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: 811-01766
Name of Registrant: | Vanguard Wellesley Income Fund |
Address of Registrant: | P.O. Box 2600 |
| Valley Forge, PA 19482 |
Name and address of agent for service: | Anne E. Robinson, Esquire |
| P.O. Box 876 |
| Valley Forge, PA 19482 |
Registrant’s telephone number, including area code: (610) 669-1000
Date of fiscal year end: September 30
Date of reporting period: October 1, 2018—March 31, 2019
Item 1: Reports to Shareholders
Semiannual Report | March 31, 2019
Vanguard Wellesley® Income Fund
|
See the inside front cover for important information about access to your fund’s annual and semiannual shareholder reports.
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Important information about access to shareholder reports
Beginning on January 1, 2021, as permitted by regulations adopted by the Securities and Exchange Commission, paper copies of your fund’s annual and semiannual shareholder reports will no longer be sent to you by mail, unless you specifically request them. Instead, you will be notified by mail each time a report is posted on the website and will be provided with a link to access the report.
If you have already elected to receive shareholder reports electronically, you will not be affected by this change and do not need to take any action. You may elect to receive shareholder reports and other communications from the fund electronically by contacting your financial intermediary (such as a broker-dealer or bank) or, if you invest directly with the fund, by calling Vanguard at one of the phone numbers on the back cover of this report or by logging on to vanguard.com.
You may elect to receive paper copies of all future shareholder reports free of charge. If you invest through a financial intermediary, you can contact the intermediary to request that you continue to receive paper copies. If you invest directly with the fund, you can call Vanguard at one of the phone numbers on the back cover of this report or log on to vanguard.com. Your election to receive paper copies will apply to all the funds you hold through an intermediary or directly with Vanguard.
Contents |
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About Your Fund’s Expenses | 1 |
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Financial Statements | 4 |
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.
Six Months Ended March 31, 2019
Wellesley Income Fund | Beginning Account Value 9/30/2018 | Ending Account Value 3/31/2019 | Expenses Paid During Period |
Based on Actual Fund Return |
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|
|
Investor Shares | $1,000.00 | $1,038.22 | $1.17 |
Admiral™ Shares | 1,000.00 | 1,038.40 | 0.81 |
Based on Hypothetical 5% Yearly Return |
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Investor Shares | $1,000.00 | $1,023.78 | $1.16 |
Admiral Shares | 1,000.00 | 1,024.13 | 0.81 |
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 0.23% for Investor Shares and 0.16% for Admiral 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 (182/365).
Wellesley Income Fund
Sector Diversification
As of March 31, 2019
Equity Exposure |
|
Communication Services | 7.1% |
Consumer Discretionary | 3.4 |
Consumer Staples | 11.9 |
Energy | 11.1 |
Financials | 15.2 |
Health Care | 18.2 |
Industrials | 8.3 |
Information Technology | 10.7 |
Materials | 3.2 |
Real Estate | 1.9 |
Utilities | 9.0 |
The table reflects the fund’s equity exposure, based on its investments in stocks and stock index futures. Any holdings in short-term reserves are excluded. Sector categories are based on the Global Industry Classification Standard (“GICS”), except for the “Other” category (if applicable), which includes securities that have not been provided a GICS classification as of the effective reporting period.
Fixed Income Exposure |
|
Asset-Backed | 4.8% |
Commercial Mortgage-Backed | 1.5 |
Finance | 29.2 |
Foreign | 4.9 |
Government Mortgage-Backed | 3.2 |
Industrial | 34.7 |
Treasury/Agency | 8.9 |
Utilities | 7.7 |
Other | 5.1 |
The table reflects the fund’s market exposure. Any holdings in short-term reserves are excluded. The agency and mortgage-backed securities sectors may include issues from government-sponsored enterprises; such issues are generally not backed by the full faith and credit of the U.S. government.
The Global Industry Classification Standard (“GICS”) was developed by and is the exclusive property and a service mark of MSCI Inc. (“MSCI”) and Standard and Poor’s, a division of McGraw-Hill Companies, Inc. (“S&P”), and is licensed for use by Vanguard. Neither MSCI, S&P nor any third party involved in making or compiling the GICS or any GICS classification makes any express or implied warranties or representations with respect to such standard or classification (or the results to be obtained by the use thereof), and all such parties hereby expressly disclaim all warranties of originality, accuracy, completeness, merchantability or fitness for a particular purpose with respect to any such standard or classification. Without limiting any of the foregoing, in no event shall MSCI, S&P, any of its affiliates or any third party involved in making or compiling the GICS or any GICS classification have any liability for any direct, indirect, special, punitive, consequential or any other damages (including lost profits) even if notified of the possibility of such damages.
Wellesley Income Fund
Financial Statements (unaudited)
Statement of Net Assets—Investments Summary
As of March 31, 2019
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 files its complete schedule of portfolio holdings with the Securities and Exchange Commission (SEC) for the first and third quarters of each fiscal year as an exhibit to its reports on Form N-PORT. The fund’s Form N-PORT reports will be available on the SEC’s website at www.sec.gov.
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| Face |
| Market | Percentage |
|
|
| Maturity | Amount |
| Value· | of Net |
|
| Coupon | Date | ($000) |
| ($000) | Assets |
U.S. Government and Agency Obligations |
|
|
|
|
| ||
U.S. Government Securities |
|
|
|
|
|
| |
| United States Treasury Note/Bond | 3.125% | 11/15/28 | 358,235 |
| 380,403 | 0.7% |
| United States Treasury Note/Bond | 2.875% | 11/15/21 | 360,000 |
| 365,738 | 0.7% |
1 | United States Treasury Note/Bond | 2.125% | 12/31/22 | 366,400 |
| 365,085 | 0.7% |
| United States Treasury Note/Bond | 3.375% | 5/15/44 | 292,125 |
| 323,575 | 0.6% |
| United States Treasury Note/Bond | 2.625% | 2/15/29 | 310,000 |
| 316,054 | 0.6% |
1 | United States Treasury Note/Bond | 1.250%–3.625% | 3/31/20–2/15/49 | 710,245 |
| 716,551 | 1.3% |
| U.S. Government Securities—Other † |
|
|
| 359,969 | 0.7% | |
|
|
|
|
|
| 2,827,375 | 5.3% |
|
|
|
|
|
|
|
|
Agency Notes † |
|
|
|
| 25,015 | 0.1% | |
|
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|
|
Conventional Mortgage-Backed Securities |
