospitality Properties Trust | 3,122 | 73 | |
* | E*TRADE Financial Corp. | 3,200 | 29 |
Cullen/Frost Bankers Inc. | 200 | 11 | |
People’s United Financial Inc. | 400 | 5 | |
79,618 | |||
Health Care (5.7%) | |||
Johnson & Johnson | 81,844 | 5,737 | |
Pfizer Inc. | 222,590 | 5,583 | |
Merck & Co. Inc. | 85,821 | 3,514 | |
Abbott Laboratories | 48,200 | 3,157 | |
Amgen Inc. | 28,555 | 2,465 | |
* | Gilead Sciences Inc. | 28,901 | 2,123 |
UnitedHealth Group Inc. | 37,413 | 2,029 | |
* | Express Scripts Holding Co. | 31,749 | 1,714 |
* | Biogen Idec Inc. | 9,811 | 1,439 |
* | Celgene Corp. | 18,012 | 1,418 |
Allergan Inc. | 13,009 | 1,193 | |
Bristol-Myers Squibb Co. | 34,560 | 1,126 | |
Thermo Fisher Scientific Inc. | 16,567 | 1,057 | |
McKesson Corp. | 10,036 | 973 | |
Eli Lilly & Co. | 19,600 | 967 | |
Medtronic Inc. | 23,200 | 952 | |
WellPoint Inc. | 15,426 | 940 | |
* | Alexion Pharmaceuticals Inc. | 8,886 | 834 |
Cigna Corp. | 14,962 | 800 | |
* | Intuitive Surgical Inc. | 1,590 | 780 |
Stryker Corp. | 13,949 | 765 | |
Aetna Inc. | 15,855 | 734 | |
Covidien plc | 11,800 | 681 | |
* | Mylan Inc. | 24,356 | 669 |
AmerisourceBergen Corp. | |||
Class A | 14,506 | 626 | |
* | Watson Pharmaceuticals Inc. | 7,264 | 625 |
Agilent Technologies Inc. | 14,807 | 606 | |
Humana Inc. | 8,800 | 604 | |
* | Forest Laboratories Inc. | 16,219 | 573 |
* | Life Technologies Corp. | 11,217 | 551 |
Cardinal Health Inc. | 13,245 | 545 | |
Perrigo Co. | 5,228 | 544 | |
Zimmer Holdings Inc. | 8,070 | 538 | |
* | DaVita HealthCare | ||
Partners Inc. | 4,800 | 531 | |
Baxter International Inc. | 7,800 | 520 | |
* | Waters Corp. | 5,918 | 516 |
St. Jude Medical Inc. | 13,835 | 500 | |
CR Bard Inc. | 4,965 | 485 |
16
Tax-Managed Balanced Fund | |||
Market | |||
Value | |||
Shares | ($000) | ||
* | Mettler-Toledo | ||
International Inc. | 2,500 | 483 | |
Quest Diagnostics Inc. | 8,019 | 467 | |
* | Laboratory Corp. of | ||
America Holdings | 5,191 | 450 | |
DENTSPLY International Inc. | 11,183 | 443 | |
Universal Health | |||
Services Inc. Class B | 8,717 | 421 | |
* | Hospira Inc. | 13,460 | 420 |
Cooper Cos. Inc. | 4,484 | 415 | |
* | Varian Medical Systems Inc. | 5,800 | 407 |
* | Vertex Pharmaceuticals Inc. | 9,400 | 394 |
Omnicare Inc. | 10,893 | 393 | |
PerkinElmer Inc. | 12,100 | 384 | |
* | QIAGEN NV | 19,400 | 352 |
Tenet Healthcare Corp. | 10,525 | 342 | |
HCA Holdings Inc. | 11,244 | 339 | |
* | Endo Health Solutions Inc. | 12,869 | 338 |
* | Illumina Inc. | 5,800 | 322 |
Warner Chilcott plc Class A | 26,309 | 317 | |
Techne Corp. | 4,600 | 314 | |
Patterson Cos. Inc. | 9,000 | 308 | |
Hill-Rom Holdings Inc. | 10,722 | 306 | |
* | CareFusion Corp. | 8,395 | 240 |
* | Bio-Rad Laboratories Inc. | ||
Class A | 2,100 | 221 | |
Becton Dickinson and Co. | 1,884 | 147 | |
* | Edwards Lifesciences Corp. | 919 | 83 |
* | Cerner Corp. | 505 | 39 |
57,759 | |||
Industrials (5.2%) | |||
General Electric Co. | 321,909 | 6,757 | |
Union Pacific Corp. | 17,626 | 2,216 | |
United Technologies Corp. | 24,876 | 2,040 | |
3M Co. | 16,900 | 1,569 | |
Danaher Corp. | 24,051 | 1,344 | |
Caterpillar Inc. | 13,500 | 1,209 | |
Boeing Co. | 15,820 | 1,192 | |
Precision Castparts Corp. | 6,252 | 1,184 | |
FedEx Corp. | 12,776 | 1,172 | |
United Parcel Service Inc. | |||
Class B | 15,200 | 1,121 | |
Honeywell International Inc. | 14,600 | 927 | |
Cummins Inc. | 7,321 | 793 | |
Ingersoll-Rand plc | 15,200 | 729 | |
WW Grainger Inc. | 2,932 | 593 | |
Roper Industries Inc. | 5,310 | 592 | |
CSX Corp. | 29,700 | 586 | |
Fluor Corp. | 9,958 | 585 | |
Raytheon Co. | 10,049 | 578 | |
Emerson Electric Co. | 10,800 | 572 | |
Flowserve Corp. | 3,671 | 539 | |
AMETEK Inc. | 14,200 | 534 | |
Southwest Airlines Co. | 50,857 | 521 | |
Pentair Ltd. | 10,087 | 496 | |
* | Stericycle Inc. | 5,198 | 485 |
Market | |||
Value | |||
Shares | ($000) | ||
Equifax Inc. | 8,958 | 485 | |
Deere & Co. | 5,600 | 484 | |
CH Robinson Worldwide Inc. | 7,611 | 481 | |
TransDigm Group Inc. | 3,510 | 479 | |
Expeditors International | |||
of Washington Inc. | 11,766 | 465 | |
* | Quanta Services Inc. | 16,995 | 464 |
Joy Global Inc. | 7,219 | 460 | |
Pall Corp. | 7,600 | 458 | |
* | Fortune Brands Home | ||
& Security Inc. | 15,625 | 457 | |
* | Jacobs Engineering | ||
Group Inc. | 10,595 | 451 | |
Textron Inc. | 18,111 | 449 | |
Chicago Bridge & | |||
Iron Co. NV | 9,558 | 443 | |
* | B/E Aerospace Inc. | 8,911 | 440 |
JB Hunt Transport | |||
Services Inc. | 7,310 | 436 | |
* | AGCO Corp. | 8,737 | 429 |
Republic Services Inc. | |||
Class A | 14,110 | 414 | |
Nordson Corp. | 6,550 | 413 | |
* | WABCO Holdings Inc. | 6,296 | 410 |
Gardner Denver Inc. | 5,988 | 410 | |
Wabtec Corp. | 4,653 | 407 | |
Trinity Industries Inc. | 11,200 | 401 | |
* | Shaw Group Inc. | 8,600 | 401 |
Tyco International Ltd. | 13,700 | 401 | |
Valmont Industries Inc. | 2,911 | 398 | |
* | AECOM Technology Corp. | 16,334 | 389 |
Robert Half International Inc. | 12,200 | 388 | |
Donaldson Co. Inc. | 11,786 | 387 | |
KBR Inc. | 12,796 | 383 | |
Manitowoc Co. Inc. | 24,400 | 383 | |
SPX Corp. | 5,397 | 379 | |
Towers Watson & Co. | |||
Class A | 6,700 | 377 | |
Babcock & Wilcox Co. | 14,319 | 375 | |
Rockwell Collins Inc. | 6,400 | 372 | |
* | WESCO International Inc. | 5,419 | 365 |
Stanley Black & Decker Inc. | 4,927 | 364 | |
Copa Holdings SA Class A | 3,638 | 362 | |
Toro Co. | 8,318 | 358 | |
PACCAR Inc. | 7,800 | 353 | |
Triumph Group Inc. | 5,400 | 353 | |
Regal-Beloit Corp. | 5,000 | 352 | |
Waste Connections Inc. | 10,200 | 345 | |
Huntington Ingalls | |||
Industries Inc. | 7,819 | 339 | |
Dun & Bradstreet Corp. | 4,200 | 330 | |
ITT Corp. | 13,869 | 325 | |
Alliant Techsystems Inc. | 5,186 | 321 | |
Landstar System Inc. | 6,085 | 319 | |
ADT Corp. | 6,850 | 318 | |
* | Navistar International Corp. | 14,546 | 317 |
17
Tax-Managed Balanced Fund | |||
Market | |||
Value | |||
Shares | ($000) | ||
MSC Industrial | |||
Direct Co. Inc. Class A | 4,100 | 309 | |
* | MRC Global Inc. | 11,000 | 306 |
URS Corp. | 7,607 | 299 | |
Armstrong World | |||
Industries Inc. | 5,803 | 294 | |
Xylem Inc. | 10,739 | 291 | |
Kansas City Southern | 3,200 | 267 | |
CNH Global NV | 6,600 | 266 | |
Covanta Holding Corp. | 14,400 | 265 | |
UTi Worldwide Inc. | 19,212 | 257 | |
Kennametal Inc. | 6,300 | 252 | |
General Dynamics Corp. | 3,491 | 242 | |
* | Spirit Aerosystems | ||
Holdings Inc. Class A | 14,000 | 238 | |
Illinois Tool Works Inc. | 3,700 | 225 | |
Manpower Inc. | 5,250 | 223 | |
Fastenal Co. | 4,725 | 221 | |
Cintas Corp. | 5,150 | 211 | |
* | Air Lease Corp. | 8,000 | 172 |
Con-way Inc. | 6,065 | 169 | |
Norfolk Southern Corp. | 2,700 | 167 | |
IDEX Corp. | 3,529 | 164 | |
Lincoln Electric Holdings Inc. | 3,323 | 162 | |
* | Verisk Analytics Inc. Class A | 3,000 | 153 |
* | Oshkosh Corp. | 5,147 | 153 |
* | Delta Air Lines Inc. | 12,100 | 144 |
* | Owens Corning | 3,600 | 133 |
Eaton Corp. plc | 2,000 | 108 | |
Lockheed Martin Corp. | 1,103 | 102 | |
Exelis Inc. | 8,739 | 98 | |
Ryder System Inc. | 1,400 | 70 | |
L-3 Communications | |||
Holdings Inc. | 489 | 37 | |
* | United Continental | ||
Holdings Inc. | 1,200 | 28 | |
* | Engility Holdings Inc. | 81 | 2 |
53,452 | |||
Information Technology (8.8%) | |||
Apple Inc. | 31,904 | 17,006 | |
International Business | |||
Machines Corp. | 37,247 | 7,135 | |
* | Google Inc. Class A | 9,072 | 6,435 |
Microsoft Corp. | 226,356 | 6,050 | |
Oracle Corp. | 130,390 | 4,345 | |
QUALCOMM Inc. | 60,300 | 3,740 | |
Cisco Systems Inc. | 172,915 | 3,398 | |
Intel Corp. | 151,400 | 3,123 | |
Visa Inc. Class A | 19,224 | 2,914 | |
* | eBay Inc. | 43,944 | 2,242 |
Mastercard Inc. Class A | 4,170 | 2,049 | |
* | EMC Corp. | 80,436 | 2,035 |
Texas Instruments Inc. | 40,646 | 1,258 | |
* | Yahoo! Inc. | 55,566 | 1,106 |
* | Salesforce.com Inc. | 6,403 | 1,076 |
Market | |||
Value | |||
Shares | ($000) | ||
* | Cognizant Technology | ||
Solutions Corp. Class A | 13,898 | 1,029 | |
Hewlett-Packard Co. | 65,489 | 933 | |
Accenture plc Class A | 13,800 | 918 | |
* | Adobe Systems Inc. | 24,296 | 915 |
Broadcom Corp. Class A | 26,243 | 871 | |
Intuit Inc. | 14,124 | 840 | |
Motorola Solutions Inc. | 14,267 | 794 | |
Corning Inc. | 58,977 | 744 | |
* | Symantec Corp. | 38,839 | 731 |
Dell Inc. | 70,601 | 715 | |
* | Citrix Systems Inc. | 10,354 | 681 |
* | NetApp Inc. | 19,971 | 670 |
* | Fiserv Inc. | 7,971 | 630 |
Altera Corp. | 18,152 | 625 | |
Applied Materials Inc. | 53,080 | 607 | |
Amphenol Corp. Class A | 9,296 | 601 | |
* | Teradata Corp. | 9,451 | 585 |
Analog Devices Inc. | 13,596 | 572 | |
Xilinx Inc. | 15,829 | 568 | |
Fidelity National Information | |||
Services Inc. | 15,481 | 539 | |
Avago Technologies Ltd. | |||
Class A | 15,535 | 492 | |
* | Alliance Data Systems Corp. | 3,377 | 489 |
* | BMC Software Inc. | 11,383 | 451 |
* | VeriSign Inc. | 11,328 | 440 |
Solera Holdings Inc. | 8,190 | 438 | |
CA Inc. | 19,407 | 427 | |
* | Autodesk Inc. | 11,608 | 410 |
* | Juniper Networks Inc. | 20,600 | 405 |
* | Synopsys Inc. | 12,300 | 392 |
Global Payments Inc. | 8,514 | 386 | |
Jabil Circuit Inc. | 19,900 | 384 | |
Activision Blizzard Inc. | 35,860 | 381 | |
FLIR Systems Inc. | 16,969 | 379 | |
FactSet Research | |||
Systems Inc. | 4,299 | 379 | |
IAC/InterActiveCorp | 7,800 | 369 | |
Western Union Co. | 25,665 | 349 | |
National Instruments Corp. | 12,911 | 333 | |
DST Systems Inc. | 5,430 | 329 | |
Computer Sciences Corp. | 8,200 | 328 | |
* | Lam Research Corp. | 7,700 | 278 |
SAIC Inc. | 22,806 | 258 | |
NVIDIA Corp. | 20,600 | 253 | |
Total System Services Inc. | 11,700 | 251 | |
* | Fairchild Semiconductor | ||
International Inc. Class A | 16,325 | 235 | |
Automatic Data | |||
Processing Inc. | 3,674 | 209 | |
* | Atmel Corp. | 28,800 | 189 |
Xerox Corp. | 26,155 | 178 | |
Maxim Integrated | |||
Products Inc. | 5,500 | 162 | |
Linear Technology Corp. | 4,000 | 137 |
18
Tax-Managed Balanced Fund | |||
Market | |||
Value | |||
Shares | ($000) | ||
* | Ingram Micro Inc. | 7,800 | 132 |
Lexmark International Inc. | |||
Class A | 5,300 | 123 | |
Marvell Technology | |||
Group Ltd. | 15,000 | 109 | |
Harris Corp. | 2,100 | 103 | |
* | LSI Corp. | 14,400 | 102 |
* | NCR Corp. | 4,000 | 102 |
AVX Corp. | 6,400 | 69 | |
* | Tech Data Corp. | 1,400 | 64 |
* | Arrow Electronics Inc. | 1,600 | 61 |
* | Facebook Inc. Class A | 2,000 | 53 |
* | Freescale | ||
Semiconductor Ltd. | 2,600 | 29 | |
Lender Processing | |||
Services Inc. | 800 | 20 | |
89,158 | |||
Materials (1.9%) | |||
Monsanto Co. | 20,808 | 1,969 | |
Freeport-McMoRan | |||
Copper & Gold Inc. | 29,394 | 1,005 | |
Ecolab Inc. | 12,200 | 877 | |
LyondellBasell Industries | |||
NV Class A | 13,538 | 773 | |
EI du Pont de | |||
Nemours & Co. | 16,728 | 752 | |
Mosaic Co. | 12,948 | 733 | |
Sherwin-Williams Co. | 4,600 | 708 | |
CF Industries Holdings Inc. | 3,412 | 693 | |
Dow Chemical Co. | 18,300 | 591 | |
Newmont Mining Corp. | 12,354 | 574 | |
Sigma-Aldrich Corp. | 7,580 | 558 | |
Vulcan Materials Co. | 10,134 | 527 | |
FMC Corp. | 8,798 | 515 | |
Ashland Inc. | 5,998 | 482 | |
Praxair Inc. | 4,400 | 482 | |
Ball Corp. | 10,718 | 480 | |
Celanese Corp. Class A | 10,440 | 465 | |
Airgas Inc. | 5,019 | 458 | |
* | WR Grace & Co. | 6,600 | 444 |
Alcoa Inc. | 49,200 | 427 | |
Reliance Steel & | |||
Aluminum Co. | 6,800 | 422 | |
* | Crown Holdings Inc. | 11,441 | 421 |
Cytec Industries Inc. | 5,833 | 401 | |
Royal Gold Inc. | 4,771 | 388 | |
United States Steel Corp. | 16,059 | 383 | |
Westlake Chemical Corp. | 4,600 | 365 | |
* | Owens-Illinois Inc. | 17,000 | 362 |
Albemarle Corp. | 5,400 | 335 | |
Nucor Corp. | 7,400 | 320 | |
Silgan Holdings Inc. | 7,206 | 300 | |
Martin Marietta Materials Inc. | 3,086 | 291 | |
Walter Energy Inc. | 6,907 | 248 | |
Valspar Corp. | 3,800 | 237 |
Market | |||
Value | |||
Shares | ($000) | ||
Scotts Miracle-Gro Co. | |||
Class A | 5,042 | 222 | |
Sealed Air Corp. | 11,800 | 207 | |
International Paper Co. | 4,943 | 197 | |
Eastman Chemical Co. | 2,640 | 180 | |
Cliffs Natural Resources Inc. | 4,384 | 169 | |
Intrepid Potash Inc. | 6,803 | 145 | |
* | Tahoe Resources Inc. | 3,200 | 59 |
Air Products & Chemicals Inc. | 500 | 42 | |
19,207 | |||
Telecommunication Services (1.4%) | |||
AT&T Inc. | 175,966 | 5,932 | |
Verizon | |||
Communications Inc. | 80,000 | 3,461 | |
* | Crown Castle | ||
International Corp. | 13,467 | 972 | |
* | Sprint Nextel Corp. | 148,535 | 842 |
* | SBA Communications | ||
Corp. Class A | 8,011 | 569 | |
* | Level 3 | ||
Communications Inc. | 18,900 | 437 | |
* | tw telecom inc Class A | 14,900 | 379 |
* | MetroPCS | ||
Communications Inc. | 33,900 | 337 | |
Telephone & Data | |||
Systems Inc. | 14,125 | 313 | |
* | NII Holdings Inc. | 40,451 | 288 |
* | United States Cellular Corp. | 7,715 | 272 |
CenturyLink Inc. | 3,300 | 129 | |
* | Clearwire Corp. Class A | 10,263 | 30 |
13,961 | |||
Utilities (1.6%) | |||
Southern Co. | 29,442 | 1,260 | |
NextEra Energy Inc. | 16,397 | 1,134 | |
Duke Energy Corp. | 12,830 | 819 | |
Sempra Energy | 10,529 | 747 | |
Edison International | 16,308 | 737 | |
Public Service Enterprise | |||
Group Inc. | 22,764 | 697 | |
Dominion Resources Inc. | 13,408 | 694 | |
Consolidated Edison Inc. | 11,880 | 660 | |
Northeast Utilities | 15,264 | 596 | |
PG&E Corp. | 14,635 | 588 | |
Xcel Energy Inc. | 21,000 | 561 | |
ONEOK Inc. | 12,284 | 525 | |
Wisconsin Energy Corp. | 14,232 | 524 | |
Entergy Corp. | 7,700 | 491 | |
* | Calpine Corp. | 26,810 | 486 |
NRG Energy Inc. | 20,624 | 474 | |
AES Corp. | 44,069 | 471 | |
American Water | |||
Works Co. Inc. | 12,528 | 465 | |
OGE Energy Corp. | 7,593 | 428 | |
CMS Energy Corp. | 16,627 | 405 | |
MDU Resources Group Inc. | 18,204 | 387 | |
UGI Corp. | 11,552 | 378 |
19
Tax-Managed Balanced Fund | ||
Market | ||
Value | ||
Shares | ($000) | |
ITC Holdings Corp. | 4,870 | 375 |
NV Energy Inc. | 20,487 | 372 |
Aqua America Inc. | 13,983 | 355 |
National Fuel Gas Co. | 6,901 | 350 |
Alliant Energy Corp. | 7,713 | 339 |
Questar Corp. | 16,333 | 323 |
AGL Resources Inc. | 6,000 | 240 |
Market | ||
Value | ||
Shares | ($000) | |
FirstEnergy Corp. | 4,878 | 204 |
Exelon Corp. | 3,992 | 119 |
American Electric | ||
Power Co. Inc. | 300 | 13 |
16,217 | ||
Total Common Stocks | ||
(Cost $300,316) | 487,649 |
Face | Market | |||
Maturity | Amount | Value | ||
Coupon | Date | ($000) | ($000) | |
Tax-Exempt Municipal Bonds (51.6%) | ||||
Alabama (0.2%) | ||||
Alabama 21st Century Authority | ||||
Tobacco Settlement Revenue | 5.000% | 6/1/20 | 500 | 600 |
Alabama Incentives Financing Authority | ||||
Special Obligation Revenue | 5.000% | 9/1/32 | 380 | 436 |
Alabama Public School & College Authority | ||||
Capital Improvement Revenue | 5.000% | 12/1/21 | 500 | 591 |
Alabama Public School & College Authority | ||||
Capital Improvement Revenue | 5.000% | 12/1/22 | 500 | 590 |
2,217 | ||||
Alaska (0.1%) | ||||
Alaska Housing Finance Corp. | ||||
General Housing Revenue | 5.000% | 12/1/29 | 500 | 589 |
Arizona (1.0%) | ||||
Arizona Board Regents Arizona State | ||||
University System Revenue | 5.875% | 7/1/24 | 100 | 122 |
Arizona COP | 5.000% | 10/1/18 (4) | 500 | 587 |
Arizona Health Facilities Authority Revenue | ||||
(Banner Health) | 5.000% | 1/1/25 | 500 | 557 |
Arizona School Facilities Board COP | 5.500% | 9/1/23 | 500 | 575 |
Arizona School Facilities Board Revenue | ||||
(School Improvement) | 5.750% | 7/1/14 (Prere.) | 500 | 540 |
Arizona Transportation Board Excise Tax | ||||
Revenue (Maricopa County Regional Area) | 5.000% | 7/1/24 | 500 | 609 |
Arizona Transportation Board Excise Tax | ||||
Revenue (Maricopa County Regional Area) | 5.000% | 7/1/25 | 500 | 572 |
Arizona Water Infrastructure Finance | ||||
Authority Revenue | 4.000% | 10/1/14 | 500 | 531 |
Glendale AZ Industrial Development Authority | ||||
Revenue (Midwestern University) | 5.000% | 5/15/30 | 275 | 299 |
Mesa AZ Utility System Revenue | 5.000% | 7/1/14 (Prere.) | 500 | 535 |
Phoenix AZ Civic Improvement Corp. | ||||
Airport Revenue | 5.000% | 7/1/24 | 300 | 349 |
Phoenix AZ Civic Improvement Corp. | ||||
Airport Revenue (Light Rail Project) | 5.000% | 7/1/19 (2) | 780 | 833 |
Phoenix AZ Civic Improvement Corp. | ||||
Water System Revenue | 5.000% | 7/1/21 (14) | 500 | 552 |
Pima County AZ Sewer Revenue | 5.000% | 7/1/20 | 500 | 609 |
Salt River Project Arizona Agricultural | ||||
Improvement & Power District Revenue | 5.000% | 1/1/28 | 750 | 877 |
20
Tax-Managed Balanced Fund | ||||
Face | Market | |||
Maturity | Amount | Value | ||
Coupon | Date | ($000) | ($000) | |
Salt River Project Arizona Agricultural | ||||
Improvement & Power District Revenue | 5.000% | 12/1/28 | 500 | 605 |
Salt Verde AZ Financial Project Revenue | 5.250% | 12/1/24 | 500 | 599 |
University Medical Center Corp. Arizona | ||||
Hospital Revenue | 5.000% | 7/1/19 | 500 | 573 |
Yavapai County AZ Industrial Development | ||||
Authority Hospital Facility Revenue | ||||
(Northern Arizona Healthcare System) | 5.250% | 10/1/22 | 500 | 607 |
10,531 | ||||
California (5.8%) | ||||
ABAG Finance Authority for Nonprofit Corps. | ||||
California Revenue (Jackson Laboratory) | 5.000% | 7/1/21 | 350 | 422 |
ABAG Finance Authority for Nonprofit Corps. | ||||
California Revenue (Jewish Home | ||||
San Francisco) VRDO | 0.000% | 1/3/13 LOC | 100 | 100 |
Alameda CA Corridor Transportation | ||||
Authority Revenue | 0.000% | 10/1/30 (2) | 625 | 240 |
Bay Area CA Infrastructure Financing | ||||
Authority Revenue | 5.000% | 8/1/17 (14) | 500 | 532 |
Bay Area Toll Authority California Toll Bridge | ||||
Revenue (San Francisco Bay Area) | 5.000% | 4/1/16 (Prere.) | 500 | 570 |
Bay Area Toll Authority California Toll Bridge | ||||
Revenue (San Francisco Bay Area) | 5.000% | 10/1/30 | 500 | 571 |
Bay Area Toll Authority California Toll Bridge | ||||
Revenue (San Francisco Bay Area) | 5.000% | 4/1/31 | 500 | 591 |
California Department of Water Resources | ||||
Power Supply Revenue | 5.000% | 5/1/16 | 500 | 571 |
California Department of Water Resources | ||||
Power Supply Revenue | 5.000% | 5/1/17 | 500 | 588 |
California Department of Water Resources | ||||
Power Supply Revenue | 5.000% | 5/1/18 | 500 | 605 |
California Department of Water Resources | ||||
Power Supply Revenue | 5.000% | 5/1/18 | 500 | 605 |
California Department of Water Resources | ||||
Power Supply Revenue | 5.000% | 5/1/19 | 500 | 618 |
California Department of Water Resources | ||||
Power Supply Revenue | 5.000% | 5/1/20 | 575 | 717 |
California Department of Water Resources | ||||
Water System Revenue (Central Valley Project) | 5.000% | 12/1/28 | 500 | 581 |
California Economic Recovery GO | 5.000% | 7/1/14 (Prere.) | 205 | 219 |
California Economic Recovery GO | 5.000% | 7/1/15 | 295 | 315 |
California Economic Recovery GO | 5.000% | 7/1/18 | 500 | 606 |
California Economic Recovery GO | 5.000% | 7/1/19 | 500 | 617 |
California Economic Recovery GO | 5.000% | 7/1/20 | 500 | 611 |
California Economic Recovery GO | 5.250% | 7/1/21 | 500 | 613 |
California Economic Recovery GO | 5.000% | 7/1/22 | 500 | 565 |
California Educational Facilities Authority | ||||
Revenue (University of San Francisco) | 6.125% | 10/1/30 | 500 | 626 |
California GO | 5.250% | 10/1/13 (14) | 500 | 518 |
California GO | 5.000% | 11/1/13 | 500 | 519 |
California GO | 5.000% | 6/1/15 | 500 | 543 |
California GO | 6.000% | 2/1/16 | 500 | 578 |
California GO | 5.000% | 11/1/16 | 350 | 402 |
California GO | 5.000% | 3/1/17 | 500 | 579 |
California GO | 5.000% | 4/1/17 | 500 | 581 |
California GO | 5.500% | 4/1/18 | 500 | 609 |
21
Tax-Managed Balanced Fund | ||||
Face | Market | |||
Maturity | Amount | Value | ||
Coupon | Date | ($000) | ($000) | |
California GO | 6.000% | 4/1/18 | 500 | 623 |
California GO | 5.000% | 9/1/18 | 500 | 569 |
California GO | 5.000% | 11/1/18 (3) | 500 | 587 |
California GO | 5.000% | 6/1/19 (14) | 500 | 579 |
California GO | 5.000% | 9/1/21 | 500 | 619 |
California GO | 5.000% | 10/1/21 | 250 | 281 |
California GO | 5.000% | 6/1/25 | 495 | 534 |
California GO | 5.500% | 3/1/26 | 500 | 583 |
California GO | 5.000% | 6/1/27 (14) | 500 | 564 |
California GO | 5.000% | 9/1/27 | 500 | 555 |
California GO | 4.500% | 8/1/28 (2) | 485 | 525 |
California GO | 5.250% | 2/1/29 | 500 | 592 |
California GO | 5.750% | 4/1/29 | 500 | 593 |
California GO | 5.000% | 9/1/29 (2) | 500 | 546 |
California GO | 5.250% | 3/1/30 | 500 | 578 |
California GO | 5.250% | 9/1/30 | 500 | 587 |
California GO | 5.000% | 2/1/32 | 500 | 577 |
California Health Facilities Financing Authority | ||||
Revenue (Catholic Healthcare West) | 5.250% | 3/1/22 | 300 | 357 |
California Health Facilities Financing Authority | ||||
Revenue (Catholic Healthcare West) PUT | 5.000% | 7/1/14 | 500 | 533 |
California Health Facilities Financing Authority | ||||
Revenue (Cedars-Sinai Medical Center) | 5.000% | 8/15/17 | 500 | 578 |
California Health Facilities Financing Authority | ||||
Revenue (Lucile Salter Packard Children’s | ||||
Hospital at Stanford) | 5.000% | 8/15/20 | 325 | 397 |
California Health Facilities Financing Authority | ||||
Revenue (Rady Children’s Hospital) | 5.000% | 8/15/31 | 500 | 546 |
California Health Facilities Financing Authority | ||||
Revenue (Sutter Health) | 5.500% | 8/15/26 | 500 | 602 |
California Infrastructure & Economic | ||||
Development Bank Revenue (Bay Area | ||||
Toll Bridges Seismic Retrofit) | 5.000% | 1/1/28 (Prere.) | 500 | 671 |
California Municipal Finance Authority Revenue | ||||
(University of La Verne) | 6.125% | 6/1/30 | 500 | 589 |
California Public Works Board Lease Revenue | ||||
(Judicial Council Projects) | 5.125% | 12/1/29 | 250 | 284 |
California Public Works Board Lease Revenue | ||||
(Various Capital Projects) | 5.000% | 4/1/32 | 350 | 391 |
California State University Revenue Systemwide | 5.750% | 11/1/27 | 500 | 590 |
California State University Revenue Systemwide | 5.250% | 11/1/29 | 300 | 344 |
California Statewide Communities Development | ||||
Authority Revenue (Kaiser Permanente) | 5.000% | 4/1/19 | 500 | 591 |
California Statewide Communities Development | ||||
Authority Revenue (Proposition 1A Receivables | ||||
Program) | 5.000% | 6/15/13 | 500 | 511 |
Colton CA Public Financing Authority Electric | ||||
Revenue | 5.000% | 4/1/28 | 500 | 570 |
Irvine CA Reassessment District No. 85-7A | ||||
Improvement Revenue VRDO | 0.000% | 1/3/13 LOC | 200 | 200 |
Los Angeles CA Community College District GO | 5.000% | 8/1/27 | 500 | 576 |
Los Angeles CA Department of Airports | ||||
International Airport Revenue | 5.000% | 5/15/27 | 500 | 586 |
Los Angeles CA Department of Water & | ||||
Power Revenue | 5.000% | 7/1/24 | 500 | 594 |
22
Tax-Managed Balanced Fund | ||||
Face | Market | |||
Maturity | Amount | Value | ||
Coupon | Date | ($000) | ($000) | |
1 Los Angeles CA Department of Water | ||||
& Power Revenue TOB VRDO | 0.100% | 1/2/13 | 600 | 600 |
Los Angeles CA Department of Water | ||||
& Power Revenue VRDO | 0.080% | 1/2/13 | 2,800 | 2,800 |
Los Angeles CA Department of Water | ||||
& Power Revenue VRDO | 0.000% | 1/3/13 | 400 | 400 |
Los Angeles CA GO | 5.000% | 9/1/14 (Prere.) | 500 | 539 |
Los Angeles CA Unified School District GO | 5.000% | 7/1/21 (4) | 1,825 | 2,124 |
Los Angeles CA Unified School District GO | 5.000% | 7/1/26 | 500 | 583 |
Los Angeles CA Unified School District GO | 5.000% | 7/1/29 | 500 | 580 |
Los Angeles CA Unified School District GO | 5.000% | 7/1/29 | 500 | 585 |
Los Angeles CA Wastewater System Revenue | 5.000% | 6/1/29 | 500 | 584 |
Los Angeles County CA Metropolitan | ||||
Transportation Authority Sales Tax Revenue | 5.000% | 7/1/19 | 560 | 690 |
1 Los Angeles County CA Metropolitan | ||||
Transportation Authority Sales Tax Revenue | ||||
TOB VRDO | 0.100% | 1/2/13 | 100 | 100 |
Los Angeles County CA Public Works | ||||
Financing Authority Lease Revenue | 5.000% | 8/1/26 | 500 | 579 |
Sacramento CA Municipal Utility | ||||
District Revenue | 5.000% | 8/15/27 (4) | 500 | 566 |
Sacramento CA Regional Transit | ||||
District Farebox Revenue | 5.000% | 3/1/23 | 500 | 580 |
Sacramento County CA Airport Revenue | 5.625% | 7/1/29 | 500 | 585 |
San Bernardino County CA Transportation | ||||
Authority Revenue | 5.000% | 3/1/31 | 500 | 593 |
San Diego CA Community College District GO | 5.000% | 8/1/31 | 500 | 586 |
San Diego CA Public Facilities Financing | ||||
Authority Sewer Revenue | 5.000% | 5/15/28 | 500 | 579 |
San Diego CA Public Facilities Financing | ||||
Authority Water Revenue | 5.250% | 8/1/28 | 500 | 596 |
San Diego CA Unified School District GO | 0.000% | 7/1/27 | 500 | 276 |
San Diego CA Unified School District GO | 5.500% | 7/1/27 (4) | 500 | 657 |
San Diego CA Unified School District GO | 0.000% | 7/1/28 | 500 | 260 |
San Diego CA Unified School District GO | 0.000% | 7/1/29 | 500 | 245 |
San Diego County CA Regional Airport | ||||
Authority Revenue | 5.000% | 7/1/30 (4) | 500 | 564 |
San Diego County CA Regional Transportation | ||||
Commission Sales Tax Revenue | 5.000% | 4/1/31 | 560 | 670 |
San Francisco CA Bay Area Rapid Transit | ||||
District Sales Tax Revenue | 4.000% | 7/1/21 | 350 | 414 |
San Francisco CA City & County Earthquake | ||||
Safety GO | 5.000% | 6/15/28 | 500 | 588 |
San Francisco CA City & County International | ||||
Airport Revenue | 5.250% | 5/1/22 | 500 | 598 |
San Francisco CA City & County International | ||||
Airport Revenue | 5.000% | 5/1/27 | 225 | 267 |
San Francisco CA City & County International | ||||
Airport Revenue | 5.000% | 5/1/30 | 500 | 580 |
San Francisco CA City & County Public Utilities | ||||
Commission Water Revenue | 5.500% | 11/1/30 | 500 | 614 |
San Jose CA Redevelopment Agency Tax | ||||
Allocation Revenue | 6.500% | 8/1/28 | 700 | 765 |
University of California Revenue | 5.000% | 5/15/21 | 500 | 554 |
University of California Revenue | 5.000% | 5/15/25 | 500 | 585 |
University of California Revenue | 5.000% | 5/15/27 (14) | 500 | 561 |
23
Tax-Managed Balanced Fund | ||||
Face | Market | |||
Maturity | Amount | Value | ||
Coupon | Date | ($000) | ($000) | |
University of California Revenue | 5.000% | 5/15/28 (14) | 500 | 559 |
1 University of California Revenue TOB VRDO | 0.100% | 1/2/13 | 730 | 730 |
58,550 | ||||
Colorado (1.1%) | ||||
Colorado (UCDHSC Fitzsimons | ||||
Academic Projects) COP | 5.000% | 11/1/21 | 500 | 606 |
Colorado Department of Transportation RAN | 5.250% | 12/15/13 (Prere.) | 3,750 | 3,925 |
Colorado Department of Transportation RAN | 5.500% | 6/15/15 (14) | 500 | 560 |
Colorado Health Facilities Authority Revenue | ||||
(Catholic Health Initiatives) | 5.250% | 2/1/31 | 500 | 581 |
1 Colorado Health Facilities Authority Revenue | ||||
(Catholic Health Initiatives) TOB VRDO | 0.130% | 1/2/13 | 595 | 595 |
Colorado Health Facilities Authority Revenue | ||||
(Covenant Retirement Community Inc.) | 5.000% | 12/1/27 | 500 | 544 |
Colorado Springs CO Utility System Revenue | 5.000% | 11/15/28 | 500 | 605 |
Denver CO City & County Airport Revenue | 5.000% | 11/15/20 | 500 | 609 |
Denver CO City & County Airport Revenue | 5.000% | 11/15/26 | 430 | 499 |
E-470 Public Highway Authority Colorado Revenue | 5.250% | 9/1/18 (14) | 1,500 | 1,685 |
E-470 Public Highway Authority Colorado Revenue | 5.375% | 9/1/26 | 500 | 555 |
University of Colorado Enterprise System Revenue | 5.000% | 6/1/29 | 500 | 597 |
11,361 | ||||
Connecticut (1.0%) | ||||
Connecticut GO | 5.500% | 12/15/13 | 3,000 | 3,151 |
Connecticut GO | 5.000% | 1/1/14 | 500 | 524 |
Connecticut GO | 5.000% | 11/1/14 | 500 | 543 |
Connecticut GO | 5.000% | 12/1/14 | 500 | 544 |
Connecticut GO | 5.000% | 11/1/16 | 410 | 475 |
Connecticut GO | 5.000% | 4/15/21 | 500 | 629 |
Connecticut GO | 5.000% | 4/15/28 | 500 | 605 |
Connecticut GO | 5.000% | 10/15/32 | 705 | 840 |
Connecticut Health & Educational Facilities | ||||
Authority Revenue (Hartford Healthcare) | 5.000% | 7/1/26 | 500 | 560 |
Connecticut Health & Educational Facilities | ||||
Authority Revenue (Yale University) VRDO | 0.110% | 1/7/13 | 2,100 | 2,100 |
Connecticut Special Tax Revenue | ||||
(Transportation Infrastructure) | 5.000% | 2/1/16 | 110 | 125 |
Connecticut Special Tax Revenue | ||||
(Transportation Infrastructure) | 5.000% | 11/1/25 | 500 | 586 |
10,682 | ||||
Delaware (0.1%) | ||||
Delaware GO | 5.000% | 10/1/20 | 500 | 637 |
District of Columbia (0.2%) | ||||
District of Columbia GO | 5.000% | 6/1/21 (4) | 500 | 585 |
District of Columbia Income Tax Revenue | 5.250% | 12/1/27 | 500 | 606 |
District of Columbia Income Tax Revenue | 5.000% | 12/1/30 | 500 | 586 |
Metropolitan Washington DC/VA Airports | ||||
Authority Airport System Revenue | 5.000% | 10/1/24 | 500 | 589 |
2,366 | ||||
Florida (2.1%) | ||||
Broward County FL Airport System Revenue | 5.000% | 10/1/28 | 400 | 467 |
Broward County FL Airport System Revenue | 5.375% | 10/1/29 | 500 | 576 |
Citizens Property Insurance Corp. Florida | ||||
Revenue (Coastal Account) | 5.000% | 6/1/15 | 1,000 | 1,090 |
24
Tax-Managed Balanced Fund | ||||
Face | Market | |||
Maturity | Amount | Value | ||
Coupon | Date | ($000) | ($000) | |
Citizens Property Insurance Corp. Florida Revenue | ||||
(Coastal Account) | 5.250% | 6/1/17 | 435 | 503 |
Citizens Property Insurance Corp. Florida Revenue | ||||
(Coastal Account) | 5.500% | 6/1/17 | 1,075 | 1,254 |
Citizens Property Insurance Corp. Florida Revenue | ||||
(Personal Lines Account/Commercial | ||||
Lines Account) | 5.000% | 6/1/20 | 450 | 529 |
Florida Board of Education Capital Outlay GO | 5.000% | 1/1/14 | 500 | 524 |
Florida Board of Education Lottery Revenue | 5.000% | 7/1/16 (2) | 500 | 559 |
Florida Board of Education Lottery Revenue | 5.000% | 7/1/18 | 500 | 595 |
Florida Board of Education Public Education | ||||
Capital Outlay GO | 4.000% | 6/1/16 | 300 | 334 |
Florida Board of Education Public Education | ||||
Capital Outlay GO | 5.000% | 6/1/22 | 500 | 606 |
Florida Board of Education Public Education | ||||
Capital Outlay GO | 5.000% | 6/1/24 | 500 | 577 |
Florida Department of Environmental Protection | ||||
& Preservation Revenue | 5.000% | 7/1/15 (14) | 625 | 691 |
Florida Department of Transportation GO | 5.000% | 7/1/19 | 545 | 673 |
Florida Municipal Power Agency Revenue | ||||
(St. Lucie Project) | 5.000% | 10/1/26 | 500 | 594 |
Florida Turnpike Authority Revenue | 5.000% | 7/1/19 | 500 | 611 |
Jacksonville FL Electric Authority Water | ||||
& Sewer Revenue | 5.000% | 10/1/31 | 500 | 583 |
Jacksonville FL Special Revenue | 5.000% | 10/1/32 | 500 | 586 |
Lakeland FL Educational Facilities Revenue | ||||
(Florida Southern College Project) | 5.000% | 9/1/31 | 880 | 958 |
Miami-Dade County FL Aviation Revenue | ||||
(Miami International Airport) | 4.875% | 10/1/24 | 500 | 576 |
Miami-Dade County FL Aviation Revenue | ||||
(Miami International Airport) | 5.000% | 10/1/30 | 585 | 663 |
Miami-Dade County FL School Board COP | 5.000% | 11/1/22 (2) | 500 | 558 |
Miami-Dade County FL Special Obligation | ||||
Revenue | 5.000% | 10/1/30 | 500 | 571 |
1 Miami-Dade County FL Special Obligation | ||||
Revenue TOB VRDO | 0.120% | 1/2/13 LOC | 600 | 600 |
Miami-Dade County FL Water & Sewer Revenue | 5.000% | 10/1/26 (14) | 500 | 575 |
Orange County FL Health Facilities Authority | ||||
Revenue (Nemours Foundation Project) | 5.000% | 1/1/19 | 500 | 598 |
Orlando & Orange County FL Expressway | ||||
Authority Revenue | 5.000% | 7/1/30 | 500 | 574 |
2 Orlando FL Utility Commission Utility | ||||
System Revenue | 5.000% | 10/1/22 | 500 | 633 |
Orlando FL Utility Commission Water | ||||
& Electric Revenue | 5.250% | 10/1/13 (ETM) | 500 | 519 |
Orlando FL Utility Commission Water | ||||
& Electric Revenue | 5.250% | 10/1/14 (ETM) | 500 | 543 |
Tampa FL Cigarette Tax Allocation Revenue | ||||
(H. Lee Moffitt Cancer Center Project) | 5.000% | 9/1/26 | 200 | 232 |
Tampa FL Health System Revenue | ||||
(Baycare Health System) | 5.000% | 11/15/33 | 500 | 567 |
Tampa FL Hospital Revenue | 5.000% | 7/1/23 | 750 | 855 |
Tohopekaliga FL Water Authority Utility | ||||
System Revenue | 5.750% | 10/1/30 | 500 | 616 |
20,990 |
25
Tax-Managed Balanced Fund | ||||
Face | Market | |||
Maturity | Amount | Value | ||
Coupon | Date | ($000) | ($000) | |
Georgia (1.6%) | ||||
Atlanta GA Airport Revenue | 5.000% | 1/1/16 | 525 | 588 |
Atlanta GA Airport Revenue | 5.000% | 1/1/20 | 500 | 604 |
Atlanta GA Water & Wastewater Revenue | 5.750% | 11/1/27 (4) | 500 | 674 |
Burke County GA Development Authority | ||||
Pollution Control Revenue (Georgia Power Co. | ||||
Plant Vogtle Project) PUT | 1.750% | 6/1/17 | 500 | 513 |
Cobb County GA Kennestone Hospital | ||||
Authority Revenue | 5.000% | 4/1/24 | 400 | 490 |
DeKalb County GA Water & Sewer Revenue | 5.250% | 10/1/31 | 500 | 593 |
Georgia GO | 5.000% | 10/1/13 | 500 | 518 |
Georgia GO | 4.000% | 1/1/15 | 575 | 616 |
Georgia GO | 5.000% | 9/1/15 (Prere.) | 500 | 560 |
Georgia GO | 5.000% | 4/1/16 | 500 | 572 |
Georgia GO | 5.000% | 5/1/16 | 500 | 573 |
Georgia GO | 5.000% | 7/1/16 | 400 | 461 |
Georgia GO | 5.000% | 7/1/16 | 500 | 577 |
Georgia GO | 5.000% | 5/1/17 | 450 | 532 |
Georgia GO | 5.750% | 8/1/17 | 500 | 613 |
Georgia GO | 5.000% | 7/1/21 | 500 | 642 |
Georgia GO | 5.000% | 7/1/22 | 500 | 603 |
Georgia GO | 5.000% | 5/1/25 | 500 | 596 |
Georgia Road & Tollway Authority GAN | 5.000% | 6/1/14 | 500 | 532 |
Georgia Road & Tollway Authority Revenue | 5.000% | 6/1/17 | 500 | 587 |
Gwinnett County GA School District GO | 5.000% | 2/1/17 (ETM) | 500 | 583 |
Gwinnett County GA School District GO | 5.000% | 2/1/28 | 500 | 645 |
Main Street Natural Gas Inc. Georgia | ||||
Gas Project Revenue | 5.000% | 3/15/16 | 590 | 653 |
Main Street Natural Gas Inc. Georgia | ||||
Gas Project Revenue | 5.000% | 3/15/21 | 500 | 568 |
Milledgeville-Baldwin County GA Development | ||||
Authority Revenue (Georgia College & State | ||||
University Foundation) | 5.625% | 9/1/14 (Prere.) | 500 | 548 |
Municipal Electric Authority Georgia Revenue | ||||
(Combined Cycle Project) | 5.000% | 11/1/17 | 365 | 428 |
Municipal Electric Authority Georgia Revenue | ||||
(Project One) | 5.250% | 1/1/17 | 525 | 607 |
Private Colleges & University Authority of | ||||
Georgia Revenue (Emory University) | 5.000% | 9/1/28 | 500 | 586 |
16,062 | ||||
Hawaii (0.6%) | ||||
Hawaii GO | 5.000% | 7/1/14 (2) | 500 | 535 |
Hawaii GO | 5.750% | 2/1/15 (4) | 500 | 554 |
Hawaii GO | 5.000% | 11/1/16 | 200 | 232 |
Hawaii GO | 5.000% | 4/1/19 (2) | 500 | 580 |
Hawaii GO | 5.000% | 12/1/21 | 375 | 476 |
Hawaii GO | 5.000% | 6/1/29 | 500 | 598 |
Hawaii GO | 5.000% | 12/1/29 | 500 | 602 |
Hawaii Pacific Health Revenue | 5.000% | 7/1/19 | 575 | 648 |
Honolulu HI City & County GO | 5.000% | 7/1/20 (4) | 500 | 580 |
Honolulu HI City & County GO | 5.000% | 12/1/30 | 310 | 373 |
Honolulu HI City & County GO | 5.250% | 8/1/31 | 500 | 612 |
University of Hawaii Revenue | 5.000% | 10/1/27 | 500 | 587 |
6,377 |
26
Tax-Managed Balanced Fund | ||||
Face | Market | |||
Maturity | Amount | Value | ||
Coupon | Date | ($000) | ($000) | |
Illinois (1.8%) | ||||
Chicago IL Board of Education GO | 5.250% | 12/1/24 (4) | 500 | 567 |
Chicago IL Board of Education GO | 5.250% | 12/1/26 (12) | 500 | 562 |
Chicago IL GO | 5.000% | 12/1/16 (2) | 500 | 569 |
Chicago IL GO | 5.500% | 1/1/17 (4) | 500 | 575 |
Chicago IL GO | 5.000% | 1/1/19 (2) | 500 | 564 |
Chicago IL Metropolitan Water Reclamation | ||||
District GO | 5.000% | 12/1/31 | 500 | 599 |
Chicago IL O’Hare International Airport Revenue | 5.250% | 1/1/15 (14) | 155 | 169 |
Chicago IL O’Hare International Airport Revenue | 5.250% | 1/1/17 (14) | 370 | 428 |
Chicago IL O’Hare International Airport Revenue | 5.000% | 1/1/24 (4) | 500 | 576 |
Chicago IL O’Hare International Airport Revenue | 5.250% | 1/1/24 (14) | 500 | 554 |
Chicago IL O’Hare International Airport Revenue | 5.000% | 1/1/32 | 500 | 563 |
Cook County IL GO | 5.000% | 11/15/21 | 500 | 584 |
Cook County IL GO | 5.000% | 11/15/28 | 500 | 573 |
Cook County IL GO | 5.250% | 11/15/28 | 500 | 590 |
Illinois Finance Authority Revenue | ||||
(Art Institute of Chicago) | 4.000% | 3/1/16 | 500 | 545 |
Illinois Finance Authority Revenue | ||||
(Ascension Health Credit Group) | 5.000% | 11/15/32 | 500 | 572 |
Illinois Finance Authority Revenue | ||||
(Trinity Health Corp.) | 5.000% | 12/1/30 | 500 | 574 |
Illinois Finance Authority Revenue | ||||
(University of Chicago) | 5.000% | 10/1/29 | 500 | 596 |
Illinois GO | 5.000% | 1/1/18 | 500 | 574 |
Illinois GO | 5.000% | 8/1/19 | 250 | 289 |
Illinois GO | 5.000% | 8/1/20 | 500 | 579 |
Illinois GO | 5.000% | 1/1/21 (4) | 710 | 807 |
Illinois GO | 5.000% | 8/1/21 | 500 | 578 |
Illinois GO | 5.000% | 6/1/26 | 500 | 546 |
Illinois Regional Transportation Authority Revenue | 6.250% | 7/1/23 (4) | 500 | 675 |
Illinois Sales Tax Revenue | 5.500% | 6/15/17 (3) | 500 | 595 |
Illinois Toll Highway Authority Revenue | 5.000% | 1/1/25 (4) | 500 | 567 |
Illinois Toll Highway Authority Revenue | 5.000% | 1/1/28 | 500 | 561 |
Illinois Unemployment Insurance Fund Building | ||||
Receipts Revenue | 5.000% | 12/15/19 | 250 | 272 |
Metropolitan Pier & Exposition Authority Illinois | ||||
Dedicated Sales Tax Revenue | 0.000% | 6/15/19 (3) | 1,000 | 829 |
Metropolitan Pier & Exposition Authority Illinois | ||||
Dedicated Sales Tax Revenue | 0.000% | 6/15/26 (4) | 500 | 287 |
Metropolitan Pier & Exposition Authority Illinois | ||||
Dedicated Sales Tax Revenue | 0.000% | 6/15/27 (4) | 250 | 136 |
Railsplitter Tobacco Settlement Authority Illinois | ||||
Tobacco Settlement Revenue | 5.250% | 6/1/20 | 500 | 599 |
Railsplitter Tobacco Settlement Authority Illinois | ||||
Tobacco Settlement Revenue | 6.000% | 6/1/28 | 400 | 482 |
1 Schaumburg IL GO TOB VRDO | 0.150% | 1/7/13 (13) | 400 | 400 |
18,536 | ||||
Indiana (0.3%) | ||||
Indiana Finance Authority Revenue | ||||
(State Revolving Fund) | 5.000% | 2/1/18 | 500 | 599 |
Indiana Finance Authority Wastewater Utility | ||||
Revenue (CWA Authority Project) | 5.000% | 10/1/32 | 500 | 582 |
Indiana Health & Educational Facility Financing | ||||
Authority Hospital Revenue (Clarian Health | ||||
Obligated Group) | 5.000% | 2/15/25 | 290 | 318 |
27
Tax-Managed Balanced Fund | ||||
Face | Market | |||
Maturity | Amount | Value | ||
Coupon | Date | ($000) | ($000) | |
Indiana Municipal Power Agency Revenue | 5.250% | 1/2/13 (Prere.) | 500 | 500 |
Indiana Office Building Commission Facilities | ||||
Revenue (New Castle Correctional Facility) | 5.250% | 7/1/19 (14) | 500 | 606 |
Indiana University Student Fee Revenue | 5.000% | 6/1/19 | 445 | 549 |
Indiana University Student Fee Revenue | 5.000% | 8/1/23 | 100 | 117 |
3,271 | ||||
Iowa (0.0%) | ||||
Iowa Special Obligation Revenue (Ijobs Program) | 5.000% | 6/1/24 | 220 | 263 |
Kansas (0.5%) | ||||
Kansas Department of Transportation | ||||
Highway Revenue | 5.000% | 9/1/22 | 500 | 599 |
Leavenworth County KS Unified School | ||||
District GO | 4.500% | 9/1/19 (12) | 500 | 596 |
University of Kansas Hospital Authority Health | ||||
Facilities Improvement Revenue | 5.000% | 9/1/16 | 1,250 | 1,434 |
University of Kansas Hospital Authority Health | ||||
Facilities Improvement Revenue | 5.000% | 9/1/17 | 900 | 1,025 |
Wichita KS Hospital Facilities Revenue | ||||
(Via Christi Health System Inc.) | 5.000% | 11/15/29 | 500 | 571 |
Wyandotte County/Kansas City KS Unified | ||||
Government Utility System Revenue | 5.000% | 9/1/23 | 500 | 602 |
4,827 | ||||
Kentucky (0.4%) | ||||
Kentucky Economic Development Finance | ||||
Authority Hospital Revenue (Baptist Healthcare | ||||
System Obligated Group) VRDO | 0.120% | 1/2/13 LOC | 2,185 | 2,185 |
Kentucky Property & Building Commission | ||||
Revenue | 5.250% | 10/1/15 (4) | 150 | 168 |
Kentucky Property & Building Commission | ||||
Revenue | 5.375% | 11/1/23 | 500 | 600 |
Kentucky Property & Building Commission | ||||
Revenue | 5.000% | 11/1/26 (4) | 500 | 574 |
Kentucky Turnpike Authority Economic | ||||
Development Road Revenue | ||||
(Revitalization Project) | 4.000% | 7/1/17 | 500 | 568 |
Kentucky Turnpike Authority Economic | ||||
Development Road Revenue | ||||
(Revitalization Project) | 5.000% | 7/1/25 | 305 | 364 |
4,459 | ||||
Louisiana (0.5%) | ||||
Jefferson Parish LA Environmental Facilities | ||||
& Community Development Authority Revenue | 5.000% | 4/1/18 | 405 | 471 |
Louisiana Citizens Property Insurance Corp. | ||||
Assessment Revenue | 5.000% | 6/1/22 (2) | 500 | 546 |
Louisiana Gasoline & Fuel Tax Revenue | 5.000% | 5/1/31 (4) | 500 | 555 |
Louisiana GO | 5.000% | 5/1/16 (Prere.) | 500 | 573 |
Louisiana GO | 5.000% | 5/1/16 (Prere.) | 500 | 573 |
Louisiana Public Facilities Authority Revenue | ||||
(Ochsner Clinic Foundation Project) | 5.000% | 5/15/16 | 1,260 | 1,378 |
New Orleans LA GO | 5.000% | 12/1/31 | 500 | 562 |
St. Charles Parish LA Gulf Opportunity Zone | ||||
Revenue (Valero Energy Corp.) PUT | 4.000% | 6/1/22 | 385 | 423 |
5,081 |
28
Tax-Managed Balanced Fund | ||||
Face | Market | |||
Maturity | Amount | Value | ||
Coupon | Date | ($000) | ($000) | |
Maine (0.1%) | ||||
Portland ME Airport Revenue | 5.000% | 1/1/20 (4) | 500 | 593 |
Maryland (1.5%) | ||||
Howard County MD GO | 5.000% | 8/15/24 | 200 | 249 |
Maryland Department of Transportation Revenue | 5.000% | 2/15/18 | 500 | 602 |
Maryland GO | 5.000% | 3/1/15 | 550 | 604 |
Maryland GO | 5.250% | 3/1/15 | 500 | 552 |
Maryland GO | 5.000% | 8/1/15 | 500 | 558 |
Maryland GO | 5.000% | 8/1/15 (Prere.) | 500 | 557 |
Maryland GO | 5.000% | 8/1/16 (Prere.) | 450 | 519 |
Maryland GO | 5.000% | 11/1/16 | 105 | 122 |
Maryland GO | 5.000% | 3/15/17 | 500 | 589 |
Maryland GO | 5.000% | 7/15/17 | 610 | 726 |
Maryland GO | 5.000% | 8/1/17 | 500 | 596 |
Maryland GO | 5.250% | 8/15/17 | 500 | 602 |
Maryland GO | 5.000% | 3/15/22 | 500 | 607 |
Maryland Health & Higher Educational Facilities | ||||
Authority Revenue (Anne Arundel | ||||
Health System) | 5.000% | 7/1/27 | 500 | 581 |
Maryland Health & Higher Educational Facilities | ||||
Authority Revenue (Johns Hopkins Health | ||||
System Obligated Group) | 5.000% | 7/1/24 | 500 | 612 |
Maryland Health & Higher Educational Facilities | ||||
Authority Revenue (Loyola University) | 5.000% | 10/1/16 | 575 | 658 |
Maryland Health & Higher Educational Facilities | ||||
Authority Revenue (Maryland Institute | ||||
College of Art) | 5.000% | 6/1/20 | 500 | 589 |
Maryland Transportation Authority Facilities | ||||
Projects Revenue | 5.000% | 7/1/15 (4) | 750 | 800 |
Maryland Transportation Authority Facilities | ||||
Projects Revenue | 5.000% | 7/1/22 | 500 | 605 |
Maryland Transportation Authority GAN | 5.000% | 3/1/16 | 465 | 527 |
Maryland Transportation Authority GAN | 5.250% | 3/1/16 | 585 | 668 |
Maryland Transportation Authority GAN | 5.250% | 3/1/20 | 500 | 620 |
Montgomery County MD GO | 5.000% | 7/1/17 | 500 | 594 |
Montgomery County MD GO | 5.000% | 11/1/17 | 500 | 600 |
Prince Georges County MD GO | 5.000% | 9/15/23 | 500 | 628 |
Washington Suburban Sanitation District | ||||
Maryland GO | 5.000% | 6/1/17 | 500 | 593 |
14,958 | ||||
Massachusetts (2.3%) | ||||
Boston MA GO | 5.000% | 2/1/22 | 500 | 642 |
Massachusetts Bay Transportation Authority | ||||
Sales Tax Revenue | 5.000% | 7/1/18 (Prere.) | 500 | 612 |
Massachusetts Bay Transportation Authority | ||||
Sales Tax Revenue | 5.250% | 7/1/22 | 480 | 619 |
Massachusetts Bay Transportation Authority | ||||
Sales Tax Revenue | 5.500% | 7/1/26 (14) | 400 | 534 |
Massachusetts Bay Transportation Authority | ||||
Sales Tax Revenue | 5.250% | 7/1/28 | 500 | 657 |
Massachusetts College Building Authority | ||||
Revenue | 5.000% | 5/1/16 (Prere.) | 500 | 572 |
Massachusetts College Building Authority | ||||
Revenue | 5.250% | 5/1/29 | 445 | 527 |
29
Tax-Managed Balanced Fund | ||||
Face | Market | |||
Maturity | Amount | Value | ||
Coupon | Date | ($000) | ($000) | |
Massachusetts Department of Transportation | ||||
Metropolitan Highway System Revenue | 5.000% | 1/1/23 | 500 | 590 |
Massachusetts Development Finance Agency | ||||
Revenue (Emerson College) | 5.500% | 1/1/30 | 350 | 395 |
Massachusetts Development Finance Agency | ||||
Revenue (Harvard University) | 5.000% | 1/1/20 | 355 | 447 |
Massachusetts Development Finance Agency | ||||
Revenue (UMASS Memorial Medical Center) | 5.125% | 7/1/26 | 500 | 558 |
Massachusetts GO | 5.500% | 11/1/13 (3) | 2,000 | 2,088 |
Massachusetts GO | 5.000% | 5/1/14 | 500 | 531 |
Massachusetts GO | 5.000% | 8/1/14 | 500 | 536 |
Massachusetts GO | 5.000% | 8/1/15 | 500 | 557 |
Massachusetts GO | 5.500% | 11/1/16 | 500 | 590 |
Massachusetts GO | 5.500% | 10/1/18 | 500 | 623 |
Massachusetts GO | 5.000% | 7/1/20 | 500 | 617 |
Massachusetts GO | 5.000% | 8/1/20 | 500 | 626 |
Massachusetts GO | 5.250% | 8/1/20 | 300 | 381 |
Massachusetts GO | 5.500% | 10/1/20 (14) | 500 | 646 |
Massachusetts GO | 5.500% | 10/1/20 | 500 | 646 |
Massachusetts GO | 5.250% | 8/1/23 | 500 | 651 |
Massachusetts GO | 5.000% | 3/1/26 | 500 | 587 |
Massachusetts GO | 5.000% | 4/1/29 | 500 | 598 |
Massachusetts Health & Educational Facilities | ||||
Authority Revenue (Harvard University) | 5.000% | 12/15/28 | 500 | 605 |
Massachusetts Health & Educational Facilities | ||||
Authority Revenue (Lahey Clinic Medical Center) | 5.000% | 8/15/15 (14) | 500 | 546 |
Massachusetts Port Authority Revenue | 5.000% | 7/1/17 | 415 | 488 |
Massachusetts School Building Authority | ||||
Dedicated Sales Tax Revenue | 5.000% | 8/15/15 (Prere.) | 415 | 463 |
Massachusetts School Building Authority | ||||
Dedicated Sales Tax Revenue | 5.000% | 8/15/15 (Prere.) | 195 | 218 |
Massachusetts School Building Authority | ||||
Dedicated Sales Tax Revenue | 5.000% | 8/15/15 (Prere.) | 65 | 73 |
Massachusetts School Building Authority | ||||
Dedicated Sales Tax Revenue | 5.000% | 8/15/15 (Prere.) | 305 | 340 |
Massachusetts School Building Authority | ||||
Dedicated Sales Tax Revenue | 5.000% | 5/15/19 | 500 | 616 |
Massachusetts School Building Authority | ||||
Dedicated Sales Tax Revenue | 5.000% | 10/15/20 | 225 | 283 |
Massachusetts School Building Authority | ||||
Dedicated Sales Tax Revenue | 5.000% | 8/15/23 | 495 | 622 |
Massachusetts School Building Authority | ||||
Dedicated Sales Tax Revenue | 5.000% | 8/15/30 (4) | 20 | 22 |
Massachusetts Special Obligation Dedicated | ||||
Tax Revenue | 5.500% | 1/1/26 (3) | 500 | 633 |
Massachusetts Turnpike Authority Revenue | ||||
(Metropolitan Highway System) | 0.000% | 1/1/29 (14) | 300 | 172 |
Massachusetts Water Pollution Abatement | ||||
Trust Revenue | 5.250% | 8/1/21 | 500 | 651 |
Massachusetts Water Resources Authority | ||||
Revenue | 5.000% | 8/1/25 | 895 | 1,086 |
University of Massachusetts Building Authority | ||||
Revenue | 5.250% | 11/1/14 (Prere.) | 500 | 545 |
23,193 |
30
Tax-Managed Balanced Fund | ||||
Face | Market | |||
Maturity | Amount | Value | ||
Coupon | Date | ($000) | ($000) | |
Michigan (1.4%) | ||||
Detroit MI City School District GO | 5.250% | 5/1/28 (4) | 500 | 595 |
Mason MI Public School District GO | 5.250% | 5/1/14 (Prere.) | 165 | 176 |
Mason MI Public School District GO | 5.250% | 5/1/17 (4) | 1,685 | 1,786 |
Michigan Building Authority Revenue | 5.000% | 10/15/20 (4) | 500 | 597 |
Michigan Finance Authority Revenue | ||||
(Sparrow Obligated Group) | 5.000% | 11/15/27 | 500 | 572 |
Michigan Finance Authority Revenue | ||||
(State Clean Water Revolving Fund) | 5.000% | 10/1/31 | 500 | 600 |
Michigan GO | 5.000% | 9/15/14 (4) | 500 | 538 |
Michigan GO | 5.000% | 5/1/18 | 500 | 603 |
Michigan GO | 5.500% | 11/1/25 | 595 | 710 |
Michigan Housing Development Authority | ||||
Single Family Mortgage Revenue VRDO | 0.150% | 1/7/13 | 3,100 | 3,100 |
Michigan Trunk Line Revenue | 5.000% | 11/1/21 | 500 | 602 |
Oakland University of Michigan Revenue VRDO | 0.130% | 1/7/13 LOC | 3,900 | 3,900 |
Wayne County MI Airport Authority Revenue | ||||
(Detroit Metropolitan Wayne County Airport) | 5.000% | 12/1/16 | 500 | 570 |
14,349 | ||||
Minnesota (0.7%) | ||||
Chisago Lakes MN Independent School | ||||
District GO | 5.000% | 2/1/15 (4) | 500 | 545 |
Minnesota General Fund Revenue | 5.000% | 3/1/28 | 500 | 606 |
Minnesota GO | 5.000% | 6/1/13 | 65 | 66 |
Minnesota GO | 5.000% | 6/1/13 (ETM) | 435 | 444 |
Minnesota GO | 5.000% | 11/1/14 | 500 | 543 |
Minnesota GO | 5.000% | 8/1/15 | 500 | 558 |
Minnesota GO | 5.000% | 10/1/17 | 500 | 598 |
Minnesota GO | 5.000% | 8/1/19 | 500 | 625 |
Minnesota GO | 5.000% | 8/1/21 | 500 | 614 |
Minnesota Public Facilities Authority Revenue | ||||
(State Revolving Fund) | 5.000% | 3/1/15 | 500 | 549 |
Southern Minnesota Municipal Power Agency | ||||
Power Supply System Revenue | 5.250% | 1/1/30 | 500 | 567 |
University of Minnesota Revenue | 5.000% | 8/1/19 | 500 | 615 |
University of Minnesota Revenue | 5.250% | 12/1/29 | 500 | 610 |
6,940 | ||||
Mississippi (0.1%) | ||||