|
|
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|
| ||
2,3,4 | Fannie Mae Pool | 2.500%–4.500% | 8/1/27–1/1/58 | 859,729 |
| 870,785 | 1.6% |
| Conventional Mortgage-Backed Securities—Other † |
|
| 159,035 | 0.3% | ||
|
|
|
|
|
| 1,029,820 | 1.9% |
Nonconventional Mortgage-Backed Securities |
|
|
|
|
| ||
2,3 | Fannie Mae REMICS | 3,500%–4.000% | 9/25/29–11/25/57 | 359,513 |
| 366,659 | 0.7% |
| Nonconventional Mortgage-Backed Securities—Other † |
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| 116,223 | 0.2% | ||
|
|
|
|
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| 482,882 | 0.9% |
Total U.S. Government and Agency Obligations (Cost $4,296,498) |
| 4,365,092 | 8.2% | ||||
§,5 Asset-Backed/Commercial Mortgage-Backed Securities (Cost $1,519,512) † |
| 1,521,493 | 2.8% |
Wellesley Income Fund
|
|
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| Face |
| Market | Percentage |
|
|
| Maturity | Amount |
| Value· | of Net |
|
| Coupon | Date | ($000) |
| ($000) | Assets |
Corporate Bonds |
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| |
Finance |
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| |
| Banking |
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|
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3 | Bank of America Corp. | 2.816%–6.110% | 1/11/23–3/15/50 | 559,905 |
| 578,059 | 1.1% |
| Bank One Corp. | 7.750% | 7/15/25 | 25,000 |
| 30,394 | 0.1% |
3 | Goldman Sachs Group Inc. | 2.625%–6.250% | 2/25/21–10/21/45 | 643,260 |
| 661,096 | 1.2% |
5 | HSBC Bank plc | 4.750% | 1/19/21 | 42,960 |
| 44,412 | 0.1% |
| HSBC Bank USA NA | 5.875% | 11/1/34 | 21,000 |
| 25,068 | 0.1% |
3 | HSBC Holdings plc | 3.262%–7.625% | 3/8/21–3/14/44 | 305,525 |
| 333,199 | 0.6% |
6 | HSBC Holdings plc, 3M USD LIBOR + 1.000% | 3.683% | 5/18/24 | 26,495 |
| 26,261 | 0.1% |
| HSBC USA Inc. | 2.350%–3.500% | 3/5/20–6/23/24 | 111,785 |
| 111,649 | 0.2% |
3 | JPMorgan Chase & Co. | 2.550%–6.300% | 4/23/19–11/15/48 | 688,505 |
| 713,228 | 1.3% |
3 | Morgan Stanley | 2.375%–7.300% | 5/13/19–1/27/45 | 523,955 |
| 543,906 | 1.0% |
| Wachovia Corp. | 6.605% | 10/1/25 | 15,000 |
| 17,439 | 0.0% |
| Wells Fargo & Co. | 2.150%–5.606% | 1/30/20–12/7/46 | 560,685 |
| 574,723 | 1.1% |
5 | Banking—Other † |
|
|
|
| 4,036,148 | 7.5% |
| Brokerage † |
|
|
|
| 26,619 | 0.1% |
5 | Insurance † |
|
|
|
| 1,418,141 | 2.6% |
5 | Other Finance † |
|
|
|
| 18,546 | 0.0% |
5 | Real Estate Investment Trusts † |
|
|
| 172,820 | 0.3% | |
|
|
|
|
|
| 9,331,708 | 17.4% |
Industrial |
|
|
|
|
|
| |
5 | Basic Industry † |
|
|
|
| 95,410 | 0.2% |
5 | Capital Goods † |
|
|
|
| 920,585 | 1.7% |
| Communication |
|
|
|
|
|
|
| Comcast Corp. | 2.350%–4.950% | 2/1/24–10/15/58 | 556,766 |
| 574,267 | 1.1% |
5 | NBCUniversal Enterprise Inc. | 1.974% | 4/15/19 | 84,070 |
| 84,049 | 0.1% |
| NBCUniversal Media LLC | 4.375%–4.450% | 4/1/21–1/15/43 | 36,639 |
| 37,807 | 0.1% |
5 | Sky Ltd. | 2.625% | 9/16/19 | 30,550 |
| 30,480 | 0.1% |
5 | Sky plc | 3.750% | 9/16/24 | 42,911 |
| 44,538 | 0.1% |
| Verizon Communications Inc. | 3.450%–5.012% | 3/15/21–3/15/55 | 231,294 |
| 244,224 | 0.4% |
5 | Communication—Other † |
|
|
|
| 649,279 | 1.2% |
5 | Consumer Cyclical † |
|
|
|
| 1,321,766 | 2.5% |
| Consumer Noncyclical |
|
|
|
|
|
|
| Johnson & Johnson | 2.450%–6.730% | 11/15/23–3/1/26 | 93,000 |
| 93,913 | 0.2% |
| Merck & Co. Inc. | 2.350%–4.150% | 2/10/22–5/18/43 | 165,270 |
| 168,772 | 0.3% |
| Pfizer Inc. | 3.000%–4.100% | 6/15/23–9/15/38 | 159,055 |
| 163,521 | 0.3% |
| Philip Morris International Inc. | 1.875%–4.875% | 3/26/20–11/10/44 | 175,695 |
| 173,266 | 0.3% |
| Wyeth LLC | 5.950% | 4/1/37 | 15,000 |
| 19,086 | 0.0% |
5 | Consumer Noncyclical—Other † |
|
|
|
| 3,108,804 | 5.8% |
| Energy |
|
|
|
|
|
|
| Chevron Corp. | 2.355%–3.191% | 12/5/22–6/24/23 | 75,750 |
| 77,286 | 0.1% |
| Dominion Energy Gas Holdings LLC | 3.550%–4.800% | 11/1/23–12/15/44 | 35,278 |
| 36,834 | 0.1% |
| Texaco Capital Inc. | 8.625% | 4/1/32 | 25,000 |
| 36,594 | 0.1% |
5 | Energy—Other † |
|
|
|
| 952,323 | 1.8% |
5 | Other Industrial † |
|
|
|
| 164,114 | 0.3% |
Wellesley Income Fund
|
|
|
| Face |
| Market | Percentage |
|
|
| Maturity | Amount |
| Value· | of Net |
|
| Coupon | Date | ($000) |
| ($000) | Assets |
| Technology |
|
|
|
|
|
|
| Cisco Systems Inc. | 2.500% | 9/20/26 | 15,921 |
| 15,460 | 0.0% |
| Intel Corp. | 2.875%–4.100% | 5/11/24–5/19/46 | 77,580 |
| 80,335 | 0.2% |
5 | Technology—Other † |
|
|
|
| 1,737,505 | 3.2% |
5 | Transportation † |
|
|
|
| 287,318 | 0.5% |
|
|
|
|
|
| 11,117,536 | 20.7% |
Utilities |
|
|
|
|
|
| |
| Electric |
|
|
|
|
|
|
| Dominion Energy Inc. | 2.579%–4.600% | 7/1/19–3/15/49 | 46,945 |
| 47,567 | 0.1% |
| South Carolina Electric & Gas Co. | 4.250%–6.625% | 8/15/28–6/1/65 | 110,832 |
| 126,506 | 0.2% |
| Virginia Electric & Power Co. | 3.500%–6.000% | 3/15/27–5/15/37 | 50,200 |
| 53,194 | 0.1% |
5 | Electric—Other † |
|
|
|
| 1,907,165 | 3.6% |
5 | Natural Gas † |
|
|
|
| 265,851 | 0.5% |
| Other Utility † |
|
|
|
| 49,780 | 0.1% |
|
|
|
|
|
| 2,450,063 | 4.6% |
Total Corporate Bonds (Cost $22,414,429) |
|
|
| 22,899,307 | 42.7% | ||
5Sovereign Bonds (Cost $1,554,289) † |
|
|
| 1,565,372 | 2.9% | ||
Taxable Municipal Bonds (Cost $1,423,799) † |
|
|
| 1,627,739 | 3.0% | ||
|
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| Shares |
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Common Stocks |
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| |
Communication Services |
|
|
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|
| |
| Verizon Communications Inc. |
|
| 13,358,818 |
| 789,907 | 1.5% |
| Comcast Corp. Class A |
|
| 11,973,672 |
| 478,708 | 0.9% |
| Communication Services—Other † |
|
|
| 163,055 | 0.3% | |
|
|
|
|
|
| 1,431,670 | 2.7% |
Consumer Discretionary |
|
|
|
|
|
| |
| Home Depot Inc. |
|
| 1,584,613 |
| 304,071 | 0.6% |
| McDonald’s Corp. |
|
| 1,370,509 |
| 260,260 | 0.5% |
| Consumer Discretionary—Other † |
|
|
| 114,866 | 0.2% | |
|
|
|
|
|
| 679,197 | 1.3% |
Consumer Staples |
|
|
|
|
|
| |
| Philip Morris International Inc. |
|
| 5,821,587 |
| 514,570 | 0.9% |
| Unilever NV |
|
| 7,413,579 |
| 432,137 | 0.8% |
| Coca-Cola Co. |
|
| 7,684,788 |
| 360,109 | 0.7% |
| Procter & Gamble Co. |
|
| 3,073,087 |
| 319,755 | 0.6% |
| PepsiCo Inc. |
|
| 2,109,536 |
| 258,524 | 0.5% |
| Mondelez International Inc. Class A |
| 4,809,011 |
| 240,066 | 0.4% | |
| Consumer Staples—Other † |
|
|
|
| 259,391 | 0.5% |
|
|
|
|
|
| 2,384,552 | 4.4% |
Energy |
|
|
|
|
|
| |
| Chevron Corp. |
|
| 4,233,852 |
| 521,526 | 1.0% |
| Exxon Mobil Corp. |
|
| 5,454,445 |
| 440,719 | 0.8% |
| Suncor Energy Inc. |
|
| 13,350,176 |
| 432,946 | 0.8% |
^ | TransCanada Corp. |
|
| 6,746,946 |
| 303,028 | 0.6% |
| Occidental Petroleum Corp. |
|
| 3,195,825 |
| 211,564 | 0.4% |
| Energy—Other † |
|
|
|
| 302,911 | 0.5% |
|
|
|
|
|
| 2,212,694 | 4.1% |
Wellesley Income Fund
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|
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| Market | Percentage |
|
|
|
|
|
| Value· | of Net |
|
|
|
| Shares |
| ($000) | Assets |
Financials |
|
|
|
|
|
| |
| JPMorgan Chase & Co. |
|
| 8,418,311 |
| 852,186 | 1.6% |
| MetLife Inc. |
|
| 8,532,406 |
| 363,224 | 0.7% |
| Wells Fargo & Co. |
|
| 7,409,822 |
| 358,043 | 0.7% |
| Bank of America Corp. |
|
| 8,607,932 |
| 237,493 | 0.4% |
| Travelers Cos. Inc. |
|
| 1,672,015 |
| 229,334 | 0.4% |
| PNC Financial Services Group Inc. |
| 1,788,304 |
| 219,353 | 0.4% | |
| Financials—Other † |
|
|
|
| 779,410 | 1.5% |
|
|
|
|
|
| 3,039,043 | 5.7% |
Health Care |
|
|
|
|
|
| |
| Johnson & Johnson |
|
| 5,269,718 |
| 736,654 | 1.4% |
| Pfizer Inc. |
|
| 15,785,435 |
| 670,407 | 1.3% |
| Merck & Co. Inc. |
|
| 5,530,242 |
| 459,950 | 0.9% |
| Medtronic plc |
|
| 3,739,225 |
| 340,569 | 0.6% |
| Novartis AG |
|
| 3,280,424 |
| 315,313 | 0.6% |
| Roche Holding AG |
|
| 1,025,406 |
| 282,556 | 0.5% |
| Koninklijke Philips NV |
|
| 6,590,891 |
| 269,289 | 0.5% |
| Bristol-Myers Squibb Co. |
|
| 4,591,161 |
| 219,044 | 0.4% |
| Health Care—Other † |
|
|
|
| 344,672 | 0.6% |
|
|
|
|
|
| 3,638,454 | 6.8% |
Industrials |
|
|
|
|
|
| |
| Lockheed Martin Corp. |
|
| 1,396,116 |
| 419,058 | 0.8% |
| Caterpillar Inc. |
|
| 2,260,179 |
| 306,232 | 0.6% |
| Eaton Corp. plc |
|
| 3,784,109 |
| 304,848 | 0.5% |
| 3M Co. |
|
| 1,281,775 |
| 266,327 | 0.5% |
| Industrials—Other † |
|
|
|
| 370,214 | 0.7% |
|
|
|
|
|
| 1,666,679 | 3.1% |
Information Technology |
|
|
|
|
|
| |
| Cisco Systems Inc. |
|
| 14,316,276 |
| 772,936 | 1.4% |
| Intel Corp. |
|
| 10,159,855 |
| 545,584 | 1.0% |
| Analog Devices Inc. |
|
| 2,762,052 |
| 290,761 | 0.6% |
| Information Technology—Other † |
|
|
| 525,059 | 1.0% | |
|
|
|
|
|
| 2,134,340 | 4.0% |
Materials |
|
|
|
|
|
| |
| DowDuPont Inc. |
|
| 6,802,899 |
| 362,662 | 0.7% |
| Materials—Other † |
|
|
|
| 286,406 | 0.5% |
|
|
|
|
|
| 649,068 | 1.2% |
Real Estate |
|
|
|
|
|
| |
| Crown Castle International Corp. |
|
| 2,939,753 |
| 376,288 | 0.7% |
|
|
|
|
|
|
|
|
Utilities |
|
|
|
|
|
| |
| Dominion Energy Inc. |
|
| 4,447,057 |
| 340,911 | 0.6% |
| NextEra Energy Inc. |
|
| 1,346,720 |
| 260,348 | 0.5% |
| Duke Energy Corp. |
|
| 2,890,898 |
| 260,181 | 0.5% |
| Sempra Energy |
|
| 2,057,469 |
| 258,953 | 0.5% |
| American Electric Power Co. Inc. |
|
| 2,886,425 |
| 241,738 | 0.4% |
| Eversource Energy |
|
| 3,279,178 |
| 232,658 | 0.4% |
| Utilities—Other † |
|
|
|
| 206,358 | 0.4% |
|
|
|
|
|
| 1,801,147 | 3.3% |
Total Common Stocks (Cost $14,535,926) |
|
|
| 20,013,132 | 37.3% |
Wellesley Income Fund
|
|
|
|
|
|
| Market | Percentage |
|
|
|
|
|
|
| Value· | of Net |
|
| Coupon |
|
| Shares |
| ($000) | Assets |
Temporary Cash Investments |
|
|
|
|
|
|
| |
Money Market Fund |
|
|
|
|
|
| ||
7,8 | Vanguard Market Liquidity Fund | 2.554% |
|
| 3,398,974 |
| 339,965 | 0.6% |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Face |
|
|
|
|
|
|
| Maturity | Amount |
|
|
|
|
|
|
| Date | ($000) |
|
|
|
Repurchase Agreements |
|
|
|
|
|
|
| |
| Bank of America Securities, LLC. | 2.550% |
| 4/1/19 | 136,900 |
| 136,900 | 0.3% |
| Deutsche Bank Securities, Inc. | 2.570% |
| 4/1/19 | 13,000 |
| 13,000 | 0.0% |
| HSBC Bank USA | 2.550% |
| 4/1/19 | 120,500 |
| 120,500 | 0.2% |
| HSBC Bank USA | 2.570% |
| 4/1/19 | 51,000 |
| 51,000 | 0.1% |
| JP Morgan Securities LLC. | 2.550% |
| 4/1/19 | 172,000 |
| 172,000 | 0.3% |
Wellesley Income Fund
|
|
|
|
| Face |
| Market | Percentage |
|
|
|
| Maturity | Amount |
| Value· | of Net |
|
| Coupon |
| Date | ($000) |
| ($000) | Assets |
| Natixis SA | 2.550% |
| 4/1/19 | 177,200 |
| 177,200 | 0.4% |
| Nomura International PLC | 2.570% |
| 4/1/19 | 418,400 |
| 418,400 | 0.8% |
| RBC Capital Markets LLC | 2.550% |
| 4/1/19 | 118,900 |
| 118,900 | 0.2% |
| RBS Securities, Inc. | 2.550% |
| 4/1/19 | 103,800 |
| 103,800 | 0.2% |
|
|
|
|
|
|
| 1,311,700 | 2.5% |
U.S. Government and Agency Obligations |
|
|
|
|
|
|
| |
| United States Treasury Bill | 2.365% |
| 4/11/19 | 200,000 |
| 199,866 | 0.4% |
Total Temporary Cash Investments (Cost $1,851,500) |
|
|
| 1,851,531 | 3.5% | |||
Total Investments (Cost $47,595,953) |
|
|
| 53,843,666 | 100.4% |
Wellesley Income Fund
|
|
|
| Percentage |
|
| Amount |
| of Net |
|
| ($000) |
| Assets |
Other Assets and Liabilities |
|
|
|
|
Other Assets |
|
|
|
|
Investment in Vanguard |
| 2,660 |
|
|
Receivables for Investment Securities Sold |
| 736,019 |
|
|
Receivables for Accrued Income |
| 317,389 |
|
|
Receivables for Capital Shares Issued |
| 29,864 |
|
|
Variation Margin Receivable—Futures Contracts |
| 1,999 |
|
|
Total Other Assets |
| 1,087,931 |
| 2.0% |
Liabilities |
|
|
|
|
Payables for Investment Securities Purchased |
| (830,712) |
|
|
Collateral for Securities on Loan |
| (339,910) |
|
|
Payables to Investment Advisor |
| (7,866) |
|
|
Payables for Capital Shares Redeemed |
| (30,067) |
|
|
Payables to Vanguard |
| (39,565) |
|
|
Variation Margin Payable—Futures Contracts |
| (2,232) |
|
|
Other Liabilities |
| (43,790) |
|
|
Total Liabilities |
| (1,294,142) |
| (2.4%) |
Net Assets |
| 53,637,455 |
| 100.0% |
At March 31, 2019, net assets consisted of:
|
|
|
| Amount |
|
|
|
| ($000) |
Paid-in Capital |
|
|
| 47,417,477 |
Total Distributable Earnings (Loss) |
|
|
| 6,219,978 |
Net Assets |
|
|
| 53,637,455 |
|
|
|
|
|
Investor Shares — Net Assets |
|
|
|
|
Applicable to 471,514,908 outstanding $.001 par value shares of beneficial interest (unlimited authorization) |
|
|
| 12,205,617 |
Net Asset Value Per Share — Investor Shares |
|
|
| $25.89 |
Wellesley Income Fund
|
|
|
| Amount |
|
|
|
| ($000) |
Admiral Shares — Net Assets |
|
|
|
|
Applicable to 660,739,625 outstanding $.001 par value shares of beneficial interest (unlimited authorization) |
|
|
| 41,431,838 |
Net Asset Value Per Share — Admiral Shares |
|
|
| $62.71 |
· See Note A in Notes to Financial Statements.
§ Security value determined using significant unobservable inputs.
^ Includes partial security positions on loan to broker-dealers. The total value of securities on loan is $320,198,000.
† 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.
1 Securities with a value of $4,686,000 have been segregated as initial margin for open futures contracts.
2 The issuer was placed under federal conservatorship in September 2008; since that time, its daily operations have been managed by the Federal Housing Finance Agency and it receives capital from the U.S. Treasury, as needed to maintain a positive net worth, in exchange for senior preferred stock.
3 The average or expected maturity is shorter than the final maturity shown because of the possibility of interim principal payments and prepayments or the possibility of the issue being called.
4 Includes securities purchased on a when-issued or delayed-delivery basis for which the fund has not taken delivery as of March 31, 2019.