DeSoto County MS School District GO | 5.000% | 5/1/19 | 370 | 456 |
Mississippi GO | 5.500% | 12/1/18 | 750 | 937 |
1,393 | ||||
Missouri (0.3%) | ||||
Curators of the University of Missouri System | ||||
Facilities Revenue | 5.000% | 11/1/15 (Prere.) | 130 | 146 |
Curators of the University of Missouri System | ||||
Facilities Revenue | 5.000% | 11/1/26 | 370 | 409 |
Missouri Highways & Transportation Commission | ||||
Road Revenue | 5.000% | 5/1/15 | 300 | 332 |
Missouri Highways & Transportation Commission | ||||
Road Revenue | 5.000% | 5/1/17 | 500 | 589 |
Missouri Highways & Transportation Commission | ||||
Road Revenue | 5.000% | 2/1/23 | 600 | 777 |
31
Tax-Managed Balanced Fund | ||||
Face | Market | |||
Maturity | Amount | Value | ||
Coupon | Date | ($000) | ($000) | |
Missouri Highways & Transportation Commission | ||||
Road Revenue | 5.000% | 5/1/23 | 500 | 597 |
Missouri Highways & Transportation Commission | ||||
Road Revenue | 5.250% | 5/1/23 | 350 | 409 |
3,259 | ||||
Nebraska (0.2%) | ||||
Lincoln County NE Hospital Authority No. 1 | ||||
Hospital Revenue (Great Plains Regional | ||||
Medical Center Project) | 5.000% | 11/1/23 | 750 | 855 |
Lincoln NE Electric System Revenue | 5.000% | 9/1/25 | 400 | 496 |
Municipal Energy Agency of Nebraska Power | ||||
Supply System Revenue | 5.000% | 4/1/31 | 345 | 403 |
Omaha NE Public Power District Electric Revenue | 4.000% | 2/1/16 | 350 | 386 |
2,140 | ||||
Nevada (0.4%) | ||||
Clark County NV GO | 5.000% | 12/1/29 | 500 | 570 |
Clark County NV Highway Improvement Motor | ||||
Vehicle Fuel Tax Revenue | 5.000% | 7/1/27 | 500 | 572 |
Clark County NV Passenger Facility Charge | ||||
Revenue (Las Vegas McCarran International | ||||
Airport) | 5.000% | 7/1/15 | 155 | 170 |
Clark County NV Passenger Facility Charge | ||||
Revenue (Las Vegas McCarran International | ||||
Airport) | 4.500% | 7/1/20 | 455 | 518 |
Clark County NV School District GO | 5.000% | 6/15/18 | 1,690 | 1,988 |
Nevada Capital Improvement & Cultural | ||||
Affairs GO | 5.000% | 12/1/26 (3) | 500 | 570 |
4,388 | ||||
New Hampshire (0.1%) | ||||
Manchester NH General Airport Revenue | 5.000% | 1/1/17 | 500 | 555 |
New Hampshire Municipal Bond Bank Revenue | 5.000% | 8/15/16 | 115 | 132 |
687 | ||||
New Jersey (3.5%) | ||||
Garden State Preservation Trust New Jersey | ||||
Revenue (Open Space & Farmland Preservation) | 5.250% | 11/1/13 (Prere.) | 875 | 911 |
Garden State Preservation Trust New Jersey | ||||
Revenue (Open Space & Farmland Preservation) | 0.000% | 11/1/21 (4) | 500 | 405 |
Garden State Preservation Trust New Jersey | ||||
Revenue (Open Space & Farmland Preservation) | 0.000% | 11/1/22 (4) | 500 | 387 |
Jersey City NJ GO | 5.000% | 3/1/21 | 480 | 573 |
Morris County NJ Improvement Authority School | ||||
District Revenue (Morris Hills Regional | ||||
District Project) | 5.000% | 10/1/23 | 495 | 636 |
New Jersey Economic Development Authority | ||||
Revenue (Bayonne/IMTT Project) VRDO | 0.120% | 1/2/13 LOC | 900 | 900 |
New Jersey Economic Development Authority | ||||
Revenue (Bayonne/IMTT Project) VRDO | 0.120% | 1/2/13 LOC | 300 | 300 |
New Jersey Economic Development Authority | ||||
Revenue (Bayonne/IMTT Project) VRDO | 0.120% | 1/2/13 LOC | 1,200 | 1,200 |
New Jersey Economic Development Authority | ||||
Revenue (Cigarette Tax) | 5.750% | 6/15/14 (Prere.) | 500 | 539 |
New Jersey Economic Development Authority | ||||
Revenue (Cigarette Tax) | 5.000% | 6/15/23 | 500 | 582 |
New Jersey Economic Development Authority | ||||
Revenue (Motor Vehicle Surcharges) | 5.250% | 7/1/26 (14) | 500 | 620 |
32
Tax-Managed Balanced Fund | ||||
Face | Market | |||
Maturity | Amount | Value | ||
Coupon | Date | ($000) | ($000) | |
New Jersey Economic Development Authority | ||||
Revenue (School Facilities Construction) | 5.000% | 9/1/13 (Prere.) | 500 | 515 |
New Jersey Economic Development Authority | ||||
Revenue (School Facilities Construction) | 5.000% | 9/1/13 (Prere.) | 500 | 515 |
New Jersey Economic Development Authority | ||||
Revenue (School Facilities Construction) | 5.000% | 9/1/14 | 500 | 536 |
New Jersey Economic Development Authority | ||||
Revenue (School Facilities Construction) | 5.250% | 12/15/15 (14) | 400 | 452 |
New Jersey Economic Development Authority | ||||
Revenue (School Facilities Construction) | 5.000% | 3/1/24 | 500 | 597 |
New Jersey Economic Development Authority | ||||
Revenue (School Facilities Construction) | 5.250% | 9/1/24 | 300 | 357 |
New Jersey Economic Development Authority | ||||
Revenue (School Facilities Construction) | 5.250% | 3/1/26 | 500 | 537 |
New Jersey Economic Development Authority | ||||
Revenue (School Facilities Construction) PUT | 5.000% | 9/1/14 (4) | 500 | 534 |
New Jersey Economic Development Authority | ||||
Revenue (Trustees of the Lawrenceville | ||||
School Project) VRD | 0.000% | 1/3/13 | 500 | 500 |
New Jersey Economic Development Authority | ||||
Revenue(New Jersey Transit Light Rail | ||||
Transit System Project) | 5.000% | 5/1/17 | 500 | 575 |
New Jersey Economic Development Authority | ||||
Transportation Project Sublease Revenue | ||||
(New Jersey Transit Corp. Light Rail Transit | ||||
System Project) | 5.000% | 5/1/18 | 500 | 589 |
New Jersey Economic Development Authority | ||||
Transportation Project Sublease Revenue | ||||
(New Jersey Transit Corp. Light Rail Transit | ||||
System Project) | 5.000% | 5/1/19 | 500 | 601 |
New Jersey Equipment Lease Purchase COP | 5.000% | 6/15/16 | 425 | 478 |
New Jersey Equipment Lease Purchase COP | 5.000% | 6/15/17 | 295 | 338 |
New Jersey Equipment Lease Purchase COP | 5.000% | 6/15/18 | 530 | 618 |
New Jersey Equipment Lease Purchase COP | 5.000% | 6/15/19 | 500 | 581 |
New Jersey GO | 5.250% | 7/15/15 (2) | 500 | 559 |
New Jersey GO | 5.000% | 8/15/15 | 790 | 881 |
New Jersey GO | 5.250% | 7/1/16 (14) | 500 | 577 |
New Jersey GO | 5.250% | 7/15/18 (2) | 500 | 608 |
New Jersey Health Care Facilities Financing | ||||
Authority Revenue (Hackensack University | ||||
Medical Center) | 5.000% | 1/1/19 | 500 | 568 |
New Jersey Health Care Facilities Financing | ||||
Authority Revenue (Virtua Health) VRDO | 0.130% | 1/2/13 LOC | 2,800 | 2,800 |
New Jersey Health Care Facilities Financing | ||||
Authority Revenue (Virtua Health) VRDO | 0.130% | 1/2/13 LOC | 200 | 200 |
New Jersey Higher Education Assistance | ||||
Authority Student Loan Revenue | 5.000% | 12/1/16 | 245 | 276 |
New Jersey Higher Education Assistance | ||||
Authority Student Loan Revenue | 5.250% | 12/1/28 | 395 | 440 |
New Jersey Sports & Exposition Authority | ||||
Revenue | 5.000% | 9/1/16 | 200 | 228 |
New Jersey Transportation Corp. COP | 5.500% | 9/15/15 (2) | 200 | 223 |
New Jersey Transportation Corp. COP | 5.000% | 9/15/19 (4) | 500 | 553 |
New Jersey Transportation Trust Fund | ||||
Authority Transportation System Revenue | 5.250% | 6/15/14 (Prere.) | 500 | 536 |
33
Tax-Managed Balanced Fund | ||||
Face | Market | |||
Maturity | Amount | Value | ||
Coupon | Date | ($000) | ($000) | |
New Jersey Transportation Trust Fund Authority | ||||
Transportation System Revenue | 5.250% | 12/15/14 (14) | 500 | 546 |
New Jersey Transportation Trust Fund Authority | ||||
Transportation System Revenue | 5.250% | 12/15/15 (2) | 170 | 192 |
New Jersey Transportation Trust Fund Authority | ||||
Transportation System Revenue | 5.500% | 12/15/15 (2) | 230 | 262 |
New Jersey Transportation Trust Fund Authority | ||||
Transportation System Revenue | 5.500% | 12/15/15 (14) | 200 | 228 |
New Jersey Transportation Trust Fund Authority | ||||
Transportation System Revenue | 5.000% | 12/15/16 | 275 | 317 |
New Jersey Transportation Trust Fund Authority | ||||
Transportation System Revenue | 5.500% | 12/15/16 (14) | 100 | 117 |
New Jersey Transportation Trust Fund Authority | ||||
Transportation System Revenue | 5.500% | 12/15/17 (4) | 150 | 180 |
New Jersey Transportation Trust Fund Authority | ||||
Transportation System Revenue | 5.500% | 12/15/20 (3) | 2,500 | 3,134 |
New Jersey Transportation Trust Fund Authority | ||||
Transportation System Revenue | 0.000% | 12/15/26 (2) | 2,000 | 1,108 |
New Jersey Transportation Trust Fund Authority | ||||
Transportation System Revenue | 5.500% | 6/15/31 | 500 | 596 |
New Jersey Turnpike Authority Revenue | 5.000% | 1/1/20 | 100 | 118 |
New Jersey Turnpike Authority Revenue | 5.000% | 1/1/22 | 500 | 575 |
New Jersey Turnpike Authority Revenue | 5.500% | 1/1/25 (2) | 500 | 646 |
Newark NJ GO | 5.000% | 10/1/19 | 500 | 595 |
Rutgers State University New Jersey | ||||
Revenue VRDO | 0.120% | 1/2/13 | 850 | 850 |
South Jersey Transportation Authority | ||||
New Jersey Transportation System Revenue | 5.000% | 11/1/25 | 500 | 587 |
Tobacco Settlement Financing Corp. | ||||
New Jersey Revenue | 5.000% | 6/1/18 | 500 | 567 |
Union County NJ Pollution Control Financing | ||||
Authority Revenue (Exxon Project) VRDO | 0.070% | 1/2/13 | 200 | 200 |
Union County NJ Pollution Control Financing | ||||
Authority Revenue (Exxon Project) VRDO | 0.000% | 1/3/13 | 200 | 200 |
West Deptford Township NJ GO | 5.000% | 7/1/27 (4) | 635 | 715 |
35,558 | ||||
New Mexico (0.2%) | ||||
New Mexico Educational Assistance | ||||
Foundation Revenue | 5.000% | 12/1/19 | 500 | 597 |
New Mexico Finance Authority Transportation | ||||
Revenue | 5.000% | 6/15/13 (2) | 500 | 511 |
New Mexico Finance Authority Transportation | ||||
Revenue | 5.000% | 6/15/23 | 500 | 603 |
1,711 | ||||
New York (8.7%) | ||||
Erie County NY Industrial Development Agency | ||||
School Facility Revenue (Buffalo City School | ||||
District Project) | 5.000% | 5/1/15 | 500 | 549 |
Erie County NY Industrial Development Agency | ||||
School Facility Revenue (Buffalo City School | ||||
District Project) | 5.000% | 5/1/18 | 500 | 592 |
Erie County NY Industrial Development Agency | ||||
School Facility Revenue (Buffalo City School | ||||
District Project) | 5.000% | 5/1/19 | 500 | 604 |
34
Tax-Managed Balanced Fund | ||||
Face | Market | |||
Maturity | Amount | Value | ||
Coupon | Date | ($000) | ($000) | |
Erie County NY Industrial Development Agency | ||||
School Facility Revenue (Buffalo City School | ||||
District Project) | 5.250% | 5/1/31 | 500 | 578 |
Long Island NY Power Authority Electric System | ||||
Revenue | 5.000% | 5/1/14 | 410 | 434 |
Long Island NY Power Authority Electric System | ||||
Revenue | 5.000% | 12/1/17 | 630 | 721 |
Long Island NY Power Authority Electric System | ||||
Revenue | 5.000% | 5/1/19 (14) | 500 | 565 |
Long Island NY Power Authority Electric System | ||||
Revenue | 5.000% | 12/1/21 (14) | 500 | 564 |
Long Island NY Power Authority Electric System | ||||
Revenue | 5.000% | 4/1/23 | 500 | 589 |
New York City NY GO | 5.500% | 6/1/13 (Prere.) | 500 | 511 |
New York City NY GO | 5.250% | 8/1/13 | 500 | 514 |
New York City NY GO | 5.750% | 8/1/13 | 55 | 55 |
New York City NY GO | 5.000% | 1/1/14 | 500 | 523 |
New York City NY GO | 5.250% | 9/1/14 | 500 | 539 |
New York City NY GO | 5.000% | 11/1/14 (Prere.) | 90 | 98 |
New York City NY GO | 5.000% | 2/1/16 | 105 | 118 |
New York City NY GO | 5.000% | 8/1/16 | 500 | 573 |
New York City NY GO | 5.000% | 2/1/17 | 500 | 579 |
New York City NY GO | 5.000% | 9/1/17 | 500 | 557 |
New York City NY GO | 5.000% | 2/1/18 | 500 | 582 |
New York City NY GO | 5.000% | 8/1/19 | 500 | 585 |
New York City NY GO | 5.000% | 10/1/22 | 500 | 614 |
New York City NY GO | 5.000% | 8/1/23 (14) | 500 | 555 |
New York City NY GO | 5.000% | 8/1/23 | 380 | 469 |
New York City NY GO | 5.000% | 11/1/23 | 215 | 232 |
New York City NY GO | 5.250% | 8/15/24 | 500 | 600 |
New York City NY GO | 5.000% | 8/1/25 | 905 | 996 |
New York City NY GO | 5.000% | 8/1/26 | 500 | 604 |
New York City NY GO | 5.000% | 8/15/26 | 475 | 555 |
New York City NY GO | 5.000% | 5/15/28 | 480 | 568 |
New York City NY GO | 5.000% | 8/1/28 | 400 | 467 |
New York City NY GO | 5.000% | 8/1/28 | 500 | 556 |
New York City NY GO | 5.500% | 11/15/28 | 300 | 360 |
New York City NY GO | 5.625% | 4/1/29 | 840 | 1,022 |
New York City NY GO | 5.000% | 5/15/29 | 500 | 591 |
New York City NY GO | 5.000% | 8/1/31 | 365 | 427 |
New York City NY GO VRDO | 0.100% | 1/2/13 | 100 | 100 |
New York City NY GO VRDO | 0.100% | 1/2/13 LOC | 100 | 100 |
New York City NY GO VRDO | 0.000% | 1/3/13 LOC | 500 | 500 |
New York City NY GO VRDO | 0.130% | 1/7/13 LOC | 1,300 | 1,300 |
New York City NY Health & Hospital Corp. | ||||
Revenue (Health System) | 5.000% | 2/15/30 | 500 | 564 |
New York City NY Municipal Water Finance | ||||
Authority Water & Sewer System Revenue | 5.000% | 6/15/15 | 250 | 277 |
New York City NY Municipal Water Finance | ||||
Authority Water & Sewer System Revenue | 0.000% | 6/15/18 | 750 | 704 |
New York City NY Municipal Water Finance | ||||
Authority Water & Sewer System Revenue | 5.000% | 6/15/27 | 500 | 597 |
New York City NY Municipal Water Finance | ||||
Authority Water & Sewer System Revenue | 5.000% | 6/15/29 | 500 | 555 |
New York City NY Municipal Water Finance | ||||
Authority Water & Sewer System Revenue | 4.750% | 6/15/30 | 255 | 285 |
35
Tax-Managed Balanced Fund | ||||
Face | Market | |||
Maturity | Amount | Value | ||
Coupon | Date | ($000) | ($000) | |
New York City NY Municipal Water Finance | ||||
Authority Water & Sewer System Revenue | 5.000% | 6/15/30 | 500 | 586 |
New York City NY Municipal Water Finance | ||||
Authority Water & Sewer System Revenue | 5.000% | 6/15/31 | 500 | 595 |
New York City NY Municipal Water Finance | ||||
Authority Water & Sewer System Revenue | ||||
VRDO | 0.070% | 1/2/13 | 2,020 | 2,020 |
New York City NY Municipal Water Finance | ||||
Authority Water & Sewer System Revenue | ||||
VRDO | 0.100% | 1/2/13 | 200 | 200 |
New York City NY Municipal Water Finance | ||||
Authority Water & Sewer System Revenue | ||||
VRDO | 0.110% | 1/2/13 | 900 | 900 |
New York City NY Municipal Water Finance | ||||
Authority Water & Sewer System Revenue | ||||
VRDO | 0.110% | 1/2/13 | 1,000 | 1,000 |
New York City NY Sales Tax Asset Receivable | ||||
Corp. Revenue | 5.000% | 10/15/24 (14) | 500 | 538 |
New York City NY Sales Tax Asset Receivable | ||||
Corp. Revenue | 5.000% | 10/15/26 (14) | 500 | 535 |
New York City NY Transitional Finance Authority | ||||
Building Aid Revenue | 5.000% | 7/15/24 | 500 | 608 |
New York City NY Transitional Finance Authority | ||||
Building Aid Revenue | 5.250% | 1/15/25 | 500 | 604 |
New York City NY Transitional Finance Authority | ||||
Building Aid Revenue | 5.250% | 1/15/26 | 500 | 586 |
New York City NY Transitional Finance Authority | ||||
Building Aid Revenue | 5.125% | 1/15/29 | 1,070 | 1,243 |
New York City NY Transitional Finance Authority | ||||
Building Aid Revenue | 5.000% | 7/15/32 | 250 | 294 |
New York City NY Transitional Finance Authority | ||||
Future Tax Revenue | 5.250% | 2/1/13 (Prere.) | 500 | 502 |
New York City NY Transitional Finance Authority | ||||
Future Tax Revenue | 5.375% | 2/1/13 | 2,000 | 2,009 |
New York City NY Transitional Finance Authority | ||||
Future Tax Revenue | 5.000% | 8/1/16 (Prere.) | 245 | 284 |
New York City NY Transitional Finance Authority | ||||
Future Tax Revenue | 5.000% | 11/1/18 | 500 | 586 |
New York City NY Transitional Finance Authority | ||||
Future Tax Revenue | 5.000% | 8/1/22 | 35 | 40 |
New York City NY Transitional Finance Authority | ||||
Future Tax Revenue | 5.000% | 11/1/23 | 500 | 580 |
New York City NY Transitional Finance Authority | ||||
Future Tax Revenue | 5.000% | 11/1/24 | 500 | 578 |
New York City NY Transitional Finance Authority | ||||
Future Tax Revenue | 5.000% | 11/1/25 | 500 | 578 |
New York City NY Transitional Finance Authority | ||||
Future Tax Revenue | 5.000% | 11/1/25 | 400 | 488 |
New York City NY Transitional Finance Authority | ||||
Future Tax Revenue | 5.250% | 2/1/30 | 500 | 600 |
New York City NY Transitional Finance Authority | ||||
Future Tax Revenue | 5.000% | 2/1/31 | 500 | 587 |
New York City NY Transitional Finance Authority | ||||
Future Tax Revenue | 5.000% | 5/1/31 | 300 | 359 |
New York City NY Transitional Finance Authority | ||||
Future Tax Revenue | 5.000% | 11/1/31 | 500 | 603 |
36
Tax-Managed Balanced Fund | ||||
Face | Market | |||
Maturity | Amount | Value | ||
Coupon | Date | ($000) | ($000) | |
New York City NY Transitional Finance Authority | ||||
Future Tax Revenue VRDO | 0.120% | 1/7/13 | 3,100 | 3,100 |
New York City NY Trust for Cultural Resources | ||||
Revenue (American Museum of Natural History) | ||||
VRDO | 0.140% | 1/2/13 | 100 | 100 |
New York GO | 4.500% | 2/1/17 | 500 | 575 |
New York GO | 4.500% | 2/1/18 | 500 | 588 |
New York GO | 4.500% | 2/1/19 | 500 | 598 |
New York GO | 5.000% | 2/15/30 | 315 | 374 |
New York Liberty Development Corp. Revenue | 5.000% | 11/15/31 | 500 | 574 |
New York Metropolitan Transportation Authority | ||||
Revenue | 5.250% | 11/15/21 (3) | 300 | 371 |
New York Metropolitan Transportation Authority | ||||
Revenue | 5.000% | 11/15/23 | 500 | 571 |
New York Metropolitan Transportation Authority | ||||
Revenue | 5.000% | 11/15/30 | 500 | 576 |
New York Metropolitan Transportation Authority | ||||
Revenue | 5.000% | 11/15/30 | 500 | 573 |
New York Metropolitan Transportation Authority | ||||
Revenue | 5.250% | 11/15/30 | 500 | 578 |
New York Metropolitan Transportation Authority | ||||
Revenue (Dedicated Petroleum Tax) | 5.250% | 11/15/24 | 600 | 725 |
New York Metropolitan Transportation Authority | ||||
Revenue (Service Contract) | 5.500% | 7/1/15 | 500 | 560 |
New York Metropolitan Transportation Authority | ||||
Revenue (Service Contract) | 5.750% | 1/1/17 (14) | 560 | 660 |
New York Metropolitan Transportation Authority | ||||
Revenue (Service Contract) | 5.750% | 1/1/17 | 210 | 247 |
New York Metropolitan Transportation Authority | ||||
Revenue (Transit Revenue) | 5.500% | 11/15/14 (14) | 500 | 546 |
New York Metropolitan Transportation Authority | ||||
Revenue (Transit Revenue) | 5.500% | 11/15/18 | 600 | 677 |
New York Metropolitan Transportation Authority | ||||
Revenue (Transit Revenue) | 4.750% | 11/15/28 (14) | 455 | 492 |
New York State Dormitory Authority Lease | ||||
Revenue (City of New York Court Facilities) | 5.500% | 5/15/24 (2) | 500 | 637 |
New York State Dormitory Authority Lease | ||||
Revenue (City of New York Court Facilities) | 5.500% | 5/15/27 (2) | 500 | 651 |
New York State Dormitory Authority Lease | ||||
Revenue (Mental Health Services Facilities) | 5.000% | 8/15/21 | 500 | 609 |
New York State Dormitory Authority Revenue | ||||
(City University System) | 5.000% | 7/1/24 | 400 | 478 |
New York State Dormitory Authority Revenue | ||||
(Fordham University) | 5.000% | 7/1/25 (4) | 250 | 296 |
New York State Dormitory Authority Revenue | ||||
(Memorial Sloan-Kettering Cancer Center) | 5.000% | 7/1/30 | 500 | 552 |
New York State Dormitory Authority Revenue | ||||
(Mental Health Services Facilities Improvement) | 5.000% | 8/15/15 | 100 | 112 |
New York State Dormitory Authority Revenue | ||||
(Mount Sinai Hospital Obligated Group) | 5.000% | 7/1/22 | 595 | 692 |
New York State Dormitory Authority Revenue | ||||
(Mount Sinai Hospital Obligated Group) | 5.000% | 7/1/23 | 500 | 574 |
New York State Dormitory Authority Revenue | ||||
(Mount Sinai School of Medicine of New York | ||||
University) | 5.000% | 7/1/18 | 325 | 377 |
37
Tax-Managed Balanced Fund | ||||
Face | Market | |||
Maturity | Amount | Value | ||
Coupon | Date | ($000) | ($000) | |
New York State Dormitory Authority Revenue | ||||
(Mount Sinai School of Medicine of New York | ||||
University) | 5.000% | 7/1/24 (14) | 500 | 541 |
New York State Dormitory Authority Revenue | ||||
(New York University) | 6.000% | 7/1/19 (14) | 500 | 642 |
New York State Dormitory Authority Revenue | ||||
(North Shore - Long Island Jewish Obligated | ||||
Group) | 5.000% | 5/1/26 | 500 | 570 |
New York State Dormitory Authority Revenue | ||||
(Personal Income Tax) | 5.000% | 2/15/15 | 165 | 181 |
New York State Dormitory Authority Revenue | ||||
(Personal Income Tax) | 5.000% | 3/15/15 | 600 | 660 |
New York State Dormitory Authority Revenue | ||||
(Personal Income Tax) | 5.000% | 2/15/17 | 500 | 582 |
New York State Dormitory Authority Revenue | ||||
(Personal Income Tax) | 5.000% | 2/15/24 | 615 | 753 |
New York State Dormitory Authority Revenue | ||||
(Personal Income Tax) | 5.000% | 12/15/26 | 500 | 613 |
New York State Dormitory Authority Revenue | ||||
(Personal Income Tax) | 5.000% | 3/15/28 | 500 | 576 |
New York State Dormitory Authority Revenue | ||||
(Personal Income Tax) | 5.000% | 3/15/32 | 500 | 589 |
New York State Dormitory Authority Revenue | ||||
(School Districts Financing Program) | 5.000% | 10/1/20 | 500 | 605 |
New York State Dormitory Authority Revenue | ||||
(School Districts Financing Program) | 5.000% | 10/1/21 (4) | 390 | 474 |
New York State Dormitory Authority Revenue | ||||
(Service Contract) | 5.000% | 7/1/16 | 275 | 313 |
New York State Dormitory Authority Revenue | ||||
(Service Contract) | 5.000% | 7/1/22 | 500 | 580 |
New York State Dormitory Authority Revenue | ||||
(State University Educational Facilities) | 5.000% | 5/15/20 | 500 | 615 |
New York State Dormitory Authority Revenue | ||||
(The New School) | 5.250% | 7/1/30 | 500 | 568 |
New York State Environmental Facilities Corp. | ||||
Revenue (State Clean Water & Drinking Water | ||||
Revolving Funds) | 5.000% | 6/15/22 | 500 | 583 |
New York State Environmental Facilities Corp. | ||||
Revenue (State Clean Water & Drinking Water | ||||
Revolving Funds) | 5.000% | 6/15/24 | 365 | 443 |
New York State Environmental Facilities Corp. | ||||
Revenue (State Clean Water & Drinking Water | ||||
Revolving Funds) | 5.000% | 6/15/25 | 500 | 621 |
New York State Local Government Assistance | ||||
Corp. Revenue | 5.000% | 4/1/21 | 500 | 621 |
New York State Thruway Authority Revenue | 5.000% | 1/1/15 (14) | 550 | 597 |
New York State Thruway Authority Revenue | 5.000% | 1/1/20 (14) | 500 | 583 |
New York State Thruway Authority Revenue | 5.000% | 1/1/21 (14) | 490 | 570 |
New York State Thruway Authority Revenue | 5.000% | 1/1/30 | 500 | 587 |
New York State Thruway Authority Revenue | ||||
(Highway & Bridge Trust Fund) | 5.000% | 4/1/13 | 500 | 506 |
New York State Thruway Authority Revenue | ||||
(Highway & Bridge Trust Fund) | 5.250% | 4/1/13 (2) | 500 | 506 |
New York State Thruway Authority Revenue | ||||
(Highway & Bridge Trust Fund) | 5.000% | 4/1/18 (2) | 500 | 560 |
38
Tax-Managed Balanced Fund | ||||
Face | Market | |||
Maturity | Amount | Value | ||
Coupon | Date | ($000) | ($000) | |
New York State Thruway Authority Revenue | ||||
(Highway & Bridge Trust Fund) | 5.000% | 4/1/24 | 500 | 594 |
New York State Thruway Authority Revenue | ||||
(Highway & Bridge Trust Fund) | 5.000% | 4/1/25 (2) | 500 | 546 |
New York State Thruway Authority Revenue | ||||
(Highway & Bridge Trust Fund) | 5.000% | 4/1/26 (2) | 500 | 573 |
New York State Thruway Authority Revenue | ||||
(Personal Income Tax) | 5.000% | 3/15/16 | 225 | 256 |
New York State Thruway Authority Revenue | ||||
(Personal Income Tax) | 5.000% | 3/15/19 | 500 | 610 |
New York State Thruway Authority Revenue | ||||
(Personal Income Tax) | 5.000% | 3/15/20 | 500 | 616 |
New York State Thruway Authority Revenue | ||||
(Personal Income Tax) | 5.000% | 3/15/22 (4) | 385 | 422 |
New York State Thruway Authority Revenue | ||||
(Personal Income Tax) | 5.000% | 3/15/25 | 500 | 610 |
New York State Urban Development Corp. | ||||
Revenue | 5.000% | 12/15/14 | 100 | 109 |
New York State Urban Development Corp. | ||||
Revenue | 5.000% | 1/1/15 | 500 | 544 |
New York State Urban Development Corp. | ||||
Revenue | 5.000% | 12/15/15 | 400 | 452 |
New York State Urban Development Corp. | ||||
Revenue | 5.000% | 12/15/18 | 500 | 608 |
New York State Urban Development Corp. | ||||
Revenue (Personal Income Tax) | 5.000% | 12/15/15 | 275 | 311 |
New York State Urban Development Corp. | ||||
Revenue (Personal Income Tax) | 5.000% | 12/15/18 | 600 | 730 |
New York State Urban Development Corp. | ||||
Revenue (Personal Income Tax) | 5.500% | 3/15/22 (14) | 530 | 688 |
New York State Urban Development Corp. | ||||
Revenue (Personal Income Tax) | 5.000% | 12/15/25 | 1,500 | 1,724 |
New York State Urban Development Corp. | ||||
Revenue (Service Contract) | 5.000% | 1/1/18 | 540 | 638 |
Port Authority of New York & New Jersey | ||||
Revenue | 5.000% | 7/15/26 | 500 | 569 |
Triborough Bridge & Tunnel Authority New York | ||||
Revenue | 5.250% | 11/15/15 | 500 | 565 |
Triborough Bridge & Tunnel Authority New York | ||||
Revenue | 5.500% | 11/15/19 (14) | 500 | 630 |
Triborough Bridge & Tunnel Authority New York | ||||
Revenue | 5.500% | 11/15/21 (14) | 500 | 635 |
Triborough Bridge & Tunnel Authority New York | ||||
Revenue | 5.000% | 11/15/25 | 500 | 572 |
Triborough Bridge & Tunnel Authority New York | ||||
Revenue VRDO | 0.100% | 1/2/13 LOC | 400 | 400 |
Westchester County NY GO | 5.000% | 7/1/20 | 500 | 635 |
Westchester County NY Health Care Corp. | ||||
Revenue | 5.000% | 11/1/30 | 500 | 553 |
88,623 | ||||
North Carolina (1.5%) | ||||
Charlotte NC Water & Sewer System Revenue | 5.000% | 12/1/20 | 235 | 298 |
Charlotte-Mecklenburg NC Hospital Authority | ||||
Health Care System Revenue (Carolinas | ||||
HealthCare System) VRDO | 0.150% | 1/7/13 | 1,250 | 1,250 |
Guilford County NC GO | 5.000% | 3/1/18 | 500 | 605 |
39
Tax-Managed Balanced Fund | ||||
Face | Market | |||
Maturity | Amount | Value | ||
Coupon | Date | ($000) | ($000) | |
Mecklenburg County NC GO | 5.000% | 3/1/17 | 500 | 588 |
Mecklenburg County NC Public Facilities Corp. | ||||
Revenue (Annual Appropriation) | 5.000% | 3/1/26 | 500 | 582 |
North Carolina Capital Improvement Revenue | 5.000% | 5/1/19 | 555 | 681 |
North Carolina Capital Improvement Revenue | 5.000% | 5/1/29 | 500 | 587 |
North Carolina Eastern Municipal Power Agency | ||||
Power Systems Revenue | 5.125% | 1/1/13 (Prere.) | 2,400 | 2,400 |
North Carolina Eastern Municipal Power Agency | ||||
Power Systems Revenue | 6.000% | 1/1/18 (2) | 475 | 578 |
North Carolina Eastern Municipal Power Agency | ||||
Power Systems Revenue | 5.000% | 1/1/26 | 500 | 570 |
North Carolina GO | 5.000% | 3/1/16 | 500 | 570 |
North Carolina GO | 5.000% | 3/1/18 | 500 | 599 |
North Carolina GO | 5.000% | 3/1/20 | 275 | 347 |
North Carolina GO | 5.000% | 5/1/22 | 250 | 323 |
North Carolina Infrastructure Financial Corp. | ||||
Capital Improvements COP | 5.000% | 2/1/21 (4) | 2,000 | 2,311 |
North Carolina Medical Care Commission Hospital | ||||
Revenue (Southeastern Regional Medical Center) | 5.000% | 6/1/24 | 600 | 698 |
North Carolina Municipal Power Agency Revenue | 5.000% | 1/1/30 | 500 | 565 |
Orange County NC Public Facilities Co. Revenue | 5.000% | 10/1/24 | 500 | 609 |
Wake County NC GO | 5.000% | 2/1/18 | 350 | 423 |
Wake County NC GO | 5.000% | 3/1/22 | 400 | 516 |
Wake County NC Public Improvement GO | 5.000% | 3/1/16 | 100 | 114 |
15,214 | ||||
Ohio (2.3%) | ||||
American Municipal Power Ohio Inc. Revenue | ||||
(Fremont Energy Center Project) | 5.250% | 2/15/27 | 570 | 674 |
American Municipal Power Ohio Inc. Revenue | ||||
(Hydroelectric Projects) | 5.250% | 2/15/18 | 500 | 580 |
Butler County OH Hospital Facilities Revenue | ||||
(Kettering Health Network) | 5.250% | 4/1/31 | 500 | 552 |
Cincinnati OH City School District GO | 5.250% | 12/1/26 (14) | 500 | 664 |
Cleveland OH Airport System Revenue | 5.000% | 1/1/31 (4) | 500 | 534 |
Cleveland OH Public Power System Revenue | 5.000% | 11/15/20 (3) | 500 | 571 |
Columbus OH GO | 5.000% | 7/1/25 | 535 | 667 |
Columbus OH Sewer Revenue VRDO | 0.130% | 1/7/13 | 1,800 | 1,800 |
Hamilton County OH Sales Tax Revenue | 4.500% | 12/1/15 (2) | 350 | 385 |
Kent State University OH Revenue | 5.000% | 5/1/23 (12) | 500 | 593 |
Lucas County OH Hospital Revenue | ||||
(ProMedica Healthcare Obligated Group) | 5.000% | 11/15/26 | 500 | 587 |
Montgomery County OH Revenue | ||||
(Miami Valley Hospital) VRDO | 0.100% | 1/2/13 | 600 | 600 |
Montgomery County OH Revenue | ||||
(Miami Valley Hospital) VRDO | 0.100% | 1/2/13 | 900 | 900 |
Ohio Building Authority Revenue | ||||
(Administration Building Fund) | 5.000% | 10/1/20 | 100 | 125 |
Ohio Conservation Projects GO | 5.000% | 3/1/14 (Prere.) | 1,885 | 1,988 |
Ohio GO | 5.000% | 9/15/19 | 260 | 294 |
Ohio GO | 5.000% | 8/1/23 | 500 | 627 |
Ohio Higher Education GO | 5.000% | 8/1/21 | 500 | 632 |
Ohio Higher Educational Facility Commission | ||||
Revenue (Case Western Reserve University | ||||
Project) | 5.000% | 12/1/22 | 550 | 688 |
40
Tax-Managed Balanced Fund | ||||
Face | Market | |||
Maturity | Amount | Value | ||
Coupon | Date | ($000) | ($000) | |
Ohio Higher Educational Facility Commission | ||||
Revenue (Case Western Reserve University | ||||
Project) VRDO | 0.120% | 1/2/13 LOC | 1,400 | 1,400 |
Ohio Major New State Infrastructure Project | ||||
Revenue | 5.000% | 12/15/14 | 500 | 544 |
Ohio Major New State Infrastructure Project | ||||
Revenue | 5.000% | 12/15/15 | 550 | 619 |
Ohio State University General Receipts Revenue | 5.000% | 12/1/16 (ETM) | 30 | 35 |
Ohio State University General Receipts Revenue | 5.000% | 12/1/16 | 470 | 546 |
Ohio Turnpike Commission Turnpike Revenue | 5.500% | 2/15/15 (3) | 500 | 551 |
Ohio Turnpike Commission Turnpike Revenue | 5.000% | 2/15/31 | 500 | 571 |
Ohio Water Development Authority Pollution | ||||
Control Revenue (FirstEnergy Nuclear | ||||
Generation Corp. Project) VRDO | 0.110% | 1/2/13 LOC | 1,100 | 1,100 |
Ohio Water Development Authority Pollution | ||||
Control Revenue (Water Quality) | 5.250% | 6/1/19 | 435 | 544 |
Ohio Water Development Authority Water | ||||
Pollution Control Loan Fund Revenue | 5.000% | 6/1/14 (Prere.) | 2,365 | 2,522 |
Ohio Water Development Authority Water | ||||
Pollution Control Loan Fund Revenue | 5.000% | 6/1/14 (Prere.) | 635 | 677 |
University of Cincinnati Ohio General Receipts | ||||
Revenue | 5.000% | 6/1/20 | 500 | 615 |
23,185 | ||||
Oklahoma (0.1%) | ||||
Oklahoma City OK GO | 5.000% | 3/1/24 | 525 | 644 |
Oklahoma Turnpike Authority Revenue | 5.000% | 1/1/31 | 300 | 351 |
University of Oklahoma Revenue | 5.000% | 7/1/31 | 475 | 560 |
1,555 | ||||
Oregon (0.2%) | ||||
Oregon Department of Administrative | ||||
Services Lottery Revenue | 5.250% | 4/1/31 | 500 | 606 |
Oregon GO | 5.000% | 5/1/23 | 500 | 631 |
Portland OR Sewer System Revenue | 5.000% | 6/15/22 (4) | 500 | 592 |
1,829 | ||||
Pennsylvania (2.0%) | ||||
Allegheny County PA Higher Education | ||||
Building Authority University Revenue | ||||
(Duquesne University) | 5.500% | 3/1/29 | 325 | 375 |
Allegheny County PA Hospital Development | ||||
Authority Revenue (University of Pittsburgh | ||||
Medical Center) | 5.000% | 5/15/18 | 500 | 590 |
Allegheny County PA Port Authority Revenue | 5.750% | 3/1/29 | 500 | 596 |
Beaver County PA Industrial Development | ||||
Authority Pollution Control Revenue | ||||
(FirstEnergy Generation Project) PUT | 2.500% | 6/1/17 | 500 | 502 |
Central Bradford PA Progress Authority | ||||
Revenue (Guthrie Healthcare System) | 5.500% | 12/1/31 | 500 | 588 |
Commonwealth Financing Authority | ||||
Pennsylvania Revenue | 5.000% | 6/1/25 (14) | 500 | 542 |
Geisinger Health System Authority of | ||||
Pennsylvania Revenue (Penn State | ||||
Geisinger Health System) VRDO | 0.000% | 1/3/13 | 300 | 300 |
Monroeville PA Finance Authority Revenue | ||||
(UPMC Health System) | 5.000% | 2/15/19 | 500 | 596 |
41
Tax-Managed Balanced Fund | ||||
Face | Market | |||
Maturity | Amount | Value | ||
Coupon | Date | ($000) | ($000) | |
Montgomery County PA Higher Education | ||||
& Health Authority Hospital Revenue | ||||
(Abington Memorial Hospital) | 5.000% | 6/1/31 | 500 | 565 |
Pennsylvania Economic Development Financing | ||||
Authority Solid Waste Disposal Revenue | ||||
(Waste Management Inc. Project) PUT | 3.700% | 5/1/15 | 750 | 788 |
Pennsylvania Economic Development Financing | ||||
Authority Unemployment Compensation | ||||
Revenue | 4.000% | 1/1/18 | 325 | 374 |
Pennsylvania Economic Development Financing | ||||
Authority Unemployment Compensation | ||||
Revenue | 5.000% | 7/1/23 | 500 | 542 |
Pennsylvania GO | 5.000% | 9/1/14 (4) | 500 | 538 |
Pennsylvania GO | 5.000% | 5/1/15 | 405 | 447 |
Pennsylvania GO | 5.250% | 7/1/15 | 500 | 558 |
Pennsylvania GO | 5.000% | 3/1/16 | 100 | 114 |
Pennsylvania GO | 5.000% | 7/1/16 | 400 | 460 |
Pennsylvania GO | 5.000% | 7/1/16 | 120 | 138 |
Pennsylvania GO | 5.000% | 11/15/17 | 500 | 596 |
Pennsylvania GO | 5.000% | 7/1/20 | 500 | 626 |
Pennsylvania GO | 5.000% | 11/15/20 | 250 | 315 |
Pennsylvania GO | 5.375% | 7/1/21 | 500 | 648 |
Pennsylvania GO | 5.000% | 8/1/22 | 500 | 586 |
Pennsylvania GO | 5.000% | 1/1/26 | 100 | 111 |
Pennsylvania GO | 5.000% | 4/15/28 | 500 | 585 |
Pennsylvania Higher Educational Facilities | ||||
Authority Revenue (Higher Education System) | 5.000% | 6/15/13 (14) | 110 | 112 |
Pennsylvania Higher Educational Facilities | ||||
Authority Revenue (St. Joseph’s University) | 5.000% | 11/1/24 | 200 | 230 |
Pennsylvania Higher Educational Facilities | ||||
Authority Revenue (Temple University) | 5.000% | 4/1/32 | 500 | 575 |
Pennsylvania Higher Educational Facilities | ||||
Authority Revenue (Trustees of the University | ||||
of Pennsylvania) | 5.000% | 9/1/28 | 500 | 585 |
Pennsylvania State University Revenue | 5.000% | 3/1/25 | 500 | 587 |
Pennsylvania Turnpike Commission Revenue | 5.000% | 12/1/21 | 345 | 401 |
Pennsylvania Turnpike Commission Revenue | 5.000% | 6/1/29 | 1,050 | 1,169 |
Philadelphia PA Airport Revenue | 5.000% | 6/15/15 | 505 | 552 |
Philadelphia PA Hospitals & Higher Education | ||||
Facilities Authority Hospital Revenue | ||||
(Children’s Hospital of Philadelphia Project) | ||||
VRDO | 0.130% | 1/2/13 | 1,600 | 1,600 |
Philadelphia PA Municipal Authority Revenue | 6.375% | 4/1/29 | 500 | 587 |
Philadelphia PA School District GO | 5.000% | 8/1/20 (2) | 500 | 546 |
Philadelphia PA School District GO | 5.250% | 9/1/22 | 500 | 585 |
Philadelphia PA Water & Waste Water Revenue | 5.000% | 8/1/22 (4) | 560 | 664 |
University of Pittsburgh of the Commonwealth | ||||
System of Higher Education Pennsylvania | ||||
Revenue (University Capital Project) | 5.250% | 9/15/24 | 500 | 602 |
20,875 | ||||
Puerto Rico (0.9%) | ||||
Puerto Rico Electric Power Authority Revenue | 5.250% | 7/1/20 | 500 | 531 |
Puerto Rico Electric Power Authority Revenue | 5.000% | 7/1/21 (14) | 500 | 507 |
Puerto Rico Electric Power Authority Revenue | 5.500% | 7/1/21 | 500 | 526 |
Puerto Rico Electric Power Authority Revenue | 5.250% | 7/1/22 (14) | 500 | 528 |
Puerto Rico Electric Power Authority Revenue | 5.000% | 7/1/23 | 500 | 507 |
42
Tax-Managed Balanced Fund | ||||
Face | Market | |||
Maturity | Amount | Value | ||
Coupon | Date | ($000) | ($000) | |
Puerto Rico Electric Power Authority Revenue | 5.250% | 7/1/26 | 500 | 512 |
Puerto Rico GO | 6.000% | 7/1/27 (14) | 500 | 521 |
Puerto Rico Highway & Transportation | ||||
Authority Revenue | 5.250% | 7/1/22 (3) | 500 | 512 |
Puerto Rico Highway & Transportation | ||||
Authority Revenue | 5.500% | 7/1/25 | 500 | 519 |
Puerto Rico Infrastructure Financing Authority | ||||
Special Tax Revenue | 5.500% | 7/1/24 (2) | 500 | 523 |
Puerto Rico Public Buildings Authority | ||||
Government Facilities Revenue | 5.500% | 7/1/18 (2) | 500 | 532 |
Puerto Rico Public Buildings Authority | ||||
Government Facilities Revenue | 5.250% | 7/1/29 | 500 | 501 |
Puerto Rico Public Finance Corp. Revenue | 6.000% | 8/1/26 (ETM) | 1,000 | 1,447 |
Puerto Rico Sales Tax Financing Corp. Revenue | 5.250% | 8/1/27 | 500 | 532 |
Puerto Rico Sales Tax Financing Corp. Revenue | 5.250% | 8/1/30 | 500 | 524 |
8,722 | ||||
South Carolina (0.5%) | ||||
Charleston SC Educational Excellence | ||||
Financing Corp. Revenue (Charleston County | ||||
School District, South Carolina Project) | 5.000% | 12/1/19 | 500 | 575 |
Columbia SC Waterworks & Sewer System | ||||
Revenue | 5.000% | 2/1/27 | 250 | 306 |
Greenville County SC School District GO | 5.000% | 12/1/27 | 500 | 559 |
Piedmont SC Municipal Power Agency Revenue | 0.000% | 1/1/24 (3) | 1,600 | 1,081 |
South Carolina GO | 5.000% | 4/1/20 | 450 | 568 |
South Carolina Jobs Economic Development | ||||
Authority Hospital Revenue (Palmetto Health) | 5.250% | 8/1/24 (4) | 500 | 548 |
South Carolina Public Service Authority Revenue | 5.000% | 1/1/14 (Prere.) | 400 | 419 |
South Carolina Public Service Authority Revenue | 5.000% | 1/1/16 | 130 | 146 |
South Carolina Public Service Authority Revenue | 5.000% | 1/1/29 | 500 | 577 |
South Carolina Transportation Infrastructure | ||||
Revenue | 5.250% | 10/1/13 (2) | 500 | 518 |
5,297 | ||||
Tennessee (0.9%) | ||||
Memphis TN Electric System Revenue | 5.000% | 12/1/17 | 500 | 596 |
Memphis TN GO | 5.000% | 7/1/21 | 500 | 619 |
Memphis TN GO | 5.000% | 5/1/30 | 500 | 591 |
Metropolitan Government of Nashville | ||||
& Davidson County TN GO | 5.000% | 7/1/21 | 500 | 620 |
Metropolitan Government of Nashville | ||||
& Davidson County TN Health & Educational | ||||
Facilities Board Revenue (Blakeford at | ||||
Green Hills) | 5.000% | 7/1/27 | 500 | 544 |
Metropolitan Government of Nashville | ||||
& Davidson County TN Health & Educational | ||||
Facilities Board Revenue (Vanderbilt University) | 5.000% | 10/1/15 | 350 | 392 |
Metropolitan Government of Nashville | ||||
& Davidson County TN Water & Sewer Revenue | 5.000% | 7/1/20 | 500 | 611 |
Shelby County TN GO | 5.000% | 3/1/19 | 500 | 615 |
Shelby County TN GO | 5.000% | 4/1/19 (ETM) | 100 | 124 |
Shelby County TN GO | 5.000% | 4/1/19 | 400 | 493 |
Tennessee Energy Acquisition Corp. Gas Revenue | 5.000% | 9/1/16 | 500 | 553 |
Tennessee Energy Acquisition Corp. Gas Revenue | 5.250% | 9/1/17 | 500 | 563 |
Tennessee Energy Acquisition Corp. Gas Revenue | 5.250% | 9/1/18 | 500 | 570 |
Tennessee Energy Acquisition Corp. Gas Revenue | 5.250% | 9/1/22 | 1,010 | 1,154 |
43
Tax-Managed Balanced Fund | ||||
Face | Market | |||
Maturity | Amount | Value | ||
Coupon | Date | ($000) | ($000) | |
Tennessee Energy Acquisition Corp. Gas Revenue | 5.250% | 9/1/24 | 250 | 284 |
Tennessee GO | 5.000% | 8/1/14 | 500 | 537 |
8,866 | ||||
Texas (3.6%) | ||||
Austin TX Combined Utility System Revenue | 0.000% | 5/15/18 (3) | 1,000 | 894 |
Austin TX Water & Wastewater System Revenue | 5.000% | 11/15/21 | 500 | 632 |
Austin TX Water & Wastewater System Revenue | 5.000% | 11/15/24 | 275 | 327 |
Central Texas Regional Mobility Authority Revenue | 5.750% | 1/1/25 | 500 | 585 |
Clifton TX Higher Education Finance Corp. | ||||
Revenue (Baylor University) | 5.250% | 3/1/29 | 200 | 238 |
Cypress-Fairbanks TX Independent School | ||||
District GO | 5.000% | 2/15/25 | 500 | 608 |
Cypress-Fairbanks TX Independent School | ||||
District Unlimited Tax Schoolhouse GO | 5.000% | 2/15/30 | 500 | 564 |
Dallas TX Area Rapid Transit Sales Tax Revenue | 4.500% | 12/1/27 | 500 | 561 |
Dallas TX Area Rapid Transit Sales Tax Revenue | 5.000% | 12/1/27 | 500 | 617 |
Dallas TX GO | 5.000% | 2/15/15 | 500 | 547 |
Dallas TX Independent School District GO | 5.000% | 8/15/14 | 500 | 537 |
Dallas TX Independent School District GO | 5.000% | 2/15/23 | 485 | 596 |
Dallas TX Waterworks & Sewer System Revenue | 5.000% | 10/1/15 (2) | 485 | 545 |
Dallas TX Waterworks & Sewer System Revenue | 5.000% | 10/1/17 | 200 | 238 |
Dallas TX Waterworks & Sewer System Revenue | 5.000% | 10/1/22 | 330 | 414 |
Dallas-Fort Worth TX International Airport Revenue | 5.000% | 11/1/16 | 515 | 589 |
Garland TX Independent School District GO | 5.000% | 2/15/23 | 470 | 578 |
Harris County TX Flood Control District GO | 5.250% | 10/1/18 | 435 | 537 |
Harris County TX GO | 5.000% | 10/1/23 | 500 | 600 |
Harris County TX GO | 5.000% | 10/1/23 | 300 | 374 |
1 Harris County TX Health Facilities Development | ||||
Corp. Revenue (Sisters of Charity of the | ||||
Incarnate Word) TOB VRDO | 0.130% | 1/2/13 (ETM) | 700 | 700 |
Harris County TX Toll Road Revenue | 5.000% | 8/15/27 | 500 | 586 |
Harris County TX Toll Road Revenue | 5.000% | 8/15/32 | 500 | 589 |
Houston TX GO | 5.000% | 3/1/20 | 500 | 607 |
Houston TX Independent School District GO | 5.000% | 7/15/15 (4) | 500 | 555 |
Houston TX Utility System Revenue | 5.125% | 5/15/28 (14) | 500 | 526 |
Houston TX Utility System Revenue | 5.000% | 11/15/28 (4) | 500 | 580 |
Houston TX Utility System Revenue | 5.250% | 11/15/30 | 500 | 601 |
Lake Travis TX Independent School District GO | 5.000% | 2/15/32 | 500 | 588 |
Lone Star College System Texas GO | 5.000% | 8/15/23 | 250 | 303 |
Lower Colorado River Authority Texas Revenue | 5.750% | 5/15/15 (Prere.) | 415 | 466 |
Lower Colorado River Authority Texas Revenue | 5.750% | 5/15/15 (Prere.) | 40 | 45 |
Lower Colorado River Authority Texas Revenue | 5.750% | 5/15/28 | 45 | 49 |
Lubbock TX GO | 5.000% | 2/15/23 | 500 | 618 |
North East TX Independent School District GO | 5.250% | 2/1/22 | 500 | 642 |
North Texas Tollway Authority System Revenue | 6.000% | 1/1/20 | 500 | 598 |
North Texas Tollway Authority System Revenue | 6.000% | 1/1/25 | 500 | 588 |
North Texas Tollway Authority System Revenue | 6.000% | 1/1/28 | 250 | 292 |
North Texas Tollway Authority System Revenue | 5.500% | 9/1/28 | 500 | 611 |
SA Energy Acquisition Public Facility Corp. | ||||
Texas Gas Supply Revenue | 5.250% | 8/1/17 | 500 | 555 |
SA Energy Acquisition Public Facility Corp. | ||||
Texas Gas Supply Revenue | 5.500% | 8/1/19 | 500 | 574 |
Sam Rayburn TX Municipal Power Agency | ||||
Revenue | 5.000% | 10/1/19 | 210 | 248 |
San Antonio TX Electric & Gas Systems Revenue | 5.000% | 2/1/16 (Prere.) | 905 | 1,025 |
44
Tax-Managed Balanced Fund | ||||
Face | Market | |||
Maturity | Amount | Value | ||
Coupon | Date | ($000) | ($000) | |
San Antonio TX Electric & Gas Systems Revenue | 5.000% | 2/1/19 | 500 | 613 |
San Antonio TX GO | 5.000% | 8/1/20 | 125 | 157 |
San Antonio TX GO | 5.000% | 2/1/24 | 500 | 609 |
Southwest Texas Higher Education Authority Inc. | ||||
Revenue (Southern Methodist University Project) | 5.000% | 10/1/16 (2) | 260 | 300 |
Tarrant County TX Cultural Education Facilities | ||||
Finance Corp. Revenue (CHRISTUS Health) | 6.250% | 7/1/28 (12) | 325 | 389 |
Tarrant County TX Cultural Education Facilities | ||||
Finance Corp. Revenue (Texas Health Resources) | 5.000% | 2/15/26 | 500 | 559 |
Texas A&M University System Revenue Financing | ||||
System Revenue | 5.000% | 5/15/26 | 500 | 592 |
Texas GO | 5.000% | 8/1/31 | 500 | 598 |
Texas Municipal Gas Acquisition & Supply Corp. | ||||
Revenue | 5.250% | 12/15/17 | 500 | 569 |
Texas Municipal Gas Acquisition & Supply Corp. | ||||
Revenue | 5.000% | 12/15/22 | 405 | 451 |
Texas Municipal Gas Acquisition & Supply Corp. | ||||
Revenue | 5.000% | 12/15/23 | 380 | 418 |
Texas Municipal Gas Acquisition & Supply Corp. | ||||
Revenue | 5.250% | 12/15/24 | 455 | 533 |
Texas Municipal Power Agency Revenue | 0.000% | 9/1/15 (14) | 1,500 | 1,449 |
Texas Public Finance Authority Revenue | ||||
(Unemployment Compensation) | 5.000% | 7/1/14 | 500 | 535 |
Texas Public Finance Authority Revenue | ||||
(Unemployment Compensation) | 5.000% | 1/1/18 | 500 | 554 |
Texas Tech University System Revenue | ||||
Financing System Revenue | 5.000% | 2/15/28 | 500 | 579 |
Texas Transportation Commission Revenue | 4.750% | 4/1/24 | 500 | 558 |
Texas Transportation Commission Revenue | 5.000% | 4/1/25 | 500 | 563 |
Texas Transportation Commission Revenue | 5.000% | 4/1/26 | 500 | 562 |
Texas Water Financial Assistance GO | 5.000% | 8/1/24 | 500 | 600 |
Texas Water Financial Assistance GO | 5.000% | 8/1/25 | 500 | 599 |
Texas Water Financial Assistance GO | 5.000% | 8/1/27 | 500 | 589 |
University of Texas System Revenue | ||||
Financing System Revenue | 5.000% | 8/15/19 | 325 | 404 |
University of Texas System Revenue | ||||
Financing System Revenue | 5.000% | 8/15/21 | 500 | 636 |
Williamson County TX GO | 5.000% | 2/15/23 | 230 | 289 |
36,232 | ||||
Utah (0.3%) | ||||
Central Utah Water Conservancy District GO | 5.000% | 4/1/30 | 500 | 596 |
Intermountain Power Agency Utah Power | ||||
Supply Revenue | 5.250% | 7/1/21 | 500 | 512 |
Utah Associated Municipal Power Systems | ||||
Revenue (Horse Butte Wind Project) | 5.000% | 9/1/32 | 350 | 397 |
Utah GO | 5.000% | 7/1/16 | 500 | 576 |
Utah GO | 5.000% | 7/1/16 | 500 | 577 |
2,658 | ||||
Virgin Islands (0.1%) | ||||
Virgin Islands Public Finance Authority Revenue | 5.000% | 10/1/29 | 500 | 538 |
Virginia (0.7%) | ||||
Arlington County VA GO | 5.000% | 8/1/23 | 500 | 640 |
Chesapeake VA Toll Road Revenue | 5.000% | 7/15/21 | 500 | 585 |
Chesterfield County VA GO | 5.000% | 1/1/22 | 500 | 643 |
45
Tax-Managed Balanced Fund | ||||
Face | Market | |||
Maturity | Amount | Value | ||
Coupon | Date | ($000) | ($000) | |
Fairfax County VA Public Improvement GO | 5.000% | 10/1/17 | 500 | 599 |
Fairfax County VA Public Improvement GO | 5.000% | 4/1/21 | 300 | 384 |
Fairfax County VA Water Authority Revenue | 5.000% | 4/1/25 | 500 | 628 |
Norfolk VA Water Revenue | 5.000% | 11/1/31 | 500 | 599 |
Roanoke VA Economic Development Authority | ||||
Hospital Revenue (Carilion Clinic Obligated | ||||
Group) | 5.000% | 7/1/30 | 500 | 568 |
Virginia College Building Authority Educational | ||||
Facilities Revenue (21st Century College | ||||
& Equipment Programs) | 5.000% | 2/1/17 | 200 | 234 |
Virginia College Building Authority Educational | ||||
Facilities Revenue (Public Higher Education | ||||
Financing Program) | 5.000% | 9/1/22 | 355 | 449 |
Virginia Public Building Authority Public | ||||
Facilities Revenue | 5.000% | 8/1/22 | 575 | 732 |
Virginia Public School Authority Revenue | 5.000% | 8/1/13 | 500 | 514 |
Virginia Public School Authority Revenue | 5.000% | 8/1/19 | 500 | 618 |
7,193 | ||||
Washington (1.1%) | ||||
Energy Northwest Washington Electric Revenue | ||||
(Columbia Generating Station) | 5.000% | 7/1/20 | 500 | 623 |
Energy Northwest Washington Electric Revenue | ||||
(Project No. 1) | 5.250% | 7/1/16 | 500 | 579 |
Energy Northwest Washington Electric Revenue | ||||
(Project No. 1) | 5.000% | 7/1/17 | 500 | 590 |
Energy Northwest Washington Electric Revenue | ||||
(Project No. 3) | 5.000% | 7/1/15 | 100 | 111 |
Energy Northwest Washington Electric Revenue | ||||
(Project No. 3) | 5.000% | 7/1/16 | 865 | 994 |
King County WA GO | 5.000% | 1/1/24 | 500 | 620 |
Port of Seattle WA Revenue | 5.000% | 3/1/20 (14) | 665 | 716 |
Port of Seattle WA Revenue | 5.000% | 8/1/29 | 250 | 297 |
University of Washington Revenue | 5.000% | 4/1/31 | 335 | 396 |
Washington (Motor Vehicle Fuel Tax) GO | 5.000% | 7/1/23 | 375 | 460 |
Washington (Motor Vehicle Fuel Tax) GO | 5.000% | 7/1/23 | 425 | 502 |
Washington (Motor Vehicle Fuel Tax) GO | 5.000% | 7/1/28 | 500 | 571 |
Washington GO | 5.700% | 10/1/15 (4) | 315 | 338 |
Washington GO | 5.000% | 2/1/16 | 500 | 566 |
Washington GO | 0.000% | 6/1/20 (3) | 500 | 433 |
Washington GO | 5.000% | 8/1/20 | 500 | 618 |
Washington GO | 5.000% | 7/1/21 | 500 | 594 |
Washington GO | 5.000% | 7/1/21 (4) | 500 | 570 |
Washington GO | 5.000% | 7/1/25 | 500 | 616 |
Washington GO | 5.000% | 2/1/32 | 500 | 592 |
Washington State University General Revenue | 5.000% | 10/1/31 | 500 | 586 |
11,372 | ||||
Wisconsin (0.6%) | ||||
Wisconsin Annual Appropriation Revenue | 5.625% | 5/1/28 | 460 | 553 |
Wisconsin GO | 4.000% | 9/1/15 | 970 | 1,057 |
Wisconsin GO | 5.000% | 5/1/16 | 500 | 571 |
Wisconsin GO | 5.000% | 5/1/16 (4) | 600 | 661 |
Wisconsin GO | 5.000% | 5/1/23 | 500 | 590 |
Wisconsin GO | 5.000% | 5/1/24 | 500 | 620 |
Wisconsin Health & Educational Facilities | ||||
Authority Revenue (Marquette University) | 5.000% | 10/1/30 | 500 | 579 |
46
Tax-Managed Balanced Fund | ||||
Face | Market | |||
Maturity | Amount | Value | ||
Coupon | Date | ($000) | ($000) | |
Wisconsin Transportation Revenue | 5.250% | 7/1/14 (4) | 500 | 536 |
Wisconsin Transportation Revenue | 5.000% | 7/1/23 | 500 | 625 |
5,792 | ||||
Total Tax-Exempt Municipal Bonds (Cost $489,734) | 523,919 | |||
Total Investments (99.6%) (Cost $790,050) | 1,011,568 | |||
Other Assets and Liabilities (0.4%) | ||||
Other Assets | 10,134 | |||
Liabilities | (6,249) | |||
3,885 | ||||
Net Assets (100%) | ||||
Applicable to 45,638,922 outstanding $.001 par value shares of | ||||
beneficial interest (unlimited authorization) | 1,015,453 | |||
Net Asset Value Per Share | $22.25 | |||
At December 31, 2012, net assets consisted of: | ||||
Amount | ||||
($000) | ||||
Paid-in Capital | 803,953 | |||
Overdistributed Net Investment Income | (1,223) | |||
Accumulated Net Realized Losses | (8,795) | |||
Unrealized Appreciation (Depreciation) | 221,518 | |||
Net Assets | 1,015,453 |
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 December 31, 2012, the aggregate value of these securities was $3,725,000, representing 0.4% of net assets.
2 Security purchased on a when-issued or delayed-delivery basis for which the fund has not taken delivery as of December 31, 2012.
A key to abbreviations and other references follows the Statement of Net Assets.
See accompanying Notes, which are an integral part of the Financial Statements.
47
Tax-Managed Balanced Fund
Key to Abbreviations
ARS—Auction Rate Security.
BAN—Bond Anticipation Note.
COP—Certificate of Participation.
CP—Commercial Paper.
FR—Floating Rate.
GAN—Grant Anticipation Note.
GO—General Obligation Bond.
PUT—Put Option Obligation.
RAN—Revenue Anticipation Note.
TAN—Tax Anticipation Note.
TOB—Tender Option Bond.
TRAN—Tax Revenue Anticipation Note.
VRDO—Variable Rate Demand Obligation.
VRDP—Variable Rate Demand Preferred.
(ETM)—Escrowed to Maturity.
(Prere.)—Prerefunded.
Scheduled principal and interest payments are guaranteed by:
(1) MBIA (Municipal Bond Investors Assurance).
(2) AMBAC (Ambac Assurance Corporation).
(3) FGIC (Financial Guaranty Insurance Company).
(4) AGM (Assured Guaranty Municipal Corporation).
(5) BIGI (Bond Investors Guaranty Insurance).
(6) Connie Lee Inc.
(7) FHA (Federal Housing Authority).
(8) CapMAC (Capital Markets Assurance Corporation).
(9) American Capital Access Financial Guaranty Corporation.
(10) XL Capital Assurance Inc.
(11) CIFG (CDC IXIS Financial Guaranty).
(12) Assured Guaranty Corporation.
(13) Berkshire Hathaway Assurance Corporation.
(14) National Public Finance Guarantee Corporation.
The insurance does not guarantee the market value of the municipal bonds.
LOC—Scheduled principal and interest payments are guaranteed by bank letter of credit.
48
Tax-Managed Balanced Fund | |
Statement of Operations | |
Year Ended | |
December 31, 2012 | |
($000) | |
Investment Income | |
Income | |
Dividends | 8,975 |
Interest | 14,522 |
Total Income | 23,497 |
Expenses | |
The Vanguard Group—Note B | |
Investment Advisory Services | 64 |
Management and Administrative | 841 |
Marketing and Distribution | 153 |
Custodian Fees | 13 |
Auditing Fees | 27 |
Shareholders’ Reports | 8 |
Trustees’ Fees and Expenses | 1 |
Total Expenses | 1,107 |
Net Investment Income | 22,390 |
Realized Net Gain (Loss) on Investment Securities Sold | 3,463 |
Change in Unrealized Appreciation (Depreciation) of Investment Securities | 65,367 |
Net Increase (Decrease) in Net Assets Resulting from Operations | 91,220 |
See accompanying Notes, which are an integral part of the Financial Statements.
49
Tax-Managed Balanced Fund | ||
Statement of Changes in Net Assets | ||
Year Ended December 31, | ||
2012 | 2011 | |
($000) | ($000) | |
Increase (Decrease) in Net Assets | ||
Operations | ||
Net Investment Income | 22,390 | 19,426 |
Realized Net Gain (Loss) | 3,463 | 9,695 |
Change in Unrealized Appreciation (Depreciation) | 65,367 | 12,259 |
Net Increase (Decrease) in Net Assets Resulting from Operations | 91,220 | 41,380 |
Distributions | ||
Net Investment Income | (22,423) | (19,292) |
Realized Capital Gain | — | — |
Total Distributions | (22,423) | (19,292) |
Capital Share Transactions | ||
Issued | 212,247 | 84,410 |
Issued in Lieu of Cash Distributions | 19,131 | 16,324 |
Redeemed1 | (82,059) | (58,490) |
Net Increase (Decrease) from Capital Share Transactions | 149,319 | 42,244 |
Total Increase (Decrease) | 218,116 | 64,332 |
Net Assets | ||
Beginning of Period | 797,337 | 733,005 |
End of Period2 | 1,015,453 | 797,337 |
1 Net of redemption fees for fiscal 2011 of $39,000. Effective April 28, 2011, the redemption fee was eliminated.
2 Net Assets—End of Period includes undistributed (overdistributed) net investment income of ($1,223,000) and ($1,190,000).
See accompanying Notes, which are an integral part of the Financial Statements.
50
Tax-Managed Balanced Fund | |||||
Financial Highlights | |||||
For a Share Outstanding | Year Ended December 31, | ||||
Throughout Each Period | 2012 | 2011 | 2010 | 2009 | 2008 |
Net Asset Value, Beginning of Period | $20.55 | $19.96 | $18.75 | $16.19 | $20.45 |
Investment Operations | |||||
Net Investment Income | .525 | .519 | .496 | .491 | .565 |
Net Realized and Unrealized Gain (Loss) | |||||
on Investments | 1.696 | .585 | 1.210 | 2.566 | (4.260) |
Total from Investment Operations | 2.221 | 1.104 | 1.706 | 3.057 | (3.695) |
Distributions | |||||
Dividends from Net Investment Income1 | (.521) | (.514) | (.496) | (.497) | (.565) |
Distributions from Realized Capital Gains | — | — | — | — | — |
Total Distributions | (.521) | (.514) | (.496) | (.497) | (.565) |
Net Asset Value, End of Period | $22.25 | $20.55 | $19.96 | $18.75 | $16.19 |
Total Return2 | 10.87% | 5.58% | 9.22% | 19.14% | -18.32% |
Ratios/Supplemental Data | |||||
Net Assets, End of Period (Millions) | $1,015 | $797 | $733 | $669 | $587 |
Ratio of Total Expenses to | |||||
Average Net Assets | 0.12% | 0.12% | 0.15% | 0.15% | 0.13% |
Ratio of Net Investment Income to | |||||
Average Net Assets | 2.43% | 2.55% | 2.58% | 2.86% | 3.01% |
Portfolio Turnover Rate | 7% | 12% | 23% | 27% | 19% |
1 For tax purposes, nontaxable dividends represent 62%, 70%, 70%, 69%, and 72% of dividends from net investment income.
2 Total returns do not include transaction or account service fees that may have applied in the periods shown. Fund prospectuses provide information about any applicable transaction and account service fees.
See accompanying Notes, which are an integral part of the Financial Statements.
51
Tax-Managed Balanced Fund
Notes to Financial Statements
Vanguard Tax-Managed Balanced Fund is registered under the Investment Company Act of 1940 as an open-end investment company, or mutual fund. The fund invests in debt instruments of many municipal issuers; the issuers’ abilities to meet their obligations may be affected by economic and political developments in a specific state or region.
A. The following significant accounting policies conform to generally accepted accounting principles for U.S. mutual funds. The fund consistently follows such policies in preparing its financial statements.
1. Security Valuation: Securities are valued as of the close of trading on the New York Stock Exchange (generally 4 p.m., Eastern time) on the valuation date. Equity securities are valued at the latest quoted sales prices or official closing prices taken from the primary market in which each security trades; such securities not traded on the valuation date are valued at the mean of the latest quoted bid and asked prices. Bonds, and temporary cash investments acquired over 60 days to maturity, are valued using the latest bid prices or using valuations based on a matrix system (which considers such factors as security prices, yields, maturities, and ratings), both as furnished by independent pricing services. Other temporary cash investments are valued at amortized cost, which approximates market value. Securities for which market quotations are not readily available, or whose values have been materially affected by events occurring before the fund’s pricing time but after the close of the securities’ primary markets, are valued by methods deemed by the board of trustees to represent fair value.
2. Federal Income Taxes: The fund intends to continue to qualify as a regulated investment company and distribute all of its income. Management has analyzed the fund’s tax positions taken for all open federal income tax years (December 31, 2009–2012), and has concluded that no provision for federal income tax is required in the fund’s financial statements.
3. Distributions: Distributions to shareholders are recorded on the ex-dividend date.
4. Other: Dividend income is recorded on the ex-dividend date. Interest income is accrued daily. Premiums and discounts on debt securities purchased are amortized and accreted, respectively, to interest income over the lives of the respective securities. Security transactions are accounted for on the date securities are bought or sold. Costs used to determine realized gains (losses) on the sale of investment securities are those of the specific securities sold.
B. The Vanguard Group furnishes at cost investment advisory, corporate management, administrative, marketing, and distribution services. The costs of such services are allocated to the fund under methods approved by the board of trustees. The fund has committed to provide up to 0.40% of its net assets in capital contributions to Vanguard. At December 31, 2012, the fund had contributed capital of $138,000 to Vanguard (included in Other Assets), representing 0.01% of the fund’s net assets and 0.06% of Vanguard’s capitalization. The fund’s trustees and officers are also directors and officers of Vanguard.
C. 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—Quoted prices in active markets for identical securities.
Level 2—Other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.).
Level 3—Significant unobservable inputs (including the fund’s own assumptions used to determine the fair value of investments).
52
Tax-Managed Balanced Fund
The following table summarizes the market value of the fund’s investments as of December 31, 2012, based on the inputs used to value them:
Level 1 | Level 2 | Level 3 | |
Investments | ($000) | ($000) | ($000) |
Common Stocks | 487,649 | — | — |
Tax-Exempt Municipal Bonds | — | 523,919 | — |
Total | 487,649 | 523,919 | — |
D. Distributions are determined on a tax basis and may differ from net investment income and realized capital gains for financial reporting purposes. Differences may be permanent or temporary. Permanent differences are reclassified among capital accounts in the financial statements to reflect their tax character. Temporary differences arise when certain items of income, expense, gain, or loss are recognized in different periods for financial statement and tax purposes; these differences will reverse at some time in the future. Differences in classification may also result from the treatment of short-term gains as ordinary income for tax purposes.
For tax purposes, at December 31, 2012, the fund has $110,000 of ordinary income available for distribution. The fund used capital loss carryforwards of $3,463,000 to offset taxable capital gains realized during the year ended December 31, 2012. At December 31, 2012, the fund had available capital loss carryforwards totaling $8,795,000 to offset future net capital gains through December 31, 2017.
At December 31, 2012, the cost of investment securities for tax purposes was $790,050,000. Net unrealized appreciation of investment securities for tax purposes was $221,518,000, consisting of unrealized gains of $228,562,000 on securities that had risen in value since their purchase and $7,044,000 in unrealized losses on securities that had fallen in value since their purchase.
E. During the year ended December 31, 2012, the fund purchased $183,623,000 of investment securities and sold $59,237,000 of investment securities, other than temporary cash investments.
F. Capital shares issued and redeemed were:
Year Ended December 31, | ||
2012 | 2011 | |
Shares | Shares | |
(000) | (000) | |
Issued | 9,707 | 4,149 |
Issued in Lieu of Cash Distributions | 873 | 802 |
Redeemed | (3,737) | (2,887) |
Net Increase (Decrease) in Shares Outstanding | 6,843 | 2,064 |
G. In preparing the financial statements as of December 31, 2012, management considered the impact of subsequent events for potential recognition or disclosure in these financial statements.
53
Tax-Managed Growth and Income Fund
Fund Profile
As of December 31, 2012
Share-Class Characteristics | ||
Admiral | Institutional | |
Shares | Shares | |
Ticker Symbol | VTGLX | VTMIX |
Expense Ratio1 | 0.12% | 0.08% |
30-Day SEC Yield | 2.19% | 2.23% |
Portfolio Characteristics | |||
DJ U.S. | |||
Total | |||
Market | |||
S&P 500 | FA | ||
Fund | Index | Index | |
Number of Stocks | 501 | 500 | 3,604 |
Median Market Cap | $56.4B | $56.4B | $35.1B |
Price/Earnings Ratio | 15.9x | 15.9x | 16.8x |
Price/Book Ratio | 2.1x | 2.1x | 2.1x |
Return on Equity | 18.7% | 18.7% | 17.1% |
Earnings Growth Rate | 9.7% | 9.7% | 9.7% |
Dividend Yield | 2.3% | 2.3% | 2.1% |
Foreign Holdings | 0.0% | 0.0% | 0.0% |
Turnover Rate | 5% | — | — |
Short-Term Reserves | 0.0% | — | — |
Sector Diversification (% of equity exposure) | |||
DJ U.S. | |||
Total | |||
Market | |||
S&P 500 | FA | ||
Fund | Index | Index | |
Consumer Discretionary | 11.5% | 11.5% | 12.3% |
Consumer Staples | 10.6 | 10.6 | 9.3 |
Energy | 11.0 | 11.0 | 10.2 |
Financials | 15.6 | 15.6 | 16.9 |
Health Care | 12.0 | 12.0 | 11.7 |
Industrials | 10.1 | 10.1 | 11.1 |
Information Technology | 19.1 | 19.1 | 18.3 |
Materials | 3.6 | 3.6 | 4.0 |
Telecommunication | |||
Services | 3.1 | 3.1 | 2.7 |
Utilities | 3.4 | 3.4 | 3.5 |
Volatility Measures | ||
DJ U.S. | ||
Total | ||
Market | ||
S&P 500 | FA | |
Index | Index | |
R-Squared | 1.00 | 1.00 |
Beta | 1.00 | 0.96 |
These measures show the degree and timing of the fund’s fluctuations compared with the indexes over 36 months.
Ten Largest Holdings (% of total net assets) | ||
Apple Inc. | Computer Hardware | 3.9% |
Exxon Mobil Corp. | Integrated Oil & Gas | 3.1 |
General Electric Co. | Industrial | |
Conglomerates | 1.7 | |
Chevron Corp. | Integrated Oil & Gas | 1.7 |
International Business | IT Consulting & | |
Machines Corp. | Other Services | 1.6 |
Microsoft Corp. | System Software | 1.6 |
Johnson & Johnson | Pharmaceuticals | 1.5 |
AT&T Inc. | Integrated | |
Telecommunication | ||
Services | 1.5 | |
Google Inc. Class A | Internet Software & | |
Services | 1.5 | |
Procter & Gamble Co. | Household Products | 1.5 |
Top Ten | 19.6% |
The holdings listed exclude any temporary cash investments and equity index products.
Investment Focus
1 The expense ratios shown are from the prospectus dated April 26, 2012, and represent estimated costs for the current fiscal year. For the fiscal year ended December 31, 2012, the expense ratios were 0.12% for Admiral Shares and 0.08% for Institutional Shares.
54
Tax-Managed Growth and Income Fund
Performance Summary
All of the returns in this report represent past performance, which is not a guarantee of future results that may be achieved by the fund. (Current performance may be lower or higher than the performance data cited. For performance data current to the most recent month-end, visit our website at vanguard.com/performance.) Note, too, that both investment returns and principal value can fluctuate widely, so an investor’s shares, when sold, could be worth more or less than their original cost. The returns shown do not reflect taxes that a shareholder would pay on fund distributions or on the sale of fund shares.
Cumulative Performance: December 31, 2002, Through December 31, 2012
Initial Investment of $10,000
Average Annual Total Returns | ||||
Periods Ended December 31, 2012 | ||||
Final Value | ||||
One | Five | Ten | of a $10,000 | |
Year | Years | Years | Investment | |
Tax-Managed Growth and Income | ||||
Fund Admiral Shares | 15.91% | 1.62% | 7.07% | $19,803 |
S&P 500 Index | 16.00 | 1.66 | 7.10 | 19,858 |
Large-Cap Core Funds Average | 14.94 | 0.50 | 5.64 | 17,317 |
Dow Jones U.S. Total Stock Market | ||||
Float Adjusted Index | 16.38 | 2.21 | 7.95 | 21,484 |
Large-Cap Core Funds Average: Derived from data provided by Lipper Inc.
Final Value | ||||
One | Five | Ten | of a $5,000,000 | |
Year | Years | Years | Investment | |
Tax-Managed Growth and Income Fund | ||||
Institutional Shares | 15.96% | 1.67% | 7.11% | $9,935,308 |
S&P 500 Index | 16.00 | 1.66 | 7.10 | 9,928,999 |
Dow Jones U.S. Total Stock Market | ||||
Float Adjusted Index | 16.38 | 2.21 | 7.95 | 10,742,011 |
See Financial Highlights for dividend and capital gains information.
55
Tax-Managed Growth and Income Fund
Fiscal-Year Total Returns (%): December 31, 2002, Through December 31, 2012
Tax-Managed Growth and Income Fund Admiral Shares |
S&P 500 Index |
56
Tax-Managed Growth and Income Fund
Financial Statements
Statement of Net Assets
As of December 31, 2012
The fund reports a complete list of its holdings in regulatory filings four times in each fiscal year, at the quarter-ends. For the second and fourth fiscal quarters, the lists appear in the fund’s semiannual and annual reports to shareholders. For the first and third fiscal quarters, the fund files the lists with the Securities and Exchange Commission on Form N-Q. Shareholders can look up the fund’s Forms N-Q on the SEC’s website at sec.gov. Forms N-Q may also be reviewed and copied at the SEC’s Public Reference Room (see the back cover of this report for further information).
Market | |||
Value | |||
Shares | ($000) | ||
Common Stocks (100.0%) | |||
Consumer Discretionary (11.5%) | |||
Comcast Corp. Class A | 490,833 | 18,347 | |
Home Depot Inc. | 295,306 | 18,265 | |
* | Amazon.com Inc. | 71,567 | 17,973 |
McDonald’s Corp. | 198,262 | 17,489 | |
Walt Disney Co. | 350,208 | 17,437 | |
News Corp. Class A | 398,124 | 10,168 | |
Ford Motor Co. | 752,875 | 9,750 | |
Time Warner Inc. | 186,966 | 8,943 | |
Lowe’s Cos. Inc. | 222,082 | 7,888 | |
Starbucks Corp. | 147,041 | 7,884 | |
Target Corp. | 128,673 | 7,614 | |
NIKE Inc. Class B | 144,304 | 7,446 | |
* | priceline.com Inc. | 9,861 | 6,126 |
TJX Cos. Inc. | 144,238 | 6,123 | |
* | DIRECTV | 119,291 | 5,984 |
Yum! Brands Inc. | 89,262 | 5,927 | |
Time Warner Cable Inc. | 59,585 | 5,791 | |
Viacom Inc. Class B | 91,199 | 4,810 | |
CBS Corp. Class B | 116,743 | 4,442 | |
Johnson Controls Inc. | 135,022 | 4,145 | |
Carnival Corp. | 87,940 | 3,234 | |
Coach Inc. | 56,163 | 3,118 | |
Macy’s Inc. | 78,286 | 3,055 | |
* | Discovery Communications | ||
Inc. Class A | 47,200 | 2,996 | |
McGraw-Hill Cos. Inc. | 54,747 | 2,993 | |
VF Corp. | 17,402 | 2,627 | |
Omnicom Group Inc. | 52,075 | 2,602 | |
* | AutoZone Inc. | 7,282 | 2,581 |
* | Bed Bath & Beyond Inc. | 45,364 | 2,536 |
Mattel Inc. | 67,883 | 2,486 | |
Ross Stores Inc. | 44,023 | 2,384 | |
* | Dollar General Corp. | 51,963 | 2,291 |
Limited Brands Inc. | 47,468 | 2,234 | |
Starwood Hotels & Resorts | |||
Worldwide Inc. | 38,811 | 2,226 | |
Harley-Davidson Inc. | 44,827 | 2,189 | |
* | O’Reilly Automotive Inc. | 22,568 | 2,018 |
Market | |||
Value | |||
Shares | ($000) | ||
Genuine Parts Co. | 30,576 | 1,944 | |
* | Chipotle Mexican Grill Inc. | ||
Class A | 6,218 | 1,850 | |
* | Dollar Tree Inc. | 45,016 | 1,826 |
Gap Inc. | 58,710 | 1,822 | |
Ralph Lauren Corp. Class A | 12,135 | 1,819 | |
Marriott International Inc. | |||
Class A | 48,724 | 1,816 | |
Kohl’s Corp. | 41,913 | 1,801 | |
Wynn Resorts Ltd. | 15,593 | 1,754 | |
* | CarMax Inc. | 45,391 | 1,704 |
* | Delphi Automotive plc | 43,008 | 1,645 |
* | BorgWarner Inc. | 22,801 | 1,633 |
Nordstrom Inc. | 30,036 | 1,607 | |
Whirlpool Corp. | 15,273 | 1,554 | |
Staples Inc. | 133,430 | 1,521 | |
Wyndham Worldwide Corp. | 27,696 | 1,474 | |
PetSmart Inc. | 21,249 | 1,452 | |
Tiffany & Co. | 23,503 | 1,348 | |
Newell Rubbermaid Inc. | 56,789 | 1,265 | |
Lennar Corp. Class A | 32,469 | 1,256 | |
* | PulteGroup Inc. | 67,207 | 1,220 |
Comcast Corp. | 33,914 | 1,219 | |
Family Dollar Stores Inc. | 18,956 | 1,202 | |
Darden Restaurants Inc. | 25,311 | 1,141 | |
Expedia Inc. | 18,413 | 1,131 | |
DR Horton Inc. | 55,355 | 1,095 | |
* | Netflix Inc. | 10,999 | 1,020 |
Scripps Networks | |||
Interactive Inc. Class A | 17,281 | 1,001 | |
H&R Block Inc. | 53,457 | 993 | |
* | Fossil Inc. | 10,612 | 988 |
Interpublic Group of Cos. Inc. | 85,309 | 940 | |
* | TripAdvisor Inc. | 21,613 | 907 |
Garmin Ltd. | 21,500 | 878 | |
* | Urban Outfitters Inc. | 21,740 | 856 |
Gannett Co. Inc. | 45,425 | 818 | |
Hasbro Inc. | 22,705 | 815 | |
Leggett & Platt Inc. | 27,981 | 762 | |
Abercrombie & Fitch Co. | 15,706 | 753 |
57
Tax-Managed Growth and Income Fund | |||
Market | |||
Value | |||
Shares | ($000) | ||
International Game | |||
Technology | 52,578 | 745 | |
* | Goodyear Tire & Rubber Co. | 48,343 | 668 |
Cablevision Systems Corp. | |||
Class A | 42,468 | 634 | |
Best Buy Co. Inc. | 53,278 | 631 | |
GameStop Corp. Class A | 23,921 | 600 | |
Harman International | |||
Industries Inc. | 13,381 | 597 | |
JC Penney Co. Inc. | 28,375 | 559 | |
* | Apollo Group Inc. Class A | 20,005 | 418 |
Washington Post Co. Class B | 900 | 329 | |
* | Big Lots Inc. | 11,356 | 323 |
* | AutoNation Inc. | 7,649 | 304 |
288,760 | |||
Consumer Staples (10.6%) | |||
Procter & Gamble Co. | 539,994 | 36,660 | |
Coca-Cola Co. | 761,809 | 27,616 | |
Philip Morris | |||
International Inc. | 329,917 | 27,594 | |
Wal-Mart Stores Inc. | 330,313 | 22,537 | |
PepsiCo Inc. | 305,434 | 20,901 | |
Altria Group Inc. | 400,252 | 12,576 | |
CVS Caremark Corp. | 246,174 | 11,903 | |
Colgate-Palmolive Co. | 87,619 | 9,160 | |
Mondelez International Inc. | |||
Class A | 350,844 | 8,936 | |
Costco Wholesale Corp. | 85,453 | 8,440 | |
Kimberly-Clark Corp. | 77,386 | 6,534 | |
Walgreen Co. | 169,902 | 6,288 | |
Kraft Foods Group Inc. | 117,093 | 5,324 | |
General Mills Inc. | 127,469 | 5,151 | |
Sysco Corp. | 116,185 | 3,678 | |
HJ Heinz Co. | 63,354 | 3,654 | |
Archer-Daniels-Midland Co. | 130,139 | 3,565 | |
Whole Foods Market Inc. | 34,014 | 3,106 | |
Lorillard Inc. | 25,575 | 2,984 | |
Estee Lauder Cos. Inc. | |||
Class A | 47,392 | 2,837 | |
Kellogg Co. | 48,893 | 2,731 | |
Reynolds American Inc. | 64,237 | 2,661 | |
Mead Johnson Nutrition Co. | 40,190 | 2,648 | |
Kroger Co. | 101,573 | 2,643 | |
ConAgra Foods Inc. | 80,402 | 2,372 | |
Hershey Co. | 29,635 | 2,140 | |
Beam Inc. | 31,320 | 1,913 | |
Brown-Forman Corp. Class B | 29,925 | 1,893 | |
Clorox Co. | 25,828 | 1,891 | |
JM Smucker Co. | 21,428 | 1,848 | |
Dr Pepper Snapple | |||
Group Inc. | 41,218 | 1,821 | |
Coca-Cola Enterprises Inc. | 53,460 | 1,696 | |
McCormick & Co. Inc. | 26,143 | 1,661 | |
* | Monster Beverage Corp. | 29,463 | 1,558 |
Molson Coors Brewing Co. | |||
Class B | 30,710 | 1,314 |
Market | |||
Value | |||
Shares | ($000) | ||
Campbell Soup Co. | 35,330 | 1,233 | |
Avon Products Inc. | 85,143 | 1,223 | |
Tyson Foods Inc. Class A | 56,631 | 1,099 | |
* | Constellation Brands Inc. | ||
Class A | 29,422 | 1,041 | |
Safeway Inc. | 47,710 | 863 | |
Hormel Foods Corp. | 26,600 | 830 | |
* | Dean Foods Co. | 36,900 | 609 |
267,132 | |||
Energy (11.0%) | |||
Exxon Mobil Corp. | 900,567 | 77,944 | |
Chevron Corp. | 386,497 | 41,796 | |
Schlumberger Ltd. | 262,193 | 18,167 | |
ConocoPhillips | 239,850 | 13,909 | |
Occidental Petroleum Corp. | 159,968 | 12,255 | |
Anadarko Petroleum Corp. | 98,766 | 7,339 | |
Phillips 66 | 123,693 | 6,568 | |
EOG Resources Inc. | 53,529 | 6,466 | |
Halliburton Co. | 183,566 | 6,368 | |
Apache Corp. | 77,284 | 6,067 | |
National Oilwell Varco Inc. | 84,353 | 5,766 | |
Kinder Morgan Inc. | 125,024 | 4,417 | |
Williams Cos. Inc. | 133,210 | 4,361 | |
Marathon Oil Corp. | 139,644 | 4,281 | |
Marathon Petroleum Corp. | 67,024 | 4,223 | |
Devon Energy Corp. | 74,408 | 3,872 | |
Valero Energy Corp. | 109,315 | 3,730 | |
Spectra Energy Corp. | 131,471 | 3,600 | |
Noble Energy Inc. | 35,083 | 3,569 | |
Baker Hughes Inc. | 86,840 | 3,547 | |
Hess Corp. | 58,711 | 3,109 | |
* | Cameron International Corp. | 48,775 | 2,754 |
Ensco plc Class A | 45,875 | 2,719 | |
Pioneer Natural | |||
Resources Co. | 24,270 | 2,587 | |
* | Southwestern Energy Co. | 68,953 | 2,304 |
Murphy Oil Corp. | 36,366 | 2,166 | |
Cabot Oil & Gas Corp. | 41,438 | 2,061 | |
Range Resources Corp. | 32,086 | 2,016 | |
* | FMC Technologies Inc. | 47,056 | 2,015 |
EQT Corp. | 29,482 | 1,739 | |
Noble Corp. | 49,851 | 1,736 | |
Chesapeake Energy Corp. | 102,427 | 1,702 | |
CONSOL Energy Inc. | 44,989 | 1,444 | |
Peabody Energy Corp. | 52,875 | 1,407 | |
* | Denbury Resources Inc. | 76,592 | 1,241 |
Tesoro Corp. | 27,884 | 1,228 | |
Helmerich & Payne Inc. | 20,987 | 1,175 | |
QEP Resources Inc. | 35,368 | 1,071 | |
Diamond Offshore | |||
Drilling Inc. | 13,811 | 939 | |
* | Nabors Industries Ltd. | 57,606 | 832 |
* | Rowan Cos. plc Class A | 24,486 | 766 |
* | Newfield Exploration Co. | 26,611 | 713 |
* | WPX Energy Inc. | 39,118 | 582 |
276,551 |
58
Tax-Managed Growth and Income Fund | |||
Market | |||
Value | |||
Shares | ($000) | ||
Financials (15.6%) | |||
Wells Fargo & Co. | 966,933 | 33,050 | |
JPMorgan Chase & Co. | 750,786 | 33,012 | |
* | Berkshire Hathaway Inc. | ||
Class B | 325,709 | 29,216 | |
Bank of America Corp. | 2,128,752 | 24,694 | |
Citigroup Inc. | 579,146 | 22,911 | |
US Bancorp | 371,274 | 11,859 | |
Goldman Sachs Group Inc. | 87,182 | 11,121 | |
American Express Co. | 192,253 | 11,051 | |
* | American International | ||
Group Inc. | 291,464 | 10,289 | |
Simon Property Group Inc. | 61,001 | 9,644 | |
MetLife Inc. | 215,737 | 7,106 | |
Capital One Financial Corp. | 115,023 | 6,663 | |
PNC Financial Services | |||
Group Inc. | 104,576 | 6,098 | |
American Tower | |||
Corporation | 78,157 | 6,039 | |
Bank of New York | |||
Mellon Corp. | 231,074 | 5,939 | |
Travelers Cos. Inc. | 75,367 | 5,413 | |
ACE Ltd. | 67,119 | 5,356 | |
Morgan Stanley | 273,071 | 5,221 | |
BlackRock Inc. | 24,783 | 5,123 | |
Aflac Inc. | 92,717 | 4,925 | |
Prudential Financial Inc. | 91,633 | 4,887 | |
State Street Corp. | 91,805 | 4,316 | |
Public Storage | 28,489 | 4,130 | |
HCP Inc. | 89,318 | 4,035 | |
BB&T Corp. | 138,357 | 4,028 | |
Chubb Corp. | 51,854 | 3,906 | |
Discover Financial Services | 99,633 | 3,841 | |
Allstate Corp. | 95,176 | 3,823 | |
Ventas Inc. | 58,358 | 3,777 | |
Marsh & McLennan | |||
Cos. Inc. | 107,615 | 3,709 | |
Equity Residential | 63,432 | 3,595 | |
Aon plc | 62,839 | 3,494 | |
Franklin Resources Inc. | 27,326 | 3,435 | |
Prologis Inc. | 91,070 | 3,323 | |
T. Rowe Price Group Inc. | 50,248 | 3,273 | |
Boston Properties Inc. | 29,802 | 3,153 | |
Health Care REIT Inc. | 51,403 | 3,150 | |
Charles Schwab Corp. | 216,813 | 3,113 | |
* | Berkshire Hathaway Inc. | ||
Class A | 23 | 3,083 | |
CME Group Inc. | 60,510 | 3,068 | |
AvalonBay Communities Inc. | 22,562 | 3,059 | |
SunTrust Banks Inc. | 106,514 | 3,020 | |
Weyerhaeuser Co. | 107,028 | 2,978 | |
Fifth Third Bancorp | 177,019 | 2,689 | |
Vornado Realty Trust | 33,357 | 2,671 | |
Ameriprise Financial Inc. | 40,642 | 2,545 | |
Loews Corp. | 61,594 | 2,510 | |
M&T Bank Corp. | 23,909 | 2,354 |
Market | |||
Value | |||
Shares | ($000) | ||
Progressive Corp. | 110,293 | 2,327 | |
Invesco Ltd. | 87,971 | 2,295 | |
Host Hotels & Resorts Inc. | 143,042 | 2,241 | |
Northern Trust Corp. | 43,048 | 2,159 | |
Regions Financial Corp. | 278,913 | 1,986 | |
Hartford Financial | |||
Services Group Inc. | 86,044 | 1,931 | |
Moody’s Corp. | 38,218 | 1,923 | |
* | IntercontinentalExchange Inc. 14,314 | 1,772 | |
SLM Corp. | 91,537 | 1,568 | |
Kimco Realty Corp. | 80,923 | 1,563 | |
Principal Financial Group Inc. | 54,614 | 1,558 | |
KeyCorp | 184,960 | 1,557 | |
NYSE Euronext | 48,037 | 1,515 | |
XL Group plc Class A | 59,526 | 1,492 | |
Plum Creek Timber Co. Inc. | 31,815 | 1,412 | |
Lincoln National Corp. | 54,425 | 1,410 | |
* | CBRE Group Inc. Class A | 59,521 | 1,184 |
Comerica Inc. | 37,593 | 1,141 | |
Unum Group | 54,425 | 1,133 | |
Cincinnati Financial Corp. | 28,895 | 1,132 | |
Huntington Bancshares Inc. | 168,723 | 1,078 | |
Torchmark Corp. | 18,699 | 966 | |
Leucadia National Corp. | 39,394 | 937 | |
People’s United | |||
Financial Inc. | 68,732 | 831 | |
Zions Bancorporation | 36,240 | 776 | |
Apartment Investment & | |||
Management Co. Class A | 28,592 | 774 | |
Hudson City Bancorp Inc. | 93,619 | 761 | |
* | Genworth Financial Inc. | ||
Class A | 97,134 | 729 | |
Legg Mason Inc. | 23,136 | 595 | |
NASDAQ OMX Group Inc. | 22,995 | 575 | |
Assurant Inc. | 15,409 | 535 | |
First Horizon National Corp. | 48,524 | 481 | |
* | E*TRADE Financial Corp. | 51,759 | 463 |
392,495 | |||
Health Care (12.0%) | |||
Johnson & Johnson | 547,341 | 38,369 | |
Pfizer Inc. | 1,454,256 | 36,473 | |
Merck & Co. Inc. | 600,359 | 24,579 | |
Abbott Laboratories | 312,135 | 20,445 | |
Amgen Inc. | 151,496 | 13,077 | |
* | Gilead Sciences Inc. | 149,610 | 10,989 |
UnitedHealth Group Inc. | 201,672 | 10,939 | |
Bristol-Myers Squibb Co. | 325,917 | 10,622 | |
Eli Lilly & Co. | 201,648 | 9,945 | |
* | Express Scripts Holding Co. | 161,172 | 8,703 |
Medtronic Inc. | 199,626 | 8,189 | |
Baxter International Inc. | 108,458 | 7,230 | |
* | Biogen Idec Inc. | 46,738 | 6,855 |
* | Celgene Corp. | 83,581 | 6,580 |
Allergan Inc. | 60,767 | 5,574 | |
Covidien plc | 93,478 | 5,397 | |
Thermo Fisher Scientific Inc. | 71,054 | 4,532 |
59
Tax-Managed Growth and Income Fund | |||
Market | |||
Value | |||
Shares | ($000) | ||
McKesson Corp. | 46,635 | 4,522 | |
* | Intuitive Surgical Inc. | 7,855 | 3,852 |
WellPoint Inc. | 59,952 | 3,652 | |
* | Alexion Pharmaceuticals Inc. | 38,444 | 3,606 |
Stryker Corp. | 57,050 | 3,127 | |
Aetna Inc. | 66,078 | 3,059 | |
Becton Dickinson and Co. | 39,016 | 3,051 | |
Cigna Corp. | 56,366 | 3,013 | |
Agilent Technologies Inc. | 68,884 | 2,820 | |
Cardinal Health Inc. | 67,055 | 2,761 | |
Zimmer Holdings Inc. | 34,296 | 2,286 | |
* | Cerner Corp. | 28,738 | 2,231 |
* | Mylan Inc. | 80,374 | 2,209 |
St. Jude Medical Inc. | 61,008 | 2,205 | |
* | Watson Pharmaceuticals Inc. | 25,177 | 2,165 |
Humana Inc. | 31,362 | 2,152 | |
* | Edwards Lifesciences Corp. | 22,743 | 2,051 |
AmerisourceBergen Corp. | |||
Class A | 46,524 | 2,009 | |
* | DaVita HealthCare | ||
Partners Inc. | 16,613 | 1,836 | |
Quest Diagnostics Inc. | 31,342 | 1,826 | |
Perrigo Co. | 17,402 | 1,810 | |
* | Life Technologies Corp. | 34,082 | 1,673 |
* | Forest Laboratories Inc. | 46,123 | 1,629 |
* | Laboratory Corp. of | ||
America Holdings | 18,668 | 1,617 | |
* | Boston Scientific Corp. | 271,216 | 1,554 |
* | Varian Medical Systems Inc. | 21,649 | 1,521 |
* | Waters Corp. | 17,177 | 1,496 |
CR Bard Inc. | 15,129 | 1,479 | |
* | CareFusion Corp. | 43,689 | 1,249 |
Coventry Health Care Inc. | 26,680 | 1,196 | |
DENTSPLY International Inc. | 28,253 | 1,119 | |
* | Hospira Inc. | 32,854 | 1,026 |
PerkinElmer Inc. | 22,637 | 719 | |
Tenet Healthcare Corp. | 21,004 | 682 | |
Patterson Cos. Inc. | 16,440 | 563 | |
302,264 | |||
Industrials (10.1%) | |||
General Electric Co. | 2,071,275 | 43,476 | |
United Technologies Corp. | 166,496 | 13,654 | |
Union Pacific Corp. | 92,977 | 11,689 | |
3M Co. | 125,698 | 11,671 | |
Caterpillar Inc. | 129,076 | 11,563 | |
United Parcel Service Inc. | |||
Class B | 141,299 | 10,418 | |
Boeing Co. | 134,001 | 10,098 | |
Honeywell International Inc. | 154,657 | 9,816 | |
Emerson Electric Co. | 143,200 | 7,584 | |
Deere & Co. | 77,393 | 6,688 | |
Danaher Corp. | 115,066 | 6,432 | |
Precision Castparts Corp. | 28,784 | 5,452 | |
FedEx Corp. | 57,634 | 5,286 | |
Illinois Tool Works Inc. | 84,157 | 5,118 | |
Eaton Corp. plc | 91,306 | 4,949 |
Market | |||
Value | |||
Shares | ($000) | ||
Lockheed Martin Corp. | 52,999 | 4,891 | |
General Dynamics Corp. | 65,622 | 4,546 | |
CSX Corp. | 203,717 | 4,019 | |
Norfolk Southern Corp. | 62,384 | 3,858 | |
Cummins Inc. | 34,844 | 3,775 | |
Raytheon Co. | 65,082 | 3,746 | |
Northrop Grumman Corp. | 48,589 | 3,284 | |
PACCAR Inc. | 69,935 | 3,162 | |
Waste Management Inc. | 86,134 | 2,906 | |
Tyco International Ltd. | 91,568 | 2,678 | |
Ingersoll-Rand plc | 55,300 | 2,652 | |
Parker Hannifin Corp. | 29,490 | 2,508 | |
Fastenal Co. | 53,182 | 2,483 | |
Stanley Black & Decker Inc. | 33,289 | 2,462 | |
WW Grainger Inc. | 11,843 | 2,397 | |
Dover Corp. | 35,484 | 2,332 | |
Rockwell Automation Inc. | 27,603 | 2,318 | |
Roper Industries Inc. | 19,459 | 2,169 | |
ADT Corp. | 45,786 | 2,129 | |
Pentair Ltd. | 41,689 | 2,049 | |
CH Robinson Worldwide Inc. | 31,912 | 2,017 | |
Fluor Corp. | 32,868 | 1,931 | |
Republic Services Inc. | |||
Class A | 59,011 | 1,731 | |
Expeditors International | |||
of Washington Inc. | 41,360 | 1,636 | |
Rockwell Collins Inc. | 27,714 | 1,612 | |
* | Stericycle Inc. | 16,964 | 1,582 |
Southwest Airlines Co. | 146,124 | 1,496 | |
Flowserve Corp. | 9,868 | 1,449 | |
L-3 Communications | |||
Holdings Inc. | 18,577 | 1,423 | |
Textron Inc. | 55,563 | 1,377 | |
Joy Global Inc. | 20,889 | 1,332 | |
Pall Corp. | 21,873 | 1,318 | |
Equifax Inc. | 23,567 | 1,275 | |
Masco Corp. | 70,319 | 1,172 | |
* | Quanta Services Inc. | 42,369 | 1,156 |
* | Jacobs Engineering | ||
Group Inc. | 25,882 | 1,102 | |
Iron Mountain Inc. | 32,842 | 1,020 | |
Xylem Inc. | 36,556 | 991 | |
Snap-on Inc. | 11,567 | 914 | |
Robert Half International Inc. | 27,801 | 885 | |
Cintas Corp. | 21,002 | 859 | |
Dun & Bradstreet Corp. | 8,896 | 700 | |
Avery Dennison Corp. | 19,587 | 684 | |
Ryder System Inc. | 10,104 | 505 | |
Pitney Bowes Inc. | 40,481 | 431 | |
254,856 | |||
Information Technology (19.1%) | |||
Apple Inc. | 185,813 | 99,044 | |
International Business | |||
Machines Corp. | 209,787 | 40,185 | |
Microsoft Corp. | 1,496,141 | 39,992 | |
* | Google Inc. Class A | 52,564 | 37,287 |
60
Tax-Managed Growth and Income Fund | |||
Market | |||
Value | |||
Shares | ($000) | ||
Oracle Corp. | 742,412 | 24,737 | |
QUALCOMM Inc. | 336,464 | 20,867 | |
Cisco Systems Inc. | 1,048,625 | 20,605 | |
Intel Corp. | 982,780 | 20,275 | |
Visa Inc. Class A | 102,885 | 15,595 | |
* | eBay Inc. | 229,981 | 11,734 |
* | EMC Corp. | 416,030 | 10,526 |
Mastercard Inc. Class A | 21,096 | 10,364 | |
Accenture plc Class A | 126,089 | 8,385 | |
Texas Instruments Inc. | 221,640 | 6,858 | |
Hewlett-Packard Co. | 388,898 | 5,542 | |
Automatic Data | |||
Processing Inc. | 96,024 | 5,474 | |
* | Cognizant Technology | ||
Solutions Corp. Class A | 59,238 | 4,387 | |
* | Salesforce.com Inc. | 25,842 | 4,344 |
* | Yahoo! Inc. | 205,561 | 4,091 |
* | Adobe Systems Inc. | 97,930 | 3,690 |
Corning Inc. | 291,919 | 3,684 | |
Broadcom Corp. Class A | 102,350 | 3,399 | |
Intuit Inc. | 54,972 | 3,271 | |
TE Connectivity Ltd. | 83,355 | 3,094 | |
Motorola Solutions Inc. | 55,568 | 3,094 | |
Dell Inc. | 288,501 | 2,923 | |
Applied Materials Inc. | 236,295 | 2,703 | |
* | Symantec Corp. | 137,552 | 2,587 |
Analog Devices Inc. | 59,484 | 2,502 | |
* | Citrix Systems Inc. | 37,003 | 2,433 |
* | NetApp Inc. | 71,018 | 2,383 |
Altera Corp. | 63,321 | 2,181 | |
* | Fiserv Inc. | 26,367 | 2,084 |
* | SanDisk Corp. | 47,785 | 2,081 |
* | Teradata Corp. | 33,359 | 2,065 |
Amphenol Corp. Class A | 31,741 | 2,054 | |
Seagate Technology plc | 66,317 | 2,021 | |
* | Red Hat Inc. | 38,127 | 2,019 |
* | Juniper Networks Inc. | 102,098 | 2,008 |
Paychex Inc. | 63,825 | 1,987 | |
Xilinx Inc. | 51,636 | 1,854 | |
Western Digital Corp. | 43,361 | 1,842 | |
Fidelity National Information | |||
Services Inc. | 49,241 | 1,714 | |
Xerox Corp. | 249,620 | 1,702 | |
Western Union Co. | 118,122 | 1,608 | |
* | Autodesk Inc. | 44,433 | 1,571 |
KLA-Tencor Corp. | 32,859 | 1,569 | |
Linear Technology Corp. | 45,747 | 1,569 | |
NVIDIA Corp. | 123,281 | 1,515 | |
* | F5 Networks Inc. | 15,594 | 1,515 |
CA Inc. | 66,400 | 1,459 | |
* | Akamai Technologies Inc. | 34,953 | 1,430 |
* | Micron Technology Inc. | 200,661 | 1,274 |
Microchip Technology Inc. | 38,599 | 1,258 | |
Computer Sciences Corp. | 30,584 | 1,225 | |
* | Lam Research Corp. | 33,704 | 1,218 |
* | VeriSign Inc. | 30,731 | 1,193 |
Market | |||
Value | |||
Shares | ($000) | ||
* | BMC Software Inc. | 28,145 | 1,116 |
Harris Corp. | 22,520 | 1,103 | |
* | Electronic Arts Inc. | 60,288 | 876 |
* | LSI Corp. | 109,032 | 772 |
Molex Inc. | 27,322 | 747 | |
Jabil Circuit Inc. | 36,840 | 711 | |
Total System Services Inc. | 31,698 | 679 | |
FLIR Systems Inc. | 29,496 | 658 | |
* | JDS Uniphase Corp. | 46,691 | 632 |
SAIC Inc. | 55,768 | 631 | |
* | Teradyne Inc. | 36,900 | 623 |
* | First Solar Inc. | 12,133 | 375 |
* | Advanced Micro | ||
Devices Inc. | 121,345 | 291 | |
479,285 | |||
Materials (3.6%) | |||
Monsanto Co. | 105,510 | 9,987 | |
EI du Pont de | |||
Nemours & Co. | 184,047 | 8,277 | |
Dow Chemical Co. | 237,145 | 7,665 | |
Praxair Inc. | 58,734 | 6,428 | |
Freeport-McMoRan | |||
Copper & Gold Inc. | 187,731 | 6,420 | |
Newmont Mining Corp. | 98,179 | 4,559 | |
LyondellBasell Industries | |||
NV Class A | 74,992 | 4,281 | |
PPG Industries Inc. | 30,324 | 4,104 | |
Ecolab Inc. | 52,057 | 3,743 | |
Air Products & Chemicals Inc. | 42,110 | 3,538 | |
International Paper Co. | 86,618 | 3,451 | |
Mosaic Co. | 54,615 | 3,093 | |
Nucor Corp. | 62,727 | 2,709 | |
Sherwin-Williams Co. | 16,954 | 2,608 | |
CF Industries Holdings Inc. | 12,409 | 2,521 | |
Eastman Chemical Co. | 30,343 | 2,065 | |
Alcoa Inc. | 210,603 | 1,828 | |
Sigma-Aldrich Corp. | 23,759 | 1,748 | |
FMC Corp. | 27,128 | 1,588 | |
Ball Corp. | 30,351 | 1,358 | |
Vulcan Materials Co. | 25,530 | 1,329 | |
Airgas Inc. | 13,797 | 1,260 | |
MeadWestvaco Corp. | 34,655 | 1,104 | |
Cliffs Natural Resources Inc. | 28,069 | 1,082 | |
International Flavors & | |||
Fragrances Inc. | 16,054 | 1,068 | |
* | Owens-Illinois Inc. | 32,385 | 689 |
Bemis Co. Inc. | 20,450 | 684 | |
Sealed Air Corp. | 38,892 | 681 | |
United States Steel Corp. | 28,380 | 677 | |
Allegheny Technologies Inc. | 21,120 | 641 | |
91,186 | |||
Telecommunication Services (3.1%) | |||
AT&T Inc. | 1,121,884 | 37,819 | |
Verizon | |||
Communications Inc. | 563,620 | 24,388 | |
CenturyLink Inc. | 123,326 | 4,825 |
61
Tax-Managed Growth and Income Fund | |||
Market | |||
Value | |||
Shares | ($000) | ||
* | Crown Castle | ||
International Corp. | 57,954 | 4,182 | |
* | Sprint Nextel Corp. | 594,037 | 3,368 |
Windstream Corp. | 116,958 | 968 | |
Frontier | |||
Communications Corp. | 196,622 | 842 | |
* | MetroPCS | ||
Communications Inc. | 63,428 | 630 | |
77,022 | |||
Utilities (3.4%) | |||
Duke Energy Corp. | 138,999 | 8,868 | |
Southern Co. | 172,577 | 7,388 | |
Dominion Resources Inc. | 113,646 | 5,887 | |
NextEra Energy Inc. | 83,655 | 5,788 | |
Exelon Corp. | 168,930 | 5,024 | |
American Electric | |||
Power Co. Inc. | 95,952 | 4,095 | |
FirstEnergy Corp. | 82,604 | 3,450 | |
PG&E Corp. | 84,877 | 3,410 | |
PPL Corp. | 115,013 | 3,293 | |
Consolidated Edison Inc. | 57,832 | 3,212 | |
Sempra Energy | 44,452 | 3,153 | |
Public Service Enterprise | |||
Group Inc. | 99,989 | 3,060 | |
Edison International | 64,370 | 2,909 | |
Xcel Energy Inc. | 96,379 | 2,574 | |
Northeast Utilities | 62,057 | 2,425 | |
Entergy Corp. | 35,035 | 2,234 | |
DTE Energy Co. | 33,979 | 2,040 | |
ONEOK Inc. | 40,424 | 1,728 | |
Wisconsin Energy Corp. | 45,542 | 1,678 | |
CenterPoint Energy Inc. | 84,288 | 1,623 | |
NiSource Inc. | 61,058 | 1,520 | |
Ameren Corp. | 47,821 | 1,469 | |
NRG Energy Inc. | 63,574 | 1,462 | |
AES Corp. | 121,905 | 1,304 | |
CMS Energy Corp. | 52,075 | 1,270 | |
SCANA Corp. | 26,088 | 1,191 | |
Pinnacle West Capital Corp. | 21,840 | 1,113 | |
AGL Resources Inc. | 23,389 | 935 | |
Pepco Holdings Inc. | 45,455 | 891 | |
Integrys Energy Group Inc. | 15,473 | 808 | |
TECO Energy Inc. | 40,750 | 683 | |
86,485 | |||
Total Investments (100.0%) | |||
(Cost $1,959,194) | 2,516,036 |
Market | |
Value | |
($000) | |
Other Assets and Liabilities (0.0%) | |
Other Assets | 10,499 |
Liabilities | (10,618) |
(119) | |
Net Assets (100%) | 2,515,917 |
At December 31, 2012, net assets consisted of: | |
Amount | |
($000) | |
Paid-in Capital | 1,985,565 |
Overdistributed Net Investment Income | (3,097) |
Accumulated Net Realized Losses | (23,393) |
Unrealized Appreciation (Depreciation) | 556,842 |
Net Assets | 2,515,917 |
Admiral Shares—Net Assets | |
Applicable to 34,554,438 outstanding | |
$.001 par value shares of beneficial | |
interest (unlimited authorization) | 2,207,543 |
Net Asset Value Per Share— | |
Admiral Shares | $63.89 |
Institutional Shares—Net Assets | |
Applicable to 9,919,453 outstanding | |
$.001 par value shares of beneficial | |
interest (unlimited authorization) | 308,374 |
Net Asset Value Per Share— | |
Institutional Shares | $31.09 |
See Note A in Notes to Financial Statements.