5 Certain of the fund’s securities are exempt from registration under Rule 144A of the Securities Act of 1933. Such securities may be sold in transactions exempt from registration, normally to qualified institutional buyers. At March 31, 2019, the aggregate value of these securities was $6,608,283,000, representing 12.3% of net assets.
6 Adjustable-rate security; rate shown is effective rate at period end. Certain adjustable-rate securities are not based on a published reference rate and spread but are determined by the issuer or agent based on current market conditions.
7 Affiliated money market fund available only to Vanguard funds and certain trusts and accounts managed by Vanguard. Rate shown is the 7-day yield.
8 Includes $339,910,000 of collateral received for securities on loan.
REMICS—Real Estate Mortgage Investment Conduits.
LIBOR—London Inter-bank Offered Rate.
Derivative Financial Instruments Outstanding as of Period End |
Futures Contracts |
|
|
|
|
|
|
|
| ($000) |
|
|
|
|
|
|
|
| Value and |
|
|
|
| Number of |
|
|
| Unrealized |
|
|
|
| Long (Short) |
| Notional |
| Appreciation |
|
| Expiration |
| Contracts |
| Amount |
| (Depreciation) |
Long Futures Contracts |
|
|
|
|
|
|
|
|
5-Year U.S. Treasury Note |
| June 2019 |
| 8,847 |
| 1,024,731 |
| 10,279 |
2-Year U.S. Treasury Note |
| June 2019 |
| 839 |
| 178,786 |
| 665 |
|
|
|
|
|
|
|
| 10,944 |
|
|
|
|
|
|
|
|
|
Short Futures Contracts |
|
|
|
|
|
|
|
|
Ultra Long U.S. Treasury Bond |
| June 2019 |
| (983) |
| (165,144) |
| (6,034) |
|
|
|
|
|
|
|
| 4,910 |
See accompanying Notes, which are an integral part of the Financial Statements.
Wellesley Income Fund
Statement of Operations
|
| Six Months Ended |
|
| March 31, 2019 |
|
| ($000) |
Investment Income |
|
|
Income |
|
|
Dividends1 |
| 310,867 |
Interest |
| 571,905 |
Securities Lending—Net |
| 314 |
Total Income |
| 883,086 |
Expenses |
|
|
Investment Advisory Fees—Note B |
|
|
Basic Fee |
| 14,023 |
Performance Adjustment |
| 1,404 |
The Vanguard Group—Note C |
|
|
Management and Administrative—Investor Shares |
| 9,259 |
Management and Administrative—Admiral Shares |
| 18,745 |
Marketing and Distribution—Investor Shares |
| 731 |
Marketing and Distribution—Admiral Shares |
| 945 |
Custodian Fees |
| 121 |
Shareholders’ Reports—Investor Shares |
| 105 |
Shareholders’ Reports—Admiral Shares |
| 127 |
Trustees’ Fees and Expenses |
| 28 |
Total Expenses |
| 45,488 |
Net Investment Income |
| 837,598 |
Realized Net Gain (Loss) |
|
|
Investment Securities Sold2 |
| 67,433 |
Futures Contracts |
| 8,669 |
Swap Contracts |
| (2,152) |
Forward Currency Contracts |
| (4,828) |
Foreign Currencies |
| 47 |
Realized Net Gain (Loss) |
| 69,169 |
Change in Unrealized Appreciation (Depreciation) |
|
|
Investment Securities2 |
| 1,046,614 |
Futures Contracts |
| (9,766) |
Forward Currency Contracts |
| (2,471) |
Foreign Currencies |
| 67 |
Change in Unrealized Appreciation (Depreciation) |
| 1,034,444 |
Net Increase (Decrease) in Net Assets Resulting from Operations |
| 1,941,211 |
1 Dividends are net of foreign withholding taxes of $7,237,000.
2 Realized net gain (loss) and change in unrealized appreciation (depreciation) from an affiliated company of the fund were ($5,000) and $34,000, respectively. Purchases and sales are for temporary cash investment purposes.
See accompanying Notes, which are an integral part of the Financial Statements.
Wellesley Income Fund
Statement of Changes in Net Assets
|
| Six Months Ended |
| Year Ended |
|
| March 31, |
| September 30, |
|
| 2019 |
| 2018 |
|
| ($000) |
| ($000) |
Increase (Decrease) in Net Assets |
|
|
|
|
Operations |
|
|
|
|
Net Investment Income |
| 837,598 |
| 1,620,888 |
Realized Net Gain (Loss) |
| 69,169 |
| 2,463,790 |
Change in Unrealized Appreciation (Depreciation) |
| 1,034,444 |
| (2,320,318) |
Net Increase (Decrease) in Net Assets Resulting from Operations |
| 1,941,211 |
| 1,764,360 |
Distributions |
|
|
|
|
Net Investment Income |
|
|
|
|
Investor Shares |
| (196,309) |
| (389,576) |
Admiral Shares |
| (674,017) |
| (1,236,857) |
Realized Capital Gain1 |
|
|
|
|
Investor Shares |
| (476,867) |
| (158,569) |
Admiral Shares |
| (1,591,417) |
| (472,158) |
Total Distributions |
| (2,938,610) |
| (2,257,160) |
Capital Share Transactions |
|
|
|
|
Investor Shares |
| 44,467 |
| (1,702,663) |
Admiral Shares |
| 1,436,405 |
| 1,154,836 |
Net Increase (Decrease) from Capital Share Transactions |
| 1,480,872 |
| (547,827) |
Total Increase (Decrease) |
| 483,473 |
| (1,040,627) |
Net Assets |
|
|
|
|
Beginning of Period |
| 53,153,982 |
| 54,194,609 |
End of Period |
| 53,637,455 |
| 53,153,982 |
1 Includes fiscal 2019 and 2018 short-term gain distributions totaling $0 and $50,213,000, respectively. Short-term gain distributions are treated as ordinary income dividends for tax purposes.
See accompanying Notes, which are an integral part of the Financial Statements.
Wellesley Income Fund
Financial Highlights
Investor Shares
|
| Six Months |
|
|
|
|
|
|
|
|
|
|
|
| Ended |
|
|
|
|
|
|
|
|
|
|
For a Share Outstanding |
| March 31, |
| Year Ended September 30, | ||||||||
Throughout Each Period |
| 2019 |
| 2018 |
| 2017 |
| 2016 |
| 2015 |
| 2014 |
Net Asset Value, Beginning of Period |
| $26.43 |
| $26.66 |
| $26.13 |
| $24.71 |
| $25.65 |
| $24.82 |
Investment Operations |
|
|
|
|
|
|
|
|
|
|
|
|
Net Investment Income |
| .405 | 1 | .779 | 1 | .769 | 1 | .761 |
| .760 |
| .811 |
Net Realized and Unrealized Gain (Loss) on Investments |
| .520 |
| .086 |
| .810 |
| 2.014 |
| (.487 | ) | 1.491 |
Total from Investment Operations |
| .925 |
| .865 |
| 1.579 |
| 2.775 |
| .273 |
| 2.302 |
Distributions |
|
|
|
|
|
|
|
|
|
|
|
|
Dividends from Net Investment Income |
| (.424 | ) | (.786 | ) | (.780 | ) | (.746 | ) | (.761 | ) | (.793) |
Distributions from Realized Capital Gains |
| (1.041 | ) | (.309 | ) | (.269 | ) | (.609 | ) | (.452 | ) | (.679) |
Total Distributions |
| (1.465 | ) | (1.095 | ) | (1.049 | ) | (1.355 | ) | (1.213 | ) | (1.472) |
Net Asset Value, End of Period |
| $25.89 |
| $26.43 |
| $26.66 |
| $26.13 |
| $24.71 |
| $25.65 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Return2 |
| 3.82% |
| 3.28% |
| 6.22% |
| 11.58% |
| 1.03% |
| 9.54% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Ratios/Supplemental Data |
|
|
|
|
|
|
|
|
|
|
|
|
Net Assets, End of Period (Millions) |
| $12,206 |
| $12,398 |
| $14,220 |
| $14,175 |
| $11,617 |
| $11,830 |
Ratio of Total Expenses to Average Net Assets3 |
| 0.23% |
| 0.23% |
| 0.22% |
| 0.22% |
| 0.23% |
| 0.25% |
Ratio of Net Investment Income to Average Net Assets |
| 3.18% |
| 2.93% |
| 2.95% |
| 3.02% |
| 2.96% |
| 3.19% |
Portfolio Turnover Rate4 |
| 28% |
| 36% |
| 22% |
| 31% |
| 59% |
| 109% |
The expense ratio, net investment income ratio, and turnover rate for the current period have been annualized.
1 Calculated based on average shares outstanding.
2 Total returns do not include account service fees that may have applied in the periods shown. Fund prospectuses provide information about any applicable account service fees.