* Non-income-producing security.
REIT—Real Estate Investment Trust.
See accompanying Notes, which are an integral part of the Financial Statements.
62
Tax-Managed Growth and Income Fund | |
Statement of Operations | |
Year Ended | |
December 31, 2012 | |
($000) | |
Investment Income | |
Income | |
Dividends | 57,205 |
Interest1 | 2 |
Total Income | 57,207 |
Expenses | |
The Vanguard Group—Note B | |
Investment Advisory Services | 246 |
Management and Administrative—Admiral Shares | 1,797 |
Management and Administrative—Institutional Shares | 155 |
Marketing and Distribution—Admiral Shares | 497 |
Marketing and Distribution—Institutional Shares | 48 |
Custodian Fees | 44 |
Auditing Fees | 28 |
Shareholders’ Reports—Admiral Shares | 31 |
Shareholders’ Reports—Institutional Shares | — |
Trustees’ Fees and Expenses | 2 |
Total Expenses | 2,848 |
Net Investment Income | 54,359 |
Realized Net Gain (Loss) on Investment Securities Sold | 64,936 |
Change in Unrealized Appreciation (Depreciation) of Investment Securities | 237,932 |
Net Increase (Decrease) in Net Assets Resulting from Operations | 357,227 |
1 Interest income from an affiliated company of the fund was $2,000. |
See accompanying Notes, which are an integral part of the Financial Statements.
63
Tax-Managed Growth and Income Fund | ||
Statement of Changes in Net Assets | ||
Year Ended December 31, | ||
2012 | 2011 | |
($000) | ($000) | |
Increase (Decrease) in Net Assets | ||
Operations | ||
Net Investment Income | 54,359 | 45,068 |
Realized Net Gain (Loss) | 64,936 | (28,111) |
Change in Unrealized Appreciation (Depreciation) | 237,932 | 27,238 |
Net Increase (Decrease) in Net Assets Resulting from Operations | 357,227 | 44,195 |
Distributions | ||
Net Investment Income | ||
Investor Shares | — | (2,110) |
Admiral Shares | (47,505) | (37,797) |
Institutional Shares | (6,710) | (5,052) |
Realized Capital Gain | ||
Investor Shares | — | — |
Admiral Shares | — | — |
Institutional Shares | — | — |
Total Distributions | (54,215) | (44,959) |
Capital Share Transactions | ||
Investor Shares | — | (521,190) |
Admiral Shares | (60,751) | 418,062 |
Institutional Shares | 5,184 | 44,908 |
Net Increase (Decrease) from Capital Share Transactions | (55,567) | (58,220) |
Total Increase (Decrease) | 247,445 | (58,984) |
Net Assets | ||
Beginning of Period | 2,268,472 | 2,327,456 |
End of Period1 | 2,515,917 | 2,268,472 |
1 Net Assets—End of Period includes undistributed (overdistributed) net investment income of ($3,097,000) and ($3,241,000).
See accompanying Notes, which are an integral part of the Financial Statements.
64
Tax-Managed Growth and Income Fund | |||||
Financial Highlights | |||||
Admiral Shares | |||||
For a Share Outstanding | Year Ended December 31, | ||||
Throughout Each Period | 2012 | 2011 | 2010 | 2009 | 2008 |
Net Asset Value, Beginning of Period | $56.33 | $56.31 | $49.94 | $40.39 | $65.69 |
Investment Operations | |||||
Net Investment Income | 1.365 | 1.104 | 1.017 | 1.036 | 1.212 |
Net Realized and Unrealized Gain (Loss) | |||||
on Investments | 7.559 | .018 | 6.374 | 9.532 | (25.276) |
Total from Investment Operations | 8.924 | 1.122 | 7.391 | 10.568 | (24.064) |
Distributions | |||||
Dividends from Net Investment Income | (1.364) | (1.102) | (1.021) | (1.018) | (1.236) |
Distributions from Realized Capital Gains | — | — | — | — | — |
Total Distributions | (1.364) | (1.102) | (1.021) | (1.018) | (1.236) |
Net Asset Value, End of Period | $63.89 | $56.33 | $56.31 | $49.94 | $40.39 |
Total Return1 | 15.91% | 2.00% | 14.99% | 26.54% | -37.00% |
Ratios/Supplemental Data | |||||
Net Assets, End of Period (Millions) | $2,208 | $2,001 | $1,614 | $1,466 | $1,203 |
Ratio of Total Expenses to | |||||
Average Net Assets | 0.12% | 0.12% | 0.12% | 0.15% | 0.10% |
Ratio of Net Investment Income to | |||||
Average Net Assets | 2.19% | 1.93% | 1.98% | 2.40% | 2.19% |
Portfolio Turnover Rate | 5% | 6% | 6% | 38% | 8% |
1 Total returns do not include transaction or account service fees that may have applied in the periods shown. Fund prospectuses provide information about any applicable transaction and account service fees.
See accompanying Notes, which are an integral part of the Financial Statements.
65
Tax-Managed Growth and Income Fund | |||||
Financial Highlights | |||||
Institutional Shares | |||||
For a Share Outstanding | Year Ended December 31, | ||||
Throughout Each Period | 2012 | 2011 | 2010 | 2009 | 2008 |
Net Asset Value, Beginning of Period | $27.41 | $27.40 | $24.30 | $19.65 | $31.96 |
Investment Operations | |||||
Net Investment Income | .677 | .549 | .506 | .515 | .598 |
Net Realized and Unrealized Gain (Loss) | |||||
on Investments | 3.679 | .009 | 3.101 | 4.642 | (12.299) |
Total from Investment Operations | 4.356 | .558 | 3.607 | 5.157 | (11.701) |
Distributions | |||||
Dividends from Net Investment Income | (.676) | (.548) | (.507) | (.507) | (.609) |
Distributions from Realized Capital Gains | — | — | — | — | — |
Total Distributions | (.676) | (.548) | (.507) | (.507) | (.609) |
Net Asset Value, End of Period | $31.09 | $27.41 | $27.40 | $24.30 | $19.65 |
Total Return1 | 15.96% | 2.05% | 15.04% | 26.63% | -36.98% |
Ratios/Supplemental Data | |||||
Net Assets, End of Period (Millions) | $308 | $267 | $225 | $200 | $263 |
Ratio of Total Expenses to | |||||
Average Net Assets | 0.08% | 0.08% | 0.08% | 0.09% | 0.07% |
Ratio of Net Investment Income to | |||||
Average Net Assets | 2.23% | 1.97% | 2.02% | 2.46% | 2.22% |
Portfolio Turnover Rate | 5% | 6% | 6% | 38% | 8% |
1 Total returns do not include transaction fees that may have applied in the periods shown. Fund prospectuses provide information about any applicable transaction fees.
See accompanying Notes, which are an integral part of the Financial Statements.
66
Tax-Managed Growth and Income Fund
Notes to Financial Statements
Vanguard Tax-Managed Growth and Income Fund is registered under the Investment Company Act of 1940 as an open-end investment company, or mutual fund. The fund offers two classes of shares: Admiral Shares and Institutional Shares. Admiral Shares and Institutional Shares are designed for investors who meet certain administrative, service, and account-size criteria.
A. The following significant accounting policies conform to generally accepted accounting principles for U.S. mutual funds. The fund consistently follows such policies in preparing its financial statements.
1. Security Valuation: Securities are valued as of the close of trading on the New York Stock Exchange (generally 4 p.m., Eastern time) on the valuation date. Equity securities are valued at the latest quoted sales prices or official closing prices taken from the primary market in which each security trades; such securities not traded on the valuation date are valued at the mean of the latest quoted bid and asked prices. Securities for which market quotations are not readily available, or whose values have been materially affected by events occurring before the fund’s pricing time but after the close of the securities’ primary markets, are valued by methods deemed by the board of trustees to represent fair value.
2. Federal Income Taxes: The fund intends to continue to qualify as a regulated investment company and distribute all of its taxable income. Management has analyzed the fund’s tax positions taken for all open federal income tax years (December 31, 2009–2012), and has concluded that no provision for federal income tax is required in the fund’s financial statements.
3. Distributions: Distributions to shareholders are recorded on the ex-dividend date.
4. Other: Dividend income is recorded on the ex-dividend date. Interest income includes income distributions received from Vanguard Market Liquidity Fund and is accrued daily. Security transactions are accounted for on the date securities are bought or sold. Costs used to determine realized gains (losses) on the sale of investment securities are those of the specific securities sold.
Each class of shares has equal rights as to assets and earnings, except that each class separately bears certain class-specific expenses related to maintenance of shareholder accounts (included in Management and Administrative expenses) and shareholder reporting. Marketing and distribution expenses are allocated to each class of shares based on a method approved by the board of trustees. Income, other non-class-specific expenses, and gains and losses on investments are allocated to each class of shares based on its relative net assets.
B. The Vanguard Group furnishes at cost investment advisory, corporate management, administrative, marketing, and distribution services. The costs of such services are allocated to the fund under methods approved by the board of trustees. The fund has committed to provide up to 0.40% of its net assets in capital contributions to Vanguard. At December 31, 2012, the fund had contributed capital of $348,000 to Vanguard (included in Other Assets), representing 0.01% of the fund’s net assets and 0.14% of Vanguard’s capitalization. The fund’s trustees and officers are also directors and officers of Vanguard.
67
Tax-Managed Growth and Income Fund
C. 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—Quoted prices in active markets for identical securities.
Level 2—Other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.).
Level 3—Significant unobservable inputs (including the fund’s own assumptions used to determine the fair value of investments).
At December 31, 2012, 100% of the market value of the fund’s investments was determined based on Level 1 inputs.
D. Distributions are determined on a tax basis and may differ from net investment income and realized capital gains for financial reporting purposes. Differences may be permanent or temporary. Permanent differences are reclassified among capital accounts in the financial statements to reflect their tax character. Temporary differences arise when certain items of income, expense, gain, or loss are recognized in different periods for financial statement and tax purposes; these differences will reverse at some time in the future. Differences in classification may also result from the treatment of short-term gains as ordinary income for tax purposes.
For tax purposes, at December 31, 2012, the fund had $425,000 of ordinary income available for distribution. The fund used capital loss carryforwards of $53,818,000 to offset taxable capital gains realized during the year ended December 31, 2012. At December 31, 2012, the fund had available capital losses totaling $23,385,000 to offset future net capital gains through December 31, 2016.
At December 31, 2012, the cost of investment securities for tax purposes was $1,959,202,000. Net unrealized appreciation of investment securities for tax purposes was $556,834,000, consisting of unrealized gains of $764,494,000 on securities that had risen in value since their purchase and $207,660,000 in unrealized losses on securities that had fallen in value since their purchase.
E. During the year ended December 31, 2012, the fund purchased $120,216,000 of investment securities and sold $173,713,000 of investment securities, other than temporary cash investments.
68
Tax-Managed Growth and Income Fund
F. Capital share transactions for each class of shares were:
Year Ended December 31, | ||||
2012 | 2011 | |||
Amount | Shares | Amount | Shares | |
($000) | (000) | ($000) | (000) | |
Investor Shares | ||||
Issued | — | — | 9,282 | 325 |
Issued in Lieu of Cash Distributions | — | — | 1,877 | 65 |
Redeemed1,2 | — | — | (532,349) | (18,237) |
Net Increase (Decrease)—Investor Shares | — | — | (521,190) | (17,847) |
Admiral Shares | ||||
Issued 2 | 83,163 | 1,337 | 578,240 | 9,701 |
Issued in Lieu of Cash Distributions | 37,977 | 605 | 30,196 | 537 |
Redeemed1 | (181,891) | (2,915) | (190,374) | (3,366) |
Net Increase (Decrease)—Admiral Shares | (60,751) | (973) | 418,062 | 6,872 |
Institutional Shares | ||||
Issued | 20,495 | 670 | 54,768 | 1,918 |
Issued in Lieu of Cash Distributions | 5,111 | 167 | 3,509 | 128 |
Redeemed1 | (20,422) | (664) | (13,369) | (506) |
Net Increase (Decrease) —Institutional Shares | 5,184 | 173 | 44,908 | 1,540 |
1 Net of redemption fees for fiscal 2011 of $66,000 (fund totals). Effective April 28, 2011, the redemption fee was eliminated.
2 For fiscal 2011, Investor Shares redeemed and Admiral Shares issued reflect $510,049,000 from the conversion of 17,461,000 Investor Shares to 8,497,000 Admiral Shares at the close of business on May 13, 2011.
G. In preparing the financial statements as of December 31, 2012, management considered the impact of subsequent events for potential recognition or disclosure in these financial statements.
69
Tax-Managed Capital Appreciation Fund
Fund Profile | ||
As of December 31, 2012 | ||
Share-Class Characteristics | ||
Admiral | Institutional | |
Shares | Shares | |
Ticker Symbol | VTCLX | VTCIX |
Expense Ratio1 | 0.12% | 0.08% |
30-Day SEC Yield | 1.91% | 1.95% |
Portfolio Characteristics | |||
DJ U.S. | |||
Total | |||
Russell | Market | ||
1000 | FA | ||
Fund | Index | Index | |
Number of Stocks | 630 | 991 | 3,604 |
Median Market Cap | $42.5B | $42.8B | $35.1B |
Price/Earnings Ratio | 16.2x | 16.4x | 16.8x |
Price/Book Ratio | 2.2x | 2.2x | 2.1x |
Return on Equity | 18.0% | 17.9% | 17.1% |
Earnings Growth Rate | 10.3% | 10.0% | 9.7% |
Dividend Yield | 2.0% | 2.2% | 2.1% |
Foreign Holdings | 0.0% | 0.0% | 0.0% |
Turnover Rate | 3% | — | — |
Short-Term Reserves | 0.0% | — | — |
Sector Diversification (% of equity exposure) | |||
DJ U.S. | |||
Total | |||
Russell | Market | ||
1000 | FA | ||
Fund | Index | Index | |
Consumer Discretionary | 12.7% | 12.4% | 12.3% |
Consumer Staples | 10.1 | 9.8 | 9.3 |
Energy | 10.3 | 10.3 | 10.2 |
Financials | 16.0 | 16.3 | 16.9 |
Health Care | 11.9 | 11.7 | 11.7 |
Industrials | 11.1 | 10.9 | 11.1 |
Information Technology | 18.4 | 18.3 | 18.3 |
Materials | 3.8 | 4.0 | 4.0 |
Telecommunication | |||
Services | 2.9 | 2.9 | 2.7 |
Utilities | 2.8 | 3.4 | 3.5 |
Volatility Measures | ||
DJ U.S. | ||
Total | ||
Russell | Market | |
1000 | FA | |
Index | Index | |
R-Squared | 1.00 | 1.00 |
Beta | 1.02 | 1.00 |
These measures show the degree and timing of the fund’s fluctuations compared with the indexes over 36 months.
Ten Largest Holdings (% of total net assets) | ||
Apple Inc. | Computer Hardware | 3.5% |
Exxon Mobil Corp. | Integrated Oil & Gas | 2.9 |
Chevron Corp. | Integrated Oil & Gas | 1.5 |
General Electric Co. | Industrial | |
Conglomerates | 1.5 | |
International Business | IT Consulting & | |
Machines Corp. | Other Services | 1.5 |
AT&T Inc. | Integrated | |
Telecommunication | ||
Services | 1.4 | |
Johnson & Johnson | Pharmaceuticals | 1.4 |
Microsoft Corp. | System Software | 1.4 |
Procter & Gamble Co. | Household Products | 1.3 |
Google Inc. Class A | Internet Software & | |
Services | 1.3 | |
Top Ten | 17.7% |
The holdings listed exclude any temporary cash investments and equity index products.
Investment Focus
1 The expense ratios shown are from the prospectus dated April 26, 2012, and represent estimated costs for the current fiscal year. For the fiscal year ended December 31, 2012, the expense ratios were 0.12% for Admiral Shares and 0.08% for Institutional Shares.
70
Tax-Managed Capital Appreciation Fund
Performance Summary
All of the returns in this report represent past performance, which is not a guarantee of future results that may be achieved by the fund. (Current performance may be lower or higher than the performance data cited. For performance data current to the most recent month-end, visit our website at vanguard.com/performance.) Note, too, that both investment returns and principal value can fluctuate widely, so an investor’s shares, when sold, could be worth more or less than their original cost. The returns shown do not reflect taxes that a shareholder would pay on fund distributions or on the sale of fund shares.
Cumulative Performance: December 31, 2002, Through December 31, 2012
Initial Investment of $10,000
Average Annual Total Returns | ||||
Periods Ended December 31, 2012 | ||||
Final Value | ||||
One | Five | Ten | of a $10,000 | |
Year | Years | Years | Investment | |
Tax-Managed Capital Appreciation | ||||
Fund Admiral Shares | 16.35% | 1.98% | 7.81% | $21,220 |
Russell 1000 Index | 16.42 | 1.92 | 7.52 | 20,649 |
Multi-Cap Core Funds Average | 14.93 | 0.66 | 6.67 | 19,077 |
Dow Jones U.S. Total Stock Market | ||||
Float Adjusted Index | 16.38 | 2.21 | 7.95 | 21,484 |
Multi-Cap Core Funds Average: Derived from data provided by Lipper Inc.
Final Value | ||||
One | Five | Ten | of a $5,000,000 | |
Year | Years | Years | Investment | |
Tax-Managed Capital Appreciation Fund | ||||
Institutional Shares | 16.41% | 2.02% | 7.85% | $10,648,863 |
Russell 1000 Index | 16.42 | 1.92 | 7.52 | 10,324,493 |
Dow Jones U.S. Total Stock Market | ||||
Float Adjusted Index | 16.38 | 2.21 | 7.95 | 10,742,011 |
See Financial Highlights for dividend and capital gains information.
71
Tax-Managed Capital Appreciation Fund
Fiscal-Year Total Returns (%): December 31, 2002, Through December 31, 2012
Tax-Managed Capital Appreciation Fund Admiral Shares |
Russell 1000 Index |
72
Tax-Managed Capital Appreciation Fund
Financial Statements
Statement of Net Assets
As of December 31, 2012
The fund reports a complete list of its holdings in regulatory filings four times in each fiscal year, at the quarter-ends. For the second and fourth fiscal quarters, the lists appear in the fund’s semiannual and annual reports to shareholders. For the first and third fiscal quarters, the fund files the lists with the Securities and Exchange Commission on Form N-Q. Shareholders can look up the fund’s Forms N-Q on the SEC’s website at sec.gov. Forms N-Q may also be reviewed and copied at the SEC’s Public Reference Room (see the back cover of this report for further information).
Market | |||
Value | |||
Shares | ($000) | ||
Common Stocks (99.9%) | |||
Consumer Discretionary (12.7%) | |||
Home Depot Inc. | 463,400 | 28,661 | |
Comcast Corp. Class A | 755,371 | 28,236 | |
* | Amazon.com Inc. | 109,740 | 27,560 |
Walt Disney Co. | 542,636 | 27,018 | |
McDonald’s Corp. | 306,260 | 27,015 | |
News Corp. Class A | 676,330 | 17,273 | |
Ford Motor Co. | 1,209,933 | 15,669 | |
Time Warner Inc. | 315,349 | 15,083 | |
Lowe’s Cos. Inc. | 397,100 | 14,105 | |
Starbucks Corp. | 250,852 | 13,451 | |
Target Corp. | 220,900 | 13,071 | |
NIKE Inc. Class B | 243,200 | 12,549 | |
* | DIRECTV | 225,409 | 11,307 |
Yum! Brands Inc. | 159,210 | 10,572 | |
Time Warner Cable Inc. | 94,542 | 9,189 | |
Viacom Inc. Class B | 171,033 | 9,020 | |
* | General Motors Co. | 299,485 | 8,634 |
Johnson Controls Inc. | 237,600 | 7,294 | |
McGraw-Hill Cos. Inc. | 117,000 | 6,396 | |
Coach Inc. | 111,500 | 6,189 | |
* | AutoZone Inc. | 16,290 | 5,774 |
* | Bed Bath & Beyond Inc. | 100,615 | 5,625 |
Sirius XM Radio Inc. | 1,851,325 | 5,350 | |
* | Liberty Interactive Corp. | ||
Class A | 269,426 | 5,302 | |
* | Discovery | ||
Communications Inc. | 90,137 | 5,273 | |
Ross Stores Inc. | 96,892 | 5,247 | |
* | O’Reilly Automotive Inc. | 57,848 | 5,173 |
Starwood Hotels & Resorts | |||
Worldwide Inc. | 89,818 | 5,152 | |
CBS Corp. Class B | 127,174 | 4,839 | |
* | CarMax Inc. | 128,143 | 4,810 |
Marriott International Inc. | |||
Class A | 125,975 | 4,695 | |
Las Vegas Sands Corp. | 100,440 | 4,636 | |
Ralph Lauren Corp. Class A | 30,800 | 4,618 | |
Gap Inc. | 148,547 | 4,611 |
Market | |||
Value | |||
Shares | ($000) | ||
PVH Corp. | 40,431 | 4,488 | |
* | Liberty Global Inc. | 75,207 | 4,418 |
* | Dollar Tree Inc. | 107,938 | 4,378 |
* | BorgWarner Inc. | 61,100 | 4,376 |
PetSmart Inc. | 62,000 | 4,237 | |
* | PulteGroup Inc. | 222,730 | 4,045 |
Expedia Inc. | 62,306 | 3,829 | |
* | priceline.com Inc. | 6,075 | 3,774 |
Kohl’s Corp. | 86,250 | 3,707 | |
* | Liberty Media Corp. - | ||
Liberty Capital Class A | 30,877 | 3,582 | |
* | NVR Inc. | 3,840 | 3,533 |
* | MGM Resorts International | 298,690 | 3,477 |
Darden Restaurants Inc. | 77,080 | 3,474 | |
* | Toll Brothers Inc. | 106,560 | 3,445 |
Scripps Networks | |||
Interactive Inc. Class A | 59,478 | 3,445 | |
* | TripAdvisor Inc. | 80,406 | 3,374 |
TJX Cos. Inc. | 79,152 | 3,360 | |
Advance Auto Parts Inc. | 46,302 | 3,350 | |
Interpublic Group | |||
of Cos. Inc. | 294,400 | 3,244 | |
* | Dollar General Corp. | 71,400 | 3,148 |
* | Mohawk Industries Inc. | 34,700 | 3,139 |
Harley-Davidson Inc. | 56,800 | 2,774 | |
Hasbro Inc. | 77,100 | 2,768 | |
Brinker International Inc. | 88,250 | 2,735 | |
Omnicom Group Inc. | 50,600 | 2,528 | |
DR Horton Inc. | 126,366 | 2,500 | |
* | AutoNation Inc. | 58,225 | 2,312 |
Virgin Media Inc. | 62,269 | 2,288 | |
Foot Locker Inc. | 70,600 | 2,268 | |
* | Liberty Global Inc. Class A | 35,738 | 2,251 |
Macy’s Inc. | 56,800 | 2,216 | |
* | Lamar Advertising Co. | ||
Class A | 56,186 | 2,177 | |
Lennar Corp. Class A | 54,600 | 2,111 | |
John Wiley & Sons Inc. | |||
Class A | 53,700 | 2,091 | |
Gentex Corp. | 107,252 | 2,018 | |
* | Hanesbrands Inc. | 55,286 | 1,980 |
73
Tax-Managed Capital Appreciation Fund | |||
Market | |||
Value | |||
Shares | ($000) | ||
Harman International | |||
Industries Inc. | 43,600 | 1,946 | |
Weight Watchers | |||
International Inc. | 36,200 | 1,895 | |
Nordstrom Inc. | 32,300 | 1,728 | |
American Eagle | |||
Outfitters Inc. | 66,991 | 1,374 | |
* | Liberty Ventures Class A | 18,529 | 1,256 |
Abercrombie & Fitch Co. | 23,300 | 1,118 | |
Aaron’s Inc. | 37,182 | 1,052 | |
Comcast Corp. | 26,219 | 943 | |
* | Sears Holdings Corp. | 21,900 | 906 |
International Game | |||
Technology | 51,499 | 730 | |
* | AMC Networks Inc. Class A | 13,586 | 673 |
* | Madison Square | ||
Garden Co. Class A | 13,586 | 603 | |
Chico’s FAS Inc. | 28,340 | 523 | |
GameStop Corp. Class A | 20,430 | 513 | |
* | Apollo Group Inc. Class A | 23,829 | 498 |
Best Buy Co. Inc. | 41,641 | 493 | |
Mattel Inc. | 12,557 | 460 | |
Staples Inc. | 28,295 | 323 | |
Lennar Corp. Class B | 8,300 | 253 | |
Wynn Resorts Ltd. | 2,000 | 225 | |
Cablevision Systems Corp. | |||
Class A | 14,944 | 223 | |
Carnival Corp. | 5,800 | 213 | |
510,185 | |||
Consumer Staples (10.1%) | |||
Procter & Gamble Co. | 796,678 | 54,087 | |
Coca-Cola Co. | 1,145,800 | 41,535 | |
Philip Morris | |||
International Inc. | 491,809 | 41,135 | |
Wal-Mart Stores Inc. | 502,428 | 34,281 | |
PepsiCo Inc. | 469,139 | 32,103 | |
CVS Caremark Corp. | 404,754 | 19,570 | |
Costco Wholesale Corp. | 144,000 | 14,223 | |
Colgate-Palmolive Co. | 115,900 | 12,116 | |
Altria Group Inc. | 380,123 | 11,943 | |
Walgreen Co. | 302,300 | 11,188 | |
Mondelez International Inc. | |||
Class A | 351,526 | 8,953 | |
Archer-Daniels-Midland Co. | 243,273 | 6,663 | |
Kroger Co. | 231,700 | 6,029 | |
Estee Lauder Cos. Inc. | |||
Class A | 100,700 | 6,028 | |
Kraft Foods Group Inc. | 117,175 | 5,328 | |
Hershey Co. | 72,600 | 5,243 | |
Coca-Cola Enterprises Inc. | 153,000 | 4,855 | |
Dr Pepper Snapple | |||
Group Inc. | 109,700 | 4,847 | |
Clorox Co. | 66,120 | 4,841 | |
Brown-Forman Corp. | |||
Class B | 74,469 | 4,710 | |
Bunge Ltd. | 62,800 | 4,565 |
Market | |||
Value | |||
Shares | ($000) | ||
McCormick & Co. Inc. | 70,300 | 4,466 | |
JM Smucker Co. | 49,024 | 4,228 | |
Church & Dwight Co. Inc. | 76,988 | 4,124 | |
* | Monster Beverage Corp. | 71,200 | 3,765 |
* | Constellation Brands Inc. | ||
Class A | 105,170 | 3,722 | |
Kimberly-Clark Corp. | 43,340 | 3,659 | |
Energizer Holdings Inc. | 45,169 | 3,613 | |
General Mills Inc. | 88,800 | 3,588 | |
* | Ralcorp Holdings Inc. | 39,783 | 3,567 |
Ingredion Inc. | 54,900 | 3,537 | |
Tyson Foods Inc. Class A | 177,944 | 3,452 | |
Campbell Soup Co. | 97,400 | 3,398 | |
Hormel Foods Corp. | 105,200 | 3,283 | |
Safeway Inc. | 170,462 | 3,084 | |
Molson Coors Brewing Co. | |||
Class B | 71,900 | 3,077 | |
Whole Foods Market Inc. | 32,840 | 2,999 | |
* | Smithfield Foods Inc. | 137,950 | 2,976 |
* | Dean Foods Co. | 163,416 | 2,698 |
Mead Johnson Nutrition Co. | 35,325 | 2,328 | |
* | Green Mountain | ||
Coffee Roasters Inc. | 52,509 | 2,172 | |
Kellogg Co. | 22,800 | 1,273 | |
Sysco Corp. | 17,111 | 542 | |
Nu Skin Enterprises Inc. | |||
Class A | 11,200 | 415 | |
ConAgra Foods Inc. | 11,200 | 330 | |
Hillshire Brands Co. | 8,920 | 251 | |
404,790 | |||
Energy (10.3%) | |||
Exxon Mobil Corp. | 1,327,064 | 114,857 | |
Chevron Corp. | 569,538 | 61,590 | |
Schlumberger Ltd. | 375,599 | 26,025 | |
Occidental Petroleum Corp. | 190,339 | 14,582 | |
ConocoPhillips | 247,132 | 14,331 | |
Anadarko Petroleum Corp. | 164,623 | 12,233 | |
EOG Resources Inc. | 88,300 | 10,666 | |
National Oilwell Varco Inc. | 146,541 | 10,016 | |
Apache Corp. | 126,217 | 9,908 | |
Phillips 66 | 157,963 | 8,388 | |
Williams Cos. Inc. | 232,200 | 7,602 | |
Devon Energy Corp. | 145,622 | 7,578 | |
Noble Energy Inc. | 72,000 | 7,325 | |
Valero Energy Corp. | 182,480 | 6,226 | |
* | Cameron International Corp. | 109,002 | 6,154 |
Baker Hughes Inc. | 150,671 | 6,153 | |
Hess Corp. | 109,600 | 5,804 | |
Pioneer Natural | |||
Resources Co. | 53,737 | 5,728 | |
Cabot Oil & Gas Corp. | 104,970 | 5,221 | |
Halliburton Co. | 146,800 | 5,093 | |
* | Southwestern Energy Co. | 145,700 | 4,868 |
* | FMC Technologies Inc. | 107,100 | 4,587 |
Range Resources Corp. | 72,800 | 4,574 | |
EQT Corp. | 67,900 | 4,005 |
74
Tax-Managed Capital Appreciation Fund | |||
Market | |||
Value | |||
Shares | ($000) | ||
* | Dresser-Rand Group Inc. | 61,355 | 3,445 |
Helmerich & Payne Inc. | 57,980 | 3,248 | |
* | Plains Exploration & | ||
Production Co. | 66,760 | 3,134 | |
QEP Resources Inc. | 103,165 | 3,123 | |
* | Denbury Resources Inc. | 184,776 | 2,993 |
Marathon Petroleum Corp. | 46,450 | 2,926 | |
* | Continental Resources Inc. | 39,400 | 2,896 |
Peabody Energy Corp. | 108,100 | 2,877 | |
Marathon Oil Corp. | 92,900 | 2,848 | |
* | Concho Resources Inc. | 35,300 | 2,844 |
* | Rowan Cos. plc Class A | 85,600 | 2,677 |
Energen Corp. | 56,100 | 2,530 | |
Cimarex Energy Co. | 43,499 | 2,511 | |
SM Energy Co. | 43,156 | 2,253 | |
* | Newfield Exploration Co. | 66,098 | 1,770 |
* | SandRidge Energy Inc. | 262,914 | 1,670 |
Diamond Offshore | |||
Drilling Inc. | 20,400 | 1,386 | |
Tesoro Corp. | 26,500 | 1,167 | |
* | WPX Energy Inc. | 77,400 | 1,152 |
CONSOL Energy Inc. | 33,900 | 1,088 | |
* | Unit Corp. | 12,800 | 577 |
Chesapeake Energy Corp. | 25,211 | 419 | |
Patterson-UTI Energy Inc. | 21,200 | 395 | |
Kinder Morgan Inc. | 8,193 | 289 | |
* | Ultra Petroleum Corp. | 12,870 | 233 |
* | Nabors Industries Ltd. | 4,720 | 68 |
* | Superior Energy Services Inc. | 1,048 | 22 |
414,055 | |||
Financials (15.9%) | |||
JPMorgan Chase & Co. | 1,111,121 | 48,856 | |
* | Berkshire Hathaway Inc. | ||
Class B | 522,145 | 46,836 | |
Wells Fargo & Co. | 1,236,508 | 42,264 | |
Bank of America Corp. | 2,583,633 | 29,970 | |
Citigroup Inc. | 681,300 | 26,952 | |
American Express Co. | 318,800 | 18,325 | |
Goldman Sachs Group Inc. | 122,030 | 15,566 | |
Simon Property Group Inc. | 98,448 | 15,564 | |
US Bancorp | 392,700 | 12,543 | |
American Tower | |||
Corporation | 140,300 | 10,841 | |
Aflac Inc. | 172,500 | 9,163 | |
State Street Corp. | 186,978 | 8,790 | |
Prudential Financial Inc. | 161,904 | 8,634 | |
Public Storage | 55,200 | 8,002 | |
Discover Financial Services | 202,200 | 7,795 | |
Travelers Cos. Inc. | 101,877 | 7,317 | |
Franklin Resources Inc. | 55,400 | 6,964 | |
Capital One Financial Corp. | 117,800 | 6,824 | |
Equity Residential | 115,600 | 6,551 | |
Boston Properties Inc. | 60,200 | 6,370 | |
SunTrust Banks Inc. | 216,990 | 6,152 | |
T. Rowe Price Group Inc. | 92,978 | 6,056 | |
Ameriprise Financial Inc. | 92,960 | 5,822 |
Market | |||
Value | |||
Shares | ($000) | ||
* | American International | ||
Group Inc. | 164,080 | 5,792 | |
Loews Corp. | 138,908 | 5,660 | |
Progressive Corp. | 267,900 | 5,653 | |
Fifth Third Bancorp | 368,920 | 5,604 | |
Charles Schwab Corp. | 377,200 | 5,417 | |
Host Hotels & Resorts Inc. | 334,772 | 5,246 | |
AvalonBay Communities Inc. | 38,375 | 5,203 | |
General Growth | |||
Properties Inc. | 252,757 | 5,017 | |
M&T Bank Corp. | 46,286 | 4,558 | |
* | IntercontinentalExchange Inc. | 35,869 | 4,441 |
* | CIT Group Inc. | 114,835 | 4,437 |
* | Affiliated Managers | ||
Group Inc. | 32,250 | 4,197 | |
Allstate Corp. | 102,300 | 4,109 | |
* | CBRE Group Inc. Class A | 205,090 | 4,081 |
Plum Creek Timber Co. Inc. | 91,500 | 4,060 | |
Lincoln National Corp. | 150,986 | 3,911 | |
* | Arch Capital Group Ltd. | 88,800 | 3,909 |
SL Green Realty Corp. | 50,810 | 3,895 | |
KeyCorp | 457,769 | 3,854 | |
MetLife Inc. | 115,152 | 3,793 | |
* | Alleghany Corp. | 10,759 | 3,609 |
Torchmark Corp. | 68,650 | 3,547 | |
Moody’s Corp. | 70,100 | 3,527 | |
PNC Financial Services | |||
Group Inc. | 59,631 | 3,477 | |
Unum Group | 166,800 | 3,473 | |
* | American Capital Ltd. | 288,458 | 3,461 |
Raymond James | |||
Financial Inc. | 89,650 | 3,454 | |
Principal Financial | |||
Group Inc. | 120,400 | 3,434 | |
Taubman Centers Inc. | 43,500 | 3,424 | |
DDR Corp. | 216,364 | 3,388 | |
HCC Insurance | |||
Holdings Inc. | 87,200 | 3,245 | |
CME Group Inc. | 63,904 | 3,241 | |
WR Berkley Corp. | 85,296 | 3,219 | |
Jones Lang LaSalle Inc. | 38,077 | 3,196 | |
* | Markel Corp. | 7,276 | 3,154 |
Reinsurance Group of | |||
America Inc. Class A | 58,819 | 3,148 | |
White Mountains | |||
Insurance Group Ltd. | 6,041 | 3,111 | |
* | Popular Inc. | 145,844 | 3,032 |
Brown & Brown Inc. | 118,600 | 3,020 | |
BlackRock Inc. | 14,450 | 2,987 | |
Douglas Emmett Inc. | 127,273 | 2,965 | |
First Republic Bank | 90,257 | 2,959 | |
Apartment Investment & | |||
Management Co. Class A | 108,443 | 2,934 | |
TD Ameritrade | |||
Holding Corp. | 174,400 | 2,932 | |
Zions Bancorporation | 136,284 | 2,916 |
75
Tax-Managed Capital Appreciation Fund
Market | |||
Value | |||
Shares | ($000) | ||
East West Bancorp Inc. | 134,700 | 2,895 | |
Camden Property Trust | 42,400 | 2,892 | |
SEI Investments Co. | 123,770 | 2,889 | |
NASDAQ OMX Group Inc. | 114,892 | 2,873 | |
* | Forest City Enterprises Inc. | ||
Class A | 177,391 | 2,865 | |
Hospitality Properties Trust | 119,270 | 2,793 | |
Leucadia National Corp. | 116,219 | 2,765 | |
Morgan Stanley | 143,800 | 2,749 | |
Eaton Vance Corp. | 86,202 | 2,745 | |
* | Howard Hughes Corp. | 37,499 | 2,738 |
* | St. Joe Co. | 118,400 | 2,733 |
Equity Lifestyle | |||
Properties Inc. | 40,500 | 2,725 | |
Assurant Inc. | 75,300 | 2,613 | |
* | Alexander & Baldwin Inc. | 88,414 | 2,597 |
Cullen/Frost Bankers Inc. | 47,600 | 2,583 | |
Bank of New York | |||
Mellon Corp. | 99,406 | 2,555 | |
* | TFS Financial Corp. | 260,720 | 2,508 |
Retail Properties of | |||
America Inc. | 209,357 | 2,506 | |
Alexandria Real Estate | |||
Equities Inc. | 35,930 | 2,491 | |
Commerce Bancshares Inc. | 70,214 | 2,462 | |
Chubb Corp. | 30,900 | 2,327 | |
* | Signature Bank | 32,500 | 2,319 |
First Horizon National Corp. | 227,345 | 2,253 | |
Associated Banc-Corp | 170,670 | 2,239 | |
SLM Corp. | 123,245 | 2,111 | |
BOK Financial Corp. | 38,571 | 2,101 | |
City National Corp. | 42,000 | 2,080 | |
CNA Financial Corp. | 69,500 | 1,947 | |
Digital Realty Trust Inc. | 28,440 | 1,931 | |
Hanover Insurance | |||
Group Inc. | 49,600 | 1,921 | |
* | MBIA Inc. | 239,350 | 1,879 |
StanCorp Financial | |||
Group Inc. | 50,600 | 1,855 | |
Lazard Ltd. Class A | 55,686 | 1,662 | |
Prologis Inc. | 44,814 | 1,635 | |
* | E*TRADE Financial Corp. | 178,979 | 1,602 |
First Citizens | |||
BancShares Inc. Class A | 9,642 | 1,576 | |
BB&T Corp. | 53,000 | 1,543 | |
ACE Ltd. | 18,102 | 1,445 | |
Hartford Financial | |||
Services Group Inc. | 64,184 | 1,440 | |
Post Properties Inc. | 27,700 | 1,384 | |
Janus Capital Group Inc. | 155,766 | 1,327 | |
Northern Trust Corp. | 25,873 | 1,298 | |
American Financial | |||
Group Inc. | 32,200 | 1,273 | |
Legg Mason Inc. | 47,500 | 1,222 | |
New York Community | |||
Bancorp Inc. | 86,400 | 1,132 |
Market | |||
Value | |||
Shares | ($000) | ||
BRE Properties Inc. | 21,500 | 1,093 | |
Hudson City Bancorp Inc. | 114,302 | 929 | |
Aon plc | 16,400 | 912 | |
Bank of Hawaii Corp. | 20,100 | 885 | |
Federal Realty | |||
Investment Trust | 8,200 | 853 | |
* | Realogy Holdings Corp. | 20,000 | 839 |
People’s United | |||
Financial Inc. | 62,614 | 757 | |
Interactive Brokers | |||
Group Inc. | 51,335 | 702 | |
Invesco Ltd. | 12,010 | 313 | |
Extra Space Storage Inc. | 6,100 | 222 | |
Essex Property Trust Inc. | 300 | 44 | |
* | MSCI Inc. Class A | 100 | 3 |
640,878 | |||
Health Care (11.9%) | |||
Johnson & Johnson | 795,698 | 55,778 | |
Pfizer Inc. | 2,052,484 | 51,476 | |
Merck & Co. Inc. | 790,626 | 32,368 | |
Abbott Laboratories | 407,600 | 26,698 | |
Amgen Inc. | 234,487 | 20,241 | |
UnitedHealth Group Inc. | 328,662 | 17,827 | |
* | Gilead Sciences Inc. | 239,900 | 17,621 |
* | Express Scripts Holding Co. | 262,595 | 14,180 |
* | Biogen Idec Inc. | 81,661 | 11,977 |
* | Celgene Corp. | 151,519 | 11,928 |
Medtronic Inc. | 263,600 | 10,813 | |
Allergan Inc. | 108,530 | 9,955 | |
Bristol-Myers Squibb Co. | 297,241 | 9,687 | |
Thermo Fisher | |||
Scientific Inc. | 138,556 | 8,837 | |
Baxter International Inc. | 127,341 | 8,489 | |
Eli Lilly & Co. | 161,795 | 7,980 | |
WellPoint Inc. | 124,216 | 7,567 | |
McKesson Corp. | 73,424 | 7,119 | |
Aetna Inc. | 138,944 | 6,433 | |
Cigna Corp. | 118,300 | 6,324 | |
Becton Dickinson and Co. | 80,600 | 6,302 | |
Agilent Technologies Inc. | 151,706 | 6,211 | |
Cardinal Health Inc. | 145,512 | 5,992 | |
Stryker Corp. | 109,200 | 5,986 | |
Zimmer Holdings Inc. | 81,170 | 5,411 | |
* | Mylan Inc. | 194,637 | 5,349 |
AmerisourceBergen Corp. | |||
Class A | 123,000 | 5,311 | |
* | Watson Pharmaceuticals Inc. | 60,233 | 5,180 |
St. Jude Medical Inc. | 139,832 | 5,054 | |
Humana Inc. | 72,800 | 4,996 | |
* | Life Technologies Corp. | 95,435 | 4,684 |
Perrigo Co. | 44,840 | 4,665 | |
* | Waters Corp. | 51,650 | 4,500 |
* | Laboratory Corp. of | ||
America Holdings | 51,900 | 4,496 | |
Quest Diagnostics Inc. | 72,800 | 4,242 | |
* | Henry Schein Inc. | 52,400 | 4,216 |
76
Tax-Managed Capital Appreciation Fund | |||
Market | |||
Value | |||
Shares | ($000) | ||
* | Forest Laboratories Inc. | 117,100 | 4,136 |
* | Mettler-Toledo | ||
International Inc. | 21,000 | 4,059 | |
DENTSPLY International Inc. | 93,300 | 3,696 | |
Coventry Health Care Inc. | 81,025 | 3,632 | |
* | Hospira Inc. | 110,140 | 3,441 |
PerkinElmer Inc. | 106,204 | 3,371 | |
Universal Health | |||
Services Inc. Class B | 67,400 | 3,259 | |
CR Bard Inc. | 29,300 | 2,864 | |
* | CareFusion Corp. | 97,796 | 2,795 |
* | Endo Health Solutions Inc. | 102,147 | 2,683 |
Teleflex Inc. | 37,000 | 2,638 | |
Patterson Cos. Inc. | 73,530 | 2,517 | |
Warner Chilcott plc Class A | 180,827 | 2,177 | |
* | Varian Medical Systems Inc. | 28,200 | 1,981 |
Covidien plc | 33,900 | 1,957 | |
* | Health Net Inc. | 74,200 | 1,803 |
Omnicare Inc. | 40,900 | 1,477 | |
* | Vertex Pharmaceuticals Inc. | 28,588 | 1,199 |
* | Boston Scientific Corp. | 147,150 | 843 |
* | Medivation Inc. | 12,554 | 642 |
Cooper Cos. Inc. | 3,600 | 333 | |
* | Intuitive Surgical Inc. | 630 | 309 |
* | DaVita HealthCare | ||
Partners Inc. | 2,200 | 243 | |
Techne Corp. | 2,000 | 137 | |
* | Alexion Pharmaceuticals Inc. | 1,100 | 103 |
* | Brookdale Senior | ||
Living Inc. Class A | 3,600 | 91 | |
* | QIAGEN NV | 1,200 | 22 |
478,301 | |||
Industrials (11.1%) | |||
General Electric Co. | 2,917,272 | 61,234 | |
United Technologies Corp. | 280,100 | 22,971 | |
Boeing Co. | 236,770 | 17,843 | |
Union Pacific Corp. | 123,914 | 15,578 | |
3M Co. | 154,200 | 14,318 | |
Caterpillar Inc. | 128,820 | 11,540 | |
United Parcel Service Inc. | |||
Class B | 147,300 | 10,860 | |
Danaher Corp. | 194,200 | 10,856 | |
FedEx Corp. | 110,700 | 10,153 | |
Precision Castparts Corp. | 52,100 | 9,869 | |
Illinois Tool Works Inc. | 155,800 | 9,474 | |
Deere & Co. | 104,800 | 9,057 | |
General Dynamics Corp. | 121,400 | 8,409 | |
Honeywell International Inc. | 131,400 | 8,340 | |
Cummins Inc. | 75,400 | 8,170 | |
CSX Corp. | 389,800 | 7,691 | |
Emerson Electric Co. | 142,400 | 7,542 | |
Norfolk Southern Corp. | 121,650 | 7,523 | |
PACCAR Inc. | 142,910 | 6,461 | |
Fastenal Co. | 126,000 | 5,883 | |
Parker Hannifin Corp. | 67,500 | 5,742 | |
WW Grainger Inc. | 27,000 | 5,464 |
Market | |||
Value | |||
Shares | ($000) | ||
Roper Industries Inc. | 47,800 | 5,329 | |
Raytheon Co. | 88,118 | 5,072 | |
Northrop Grumman Corp. | 72,268 | 4,884 | |
AMETEK Inc. | 127,475 | 4,789 | |
Fluor Corp. | 81,200 | 4,770 | |
Waste Management Inc. | 140,297 | 4,734 | |
CH Robinson | |||
Worldwide Inc. | 74,090 | 4,684 | |
* | Stericycle Inc. | 48,408 | 4,515 |
Flowserve Corp. | 30,750 | 4,514 | |
Rockwell Collins Inc. | 73,700 | 4,287 | |
Pall Corp. | 69,300 | 4,176 | |
L-3 Communications | |||
Holdings Inc. | 54,000 | 4,138 | |
Equifax Inc. | 74,000 | 4,005 | |
Expeditors International | |||
of Washington Inc. | 101,061 | 3,997 | |
* | Verisk Analytics Inc. Class A | 78,105 | 3,983 |
* | Quanta Services Inc. | 140,048 | 3,822 |
JB Hunt Transport | |||
Services Inc. | 63,096 | 3,767 | |
* | Jacobs Engineering | ||
Group Inc. | 86,566 | 3,685 | |
* | WABCO Holdings Inc. | 56,041 | 3,653 |
Southwest Airlines Co. | 351,687 | 3,601 | |
* | Owens Corning | 94,587 | 3,499 |
Donaldson Co. Inc. | 103,200 | 3,389 | |
Joy Global Inc. | 52,500 | 3,348 | |
IDEX Corp. | 71,845 | 3,343 | |
Carlisle Cos. Inc. | 56,500 | 3,320 | |
Valmont Industries Inc. | 23,637 | 3,228 | |
MSC Industrial Direct | |||
Co. Inc. Class A | 41,700 | 3,143 | |
Wabtec Corp. | 35,800 | 3,134 | |
* | Oshkosh Corp. | 100,357 | 2,976 |
Cintas Corp. | 70,766 | 2,894 | |
Huntington Ingalls | |||
Industries Inc. | 65,905 | 2,856 | |
Landstar System Inc. | 54,289 | 2,848 | |
Dun & Bradstreet Corp. | 36,200 | 2,847 | |
Toro Co. | 66,100 | 2,841 | |
* | Terex Corp. | 99,066 | 2,785 |
Robert Half International Inc. | 87,500 | 2,784 | |
KBR Inc. | 89,249 | 2,670 | |
SPX Corp. | 37,400 | 2,624 | |
Xylem Inc. | 87,100 | 2,360 | |
Manpower Inc. | 54,600 | 2,317 | |
CNH Global NV | 53,619 | 2,160 | |
Alliant Techsystems Inc. | 33,100 | 2,051 | |
Stanley Black & Decker Inc. | 26,745 | 1,978 | |
Iron Mountain Inc. | 62,646 | 1,945 | |
Lennox International Inc. | 35,090 | 1,843 | |
TransDigm Group Inc. | 13,034 | 1,777 | |
Textron Inc. | 61,020 | 1,513 | |
KAR Auction Services Inc. | 71,953 | 1,456 | |
Graco Inc. | 27,658 | 1,424 |
77
Tax-Managed Capital Appreciation Fund
Market | |||
Value | |||
Shares | ($000) | ||
Gardner Denver Inc. | 19,846 | 1,359 | |
ITT Corp. | 43,550 | 1,022 | |
Exelis Inc. | 87,100 | 982 | |
Manitowoc Co. Inc. | 62,200 | 975 | |
Eaton Corp. plc | 15,294 | 829 | |
Tyco International Ltd. | 25,300 | 740 | |
* | Navistar International Corp. | 32,334 | 704 |
ADT Corp. | 15,050 | 700 | |
Lockheed Martin Corp. | 6,820 | 629 | |
Republic Services Inc. | |||
Class A | 19,512 | 572 | |
* | AGCO Corp. | 10,600 | 521 |
Pentair Ltd. | 6,070 | 298 | |
Babcock & Wilcox Co. | 10,920 | 286 | |
* | Engility Holdings Inc. | 14,700 | 283 |
Ryder System Inc. | 3,600 | 180 | |
Con-way Inc. | 6,320 | 176 | |
* | Hertz Global Holdings Inc. | 7,000 | 114 |
* | Nielsen Holdings NV | 3,000 | 92 |
* | Fortune Brands | ||
Home & Security Inc. | 2,546 | 74 | |
447,272 | |||
Information Technology (18.4%) | |||
Apple Inc. | 264,370 | 140,917 | |
International Business | |||
Machines Corp. | 314,758 | 60,292 | |
Microsoft Corp. | 2,063,000 | 55,144 | |
* | Google Inc. Class A | 75,158 | 53,315 |
Oracle Corp. | 1,131,334 | 37,696 | |
Cisco Systems Inc. | 1,609,290 | 31,623 | |
QUALCOMM Inc. | 415,720 | 25,783 | |
Intel Corp. | 1,160,830 | 23,948 | |
Visa Inc. Class A | 157,298 | 23,843 | |
* | eBay Inc. | 368,318 | 18,792 |
Mastercard Inc. Class A | 35,090 | 17,239 | |
* | EMC Corp. | 661,500 | 16,736 |
Texas Instruments Inc. | 389,800 | 12,060 | |
* | Yahoo! Inc. | 460,420 | 9,162 |
* | Cognizant Technology | ||
Solutions Corp. Class A | 116,597 | 8,634 | |
Hewlett-Packard Co. | 539,553 | 7,689 | |
* | Adobe Systems Inc. | 202,700 | 7,638 |
Intuit Inc. | 119,760 | 7,126 | |
Broadcom Corp. Class A | 203,950 | 6,773 | |
Corning Inc. | 490,200 | 6,186 | |
Accenture plc Class A | 92,213 | 6,132 | |
* | Symantec Corp. | 316,351 | 5,951 |
* | Citrix Systems Inc. | 80,756 | 5,310 |
* | Fiserv Inc. | 65,550 | 5,180 |
Amphenol Corp. Class A | 79,800 | 5,163 | |
Analog Devices Inc. | 118,166 | 4,970 | |
Western Digital Corp. | 114,100 | 4,848 | |
Altera Corp. | 140,647 | 4,844 | |
* | Teradata Corp. | 76,264 | 4,720 |
* | NetApp Inc. | 137,963 | 4,629 |
Market | |||
Value | |||
Shares | ($000) | ||
Fidelity National Information | |||
Services Inc. | 130,478 | 4,542 | |
* | Autodesk Inc. | 126,488 | 4,471 |
KLA-Tencor Corp. | 90,600 | 4,327 | |
Linear Technology Corp. | 124,200 | 4,260 | |
Applied Materials Inc. | 371,500 | 4,250 | |
Western Union Co. | 290,095 | 3,948 | |
Xerox Corp. | 577,604 | 3,939 | |
* | BMC Software Inc. | 96,266 | 3,818 |
* | Synopsys Inc. | 108,990 | 3,470 |
* | Lam Research Corp. | 91,845 | 3,318 |
* | Cadence Design | ||
Systems Inc. | 245,160 | 3,312 | |
* | Avnet Inc. | 105,400 | 3,226 |
* | Arrow Electronics Inc. | 84,500 | 3,218 |
Computer Sciences Corp. | 78,900 | 3,160 | |
NVIDIA Corp. | 255,244 | 3,137 | |
Global Payments Inc. | 69,217 | 3,136 | |
* | LSI Corp. | 428,628 | 3,035 |
* | Compuware Corp. | 276,640 | 3,007 |
* | CoreLogic Inc. | 107,846 | 2,903 |
Motorola Solutions Inc. | 49,604 | 2,762 | |
Automatic Data | |||
Processing Inc. | 47,100 | 2,685 | |
DST Systems Inc. | 42,800 | 2,594 | |
Xilinx Inc. | 71,336 | 2,561 | |
* | NCR Corp. | 99,574 | 2,537 |
* | Tech Data Corp. | 55,510 | 2,527 |
CA Inc. | 113,266 | 2,490 | |
AOL Inc. | 82,340 | 2,438 | |
* | Juniper Networks Inc. | 119,000 | 2,341 |
* | Fairchild Semiconductor | ||
International Inc. Class A | 147,958 | 2,131 | |
* | Ingram Micro Inc. | 125,000 | 2,115 |
Dell Inc. | 189,800 | 1,923 | |
* | Teradyne Inc. | 110,200 | 1,861 |
* | Alliance Data Systems Corp. | 11,600 | 1,679 |
* | Atmel Corp. | 248,700 | 1,629 |
Total System Services Inc. | 74,759 | 1,601 | |
Broadridge Financial | |||
Solutions Inc. | 58,725 | 1,344 | |
* | Rovi Corp. | 81,900 | 1,264 |
Solera Holdings Inc. | 22,096 | 1,181 | |
Lexmark International Inc. | |||
Class A | 50,300 | 1,166 | |
IAC/InterActiveCorp | 24,515 | 1,160 | |
Lender Processing | |||
Services Inc. | 43,950 | 1,082 | |
* | Zebra Technologies Corp. | 27,257 | 1,071 |
Microchip Technology Inc. | 31,400 | 1,023 | |
* | Zynga Inc. Class A | 313,000 | 742 |
Molex Inc. | 24,751 | 676 | |
* | Salesforce.com Inc. | 2,700 | 454 |
Amdocs Ltd. | 12,000 | 408 | |
* | Micron Technology Inc. | 56,400 | 358 |
Activision Blizzard Inc. | 32,800 | 348 |
78
Tax-Managed Capital Appreciation Fund | |||
Market | |||
Value | |||
Shares | ($000) | ||
Harris Corp. | 4,300 | 211 | |
* | VeriSign Inc. | 2,305 | 90 |
* | Electronic Arts Inc. | 100 | 1 |
* | Advanced Micro Devices Inc. | 500 | 1 |
739,274 | |||
Materials (3.8%) | |||
Praxair Inc. | 103,500 | 11,328 | |
Freeport-McMoRan | |||
Copper & Gold Inc. | 294,908 | 10,086 | |
Monsanto Co. | 82,434 | 7,802 | |
Newmont Mining Corp. | 164,386 | 7,634 | |
LyondellBasell Industries | |||
NV Class A | 132,900 | 7,587 | |
Ecolab Inc. | 104,738 | 7,531 | |
EI du Pont de | |||
Nemours & Co. | 160,300 | 7,209 | |
CF Industries Holdings Inc. | 28,660 | 5,823 | |
Dow Chemical Co. | 178,640 | 5,774 | |
Nucor Corp. | 129,600 | 5,596 | |
Sigma-Aldrich Corp. | 63,400 | 4,665 | |
FMC Corp. | 78,000 | 4,565 | |
Ball Corp. | 91,200 | 4,081 | |
Mosaic Co. | 71,400 | 4,043 | |
Celanese Corp. Class A | 90,011 | 4,008 | |
Airgas Inc. | 43,400 | 3,962 | |
Albemarle Corp. | 60,400 | 3,752 | |
* | Crown Holdings Inc. | 100,800 | 3,711 |
* | WR Grace & Co. | 52,689 | 3,542 |
Cytec Industries Inc. | 46,300 | 3,187 | |
Rockwood Holdings Inc. | 62,760 | 3,104 | |
Martin Marietta | |||
Materials Inc. | 30,600 | 2,885 | |
Reliance Steel & | |||
Aluminum Co. | 46,300 | 2,875 | |
Vulcan Materials Co. | 53,708 | 2,796 | |
* | Allied Nevada Gold Corp. | 88,495 | 2,666 |
Intrepid Potash Inc. | 115,925 | 2,468 | |
Scotts Miracle-Gro Co. | |||
Class A | 51,099 | 2,251 | |
Sealed Air Corp. | 106,072 | 1,857 | |
* | Tahoe Resources Inc. | 100,280 | 1,837 |
Royal Gold Inc. | 21,768 | 1,770 | |
* | Owens-Illinois Inc. | 81,480 | 1,733 |
Allegheny Technologies Inc. | 50,100 | 1,521 | |
Valspar Corp. | 23,400 | 1,460 | |
* | Molycorp Inc. | 151,750 | 1,433 |
International Paper Co. | 35,900 | 1,430 | |
Packaging Corp. of America | 26,600 | 1,023 | |
Eastman Chemical Co. | 14,106 | 960 | |
Southern Copper Corp. | 21,224 | 804 | |
Air Products & Chemicals Inc. | 5,700 | 479 | |
Cliffs Natural Resources Inc. | 261 | 10 | |
151,248 |
Market | |||
Value | |||
Shares | ($000) | ||
Telecommunication Services (2.9%) | |||
AT&T Inc. | 1,696,979 | 57,205 | |
Verizon | |||
Communications Inc. | 711,342 | 30,780 | |
* | Crown Castle | ||
International Corp. | 115,300 | 8,320 | |
* | Sprint Nextel Corp. | 1,231,579 | 6,983 |
* | SBA Communications | ||
Corp. Class A | 67,103 | 4,766 | |
CenturyLink Inc. | 56,364 | 2,205 | |
Telephone & Data | |||
Systems Inc. | 80,594 | 1,784 | |
* | United States Cellular Corp. | 44,516 | 1,569 |
* | Level 3 Communications Inc. | 58,413 | 1,350 |
Frontier Communications | |||
Corp. | 27,931 | 119 | |
115,081 | |||
Utilities (2.8%) | |||
NextEra Energy Inc. | 122,451 | 8,472 | |
Duke Energy Corp. | 111,730 | 7,128 | |
Sempra Energy | 100,036 | 7,097 | |
Edison International | 138,600 | 6,263 | |
PG&E Corp. | 145,600 | 5,850 | |
Northeast Utilities | 142,899 | 5,584 | |
Southern Co. | 124,900 | 5,347 | |
Wisconsin Energy Corp. | 120,084 | 4,425 | |
* | Calpine Corp. | 236,180 | 4,282 |
FirstEnergy Corp. | 101,700 | 4,247 | |
CenterPoint Energy Inc. | 213,800 | 4,116 | |
CMS Energy Corp. | 164,986 | 4,022 | |
AES Corp. | 359,398 | 3,846 | |
NRG Energy Inc. | 161,406 | 3,711 | |
Dominion Resources Inc. | 67,086 | 3,475 | |
SCANA Corp. | 74,200 | 3,386 | |
NV Energy Inc. | 184,483 | 3,347 | |
Exelon Corp. | 111,700 | 3,322 | |
ITC Holdings Corp. | 43,093 | 3,314 | |
American Water | |||
Works Co. Inc. | 87,200 | 3,238 | |
Integrys Energy Group Inc. | 61,481 | 3,211 | |
Aqua America Inc. | 115,183 | 2,928 | |
MDU Resources Group Inc. | 137,050 | 2,911 | |
Questar Corp. | 115,800 | 2,288 | |
Public Service Enterprise | |||
Group Inc. | 69,800 | 2,136 | |
Entergy Corp. | 25,800 | 1,645 | |
UGI Corp. | 34,466 | 1,127 | |
National Fuel Gas Co. | 19,487 | 988 | |
NiSource Inc. | 35,920 | 894 | |
American Electric | |||
Power Co. Inc. | 9,300 | 397 | |
112,997 | |||
Total Common Stocks | |||
(Cost $2,664,531) | 4,014,081 |
79
Tax-Managed Capital Appreciation Fund
Market | ||
Value | ||
Shares | ($000) | |
Temporary Cash Investment (0.0%) | ||
Money Market Fund (0.0%) | ||
1 Vanguard Market | ||
Liquidity Fund, 0.162% | ||
(Cost $1,109) | 1,109,015 | 1,109 |
Total Investments (99.9%) | ||
(Cost $2,665,640) | 4,015,190 | |
Other Assets and Liabilities (0.1%) | ||
Other Assets | 18,377 | |
Liabilities | (14,517) | |
3,860 | ||
Net Assets (100%) | 4,019,050 |
At December 31, 2012, net assets consisted of: | |
Amount | |
($000) | |
Paid-in Capital | 2,710,068 |
Overdistributed Net Investment Income | (4,124) |
Accumulated Net Realized Losses | (36,444) |
Unrealized Appreciation (Depreciation) | 1,349,550 |
Net Assets | 4,019,050 |
Admiral Shares—Net Assets | |
Applicable to 52,016,748 outstanding | |
$.001 par value shares of beneficial | |
interest (unlimited authorization) | 3,702,200 |
Net Asset Value Per Share— | |
Admiral Shares | $71.17 |
Institutional Shares—Net Assets | |
Applicable to 8,960,068 outstanding | |
$.001 par value shares of beneficial | |
interest (unlimited authorization) | 316,850 |
Net Asset Value Per Share— | |
Institutional Shares | $35.36 |
See Note A in Notes to Financial Statements.