3 Includes performance-based investment advisory fee increases (decreases) of 0.01%, 0.00%, (0.00%), 0.00%, 0.00%, and 0.01%.
4 Includes 0%, 4%, 1%, 15%, 18%, and 23% attributable to mortgage-dollar-roll activity.
See accompanying Notes, which are an integral part of the Financial Statements.
Wellesley Income Fund
Financial Highlights
Admiral Shares
|
| Six Months |
|
|
|
|
|
|
|
|
|
|
|
| Ended |
|
|
|
|
|
|
|
|
|
|
For a Share Outstanding |
| March 31, |
| Year Ended September 30, | ||||||||
Throughout Each Period |
| 2019 |
| 2018 |
| 2017 |
| 2016 |
| 2015 |
| 2014 |
Net Asset Value, Beginning of Period |
| $64.03 |
| $64.57 |
| $63.30 |
| $59.87 |
| $62.14 |
| $60.12 |
Investment Operations |
|
|
|
|
|
|
|
|
|
|
|
|
Net Investment Income |
| 1.003 | 1 | 1.934 | 1 | 1.908 | 1 | 1.887 |
| 1.884 |
| 2.010 |
Net Realized and Unrealized Gain (Loss) on Investments |
| 1.248 |
| .226 |
| 1.945 |
| 4.868 |
| (1.171 | ) | 3.623 |
Total from Investment Operations |
| 2.251 |
| 2.160 |
| 3.853 |
| 6.755 |
| .713 |
| 5.633 |
Distributions |
|
|
|
|
|
|
|
|
|
|
|
|
Dividends from Net Investment Income |
| (1.049 | ) | (1.951 | ) | (1.932 | ) | (1.850 | ) | (1.888 | ) | (1.967) |
Distributions from Realized Capital Gains |
| (2.522 | ) | (.749 | ) | (.651 | ) | (1.475 | ) | (1.095 | ) | (1.646) |
Total Distributions |
| (3.571 | ) | (2.700 | ) | (2.583 | ) | (3.325 | ) | (2.983 | ) | (3.613) |
Net Asset Value, End of Period |
| $62.71 |
| $64.03 |
| $64.57 |
| $63.30 |
| $59.87 |
| $62.14 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Return2 |
| 3.84% |
| 3.38% |
| 6.27% |
| 11.64% |
| 1.11% |
| 9.64% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Ratios/Supplemental Data |
|
|
|
|
|
|
|
|
|
|
|
|
Net Assets, End of Period (Millions) |
| $41,432 |
| $40,756 |
| $39,974 |
| $35,678 |
| $28,083 |
| $27,156 |
Ratio of Total Expenses to Average Net Assets3 |
| 0.16% |
| 0.16% |
| 0.15% |
| 0.15% |
| 0.16% |
| 0.18% |
Ratio of Net Investment Income to Average Net Assets |
| 3.25% |
| 3.00% |
| 3.02% |
| 3.09% |
| 3.03% |
| 3.26% |
Portfolio Turnover Rate4 |
| 28% |
| 36% |
| 22% |
| 31% |
| 59% |
| 109% |
The expense ratio, net investment income ratio, and turnover rate for the current period have been annualized.
1 Calculated based on average shares outstanding.
2 Total returns do not include account service fees that may have applied in the periods shown. Fund prospectuses provide information about any applicable account service fees.
3 Includes performance-based investment advisory fee increases (decreases) of 0.01%, 0.00%, (0.00%), 0.00%, 0.00%, and 0.01%.
4 Includes 0%, 4%, 1%, 15%, 18%, and 23% attributable to mortgage-dollar-roll activity.
See accompanying Notes, which are an integral part of the Financial Statements.
Wellesley Income Fund
Notes to Financial Statements
Vanguard Wellesley Income Fund is registered under the Investment Company Act of 1940 as an open-end investment company, or mutual fund. Certain of the fund’s investments are in corporate debt instruments; the issuers’ abilities to meet their obligations may be affected by economic developments in their respective industries. The fund offers two classes of shares: Investor Shares and Admiral Shares. Each of the share classes has different eligibility and minimum purchase requirements, and is designed for different types of investors.
A. The following significant accounting policies conform to generally accepted accounting principles for U.S. investment companies. The fund consistently follows such policies in preparing its financial statements.
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 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. Structured debt securities, including mortgages and asset-backed securities, are valued using the latest bid prices or using valuations based on a matrix system that considers such factors as issuer, tranche, nominal or option-adjusted spreads, weighted average coupon, weighted average maturity, credit enhancements, and collateral. Investments in Vanguard Market Liquidity Fund are valued at that fund’s net asset value. 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. Futures Contracts: The fund uses futures contracts to invest in fixed income asset classes with greater efficiency and lower cost than is possible through direct investment, to add value when these instruments are attractively priced, or to adjust sensitivity to changes in interest rates. The primary risks associated with the use of futures contracts are imperfect correlation between changes in market values of bonds held by the fund and the prices of futures contracts, and the possibility of an illiquid market. Counterparty risk involving futures is mitigated because a regulated clearinghouse is the counterparty instead of the clearing broker. To further mitigate counterparty risk, the fund trades futures contracts on an exchange, monitors the financial strength of its clearing
Wellesley Income Fund
brokers and clearinghouse, and has entered into clearing agreements with its clearing brokers. The clearinghouse imposes initial margin requirements to secure the fund’s performance and requires daily settlement of variation margin representing changes in the market value of each contract. Any assets pledged as initial margin for open contracts are noted in the Statement of Net Assets.
Futures contracts are valued at their quoted daily settlement prices. The notional amounts of the contracts are not recorded in the Statement of Net Assets. Fluctuations in the value of the contracts are recorded in the Statement of Net Assets as an asset (liability) and in the Statement of Operations as unrealized appreciation (depreciation) until the contracts are closed, when they are recorded as realized futures gains (losses).
During the six months ended March 31, 2019, the fund’s average investments in long and short futures contracts each represented 2% of net assets, based on the average of the notional amounts at each quarter-end during the period.
4. Forward Currency Contracts: The fund enters into forward currency contracts to protect the value of securities and related receivables and payables against changes in future foreign exchange rates. The fund’s risks in using these contracts include movement in the values of the foreign currencies relative to the U.S. dollar and the ability of the counterparties to fulfill their obligations under the contracts. The fund mitigates its counterparty risk by entering into forward currency contracts only with a diverse group of prequalified counterparties, monitoring their financial strength, entering into master netting arrangements with its counterparties, and requiring its counterparties to transfer collateral as security for their performance. In the absence of a default, the collateral pledged or received by the fund cannot be repledged, resold, or rehypothecated. The master netting arrangements provide that, in the event of a counterparty’s default (including bankruptcy), the fund may terminate the forward currency contracts, determine the net amount owed by either party in accordance with its master netting arrangements, and sell or retain any collateral held up to the net amount owed to the fund under the master netting arrangements. The forward currency contracts contain provisions whereby a counterparty may terminate open contracts if the fund’s net assets decline below a certain level, triggering a payment by the fund if the fund is in a net liability position at the time of the termination. The payment amount would be reduced by any collateral the fund has pledged. Any assets pledged as collateral for open contracts are noted in the Statement of Net Assets. The value of collateral received or pledged is compared daily to the value of the forward currency contracts exposure with each counterparty, and any difference, if in excess of a specified minimum transfer amount, is adjusted and settled within two business days.
Forward currency contracts are valued at their quoted daily prices obtained from an independent third party, adjusted for currency risk based on the expiration date of each contract. The notional amounts of the contracts are not recorded in the Statement of Net Assets. Fluctuations in the value of the contracts are recorded in the Statement of Net Assets as an asset (liability) and in the Statement of Operations as unrealized appreciation (depreciation) until the contracts are closed, when they are recorded as realized forward currency contract gains (losses).
During the six months ended March 31, 2019, the fund’s average investment in forward currency contracts represented less than 1% of net assets, based on the average of notional amounts at each quarter-end during the period. The fund had no open forward currency contracts at March 31, 2019.
Wellesley Income Fund
5. Swap Contracts: The fund invests in credit default swaps to adjust the overall credit risk of the fund or to actively overweight or underweight credit risk to a specific issuer or group of issuers. The fund may sell credit protection through credit default swaps to simulate investments in long positions that are either unavailable or considered to be less attractively priced in the bond market. The fund may purchase credit protection through credit default swaps to reduce credit exposure to a given issuer or issuers. Under the terms of the swaps, an up-front payment may be exchanged between the seller and buyer. In addition, the seller of the credit protection receives a periodic payment of premium from the buyer that is a fixed percentage applied to a notional amount. If, for example, the reference entity is subject to a credit event (such as bankruptcy, failure to pay, or obligation acceleration) during the term of the swap, the seller agrees to either physically settle or cash settle the swap contract. If the swap is physically settled, the seller agrees to pay the buyer an amount equal to the notional amount and take delivery of a debt instrument of the reference issuer with a par amount equal to such notional amount. If the swap is cash settled, the seller agrees to pay the buyer the difference between the notional amount and the final price for the relevant debt instrument, as determined either in a market auction or pursuant to a pre-agreed-upon valuation procedure.