* Non-income-producing security.
1 Affiliated money market fund available only to Vanguard funds and certain trusts and accounts managed by Vanguard. Rate shown is the 7-day yield.
See accompanying Notes, which are an integral part of the Financial Statements.
80
Tax-Managed Capital Appreciation Fund | |
Statement of Operations | |
Year Ended | |
December 31, 2012 | |
($000) | |
Investment Income | |
Income | |
Dividends | 81,952 |
Interest1 | 4 |
Total Income | 81,956 |
Expenses | |
The Vanguard Group—Note B | |
Investment Advisory Services | 331 |
Management and Administrative—Admiral Shares | 3,202 |
Management and Administrative—Institutional Shares | 181 |
Marketing and Distribution—Admiral Shares | 753 |
Marketing and Distribution—Institutional Shares | 46 |
Custodian Fees | 40 |
Auditing Fees | 28 |
Shareholders’ Reports—Admiral Shares | 19 |
Shareholders’ Reports—Institutional Shares | — |
Trustees’ Fees and Expenses | 3 |
Total Expenses | 4,603 |
Net Investment Income | 77,353 |
Realized Net Gain (Loss) on Investment Securities Sold | 9,245 |
Change in Unrealized Appreciation (Depreciation) of Investment Securities | 498,898 |
Net Increase (Decrease) in Net Assets Resulting from Operations | 585,496 |
1 Interest income from an affiliated company of the fund was $3,000. |
See accompanying Notes, which are an integral part of the Financial Statements.
81
Tax-Managed Capital Appreciation Fund | ||
Statement of Changes in Net Assets | ||
Year Ended December 31, | ||
2012 | 2011 | |
($000) | ($000) | |
Increase (Decrease) in Net Assets | ||
Operations | ||
Net Investment Income | 77,353 | 61,585 |
Realized Net Gain (Loss) | 9,245 | 91,977 |
Change in Unrealized Appreciation (Depreciation) | 498,898 | (101,060) |
Net Increase (Decrease) in Net Assets Resulting from Operations | 585,496 | 52,502 |
Distributions | ||
Net Investment Income | ||
Investor Shares | — | (76) |
Admiral Shares | (70,710) | (55,947) |
Institutional Shares | (6,334) | (5,254) |
Realized Capital Gain | ||
Investor Shares | — | — |
Admiral Shares | — | — |
Institutional Shares | — | — |
Total Distributions | (77,044) | (61,277) |
Capital Share Transactions | ||
Investor Shares | — | (632,954) |
Admiral Shares | (69,323) | 497,531 |
Institutional Shares | (27,435) | 20,879 |
Net Increase (Decrease) from Capital Share Transactions | (96,758) | (114,544) |
Total Increase (Decrease) | 411,694 | (123,319) |
Net Assets | ||
Beginning of Period | 3,607,356 | 3,730,675 |
End of Period1 | 4,019,050 | 3,607,356 |
1 Net Assets—End of Period includes undistributed (overdistributed) net investment income of ($4,124,000) and ($4,433,000).
See accompanying Notes, which are an integral part of the Financial Statements.
82
Tax-Managed Capital Appreciation Fund | |||||
Financial Highlights | |||||
Admiral Shares | |||||
For a Share Outstanding | Year Ended December 31, | ||||
Throughout Each Period | 2012 | 2011 | 2010 | 2009 | 2008 |
Net Asset Value, Beginning of Period | $62.36 | $62.56 | $54.72 | $43.04 | $70.70 |
Investment Operations | |||||
Net Investment Income | 1.384 | 1.072 | .915 | .855 | 1.040 |
Net Realized and Unrealized Gain (Loss) | |||||
on Investments | 8.806 | (.202) | 7.849 | 11.673 | (27.656) |
Total from Investment Operations | 10.190 | .870 | 8.764 | 12.528 | (26.616) |
Distributions | |||||
Dividends from Net Investment Income | (1.380) | (1.070) | (.924) | (.848) | (1.044) |
Distributions from Realized Capital Gains | — | — | — | — | — |
Total Distributions | (1.380) | (1.070) | (.924) | (.848) | (1.044) |
Net Asset Value, End of Period | $71.17 | $62.36 | $62.56 | $54.72 | $43.04 |
Total Return1 | 16.35% | 1.38% | 16.02% | 29.11% | -37.58% |
Ratios/Supplemental Data | |||||
Net Assets, End of Period (Millions) | $3,702 | $3,305 | $2,860 | $2,526 | $2,045 |
Ratio of Total Expenses to | |||||
Average Net Assets | 0.12% | 0.12% | 0.12% | 0.15% | 0.10% |
Ratio of Net Investment Income to | |||||
Average Net Assets | 1.96% | 1.65% | 1.59% | 1.80% | 1.72% |
Portfolio Turnover Rate | 3% | 2% | 7% | 26% | 8% |
1 Total returns do not include transaction or account service fees that may have applied in the periods shown. Fund prospectuses provide information about any applicable transaction and account service fees.
See accompanying Notes, which are an integral part of the Financial Statements.
83
Tax-Managed Capital Appreciation Fund | |||||
Financial Highlights | |||||
Institutional Shares | |||||
For a Share Outstanding | Year Ended December 31, | ||||
Throughout Each Period | 2012 | 2011 | 2010 | 2009 | 2008 |
Net Asset Value, Beginning of Period | $30.98 | $31.09 | $27.19 | $21.38 | $35.13 |
Investment Operations | |||||
Net Investment Income | .702 | .548 | .466 | .439 | .525 |
Net Realized and Unrealized Gain (Loss) | |||||
on Investments | 4.379 | (.113) | 3.905 | 5.806 | (13.748) |
Total from Investment Operations | 5.081 | .435 | 4.371 | 6.245 | (13.223) |
Distributions | |||||
Dividends from Net Investment Income | (.701) | (.545) | (.471) | (.435) | (.527) |
Distributions from Realized Capital Gains | — | — | — | — | — |
Total Distributions | (.701) | (.545) | (.471) | (.435) | (.527) |
Net Asset Value, End of Period | $35.36 | $30.98 | $31.09 | $27.19 | $21.38 |
Total Return1 | 16.41% | 1.39% | 16.08% | 29.21% | -37.57% |
Ratios/Supplemental Data | |||||
Net Assets, End of Period (Millions) | $317 | $302 | $282 | $225 | $185 |
Ratio of Total Expenses to | |||||
Average Net Assets | 0.08% | 0.08% | 0.08% | 0.09% | 0.07% |
Ratio of Net Investment Income to | |||||
Average Net Assets | 2.00% | 1.69% | 1.63% | 1.86% | 1.75% |
Portfolio Turnover Rate | 3% | 2% | 7% | 26% | 8% |
1 Total returns do not include transaction fees that may have applied in the periods shown. Fund prospectuses provide information about any applicable transaction fees.
See accompanying Notes, which are an integral part of the Financial Statements.
84
Tax-Managed Capital Appreciation Fund
Notes to Financial Statements
Vanguard Tax-Managed Capital Appreciation Fund is registered under the Investment Company Act of 1940 as an open-end investment company, or mutual fund. The fund offers two classes of shares: Admiral Shares and Institutional Shares. Admiral Shares and Institutional Shares are designed for investors who meet certain administrative, service, and account-size criteria.
A. The following significant accounting policies conform to generally accepted accounting principles for U.S. mutual funds. The fund consistently follows such policies in preparing its financial statements.
1. Security Valuation: Securities are valued as of the close of trading on the New York Stock Exchange (generally 4 p.m., Eastern time) on the valuation date. Equity securities are valued at the latest quoted sales prices or official closing prices taken from the primary market in which each security trades; such securities not traded on the valuation date are valued at the mean of the latest quoted bid and asked prices. Securities for which market quotations are not readily available, or whose values have been materially affected by events occurring before the fund’s pricing time but after the close of the securities’ primary markets, are valued by methods deemed by the board of trustees to represent fair value. Investments in Vanguard Market Liquidity Fund are valued at that fund’s net asset value.
2. Federal Income Taxes: The fund intends to continue to qualify as a regulated investment company and distribute all of its taxable income. Management has analyzed the fund’s tax positions taken for all open federal income tax years (December 31, 2009–2012), and has concluded that no provision for federal income tax is required in the fund’s financial statements.
3. Distributions: Distributions to shareholders are recorded on the ex-dividend date.
4. Other: Dividend income is recorded on the ex-dividend date. Interest income includes income distributions received from Vanguard Market Liquidity Fund and is accrued daily. Security transactions are accounted for on the date securities are bought or sold. Costs used to determine realized gains (losses) on the sale of investment securities are those of the specific securities sold.
Each class of shares has equal rights as to assets and earnings, except that each class separately bears certain class-specific expenses related to maintenance of shareholder accounts (included in Management and Administrative expenses) and shareholder reporting. Marketing and distribution expenses are allocated to each class of shares based on a method approved by the board of trustees. Income, other non-class-specific expenses, and gains and losses on investments are allocated to each class of shares based on its relative net assets.
B. The Vanguard Group furnishes at cost investment advisory, corporate management, administrative, marketing, and distribution services. The costs of such services are allocated to the fund under methods approved by the board of trustees. The fund has committed to provide up to 0.40% of its net assets in capital contributions to Vanguard. At December 31, 2012, the fund had contributed capital of $554,000 to Vanguard (included in Other Assets), representing 0.01% of the fund’s net assets and 0.22% of Vanguard’s capitalization. The fund’s trustees and officers are also directors and officers of Vanguard.
85
Tax-Managed Capital Appreciation Fund
C. 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—Quoted prices in active markets for identical securities.
Level 2—Other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.).
Level 3—Significant unobservable inputs (including the fund’s own assumptions used to determine the fair value of investments).
At December 31, 2012, 100% of the market value of the fund’s investments was determined based on Level 1 inputs.
D. Distributions are determined on a tax basis and may differ from net investment income and realized capital gains for financial reporting purposes. Differences may be permanent or temporary. Permanent differences are reclassified among capital accounts in the financial statements to reflect their tax character. Temporary differences arise when certain items of income, expense, gain, or loss are recognized in different periods for financial statement and tax purposes; these differences will reverse at some time in the future. Differences in classification may also result from the treatment of short-term gains as ordinary income for tax purposes.
For tax purposes, at December 31, 2012, the fund had $1,011,000 of ordinary income available for distribution. The fund used capital loss carryforwards of $32,098,000 to offset taxable capital gains realized during the year ended December 31, 2012. At December 31, 2012, the fund had available capital losses totaling $36,444,000 to offset future net capital gains. Of this amount, $13,590,000 is subject to expiration on December 31, 2018. Capital losses of $22,854,000 realized beginning in fiscal 2011 may be carried forward indefinitely under the Regulated Investment Company Modernization Act of 2010, but must be used before any expiring loss carryforwards.
At December 31, 2012, the cost of investment securities for tax purposes was $2,665,640,000.
Net unrealized appreciation of investment securities for tax purposes was $1,349,550,000, consisting of unrealized gains of $1,449,283,000 on securities that had risen in value since their purchase and $99,733,000 in unrealized losses on securities that had fallen in value since their purchase.
E. During the year ended December 31, 2012, the fund purchased $116,464,000 of investment securities and sold $215,954,000 of investment securities, other than temporary cash investments.
86
Tax-Managed Capital Appreciation Fund
F. Capital share transactions for each class of shares were:
Year Ended December 31, | ||||
2012 | 2011 | |||
Amount | Shares | Amount | Shares | |
($000) | (000) | ($000) | (000) | |
Investor Shares | ||||
Issued | — | — | 19,204 | 593 |
Issued in Lieu of Cash Distributions | — | — | 66 | 2 |
Redeemed1,2 | — | — | (652,224) | (19,543) |
Net Increase (Decrease)—Investor Shares | — | — | (632,954) | (18,948) |
Admiral Shares | ||||
Issued 2 | 186,797 | 2,686 | 754,793 | 11,363 |
Issued in Lieu of Cash Distributions | 55,442 | 783 | 44,170 | 704 |
Redeemed1 | (311,562) | (4,459) | (301,432) | (4,772) |
Net Increase (Decrease)—Admiral Shares | (69,323) | (990) | 497,531 | 7,295 |
Institutional Shares | ||||
Issued | 6,796 | 195 | 33,090 | 1,065 |
Issued in Lieu of Cash Distributions | 3,552 | 101 | 3,139 | 101 |
Redeemed1 | (37,783) | (1,080) | (15,350) | (486) |
Net Increase (Decrease) —Institutional Shares | (27,435) | (784) | 20,879 | 680 |
1 Net of redemption fees for fiscal 2011 of $112,000 (fund totals). Effective April 28, 2011, the redemption fee was eliminated.
2 For fiscal 2011, Investor Shares redeemed and Admiral Shares issued reflect $624,890,000 from the conversion of 18,707,000 Investor Shares to 9,293,000 Admiral Shares at the close of business on May 13, 2011.
G. In preparing the financial statements as of December 31, 2012, management considered the impact of subsequent events for potential recognition or disclosure in these financial statements.
87
Tax-Managed Small-Cap Fund
Fund Profile
As of December 31, 2012
Share-Class Characteristics | ||
Admiral | Institutional | |
Shares | Shares | |
Ticker Symbol | VTMSX | VTSIX |
Expense Ratio1 | 0.13% | 0.09% |
30-Day SEC Yield | 1.20% | 1.24% |
Portfolio Characteristics | |||
DJ U.S. | |||
Total | |||
S&P Market | |||
SmallCap | FA | ||
Fund | 600 Index | Index | |
Number of Stocks | 604 | 600 | 3,604 |
Median Market Cap | $1.2B | $1.2B | $35.1B |
Price/Earnings Ratio | 21.2x | 21.7x | 16.8x |
Price/Book Ratio | 1.9x | 1.9x | 2.1x |
Return on Equity | 10.1% | 9.8% | 17.1% |
Earnings Growth Rate | 6.2% | 5.9% | 9.7% |
Dividend Yield | 1.1% | 1.3% | 2.1% |
Foreign Holdings | 0.0% | 0.0% | 0.0% |
Turnover Rate | 42% | — | — |
Short-Term Reserves | 0.0% | — | — |
Sector Diversification (% of equity exposure) | |||
DJ U.S. | |||
Total | |||
S&P | Market | ||
SmallCap | FA | ||
Fund 600 | Index | Index | |
Consumer Discretionary | 15.3% | 15.1% | 12.3% |
Consumer Staples | 3.9 | 3.8 | 9.3 |
Energy | 4.1 | 4.2 | 10.2 |
Financials | 20.8 | 21.3 | 16.9 |
Health Care | 10.6 | 10.5 | 11.7 |
Industrials | 15.8 | 15.7 | 11.1 |
Information Technology | 18.4 | 18.4 | 18.3 |
Materials | 6.6 | 6.6 | 4.0 |
Telecommunication | |||
Services | 0.5 | 0.5 | 2.7 |
Utilities | 4.0 | 3.9 | 3.5 |
Volatility Measures | ||
DJ U.S. | ||
Total | ||
Market | ||
S&P SmallCap | FA | |
600 Index | Index | |
R-Squared | 1.00 | 0.94 |
Beta | 1.00 | 1.17 |
These measures show the degree and timing of the fund’s fluctuations compared with the indexes over 36 months.
Ten Largest Holdings (% of total net assets) | ||
CommVault Systems | ||
Inc. | Systems Software | 0.6% |
Cymer Inc. | Semiconductor | |
Equipment | 0.6 | |
Eagle Materials Inc. | Construction | |
Materials | 0.5 | |
Cubist Pharmaceuticals | ||
Inc. | Biotechnology | 0.5 |
Brunswick Corp. | Leisure Products | 0.5 |
ProAssurance Corp. | Property & Casualty | |
Insurance | 0.5 | |
3D Systems Corp. | Computer Hardware | 0.5 |
Robbins & Myers Inc. | Industrial Machinery | 0.5 |
Toro Co. | Construction & Farm | |
Machinery & Heavy | ||
Trucks | 0.5 | |
AO Smith Corp. | Building Products | 0.5 |
Top Ten | 5.2% |
The holdings listed exclude any temporary cash investments and equity index products.
Investment Focus |
1 The expense ratios shown are from the prospectus dated April 26, 2012, and represent estimated costs for the current fiscal year. For the fiscal year ended December 31, 2012, the expense ratios were 0.12% for Admiral Shares and 0.08% for Institutional Shares.
88
Tax-Managed Small-Cap Fund
Performance Summary
All of the returns in this report represent past performance, which is not a guarantee of future results that may be achieved by the fund. (Current performance may be lower or higher than the performance data cited. For performance data current to the most recent month-end, visit our website at vanguard.com/performance.) Note, too, that both investment returns and principal value can fluctuate widely, so an investor’s shares, when sold, could be worth more or less than their original cost. The returns shown do not reflect taxes that a shareholder would pay on fund distributions or on the sale of fund shares.
Cumulative Performance: December 31, 2002, Through December 31, 2012
Initial Investment of $10,000
Average Annual Total Returns | ||||
Periods Ended December 31, 2012 | ||||
Final Value | ||||
One | Five | Ten | of a $10,000 | |
Year | Years | Years | Investment | |
Tax-Managed Small-Cap Fund | ||||
Admiral Shares | 16.03% | 5.15% | 10.46% | $27,038 |
S&P SmallCap 600 Index | 16.33 | 5.14 | 10.45 | 27,026 |
Small-Cap Core Funds Average | 14.70 | 2.92 | 9.05 | 23,774 |
Dow Jones U.S. Total Stock Market | ||||
Float Adjusted Index | 16.38 | 2.21 | 7.95 | 21,484 |
Small-Cap Core Funds Average: Derived from data provided by Lipper Inc.
Final Value | ||||
One | Five | Ten | of a $5,000,000 | |
Year | Years | Years | Investment | |
Tax-Managed Small-Cap Fund Institutional | ||||
Shares | 16.05% | 5.22% | 10.52% | $13,599,419 |
S&P SmallCap 600 Index | 16.33 | 5.14 | 10.45 | 13,512,963 |
Dow Jones U.S. Total Stock Market | ||||
Float Adjusted Index | 16.38 | 2.21 | 7.95 | 10,742,011 |
See Financial Highlights for dividend and capital gains information.
89
Tax-Managed Small-Cap Fund
Fiscal-Year Total Returns (%): December 31, 2002, Through December 31, 2012
Tax-Managed Small-Cap Fund Admiral Shares |
S&P SmallCap 600 Index |
90
Tax-Managed Small-Cap Fund
Financial Statements
Statement of Net Assets
As of December 31, 2012
The fund reports a complete list of its holdings in regulatory filings four times in each fiscal year, at the quarter-ends. For the second and fourth fiscal quarters, the lists appear in the fund’s semiannual and annual reports to shareholders. For the first and third fiscal quarters, the fund files the lists with the Securities and Exchange Commission on Form N-Q. Shareholders can look up the fund’s Forms N-Q on the SEC’s website at sec.gov. Forms N-Q may also be reviewed and copied at the SEC’s Public Reference Room (see the back cover of this report for further information).
Market | |||
Value | |||
Shares | ($000) | ||
Common Stocks (100.1%) | |||
Consumer Discretionary (15.3%) | |||
Brunswick Corp. | 407,640 | 11,858 | |
Wolverine World Wide Inc. | 223,176 | 9,146 | |
Pool Corp. | 212,394 | 8,989 | |
* | Steven Madden Ltd. | 186,038 | 7,864 |
* | Vitamin Shoppe Inc. | 136,361 | 7,822 |
Ryland Group Inc. | 205,103 | 7,486 | |
* | Coinstar Inc. | 137,411 | 7,147 |
* | Iconix Brand Group Inc. | 310,695 | 6,935 |
Cracker Barrel Old | |||
Country Store Inc. | 106,635 | 6,852 | |
Men’s Wearhouse Inc. | 217,835 | 6,788 | |
* | Select Comfort Corp. | 255,209 | 6,679 |
* | Lumber Liquidators | ||
Holdings Inc. | 123,530 | 6,526 | |
Hillenbrand Inc. | 285,123 | 6,447 | |
* | Fifth & Pacific Cos. Inc. | 515,330 | 6,416 |
* | Hibbett Sports Inc. | 117,535 | 6,194 |
* | Buffalo Wild Wings Inc. | 84,619 | 6,162 |
* | Genesco Inc. | 109,969 | 6,048 |
Group 1 Automotive Inc. | 97,079 | 6,018 | |
* | Live Nation | ||
Entertainment Inc. | 642,806 | 5,985 | |
* | Crocs Inc. | 414,110 | 5,959 |
* | Jack in the Box Inc. | 195,073 | 5,579 |
Buckle Inc. | 124,708 | 5,567 | |
Arbitron Inc. | 119,119 | 5,560 | |
* | Marriott Vacations | ||
Worldwide Corp. | 130,399 | 5,434 | |
* | Jos A Bank Clothiers Inc. | 127,237 | 5,418 |
* | Meritage Homes Corp. | 140,980 | 5,266 |
* | Helen of Troy Ltd. | 144,804 | 4,835 |
* | Children’s Place Retail | ||
Stores Inc. | 107,416 | 4,757 | |
* | DineEquity Inc. | 70,417 | 4,718 |
Monro Muffler Brake Inc. | 133,605 | 4,672 | |
Texas Roadhouse Inc. | |||
Class A | 266,957 | 4,485 | |
Finish Line Inc. Class A | 231,493 | 4,382 |
Market | |||
Value | |||
Shares | ($000) | ||
* | Papa John’s | ||
International Inc. | 78,929 | 4,336 | |
* | Pinnacle Entertainment Inc. | 268,312 | 4,247 |
Sturm Ruger & Co. Inc. | 87,250 | 3,961 | |
OfficeMax Inc. | 395,033 | 3,856 | |
* | SHFL Entertainment Inc. | 254,815 | 3,695 |
* | BJ’s Restaurants Inc. | 112,287 | 3,694 |
* | Standard Pacific Corp. | 501,821 | 3,688 |
Stage Stores Inc. | 144,573 | 3,583 | |
Lithia Motors Inc. Class A | 95,343 | 3,568 | |
Sonic Automotive Inc. | |||
Class A | 166,690 | 3,482 | |
Interval Leisure Group Inc. | 176,044 | 3,414 | |
Brown Shoe Co. Inc. | 185,511 | 3,408 | |
La-Z-Boy Inc. | 238,818 | 3,379 | |
Cato Corp. Class A | 122,684 | 3,365 | |
* | Skechers U.S.A. Inc. | ||
Class A | 174,094 | 3,221 | |
Ethan Allen Interiors Inc. | 118,185 | 3,039 | |
Oxford Industries Inc. | 64,833 | 3,006 | |
* | American Public | ||
Education Inc. | 82,178 | 2,967 | |
True Religion Apparel Inc. | 110,331 | 2,805 | |
Drew Industries Inc. | 85,607 | 2,761 | |
* | Sonic Corp. | 248,071 | 2,582 |
CEC Entertainment Inc. | 76,510 | 2,539 | |
* | M/I Homes Inc. | 94,114 | 2,494 |
Movado Group Inc. | 80,586 | 2,472 | |
American Greetings Corp. | |||
Class A | 143,971 | 2,432 | |
* | Quiksilver Inc. | 566,631 | 2,408 |
Pep Boys-Manny | |||
Moe & Jack | 241,756 | 2,376 | |
* | iRobot Corp. | 118,802 | 2,226 |
* | Winnebago Industries Inc. | 128,968 | 2,209 |
* | Blue Nile Inc. | 56,912 | 2,191 |
Superior Industries | |||
International Inc. | 105,478 | 2,152 | |
* | Ruby Tuesday Inc. | 272,398 | 2,141 |
* | Biglari Holdings Inc. | 5,478 | 2,137 |
Callaway Golf Co. | 323,253 | 2,101 |
91
Tax-Managed Small-Cap Fund | |||
Market | |||
Value | |||
Shares | ($000) | ||
* | Maidenform Brands Inc. | 107,271 | 2,091 |
* | Red Robin Gourmet | ||
Burgers Inc. | 58,974 | 2,081 | |
Fred’s Inc. Class A | 153,665 | 2,045 | |
* | rue21 inc | 71,390 | 2,027 |
* | Arctic Cat Inc. | 60,259 | 2,012 |
Standard Motor | |||
Products Inc. | 89,212 | 1,982 | |
* | Zumiez Inc. | 101,377 | 1,968 |
* | Multimedia Games | ||
Holding Co. Inc. | 128,387 | 1,889 | |
Hot Topic Inc. | 192,663 | 1,859 | |
* | Capella Education Co. | 52,022 | 1,469 |
Haverty Furniture Cos. Inc. | 89,391 | 1,458 | |
* | EW Scripps Co. Class A | 129,423 | 1,399 |
* | Universal Electronics Inc. | 68,168 | 1,319 |
* | Digital Generation Inc. | 115,667 | 1,256 |
* | ITT Educational Services Inc. | 70,613 | 1,222 |
* | Tuesday Morning Corp. | 191,516 | 1,197 |
JAKKS Pacific Inc. | 94,204 | 1,179 | |
* | Ruth’s Hospitality | ||
Group Inc. | 160,735 | 1,169 | |
Harte-Hanks Inc. | 197,242 | 1,164 | |
Marcus Corp. | 90,255 | 1,125 | |
Perry Ellis International Inc. | 54,443 | 1,083 | |
Nutrisystem Inc. | 129,886 | 1,064 | |
PetMed Express Inc. | 91,065 | 1,011 | |
Big 5 Sporting Goods Corp. | 76,617 | 1,004 | |
Universal Technical | |||
Institute Inc. | 98,328 | 987 | |
* | MarineMax Inc. | 107,194 | 958 |
Stein Mart Inc. | 125,330 | 945 | |
* | Christopher & Banks Corp. | 168,386 | 918 |
* | Corinthian Colleges Inc. | 352,878 | 861 |
Blyth Inc. | 51,229 | 797 | |
* | Kirkland’s Inc. | 67,843 | 718 |
Spartan Motors Inc. | 140,786 | 694 | |
* | VOXX International Corp. | ||
Class A | 84,828 | 571 | |
* | Zale Corp. | 118,020 | 485 |
* | Monarch Casino | ||
& Resort Inc. | 42,401 | 463 | |
* | Coldwater Creek Inc. | 91,724 | 441 |
* | Boyd Gaming Corp. | 58,654 | 389 |
* | K-Swiss Inc. Class A | 107,245 | 360 |
Lincoln Educational | |||
Services Corp. | 64,249 | 359 | |
* | Career Education Corp. | 91,888 | 323 |
* | Cabela’s Inc. | 1,001 | 42 |
352,313 | |||
Consumer Staples (3.9%) | |||
* | Hain Celestial Group Inc. | 203,965 | 11,059 |
Casey’s General Stores Inc. | 174,148 | 9,247 | |
* | Darling International Inc. | 535,584 | 8,591 |
* | TreeHouse Foods Inc. | 164,483 | 8,575 |
B&G Foods Inc. | 238,718 | 6,758 |
Market | |||
Value | |||
Shares | ($000) | ||
Snyders-Lance Inc. | 218,912 | 5,278 | |
* | Boston Beer Co. Inc. | ||
Class A | 38,148 | 5,129 | |
* | Prestige Brands | ||
Holdings Inc. | 229,993 | 4,607 | |
Sanderson Farms Inc. | 90,940 | 4,324 | |
J&J Snack Foods Corp. | 67,421 | 4,311 | |
Andersons Inc. | 78,773 | 3,379 | |
WD-40 Co. | 67,201 | 3,166 | |
Cal-Maine Foods Inc. | 63,167 | 2,541 | |
* | Central Garden and Pet Co. | ||
Class A | 187,299 | 1,957 | |
* | Medifast Inc. | 62,179 | 1,641 |
Spartan Stores Inc. | 98,984 | 1,520 | |
Calavo Growers Inc. | 57,873 | 1,459 | |
Inter Parfums Inc. | 73,739 | 1,435 | |
* | Alliance One | ||
International Inc. | 375,147 | 1,366 | |
Nash Finch Co. | 55,853 | 1,189 | |
* | Seneca Foods Corp. | ||
Class A | 35,312 | 1,073 | |
Diamond Foods Inc. | 32,218 | 440 | |
89,045 | |||
Energy (4.1%) | |||
* | Gulfport Energy Corp. | 270,479 | 10,338 |
Lufkin Industries Inc. | 152,907 | 8,889 | |
Bristow Group Inc. | 163,776 | 8,788 | |
SEACOR Holdings Inc. | 90,142 | 7,554 | |
* | Exterran Holdings Inc. | 295,483 | 6,477 |
* | Cloud Peak Energy Inc. | 278,237 | 5,378 |
* | Geospace Technologies | ||
Corp. | 58,022 | 5,156 | |
* | Hornbeck Offshore | ||
Services Inc. | 145,097 | 4,983 | |
* | Stone Energy Corp. | 225,360 | 4,624 |
* | PDC Energy Inc. | 137,749 | 4,575 |
* | Approach Resources Inc. | 150,877 | 3,773 |
* | ION Geophysical Corp. | 546,974 | 3,561 |
* | Carrizo Oil & Gas Inc. | 166,051 | 3,474 |
* | Comstock Resources Inc. | 203,941 | 3,086 |
* | Swift Energy Co. | 195,377 | 3,007 |
* | TETRA Technologies Inc. | 355,568 | 2,699 |
Contango Oil & Gas Co. | 58,090 | 2,461 | |
Gulf Island Fabrication Inc. | 65,578 | 1,576 | |
* | Basic Energy Services Inc. | 124,522 | 1,421 |
* | PetroQuest Energy Inc. | 256,659 | 1,270 |
Penn Virginia Corp. | 250,219 | 1,103 | |
* | Pioneer Energy | ||
Services Corp. | 83,949 | 609 | |
* | Matrix Service Co. | 48,789 | 561 |
95,363 | |||
Exchange-Traded Fund (4.1%) | |||
1 | Vanguard REIT ETF | 1,418,000 | 93,304 |
Financials (16.8%) | |||
ProAssurance Corp. | 279,438 | 11,789 |
92
Tax-Managed Small-Cap Fund | |||
Market | |||
Value | |||
Shares | ($000) | ||
Susquehanna | |||
Bancshares Inc. | 848,031 | 8,887 | |
Extra Space Storage Inc. | 232,833 | 8,473 | |
* | Texas Capital | ||
Bancshares Inc. | 183,981 | 8,246 | |
* | Portfolio Recovery | ||
Associates Inc. | 76,742 | 8,201 | |
Kilroy Realty Corp. | 169,618 | 8,035 | |
Tanger Factory | |||
Outlet Centers | 213,779 | 7,311 | |
* | Stifel Financial Corp. | 227,001 | 7,257 |
FNB Corp. | 636,612 | 6,761 | |
UMB Financial Corp. | 147,846 | 6,482 | |
Post Properties Inc. | 123,875 | 6,188 | |
Mid-America Apartment | |||
Communities Inc. | 94,347 | 6,109 | |
Wintrust Financial Corp. | 165,881 | 6,088 | |
Umpqua Holdings Corp. | 509,660 | 6,009 | |
MarketAxess Holdings Inc. | 169,746 | 5,992 | |
* | First Cash Financial | ||
Services Inc. | 119,948 | 5,952 | |
Old National Bancorp | 461,780 | 5,481 | |
LaSalle Hotel Properties | 214,583 | 5,448 | |
Northwest Bancshares Inc. | 444,588 | 5,397 | |
First Financial | |||
Bankshares Inc. | 136,139 | 5,311 | |
Cash America | |||
International Inc. | 132,284 | 5,248 | |
* | Financial Engines Inc. | 186,373 | 5,172 |
National Penn | |||
Bancshares Inc. | 550,956 | 5,135 | |
United Bankshares Inc. | 208,266 | 5,065 | |
RLI Corp. | 77,255 | 4,995 | |
Community Bank | |||
System Inc. | 180,242 | 4,931 | |
EPR Properties | 106,566 | 4,914 | |
Selective Insurance | |||
Group Inc. | 250,404 | 4,825 | |
Glacier Bancorp Inc. | 327,602 | 4,819 | |
Healthcare Realty Trust Inc. | 197,774 | 4,749 | |
Bank of the Ozarks Inc. | 134,227 | 4,493 | |
* | World Acceptance Corp. | 58,785 | 4,383 |
Prospect Capital Corp. | 402,847 | 4,379 | |
PrivateBancorp Inc. | 284,704 | 4,362 | |
First Midwest Bancorp Inc. | 340,828 | 4,267 | |
Sovran Self Storage Inc. | 67,669 | 4,202 | |
CVB Financial Corp. | 400,909 | 4,169 | |
BBCN Bancorp Inc. | 355,353 | 4,111 | |
* | Ezcorp Inc. Class A | 205,819 | 4,088 |
Colonial Properties Trust | 188,601 | 4,030 | |
DiamondRock | |||
Hospitality Co. | 444,325 | 3,999 | |
First Financial Bancorp | 266,445 | 3,895 | |
Medical Properties | |||
Trust Inc. | 308,614 | 3,691 |
Market | |||
Value | |||
Shares | ($000) | ||
Provident Financial | |||
Services Inc. | 246,506 | 3,678 | |
PacWest Bancorp | 146,538 | 3,631 | |
EastGroup Properties Inc. | 67,110 | 3,611 | |
Horace Mann | |||
Educators Corp. | 179,317 | 3,579 | |
Lexington Realty Trust | 337,651 | 3,528 | |
Home BancShares Inc. | 104,486 | 3,450 | |
ViewPoint Financial | |||
Group Inc. | 162,056 | 3,393 | |
Columbia Banking | |||
System Inc. | 180,710 | 3,242 | |
Boston Private Financial | |||
Holdings Inc. | 359,459 | 3,239 | |
* | Encore Capital Group Inc. | 105,570 | 3,233 |
* | Virtus Investment | ||
Partners Inc. | 26,374 | 3,190 | |
First Commonwealth | |||
Financial Corp. | 465,278 | 3,173 | |
NBT Bancorp Inc. | 153,612 | 3,114 | |
* | National Financial | ||
Partners Corp. | 181,402 | 3,109 | |
Infinity Property | |||
& Casualty Corp. | 53,128 | 3,094 | |
Independent Bank Corp. | 103,459 | 2,995 | |
Employers Holdings Inc. | 139,847 | 2,878 | |
Acadia Realty Trust | 112,778 | 2,828 | |
* | Pinnacle Financial | ||
Partners Inc. | 148,450 | 2,797 | |
Tower Group Inc. | 157,253 | 2,794 | |
* | Forestar Group Inc. | 157,901 | 2,736 |
Oritani Financial Corp. | 177,173 | 2,714 | |
Brookline Bancorp Inc. | 318,907 | 2,711 | |
Safety Insurance Group Inc. | 57,871 | 2,672 | |
PS Business Parks Inc. | 40,879 | 2,656 | |
Interactive Brokers | |||
Group Inc. | 185,947 | 2,544 | |
* | eHealth Inc. | 90,458 | 2,486 |
* | Navigators Group Inc. | 47,932 | 2,448 |
LTC Properties Inc. | 69,411 | 2,443 | |
Banner Corp. | 79,126 | 2,432 | |
S&T Bancorp Inc. | 133,344 | 2,410 | |
* | Piper Jaffray Cos. | 74,010 | 2,378 |
Government Properties | |||
Income Trust | 98,250 | 2,355 | |
City Holding Co. | 67,530 | 2,353 | |
TrustCo Bank Corp. NY | 427,781 | 2,259 | |
* | AMERISAFE Inc. | 82,813 | 2,257 |
HFF Inc. Class A | 148,490 | 2,212 | |
United Fire Group Inc. | 99,495 | 2,173 | |
Pennsylvania REIT | 119,730 | 2,112 | |
Stewart Information | |||
Services Corp. | 81,014 | 2,106 | |
Tompkins Financial Corp. | 52,253 | 2,071 | |
Franklin Street | |||
Properties Corp. | 164,250 | 2,022 |
93
Tax-Managed Small-Cap Fund | |||
Market | |||
Value | |||
Shares | ($000) | ||
* | United Community | ||
Banks Inc. | 210,211 | 1,980 | |
* | Hanmi Financial Corp. | 143,389 | 1,949 |
Simmons First National | |||
Corp. Class A | 75,777 | 1,922 | |
Sabra Health Care REIT Inc. | 84,298 | 1,831 | |
Dime Community | |||
Bancshares Inc. | 131,253 | 1,823 | |
Cousins Properties Inc. | 206,220 | 1,722 | |
* | Wilshire Bancorp Inc. | 282,432 | 1,658 |
* | Investment Technology | ||
Group Inc. | 172,837 | 1,556 | |
* | First BanCorp | 319,204 | 1,462 |
Universal Health Realty | |||
Income Trust | 28,821 | 1,459 | |
Sterling Bancorp | 140,427 | 1,279 | |
Saul Centers Inc. | 28,982 | 1,240 | |
Urstadt Biddle | |||
Properties Inc. Class A | 58,075 | 1,143 | |
Getty Realty Corp. | 60,787 | 1,098 | |
Parkway Properties Inc. | 75,959 | 1,063 | |
Kite Realty Group Trust | 163,777 | 915 | |
Inland Real Estate Corp. | 107,973 | 905 | |
Bank Mutual Corp. | 195,236 | 839 | |
* | SWS Group Inc. | 127,525 | 675 |
Cedar Realty Trust Inc. | 124,138 | 655 | |
Calamos Asset | |||
Management Inc. | |||
Class A | 36,692 | 388 | |
Meadowbrook | |||
Insurance Group Inc. | 44,081 | 255 | |
388,262 | |||
Health Care (10.6%) | |||
* | Cubist Pharmaceuticals Inc. | 292,771 | 12,314 |
* | Centene Corp. | 234,772 | 9,626 |
* | Haemonetics Corp. | 234,800 | 9,589 |
* | Salix Pharmaceuticals Ltd. | 227,440 | 9,207 |
* | Align Technology Inc. | 325,674 | 9,037 |
West Pharmaceutical | |||
Services Inc. | 155,342 | 8,505 | |
* | PAREXEL International | ||
Corp. | 267,853 | 7,926 | |
Questcor | |||
Pharmaceuticals Inc. | 265,867 | 7,104 | |
* | ViroPharma Inc. | 299,600 | 6,819 |
* | PSS World Medical Inc. | 229,153 | 6,618 |
* | Magellan Health | ||
Services Inc. | 125,578 | 6,153 | |
* | MWI Veterinary Supply Inc. | 54,737 | 6,021 |
Chemed Corp. | 87,553 | 6,005 | |
* | Medicines Co. | 244,918 | 5,871 |
Air Methods Corp. | 158,661 | 5,853 | |
* | Cyberonics Inc. | 108,550 | 5,702 |
* | Neogen Corp. | 101,445 | 4,597 |
* | Acorda Therapeutics Inc. | 182,831 | 4,545 |
* | Amsurg Corp. Class A | 144,220 | 4,328 |
Market | |||
Value | |||
Shares | ($000) | ||
* | Hanger Inc. | 155,959 | 4,267 |
Analogic Corp. | 55,671 | 4,136 | |
* | Akorn Inc. | 308,522 | 4,122 |
* | Medidata Solutions Inc. | 101,129 | 3,963 |
Meridian Bioscience Inc. | 187,975 | 3,807 | |
* | Molina Healthcare Inc. | 135,675 | 3,671 |
CONMED Corp. | 129,716 | 3,626 | |
* | ICU Medical Inc. | 57,677 | 3,514 |
Abaxis Inc. | 93,866 | 3,482 | |
* | Integra LifeSciences | ||
Holdings Corp. | 88,651 | 3,455 | |
* | Bio-Reference Labs Inc. | 110,968 | 3,184 |
* | NuVasive Inc. | 198,222 | 3,065 |
* | IPC The Hospitalist Co. Inc. | 75,945 | 3,016 |
Cantel Medical Corp. | 97,382 | 2,895 | |
* | Luminex Corp. | 172,228 | 2,887 |
Landauer Inc. | 43,044 | 2,635 | |
Spectrum | |||
Pharmaceuticals Inc. | 235,154 | 2,631 | |
* | Kindred Healthcare Inc. | 242,617 | 2,625 |
* | Merit Medical Systems Inc. | 180,979 | 2,516 |
* | Greatbatch Inc. | 107,888 | 2,507 |
Quality Systems Inc. | 142,523 | 2,474 | |
* | Momenta | ||
Pharmaceuticals Inc. | 207,118 | 2,440 | |
Computer Programs | |||
& Systems Inc. | 47,421 | 2,387 | |
* | AMN Healthcare | ||
Services Inc. | 202,083 | 2,334 | |
* | Omnicell Inc. | 151,021 | 2,246 |
* | ABIOMED Inc. | 163,313 | 2,198 |
* | HealthStream Inc. | 89,543 | 2,177 |
Ensign Group Inc. | 79,421 | 2,159 | |
Invacare Corp. | 132,284 | 2,156 | |
* | PharMerica Corp. | 134,194 | 1,911 |
* | Emergent Biosolutions Inc. | 115,915 | 1,859 |
* | Symmetry Medical Inc. | 167,487 | 1,762 |
Hi-Tech Pharmacal Co. Inc. | 50,023 | 1,750 | |
* | Healthways Inc. | 154,362 | 1,652 |
* | Amedisys Inc. | 140,032 | 1,578 |
* | Cambrex Corp. | 135,011 | 1,536 |
* | LHC Group Inc. | 67,179 | 1,431 |
* | Gentiva Health Services Inc. | 129,510 | 1,302 |
* | Corvel Corp. | 28,079 | 1,259 |
* | SurModics Inc. | 55,341 | 1,237 |
* | Natus Medical Inc. | 108,272 | 1,210 |
* | Affymetrix Inc. | 321,740 | 1,020 |
Almost Family Inc. | 37,566 | 761 | |
* | Palomar Medical | ||
Technologies Inc. | 80,404 | 741 | |
CryoLife Inc. | 112,819 | 703 | |
* | Cross Country | ||
Healthcare Inc. | 140,655 | 675 | |
* | Enzo Biochem Inc. | 118,109 | 319 |
* | Arqule Inc. | 68,837 | 192 |
245,293 |
94
Tax-Managed Small-Cap Fund | |||
Market | |||
Value | |||
Shares | ($000) | ||
Industrials (15.8%) | |||
Robbins & Myers Inc. | 193,869 | 11,525 | |
Toro Co. | 267,457 | 11,495 | |
AO Smith Corp. | 176,556 | 11,135 | |
* | Old Dominion Freight | ||
Line Inc. | 321,709 | 11,028 | |
* | Teledyne Technologies Inc. | 167,719 | 10,913 |
EMCOR Group Inc. | 302,940 | 10,485 | |
Actuant Corp. Class A | 331,862 | 9,262 | |
Geo Group Inc. | 322,931 | 9,107 | |
Belden Inc. | 200,831 | 9,035 | |
* | Moog Inc. Class A | 206,465 | 8,471 |
* | EnerSys Inc. | 220,543 | 8,299 |
Applied Industrial | |||
Technologies Inc. | 191,450 | 8,043 | |
* | Tetra Tech Inc. | 290,667 | 7,688 |
Healthcare Services | |||
Group Inc. | 307,775 | 7,150 | |
Curtiss-Wright Corp. | 213,035 | 6,994 | |
Brady Corp. Class A | 209,092 | 6,984 | |
Mueller Industries Inc. | 127,706 | 6,389 | |
Simpson Manufacturing | |||
Co. Inc. | 182,617 | 5,988 | |
United Stationers Inc. | 183,185 | 5,677 | |
Watts Water | |||
Technologies Inc. | |||
Class A | 127,408 | 5,477 | |
Franklin Electric Co. Inc. | 87,689 | 5,452 | |
* | Hub Group Inc. Class A | 161,602 | 5,430 |
Allegiant Travel Co. Class A | 69,367 | 5,092 | |
UniFirst Corp. | 68,147 | 4,997 | |
Barnes Group Inc. | 214,332 | 4,814 | |
Forward Air Corp. | 133,532 | 4,675 | |
Lindsay Corp. | 57,934 | 4,642 | |
ABM Industries Inc. | 229,650 | 4,582 | |
Briggs & Stratton Corp. | 216,361 | 4,561 | |
* | II-VI Inc. | 248,077 | 4,532 |
ESCO Technologies Inc. | 121,119 | 4,531 | |
Kaman Corp. | 120,794 | 4,445 | |
AZZ Inc. | 115,231 | 4,428 | |
Interface Inc. Class A | 261,203 | 4,200 | |
* | On Assignment Inc. | 197,887 | 4,013 |
* | Aegion Corp. Class A | 178,784 | 3,967 |
Knight Transportation Inc. | 268,632 | 3,930 | |
* | EnPro Industries Inc. | 94,326 | 3,858 |
Tennant Co. | 84,615 | 3,719 | |
* | Mobile Mini Inc. | 172,730 | 3,598 |
Cubic Corp. | 73,021 | 3,503 | |
* | Korn/Ferry International | 220,602 | 3,499 |
Kaydon Corp. | 146,140 | 3,497 | |
Quanex Building | |||
Products Corp. | 168,150 | 3,432 | |
Universal Forest | |||
Products Inc. | 90,079 | 3,427 | |
AAR Corp. | 181,826 | 3,396 | |
* | Exponent Inc. | 60,137 | 3,357 |
Market | |||
Value | |||
Shares | ($000) | ||
Insperity Inc. | 100,445 | 3,270 | |
Astec Industries Inc. | 95,454 | 3,181 | |
CIRCOR International Inc. | 79,294 | 3,139 | |
Apogee Enterprises Inc. | 129,202 | 3,097 | |
Albany International Corp. | 131,473 | 2,982 | |
G&K Services Inc. Class A | 86,829 | 2,965 | |
Standex International Corp. | 57,624 | 2,956 | |
* | Dycom Industries Inc. | 147,675 | 2,924 |
SkyWest Inc. | 233,325 | 2,907 | |
* | TrueBlue Inc. | 182,895 | 2,881 |
Heartland Express Inc. | 209,077 | 2,733 | |
* | Orbital Sciences Corp. | 198,422 | 2,732 |
* | Sykes Enterprises Inc. | 177,420 | 2,700 |
* | Navigant Consulting Inc. | 232,865 | 2,599 |
Encore Wire Corp. | 84,663 | 2,566 | |
* | GenCorp Inc. | 275,421 | 2,520 |
Viad Corp. | 92,257 | 2,506 | |
American Science | |||
& Engineering Inc. | 37,707 | 2,459 | |
Griffon Corp. | 207,622 | 2,379 | |
John Bean Technologies | |||
Corp. | 131,657 | 2,340 | |
Resources Connection Inc. | 188,599 | 2,252 | |
* | Federal Signal Corp. | 283,650 | 2,159 |
* | Gibraltar Industries Inc. | 130,800 | 2,082 |
Comfort Systems USA Inc. | 169,701 | 2,064 | |
Kelly Services Inc. Class A | 123,234 | 1,940 | |
AAON Inc. | 84,789 | 1,770 | |
* | Powell Industries Inc. | 41,190 | 1,711 |
National Presto | |||
Industries Inc. | 22,221 | 1,535 | |
* | Engility Holdings Inc. | 74,958 | 1,444 |
* | Consolidated Graphics Inc. | 37,129 | 1,297 |
* | NCI Building Systems Inc. | 86,154 | 1,198 |
* | Lydall Inc. | 77,313 | 1,109 |
CDI Corp. | 63,403 | 1,086 | |
Arkansas Best Corp. | 108,405 | 1,035 | |
* | Orion Marine Group Inc. | 123,119 | 900 |
* | Aerovironment Inc. | 27,348 | 595 |
Cascade Corp. | 5,196 | 334 | |
* | Vicor Corp. | 13,347 | 72 |
* | Dolan Co. | 4,446 | 17 |
Heidrick & Struggles | |||
International Inc. | 222 | 3 | |
365,161 | |||
Information Technology (18.4%) | |||
* | CommVault Systems Inc. | 192,004 | 13,385 |
* | Cymer Inc. | 141,475 | 12,794 |
* | 3D Systems Corp. | 218,573 | 11,661 |
MAXIMUS Inc. | 155,001 | 9,799 | |
FEI Co. | 173,286 | 9,610 | |
* | Microsemi Corp. | 408,699 | 8,599 |
* | Cirrus Logic Inc. | 296,191 | 8,581 |
Anixter International Inc. | 121,798 | 7,793 | |
* | Arris Group Inc. | 515,610 | 7,703 |
* | Hittite Microwave Corp. | 123,225 | 7,652 |
95
Tax-Managed Small-Cap Fund | |||
Market | |||
Value | |||
Shares | ($000) | ||
* | ViaSat Inc. | 181,596 | 7,064 |
* | NETGEAR Inc. | 174,136 | 6,864 |
Cognex Corp. | 181,896 | 6,697 | |
* | Sourcefire Inc. | 137,017 | 6,470 |
MKS Instruments Inc. | 239,633 | 6,178 | |
Littelfuse Inc. | 99,351 | 6,131 | |
* | Progress Software Corp. | 290,499 | 6,098 |
j2 Global Inc. | 196,149 | 5,998 | |
* | Tyler Technologies Inc. | 119,503 | 5,789 |
* | CACI International Inc. | ||
Class A | 103,875 | 5,716 | |
* | Dealertrack | ||
Technologies Inc. | 194,501 | 5,586 | |
Coherent Inc. | 108,732 | 5,504 | |
* | OSI Systems Inc. | 85,326 | 5,464 |
* | Manhattan Associates Inc. | 90,433 | 5,457 |
* | Veeco Instruments Inc. | 178,274 | 5,263 |
* | OpenTable Inc. | 103,423 | 5,047 |
Heartland Payment | |||
Systems Inc. | 170,673 | 5,035 | |
* | Cardtronics Inc. | 202,305 | 4,803 |
Blackbaud Inc. | 205,656 | 4,695 | |
* | Liquidity Services Inc. | 111,268 | 4,546 |
* | Take-Two Interactive | ||
Software Inc. | 412,391 | 4,540 | |
* | Ultratech Inc. | 121,569 | 4,535 |
* | Synaptics Inc. | 149,973 | 4,495 |
* | Bottomline | ||
Technologies Inc. | 169,173 | 4,465 | |
Power Integrations Inc. | 131,916 | 4,434 | |
NIC Inc. | 267,287 | 4,367 | |
* | Netscout Systems Inc. | 163,658 | 4,253 |
* | Benchmark Electronics Inc. | 252,444 | 4,196 |
* | SYNNEX Corp. | 120,674 | 4,149 |
* | Plexus Corp. | 159,692 | 4,120 |
* | Kulicke & Soffa | ||
Industries Inc. | 341,019 | 4,089 | |
* | Electronics for | ||
Imaging Inc. | 212,006 | 4,026 | |
* | ScanSource Inc. | 125,883 | 3,999 |
Tessera Technologies Inc. | 237,453 | 3,899 | |
* | Rogers Corp. | 75,537 | 3,751 |
Cabot Microelectronics | |||
Corp. | 105,580 | 3,749 | |
* | MicroStrategy Inc. Class A | 39,637 | 3,701 |
* | Ixia | 215,912 | 3,666 |
* | TriQuint Semiconductor Inc. | 752,671 | 3,643 |
MTS Systems Corp. | 71,304 | 3,632 | |
* | Insight Enterprises Inc. | 202,822 | 3,523 |
Monolithic Power | |||
Systems Inc. | 142,458 | 3,174 | |
* | ExlService Holdings Inc. | 118,559 | 3,142 |
Badger Meter Inc. | 65,055 | 3,084 | |
* | ATMI Inc. | 145,741 | 3,043 |
* | LivePerson Inc. | 228,916 | 3,008 |
Blucora Inc. | 184,841 | 2,904 |
Market | |||
Value | |||
Shares | ($000) | ||
* | CSG Systems | ||
International Inc. | 153,491 | 2,790 | |
* | Rofin-Sinar | ||
Technologies Inc. | 127,734 | 2,769 | |
* | FARO Technologies Inc. | 77,238 | 2,756 |
Monotype Imaging | |||
Holdings Inc. | 168,128 | 2,687 | |
* | Synchronoss | ||
Technologies Inc. | 123,454 | 2,604 | |
* | Intermec Inc. | 255,468 | 2,519 |
* | Websense Inc. | 166,148 | 2,499 |
Brooks Automation Inc. | 302,056 | 2,432 | |
* | Measurement | ||
Specialties Inc. | 69,756 | 2,397 | |
Ebix Inc. | 145,934 | 2,345 | |
* | Newport Corp. | 174,353 | 2,345 |
* | Digital River Inc. | 161,737 | 2,327 |
United Online Inc. | 414,286 | 2,316 | |
* | Interactive Intelligence | ||
Group Inc. | 67,704 | 2,271 | |
Park Electrochemical Corp. | 88,049 | 2,266 | |
* | Advanced Energy | ||
Industries Inc. | 160,392 | 2,215 | |
* | TTM Technologies Inc. | 238,737 | 2,196 |
* | iGATE Corp. | 138,814 | 2,189 |
* | Entropic | ||
Communications Inc. | 403,191 | 2,133 | |
* | Dice Holdings Inc. | 228,111 | 2,094 |
Micrel Inc. | 214,012 | 2,033 | |
* | comScore Inc. | 146,743 | 2,022 |
* | Harmonic Inc. | 398,822 | 2,022 |
Comtech | |||
Telecommunications Corp. | 79,155 | 2,009 | |
* | Checkpoint Systems Inc. | 184,775 | 1,985 |
* | Rudolph Technologies Inc. | 147,243 | 1,980 |
* | Volterra Semiconductor | ||
Corp. | 114,034 | 1,958 | |
Daktronics Inc. | 169,195 | 1,873 | |
* | Exar Corp. | 208,663 | 1,857 |
EPIQ Systems Inc. | 145,233 | 1,856 | |
* | TeleTech Holdings Inc. | 102,717 | 1,828 |
Black Box Corp. | 75,111 | 1,828 | |
* | Perficient Inc. | 150,792 | 1,776 |
Forrester Research Inc. | 65,935 | 1,767 | |
CTS Corp. | 153,747 | 1,634 | |
* | Stamps.com Inc. | 63,923 | 1,611 |
* | Ceva Inc. | 102,085 | 1,608 |
Methode Electronics Inc. | 160,236 | 1,607 | |
* | Diodes Inc. | 88,407 | 1,534 |
* | Virtusa Corp. | 91,740 | 1,507 |
* | Nanometrics Inc. | 96,791 | 1,396 |
* | Oplink Communications Inc. | 87,086 | 1,357 |
* | GT Advanced | ||
Technologies Inc. | 446,542 | 1,349 | |
* | Procera Networks Inc. | 69,581 | 1,291 |
* | Super Micro Computer Inc. | 119,101 | 1,215 |
96
Tax-Managed Small-Cap Fund | |||
Market | |||
Value | |||
Shares | ($000) | ||
* | Digi International Inc. | 119,318 | 1,130 |
* | Symmetricom Inc. | 186,186 | 1,074 |
* | VASCO Data Security | ||
International Inc. | 130,314 | 1,063 | |
* | Avid Technology Inc. | 137,881 | 1,045 |
* | XO Group Inc. | 111,645 | 1,038 |
* | CIBER Inc. | 302,534 | 1,010 |
* | LogMeIn Inc. | 44,683 | 1,001 |
Bel Fuse Inc. Class B | 47,873 | 936 | |
* | Kopin Corp. | 279,874 | 932 |
Cohu Inc. | 76,933 | 834 | |
Supertex Inc. | 47,482 | 833 | |
* | QuinStreet Inc. | 116,105 | 780 |
* | Pericom Semiconductor | ||
Corp. | 96,978 | 779 | |
* | Sigma Designs Inc. | 150,604 | 776 |
Electro Scientific | |||
Industries Inc. | 69,994 | 696 | |
* | Mercury Systems Inc. | 68,525 | 630 |
PC-Tel Inc. | 77,946 | 561 | |
* | Agilysys Inc. | 63,416 | 531 |
* | Intevac Inc. | 104,521 | 478 |
* | Rubicon Technology Inc. | 76,475 | 467 |
* | Radisys Corp. | 99,078 | 295 |
* | DSP Group Inc. | 47,133 | 272 |
* | NCI Inc. Class A | 38,344 | 180 |
* | DTS Inc. | 1,421 | 24 |
* | STR Holdings Inc. | 7,842 | 20 |
* | Higher One Holdings Inc. | 277 | 3 |
* | Gerber Scientific Inc. CVR | 110,699 | — |
424,010 | |||
Materials (6.6%) | |||
Eagle Materials Inc. | 210,908 | 12,338 | |
PolyOne Corp. | 405,629 | 8,283 | |
HB Fuller Co. | 227,134 | 7,909 | |
* | Stillwater Mining Co. | 531,612 | 6,794 |
Schweitzer-Mauduit | |||
International Inc. | 141,136 | 5,509 | |
Buckeye Technologies Inc. | 175,849 | 5,049 | |
* | SunCoke Energy Inc. | 318,557 | 4,966 |
Balchem Corp. | 133,755 | 4,869 | |
* | Texas Industries Inc. | 94,394 | 4,815 |
Kaiser Aluminum Corp. | 76,508 | 4,720 | |
Innophos Holdings Inc. | 98,893 | 4,599 | |
Stepan Co. | 75,646 | 4,201 | |
* | Clearwater Paper Corp. | 105,622 | 4,136 |
Globe Specialty Metals Inc. | 290,521 | 3,995 | |
KapStone Paper and | |||
Packaging Corp. | 174,744 | 3,878 | |
A Schulman Inc. | 133,219 | 3,854 | |
* | RTI International | ||
Metals Inc. | 138,115 | 3,806 | |
* | Calgon Carbon Corp. | 259,755 | 3,683 |
Koppers Holdings Inc. | 93,670 | 3,573 | |
* | Kraton Performance | ||
Polymers Inc. | 146,879 | 3,529 |
Market | |||
Value | |||
Shares | ($000) | ||
AMCOL International Corp. | 114,920 | 3,526 | |
Deltic Timber Corp. | 49,533 | 3,498 | |
PH Glatfelter Co. | 195,119 | 3,411 | |
American Vanguard Corp. | 108,594 | 3,374 | |
* | OM Group Inc. | 147,375 | 3,272 |
Quaker Chemical Corp. | 59,559 | 3,208 | |
* | LSB Industries Inc. | 85,597 | 3,032 |
Haynes International Inc. | 55,896 | 2,899 | |
* | Headwaters Inc. | 323,923 | 2,773 |
Materion Corp. | 93,052 | 2,399 | |
Tredegar Corp. | 109,686 | 2,240 | |
Myers Industries Inc. | 141,385 | 2,142 | |
Neenah Paper Inc. | 72,163 | 2,054 | |
* | Century Aluminum Co. | 233,700 | 2,047 |
Wausau Paper Corp. | 211,075 | 1,828 | |
AK Steel Holding Corp. | 363,552 | 1,672 | |
Hawkins Inc. | 41,732 | 1,612 | |
Zep Inc. | 101,066 | 1,459 | |
* | AM Castle & Co. | 75,703 | 1,118 |
Olympic Steel Inc. | 41,673 | 923 | |
152,993 | |||
Telecommunication Services (0.5%) | |||
* | Cincinnati Bell Inc. | 907,545 | 4,974 |
Atlantic Tele-Network Inc. | 42,474 | 1,559 | |
* | General Communication Inc. | ||
Class A | 148,104 | 1,420 | |
* | Cbeyond Inc. | 135,789 | 1,228 |
USA Mobility Inc. | 99,834 | 1,166 | |
Lumos Networks Corp. | 66,446 | 666 | |
NTELOS Holdings Corp. | 5,131 | 67 | |
Neutral Tandem Inc. | 8,235 | 21 | |
11,101 | |||
Utilities (4.0%) | |||
Piedmont Natural | |||
Gas Co. Inc. | 327,809 | 10,264 | |
Southwest Gas Corp. | 209,773 | 8,897 | |
UIL Holdings Corp. | 230,164 | 8,242 | |
UNS Energy Corp. | 188,403 | 7,992 | |
New Jersey Resources | |||
Corp. | 189,831 | 7,521 | |
South Jersey Industries Inc. | 141,561 | 7,125 | |
Avista Corp. | 269,476 | 6,497 | |
ALLETE Inc. | 158,264 | 6,486 | |
NorthWestern Corp. | 169,427 | 5,884 | |
El Paso Electric Co. | 182,643 | 5,828 | |
Northwest Natural Gas Co. | 122,340 | 5,407 | |
CH Energy Group Inc. | 67,991 | 4,434 | |
American States Water Co. | 86,970 | 4,173 | |
Laclede Group Inc. | 95,513 | 3,688 | |
92,438 | |||
Total Common Stocks | |||
(Cost $1,627,591) | 2,309,283 |
97
Tax-Managed Small-Cap Fund | ||
Market | ||
Value | ||
Shares | ($000) | |
Temporary Cash Investment (0.0%) | ||
Money Market Fund (0.0%) | ||
2 Vanguard Market | ||
Liquidity Fund, 0.162% | ||
(Cost $31) | 31,315 | 31 |
Total Investments (100.1%) | ||
(Cost $1,627,622) | 2,309,314 | |
Other Assets and Liabilities (-0.1%) | ||
Other Assets | 7,006 | |
Liabilities | (9,329) | |
(2,323) | ||
Net Assets (100%) | 2,306,991 |
At December 31, 2012, net assets consisted of: | |
Amount | |
($000) | |
Paid-in Capital | 1,661,983 |
Overdistributed Net Investment Income | (1,865) |
Accumulated Net Realized Losses | (34,819) |
Unrealized Appreciation (Depreciation) | 681,692 |
Net Assets | 2,306,991 |
Admiral Shares—Net Assets | |
Applicable to 68,434,969 outstanding | |
$.001 par value shares of beneficial | |
interest (unlimited authorization) | 2,132,242 |
Net Asset Value Per Share— | |
Admiral Shares | $31.16 |
Institutional Shares—Net Assets | |
Applicable to 5,596,762 outstanding | |
$.001 par value shares of beneficial | |
interest (unlimited authorization) | 174,749 |
Net Asset Value Per Share— | |
Institutional Shares | $31.22 |
See Note A in Notes to Financial Statements.