The notional amounts of swap contracts are not recorded in the Statement of Net Assets. Swaps are valued daily based on market quotations received from independent pricing services or recognized dealers and the change in value is recorded in the Statement of Net Assets as an asset (liability) and in the Statement of Operations as unrealized appreciation (depreciation) until the seller of credit protection is required to take delivery (or, in a cash settled swap, pay the settlement amount determined) upon occurrence of a credit event, periodic payments are made, or the swap terminates, at which time realized gain (loss) is recorded. The net premium to be received or paid by the fund under swap contracts is accrued daily and recorded as realized gain (loss) over the life of the contract.
The primary risk associated with selling credit protection is that, upon the occurrence of a defined credit event, the market value of the debt instrument received by the fund (or, in a cash settled swap, the debt instruments used to determine the settlement payment by the fund) will be significantly less than the amount paid by the fund and, in a physically settled swap, the fund may receive an illiquid debt instrument. A risk associated with all types of swaps is the possibility that a counterparty may default on its obligation to pay net amounts due to the fund. The fund’s maximum amount subject to counterparty risk is the unrealized appreciation on the swap contract. The fund mitigates its counterparty risk by entering into swaps only with a diverse group of prequalified counterparties, monitoring their financial strength, entering into master netting arrangements with its counterparties, and requiring its counterparties to transfer collateral as security for their performance. In the absence of a default, the collateral pledged or received by the fund cannot be repledged, resold, or rehypothecated. In the event of a counterparty’s default (including bankruptcy), the fund may terminate any swap contracts with that counterparty, determine the net amount owed by either party in accordance with its master netting arrangements, and sell or retain any collateral held up to the net amount owed to the fund under the master netting arrangements. The swap contracts contain provisions whereby a counterparty may terminate open contracts if the fund’s net assets decline below a certain level, triggering a payment by the fund if the fund is in a net liability position at the time of the termination. The payment amount would be reduced by any collateral the fund has pledged. Any securities pledged as collateral for open contracts are noted in the Statement of Net Assets. The value of collateral received or pledged is compared daily to the value of the swap contracts exposure with each counterparty, and any difference, if in excess of a specified minimum transfer amount, is adjusted and settled within two business days.
Wellesley Income Fund
During the six months ended March 31, 2019, the fund’s average investments in credit protection sold and credit protection purchased each represented less than 1% of net assets, based on the average of notional amounts at each quarter-end during the period. The fund had no open swap contracts at March 31, 2019.
6. To Be Announced (TBA) Transactions: A TBA transaction is an agreement to buy or sell mortgage-backed securities with agreed-upon characteristics (face amount, coupon, maturity) for settlement at a future date. The fund may be a seller of TBA transactions to reduce its exposure to the mortgage-backed securities market or in order to sell mortgage-backed securities it owns under delayed-delivery arrangements. When the fund is a buyer of TBA transactions, it maintains cash or short-term investments in an amount sufficient to meet the purchase price at the settlement date of the TBA transaction. The primary risk associated with TBA transactions is that a counterparty may default on its obligations. The fund mitigates its counterparty risk by, among other things, performing a credit analysis of counterparties, allocating transactions among numerous counterparties, and monitoring its exposure to each counterparty. The fund may also enter into a Master Securities Forward Transaction Agreement (MSFTA) with certain counterparties and require them to transfer collateral as security for their performance. In the absence of a default, the collateral pledged or received by the fund cannot be repledged, resold, or rehypothecated. Under an MSFTA, upon a counterparty default (including bankruptcy), the fund may terminate any TBA transactions with that counterparty, determine the net amount owed by either party in accordance with its master netting arrangements, and sell or retain any collateral held up to the net amount owed to the fund under the master netting arrangements.
7. Mortgage Dollar Rolls: The fund enters into mortgage-dollar-roll transactions, in which the fund sells mortgage-backed securities to a dealer and simultaneously agrees to purchase similar securities in the future at a predetermined price. The proceeds of the securities sold in mortgage-dollar-roll transactions are typically invested in high-quality short-term fixed income securities. The fund forgoes principal and interest paid on the securities sold, and is compensated by interest earned on the proceeds of the sale and by a lower price on the securities to be repurchased.The fund has also entered into mortgage-dollar-roll transactions in which the fund buys mortgage-backed securities from a dealer pursuant to a TBA transaction and simultaneously agrees to sell similar securities in the future at a predetermined price. The securities bought in mortgage-dollar-roll transactions are used to cover an open TBA sell position. The fund continues to earn interest on mortgage-backed security pools already held and receives a lower price on the securities to be sold in the future. The fund accounts for mortgage-dollar-roll transactions as purchases and sales; as such, these transactions may increase the fund’s portfolio turnover rate. Amounts to be received or paid in connection with open mortgage dollar rolls are included in Receivables for Investment Securities Sold or Payables for Investment Securities Purchased in the Statement of Net Assets.
Wellesley Income Fund
8. Repurchase Agreements: The fund enters into repurchase agreements with institutional counterparties. Securities pledged as collateral to the fund under repurchase agreements are held by a custodian bank until the agreements mature, and in the absence of a default, such collateral cannot be repledged, resold, or rehypothecated. Each agreement requires that the market value of the collateral be sufficient to cover payments of interest and principal. The fund further mitigates its counterparty risk by entering into repurchase agreements only with a diverse group of prequalified counterparties, monitoring their financial strength, and entering into master repurchase agreements with its counterparties. The master repurchase agreements provide that, in the event of a counterparty’s default (including bankruptcy), the fund may terminate any repurchase agreements with that counterparty, determine the net amount owed, and sell or retain the collateral up to the net amount owed to the fund. Such action may be subject to legal proceedings, which may delay or limit the disposition of collateral.
9. 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 (September 30, 2015–2018), and for the period ended March 31, 2019, and has concluded that no provision for federal income tax is required in the fund’s financial statements.
10. Distributions: Distributions to shareholders are recorded on the ex-dividend date. Distributions are determined on a tax basis and may differ from net investment income and realized capital gains for financial reporting purposes.
11. Securities Lending: To earn additional income, the fund lends its securities to qualified institutional borrowers. Security loans are subject to termination by the fund at any time, and are required to be secured at all times by collateral in an amount at least equal to the market value of securities loaned. Daily market fluctuations could cause the value of loaned securities to be more or less than the value of the collateral received. When this occurs, the collateral is adjusted and settled before the opening of the market on the next business day. The fund further mitigates its counterparty risk by entering into securities lending transactions only with a diverse group of prequalified counterparties, monitoring their financial strength, and entering into master securities lending agreements with its counterparties. The master securities lending agreements provide that, in the event of a counterparty’s default (including bankruptcy), the fund may terminate any loans with that borrower, determine the net amount owed, and sell or retain the collateral up to the net amount owed to the fund; however, such actions may be subject to legal proceedings. While collateral mitigates counterparty risk, in the event of a default, the fund may experience delays and costs in recovering the securities loaned. The fund invests cash collateral received in Vanguard Market Liquidity Fund, and records a liability in the Statement of Net Assets for the return of the collateral, during the period the securities are on loan. Securities lending income represents fees charged to borrowers plus income earned on invested cash collateral, less expenses associated with the loan. During the term of the loan, the fund is entitled to all distributions made on or in respect of the loaned securities.
Wellesley Income Fund
12. Credit Facility: The fund and certain other funds managed by The Vanguard Group (“Vanguard”) participate in a $4.3 billion committed credit facility provided by a syndicate of lenders pursuant to a credit agreement that may be renewed annually; each fund is individually liable for its borrowings, if any, under the credit facility. Borrowings may be utilized for temporary and emergency purposes, and are subject to the fund’s regulatory and contractual borrowing restrictions. The participating funds are charged administrative fees and an annual commitment fee of 0.10% of the undrawn amount of the facility; these fees are allocated to the funds based on a method approved by the fund’s board of trustees and included in Management and Administrative expenses on the fund’s Statement of Operations. Any borrowings under this facility bear interest at a rate based upon the higher of the one-month London Interbank Offered Rate, federal funds effective rate, or overnight bank funding rate plus an agreed-upon spread.
The fund had no borrowings outstanding at March 31, 2019, or at any time during the period then ended.
13. 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. 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.
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. Wellington Management Company LLP provides investment advisory services to the fund for a fee calculated at an annual percentage rate of average net assets. The basic fee is subject to quarterly adjustments based on the fund’s performance for the preceding three years relative to a combined index comprising the Bloomberg Barclays U.S. Credit A or Better Bond Index and the FTSE High Dividend Yield Index. For the six months ended March 31, 2019, the investment advisory fee represented an effective annual basic rate of 0.05% of the fund’s average net assets before an increase of $1,404,000 (0.01%) based on performance.