* Non-income-producing security.
1 Considered an affiliated company of the fund as the issuer is another member of The Vanguard Group.
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.
REIT—Real Estate Investment Trust.
See accompanying Notes, which are an integral part of the Financial Statements.
98
Tax-Managed Small-Cap Fund | |
Statement of Operations | |
Year Ended | |
December 31, 2012 | |
($000) | |
Investment Income | |
Income | |
Dividends1 | 37,746 |
Interest1 | 3 |
Total Income | 37,749 |
Expenses | |
The Vanguard Group—Note B | |
Investment Advisory Services | 233 |
Management and Administrative—Admiral Shares | 1,573 |
Management and Administrative—Institutional Shares | 61 |
Marketing and Distribution—Admiral Shares | 566 |
Marketing and Distribution—Institutional Shares | 45 |
Custodian Fees | 53 |
Auditing Fees | 28 |
Shareholders’ Reports—Admiral Shares | 17 |
Shareholders’ Reports—Institutional Shares | 2 |
Trustees’ Fees and Expenses | 2 |
Total Expenses | 2,580 |
Net Investment Income | 35,169 |
Realized Net Gain (Loss) on Investment Securities Sold1 | 26,120 |
Change in Unrealized Appreciation (Depreciation) of Investment Securities | 260,786 |
Net Increase (Decrease) in Net Assets Resulting from Operations | 322,075 |
1 Dividend income, interest income, and realized net gain (loss) from affiliated companies of the fund were $671,000, $3,000, and $12,399,000, respectively.
See accompanying Notes, which are an integral part of the Financial Statements.
99
Tax-Managed Small-Cap Fund | ||
Statement of Changes in Net Assets | ||
Year Ended December 31, | ||
2012 | 2011 | |
($000) | ($000) | |
Increase (Decrease) in Net Assets | ||
Operations | ||
Net Investment Income | 35,169 | 17,974 |
Realized Net Gain (Loss) | 26,120 | 103,170 |
Change in Unrealized Appreciation (Depreciation) | 260,786 | (94,648) |
Net Increase (Decrease) in Net Assets Resulting from Operations | 322,075 | 26,496 |
Distributions | ||
Net Investment Income | ||
Admiral Shares1 | (31,431) | (16,493) |
Institutional Shares | (2,715) | (1,326) |
Realized Capital Gain | ||
Admiral Shares1 | — | — |
Institutional Shares | — | — |
Total Distributions | (34,146) | (17,819) |
Capital Share Transactions | ||
Admiral Shares1 | 8,542 | (28,775) |
Institutional Shares | 4,886 | (862) |
Net Increase (Decrease) from Capital Share Transactions | 13,428 | (29,637) |
Total Increase (Decrease) | 301,357 | (20,960) |
Net Assets | ||
Beginning of Period | 2,005,634 | 2,026,594 |
End of Period2 | 2,306,991 | 2,005,634 |
1 Investor Shares were renamed Admiral Shares as of the close of business on May 13, 2011.
2 Net Assets—End of Period includes undistributed (overdistributed) net investment income of ($1,865,000) and ($2,888,000).
See accompanying Notes, which are an integral part of the Financial Statements.
100
Tax-Managed Small-Cap Fund | |||||
Financial Highlights | |||||
Admiral Shares | |||||
For a Share Outstanding | Year Ended December 31, | ||||
Throughout Each Period | 2012 | 2011 | 2010 | 2009 | 2008 |
Net Asset Value, Beginning of Period | $27.26 | $27.17 | $21.75 | $17.44 | $25.62 |
Investment Operations | |||||
Net Investment Income | .479 | .245 | .231 | .146 | .266 |
Net Realized and Unrealized Gain (Loss) | |||||
on Investments1 | 3.885 | .089 | 5.424 | 4.316 | (8.174) |
Total from Investment Operations | 4.364 | .334 | 5.655 | 4.462 | (7.908) |
Distributions | |||||
Dividends from Net Investment Income | (.464) | (.244) | (.235) | (.152) | (.272) |
Distributions from Realized Capital Gains | — | — | — | — | — |
Total Distributions | (.464) | (.244) | (.235) | (.152) | (.272) |
Net Asset Value, End of Period | $31.16 | $27.26 | $27.17 | $21.75 | $17.44 |
Total Return2 | 16.03% | 1.22% | 25.99% | 25.59% | -30.82% |
Ratios/Supplemental Data | |||||
Net Assets, End of Period (Millions) | $2,132 | $1,857 | $1,879 | $1,527 | $1,258 |
Ratio of Total Expenses to | |||||
Average Net Assets | 0.12% | 0.12% | 0.18% | 0.19% | 0.14% |
Ratio of Net Investment Income to | |||||
Average Net Assets | 1.59% | 0.88% | 0.98% | 0.79% | 1.16% |
Portfolio Turnover Rate3 | 42% | 40% | 46% | 37% | 32% |
Investor Shares were renamed Admiral Shares as of the close of business on May 13, 2011. Prior periods’ Financial Highlights are for the Investor Class.
1 Includes increases from redemption fees of $0.00, $0.00, $0.00, $0.01, and $0.01. Effective April 28, 2011, the redemption fee was eliminated.
2 Total returns do not include transaction or account service fees that may have applied in the periods shown. Fund prospectuses provide information about any applicable transaction and account service fees.
3 Excludes the value of portfolio securities received or delivered as a result of in-kind purchases or redemptions of the fund’s capital shares.
See accompanying Notes, which are an integral part of the Financial Statements.
101
Tax-Managed Small-Cap Fund | |||||
Financial Highlights | |||||
Institutional Shares | |||||
For a Share Outstanding | Year Ended December 31, | ||||
Throughout Each Period | 2012 | 2011 | 2010 | 2009 | 2008 |
Net Asset Value, Beginning of Period | $27.33 | $27.23 | $21.80 | $17.47 | $25.66 |
Investment Operations | |||||
Net Investment Income | .492 | .257 | .257 | .161 | .275 |
Net Realized and Unrealized Gain (Loss) | |||||
on Investments1 | 3.888 | .088 | 5.432 | 4.337 | (8.184) |
Total from Investment Operations | 4.380 | .345 | 5.689 | 4.498 | (7.909) |
Distributions | |||||
Dividends from Net Investment Income | (.490) | (.245) | (.259) | (.168) | (.281) |
Distributions from Realized Capital Gains | — | — | — | — | — |
Total Distributions | (.490) | (.245) | (.259) | (.168) | (.281) |
Net Asset Value, End of Period | $31.22 | $27.33 | $27.23 | $21.80 | $17.47 |
Total Return2 | 16.05% | 1.26% | 26.09% | 25.75% | -30.77% |
Ratios/Supplemental Data | |||||
Net Assets, End of Period (Millions) | $175 | $149 | $147 | $99 | $102 |
Ratio of Total Expenses to | |||||
Average Net Assets | 0.08% | 0.08% | 0.08% | 0.09% | 0.09% |
Ratio of Net Investment Income to | |||||
Average Net Assets | 1.63% | 0.92% | 1.08% | 0.89% | 1.21% |
Portfolio Turnover Rate3 | 42% | 40% | 46% | 37% | 32% |
1 Includes increases from redemption fees of $0.00, $0.00, $0.00, $0.02, and $0.01. Effective April 28, 2011, the redemption fee was eliminated.
2 Total returns do not include transaction fees that may have applied in the periods shown. Fund prospectuses provide information about any applicable transaction fees.
3 Excludes the value of portfolio securities received or delivered as a result of in-kind purchases or redemptions of the fund’s capital shares.
See accompanying Notes, which are an integral part of the Financial Statements.
102
Tax-Managed Small-Cap Fund
Notes to Financial Statements
Vanguard Tax-Managed Small-Cap Fund is registered under the Investment Company Act of 1940 as an open-end investment company, or mutual fund. The fund offers two classes of shares: Admiral Shares and Institutional Shares. Admiral Shares and Institutional Shares are designed for investors who meet certain administrative, service, and account-size criteria.
A. The following significant accounting policies conform to generally accepted accounting principles for U.S. mutual funds. The fund consistently follows such policies in preparing its financial statements.
1. Security Valuation: Securities are valued as of the close of trading on the New York Stock Exchange (generally 4 p.m., Eastern time) on the valuation date. Equity securities are valued at the latest quoted sales prices or official closing prices taken from the primary market in which each security trades; such securities not traded on the valuation date are valued at the mean of the latest quoted bid and asked prices. Securities for which market quotations are not readily available, or whose values have been materially affected by events occurring before the fund’s pricing time but after the close of the securities’ primary markets, are valued by methods deemed by the board of trustees to represent fair value. Investments in Vanguard Market Liquidity Fund are valued at that fund’s net asset value.
2. Federal Income Taxes: The fund intends to continue to qualify as a regulated investment company and distribute all of its taxable income. Management has analyzed the fund’s tax positions taken for all open federal income tax years (December 31, 2009–2012), and has concluded that no provision for federal income tax is required in the fund’s financial statements.
3. Distributions: Distributions to shareholders are recorded on the ex-dividend date.
4. Other: Dividend income is recorded on the ex-dividend date. Interest income includes income distributions received from Vanguard Market Liquidity Fund and is accrued daily. Security transactions are accounted for on the date securities are bought or sold. Costs used to determine realized gains (losses) on the sale of investment securities are those of the specific securities sold.
Each class of shares has equal rights as to assets and earnings, except that each class separately bears certain class-specific expenses related to maintenance of shareholder accounts (included in Management and Administrative expenses) and shareholder reporting. Marketing and distribution expenses are allocated to each class of shares based on a method approved by the board of trustees. Income, other non-class-specific expenses, and gains and losses on investments are allocated to each class of shares based on its relative net assets.
B. The Vanguard Group furnishes at cost investment advisory, corporate management, administrative, marketing, and distribution services. The costs of such services are allocated to the fund under methods approved by the board of trustees. The fund has committed to provide up to 0.40% of its net assets in capital contributions to Vanguard. At December 31, 2012, the fund had contributed capital of $311,000 to Vanguard (included in Other Assets), representing 0.01% of the fund’s net assets and 0.12% of Vanguard’s capitalization. The fund’s trustees and officers are also directors and officers of Vanguard.
103
Tax-Managed Small-Cap Fund
C. 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—Quoted prices in active markets for identical securities.
Level 2—Other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.).
Level 3—Significant unobservable inputs (including the fund’s own assumptions used to determine the fair value of investments).
At December 31, 2012, 100% of the market value of the fund’s investments was determined based on Level 1 inputs.
D. Distributions are determined on a tax basis and may differ from net investment income and realized capital gains for financial reporting purposes. Differences may be permanent or temporary. Permanent differences are reclassified among capital accounts in the financial statements to reflect their tax character. Temporary differences arise when certain items of income, expense, gain, or loss are recognized in different periods for financial statement and tax purposes; these differences will reverse at some time in the future. Differences in classification may also result from the treatment of short-term gains as ordinary income for tax purposes.
During the year ended December 31, 2012, the fund realized $24,038,000 of net capital gains resulting from in-kind redemptions—in which shareholders exchanged fund shares for securities held by the fund rather than for cash. Because such gains are not taxable to the fund, and are not distributed to shareholders, they have been reclassified from accumulated net realized losses to paid-in capital.
For tax purposes, at December 31, 2012, the fund had $619,000 of ordinary income available for distribution. The fund used capital loss carryforwards of $9,093,000 to offset taxable capital gains realized during the year ended December 31, 2012. At December 31, 2012, the fund had available capital losses totaling $32,891,000 to offset future net capital gains. Of this amount, $24,343,000 is subject to expiration on December 31, 2017. Capital losses of $8,548,000 realized beginning in fiscal 2011 may be carried forward indefinitely under the Regulated Investment Company Modernization Act of 2010, but must be used before any expiring loss carryforwards.
At December 31, 2012, the cost of investment securities for tax purposes was $1,629,550,000. Net unrealized appreciation of investment securities for tax purposes was $679,764,000, consisting of unrealized gains of $727,159,000 on securities that had risen in value since their purchase and $47,395,000 in unrealized losses on securities that had fallen in value since their purchase.
E. During the year ended December 31, 2012, the fund purchased $972,562,000 of investment securities and sold $953,639,000 of investment securities, other than temporary cash investments. Purchases and sales include $38,286,000 and $38,115,000, respectively, in connection with in-kind purchases and redemptions of the fund’s capital shares.
104
Tax-Managed Small-Cap Fund
F. Capital share transactions for each class of shares were:
Year Ended December 31, | ||||
2012 | 2011 | |||
Amount | Shares | Amount | Shares | |
($000) | (000) | ($000) | (000) | |
Admiral Shares1 | ||||
Issued | 164,904 | 5,532 | 106,650 | 3,914 |
Issued in Lieu of Cash Distributions | 24,791 | 806 | 13,005 | 472 |
Redeemed 2 | (181,153) | (6,018) | (148,430) | (5,445) |
Net Increase (Decrease)—Admiral Shares | 8,542 | 320 | (28,775) | (1,059) |
Institutional Shares | ||||
Issued | 47,431 | 1,534 | 73,943 | 2,772 |
Issued in Lieu of Cash Distributions | 1,547 | 50 | 748 | 27 |
Redeemed 2 | (44,092) | (1,421) | (75,553) | (2,768) |
Net Increase (Decrease) —Institutional Shares | 4,886 | 163 | (862) | 31 |
1 Investor Shares were renamed Admiral Shares as of the close of business on May 13, 2011.
2 Net of redemption fees for fiscal 2011 of $105,000 (fund totals). Effective April 28, 2011, the redemption fee was eliminated.
G. In preparing the financial statements as of December 31, 2012, management considered the impact of subsequent events for potential recognition or disclosure in these financial statements.
105
Report of Independent Registered
Public Accounting Firm
To the Trustees of Vanguard Tax-Managed Funds and the Shareholders of Vanguard Tax-Managed Balanced Fund, Vanguard Tax-Managed Growth and Income Fund, Vanguard Tax-Managed Capital Appreciation Fund and Vanguard Tax-Managed Small-Cap Fund:
In our opinion, the accompanying statements of net assets and the related statements of operations and of changes in net assets and the financial highlights present fairly, in all material respects, the financial position of Vanguard Tax-Managed Balanced Fund, Vanguard Tax-Managed Growth and Income Fund, Vanguard Tax-Managed Capital Appreciation Fund and Vanguard Tax-Managed Small-Cap Fund (constituting separate portfolios of Vanguard Tax-Managed Funds, hereafter referred to as the “Funds”) at December 31, 2012, the results of each of their operations for the year then ended, the changes in each of their net assets for each of the two years in the period then ended and the financial highlights for each of the five years in the period then ended, in conformity with accounting principles generally accepted in the United States of America. These financial statements and financial highlights (hereafter referred to as “financial statements”) are the responsibility of the Funds’ management; our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these financial statements in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits, which included confirmation of securities at December 31, 2012 by correspondence with the custodian and by agreement to the underlying ownership records of the transfer agent, provide a reasonable basis for our opinion.
PricewaterhouseCoopers LLP
Philadelphia, Pennsylvania
February 14, 2013
106
Special 2012 tax information (unaudited) for Vanguard Tax-Managed Funds |
This information for the fiscal year ended December 31, 2012, is included pursuant to provisions of the Internal Revenue Code.
The Tax-Managed Balanced Fund designates 61.80% of its income dividends as exempt-interest dividends.
The funds distributed qualified dividend income to shareholders during the fiscal year as follows:
Fund | ($000) |
Tax-Managed Balanced Fund | 8,566 |
Tax-Managed Growth and Income Fund | 54,214 |
Tax-Managed Capital Appreciation Fund | 77,044 |
Tax-Managed Small-Cap Fund | 34,146 |
For corporate shareholders, the percentage of investment income (dividend income plus short-term gains, if any) that qualifies for the dividends-received deduction is as follows:
Fund | Percentage |
Tax-Managed Balanced Fund | 98.6%1 |
Tax-Managed Growth and Income Fund | 100.0 |
Tax-Managed Capital Appreciation Fund | 100.0 |
Tax-Managed Small-Cap Fund | 99.7 |
1 The percentage applies only to the taxable ordinary income that has been reported on Form 1099-DIV. |
107
Your Fund’s After-Tax Returns
This table presents returns for your fund both before and after taxes. The after-tax returns are shown in two ways: (1) assuming that an investor owned the fund during the entire period and paid taxes on the fund’s distributions, and (2) assuming that an investor paid taxes on the fund’s distributions and sold all shares at the end of each period.
Calculations are based on the highest individual federal income tax and capital gains tax rates in effect at the times of the distributions and the hypothetical sales. State and local taxes were not considered. After-tax returns reflect any qualified dividend income.(In the example, returns after the sale of fund shares may be higher than those assuming no sale. This occurs when the sale would have produced a capital loss. The calculation assumes that the investor received a tax deduction for the loss.)
The table shows returns for Admiral Shares only; returns for other share classes will differ. Please note that your actual after-tax returns will depend on your tax situation and may differ from those shown. Also note that if you own the fund in a tax-deferred account, such as an individual retirement account or a 401(k) plan, this information does not apply to you. Such accounts are not subject to current taxes.
Finally, keep in mind that a fund’s performance—whether before or after taxes—does not guarantee future results.
Average Annual Total Returns: Tax-Managed Funds
Periods Ended December 31, 2012
One | Five | Ten | |
Year | Years | Years | |
Tax-Managed Balanced Fund | |||
Returns Before Taxes | 10.87% | 4.46% | 6.49% |
Returns After Taxes on Distributions | 10.48 | 4.29 | 6.35 |
Returns After Taxes on Distributions and Sale of Fund Shares | 7.57 | 4.02 | 5.91 |
One | Five | Ten | |
Year | Years | Years | |
Tax-Managed Growth and Income Fund Admiral Shares | |||
Returns Before Taxes | 15.91% | 1.62% | 7.07% |
Returns After Taxes on Distributions | 15.53 | 1.29 | 6.75 |
Returns After Taxes on Distributions and Sale of Fund Shares | 10.82 | 1.33 | 6.18 |
One | Five | Ten | |
Year | Years | Years | |
Tax-Managed Capital Appreciation Fund Admiral Shares | |||
Returns Before Taxes | 16.35% | 1.98% | 7.81% |
Returns After Taxes on Distributions | 16.02 | 1.70 | 7.56 |
Returns After Taxes on Distributions and Sale of Fund Shares | 11.07 | 1.64 | 6.88 |
108
Average Annual Total Returns: Tax-Managed Funds | |||
Periods Ended December 31, 2012 | |||
One | Five | Ten | |
Year | Years | Years | |
Tax-Managed Small-Cap Fund Admiral Shares | |||
Returns Before Taxes | 16.03% | 5.15% | 10.46% |
Returns After Taxes on Distributions | 15.77 | 4.97 | 10.30 |
Returns After Taxes on Distributions and Sale of Fund Shares | 10.76 | 4.40 | 9.33 |
109
About Your Fund’s Expenses
As a shareholder of the fund, you incur ongoing costs, which include costs for portfolio management, administrative services, and shareholder reports (like this one), among others. Operating expenses, which are deducted from a fund’s gross income, directly reduce the investment return of the fund.
A fund’s expenses are expressed as a percentage of its average net assets. This figure is known as the expense ratio. The following examples are intended to help you understand the ongoing costs (in dollars) of investing in your fund and to compare these costs with those of other mutual funds. The examples are based on an investment of $1,000 made at the beginning of the period shown and held for the entire period.
The accompanying table illustrates your fund’s costs in two ways:
• 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.
To do so, simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number given for your fund under the heading ”Expenses Paid During 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.
Note that the expenses shown in the table are meant to highlight and help you compare ongoing costs only and do not reflect transaction costs incurred by the fund for buying and selling securities. Further, the expenses do not include any purchase, redemption, or account service fees described in the fund prospectus. If such fees were applied to your account, your costs would be higher. Your fund does not carry a “sales load.”
The calculations assume no shares were bought or sold during the period. Your actual costs may have been higher or lower, depending on the amount of your investment and the timing of any purchases or redemptions.
You can find more information about the fund’s expenses, including annual expense ratios, in the Financial Statements section of this report. For additional information on operating expenses and other shareholder costs, please refer to your fund’s current prospectus.
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Six Months Ended December 31, 2012 | |||
Beginning | Ending | Expenses | |
Account Value | Account Value | Paid During | |
6/30/2012 | 12/31/2012 | Period | |
Based on Actual Fund Return | |||
Tax-Managed Balanced Fund | $1,000.00 | $1,044.85 | $0.62 |
Tax-Managed Growth and Income Fund | |||
Admiral Shares | $1,000.00 | $1,059.09 | $0.62 |
Institutional Shares | 1,000.00 | 1,059.23 | 0.42 |
Tax-Managed Capital Appreciation Fund | |||
Admiral Shares | $1,000.00 | $1,064.95 | $0.62 |
Institutional Shares | 1,000.00 | 1,065.22 | 0.42 |
Tax-Managed Small-Cap Fund | |||
Admiral Shares | $1,000.00 | $1,075.42 | $0.63 |
Institutional Shares | 1,000.00 | 1,075.38 | 0.42 |
Based on Hypothetical 5% Yearly Return | |||
Tax-Managed Balanced Fund | $1,000.00 | $1,024.60 | $0.61 |
Tax-Managed Growth and Income Fund | |||
Admiral Shares | $1,000.00 | $1,024.60 | $0.61 |
Institutional Shares | 1,000.00 | 1,024.80 | 0.41 |
Tax-Managed Capital Appreciation Fund | |||
Admiral Shares | $1,000.00 | $1,024.60 | $0.61 |
Institutional Shares | 1,000.00 | 1,024.80 | 0.41 |
Tax-Managed Small-Cap Fund | |||
Admiral Shares | $1,000.00 | $1,024.60 | $0.61 |
Institutional Shares | 1,000.00 | 1,024.80 | 0.41 |
The calculations are based on expenses incurred in the most recent six-month period. The funds’ annualized six-month expense ratios for that period are: for the Tax-Managed Balanced Fund, 0.12%; for the Tax-Managed Growth and Income Fund, 0.12% for Admiral Shares and 0.08% for Institutional Shares; for the Tax-Managed Capital Appreciation Fund, 0.12% for Admiral Shares and 0.08% for Institutional Shares; and for the Tax-Managed Small-Cap Fund, 0.12% for Admiral Shares and 0.08% for Institutional Shares. The dollar amounts shown as “Expenses Paid” are equal to the annualized expense ratio multiplied by the average account value over the period, multiplied by the number of days in the most recent six-month period, then divided by the number of days in the most recent 12-month period.
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Glossary
30-Day SEC Yield. A fund’s 30-day SEC yield is derived using a formula specified by the U.S. Securities and Exchange Commission. Under the formula, data related to the fund’s security holdings in the previous 30 days are used to calculate the fund’s hypothetical net income for that period, which is then annualized and divided by the fund’s estimated average net assets over the calculation period. For the purposes of this calculation, a security’s income is based on its current market yield to maturity (for bonds), its actual income (for asset-backed securities), or its projected dividend yield (for stocks). Because the SEC yield represents hypothetical annualized income, it will differ—at times significantly—from the fund’s actual experience. As a result, the fund’s income distributions may be higher or lower than implied by the SEC yield.
Average Coupon. The average interest rate paid on the fixed income securities held by a fund. It is expressed as a percentage of face value.
Average Duration. An estimate of how much the value of the bonds held by a fund will fluctuate in response to a change in interest rates. To see how the value could change, multiply the average duration by the change in rates. If interest rates rise by 1 percentage point, the value of the bonds in a fund with an average duration of five years would decline by about 5%. If rates decrease by a percentage point, the value would rise by 5%.
Average Effective Maturity. The average length of time until fixed income securities held by a fund reach maturity and are repaid, taking into consideration the possibility that the issuer may call the bond before its maturity date. The figure reflects the proportion of fund assets represented by each security; it also reflects any futures contracts held. In general, the longer the average effective maturity, the more a fund’s share price will fluctuate in response to changes in market interest rates.
Beta. A measure of the magnitude of a fund’s past share-price fluctuations in relation to the ups and downs of a given market index. The index is assigned a beta of 1.00. Compared with a given index, a fund with a beta of 1.20 typically would have seen its share price rise or fall by 12% when the index rose or fell by 10%. For this report, beta is based on returns over the past 36 months for both the fund and the index. Note that a fund’s beta should be reviewed in conjunction with its R-squared (see definition). The lower the R-squared, the less correlation there is between the fund and the index, and the less reliable beta is as an indicator of volatility.
Credit Quality. For Vanguard tax-exempt bond funds, credit-quality ratings are measured on a scale that generally ranges from AAA (highest) to D (lowest). “Not Rated” is used to classify securities for which a rating is not available. Credit-quality ratings are obtained from Moody’s and S&P, and the higher rating for each issue is used.
Dividend Yield. The current, annualized rate of dividends paid on a share of stock, divided by its current share price. For a fund, the weighted average yield for stocks it holds. The index yield is based on the current annualized rate of dividends paid on stocks in the index.
Earnings Growth Rate. The average annual rate of growth in earnings over the past five years for the stocks now in a fund.
Equity Exposure. A measure that reflects a fund’s investments in stocks and stock futures. Any holdings in short-term reserves are excluded.
112
Expense Ratio. A fund’s total annual operating expenses expressed as a percentage of the fund’s average net assets. The expense ratio includes management and administrative expenses, but does not include the transaction costs of buying and selling portfolio securities.
Foreign Holdings. The percentage of a fund represented by securities or depositary receipts of companies based outside the United States.
Inception Date. The date on which the assets of a fund (or one of its share classes) are first invested in accordance with the fund’s investment objective. For funds with a subscription period, the inception date is the day after that period ends. Investment performance is measured from the inception date.
Largest Area Concentrations. An indicator of diversification. The less concentrated a fund’s holdings of bonds, the less the fund will be hurt by any financial problems in a single state or region.
Median Market Cap. An indicator of the size of companies in which a fund invests; the midpoint of market capitalization (market price x shares outstanding) of a fund’s stocks, weighted by the proportion of the fund’s assets invested in each stock. Stocks representing half of the fund’s assets have market capitalizations above the median, and the rest are below it.
Price/Book Ratio. The share price of a stock divided by its net worth, or book value, per share. For a fund, the weighted average price/book ratio of the stocks it holds.
Price/Earnings Ratio. The ratio of a stock’s current price to its per-share earnings over the past year. For a fund, the weighted average P/E of the stocks it holds. P/E is an indicator of market expectations about corporate prospects; the higher the P/E, the greater the expectations for a company’s future growth.
R-Squared. A measure of how much of a fund’s past returns can be explained by the returns from the market in general, as measured by a given index. If a fund’s total returns were precisely synchronized with an index’s returns, its R-squared would be 1.00. If the fund’s returns bore no relationship to the index’s returns, its R-squared would be 0. For this report, R-squared is based on returns over the past 36 months for both the fund and the index.
Return on Equity. The annual average rate of return generated by a company during the past five years for each dollar of shareholder’s equity (net income divided by shareholder’s equity). For a fund, the weighted average return on equity for the companies whose stocks it holds.
Short-Term Reserves. The percentage of a fund invested in highly liquid, short-term securities that can be readily converted to cash.
Turnover Rate. An indication of the fund’s trading activity. Funds with high turnover rates incur higher transaction costs and may be more likely to distribute capital gains (which may be taxable to investors). The turnover rate excludes in-kind transactions, which have minimal impact on costs.
Yield to Maturity. The rate of return an investor would receive if the fixed income securities held by a fund were held to their maturity dates.
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Benchmark Information
Tax-Managed Balanced Composite Index: Weighted 50% Russell 1000 Index and 50% Barclay’s 7 Year Municipal Bond Index through January 31, 2002, and 50% Russell 1000 Index and 50% Barclays 1–15 Year Municipal Bond Index thereafter.
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The People Who Govern Your Fund
The trustees of your mutual fund are there to see that the fund is operated and managed in your best interests since, as a shareholder, you are a part owner of the fund. Your fund’s trustees also serve on the board of directors of The Vanguard Group, Inc., which is owned by the Vanguard funds and provides services to them on an at-cost basis.
A majority of Vanguard’s board members are independent, meaning that they have no affiliation with Vanguard or the funds they oversee, apart from the sizable personal investments they have made as private individuals. The independent board members have distinguished backgrounds in business, academia, and public service. Each of the trustees and executive officers oversees 180 Vanguard funds.
The following table provides information for each trustee and executive officer of the fund. More information about the trustees is in the Statement of Additional Information, which can be obtained, without charge, by contacting Vanguard at 800-662-7447, or online at vanguard.com.
InterestedTrustee1 | and Delphi Automotive LLP (automotive components); |
Senior Advisor at New Mountain Capital; Trustee of | |
F. William McNabb III | The Conference Board. |
Born 1957. Trustee Since July 2009. Chairman of the | |
Board. Principal Occupation(s) During the Past Five | Amy Gutmann |
Years: Chairman of the Board of The Vanguard Group, | Born 1949. Trustee Since June 2006. Principal |
Inc., and of each of the investment companies served | Occupation(s) During the Past Five Years: President |
by The Vanguard Group, since January 2010; Director | of the University of Pennsylvania; Christopher H. |
of The Vanguard Group since 2008; Chief Executive | Browne Distinguished Professor of Political Science |
Officer and President of The Vanguard Group and of | in the School of Arts and Sciences with secondary |
each of the investment companies served by The | appointments at the Annenberg School for |
Vanguard Group since 2008; Director of Vanguard | Communication and the Graduate School of Education |
Marketing Corporation; Managing Director of The | of the University of Pennsylvania; Member of the |
Vanguard Group (1995–2008). | National Commission on the Humanities and Social |
Sciences; Trustee of Carnegie Corporation of New | |
IndependentTrustees | York and of the National Constitution Center; Chair |
of the U. S. Presidential Commission for the Study | |
Emerson U. Fullwood | of Bioethical Issues. |
Born 1948. Trustee Since January 2008. Principal | |
Occupation(s) During the Past Five Years: Executive | JoAnn Heffernan Heisen |
Chief Staff and Marketing Officer for North America | Born 1950. Trustee Since July 1998. Principal |
and Corporate Vice President (retired 2008) of Xerox | Occupation(s) During the Past Five Years: Corporate |
Corporation (document management products and | Vice President and Chief Global Diversity Officer |
services); Executive in Residence and 2010 | (retired 2008) and Member of the Executive |
Distinguished Minett Professor at the Rochester | Committee (1997–2008) of Johnson & Johnson |
Institute of Technology; Director of SPX Corporation | (pharmaceuticals/medical devices/consumer |
(multi-industry manufacturing), the United Way of | products); Director of Skytop Lodge Corporation |
Rochester, Amerigroup Corporation (managed health | (hotels), the University Medical Center at Princeton, |
care), the University of Rochester Medical Center, | the Robert Wood Johnson Foundation, and the Center |
Monroe Community College Foundation, and North | for Talent Innovation; Member of the Advisory Board |
Carolina A&T University. | of the Maxwell School of Citizenship and Public Affairs |
at Syracuse University. | |
Rajiv L. Gupta | |
Born 1945. Trustee Since December 2001.2 | F. Joseph Loughrey |
Principal Occupation(s) During the Past Five Years: | Born 1949. Trustee Since October 2009. Principal |
Chairman and Chief Executive Officer (retired 2009) | Occupation(s) During the Past Five Years: President |
and President (2006–2008) of Rohm and Haas Co. | and Chief Operating Officer (retired 2009) of Cummins |
(chemicals); Director of Tyco International, Ltd. | Inc. (industrial machinery); Director of SKF AB |
(diversified manufacturing and services), Hewlett- | (industrial machinery), Hillenbrand, Inc. (specialized |
Packard Co. (electronic computer manufacturing), | consumer services), the Lumina Foundation for |
Education, and Oxfam America; Chairman of the | Executive Officers | |
Advisory Council for the College of Arts and Letters | ||
and Member of the Advisory Board to the Kellogg | Glenn Booraem | |
Institute for International Studies at the University | Born 1967. Controller Since July 2010. Principal | |
of Notre Dame. | Occupation(s) During the Past Five Years: Principal | |
of The Vanguard Group, Inc.; Controller of each of | ||
Mark Loughridge | the investment companies served by The Vanguard | |
Born 1953. Trustee Since March 2012. Principal | Group; Assistant Controller of each of the investment | |
Occupation(s) During the Past Five Years: Senior Vice | companies served by The Vanguard Group (2001–2010). | |
President and Chief Financial Officer at IBM (information | ||
technology services); Fiduciary Member of IBM’s | Thomas J. Higgins | |
Retirement Plan Committee. | Born 1957. Chief Financial Officer Since September | |
2008. Principal Occupation(s) During the Past Five | ||
Scott C. Malpass | Years: Principal of The Vanguard Group, Inc.; Chief | |
Born 1962. Trustee Since March 2012. Principal | Financial Officer of each of the investment companies | |
Occupation(s) During the Past Five Years: Chief | served by The Vanguard Group; Treasurer of each of | |
Investment Officer and Vice President at the University | the investment companies served by The Vanguard | |
of Notre Dame; Assistant Professor of Finance at the | Group (1998–2008). | |
Mendoza College of Business at Notre Dame; Member | ||
of the Notre Dame 403(b) Investment Committee; | Kathryn J. Hyatt | |
Director of TIFF Advisory Services, Inc. (investment | Born 1955. Treasurer Since November 2008. Principal | |
advisor); Member of the Investment Advisory | Occupation(s) During the Past Five Years: Principal of | |
Committees of the Financial Industry Regulatory | The Vanguard Group, Inc.; Treasurer of each of the | |
Authority (FINRA) and of Major League Baseball. | investment companies served by The Vanguard | |
Group; Assistant Treasurer of each of the investment | ||
André F. Perold | companies served by The Vanguard Group (1988–2008). | |
Born 1952. Trustee Since December 2004. Principal | ||
Occupation(s) During the Past Five Years: George | Heidi Stam | |
Gund Professor of Finance and Banking at the Harvard | Born 1956. Secretary Since July 2005. Principal | |
Business School (retired 2011); Chief Investment | Occupation(s) During the Past Five Years: Managing | |
Officer and Managing Partner of HighVista Strategies | Director of The Vanguard Group, Inc.; General Counsel | |
LLC (private investment firm); Director of Rand | of The Vanguard Group; Secretary of The Vanguard | |
Merchant Bank; Overseer of the Museum of Fine | Group and of each of the investment companies | |
Arts Boston. | served by The Vanguard Group; Director and Senior | |
Vice President of Vanguard Marketing Corporation. | ||
Alfred M. Rankin, Jr. | ||
Born 1941. Trustee Since January 1993. Principal | Vanguard Senior ManagementTeam | |
Occupation(s) During the Past Five Years: Chairman, | ||
President, and Chief Executive Officer of NACCO | Mortimer J. Buckley | Michael S. Miller |
Industries, Inc. (forklift trucks/housewares/lignite); | Kathleen C. Gubanich | James M. Norris |
Director of Goodrich Corporation (industrial products/ | Paul A. Heller | Glenn W. Reed |
aircraft systems and services) and the National | Martha G. King | George U. Sauter |
Association of Manufacturers; Chairman of the Board | Chris D. McIsaac | |
of the Federal Reserve Bank of Cleveland and of | ||
University Hospitals of Cleveland; Advisory Chairman | Chairman Emeritus and Senior Advisor | |
of the Board of The Cleveland Museum of Art. | ||
John J. Brennan | ||
Peter F. Volanakis | Chairman, 1996–2009 | |
Born 1955. Trustee Since July 2009. Principal | Chief Executive Officer and President, 1996–2008 | |
Occupation(s) During the Past Five Years: President | ||
and Chief Operating Officer (retired 2010) of Corning | Founder | |
Incorporated (communications equipment); Director | ||
of SPX Corporation (multi-industry manufacturing); | John C. Bogle | |
Overseer of the Amos Tuck School of Business | Chairman and Chief Executive Officer, 1974–1996 | |
Administration at Dartmouth College; Advisor to the | ||
Norris Cotton Cancer Center. | ||
1 Mr. McNabb is considered an “interested person,” as defined in the Investment Company Act of 1940, because he is an officer of the Vanguard funds.
2 December 2002 for Vanguard Equity Income Fund, Vanguard Growth Equity Fund, the Vanguard Municipal Bond Funds, and the Vanguard State Tax-Exempt Funds.
P.O. Box 2600 | |
Valley Forge, PA 19482-2600 |
Connect with Vanguard® > vanguard.com
Fund Information > 800-662-7447 | |
Direct Investor Account Services > 800-662-2739 | |
Institutional Investor Services > 800-523-1036 | |
Text Telephone for People | |
With Hearing Impairment > 800-749-7273 | |
This material may be used in conjunction | |
with the offering of shares of any Vanguard | |
fund only if preceded or accompanied by | |
the fund’s current prospectus. | |
All comparative mutual fund data are from Lipper Inc. or | |
Morningstar, Inc., unless otherwise noted. | |
You can obtain a free copy of Vanguard’s proxy voting | |
guidelines by visiting vanguard.com/proxyreporting or by | |
calling Vanguard at 800-662-2739. The guidelines are | |
also available from the SEC’s website, sec.gov. In | |
addition, you may obtain a free report on how your fund | |
voted the proxies for securities it owned during the 12 | |
months ended June 30. To get the report, visit either | |
vanguard.com/proxyreporting or sec.gov. | |
You can review and copy information about your fund at | |
the SEC’s Public Reference Room in Washington, D.C. To | |
find out more about this public service, call the SEC at | |
202-551-8090. Information about your fund is also | |
available on the SEC’s website, and you can receive | |
copies of this information, for a fee, by sending a | |
request in either of two ways: via e-mail addressed to | |
publicinfo@sec.gov or via regular mail addressed to the | |
Public Reference Section, Securities and Exchange | |
Commission, Washington, DC 20549-1520. | |
© 2013 The Vanguard Group, Inc. | |
All rights reserved. | |
Vanguard Marketing Corporation, Distributor. | |
Q870 022013 |
Annual Report | December 31, 2012 |
Vanguard Tax-Managed International Fund |
Including Vanguard MSCI EAFE ETF |
> Vanguard Tax-Managed International Fund—including Vanguard MSCI EAFE ETF—returned more than 18% for the year ended December 31, 2012, as global stock markets rebounded strongly from last year’s decline.
> The fund’s return deviated from that of its benchmark index because of temporary price differences that arose from fair-value pricing policies.
> European stocks were among fund’s top performers; financial stocks were standouts on a sector basis.
Contents | |
Your Fund’s Total Returns. | 1 |
Chairman’s Letter. | 2 |
Fund Profile. | 8 |
Performance Summary. | 10 |
Financial Statements. | 12 |
Your Fund’s After-Tax Returns. | 26 |
About Your Fund’s Expenses. | 27 |
Glossary. | 29 |
Tax-Managed International Fund
Please note: The opinions expressed in this report are just that—informed opinions. They should not be considered promises or advice.
Also, please keep in mind that the information and opinions cover the period through the date on the front of this report. Of course, the risks of investing in your fund are spelled out in the prospectus.
See the Glossary for definitions of investment terms used in this report.
About the cover: Our cover photograph shows rigging on the HMSSurprise, a replica of an 18th-century Royal Navy frigate. It was featured in the 2003 movie Master and Commander: The Far Side of the World, which was based on Patrick O’Brian’s sea novels, set amid the Napoleonic Wars. Vanguard was named for another ship of that era, the HMSVanguard, which was the flagship of British Admiral Horatio Nelson at the Battle of the Nile.
Your Fund’s Total Returns | |
Fiscal Year Ended December 31, 2012 | |
Total | |
Returns | |
Vanguard Tax-Managed International Fund | |
Admiral™ Shares | 18.56% |
Institutional Shares | 18.70 |
MSCI EAFE ETF Shares | |
Market Price | 18.52 |
Net Asset Value | 18.60 |
MSCI EAFE Index | 17.32 |
International Funds Average | 17.68 |
International Funds Average: Derived from data provided by Lipper Inc.
Institutional Shares are available to certain institutional investors who meet specific administrative, service, and account-size criteria. The Vanguard ETF® Shares shown are traded on the NYSE Arca exchange and are available only through brokers. The table provides ETF returns based on both the NYSE Arca market price and the net asset value for a share. U.S. Pat. No. 6,879,964 B2; 7,337,138; 7,720,749; 7,925,573; 8,090,646.
For the ETF Shares, the market price is determined by the midpoint of the bid-offer spread as of the closing time of the New York Stock Exchange (generally 4 p.m., Eastern time). The net asset value is also determined as of the NYSE closing time. For more information about how the ETF Shares' market prices have compared with their net asset value, visit vanguard.com, select your ETF, and then select the Price and Performance tab. The ETF premium/discount analysis there shows the percentages of days on which the ETF Shares' market price was above or below the NAV.
Your Fund’s Performance at a Glance | ||||
December 31, 2011, Through December 31, 2012 | ||||
Distributions Per Share | ||||
Starting | Ending | Income | Capital | |
Share Price | Share Price | Dividends | Gains | |
Vanguard Tax-Managed International Fund | ||||
Admiral Shares | $9.79 | $11.26 | $0.336 | $0.000 |
Institutional Shares | 9.79 | 11.27 | 0.339 | 0.000 |
MSCI EAFE ETF Shares | 30.44 | 35.02 | 1.046 | 0.000 |
1
Chairman’s Letter
Dear Shareholder,
Although economic news from around the world was often grim, international stocks jumped to a double-digit advance for 2012 versus a double-digit decline for 2011. Vanguard Tax-Managed International Fund returned about 18% for all share classes, including Vanguard MSCI EAFE ETF.
The fund’s return diverged from that of its benchmark, the MSCI EAFE Index, because of the effect of fair-value pricing policies required by the Securities and Exchange Commission. (See the box on page 7 for an explanation of fair-value pricing.) Peer international funds, on average, trailed the Tax-Managed International Fund by less than 1 percentage point. Unlike many of its competitors, your fund does not invest in emerging markets stocks, whose returns fell in between those of stocks in the European and Pacific developed markets.
During the year, the fund’s advisor, Vanguard Equity Investment Group, continued to avoid distributing taxable gains to shareholders. A table showing the fund’s annualized after-tax returns appears later in this report.
In early October, we announced that the Tax-Managed International Fund would adopt a new target benchmark as part of a broader transition affecting 22 of our index funds. This transition, which we plan to complete by the middle of the year, is expected to produce significant long-term
2
savings for Vanguard clients. The new benchmark for the fund will be supplied by FTSE.
With help from central banks, stocks posted strong results
European stocks shook off investors’ concerns to deliver some of the best results for the year, rising about 19% compared with about 16% for U.S. stocks. The rally came as European central bankers moved to address worries about the finances of governments and banks. Still, Vanguard economists expect Europe to remain a trouble spot, with occasional spikes in market volatility, as fiscal tightening persists in the face of weak economic growth.
In the United States, the Federal Reserve continued buying bonds and mortgage-backed securities to try to stimulate growth. The Fed’s actions seemed to buoy both stock and bond returns.
Attention to the nation’s considerable budget challenges intensified as 2012 drew to a close. The focus on the “fiscal cliff” led to nervousness in the markets before policymakers reached a limited tax-rate agreement on the cusp of the new year. The compromise legislation, which President Barack Obama signed into law on January 2, addressed some immediate concerns, but a credible long-term deficit-reduction strategy had yet to be crafted to resolve the nation’s fiscal imbalance and open the way for growth.
Market Barometer | |||
Average Annual Total Returns | |||
Periods Ended December 31, 2012 | |||
One | Three | Five | |
Year | Years | Years | |
Stocks | |||
Russell 1000 Index (Large-caps) | 16.42% | 11.12% | 1.92% |
Russell 2000 Index (Small-caps) | 16.35 | 12.25 | 3.56 |
Russell 3000 Index (Broad U.S. market) | 16.42 | 11.20 | 2.04 |
MSCI All Country World Index ex USA (International) | 16.83 | 3.87 | -2.89 |
Bonds | |||
Barclays U.S. Aggregate Bond Index (Broad taxable market) | 4.21% | 6.19% | 5.95% |
Barclays Municipal Bond Index (Broad tax-exempt market) | 6.78 | 6.57 | 5.91 |
Citigroup Three-Month U.S. Treasury Bill Index | 0.07 | 0.08 | 0.44 |
CPI | |||
Consumer Price Index | 1.74% | 2.06% | 1.80% |
3
Bond returns were solid, but challenges lie ahead
The broad U.S. taxable bond market returned about 4% for the 12 months. Municipal bonds performed especially well, returning more than 6%.
As bond prices rose, the yield of the 10-year U.S. Treasury note slipped to a record low in July, closing below 1.5%. (Bond yields and prices move in opposite directions.) By the end of the period, the yield had climbed, but it remained exceptionally low by historical standards.
Although bonds can provide critical diversification benefits to a portfolio, their prospects look much less promising than in recent years. As yields have tumbled, the opportunity for future bond price appreciation has greatly diminished. (You can read more about our expectations for bond and stock returns in Vanguard’s Economic and Investment Outlook, available at vanguard.com/research.)
As it has since late 2008, the Fed held its target for short-term interest rates between 0% and 0.25%, which kept a tight lid on returns from money market funds and savings accounts.
Economic growth not correlated to stock market performance
Some of the notable efforts to address Europe’s troubles in 2012 included the implementation of a second bailout plan for Greece, a recapitalization of Spanish banks, and the finalization of a framework for the European Central Bank to intervene in the
Expense Ratios | ||||
Your Fund Compared With Its Peer Group | ||||
MSCI | ||||
EAFE | ||||
Admiral | Institutional | ETF | Peer Group | |
Shares | Shares | Shares | Average | |
Tax-Managed International Fund | 0.12% | 0.08% | 0.12% | 1.37% |
The fund expense ratios shown are from the prospectus dated April 26, 2012, and represent estimated costs for the current fiscal year. For the fiscal year ended December 31, 2012, the fund’s expense ratios were 0.10% for Admiral Shares, 0.07% for Institutional Shares, and 0.10% for MSCI EAFE ETF Shares. The peer-group expense ratio is derived from data provided by Lipper Inc. and captures information through year-end 2011.
Peer group: International Funds.
4
sovereign-debt market. Still, as I mentioned, we anticipate Europe will continue to experience sluggish economic growth.
Surprising as it may seem, however, research from Vanguard experts reveals there’s been little connection historically between the rate of a country’s economic growth and its stock returns. For example, the returns for U.S. and British stocks were nearly identical from 1900 to 2009, even as U.S. economic growth eclipsed that of Great Britain. (See Investing in Emerging Markets: Evaluating the Allure of Rapid Economic Growth, available at vanguard. com/research.)
Illustrating the point that economic growth and stock performance aren’t closely correlated, stocks from the developed countries of Europe returned nearly 20% for the year. Financial companies from the United Kingdom, Germany, France, and Switzerland were among the biggest contributors to the fund’s performance.
Consumer staples, consumer discretionary, and industrial stocks from the United Kingdom, the fund’s largest country by asset allocation, also lifted returns. German, French, and Swiss multinational pharmaceutical companies were another source of strength along with German auto manufacturers and Swiss food companies.
Total Returns | |
Ten Years Ended December 31, 2012 | |
Average | |
Annual Return | |
Tax-Managed International Fund Admiral Shares | 8.45% |
MSCI EAFE Index | 8.21 |
International Funds Average | 7.83 |
International Funds Average: Derived from data provided by Lipper Inc. |
The figures shown represent past performance, which is not a guarantee of future results. (Current performance may be lower or higher than the performance data cited. For performance data current to the most recent month-end, visit our website at vanguard.com/performance.) Note, too, that both investment returns and principal value can fluctuate widely, so an investor’s shares, when sold, could be worth more or less than their original cost.
5
Holdings in the Pacific region, which accounted for about one-third of the fund’s assets, on average, during the period, returned 14%. Stocks from Japan, the fund’s second-largest country by allocation, advanced about 8%, and those from Australia climbed more than 21% to lead the region. Japan’s performance turned positive over the period’s final months in anticipation of monetary easing policies. Japanese multinationals––including auto manufacturers, financial, and heavy machinery corporations––were responsible for much of the result. Australia’s returns were fueled by its strong banking industry.
Currency prices also had an effect on the fund’s performance. The U.S. dollar rose about 13% against the Japanese yen, reducing returns for U.S. investors, on expectations Japan’s central bank would ease monetary policy and produce more yen at the new government’s request. Meanwhile, the dollar dipped 1.8% against the euro, boosting returns for U.S. investors.
Despite a decade of challenges, stocks posted long-term gains
Developed-market stocks confronted an assortment of major political, economic, and environmental obstacles over the past decade. Volatility was a mainstay, but stocks still managed satisfactory results for the period as a whole. For the ten years ended December 31, 2012, Vanguard Tax-Managed International Fund posted an average annual return of 8.45% for Admiral Shares while closely following the performance of the benchmark MSCI EAFE Index and maintaining its tax-management objective.
Vanguard Equity Investment Group, the portfolio’s advisor, is responsible for this commendable performance. The group’s sophisticated portfolio construction and management techniques and decades of index-tracking experience were complemented by the portfolio’s low expenses, which allow you to keep more of the return on your investment.
Gus Sauter united traditional values with pioneering investment acumen
When I was interviewing for a job at Vanguard in the mid-1980s, Jack Brennan, who would go on to become our chairman and CEO and is now chairman emeritus, described Vanguard as “a company with the intellectual rigor of Wall Street but with Midwestern values.”
I’m reminded of that when I think about Gus Sauter’s 25-year career at Vanguard. Gus retired as our chief investment officer at the end of December, having set the highest of standards for both intellectual achievement and devotion to doing the right thing for clients, colleagues, and community.
Gus played a pivotal role in transforming indexing from a novelty to an investing mainstay, a change that has benefited all investors. In addition, he developed our active quantitative equity strategies, oversaw the growth of our industry-leading expertise in fixed income, and ultimately helped Vanguard to become a global investment manager responsible for $2 trillion in client assets.
6
As for the Midwestern values, Gus—a native of Ohio, incidentally—served our clients with a dedication to thrift, candor, and common sense that has helped make Vanguard what it is. His colleagues knew that in any situation they could count on Gus to keep a level-headed, long-term outlook. Just two weeks after he started at Vanguard, Gus helped guide us through the stock market crash of 1987. Some 20 years later, he helped us navigate the financial crisis of 2008–2009.
An important aspect of Gus’s legacy is the team of world-class investment professionals that he cultivated at Vanguard. That team is now led by Tim Buckley, who oversaw our services for individual investors before becoming chief investment officer. I am confident that Tim will not only carry on Gus’s legacy, but also—as Gus himself put it—take Vanguard investment management to the next level.
As always, thank you for investing with Vanguard.
Sincerely,
F. William McNabb III
Chairman and Chief Executive Officer
January 18, 2013
A note on fair-value pricing |
The reported return of a fund that tracks an index sometimes may diverge from the |
index’s return a bit more than would be expected. This may be the result of a |
fair-value pricing adjustment. |
These adjustments, which are required by the Securities and Exchange Commission, |
address pricing discrepancies that may arise because of time-zone differences among |
global stock markets. Foreign stocks may trade on exchanges that close many hours |
before a fund’s closing share price is calculated in the United States, generally at |
4 p.m., Eastern time. In the hours between the foreign close and the U.S. close, |
the value of these foreign securities may change—because of company-specific |
announcements or market-wide developments, for example. Such price changes are |
not immediately reflected in international index values. |
Fair-value pricing takes such changes into account in calculating the fund’s daily net |
asset value, thus ensuring that the NAV doesn’t include “stale” prices. The result can |
be a temporary divergence between the return of the fund and that of its benchmark |
index—a difference that usually corrects itself when the foreign markets reopen. |
7
Tax-Managed International Fund
Fund Profile
As of December 31, 2012
Share-Class Characteristics | |||
MSCI | |||
EAFE | |||
Admiral | Institutional | ETF | |
Shares | Shares | Shares | |
Ticker Symbol | VTMGX | VTMNX | VEA |
Expense Ratio1 | 0.12% | 0.08% | 0.12% |
Portfolio Characteristics | |||
MSCI AC | |||
MSCI | World | ||
EAFE | Index | ||
Fund | Index ex USA | ||
Number of Stocks | 876 | 909 | 1,818 |
Median Market Cap | $35.7B | $35.6B | $29.5B |
Price/Earnings Ratio | 16.1x | 16.0x | 15.1x |
Price/Book Ratio | 1.4x | 1.4x | 1.5x |
Return on Equity | 16.1% | 16.1% | 16.7% |
Earnings Growth Rate | 1.1% | 1.1% | 5.1% |
Dividend Yield | 3.4% | 3.4% | 3.2% |
Turnover Rate | 7% | — | — |
Short-Term Reserves | 0.0% | — | — |
Sector Diversification (% of equity exposure) | |||
MSCI AC | |||
MSCI | World | ||
EAFE | Index | ||
Fund | Index | ex USA | |
Consumer Discretionary | 10.7% | 10.7% | 9.5% |
Consumer Staples | 11.6 | 11.6 | 10.3 |
Energy | 7.7 | 7.7 | 10.3 |
Financials | 24.3 | 24.7 | 25.9 |
Health Care | 9.8 | 9.8 | 7.1 |
Industrials | 12.8 | 12.6 | 10.6 |
Information Technology | 4.3 | 4.3 | 6.3 |
Materials | 10.0 | 9.8 | 11.0 |
Telecommunication | |||
Services | 4.9 | 4.9 | 5.5 |
Utilities | 3.9 | 3.9 | 3.5 |
Volatility Measures | ||
MSCI | MSCI AC | |
EAFE | World Index | |
Index | ex USA | |
R-Squared | 0.99 | 0.97 |
Beta | 1.02 | 1.01 |
These measures show the degree and timing of the fund’s fluctuations compared with the indexes over 36 months.
Ten Largest Holdings (% of total net assets) | ||
Royal Dutch Shell plc | Integrated Oil & Gas | 2.0% |
Nestle SA | Packaged Foods & | |
Meats | 1.9 | |
BHP Billiton | Diversified Metals & | |
Mining | 1.8 | |
HSBC Holdings plc | Diversified Banks | 1.8 |
Novartis AG | Pharmaceuticals | 1.3 |
Roche Holding AG | Pharmaceuticals | 1.3 |
BP plc | Integrated Oil & Gas | 1.2 |
Toyota Motor Corp. | Automobile | |
Manufacturers | 1.2 | |
Vodafone Group plc | Wireless | |
Telecommunication | ||
Services | 1.1 | |
Sanofi | Pharmaceuticals | 1.0 |
Top Ten | 14.6% |
The holdings listed exclude any temporary cash investments and equity index products.
Allocation by Region (% of equity exposure)
1 The expense ratios shown are from the prospectus dated April 26, 2012, and represent estimated costs for the current fiscal year. For the fiscal year ended December 31, 2012, the expense ratios were 0.10% for Admiral Shares, 0.07% for Institutional Shares, and 0.10% for MSCI EAFE ETF Shares.
8
Tax-Managed International Fund
Market Diversification (% of equity exposure)
MSCI AC | |||
MSCI | World | ||
EAFE | Index | ||
Fund | Index | ex USA | |
Europe | |||
United Kingdom | 22.6% | 22.6% | 15.4% |
France | 9.7 | 9.6 | 6.5 |
Germany | 8.7 | 8.8 | 6.0 |
Switzerland | 8.7 | 8.7 | 5.9 |
Sweden | 3.1 | 3.1 | 2.2 |
Spain | 3.0 | 3.0 | 2.1 |
Netherlands | 2.5 | 2.5 | 1.7 |
Italy | 2.3 | 2.3 | 1.5 |
Denmark | 1.2 | 1.1 | 0.8 |
Belgium | 1.1 | 1.2 | 0.8 |
Other | 2.6 | 2.6 | 1.6 |
Subtotal | 65.5% | 65.5% | 44.5% |
Pacific | |||
Japan | 20.0% | 20.0% | 13.6% |
Australia | 8.9 | 8.9 | 6.1 |
Hong Kong | 3.2 | 3.1 | 2.1 |
Singapore | 1.8 | 1.9 | 1.3 |
Other | 0.1 | 0.1 | 0.1 |
Subtotal | 34.0% | 34.0% | 23.2% |
Emerging Markets | 0.0% | 0.0% | 24.1% |
North America | 0.0% | 0.0% | 7.8% |
Middle East | 0.5% | 0.5% | 0.4% |
9
Tax-Managed International Fund
Performance Summary
All of the returns in this report represent past performance, which is not a guarantee of future results that may be achieved by the fund. (Current performance may be lower or higher than the performance data cited. For performance data current to the most recent month-end, visit our website at vanguard.com/performance.) Note, too, that both investment returns and principal value can fluctuate widely, so an investor’s shares, when sold, could be worth more or less than their original cost. The returns shown do not reflect taxes that a shareholder would pay on fund distributions or on the sale of fund shares.
Cumulative Performance: July 20, 2007, Through December 31, 2012
Initial Investment of $10,000
Average Annual Total Returns | ||||
Periods Ended December 31, 2012 | ||||
Since | Final Value | |||
One | Five | Inception | of a $10,000 | |
Year | Years | (7/20/2007) | Investment | |
MSCI EAFE ETF Shares Net Asset | ||||
Value | 18.60% | -3.24% | -3.34% | $8,310 |
MSCI EAFE ETF Shares Market Price | 18.52 | -3.14 | -3.28 | 8,340 |
MSCI EAFE Index | 17.32 | -3.69 | -3.77 | 8,111 |
International Funds Average | 17.68 | -3.57 | -3.53 | 8,219 |
MSCI All Country World Index ex | ||||
USA | 17.39 | -2.44 | -2.28 | 8,821 |
International Funds Average: Derived from data provided by Lipper Inc.
"Since Inception" performance is calculated from the ETF Shares’ inception date for both the fund and its comparative standards.
Final Value | ||||
One | Five | Ten | of a $10,000 | |
Year | Years | Years | Investment | |
Tax-Managed International Fund Admiral | ||||
Shares | 18.56% | -3.27% | 8.45% | $22,510 |
MSCI EAFE Index | 17.32 | -3.69 | 8.21 | 22,021 |
MSCI All Country World Index ex USA | 17.39 | -2.44 | 10.22 | 26,455 |
See Financial Highlights for dividend and capital gains information.
10
Tax-Managed International Fund | ||||
Average Annual Total Returns | ||||
Periods Ended December 31, 2012 | ||||
Final Value | ||||
One | Five | Ten | of a $5,000,000 | |
Year | Years | Years | Investment | |
Tax-Managed International Fund Institutional | ||||
Shares | 18.70% | -3.21% | 8.53% | $11,334,084 |
MSCI EAFE Index | 17.32 | -3.69 | 8.21 | 11,010,490 |
MSCI All Country World Index ex USA | 17.39 | -2.44 | 10.22 | 13,227,593 |
Cumulative Returns of ETF Shares: July 20, 2007, Through December 31, 2012 | |||
Since | |||
One | Five | Inception | |
Year | Years | (7/20/2007) | |
MSCI EAFE ETF Shares Market Price | 18.52% | -14.73% | -16.60% |
MSCI EAFE ETF Shares Net Asset Value | 18.60 | -15.19 | -16.90 |
MSCI EAFE Index | 17.32 | -17.13 | -18.89 |
"Since Inception" performance is calculated from the ETF Shares’ inception date for both the fund and its comparative standards.
Fiscal-Year Total Returns (%): December 31, 2002, Through December 31, 2012
Tax-Managed International Fund Admiral Shares |
MSCI EAFE Index |
11
Tax-Managed International Fund
Financial Statements
Statement of Net Assets—Investments Summary
As of December 31, 2012
This Statement summarizes the fund’s holdings by asset type. Details are reported for each of the fund’s 50 largest individual holdings and for investments that, in total for any issuer, represent more than 1% of the fund’s net assets. The total value of smaller holdings is reported as a single amount within each category.
The fund reports a complete list of its holdings in regulatory filings four times in each fiscal year, at the quarter-ends. For the second and fourth fiscal quarters, the complete listing of the fund’s holdings is available electronically on vanguard.com and on the Securities and Exchange Commission’s website (sec.gov), or you can have it mailed to you without charge by calling 800-662-7447. For the first and third fiscal quarters, the fund files the lists with the SEC on Form N-Q. Shareholders can look up the fund’s Forms N-Q on the SEC’s website. Forms N-Q may also be reviewed and copied at the SEC’s Public Reference Room (see the back cover of this report for further information).
Market | Percentage | ||
Value | of Net | ||
Shares | ($000) | Assets | |
Common Stocks | |||
Australia | |||
BHP Billiton Ltd. | 3,793,403 | 148,145 | 1.2% |
Commonwealth Bank of Australia | 1,882,862 | 122,306 | 0.9% |
Westpac Banking Corp. | 3,657,348 | 99,986 | 0.8% |
Australia & New Zealand Banking Group Ltd | . 3,258,609 | 85,314 | 0.7% |
National Australia Bank Ltd. | 2,729,527 | 71,385 | 0.5% |
Australia—Other † | 608,591 | 4.8% | |
1,135,727 | 8.9% | ||
Austria † | 37,045 | 0.3% | |
Belgium | |||
Anheuser-BuschInBev NV | 943,309 | 82,435 | 0.6% |
Belgium—Other † | 61,968 | 0.5% | |
144,403 | 1.1% | ||
Denmark | |||
Novo Nordisk A/S Class B | 474,931 | 77,566 | 0.6% |
Denmark—Other † | 69,697 | 0.6% | |
147,263 | 1.2% | ||
Finland † | 104,512 | 0.8% | |
France | |||
Sanofi | 1,384,618 | 131,311 | 1.1% |
Total SA | 2,453,163 | 126,970 | 1.0% |
BNP Paribas SA | 1,155,773 | 65,148 | 0.5% |
LVMH Moet Hennessy Louis Vuitton SA | 291,815 | 54,379 | 0.4% |
France—Other † | 855,536 | 6.7% | |
1,233,344 | 9.7% |
12
Tax-Managed International Fund | |||
Market | Percentage | ||
Value | of Net | ||
Shares | ($000) | Assets | |
Germany | |||
Siemens AG | 949,467 | 103,198 | 0.8% |
BASF SE | 1,059,183 | 99,554 | 0.8% |
BayerAG | 965,285 | 91,666 | 0.7% |
SAP AG | 1,061,040 | 84,997 | 0.7% |
Allianz SE | 527,855 | 73,128 | 0.6% |
DaimlerAG | 1,044,207 | 57,061 | 0.4% |
Germany—Other † | 601,010 | 4.7% | |
1,110,614 | 8.7% | ||
Greece † | 7,145 | 0.1% | |
Hong Kong | |||
AIA Group Ltd. | 12,654,776 | 50,435 | 0.4% |
HangSeng Bank Ltd. | 862,643 | 13,326 | 0.1% |
Hong Kong—Other † | 342,004 | 2.7% | |
405,765 | 3.2% | ||
Ireland † | 33,480 | 0.3% | |
Israel † | 68,358 | 0.5% | |
Italy | |||
Eni SPA | 2,955,387 | 72,908 | 0.6% |
Italy—Other † | 214,157 | 1.7% | |
287,065 | 2.3% | ||
Japan | |||
Toyota Motor Corp. | 3,213,418 | 149,991 | 1.2% |
Mitsubishi UFJ Financial Group Inc. | 14,795,144 | 79,615 | 0.6% |
Honda Motor Co. Ltd. | 1,889,839 | 69,656 | 0.5% |
Sumitomo Mitsui Financial Group Inc. | 1,574,258 | 57,191 | 0.5% |
Canon Inc. | 1,313,233 | 51,508 | 0.4% |
Chugai Pharmaceutical Co. Ltd. | 322,800 | 6,186 | 0.1% |
DaihatsuMotor Co. Ltd. | 199,000 | 3,936 | 0.0% |
Hino Motors Ltd. | 259,000 | 2,323 | 0.0% |
Japan—Other † | 2,122,478 | 16.7% | |
2,542,884 | 20.0% | ||
Netherlands | |||
Unilever NV | 1,901,890 | 71,766 | 0.5% |
Netherlands—Other † | 250,087 | 2.0% | |
321,853 | 2.5% | ||
New Zealand † | 16,186 | 0.1% | |
Norway † | 117,876 | 0.9% | |
Portugal † | 21,647 | 0.2% | |
Singapore † | 232,575 | 1.8% | |
Spain | |||
* Banco Santander SA | 11,920,703 | 96,118 | 0.8% |
Telefonica SA | 4,668,193 | 63,388 | 0.5% |
Banco Bilbao Vizcaya Argentaria SA | 6,224,930 | 57,147 | 0.4% |
Spain—Other † | 163,796 | 1.3% | |
380,449 | 3.0% |
13
Tax-Managed International Fund | |||
Market | Percentage | ||
Value | of Net | ||
Shares | ($000) | Assets | |
Sweden † | 398,860 | 3.1% | |
Switzerland | |||
Nestle SA | 3,732,276 | 243,248 | 1.9% |
Novartis AG | 2,669,523 | 169,012 | 1.4% |
Roche Holding AG | 817,830 | 166,612 | 1.3% |
UBS AG | 4,252,467 | 66,875 | 0.5% |
ABB Ltd. | 2,510,247 | 52,122 | 0.4% |
Switzerland—Other † | 405,823 | 3.2% | |
1,103,692 | 8.7% | ||
United Kingdom | |||
HSBC Holdings plc | 21,120,203 | 223,386 | 1.7% |
BP plc | 22,025,691 | 152,612 | 1.2% |
Royal Dutch Shell plc Class A | 4,210,234 | 148,767 | 1.2% |
Vodafone Group plc | 56,960,947 | 143,250 | 1.1% |
GlaxoSmithKlineplc | 5,771,946 | 125,319 | 1.0% |
British American Tobacco plc | 2,237,667 | 113,383 | 0.9% |
Royal Dutch Shell plc Class B | 3,100,966 | 109,751 | 0.9% |
Rio Tinto plc | 1,544,621 | 90,009 | 0.7% |
BHP Billiton plc | 2,430,065 | 85,392 | 0.7% |
Diageo plc | 2,930,892 | 85,326 | 0.7% |
Standard Chartered plc | 2,765,752 | 70,108 | 0.5% |
AstraZeneca plc | 1,448,593 | 68,483 | 0.5% |
BG Group plc | 3,942,138 | 66,103 | 0.5% |
Barclays plc | 13,510,287 | 58,343 | 0.5% |
Unilever plc | 1,494,705 | 56,736 | 0.4% |
SABMiller plc | 1,109,761 | 52,235 | 0.4% |
AngloAmerican plc London Shares | 1,594,309 | 50,893 | 0.4% |
Royal Dutch Shell plc Class A (Amsterdam Shares) | 8,969 | 308 | 0.0% |
UnitedKingdom—Other † | 1,179,469 | 9.3% | |
2,879,873 | 22.6% | ||
Total Investments (Cost $12,213,137) | 12,730,616 | 100.0% | |
Other Assets and Liabilities | |||
Other Assets | 83,968 | 0.6% | |
Liabilities | (78,598) | (0.6%) | |
5,370 | 0.0% | ||
Net Assets | 12,735,986 | 100.0% |
14
Tax-Managed International Fund | |
At December 31, 2012, net assets consisted of: | |
Amount | |
($000) | |
Paid-in Capital | 12,772,900 |
Overdistributed Net Investment Income | (11,932) |
Accumulated Net Realized Losses | (542,664) |
Unrealized Appreciation (Depreciation) | |
Investment Securities | 517,479 |
Foreign Currencies | 203 |
Net Assets | 12,735,986 |
Admiral Shares—Net Assets | |
Applicable to 126,513,723 outstanding $.001 par value shares of | |
beneficial interest (unlimited authorization) | 1,424,715 |
Net Asset Value Per Share—Admiral Shares | $11.26 |
Institutional Shares—Net Assets | |
Applicable to 29,482,133 outstanding $.001 par value shares of | |
beneficial interest (unlimited authorization) | 332,337 |
Net Asset Value Per Share—Institutional Shares | $11.27 |
ETF Shares—Net Assets | |
Applicable to 313,489,893 outstanding $.001 par value shares of | |
beneficial interest (unlimited authorization) | 10,978,934 |
Net Asset Value Per Share—ETF Shares | $35.02 |
See Note A in Notes to Financial Statements.
* Non-income-producing security.
†Represents the aggregate value, by category, of securities that are not among the 50 largest holdings and, in total for any issuer, represent 1% or less of net assets.
See accompanying Notes, which are an integral part of the Financial Statements.
15
Tax-Managed International Fund | |
Statement of Operations | |
Year Ended | |
December 31, 2012 | |
($000) | |
Investment Income | |
Income | |
Dividends1 | 359,617 |
Interest2 | 35 |
Total Income | 359,652 |
Expenses | |
The Vanguard Group—Note B | |
Investment Advisory Services | 648 |
Management and Administrative—Admiral Shares | 693 |
Management and Administrative—Institutional Shares | 88 |
Management and Administrative—ETF Shares | 4,665 |
Marketing and Distribution—Admiral Shares | 370 |
Marketing and Distribution—Institutional Shares | 85 |
Marketing and Distribution—ETF Shares | 2,227 |
Custodian Fees | 1,111 |
Auditing Fees | 36 |
Shareholders’ Reports—Admiral Shares | 3 |
Shareholders’ Reports—Institutional Shares | 1 |
Shareholders’ Reports—ETF Shares | 206 |
Trustees’ Fees and Expenses | 8 |
Total Expenses | 10,141 |
Net Investment Income | 349,511 |
Realized Net Gain (Loss) | |
Investment Securities Sold | (110,630) |
Foreign Currencies | (1,550) |
Realized Net Gain (Loss) | (112,180) |
Change in Unrealized Appreciation (Depreciation) | |
Investment Securities | 1,528,143 |
Foreign Currencies | 434 |
Change in Unrealized Appreciation (Depreciation) | 1,528,577 |
Net Increase (Decrease) in Net Assets Resulting from Operations | 1,765,908 |
1 Dividends are net of foreign withholding taxes of $23,679,000.
2 Interest income from an affiliated company of the fund was $35,000.
See accompanying Notes, which are an integral part of the Financial Statements.
16
Tax-Managed International Fund | ||
Statement of Changes in Net Assets | ||
Year Ended December 31, | ||
2012 | 2011 | |
($000) | ($000) | |
Increase (Decrease) in Net Assets | ||
Operations | ||
Net Investment Income | 349,511 | 268,837 |
Realized Net Gain (Loss) | (112,180) | 92,738 |
Change in Unrealized Appreciation (Depreciation) | 1,528,577 | (1,527,668) |
Net Increase (Decrease) in Net Assets Resulting from Operations | 1,765,908 | (1,166,093) |
Distributions | ||
Net Investment Income | ||
Admiral Shares1 | (41,759) | (41,602) |
Institutional Shares | (11,033) | (9,198) |
ETF Shares | (303,175) | (217,331) |
Realized Capital Gain | ||
Admiral Shares1 | — | — |
Institutional Shares | — | — |
ETF Shares | — | — |
Total Distributions | (355,967) | (268,131) |
Capital Share Transactions | ||
AdmiralShares1 | 12,399 | (22,043) |
Institutional Shares | (8,273) | 88,145 |
ETF Shares | 3,363,880 | 2,183,653 |
Net Increase (Decrease) from Capital Share Transactions | 3,368,006 | 2,249,755 |
Total Increase (Decrease) | 4,777,947 | 815,531 |
Net Assets | ||
Beginning of Period | 7,958,039 | 7,142,508 |
End of Period2 | 12,735,986 | 7,958,039 |
1 Investor Shares were renamed Admiral Shares as of the close of business on May 13, 2011.
2 Net Assets—End of Period includes undistributed (overdistributed) net investment income of ($11,932,000) and ($6,226,000).
See accompanying Notes, which are an integral part of the Financial Statements.
17
Tax-Managed International Fund | |||||
Financial Highlights | |||||
Admiral Shares | |||||
For a Share Outstanding | Year Ended December 31, | ||||
Throughout Each Period | 2012 | 2011 | 2010 | 2009 | 2008 |
Net Asset Value, Beginning of Period | $9.79 | $11.58 | $10.95 | $8.74 | $15.40 |
Investment Operations | |||||
Net Investment Income | .332 | .342 | .278 | .2771 | .290 |
Net Realized and Unrealized Gain (Loss) | |||||
on Investments | 1.474 | (1.794) | .634 | 2.190 | (6.661) |
Total from Investment Operations | 1.806 | (1.452) | .912 | 2.467 | (6.371) |
Distributions | |||||
Dividends from Net Investment Income | (.336) | (.338) | (.282) | (.257) | (.289) |
Distributions from Realized Capital Gains | — | — | — | — | — |
Total Distributions | (.336) | (.338) | (.282) | (.257) | (.289) |
Net Asset Value, End of Period | $11.26 | $9.79 | $11.58 | $10.95 | $8.74 |
Total Return2 | 18.56% | -12.51% | 8.36% | 28.27% | -41.27% |
Ratios/Supplemental Data | |||||
Net Assets, End of Period (Millions) | $1,425 | $1,229 | $1,476 | $1,409 | $1,131 |
Ratio of Total Expenses to | |||||
Average Net Assets | 0.10% | 0.12% | 0.18% | 0.20% | 0.15% |
Ratio of Net Investment Income to | |||||
Average Net Assets | 3.40% | 3.31% | 2.70% | 2.87% | 3.47% |
Portfolio Turnover Rate3 | 7% | 5% | 6% | 9% | 16% |
Investor Shares were renamed Admiral Shares as of the close of business on May 13, 2011. Prior periods’ Financial Highlights are for the Investor class.
1 Calculated based on average shares outstanding.
2 Total returns do not include transaction or account service fees that may have applied in the periods shown. Fund prospectuses provide information about any applicable transaction and account service fees.
3 Excludes the value of portfolio securities received or delivered as a result of in-kind purchases or redemptions of the fund’s capital shares, including ETF Creation Units.
See accompanying Notes, which are an integral part of the Financial Statements.
18
Tax-Managed International Fund | |||||
Financial Highlights | |||||
Institutional Shares | |||||
For a Share Outstanding | Year Ended December 31, | ||||
Throughout Each Period | 2012 | 2011 | 2010 | 2009 | 2008 |
Net Asset Value, Beginning of Period | $9.79 | $11.60 | $10.96 | $8.74 | $15.41 |
Investment Operations | |||||
Net Investment Income | .336 | .347 | .289 | .2881 | .296 |
Net Realized and Unrealized Gain (Loss) | |||||
on Investments | 1.483 | (1.813) | .644 | 2.197 | (6.671) |
Total from Investment Operations | 1.819 | (1.466) | .933 | 2.485 | (6.375) |
Distributions | |||||
Dividends from Net Investment Income | (.339) | (.344) | (.293) | (.265) | (.295) |
Distributions from Realized Capital Gains | — | — | — | — | — |
Total Distributions | (.339) | (.344) | (.293) | (.265) | (.295) |
Net Asset Value, End of Period | $11.27 | $9.79 | $11.60 | $10.96 | $8.74 |
Total Return2 | 18.70% | -12.62% | 8.55% | 28.48% | -41.27% |
Ratios/Supplemental Data | |||||
Net Assets, End of Period (Millions) | $332 | $294 | $253 | $219 | $242 |
Ratio of Total Expenses to | |||||
Average Net Assets | 0.07% | 0.08% | 0.08% | 0.10% | 0.09% |
Ratio of Net Investment Income to | |||||
Average Net Assets | 3.43% | 3.35% | 2.80% | 2.97% | 3.53% |
Portfolio Turnover Rate3 | 7% | 5% | 6% | 9% | 16% |
1 Calculated based on average shares outstanding.
2 Total returns do not include transaction fees that may have applied in the periods shown. Fund prospectuses provide information about any applicable transaction fees.
3 Excludes the value of portfolio securities received or delivered as a result of in-kind purchases or redemptions of the fund’s capital shares, including ETF Creation Units.
See accompanying Notes, which are an integral part of the Financial Statements.
19
Tax-Managed International Fund | |||||
Financial Highlights | |||||
MSCI EAFE ETF Shares | |||||
For a Share Outstanding | Year Ended December 31, | ||||
Throughout Each Period | 2012 | 2011 | 2010 | 2009 | 2008 |
Net Asset Value, Beginning of Period | $30.44 | $36.04 | $34.06 | $27.18 | $47.92 |
Investment Operations | |||||
Net Investment Income | 1.035 | 1.067 | .887 | .8601 | .934 |
Net Realized and Unrealized Gain (Loss) | |||||
on Investments | 4.591 | (5.609) | 1.990 | 6.836 | (20.744) |
Total from Investment Operations | 5.626 | (4.542) | 2.877 | 7.696 | (19.810) |
Distributions | |||||
Dividends from Net Investment Income | (1.046) | (1.058) | (.897) | (.816) | (.930) |
Distributions from Realized Capital Gains | — | — | — | — | — |
Total Distributions | (1.046) | (1.058) | (.897) | (.816) | (.930) |
Net Asset Value, End of Period | $35.02 | $30.44 | $36.04 | $34.06 | $27.18 |
Total Return | 18.60% | -12.57% | 8.47% | 28.34% | -41.25% |
Ratios/Supplemental Data | |||||
Net Assets, End of Period (Millions) | $10,979 | $6,435 | $5,414 | $4,356 | $2,292 |
Ratio of Total Expenses to | |||||
Average Net Assets | 0.10% | 0.12% | 0.12% | 0.15% | 0.11% |
Ratio of Net Investment Income to | |||||
Average Net Assets | 3.40% | 3.31% | 2.76% | 2.92% | 3.51% |
Portfolio Turnover Rate2 | 7% | 5% | 6% | 9% | 16% |
1 Calculated based on average shares outstanding.
2 Excludes the value of portfolio securities received or delivered as a result of in-kind purchases or redemptions of the fund’s capital shares, including ETF Creation Units.
See accompanying Notes, which are an integral part of the Financial Statements.
20
Tax-Managed International Fund
Notes to Financial Statements
Vanguard Tax-Managed International Fund is registered under the Investment Company Act of 1940 as an open-end investment company, or mutual fund. The fund invests in securities of foreign issuers, which may subject it to investment risks not normally associated with investing in securities of U.S. corporations. The fund offers three classes of shares: Admiral Shares, Institutional Shares, and ETF Shares. Admiral Shares and Institutional Shares are designed for investors who meet certain administrative, service, and account-size criteria. ETF Shares are listed for trading on NYSE Arca; they can be purchased and sold through a broker.
A. The following significant accounting policies conform to generally accepted accounting principles for U.S. mutual funds. The fund consistently follows such policies in preparing its financial statements.
1. Security Valuation: Securities are valued as of the close of trading on the New York Stock Exchange (generally 4 p.m., Eastern time) on the valuation date. Equity securities are valued at the latest quoted sales prices or official closing prices taken from the primary market in which each security trades; such securities not traded on the valuation date are valued at the mean of the latest quoted bid and asked prices. Securities for which market quotations are not readily available, or whose values have been affected by events occurring before the fund’s pricing time but after the close of the securities’ primary markets, are valued at their fair values calculated according to procedures adopted by the board of trustees. These procedures include obtaining quotations from an independent pricing service, monitoring news to identify significant market- or security-specific events, and evaluating changes in the values of foreign market proxies (for example, ADRs, futures contracts, or exchange-traded funds), between the time the foreign markets close and the fund’s pricing time. When fair-value pricing is employed, the prices of securities used by a fund to calculate its net asset value may differ from quoted or published prices for the same securities.
2. Foreign Currency: Securities and other assets and liabilities denominated in foreign currencies are translated into U.S. dollars using exchange rates obtained from an independent third party as of the fund’s pricing time on the valuation date. Realized gains (losses) and unrealized appreciation (depreciation) on investment securities include the effects of changes in exchange rates since the securities were purchased, combined with the effects of changes in security prices. Fluctuations in the value of other assets and liabilities resulting from changes in exchange rates are recorded as unrealized foreign currency gains (losses) until the assets or liabilities are settled in cash, at which time they are recorded as realized foreign currency gains (losses).
3. Federal Income Taxes: The fund intends to continue to qualify as a regulated investment company and distribute all of its taxable income. Management has analyzed the fund’s tax positions taken for all open federal income tax years (December 31, 2009–2012), and has concluded that no provision for federal income tax is required in the fund’s financial statements.
4. Distributions: Distributions to shareholders are recorded on the ex-dividend date.
5. Other: Dividend income is recorded on the ex-dividend date. Interest income includes income distributions received from Vanguard Market Liquidity Fund and is accrued daily. Security transactions are accounted for on the date securities are bought or sold. Costs used to determine realized gains (losses) on the sale of investment securities are those of the specific securities sold. Fees assessed on redemptions of capital shares prior to May 23, 2012, were credited to paid-in capital.
Each class of shares has equal rights as to assets and earnings, except that each class separately bears certain class-specific expenses related to maintenance of shareholder accounts (included in Management and Administrative expenses) and shareholder reporting. Marketing and distribution
21
Tax-Managed International Fund
expenses are allocated to each class of shares based on a method approved by the board of trustees. Income, other non-class-specific expenses, and gains and losses on investments are allocated to each class of shares based on its relative net assets.
B. The Vanguard Group furnishes at cost investment advisory, corporate management, administrative, marketing, and distribution services. The costs of such services are allocated to the fund under methods approved by the board of trustees. The fund has committed to provide up to 0.40% of its net assets in capital contributions to Vanguard. At December 31, 2012, the fund had contributed capital of $1,641,000 to Vanguard (included in Other Assets), representing 0.01% of the fund’s net assets and 0.66% of Vanguard’s capitalization. The fund’s trustees and officers are also directors and officers of Vanguard.
C. 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—Quoted prices in active markets for identical securities.
Level 2—Other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.).
Level 3—Significant unobservable inputs (including the fund’s own assumptions used to determine the fair value of investments).
The following table summarizes the market value of the fund’s investments as of December 31, 2012, based on the inputs used to value them:
Level 1 | Level 2 | Level 3 | |
Investments | ($000) | ($000) | ($000) |
Common Stocks | 1,507 | 12,729,109 | — |
D. Distributions are determined on a tax basis and may differ from net investment income and realized capital gains for financial reporting purposes. Differences may be permanent or temporary. Permanent differences are reclassified among capital accounts in the financial statements to reflect their tax character. Temporary differences arise when certain items of income, expense, gain, or loss are recognized in different periods for financial statement and tax purposes; these differences will reverse at some time in the future. Differences in classification may also result from the treatment of short-term gains as ordinary income for tax purposes.
During the year ended December 31, 2012, the fund realized net foreign currency losses of $1,550,000, which decreased distributable net income for tax purposes; accordingly, such losses have been reclassified from accumulated net realized losses to overdistributed net investment income. Certain of the fund’s investments are in securities considered to be “passive foreign investment companies,” for which any unrealized appreciation and/or realized gains are required to be included in distributable net income for tax purposes. During the year ended December 31, 2012, the fund realized gains on the sale of passive foreign investment companies of $2,300,000, which have been included in current and prior periods’ taxable income; accordingly, such gains have been reclassified from accumulated net realized losses to overdistributed net investment income.
22
Tax-Managed International Fund
For tax purposes, at December 31, 2012, the fund had no ordinary income available for distribution. At December 31, 2012, the fund had available capital losses totaling $542,173,000 to offset future net capital gains. Of this amount, $429,605,000 is subject to expiration dates; $90,589,000 may be used to offset future net capital gains through December 31, 2016, and $339,016,000 through December 31, 2017. Capital losses of $112,568,000 realized beginning in fiscal 2011 may be carried forward indefinitely under the Regulated Investment Company Modernization Act of 2010, but must be used before any expiring loss carryforwards.
At December 31, 2012, the cost of investment securities for tax purposes was $12,213,629,000. Net unrealized appreciation of investment securities for tax purposes was $516,987,000, consisting of unrealized gains of $1,633,736,000 on securities that had risen in value since their purchase and $1,116,749,000 in unrealized losses on securities that had fallen in value since their purchase.
E. During the year ended December 31, 2012, the fund purchased $4,071,920,000 of investment securities and sold $709,652,000 of investment securities, other than temporary cash investments. Purchases and sales include $3,358,298,000 and $0, respectively, in connection with in-kind purchases and redemptions of the fund’s capital shares.
F. Capital share transactions for each class of shares were:
Year Ended December 31, | ||||
2012 | 2011 | |||
Amount | Shares | Amount | Shares | |
($000) | (000) | ($000) | (000) | |
Admiral Shares1 | ||||
Issued | 157,596 | 14,955 | 1,634,445 | 136,031 |
Issued in Lieu of Cash Distributions | 32,646 | 2,975 | 32,302 | 3,328 |
Redeemed 2 | (177,843) | (16,994) | (1,688,790) | (141,153) |
Net Increase (Decrease)—Admiral Shares | 12,399 | 936 | (22,043) | (1,794) |
Institutional Shares | ||||
Issued | 62,751 | 5,966 | 94,698 | 8,648 |
Issued in Lieu of Cash Distributions | 8,839 | 805 | 7,529 | 775 |
Redeemed 2 | (79,863) | (7,269) | (14,082) | (1,224) |
Net Increase (Decrease)—Institutional Shares | (8,273) | (498) | 88,145 | 8,199 |
ETF Shares | ||||
Issued | 3,363,880 | 102,066 | 2,453,259 | 69,201 |
Issued in Lieu of Cash Distributions | — | — | — | — |
Redeemed2 | — | — | (269,606) | (8,000) |
Net Increase (Decrease) —ETF Shares | 3,363,880 | 102,066 | 2,183,653 | 61,201 |
1 Investor Shares were renamed Admiral Shares as of the close of business on May 13, 2011.
2 Net of redemption fees for fiscal 2012 and 2011 of $0 and $155,000. Effective May 23, 2012, the redemption fee was eliminated.
23
Tax-Managed International Fund
G. In preparing the financial statements as of December 31, 2012, management considered the impact of subsequent events for potential recognition or disclosure in these financial statements.
On October 2, 2012, Vanguard announced an upcoming change in the fund’s benchmark index from the MSCI EAFE Index to the FTSE Developed ex North America Index. The fund’s investment objective is not changing. The transition to the new benchmark is expected to be completed over several months, and will require some turnover of holdings with resulting transaction costs. Vanguard will seek to minimize trading impact through efficient portfolio trading.
24
Report of Independent Registered
Public Accounting Firm
To the Trustees of Vanguard Tax-Managed Funds and the Shareholders of Vanguard Tax-Managed International Fund: In our opinion, the accompanying statement of net assets—investments summary and the related statements of operations and of changes in net assets and the financial highlights present fairly, in all material respects, the financial position of Vanguard Tax-Managed International Fund (constituting a separate portfolio of Vanguard Tax-Managed Funds, hereafter referred to as the “Fund”) at December 31, 2012, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended and the financial highlights for each of the five years in the period then ended, in conformity with accounting principles generally accepted in the United States of America. These financial statements and financial highlights (hereafter referred to as “financial statements”) are the responsibility of the Fund’s management; our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these financial statements in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits, which included confirmation of securities at December 31, 2012, by correspondence with the custodian and by agreement to the underlying ownership records of the transfer agent, provide a reasonable basis for our opinion.
PricewaterhouseCoopers LLP
Philadelphia, Pennsylvania
February 14, 2013
Special 2012 tax information (unaudited) for Vanguard Tax-Managed International Fund |
This information for the fiscal year ended December 31, 2012, is included pursuant to provisions of the Internal Revenue Code.
The fund distributed $355,967,000 of qualified dividend income to shareholders during the fiscal year.
The fund designates to shareholders foreign source income of $383,298,000 and foreign taxes paid of $23,569,000. Shareholders will receive more detailed information with their Form 1099-DIV in January 2013 to determine the calendar-year amounts to be included on their 2012 tax returns.
25
Your Fund’s After-Tax Returns
This table presents returns for your fund both before and after taxes. The after-tax returns are shown in two ways: (1) assuming that an investor owned the fund during the entire period and paid taxes on the fund’s distributions, and (2) assuming that an investor paid taxes on the fund’s distributions and sold all shares at the end of each period.
Calculations are based on the highest individual federal income tax and capital gains tax rates in effect at the times of the distributions and the hypothetical sales. State and local taxes were not considered. After-tax returns reflect any qualified dividend income.(In the example, returns after the sale of fund shares may be higher than those assuming no sale. This occurs when the sale would have produced a capital loss. The calculation assumes that the investor received a tax deduction for the loss.)
The table shows returns for ETF Shares only; returns for other share classes will differ. Please note that your actual after-tax returns will depend on your tax situation and may differ from those shown. Also note that if you own the fund in a tax-deferred account, such as an individual retirement account or a 401(k) plan, this information does not apply to you. Such accounts are not subject to current taxes.
Finally, keep in mind that a fund’s performance—whether before or after taxes—does not guarantee future results.
Average Annual Total Returns: MSCI EAFE ETF Shares | |||
Periods Ended December 31, 2012 | |||
Since | |||
One | Five | Inception | |
Year | Years | (7/20/2007) | |
Returns Before Taxes | 18.60% | -3.24% | -3.34% |
Returns After Taxes on Distributions | 18.21 | -3.51 | -3.62 |
Returns After Taxes on Distributions and Sale of Fund Shares | 12.92 | -2.63 | -2.69 |
26
About Your Fund’s Expenses
As a shareholder of the fund, you incur ongoing costs, which include costs for portfolio management, administrative services, and shareholder reports (like this one), among others. Operating expenses, which are deducted from a fund’s gross income, directly reduce the investment return of the fund.
A fund’s expenses are expressed as a percentage of its average net assets. This figure is known as the expense ratio. The following examples are intended to help you understand the ongoing costs (in dollars) of investing in your fund and to compare these costs with those of other mutual funds. The examples are based on an investment of $1,000 made at the beginning of the period shown and held for the entire period.
The accompanying table illustrates your fund’s costs in two ways:
• 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.
To do so, simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number given for your fund under the heading ”Expenses Paid During 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.
Note that the expenses shown in the table are meant to highlight and help you compare ongoing costs only and do not reflect transaction costs incurred by the fund for buying and selling securities. Further, the expenses do not include any purchase, redemption, or account service fees described in the fund prospectus. If such fees were applied to your account, your costs would be higher. Your fund does not carry a “sales load.”
The calculations assume no shares were bought or sold during the period. Your actual costs may have been higher or lower, depending on the amount of your investment and the timing of any purchases or redemptions.
You can find more information about the fund’s expenses, including annual expense ratios, in the Financial Statements section of this report. For additional information on operating expenses and other shareholder costs, please refer to your fund’s current prospectus.
27
Six Months Ended December 31, 2012 | |||
Beginning | Ending | Expenses | |
Account Value | Account Value | Paid During | |
Tax-Managed International Fund | 6/30/2012 | 12/31/2012 | Period |
Based on Actual Fund Return | |||
Admiral Shares | $1,000.00 | $1,144.27 | $0.49 |
Institutional Shares | 1,000.00 | 1,144.44 | 0.38 |
MSCI EAFE ETF Shares | 1,000.00 | 1,143.87 | 0.49 |
Based on Hypothetical 5% Yearly Return | |||
Admiral Shares | $1,000.00 | $1,024.75 | $0.46 |
Institutional Shares | 1,000.00 | 1,024.85 | 0.36 |
MSCI EAFE ETF Shares | 1,000.00 | 1,024.75 | 0.46 |
The calculations are based on expenses incurred in the most recent six-month period. The fund’s annualized six-month expense ratios for that period are 0.09% for Admiral Shares, 0.07% for Institutional Shares, and 0.09% for MSCI EAFE ETF Shares. The dollar amounts shown as “Expenses Paid” are equal to the annualized expense ratio multiplied by the average account value over the period, multiplied by the number of days in the most recent six-month period, then divided by the number of days in the most recent 12-month period.
28
Glossary
Beta. A measure of the magnitude of a fund’s past share-price fluctuations in relation to the ups and downs of a given market index. The index is assigned a beta of 1.00. Compared with a given index, a fund with a beta of 1.20 typically would have seen its share price rise or fall by 12% when the index rose or fell by 10%. For this report, beta is based on returns over the past 36 months for both the fund and the index. Note that a fund’s beta should be reviewed in conjunction with its R-squared (see definition). The lower the R-squared, the less correlation there is between the fund and the index, and the less reliable beta is as an indicator of volatility.
Dividend Yield. Dividend income earned by stocks, expressed as a percentage of the aggregate market value (or of net asset value, for a fund). The yield is determined by dividing the amount of the annual dividends by the aggregate value (or net asset value) at the end of the period. For a fund, the dividend yield is based solely on stock holdings and does not include any income produced by other investments.
Earnings Growth Rate. The average annual rate of growth in earnings over the past five years for the stocks now in a fund.
Equity Exposure. A measure that reflects a fund’s investments in stocks and stock futures. Any holdings in short-term reserves are excluded.
Expense Ratio. A fund’s total annual operating expenses expressed as a percentage of the fund’s average net assets. The expense ratio includes management and administrative expenses, but does not include the transaction costs of buying and selling portfolio securities.
Inception Date. The date on which the assets of a fund (or one of its share classes) are first invested in accordance with the fund’s investment objective. For funds with a subscription period, the inception date is the day after that period ends. Investment performance is measured from the inception date.
Median Market Cap. An indicator of the size of companies in which a fund invests; the midpoint of market capitalization (market price x shares outstanding) of a fund’s stocks, weighted by the proportion of the fund’s assets invested in each stock. Stocks representing half of the fund’s assets have market capitalizations above the median, and the rest are below it.
Price/Book Ratio. The share price of a stock divided by its net worth, or book value, per share. For a fund, the weighted average price/book ratio of the stocks it holds.
Price/Earnings Ratio. The ratio of a stock’s current price to its per-share earnings over the past year. For a fund, the weighted average P/E of the stocks it holds. P/E is an indicator of market expectations about corporate prospects; the higher the P/E, the greater the expectations for a company’s future growth.
R-Squared. A measure of how much of a fund’s past returns can be explained by the returns from the market in general, as measured by a given index. If a fund’s total returns were precisely synchronized with an index’s returns, its R-squared would be 1.00. If the fund’s returns bore no relationship to the index’s returns, its R-squared would be 0. For this report, R-squared is based on returns over the past 36 months for both the fund and the index.
29
Return on Equity. The annual average rate of return generated by a company during the past five years for each dollar of shareholder’s equity (net income divided by shareholder’s equity). For a fund, the weighted average return on equity for the companies whose stocks it holds.
Short-Term Reserves. The percentage of a fund invested in highly liquid, short-term securities that can be readily converted to cash.
Turnover Rate. An indication of the fund’s trading activity. Funds with high turnover rates incur higher transaction costs and may be more likely to distribute capital gains (which may be taxable to investors). The turnover rate excludes in-kind transactions, which have minimal impact on costs.
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The People Who Govern Your Fund
The trustees of your mutual fund are there to see that the fund is operated and managed in your best interests since, as a shareholder, you are a part owner of the fund. Your fund’s trustees also serve on the board of directors of The Vanguard Group, Inc., which is owned by the Vanguard funds and provides services to them on an at-cost basis.
A majority of Vanguard’s board members are independent, meaning that they have no affiliation with Vanguard or the funds they oversee, apart from the sizable personal investments they have made as private individuals. The independent board members have distinguished backgrounds in business, academia, and public service. Each of the trustees and executive officers oversees 180 Vanguard funds.
The following table provides information for each trustee and executive officer of the fund. More information about the trustees is in the Statement of Additional Information, which can be obtained, without charge, by contacting Vanguard at 800-662-7447, or online at vanguard.com.
InterestedTrustee1 | and Delphi Automotive LLP (automotive components); |
Senior Advisor at New Mountain Capital; Trustee of | |
F. William McNabb III | The Conference Board. |
Born 1957. Trustee Since July 2009. Chairman of the | |
Board. Principal Occupation(s) During the Past Five | Amy Gutmann |
Years: Chairman of the Board of The Vanguard Group, | Born 1949. Trustee Since June 2006. Principal |
Inc., and of each of the investment companies served | Occupation(s) During the Past Five Years: President |
by The Vanguard Group, since January 2010; Director | of the University of Pennsylvania; Christopher H. |
of The Vanguard Group since 2008; Chief Executive | Browne Distinguished Professor of Political Science |
Officer and President of The Vanguard Group and of | in the School of Arts and Sciences with secondary |
each of the investment companies served by The | appointments at the Annenberg School for |
Vanguard Group since 2008; Director of Vanguard | Communication and the Graduate School of Education |
Marketing Corporation; Managing Director of The | of the University of Pennsylvania; Member of the |
Vanguard Group (1995–2008). | National Commission on the Humanities and Social |
Sciences; Trustee of Carnegie Corporation of New | |
IndependentTrustees | York and of the National Constitution Center; Chair |
of the U. S. Presidential Commission for the Study | |
Emerson U. Fullwood | of Bioethical Issues. |
Born 1948. Trustee Since January 2008. Principal | |
Occupation(s) During the Past Five Years: Executive | JoAnn Heffernan Heisen |
Chief Staff and Marketing Officer for North America | Born 1950. Trustee Since July 1998. Principal |
and Corporate Vice President (retired 2008) of Xerox | Occupation(s) During the Past Five Years: Corporate |
Corporation (document management products and | Vice President and Chief Global Diversity Officer |
services); Executive in Residence and 2010 | (retired 2008) and Member of the Executive |
Distinguished Minett Professor at the Rochester | Committee (1997–2008) of Johnson & Johnson |
Institute of Technology; Director of SPX Corporation | (pharmaceuticals/medical devices/consumer |
(multi-industry manufacturing), the United Way of | products); Director of Skytop Lodge Corporation |
Rochester, Amerigroup Corporation (managed health | (hotels), the University Medical Center at Princeton, |
care), the University of Rochester Medical Center, | the Robert Wood Johnson Foundation, and the Center |
Monroe Community College Foundation, and North | for Talent Innovation; Member of the Advisory Board |
Carolina A&T University. | of the Maxwell School of Citizenship and Public Affairs |
at Syracuse University. | |
Rajiv L. Gupta | |
Born 1945. Trustee Since December 2001. 2 | F. Joseph Loughrey |
Principal Occupation(s) During the Past Five Years: | Born 1949. Trustee Since October 2009. Principal |
Chairman and Chief Executive Officer (retired 2009) | Occupation(s) During the Past Five Years: President |
and President (2006–2008) of Rohm and Haas Co. | and Chief Operating Officer (retired 2009) of Cummins |
(chemicals); Director of Tyco International, Ltd. | Inc. (industrial machinery); Director of SKF AB |
(diversified manufacturing and services), Hewlett- | (industrial machinery), Hillenbrand, Inc. (specialized |
Packard Co. (electronic computer manufacturing), | consumer services), the Lumina Foundation for |
Education, and Oxfam America; Chairman of the | Executive Officers | |
Advisory Council for the College of Arts and Letters | ||
and Member of the Advisory Board to the Kellogg | Glenn Booraem | |
Institute for International Studies at the University | Born 1967. Controller Since July 2010. Principal | |
of Notre Dame. | Occupation(s) During the Past Five Years: Principal | |
of The Vanguard Group, Inc.; Controller of each of | ||
Mark Loughridge | the investment companies served by The Vanguard | |
Born 1953. Trustee Since March 2012. Principal | Group; Assistant Controller of each of the investment | |
Occupation(s) During the Past Five Years: Senior Vice | companies served by The Vanguard Group (2001–2010). | |
President and Chief Financial Officer at IBM (information | ||
technology services); Fiduciary Member of IBM’s | Thomas J. Higgins | |
Retirement Plan Committee. | Born 1957. Chief Financial Officer Since September | |
2008. Principal Occupation(s) During the Past Five | ||
Scott C. Malpass | Years: Principal of The Vanguard Group, Inc.; Chief | |
Born 1962. Trustee Since March 2012. Principal | Financial Officer of each of the investment companies | |
Occupation(s) During the Past Five Years: Chief | served by The Vanguard Group; Treasurer of each of | |
Investment Officer and Vice President at the University | the investment companies served by The Vanguard | |
of Notre Dame; Assistant Professor of Finance at the | Group (1998–2008). | |
Mendoza College of Business at Notre Dame; Member | ||
of the Notre Dame 403(b) Investment Committee; | Kathryn J. Hyatt | |
Director of TIFF Advisory Services, Inc. (investment | Born 1955. Treasurer Since November 2008. Principal | |
advisor); Member of the Investment Advisory | Occupation(s) During the Past Five Years: Principal of | |
Committees of the Financial Industry Regulatory | The Vanguard Group, Inc.; Treasurer of each of the | |
Authority (FINRA) and of Major League Baseball. | investment companies served by The Vanguard | |
Group; Assistant Treasurer of each of the investment | ||
André F. Perold | companies served by The Vanguard Group (1988–2008). | |
Born 1952. Trustee Since December 2004. Principal | ||
Occupation(s) During the Past Five Years: George | Heidi Stam | |
Gund Professor of Finance and Banking at the Harvard | Born 1956. Secretary Since July 2005. Principal | |
Business School (retired 2011); Chief Investment | Occupation(s) During the Past Five Years: Managing | |
Officer and Managing Partner of HighVista Strategies | Director of The Vanguard Group, Inc.; General Counsel | |
LLC (private investment firm); Director of Rand | of The Vanguard Group; Secretary of The Vanguard | |
Merchant Bank; Overseer of the Museum of Fine | Group and of each of the investment companies | |
Arts Boston. | served by The Vanguard Group; Director and Senior | |
Vice President of Vanguard Marketing Corporation. | ||
Alfred M. Rankin, Jr. | ||
Born 1941. Trustee Since January 1993. Principal | Vanguard Senior ManagementTeam | |
Occupation(s) During the Past Five Years: Chairman, | ||
President, and Chief Executive Officer of NACCO | Mortimer J. Buckley | Michael S. Miller |
Industries, Inc. (forklift trucks/housewares/lignite); | Kathleen C. Gubanich | James M. Norris |
Director of Goodrich Corporation (industrial products/ | Paul A. Heller | Glenn W. Reed |
aircraft systems and services) and the National | Martha G. King | George U. Sauter |
Association of Manufacturers; Chairman of the Board | Chris D. McIsaac | |
of the Federal Reserve Bank of Cleveland and of | ||
University Hospitals of Cleveland; Advisory Chairman | Chairman Emeritus and Senior Advisor | |
of the Board of The Cleveland Museum of Art. | ||
John J. Brennan | ||
Peter F. Volanakis | Chairman, 1996–2009 | |
Born 1955. Trustee Since July 2009. Principal | Chief Executive Officer and President, 1996–2008 | |
Occupation(s) During the Past Five Years: President | ||
and Chief Operating Officer (retired 2010) of Corning | Founder | |
Incorporated (communications equipment); Director | ||
of SPX Corporation (multi-industry manufacturing); | John C. Bogle | |
Overseer of the Amos Tuck School of Business | Chairman and Chief Executive Officer, 1974–1996 | |
Administration at Dartmouth College; Advisor to the | ||
Norris Cotton Cancer Center. |
1 Mr. McNabb is considered an “interested person,” as defined in the Investment Company Act of 1940, because he is an officer of the Vanguard funds.
2 December 2002 for Vanguard Equity Income Fund, Vanguard Growth Equity Fund, the Vanguard Municipal Bond Funds, and the Vanguard State Tax-Exempt Funds.