C. In accordance with the terms of a Funds’ Service Agreement (the “FSA”) between Vanguard and the fund, Vanguard furnishes to the fund corporate management, administrative, marketing, and distribution services at Vanguard’s cost of operations (as defined by the FSA). These costs of operations are allocated to the fund based on methods and guidelines approved by the board of trustees. Vanguard does not require reimbursement in the current period for certain costs of operations (such as deferred compensation/benefits and risk/insurance costs); the fund’s liability for these costs of operations is included in Payables to Vanguard on the Statement of Net Assets. All other costs of operations payable to Vanguard are generally settled twice a month.
Upon the request of Vanguard, the fund may invest up to 0.40% of its net assets as capital in Vanguard. At March 31, 2019, the fund had contributed to Vanguard capital in the amount of $2,660,000, representing 0.00% of the fund’s net assets and 1.06% of Vanguard’s capitalization. The fund’s trustees and officers are also directors and employees, respectively, of Vanguard.
Wellesley Income Fund
D. Various inputs may be used to determine the value of the fund’s investments. These inputs are summarized in three broad levels for financial statement purposes. The inputs or methodologies used to value securities are not necessarily an indication of the risk associated with investing in those securities.
Level 1—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). Any investments valued with significant unobservable inputs are noted on the Statement of Net Assets.
The following table summarizes the market value of the fund’s investments as of March 31, 2019, based on the inputs used to value them:
| Level 1 | Level 2 | Level 3 |
Investments | ($000) | ($000) | ($000) |
U.S. Government and Agency Obligations | — | 4,365,092 | — |
Asset-Backed/Commercial Mortgage-Backed Securities | — | 1,473,708 | 47,785 |
Corporate Bonds | — | 22,899,307 | — |
Sovereign Bonds | — | 1,565,372 | — |
Taxable Municipal Bonds | — | 1,627,739 | — |
Common Stocks | 18,680,808 | 1,332,324 | — |
Temporary Cash Investments | 339,965 | 1,511,566 | — |
Futures Contracts—Assets1 | 1,999 | — | — |
Futures Contracts—Liabilities1 | (2,232) | — | — |
Total | 19,020,540 | 34,775,108 | 47,785 |
1 Represents variation margin on the last day of the reporting period.
Wellesley Income Fund
E. At March 31, 2019, the fair values of derivatives were reflected in the Statement of Net Assets as follows:
| Interest Rate | Currency | Credit |
|
| Contracts | Contracts | Contracts | Total |
Statement of Net Assets Caption | ($000) | ($000) | ($000) | ($000) |
Variation Margin Receivable—Futures Contracts | 1,999 | — | — | 1,999 |
Unrealized Appreciation—Forward Currency Contracts | — | — | — | — |
Unrealized Appreciation—Swap Contracts | — | — | — | — |
Total Assets | 1,999 | — | — | 1,999 |
|
|
|
|
|
Variation Margin Payable—Futures Contracts | (2,232) | — | — | (2,232) |
Unrealized Depreciation—Forward Currency Contracts | — | — | — | — |
Unrealized Depreciation—Swap Contracts | — | — | — | — |
Total Liabilities | (2,232) | — | — | (2,232) |
Realized net gain (loss) and the change in unrealized appreciation (depreciation) on derivatives for the six months ended March 31, 2019, were:
| Interest Rate | Currency | Credit |
|
| Contracts | Contracts | Contracts | Total |
Realized Net Gain (Loss) on Derivatives | ($000) | ($000) | ($000) | ($000) |
Futures Contracts | 8,669 | — | — | 8,669 |
Forward Currency Contracts | — | (4,828) | — | (4,828) |
Swap Contracts | — | — | (2,152) | (2,152) |
Realized Net Gain (Loss) on Derivatives | 8,669 | (4,828) | (2,152) | 1,689 |
|
|
|
|
|
Change in Unrealized Appreciation (Depreciation) on Derivatives |
|
|
| |
Futures Contracts | (9,766) | — | — | (9,766) |
Forward Currency Contracts | — | (2,471) | — | (2,471) |
Swap Contracts | — | — | — | — |
Change in Unrealized Appreciation (Depreciation) on Derivatives | (9,766) | (2,471) | — | (12,237) |
Wellesley Income Fund
F. As of March 31, 2019, gross unrealized appreciation and depreciation for investments and derivatives based on cost for U.S. federal income tax purposes were as follows:
| Amount |
| ($000) |
Tax Cost | 47,624,579 |
Gross Unrealized Appreciation | 6,731,596 |
Gross Unrealized Depreciation | (507,599) |
Net Unrealized Appreciation (Depreciation) | 6,223,997 |
G. During the six months ended March 31, 2019, the fund purchased $4,116,962,000 of investment securities and sold $4,108,820,000 of investment securities, other than U.S. government securities and temporary cash investments. Purchases and sales of U.S. government securities were $2,984,500,000 and $3,522,909,000, respectively.
H. Capital share transactions for each class of shares were:
| Six Months Ended |
| Year Ended | ||
| March 31, 2019 |
| September 30, 2018 | ||
| Amount | Shares |
| Amount | Shares |
| ($000) | (000) |
| ($000) | (000) |
Investor Shares |
|
|
|
|
|
Issued | 920,672 | 36,182 |
| 2,106,829 | 78,984 |
Issued in Lieu of Cash Distributions | 624,930 | 25,378 |
| 504,998 | 18,982 |
Redeemed | (1,501,135) | (59,089) |
| (4,314,490) | (162,392) |
Net Increase (Decrease)—Investor Shares | 44,467 | 2,471 |
| (1,702,663) | (64,426) |
Admiral Shares |
|
|
|
|
|
Issued | 2,803,939 | 45,465 |
| 6,483,472 | 100,463 |
Issued in Lieu of Cash Distributions | 2,013,395 | 33,753 |
| 1,500,891 | 23,296 |
Redeemed | (3,380,929) | (55,021) |
| (6,829,527) | (106,266) |
Net Increase (Decrease)—Admiral Shares | 1,436,405 | 24,197 |
| 1,154,836 | 17,493 |
I. Management has determined that no events or transactions occurred subsequent to March 31, 2019, that would require recognition or disclosure in these financial statements.
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P.O. Box 2600 Valley Forge, PA 19482-2600 |
Connect with Vanguard® > vanguard.com
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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.
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 information about your fund on the SEC’s website, and you can receive copies of this information, for a fee, by sending a request via email addressed to publicinfo@sec.gov.
| © 2019 The Vanguard Group, Inc. All rights reserved. Vanguard Marketing Corporation, Distributor.
Q272 052019 |
Item 2: Code of Ethics.
Not Applicable.
Item 3: Audit Committee Financial Expert.
Not Applicable.
Item 4: Principal Accountant Fees and Services.
(a) Audit Fees.
Not Applicable.
Item 5: Audit Committee of Listed Registrants.
Not Applicable.
Item 6: Investments.