P.O. Box 2600 | |
Valley Forge, PA 19482-2600 |
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This material may be used in conjunction | |
with the offering of shares of any Vanguard | |
fund only if preceded or accompanied by | |
the fund’s current prospectus. | |
All comparative mutual fund data are from Lipper Inc. or | |
Morningstar, Inc., unless otherwise noted. | |
You can obtain a free copy of Vanguard’s proxy voting | |
guidelines by visiting vanguard.com/proxyreporting or by | |
calling Vanguard at 800-662-2739. The guidelines are | |
also available from the SEC’s website, sec.gov. In | |
addition, you may obtain a free report on how your fund | |
voted the proxies for securities it owned during the 12 | |
months ended June 30. To get the report, visit either | |
vanguard.com/proxyreporting or sec.gov. | |
You can review and copy information about your fund at | |
the SEC’s Public Reference Room in Washington, D.C. To | |
find out more about this public service, call the SEC at | |
202-551-8090. Information about your fund is also | |
available on the SEC’s website, and you can receive | |
copies of this information, for a fee, by sending a | |
request in either of two ways: via e-mail addressed to | |
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Commission, Washington, DC 20549-1520. | |
© 2013 The Vanguard Group, Inc. | |
All rights reserved. | |
Vanguard Marketing Corporation, Distributor. | |
Q1270 022013 |
Vanguard® Tax-Managed International Fund | ||
Schedule of Investments | ||
December 31, 2012 | ||
Market | ||
Value | ||
Shares | ($000) | |
Common Stocks (100.0%) | ||
Australia (8.9%) | ||
BHP Billiton Ltd. | 3,793,403 | 148,145 |
Commonwealth Bank of Australia | 1,882,862 | 122,306 |
Westpac Banking Corp. | 3,657,348 | 99,986 |
Australia & New Zealand Banking Group Ltd. | 3,258,609 | 85,314 |
National Australia Bank Ltd. | 2,729,527 | 71,385 |
Wesfarmers Ltd. | 1,206,145 | 46,543 |
Woolworths Ltd. | 1,488,848 | 45,505 |
Rio Tinto Ltd. | 521,042 | 36,267 |
CSL Ltd. | 596,288 | 33,686 |
Woodside Petroleum Ltd. | 804,550 | 28,674 |
Telstra Corp. Ltd. | 5,383,320 | 24,524 |
Newcrest Mining Ltd. | 902,965 | 21,082 |
AMP Ltd. | 3,751,476 | 19,068 |
Suncorp Group Ltd. | 1,670,331 | 17,759 |
Macquarie Group Ltd. | 442,076 | 16,441 |
Origin Energy Ltd. | 1,338,358 | 16,378 |
QBE Insurance Group Ltd. | 1,425,538 | 16,316 |
Brambles Ltd. | 1,991,443 | 15,848 |
Santos Ltd. | 1,166,771 | 13,665 |
Insurance Australia Group Ltd. | 2,741,607 | 13,483 |
Amcor Ltd. | 1,544,530 | 13,060 |
Orica Ltd. | 475,397 | 12,501 |
Transurban Group | 1,875,276 | 11,910 |
AGL Energy Ltd. | 740,963 | 11,899 |
ASX Ltd. | 363,812 | 11,869 |
Coca-Cola Amatil Ltd. | 798,561 | 11,227 |
Aurizon Holdings Ltd. | 2,231,218 | 8,763 |
Fortescue Metals Group Ltd. | 1,620,532 | 8,040 |
Lend Lease Group | 806,977 | 7,862 |
Incitec Pivot Ltd. | 2,125,055 | 7,221 |
Sonic Healthcare Ltd. | 495,341 | 6,917 |
WorleyParsons Ltd. | 273,073 | 6,737 |
APA Group | 1,163,956 | 6,719 |
Asciano Ltd. | 1,361,034 | 6,651 |
Cochlear Ltd. | 78,209 | 6,470 |
Computershare Ltd. | 680,709 | 6,410 |
Tatts Group Ltd. | 2,023,960 | 6,373 |
Crown Ltd. | 552,301 | 6,153 |
James Hardie Industries plc | 604,112 | 5,844 |
Ramsay Health Care Ltd. | 198,237 | 5,632 |
Bendigo and Adelaide Bank Ltd. | 596,820 | 5,322 |
Iluka Resources Ltd. | 511,798 | 4,960 |
Toll Holdings Ltd. | 1,024,710 | 4,906 |
Boral Ltd. | 1,027,177 | 4,725 |
Treasury Wine Estates Ltd. | 918,626 | 4,524 |
ALS Ltd. | 396,924 | 4,512 |
Metcash Ltd. | 1,226,245 | 4,270 |
Caltex Australia Ltd. | 209,665 | 4,226 |
Leighton Holdings Ltd. | 215,851 | 4,061 |
Echo Entertainment Group Ltd. | 998,428 | 3,600 |
Tabcorp Holdings Ltd. | 1,088,974 | 3,480 |
SP AusNet | 2,966,967 | 3,408 |
Sydney Airport | 945,377 | 3,336 |
OZ Minerals Ltd. | 453,278 | 3,228 |
Flight Centre Ltd. | 108,874 | 3,088 |
Alumina Ltd. | 3,183,328 | 3,078 |
* Qantas Airways Ltd. | 1,844,207 | 2,900 |
Sims Metal Management Ltd. | 259,135 | 2,526 |
Harvey Norman Holdings Ltd. | 1,198,234 | 2,381 |
Whitehaven Coal Ltd. | 539,153 | 1,994 |
Newcrest Mining Ltd. ADR | 22,953 | 539 |
1
Vanguard® Tax-Managed International Fund | ||
Schedule of Investments | ||
December 31, 2012 | ||
Market | ||
Value | ||
Shares | ($000) | |
Sims Metal Management Ltd. ADR | 3,072 | 30 |
1,135,727 | ||
Austria (0.3%) | ||
* Erste Group Bank AG | 257,363 | 8,229 |
OMV AG | 191,295 | 6,946 |
Andritz AG | 87,054 | 5,593 |
Voestalpine AG | 122,320 | 4,498 |
Vienna Insurance Group AG Wiener Versicherung Gruppe | 74,912 | 4,019 |
Raiffeisen Bank International AG | 73,731 | 3,082 |
Verbund AG | 98,820 | 2,448 |
Telekom Austria AG | 294,695 | 2,230 |
37,045 | ||
Belgium (1.1%) | ||
Anheuser-Busch InBev NV | 943,309 | 82,435 |
Solvay SA Class A | 74,562 | 10,733 |
KBC Groep NV | 267,482 | 9,311 |
Umicore SA | 154,063 | 8,495 |
Ageas | 268,629 | 8,015 |
UCB SA | 131,526 | 7,567 |
Belgacom SA | 199,488 | 5,880 |
Colruyt SA | 96,135 | 4,773 |
Delhaize Group SA | 115,872 | 4,641 |
Telenet Group Holding NV | 54,934 | 2,553 |
144,403 | ||
Denmark (1.2%) | ||
Novo Nordisk A/S Class B | 474,931 | 77,566 |
Carlsberg A/S Class B | 132,183 | 12,995 |
AP Moeller - Maersk A/S Class B | 1,676 | 12,829 |
* Danske Bank A/S | 740,455 | 12,588 |
Novozymes A/S | 278,397 | 7,879 |
Coloplast A/S Class B | 109,015 | 5,343 |
DSV A/S | 178,318 | 4,650 |
TDC A/S | 558,347 | 3,957 |
AP Moeller - Maersk A/S Class A | 498 | 3,546 |
Tryg A/S | 41,842 | 3,164 |
* William Demant Holding A/S | 31,999 | 2,746 |
147,263 | ||
Finland (0.8%) | ||
Sampo | 529,303 | 17,116 |
Nokia Oyj | 4,327,499 | 17,018 |
Kone Oyj Class B | 192,389 | 14,246 |
Fortum Oyj | 536,529 | 10,090 |
Wartsila OYJ Abp | 209,246 | 9,255 |
UPM-Kymmene Oyj | 608,442 | 7,230 |
Metso Oyj | 136,764 | 5,958 |
Nokian Renkaat Oyj | 145,036 | 5,836 |
Stora Enso Oyj | 616,088 | 4,358 |
Pohjola Bank plc Class A | 243,369 | 3,634 |
Elisa Oyj | 125,991 | 2,815 |
Neste Oil Oyj | 213,048 | 2,778 |
Orion Oyj Class B | 92,811 | 2,728 |
Kesko Oyj Class B | 44,230 | 1,450 |
104,512 | ||
France (9.7%) | ||
Sanofi | 1,384,618 | 131,311 |
Total SA | 2,453,163 | 126,970 |
BNP Paribas SA | 1,155,773 | 65,148 |
LVMH Moet Hennessy Louis Vuitton SA | 291,815 | 54,379 |
Air Liquide SA | 364,076 | 45,625 |
Schneider Electric SA | 605,979 | 45,196 |
Danone SA | 666,336 | 44,025 |
L'Oreal SA | 278,551 | 38,911 |
AXA SA | 2,028,415 | 36,690 |
2
Vanguard® Tax-Managed International Fund | ||
Schedule of Investments | ||
December 31, 2012 | ||
Market | ||
Value | ||
Shares | ($000) | |
Unibail-Rodamco SE | 136,158 | 33,333 |
Vivendi SA | 1,478,374 | 33,293 |
GDF Suez | 1,486,928 | 30,637 |
* Societe Generale SA | 804,096 | 30,246 |
Pernod-Ricard SA | 248,679 | 29,242 |
Vinci SA | 518,958 | 24,699 |
France Telecom SA | 2,128,459 | 23,836 |
Cie Generale d'Optique Essilor International SA | 231,826 | 23,505 |
Cie Generale des Etablissements Michelin | 211,957 | 20,094 |
Cie de St-Gobain | 450,415 | 19,273 |
ArcelorMittal | 1,084,270 | 18,770 |
European Aeronautic Defence and Space Co. NV | 473,684 | 18,565 |
Carrefour SA | 679,801 | 17,604 |
PPR | 86,839 | 16,185 |
Lafarge SA | 224,979 | 14,416 |
Technip SA | 120,880 | 13,917 |
Renault SA | 223,431 | 12,327 |
Klepierre | 284,540 | 11,469 |
Safran SA | 259,599 | 11,328 |
Legrand SA | 264,619 | 11,169 |
Christian Dior SA | 62,395 | 10,787 |
Publicis Groupe SA | 179,303 | 10,743 |
Alstom SA | 236,712 | 9,700 |
Sodexo | 113,639 | 9,522 |
SES SA | 328,446 | 9,502 |
* Credit Agricole SA | 1,167,897 | 9,482 |
Dassault Systemes SA | 76,774 | 8,595 |
Gemalto NV | 92,395 | 8,365 |
Fonciere Des Regions | 96,654 | 8,101 |
Bureau Veritas SA | 70,491 | 7,837 |
Cap Gemini SA | 175,819 | 7,662 |
Gecina SA | 62,773 | 7,006 |
Arkema SA | 66,313 | 6,972 |
Accor SA | 194,318 | 6,970 |
ICADE | 73,428 | 6,587 |
Vallourec SA | 117,778 | 6,146 |
* Cie Generale de Geophysique - Veritas | 199,336 | 6,008 |
Bouygues SA | 200,717 | 5,918 |
Casino Guichard Perrachon SA | 59,878 | 5,760 |
STMicroelectronics NV | 711,642 | 5,189 |
AtoS | 71,447 | 5,091 |
Iliad SA | 28,807 | 4,959 |
Veolia Environnement SA | 402,390 | 4,905 |
Edenred | 154,826 | 4,815 |
Lagardere SCA | 138,362 | 4,698 |
Eutelsat Communications SA | 138,506 | 4,599 |
Electricite de France SA | 231,733 | 4,343 |
Suez Environnement Co. | 339,673 | 4,096 |
Groupe Eurotunnel SA | 518,788 | 4,006 |
SCOR SE | 148,206 | 3,996 |
Societe BIC SA | 30,681 | 3,663 |
Zodiac Aerospace | 32,516 | 3,632 |
Thales SA | 103,640 | 3,578 |
Natixis | 1,004,763 | 3,476 |
CNP Assurances | 175,488 | 2,673 |
Imerys SA | 36,618 | 2,376 |
Remy Cointreau SA | 21,325 | 2,331 |
Aeroports de Paris | 26,681 | 2,060 |
Rexel SA | 97,984 | 2,002 |
* Peugeot SA | 248,352 | 1,841 |
JCDecaux SA | 49,267 | 1,189 |
1,233,344 | ||
Germany (8.7%) | ||
Siemens AG | 949,467 | 103,198 |
3
Vanguard® Tax-Managed International Fund | ||
Schedule of Investments | ||
December 31, 2012 | ||
Market | ||
Value | ||
Shares | ($000) | |
BASF SE | 1,059,183 | 99,554 |
Bayer AG | 965,285 | 91,666 |
SAP AG | 1,061,040 | 84,997 |
Allianz SE | 527,855 | 73,128 |
Daimler AG | 1,044,207 | 57,061 |
Deutsche Bank AG | 1,088,223 | 47,411 |
E.ON SE | 2,096,902 | 39,050 |
Muenchener Rueckversicherungs AG | 212,387 | 38,133 |
Linde AG | 217,200 | 37,878 |
Volkswagen AG Prior Pfd. | 163,468 | 37,190 |
Deutsche Telekom AG | 3,250,327 | 36,928 |
Bayerische Motoren Werke AG | 382,153 | 36,856 |
RWE AG | 572,969 | 23,654 |
Deutsche Post AG | 1,027,623 | 22,533 |
Adidas AG | 252,383 | 22,492 |
Fresenius Medical Care AG & Co. KGaA | 248,536 | 17,172 |
Fresenius SE & Co. KGaA | 148,358 | 17,075 |
Henkel AG & Co. KGaA Prior Pfd. | 196,612 | 16,146 |
Deutsche Boerse AG | 246,176 | 15,026 |
Porsche Automobil Holding SE Prior Pfd. | 180,184 | 14,683 |
Continental AG | 122,012 | 14,117 |
Henkel AG & Co. KGaA | 174,652 | 11,962 |
ThyssenKrupp AG | 457,756 | 10,756 |
Infineon Technologies AG | 1,249,340 | 10,138 |
Beiersdorf AG | 121,164 | 9,900 |
Merck KGaA | 70,434 | 9,293 |
HeidelbergCement AG | 152,336 | 9,229 |
Kabel Deutschland Holding AG | 114,432 | 8,557 |
K&S AG | 181,266 | 8,381 |
Volkswagen AG | 38,876 | 8,352 |
* Commerzbank AG | 4,147,267 | 7,892 |
Lanxess AG | 87,858 | 7,684 |
Brenntag AG | 53,139 | 6,981 |
GEA Group AG | 215,918 | 6,974 |
* QIAGEN NV | 297,209 | 5,390 |
Hannover Rueckversicherung AG | 64,620 | 5,030 |
MAN SE | 44,482 | 4,756 |
Metro AG | 150,070 | 4,160 |
Deutsche Lufthansa AG | 219,775 | 4,131 |
Bayerische Motoren Werke AG Prior Pfd. | 62,909 | 4,065 |
Fraport AG Frankfurt Airport Services Worldwide | 63,432 | 3,694 |
Hugo Boss AG | 24,601 | 2,609 |
ProSiebenSat.1 Media AG Prior Pfd. | 84,911 | 2,389 |
Salzgitter AG | 43,649 | 2,275 |
Celesio AG | 131,446 | 2,264 |
Suedzucker AG | 52,060 | 2,130 |
* Hochtief AG | 32,905 | 1,912 |
United Internet AG | 85,324 | 1,842 |
Axel Springer AG | 25,002 | 1,067 |
RWE AG Prior Pfd. | 22,605 | 853 |
1,110,614 | ||
Greece (0.1%) | ||
Coca Cola Hellenic Bottling Co. SA | 227,341 | 5,378 |
OPAP SA | 246,619 | 1,767 |
7,145 | ||
Hong Kong (3.2%) | ||
AIA Group Ltd. | 12,654,776 | 50,435 |
Sun Hung Kai Properties Ltd. | 1,899,768 | 28,674 |
Hutchison Whampoa Ltd. | 2,597,512 | 27,555 |
Cheung Kong Holdings Ltd. | 1,706,500 | 26,415 |
Hong Kong Exchanges and Clearing Ltd. | 1,271,177 | 21,899 |
Hong Kong & China Gas Co. Ltd. | 6,691,718 | 18,440 |
CLP Holdings Ltd. | 2,084,932 | 17,508 |
Wharf Holdings Ltd. | 1,919,815 | 15,190 |
4
Vanguard® Tax-Managed International Fund | |||
Schedule of Investments | |||
December 31, 2012 | |||
Market | |||
Value | |||
Shares | ($000) | ||
Power Assets Holdings Ltd. | 1,676,100 | 14,364 | |
Hang Seng Bank Ltd. | 862,643 | 13,326 | |
BOC Hong Kong Holdings Ltd. | 4,247,000 | 13,324 | |
Sands China Ltd. | 2,880,400 | 12,902 | |
Li & Fung Ltd. | 6,937,670 | 12,464 | |
Hang Lung Properties Ltd. | 2,876,810 | 11,535 | |
Swire Pacific Ltd. Class A | 910,588 | 11,316 | |
* | Galaxy Entertainment Group Ltd. | 2,488,037 | 9,924 |
Henderson Land Development Co. Ltd. | 1,296,506 | 9,236 | |
New World Development Co. Ltd. | 4,710,125 | 7,392 | |
Sino Land Co. Ltd. | 4,027,300 | 7,294 | |
Wheelock & Co. Ltd. | 1,226,000 | 6,239 | |
Kerry Properties Ltd. | 1,180,000 | 6,163 | |
Bank of East Asia Ltd. | 1,505,863 | 5,829 | |
SJM Holdings Ltd. | 2,372,000 | 5,582 | |
MTR Corp. Ltd. | 1,402,000 | 5,550 | |
Hysan Development Co. Ltd. | 1,091,000 | 5,276 | |
* | Wynn Macau Ltd. | 1,805,200 | 4,975 |
Shangri-La Asia Ltd. | 2,418,552 | 4,873 | |
Swire Properties Ltd. | 1,326,424 | 4,461 | |
First Pacific Co. Ltd. | 3,594,000 | 3,968 | |
Yue Yuen Industrial Holdings Ltd. | 836,500 | 2,824 | |
Cheung Kong Infrastructure Holdings Ltd. | 450,000 | 2,764 | |
Hopewell Holdings Ltd. | 637,000 | 2,754 | |
ASM Pacific Technology Ltd. | 185,400 | 2,276 | |
HKT Trust / HKT Ltd. | 2,277,095 | 2,235 | |
NWS Holdings Ltd. | 1,261,500 | 2,153 | |
Wing Hang Bank Ltd. | 199,775 | 2,103 | |
MGM China Holdings Ltd. | 1,132,000 | 2,080 | |
Cathay Pacific Airways Ltd. | 965,770 | 1,793 | |
Orient Overseas International Ltd. | 207,300 | 1,365 | |
PCCW Ltd. | 2,971,000 | 1,309 | |
* | Foxconn International Holdings Ltd. | 1 | — |
405,765 | |||
Ireland (0.3%) | |||
CRH plc | 819,011 | 16,995 | |
Kerry Group plc Class A | 169,430 | 8,994 | |
* | Elan Corp. plc | 593,056 | 6,125 |
Ryanair Holdings plc ADR | 24,300 | 833 | |
Ryanair Holdings plc | 68,719 | 428 | |
Prothena Corp. plc | 14,312 | 105 | |
* | Irish Bank Resolution Corp. Ltd. | 257,065 | — |
33,480 | |||
Israel (0.5%) | |||
Teva Pharmaceutical Industries Ltd. | 1,102,387 | 41,261 | |
Israel Chemicals Ltd. | 527,772 | 6,363 | |
* | Bank Hapoalim BM | 1,281,253 | 5,512 |
* | Bank Leumi Le-Israel BM | 1,221,674 | 4,177 |
* | Mellanox Technologies Ltd. | 44,333 | 2,669 |
Israel Corp. Ltd. | 3,212 | 2,109 | |
Bezeq The Israeli Telecommunication Corp. Ltd. | 1,746,417 | 2,017 | |
* | NICE Systems Ltd. | 52,352 | 1,754 |
Delek Group Ltd. | 5,807 | 1,368 | |
* | Mizrahi Tefahot Bank Ltd. | 109,213 | 1,128 |
68,358 | |||
Italy (2.3%) | |||
Eni SPA | 2,955,387 | 72,908 | |
Enel SPA | 7,534,153 | 31,345 | |
Assicurazioni Generali SPA | 1,364,302 | 24,886 | |
* | UniCredit SPA | 4,758,717 | 23,499 |
Intesa Sanpaolo SPA (Registered) | 11,689,470 | 20,223 | |
Saipem SPA | 301,611 | 11,702 | |
Tenaris SA | 545,627 | 11,374 |
5
Vanguard® Tax-Managed International Fund | ||
Schedule of Investments | ||
December 31, 2012 | ||
Market | ||
Value | ||
Shares | ($000) | |
Fiat Industrial SPA | 1,028,223 | 11,274 |
Telecom Italia SPA (Registered) | 11,767,918 | 10,637 |
Terna Rete Elettrica Nazionale SPA | 1,736,109 | 6,953 |
Snam SPA | 1,491,878 | 6,937 |
Luxottica Group SPA | 159,931 | 6,645 |
Atlantia SPA | 354,983 | 6,438 |
Telecom Italia SPA (Bearer) | 6,316,903 | 4,999 |
* Fiat SPA | 966,574 | 4,882 |
Unione di Banche Italiane SCPA | 983,177 | 4,586 |
Pirelli & C. SPA | 336,575 | 3,862 |
Prysmian SPA | 183,930 | 3,721 |
Mediobanca SPA | 595,307 | 3,688 |
Enel Green Power SPA | 1,918,423 | 3,588 |
Exor SPA | 136,192 | 3,432 |
* Banco Popolare SC | 1,696,294 | 2,839 |
* Finmeccanica SPA | 484,835 | 2,810 |
* Banca Monte dei Paschi di Siena SPA | 7,452,374 | 2,302 |
Intesa Sanpaolo SPA (Bearer) | 1,082,259 | 1,535 |
287,065 | ||
Japan (20.0%) | ||
Toyota Motor Corp. | 3,213,418 | 149,991 |
Mitsubishi UFJ Financial Group Inc. | 14,795,144 | 79,615 |
Honda Motor Co. Ltd. | 1,889,839 | 69,656 |
Sumitomo Mitsui Financial Group Inc. | 1,574,258 | 57,191 |
Canon Inc. | 1,313,233 | 51,508 |
Mizuho Financial Group Inc. | 26,481,861 | 48,452 |
Takeda Pharmaceutical Co. Ltd. | 944,894 | 42,227 |
FANUC Corp. | 223,200 | 41,507 |
Softbank Corp. | 1,089,700 | 39,874 |
Mitsubishi Estate Co. Ltd. | 1,491,935 | 35,667 |
Hitachi Ltd. | 5,414,758 | 31,867 |
Mitsubishi Corp. | 1,603,586 | 30,824 |
Mitsui & Co. Ltd. | 2,034,300 | 30,434 |
Japan Tobacco Inc. | 1,037,100 | 29,238 |
Shin-Etsu Chemical Co. Ltd. | 474,200 | 28,964 |
Komatsu Ltd. | 1,093,800 | 27,990 |
Nissan Motor Co. Ltd. | 2,846,800 | 27,020 |
East Japan Railway Co. | 409,900 | 26,503 |
Nomura Holdings Inc. | 4,275,277 | 25,242 |
NTT DOCOMO Inc. | 17,485 | 25,111 |
Mitsui Fudosan Co. Ltd. | 1,020,738 | 24,938 |
Seven & I Holdings Co. Ltd. | 856,720 | 24,112 |
Astellas Pharma Inc. | 533,714 | 23,975 |
KDDI Corp. | 325,700 | 23,006 |
Tokio Marine Holdings Inc. | 818,500 | 22,821 |
Nippon Telegraph & Telephone Corp. | 504,700 | 21,201 |
Nippon Steel & Sumitomo Metal Corp. | 8,541,580 | 21,010 |
Bridgestone Corp. | 756,331 | 19,605 |
ITOCHU Corp. | 1,845,100 | 19,477 |
Mitsubishi Electric Corp. | 2,270,000 | 19,321 |
Denso Corp. | 534,200 | 18,587 |
Toshiba Corp. | 4,638,000 | 18,340 |
Mitsubishi Heavy Industries Ltd. | 3,618,000 | 17,496 |
Sumitomo Corp. | 1,355,100 | 17,369 |
Kyocera Corp. | 183,600 | 16,649 |
Fast Retailing Co. Ltd. | 61,700 | 15,670 |
Kao Corp. | 598,001 | 15,581 |
Keyence Corp. | 56,418 | 15,571 |
Kubota Corp. | 1,334,000 | 15,322 |
Marubeni Corp. | 2,136,000 | 15,307 |
Panasonic Corp. | 2,509,153 | 15,246 |
Sumitomo Realty & Development Co. Ltd. | 453,000 | 15,052 |
Central Japan Railway Co. | 180,500 | 14,645 |
Murata Manufacturing Co. Ltd. | 243,200 | 14,344 |
6
Vanguard® Tax-Managed International Fund | ||
Schedule of Investments | ||
December 31, 2012 | ||
Market | ||
Value | ||
Shares | ($000) | |
Dai-ichi Life Insurance Co. Ltd. | 10,098 | 14,208 |
JX Holdings Inc. | 2,452,250 | 13,812 |
Inpex Corp. | 2,575 | 13,742 |
Tokyo Gas Co. Ltd. | 2,918,000 | 13,341 |
Eisai Co. Ltd. | 318,800 | 13,311 |
Sony Corp. | 1,187,500 | 13,287 |
Secom Co. Ltd. | 262,200 | 13,215 |
Sumitomo Mitsui Trust Holdings Inc. | 3,738,270 | 13,134 |
Kirin Holdings Co. Ltd. | 1,106,000 | 12,996 |
Daiichi Sankyo Co. Ltd. | 793,163 | 12,167 |
Nikon Corp. | 403,200 | 11,904 |
MS&AD Insurance Group Holdings | 585,833 | 11,704 |
SMC Corp. | 63,500 | 11,520 |
Daiwa Securities Group Inc. | 2,066,000 | 11,507 |
Toray Industries Inc. | 1,864,000 | 11,366 |
Suzuki Motor Corp. | 426,800 | 11,157 |
Daiwa House Industry Co. Ltd. | 640,000 | 11,012 |
Ajinomoto Co. Inc. | 814,500 | 10,777 |
FUJIFILM Holdings Corp. | 533,000 | 10,735 |
JFE Holdings Inc. | 565,700 | 10,665 |
Hoya Corp. | 539,600 | 10,624 |
Asahi Group Holdings Ltd. | 497,300 | 10,541 |
Resona Holdings Inc. | 2,236,936 | 10,142 |
Nitto Denko Corp. | 206,100 | 10,140 |
Chubu Electric Power Co. Inc. | 759,100 | 10,129 |
Odakyu Electric Railway Co. Ltd. | 936,000 | 9,737 |
Daikin Industries Ltd. | 280,800 | 9,648 |
Daito Trust Construction Co. Ltd. | 101,900 | 9,589 |
Sumitomo Electric Industries Ltd. | 806,200 | 9,330 |
Sumitomo Metal Mining Co. Ltd. | 653,000 | 9,215 |
Kansai Electric Power Co. Inc. | 869,550 | 9,136 |
Fujitsu Ltd. | 2,156,000 | 9,052 |
West Japan Railway Co. | 229,600 | 9,042 |
Tokyo Electron Ltd. | 196,400 | 9,037 |
Kintetsu Corp. | 2,207,190 | 9,029 |
NKSJ Holdings Inc. | 423,900 | 9,028 |
JGC Corp. | 287,000 | 8,941 |
Osaka Gas Co. Ltd. | 2,442,000 | 8,870 |
Asahi Kasei Corp. | 1,473,000 | 8,699 |
Asahi Glass Co. Ltd. | 1,188,035 | 8,631 |
Shizuoka Bank Ltd. | 852,000 | 8,321 |
Fuji Heavy Industries Ltd. | 655,000 | 8,247 |
Ricoh Co. Ltd. | 773,000 | 8,212 |
T&D Holdings Inc. | 665,530 | 8,111 |
Tokyu Corp. | 1,438,000 | 8,076 |
Mitsubishi Chemical Holdings Corp. | 1,614,000 | 8,051 |
Aeon Co. Ltd. | 696,473 | 7,961 |
Isuzu Motors Ltd. | 1,292,000 | 7,696 |
Nidec Corp. | 131,100 | 7,666 |
Sekisui House Ltd. | 698,859 | 7,650 |
Oriental Land Co. Ltd. | 63,100 | 7,625 |
Aisin Seiki Co. Ltd. | 237,800 | 7,416 |
Terumo Corp. | 185,700 | 7,378 |
Toyota Tsusho Corp. | 297,293 | 7,340 |
Yamato Holdings Co. Ltd. | 477,900 | 7,267 |
LIXIL Group Corp. | 324,012 | 7,215 |
Bank of Yokohama Ltd. | 1,499,000 | 6,958 |
Hankyu Hanshin Holdings Inc. | 1,321,000 | 6,820 |
Keio Corp. | 903,000 | 6,733 |
Shionogi & Co. Ltd. | 400,900 | 6,678 |
Tobu Railway Co. Ltd. | 1,254,000 | 6,636 |
Shiseido Co. Ltd. | 466,300 | 6,557 |
Rakuten Inc. | 828,300 | 6,460 |
Unicharm Corp. | 122,500 | 6,377 |
7
Vanguard® Tax-Managed International Fund | ||
Schedule of Investments | ||
December 31, 2012 | ||
Market | ||
Value | ||
Shares | ($000) | |
Chiba Bank Ltd. | 1,081,000 | 6,325 |
Kuraray Co. Ltd. | 476,000 | 6,232 |
Chugai Pharmaceutical Co. Ltd. | 322,800 | 6,186 |
Omron Corp. | 257,700 | 6,179 |
Makita Corp. | 129,600 | 6,028 |
* NEC Corp. | 2,857,400 | 6,017 |
Dentsu Inc. | 223,700 | 6,009 |
* Mazda Motor Corp. | 2,913,000 | 5,948 |
Yahoo Japan Corp. | 18,209 | 5,894 |
Sumitomo Chemical Co. Ltd. | 1,839,000 | 5,802 |
Kyushu Electric Power Co. Inc. | 503,100 | 5,743 |
Keikyu Corp. | 647,000 | 5,726 |
Credit Saison Co. Ltd. | 227,200 | 5,682 |
Dai Nippon Printing Co. Ltd. | 698,800 | 5,476 |
TDK Corp. | 148,500 | 5,400 |
Yakult Honsha Co. Ltd. | 122,800 | 5,381 |
Lawson Inc. | 78,090 | 5,308 |
Shimano Inc. | 82,700 | 5,273 |
NTT Data Corp. | 1,638 | 5,121 |
Sekisui Chemical Co. Ltd. | 591,000 | 5,118 |
* Olympus Corp. | 263,400 | 5,112 |
* Tohoku Electric Power Co. Inc. | 543,700 | 5,060 |
Toppan Printing Co. Ltd. | 801,000 | 4,935 |
Chugoku Electric Power Co. Inc. | 312,000 | 4,893 |
Kawasaki Heavy Industries Ltd. | 1,781,000 | 4,840 |
Mitsubishi Materials Corp. | 1,419,000 | 4,837 |
Hisamitsu Pharmaceutical Co. Inc. | 97,100 | 4,814 |
Konica Minolta Holdings Inc. | 659,000 | 4,748 |
Joyo Bank Ltd. | 1,004,000 | 4,745 |
Nippon Express Co. Ltd. | 1,144,000 | 4,725 |
* Mitsubishi Motors Corp. | 4,565,000 | 4,719 |
JSR Corp. | 245,600 | 4,640 |
Obayashi Corp. | 820,000 | 4,616 |
Tokyu Land Corp. | 631,000 | 4,613 |
Sega Sammy Holdings Inc. | 270,888 | 4,575 |
Sysmex Corp. | 93,600 | 4,288 |
Dena Co. Ltd. | 129,500 | 4,258 |
Taisei Corp. | 1,286,000 | 4,251 |
Bank of Kyoto Ltd. | 499,000 | 4,198 |
NGK Insulators Ltd. | 356,000 | 4,187 |
Suruga Bank Ltd. | 340,000 | 4,176 |
IHI Corp. | 1,618,000 | 4,159 |
Mitsubishi UFJ Lease & Finance Co. Ltd. | 95,760 | 4,119 |
Sharp Corp. | 1,157,000 | 4,057 |
Mitsubishi Tanabe Pharma Corp. | 309,850 | 4,040 |
Nippon Yusen KK | 1,714,000 | 4,034 |
Trend Micro Inc. | 132,000 | 3,984 |
Kyowa Hakko Kirin Co. Ltd. | 402,000 | 3,970 |
Mitsui OSK Lines Ltd. | 1,324,000 | 3,946 |
Daihatsu Motor Co. Ltd. | 199,000 | 3,936 |
NSK Ltd. | 549,000 | 3,912 |
Hachijuni Bank Ltd. | 774,600 | 3,888 |
Yamada Denki Co. Ltd. | 99,710 | 3,845 |
Keisei Electric Railway Co. Ltd. | 452,000 | 3,815 |
Oji Holdings Corp. | 1,104,000 | 3,813 |
* Tokyo Electric Power Co. Inc. | 1,583,370 | 3,795 |
* Kobe Steel Ltd. | 2,967,000 | 3,789 |
Sony Financial Holdings Inc. | 209,900 | 3,776 |
Kajima Corp. | 1,142,000 | 3,772 |
Electric Power Development Co. Ltd. | 158,540 | 3,758 |
Toho Co. Ltd. | 209,900 | 3,697 |
Benesse Holdings Inc. | 88,600 | 3,672 |
MEIJI Holdings Co. Ltd. | 84,254 | 3,652 |
Yamaha Motor Co. Ltd. | 329,100 | 3,648 |
8
Vanguard® Tax-Managed International Fund | ||
Schedule of Investments | ||
December 31, 2012 | ||
Market | ||
Value | ||
Shares | ($000) | |
Nissin Foods Holdings Co. Ltd. | 95,400 | 3,617 |
Namco Bandai Holdings Inc. | 270,200 | 3,504 |
Fukuoka Financial Group Inc. | 844,800 | 3,381 |
TonenGeneral Sekiyu KK | 389,000 | 3,352 |
Mitsubishi Gas Chemical Co. Inc. | 547,000 | 3,352 |
Jupiter Telecommunications Co. Ltd. | 2,685 | 3,335 |
Kurita Water Industries Ltd. | 151,100 | 3,320 |
Santen Pharmaceutical Co. Ltd. | 86,100 | 3,296 |
Shinsei Bank Ltd. | 1,641,014 | 3,286 |
Rohm Co. Ltd. | 101,100 | 3,284 |
Kikkoman Corp. | 228,000 | 3,257 |
Yokogawa Electric Corp. | 292,200 | 3,179 |
Shikoku Electric Power Co. Inc. | 198,700 | 3,169 |
Nitori Holdings Co. Ltd. | 42,300 | 3,097 |
Sumitomo Heavy Industries Ltd. | 639,000 | 3,052 |
Aeon Mall Co. Ltd. | 124,000 | 3,031 |
Gunma Bank Ltd. | 618,000 | 3,007 |
Takashimaya Co. Ltd. | 421,860 | 3,007 |
Dainippon Sumitomo Pharma Co. Ltd. | 249,700 | 3,000 |
Chiyoda Corp. | 207,809 | 2,976 |
Teijin Ltd. | 1,206,000 | 2,974 |
THK Co. Ltd. | 164,900 | 2,963 |
TOTO Ltd. | 392,000 | 2,945 |
Taiheiyo Cement Corp. | 1,069,000 | 2,942 |
* Japan Airlines Co. Ltd. | 68,114 | 2,915 |
Mitsui Chemicals Inc. | 1,115,000 | 2,912 |
Advantest Corp. | 183,600 | 2,898 |
SBI Holdings Inc. | 322,290 | 2,877 |
Showa Denko KK | 1,879,000 | 2,873 |
Isetan Mitsukoshi Holdings Ltd. | 294,840 | 2,870 |
Shimizu Corp. | 761,000 | 2,862 |
Yamaha Corp. | 269,300 | 2,852 |
Nishi-Nippon City Bank Ltd. | 1,156,000 | 2,848 |
Japan Steel Works Ltd. | 438,513 | 2,841 |
Toyo Seikan Kaisha Ltd. | 210,500 | 2,836 |
Nisshin Seifun Group Inc. | 225,400 | 2,820 |
Konami Corp. | 124,500 | 2,799 |
Toyo Suisan Kaisha Ltd. | 104,000 | 2,772 |
Mitsubishi Logistics Corp. | 193,000 | 2,768 |
Tsumura & Co. | 91,800 | 2,767 |
Sankyo Co. Ltd. | 69,900 | 2,766 |
Amada Co. Ltd. | 421,000 | 2,739 |
Casio Computer Co. Ltd. | 309,100 | 2,711 |
JTEKT Corp. | 283,600 | 2,705 |
Hokkaido Electric Power Co. Inc. | 220,900 | 2,682 |
Chugoku Bank Ltd. | 192,000 | 2,680 |
Stanley Electric Co. Ltd. | 186,800 | 2,659 |
Nippon Meat Packers Inc. | 193,000 | 2,657 |
Nippon Electric Glass Co. Ltd. | 465,500 | 2,645 |
Ube Industries Ltd. | 1,096,000 | 2,636 |
All Nippon Airways Co. Ltd. | 1,254,317 | 2,630 |
Hamamatsu Photonics KK | 72,200 | 2,605 |
Marui Group Co. Ltd. | 320,800 | 2,567 |
NGK Spark Plug Co. Ltd. | 188,000 | 2,498 |
Miraca Holdings Inc. | 61,500 | 2,476 |
Nabtesco Corp. | 110,900 | 2,454 |
Brother Industries Ltd. | 223,800 | 2,415 |
Sumitomo Rubber Industries Ltd. | 199,800 | 2,414 |
Shimadzu Corp. | 357,000 | 2,408 |
Nomura Real Estate Holdings Inc. | 125,671 | 2,397 |
FamilyMart Co. Ltd. | 58,000 | 2,388 |
Ibiden Co. Ltd. | 147,500 | 2,354 |
Asics Corp. | 152,996 | 2,331 |
Hino Motors Ltd. | 259,000 | 2,323 |
9
Vanguard® Tax-Managed International Fund | ||
Schedule of Investments | ||
December 31, 2012 | ||
Market | ||
Value | ||
Shares | ($000) | |
McDonald's Holdings Co. Japan Ltd. | 86,700 | 2,287 |
Iyo Bank Ltd. | 288,000 | 2,273 |
Toyoda Gosei Co. Ltd. | 110,700 | 2,252 |
NOK Corp. | 145,100 | 2,248 |
Kansai Paint Co. Ltd. | 206,000 | 2,219 |
Aeon Credit Service Co. Ltd. | 108,510 | 2,191 |
NHK Spring Co. Ltd. | 263,800 | 2,174 |
J Front Retailing Co. Ltd. | 386,200 | 2,129 |
Hitachi Construction Machinery Co. Ltd. | 101,200 | 2,124 |
Otsuka Corp. | 28,060 | 2,123 |
* Furukawa Electric Co. Ltd. | 941,000 | 2,114 |
USS Co. Ltd. | 20,360 | 2,110 |
Yamaguchi Financial Group Inc. | 238,000 | 2,103 |
Toho Gas Co. Ltd. | 390,000 | 2,093 |
Kamigumi Co. Ltd. | 262,000 | 2,080 |
Citizen Holdings Co. Ltd. | 392,100 | 2,073 |
Daicel Corp. | 312,000 | 2,064 |
Aozora Bank Ltd. | 671,000 | 2,062 |
Hokuriku Electric Power Co. | 172,100 | 2,035 |
Rinnai Corp. | 29,800 | 2,025 |
Fuji Electric Co. Ltd. | 809,000 | 1,996 |
Nomura Research Institute Ltd. | 96,300 | 1,993 |
Idemitsu Kosan Co. Ltd. | 22,709 | 1,978 |
Calbee Inc. | 27,949 | 1,967 |
Suzuken Co. Ltd. | 69,660 | 1,963 |
Yaskawa Electric Corp. | 199,000 | 1,919 |
* Acom Co. Ltd. | 64,990 | 1,869 |
ABC-Mart Inc. | 42,700 | 1,856 |
Park24 Co. Ltd. | 117,200 | 1,848 |
Coca-Cola West Co. Ltd. | 120,000 | 1,848 |
Gree Inc. | 117,100 | 1,816 |
Nippon Paper Group Inc. | 123,800 | 1,721 |
Koito Manufacturing Co. Ltd. | 110,712 | 1,614 |
Shimamura Co. Ltd. | 16,600 | 1,608 |
MediPal Holdings Corp. | 139,800 | 1,540 |
Alfresa Holdings Corp. | 39,200 | 1,532 |
Kaneka Corp. | 303,000 | 1,524 |
Cosmo Oil Co. Ltd. | 681,000 | 1,511 |
Hitachi Metals Ltd. | 178,000 | 1,505 |
Yamazaki Baking Co. Ltd. | 134,000 | 1,492 |
Don Quijote Co. Ltd. | 40,400 | 1,480 |
Showa Shell Sekiyu KK | 260,300 | 1,478 |
Air Water Inc. | 115,805 | 1,474 |
Oracle Corp. Japan | 35,100 | 1,463 |
* Sumco Corp. | 145,660 | 1,417 |
Taiyo Nippon Sanso Corp. | 238,000 | 1,360 |
Hiroshima Bank Ltd. | 314,000 | 1,316 |
Hakuhodo DY Holdings Inc. | 19,210 | 1,243 |
Hitachi High-Technologies Corp. | 59,651 | 1,234 |
Sanrio Co. Ltd. | 38,700 | 1,232 |
* Nexon Co. Ltd. | 118,200 | 1,193 |
Denki Kagaku Kogyo KK | 343,000 | 1,174 |
Sojitz Corp. | 782,500 | 1,158 |
Itochu Techno-Solutions Corp. | 27,100 | 1,117 |
Yamato Kogyo Co. Ltd. | 36,700 | 1,074 |
GS Yuasa Corp. | 264,000 | 1,063 |
Toyota Boshoku Corp. | 83,400 | 967 |
Hitachi Chemical Co. Ltd. | 60,900 | 908 |
Daido Steel Co. Ltd. | 180,000 | 904 |
Square Enix Holdings Co. Ltd. | 70,600 | 892 |
M3 Inc. | 513 | 815 |
Ushio Inc. | 64,800 | 708 |
Nintendo Co. Ltd. | 1,000 | 107 |
2,542,884 |
10
Vanguard® Tax-Managed International Fund | |||
Schedule of Investments | |||
December 31, 2012 | |||
Market | |||
Value | |||
Shares | ($000) | ||
Netherlands (2.5%) | |||
Unilever NV | 1,901,890 | 71,766 | |
* | ING Groep NV | 4,492,739 | 42,963 |
Koninklijke Philips Electronics NV | 1,231,382 | 33,036 | |
ASML Holding NV | 366,285 | 23,713 | |
Heineken NV | 275,176 | 18,355 | |
Akzo Nobel NV | 275,145 | 18,156 | |
Koninklijke Ahold NV | 1,113,793 | 14,794 | |
Aegon NV | 2,076,067 | 13,230 | |
Koninklijke DSM NV | 186,110 | 11,210 | |
Reed Elsevier NV | 617,440 | 9,148 | |
* | DE Master Blenders 1753 NV | 716,601 | 8,336 |
Wolters Kluwer NV | 388,555 | 8,035 | |
Koninklijke Vopak NV | 104,234 | 7,349 | |
Corio NV | 152,782 | 6,951 | |
Heineken Holding NV | 116,964 | 6,407 | |
Koninklijke KPN NV | 1,182,570 | 5,848 | |
Randstad Holding NV | 140,658 | 5,192 | |
Fugro NV | 82,516 | 4,834 | |
Ziggo NV | 110,931 | 3,585 | |
TNT Express NV | 297,979 | 3,371 | |
Koninklijke Boskalis Westminster NV | 61,741 | 2,815 | |
Delta Lloyd NV | 165,757 | 2,759 | |
321,853 | |||
New Zealand (0.1%) | |||
Fletcher Building Ltd. | 796,963 | 5,577 | |
Telecom Corp. of New Zealand Ltd. | 2,539,171 | 4,802 | |
SKYCITY Entertainment Group Ltd. | 1,056,195 | 3,316 | |
Auckland International Airport Ltd. | 687,559 | 1,521 | |
Contact Energy Ltd. | 224,755 | 970 | |
16,186 | |||
Norway (0.9%) | |||
Statoil ASA | 1,325,676 | 33,267 | |
Telenor ASA | 858,127 | 17,434 | |
Seadrill Ltd. | 424,981 | 15,662 | |
DNB ASA | 973,239 | 12,406 | |
Yara International ASA | 229,846 | 11,409 | |
Orkla ASA | 1,074,877 | 9,410 | |
Subsea 7 SA | 272,993 | 6,529 | |
Norsk Hydro ASA | 1,196,629 | 6,096 | |
Aker Solutions ASA | 180,631 | 3,717 | |
Gjensidige Forsikring ASA | 135,204 | 1,946 | |
117,876 | |||
Portugal (0.2%) | |||
EDP - Energias de Portugal SA | 2,151,186 | 6,466 | |
Portugal Telecom SGPS SA | 915,283 | 4,579 | |
Jeronimo Martins SGPS SA | 210,361 | 4,059 | |
Galp Energia SGPS SA | 227,253 | 3,530 | |
* | Banco Espirito Santo SA | 2,495,591 | 3,013 |
21,647 | |||
Singapore (1.8%) | |||
DBS Group Holdings Ltd. | 2,298,123 | 28,132 | |
Singapore Telecommunications Ltd. | 9,440,290 | 25,673 | |
Oversea-Chinese Banking Corp. Ltd. | 3,171,300 | 25,515 | |
United Overseas Bank Ltd. | 1,514,504 | 24,805 | |
Keppel Corp. Ltd. | 1,484,904 | 13,493 | |
CapitaLand Ltd. | 3,488,000 | 10,701 | |
Genting Singapore plc | 7,627,000 | 8,727 | |
Fraser and Neave Ltd. | 1,021,650 | 8,132 | |
Singapore Press Holdings Ltd. | 2,345,250 | 7,759 | |
Singapore Airlines Ltd. | 800,502 | 7,080 | |
Singapore Exchange Ltd. | 1,195,000 | 6,928 | |
Global Logistic Properties Ltd. | 2,808,400 | 6,458 | |
City Developments Ltd. | 547,000 | 5,835 |
11
Vanguard® Tax-Managed International Fund | ||
Schedule of Investments | ||
December 31, 2012 | ||
Market | ||
Value | ||
Shares | ($000) | |
Wilmar International Ltd. | 1,949,000 | 5,387 |
Hutchison Port Holdings Trust | 6,196,251 | 4,933 |
Golden Agri-Resources Ltd. | 9,067,020 | 4,881 |
Noble Group Ltd. | 5,053,766 | 4,873 |
Singapore Technologies Engineering Ltd. | 1,533,906 | 4,842 |
Jardine Cycle & Carriage Ltd. | 113,037 | 4,497 |
SembCorp Industries Ltd. | 992,660 | 4,325 |
ComfortDelGro Corp. Ltd. | 2,938,184 | 4,306 |
SembCorp Marine Ltd. | 922,600 | 3,512 |
Olam International Ltd. | 2,341,800 | 3,002 |
Keppel Land Ltd. | 865,000 | 2,891 |
UOL Group Ltd. | 536,750 | 2,650 |
StarHub Ltd. | 569,000 | 1,777 |
Yangzijiang Shipbuilding Holdings Ltd. | 1,770,000 | 1,402 |
Olam International Rights 01/15/2013 | 758,962 | 59 |
232,575 | ||
Spain (3.0%) | ||
* Banco Santander SA | 11,920,703 | 96,118 |
Telefonica SA | 4,668,193 | 63,388 |
Banco Bilbao Vizcaya Argentaria SA | 6,224,930 | 57,147 |
Inditex SA | 249,406 | 34,941 |
Iberdrola SA | 4,429,127 | 24,699 |
Repsol SA | 955,245 | 19,618 |
Amadeus IT Holding SA | 344,392 | 8,642 |
* Banco de Sabadell SA | 3,148,842 | 8,344 |
Abertis Infraestructuras SA | 461,658 | 7,694 |
Gas Natural SDG SA | 420,415 | 7,688 |
Ferrovial SA | 486,772 | 7,177 |
Red Electrica Corp. SA | 135,066 | 6,673 |
* Grifols SA | 169,031 | 5,947 |
Distribuidora Internacional de Alimentacion SA | 783,121 | 5,032 |
Banco Popular Espanol SA | 6,239,731 | 4,809 |
ACS Actividades de Construccion y Servicios SA | 162,248 | 4,152 |
Enagas SA | 179,948 | 3,851 |
* International Consolidated Airlines Group SA | 1,264,520 | 3,737 |
CaixaBank | 1,021,638 | 3,572 |
Mapfre SA | 922,443 | 2,847 |
Acciona SA | 29,765 | 2,257 |
Zardoya Otis SA | 104,251 | 1,503 |
* Bankia SA | 1,181,836 | 604 |
* Repsol SA Rights Exp. 1/10/2013 | 14,860 | 9 |
380,449 | ||
Sweden (3.1%) | ||
Hennes & Mauritz AB Class B | 1,101,416 | 38,273 |
Telefonaktiebolaget LM Ericsson Class B | 3,497,802 | 35,182 |
Nordea Bank AB | 3,293,871 | 31,546 |
Volvo AB Class B | 1,710,363 | 23,585 |
Atlas Copco AB Class A | 826,501 | 22,880 |
Svenska Handelsbanken AB Class A | 635,003 | 22,752 |
Sandvik AB | 1,212,838 | 19,493 |
Swedbank AB Class A | 972,352 | 19,134 |
TeliaSonera AB | 2,733,835 | 18,622 |
Svenska Cellulosa AB Class B | 606,253 | 13,271 |
Skandinaviska Enskilda Banken AB Class A | 1,554,885 | 13,259 |
Assa Abloy AB Class B | 343,058 | 12,918 |
SKF AB | 493,883 | 12,498 |
Atlas Copco AB Class B | 441,806 | 10,839 |
Getinge AB | 268,675 | 9,102 |
Alfa Laval AB | 426,677 | 8,943 |
Electrolux AB Class B | 321,387 | 8,441 |
Hexagon AB Class B | 318,785 | 8,013 |
Swedish Match AB | 235,348 | 7,927 |
Skanska AB Class B | 447,639 | 7,365 |
Tele2 AB | 404,798 | 7,342 |
12
Vanguard® Tax-Managed International Fund | ||
Schedule of Investments | ||
December 31, 2012 | ||
Market | ||
Value | ||
Shares | ($000) | |
Scania AB Class B | 352,395 | 7,329 |
Millicom International Cellular SA | 81,306 | 7,067 |
Investment AB Kinnevik | 327,535 | 6,844 |
Elekta AB Class B | 371,124 | 5,853 |
* Lundin Petroleum AB | 252,724 | 5,831 |
Boliden AB | 277,565 | 5,276 |
Securitas AB Class B | 451,558 | 3,967 |
Ratos AB | 278,689 | 2,684 |
Husqvarna AB | 432,838 | 2,624 |
398,860 | ||
Switzerland (8.7%) | ||
Nestle SA | 3,732,276 | 243,248 |
Novartis AG | 2,669,523 | 169,012 |
Roche Holding AG | 817,830 | 166,612 |
UBS AG | 4,252,467 | 66,875 |
ABB Ltd. | 2,510,247 | 52,122 |
Cie Financiere Richemont SA | 599,436 | 47,933 |
Zurich Insurance Group AG | 172,515 | 46,129 |
Syngenta AG | 109,154 | 44,031 |
Credit Suisse Group AG | 1,400,161 | 35,132 |
Swiss Re AG | 427,858 | 31,227 |
Holcim Ltd. | 274,152 | 20,192 |
Transocean Ltd. | 411,403 | 18,382 |
Swatch Group AG (Bearer) | 34,019 | 17,507 |
SGS SA | 5,670 | 12,596 |
Swisscom AG | 28,580 | 12,326 |
Givaudan SA | 9,745 | 10,331 |
Julius Baer Group Ltd. | 268,003 | 9,642 |
Geberit AG | 43,338 | 9,594 |
Adecco SA | 150,594 | 7,982 |
Kuehne & Nagel International AG | 61,781 | 7,519 |
Schindler Holding AG | 49,469 | 7,145 |
Actelion Ltd. | 143,633 | 6,899 |
Sonova Holding AG | 59,021 | 6,539 |
Aryzta AG | 120,752 | 6,196 |
Swatch Group AG (Registered) | 65,476 | 5,718 |
Sika AG | 2,379 | 5,514 |
Swiss Life Holding AG | 37,470 | 5,001 |
Baloise Holding AG | 51,619 | 4,505 |
Lindt & Spruengli AG Regular | 115 | 4,340 |
Schindler Holding AG (Registered) | 27,888 | 3,953 |
Sulzer AG | 23,852 | 3,780 |
Partners Group Holding AG | 15,433 | 3,565 |
Lonza Group AG | 58,442 | 3,161 |
Lindt & Spruengli AG | 952 | 3,105 |
Banque Cantonale Vaudoise | 4,282 | 2,273 |
Barry Callebaut AG | 1,993 | 1,924 |
EMS-Chemie Holding AG | 7,130 | 1,682 |
1,103,692 | ||
United Kingdom (22.6%) | ||
HSBC Holdings plc | 21,120,203 | 223,386 |
BP plc | 22,025,691 | 152,612 |
Royal Dutch Shell plc Class A | 4,210,234 | 148,767 |
Vodafone Group plc | 56,960,947 | 143,250 |
GlaxoSmithKline plc | 5,771,946 | 125,319 |
British American Tobacco plc | 2,237,667 | 113,383 |
Royal Dutch Shell plc Class B | 3,100,966 | 109,751 |
Rio Tinto plc | 1,544,621 | 90,009 |
BHP Billiton plc | 2,430,065 | 85,392 |
Diageo plc | 2,930,892 | 85,326 |
Standard Chartered plc | 2,765,752 | 70,108 |
AstraZeneca plc | 1,448,593 | 68,483 |
BG Group plc | 3,942,138 | 66,103 |
Barclays plc | 13,510,287 | 58,343 |
13
Vanguard® Tax-Managed International Fund | ||
Schedule of Investments | ||
December 31, 2012 | ||
Market | ||
Value | ||
Shares | ($000) | |
Unilever plc | 1,494,705 | 56,736 |
SABMiller plc | 1,109,761 | 52,235 |
Anglo American plc London Shares | 1,594,309 | 50,893 |
Tesco plc | 9,153,894 | 50,285 |
National Grid plc | 4,198,748 | 48,094 |
Reckitt Benckiser Group plc | 749,183 | 46,932 |
Imperial Tobacco Group plc | 1,143,130 | 44,142 |
Xstrata plc | 2,398,815 | 42,666 |
Prudential plc | 3,025,582 | 42,217 |
* Lloyds Banking Group plc | 49,247,329 | 39,461 |
BT Group plc | 9,077,513 | 34,218 |
Centrica plc | 5,901,748 | 32,061 |
Rolls-Royce Holdings plc | 2,176,073 | 31,354 |
SSE plc | 1,099,896 | 25,420 |
Compass Group plc | 2,001,754 | 23,674 |
Glencore International plc | 4,015,494 | 23,401 |
Tullow Oil plc | 1,072,610 | 21,843 |
WPP plc | 1,482,563 | 21,553 |
BAE Systems plc | 3,718,311 | 20,428 |
Shire plc | 649,197 | 19,939 |
Aviva plc | 3,297,216 | 19,905 |
ARM Holdings plc | 1,523,786 | 19,485 |
Experian plc | 1,161,518 | 18,767 |
Pearson plc | 955,080 | 18,671 |
Land Securities Group plc | 1,312,225 | 17,741 |
Old Mutual plc | 5,851,011 | 17,379 |
Legal & General Group plc | 6,947,389 | 16,773 |
British Sky Broadcasting Group plc | 1,283,680 | 16,036 |
Reed Elsevier plc | 1,451,773 | 15,244 |
Wolseley plc | 317,880 | 15,109 |
Standard Life plc | 2,816,036 | 15,041 |
British Land Co. plc | 1,477,704 | 13,738 |
Hammerson plc | 1,643,569 | 13,243 |
Kingfisher plc | 2,703,191 | 12,486 |
* Royal Bank of Scotland Group | 2,288,719 | 12,327 |
Next plc | 192,160 | 11,860 |
Marks & Spencer Group plc | 1,877,112 | 11,703 |
Smith & Nephew plc | 985,844 | 10,910 |
Burberry Group plc | 522,984 | 10,708 |
Antofagasta plc | 472,409 | 10,497 |
Associated British Foods plc | 411,851 | 10,483 |
WM Morrison Supermarkets plc | 2,372,836 | 10,149 |
Intertek Group plc | 192,586 | 9,719 |
Capita plc | 776,733 | 9,618 |
Johnson Matthey plc | 247,900 | 9,521 |
Aggreko plc | 324,083 | 9,294 |
Smiths Group plc | 468,460 | 9,221 |
United Utilities Group plc | 812,756 | 8,919 |
Randgold Resources Ltd. | 89,291 | 8,800 |
Carnival plc | 226,742 | 8,765 |
Rexam plc | 1,194,400 | 8,393 |
InterContinental Hotels Group plc | 291,789 | 8,206 |
Petrofac Ltd. | 299,549 | 8,116 |
J Sainsbury plc | 1,408,007 | 7,922 |
Capital Shopping Centres Group plc | 1,388,720 | 7,814 |
ITV plc | 4,427,960 | 7,596 |
Sage Group plc | 1,534,210 | 7,350 |
Severn Trent plc | 285,356 | 7,311 |
Whitbread plc | 179,878 | 7,171 |
G4S plc | 1,709,329 | 7,138 |
Fresnillo plc | 223,280 | 6,928 |
RSA Insurance Group plc | 3,432,603 | 6,928 |
Bunzl plc | 412,852 | 6,741 |
Resolution Ltd. | 1,634,516 | 6,525 |
14
Vanguard® Tax-Managed International Fund | ||
Schedule of Investments | ||
December 31, 2012 | ||
Market | ||
Value | ||
Shares | ($000) | |
AMEC plc | 383,349 | 6,272 |
Croda International plc | 158,019 | 6,122 |
Segro plc | 1,480,717 | 6,072 |
GKN plc | 1,592,487 | 5,942 |
Weir Group plc | 188,865 | 5,862 |
Babcock International Group plc | 374,109 | 5,806 |
Aberdeen Asset Management plc | 953,720 | 5,655 |
IMI plc | 310,613 | 5,525 |
Tate & Lyle plc | 440,212 | 5,459 |
Invensys plc | 916,458 | 4,979 |
Admiral Group plc | 256,260 | 4,907 |
Melrose Industries plc | 1,216,180 | 4,531 |
Serco Group plc | 522,727 | 4,500 |
Schroders plc (Voting Shares) | 152,387 | 4,281 |
Inmarsat plc | 432,909 | 4,179 |
Investec plc | 606,780 | 4,133 |
Meggitt plc | 655,313 | 4,085 |
ICAP plc | 693,340 | 3,547 |
London Stock Exchange Group plc | 201,455 | 3,519 |
Cobham plc | 966,823 | 3,516 |
Balfour Beatty plc | 769,869 | 3,440 |
Hargreaves Lansdown plc | 260,039 | 2,890 |
Vedanta Resources plc | 144,340 | 2,821 |
TUI Travel plc | 541,232 | 2,519 |
Kazakhmys plc | 169,515 | 2,229 |
Eurasian Natural Resources Corp. plc | 294,198 | 1,415 |
Evraz plc | 299,933 | 1,324 |
Royal Dutch Shell plc Class A (Amsterdam Shares) | 8,969 | 308 |
2,879,873 | ||
Total Investments (100.0%) (Cost $12,213,137) | 12,730,616 | |
Other Assets and Liabilities—Net (0.0%) | 5,370 | |
Net Assets (100%) | 12,735,986 |
Securities with a market value of less than $500 are displayed with a dash.
* Non-income-producing security.
ADR—American Depositary Receipt.
15
Report of Independent Registered Public Accounting Firm
To the Trustees of Vanguard Tax-Managed Funds and the Shareholders of Vanguard Tax-Managed International Fund:
We have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States), the financial statements (not presented herein) of Vanguard Tax-Managed International Fund (the “Fund”) as of December 31, 2012 and for the year then ended and have issued our unqualified report thereon dated February 14, 2013. Our audit included an audit of the Fund’s schedule of investments as of December 31, 2012. This schedule of investments is the responsibility of the Fund’s management. Our responsibility is to express an opinion on this schedule of investments based on our audit.
In our opinion, the accompanying schedule of investments referred to above, when read in conjunction with the financial statements of the Fund referred to above, presents fairly, in all material respects, the information set forth therein.
PricewaterhouseCoopers LLP
Philadelphia, Pennsylvania
February 14, 2013
© 2012 The Vanguard Group. Inc.
All rights reserved.
Vanguard Marketing Corporation, Distributor.
SNA1270 022013
Item 2: Code of Ethics. The Registrant has adopted a code of ethics that applies to the Registrant’s principal executive officer, principal financial officer, principal accounting officer or controller or persons performing similar functions. The Code of Ethics was amended during the reporting period covered by this report to make certain technical, non-material changes.
Item 3: Audit Committee Financial Expert. The following members of the Audit Committee have been determined by the Registrant’s Board of Trustees to be Audit Committee Financial Experts serving on its Audit Committee, and to be independent: Rajiv L. Gupta, Amy Gutmann, JoAnn Heffernan Heisen, F. Joseph Loughrey, Mark Loughridge, Scott C. Malpass, André F. Perold, and Alfred M. Rankin, Jr.
Item 4: Principal Accountant Fees and Services.
(a) Audit Fees.
Audit Fees of the Registrant
Fiscal Year Ended December 31, 2012: $147,000
Fiscal Year Ended December 31, 2011: $147,000
Aggregate Audit Fees of Registered Investment Companies in the Vanguard Group.
Fiscal Year Ended December 31, 2012: $4,809,780
Fiscal Year Ended December 31, 2011: $3,978,540
(b) Audit-Related Fees.
Fiscal Year Ended December 31, 2012: $1,812,565
Fiscal Year Ended December 31, 2011: $1,341,750
Includes fees billed in connection with assurance and related services provided to the Registrant, The Vanguard Group, Inc., Vanguard Marketing Corporation, and other registered investment companies in the Vanguard Group.
(c) Tax Fees.
Fiscal Year Ended December 31, 2012: $490,518
Fiscal Year Ended December 31, 2011: $373,830
Includes fees billed in connection with tax compliance, planning and advice services provided to the Registrant, The Vanguard Group, Inc., Vanguard Marketing Corporation, and other registered investment companies in the Vanguard Group and related to income and excise taxes.
(d) All Other Fees.
Fiscal Year Ended December 31, 2012: $16,000
Fiscal Year Ended December 31, 2011: $16,000
Includes fees billed for services related to risk management and privacy matters. Services were provided to the Registrant, The Vanguard Group, Inc., Vanguard Marketing Corporation, and other registered investment companies in the Vanguard Group.
(e) (1) Pre-Approval Policies. The policy of the Registrant’s Audit Committee is to consider and, if appropriate, approve before the principal accountant is engaged for such services, all specific audit and non-audit services provided to: (1) the Registrant; (2) The Vanguard Group, Inc.; (3) other entities
controlled by The Vanguard Group, Inc. that provide ongoing services to the Registrant; and (4) other registered investment companies in the Vanguard Group. In making a determination, the Audit Committee considers whether the services are consistent with maintaining the principal accountant’s independence.
In the event of a contingency situation in which the principal accountant is needed to provide services in between scheduled Audit Committee meetings, the Chairman of the Audit Committee would be called on to consider and, if appropriate, pre-approve audit or permitted non-audit services in an amount sufficient to complete services through the next Audit Committee meeting, and to determine if such services would be consistent with maintaining the accountant’s independence. At the next scheduled Audit Committee meeting, services and fees would be presented to the Audit Committee for formal consideration, and, if appropriate, approval by the entire Audit Committee. The Audit Committee would again consider whether such services and fees are consistent with maintaining the principal accountant’s independence.
The Registrant’s Audit Committee is informed at least annually of all audit and non-audit services provided by the principal accountant to the Vanguard complex, whether such services are provided to: (1) the Registrant; (2) The Vanguard Group, Inc.; (3) other entities controlled by The Vanguard Group, Inc. that provide ongoing services to the Registrant; or (4) other registered investment companies in the Vanguard Group.
(2) No percentage of the principal accountant’s fees or services were approved pursuant to the waiver provision of paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X.
(f) For the most recent fiscal year, over 50% of the hours worked under the principal accountant’s engagement were not performed by persons other than full-time, permanent employees of the principal accountant.
(g) Aggregate Non-Audit Fees.
Fiscal Year Ended December 31, 2012: $506,518
Fiscal Year Ended December 31, 2011: $389,830
Includes fees billed for non-audit services provided to the Registrant, The Vanguard Group, Inc., Vanguard Marketing Corporation, and other registered investment companies in the Vanguard Group.
(h) For the most recent fiscal year, the Audit Committee has determined that the provision of all non-audit services was consistent with maintaining the principal accountant’s independence.
Item 5: Audit Committee of Listed Registrants.
The Registrant is a listed issuer as defined in rule 10A-3 under the Securities Exchange Act of 1934 (“Exchange Act”). The Registrant has a separately-designated standing audit committee established in accordance with Section 3(a)(58)(A) of the Exchange Act. The Registrant’s audit committee members are: Emerson U. Fullwood, Rajiv L. Gupta, Amy Gutmann, JoAnn Heffernan Heisen, F. Joseph Loughrey, Mark Loughridge, Scott C. Malpass, André F. Perold, Alfred M. Rankin, Jr., and Peter F. Volanakis.
Item 6: Investments.
Not Applicable.
Item 7: Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.
Not Applicable.
Item 8: Portfolio Managers of Closed-End Management Investment Companies.
Not Applicable.
Item 9: Purchase of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers.
Not Applicable.
Item 10: Submission of Matters to a Vote of Security Holders.
Not Applicable.
Item 11: Controls and Procedures.
(a) Disclosure Controls and Procedures. The Principal Executive and Financial Officers concluded that the Registrant’s Disclosure Controls and Procedures are effective based on their evaluation of the Disclosure Controls and Procedures as of a date within 90 days of the filing date of this report.
(b) Internal Control Over Financial Reporting. There were no significant changes in 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: Exhibits.
(a) Code of Ethics.
(b) Certifications.
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
VANGUARD TAX-MANAGED INTERNATIONAL FUND | |
By: | /s/ F. WILLIAM MCNABB III* |
F. WILLIAM MCNABB III | |
CHIEF EXECUTIVE OFFICER | |
Date: February 14, 2013 |
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 TAX-MANAGED INTERNATIONAL FUND | |
By: | /s/ F. WILLIAM MCNABB III* |
F. WILLIAM MCNABB III | |
CHIEF EXECUTIVE OFFICER | |
Date: February 14, 2013 |
VANGUARD TAX-MANAGED INTERNATIONAL FUND | |
By: | /s/ THOMAS J. HIGGINS* |
THOMAS J. HIGGINS | |
CHIEF FINANCIAL OFFICER | |
Date: February 14, 2013 |
* By: /s/ Heidi Stam
Heidi Stam, pursuant to a Power of Attorney filed on March 27, 2012 see file Number 2-11444, Incorporated by Reference.