Vanguard® Wellesley Income Fund
Schedule of Investments
March 31, 2019
|
|
| Coupon |
| Maturity |
| Face | ) | Market | ) |
U.S. Government and Agency Obligations (8.2%) |
|
|
|
|
|
|
|
|
| |
U.S. Government Securities (5.3%) |
|
|
|
|
|
|
|
|
| |
| United States Treasury Inflation Indexed Bonds |
| 0.750% |
| 7/15/28 |
| 164,950 |
| 169,180 |
|
| United States Treasury Note/Bond |
| 2.250% |
| 3/31/20 |
| 13,000 |
| 12,980 |
|
| United States Treasury Note/Bond |
| 1.625% |
| 6/30/20 |
| 57,795 |
| 57,253 |
|
| United States Treasury Note/Bond |
| 2.500% |
| 1/31/21 |
| 23,770 |
| 23,855 |
|
| United States Treasury Note/Bond |
| 1.250% |
| 3/31/21 |
| 43,000 |
| 42,153 |
|
| United States Treasury Note/Bond |
| 2.875% |
| 11/15/21 |
| 360,000 |
| 365,738 |
|
1 | United States Treasury Note/Bond |
| 2.125% |
| 12/31/22 |
| 366,400 |
| 365,085 |
|
| United States Treasury Note/Bond |
| 2.625% |
| 6/30/23 |
| 178,585 |
| 181,458 |
|
| United States Treasury Note/Bond |
| 2.000% |
| 2/15/25 |
| 160,450 |
| 157,892 |
|
1 | United States Treasury Note/Bond |
| 2.000% |
| 8/15/25 |
| 19,780 |
| 19,422 |
|
| United States Treasury Note/Bond |
| 2.250% |
| 11/15/27 |
| 81,580 |
| 80,789 |
|
| United States Treasury Note/Bond |
| 2.875% |
| 5/15/28 |
| 28,985 |
| 30,140 |
|
| United States Treasury Note/Bond |
| 3.125% |
| 11/15/28 |
| 358,235 |
| 380,403 |
|
| United States Treasury Note/Bond |
| 2.625% |
| 2/15/29 |
| 310,000 |
| 316,054 |
|
| United States Treasury Note/Bond |
| 3.625% |
| 2/15/44 |
| 29,950 |
| 34,517 |
|
| United States Treasury Note/Bond |
| 3.375% |
| 5/15/44 |
| 292,125 |
| 323,575 |
|
| United States Treasury Note/Bond |
| 3.000% |
| 8/15/48 |
| 70,930 |
| 73,579 |
|
| United States Treasury Note/Bond |
| 3.000% |
| 2/15/49 |
| 2,420 |
| 2,513 |
|
| United States Treasury Strip Principal |
| 0.000% |
| 5/15/47 |
| 179,000 |
| 80,228 |
|
| United States Treasury Strip Principal |
| 0.000% |
| 8/15/47 |
| 249,325 |
| 110,561 |
|
|
|
|
|
|
|
|
|
| 2,827,375 |
|
Agency Notes (0.1%) |
|
|
|
|
|
|
|
|
| |
| Tennessee Valley Authority |
| 4.625% |
| 9/15/60 |
| 19,800 |
| 25,015 |
|
|
|
|
|
|
|
|
|
|
|
|
Conventional Mortgage-Backed Securities (1.9%) |
|
|
|
|
|
|
|
|
| |
2,3 | Fannie Mae Pool |
| 2.500% |
| 8/1/27–10/1/28 |
| 4,775 |
| 4,764 |
|
2,3,4 | Fannie Mae Pool |
| 3.000% |
| 4/1/34–10/1/46 |
| 246,979 |
| 248,031 |
|
2,3 | Fannie Mae Pool |
| 3.500% |
| 9/1/47–1/1/58 |
| 476,484 |
| 482,798 |
|
2,3 | Fannie Mae Pool |
| 4.000% |
| 12/1/48–4/1/49 |
| 131,491 |
| 135,192 |
|
2,3 | Fannie Mae Pool |
| 4.500% |
| 3/1/34–6/1/38 |
| — |
| — |
|
2,3 | Freddie Mac Gold Pool |
| 4.000% |
| 7/1/33–12/1/48 |
| 151,719 |
| 156,114 |
|
2 | Ginnie Mae I Pool |
| 6.000% |
| 6/15/31–7/15/35 |
| 35 |
| 39 |
|
2 | Ginnie Mae I Pool |
| 6.500% |
| 4/15/32–9/15/38 |
| 2,719 |
| 2,882 |
|
|
|
|
|
|
|
|
|
| 1,029,820 |
|
Nonconventional Mortgage-Backed Securities (0.9%) |
|
|
|
|
| |||||
2,3 | Fannie Mae REMICS |
| 3.500% |
| 4/25/31–11/25/57 |
| 346,882 |
| 353,642 |
|
2,3 | Fannie Mae REMICS |
| 4.000% |
| 9/25/29–5/25/31 |
| 12,631 |
| 13,017 |
|
2,3 | Freddie Mac REMICS |
| 3.000% |
| 5/15/46 |
| 39,096 |
| 39,540 |
|
2,3 | Freddie Mac REMICS |
| 3.500% |
| 3/15/31 |
| 3,960 |
| 4,061 |
|
2,3 | Freddie Mac REMICS |
| 4.000% |
| 12/15/30–4/15/31 |
| 69,603 |
| 72,622 |
|
|
|
|
|
|
|
|
|
| 482,882 |
|
Total U.S. Government and Agency Obligations (Cost $4,296,498) |
|
|
| 4,365,092 |
| |||||
Asset-Backed/Commercial Mortgage-Backed Securities (2.8%) |
|
|
|
|
| |||||
2,5 | American Express Credit Account Master Trust |
| 2.950% |
| 3/15/23 |
| 61,000 |
| 61,186 |
|
5 | American Tower Trust I |
| 3.070% |
| 3/15/23 |
| 32,900 |
| 32,937 |
|
2 | AmeriCredit Automobile Receivables Trust 2016-3 |
| 2.240% |
| 4/8/22 |
| 12,670 |
| 12,565 |
|
2,5 | Angel Oak Mortgage Trust I LLC 2019-2 |
| 3.628% |
| 3/25/49 |
| 10,990 |
| 11,032 |
|
2,5,6 | Ares XXIX CLO Ltd., 3M USD LIBOR + 1.190% |
| 3.963% |
| 4/17/26 |
| 21,595 |
| 21,624 |
|
2,5,6 | Atlas Senior Loan Fund X Ltd., 3M USD LIBOR + 1.090% |
| 3.877% |
| 1/15/31 |
| 7,405 |
| 7,310 |
|
2,5,6 | Avery Point IV CLO Ltd., 3M USD LIBOR + 1.100% |
| 3.871% |
| 4/25/26 |
| 25,186 |
| 25,196 |
|
2,5,6 | Babson CLO Ltd. 2014-I, 3M USD LIBOR + 1.150% |
| 3.911% |
| 7/20/25 |
| 3,096 |
| 3,099 |
|
5 | Bank of Montreal |
| 2.500% |
| 1/11/22 |
| 122,300 |
| 121,860 |
|
2 | BMW Vehicle Lease Trust 2018-1A |
| 3.260% |
| 7/20/21 |
| 10,415 |
| 10,508 |
|
2,5 | Canadian Pacer Auto Receivables Trust 2018-2 |
| 2.547% |
| 10/21/19 |
| 262 |
| 262 |
|
2,5 | Canadian Pacer Auto Receiveable Trust A Series 2018 |
| 3.000% |
| 6/21/21 |
| 8,696 |
| 8,731 |
|
2,5 | Canadian Pacer Auto Receiveable Trust A Series 2018 |
| 3.270% |
| 12/19/22 |
| 4,940 |
| 5,027 |
|
2,5,6 | CARDS II Trust, 1M USD LIBOR + 0.370% |
| 2.854% |
| 4/18/22 |
| 18,300 |
| 18,300 |
|
2 | CarMax Auto Owner Trust 2018-4 |
| 3.110% |
| 2/15/22 |
| 35,130 |
| 35,238 |
|
2 | CarMax Auto Owner Trust 2018-4 |
| 3.360% |
| 9/15/23 |
| 20,455 |
| 20,824 |
|
Vanguard® Wellesley Income Fund
Schedule of Investments
March 31, 2019
|
|
| Coupon |
| Maturity |
| Face | ) | Market | ) |
|
|
|
|
|
|
|
|
|
|
|
2,5,6 | Cent CLO, 3M USD LIBOR + 1.150% |
| 3.640% |
| 10/25/28 |
| 16,895 |
| 16,884 |
|
2,5 | Chesapeake Funding II LLC |
| 3.390% |
| 1/15/31 |
| 32,055 |
| 32,259 |
|
2,5 | Chesapeake Funding II LLC 2017-2A |
| 1.990% |
| 5/15/29 |
| 5,955 |
| 5,909 |
|
2,5 | Chesapeake Funding II LLC 2018-1 |
| 3.040% |
| 4/15/30 |
| 40,378 |
| 40,519 |
|
§,2,5 | COLT 2019-2 Mortgage Loan Trust |
| 3.337% |
| 5/25/49 |
| 19,110 |
| 19,110 |
|
2 | COMM 2012-CCRE2 Mortgage Trust |
| 3.147% |
| 8/15/45 |
| 16,040 |
| 16,234 |
|
§,2,5 | DB Master Finance LLC |
| 3.787% |
| 5/20/49 |
| 15,145 |
| 15,145 |
|
§,2,5 | DB Master Finance LLC |
| 4.021% |
| 5/20/49 |
| 13,530 |
| 13,530 |
|
5 | DNB Boligkreditt AS |
| 2.500% |
| 3/28/22 |
| 24,355 |
| 24,268 |
|
2,5 | Enterprise Fleet Financing LLC |
| 3.100% |
| 10/20/23 |
| 3,225 |
| 3,232 |
|
2,5 | Enterprise Fleet Financing LLC Series 2017-1 |
| 2.130% |
| 7/20/22 |
| 3,302 |
| 3,290 |
|
2,5 | Enterprise Fleet Financing LLC Series 2018-1 |
| 2.870% |
| 10/20/23 |
| 27,412 |
| 27,364 |
|
2,5 | Enterprise Fleet Financing LLC Series 2018-3 |
| 3.380% |
| 5/20/24 |
| 18,860 |
| 19,024 |
|
2,5 | Enterprise Fleet Financing LLC Series 2019-1 |
| 2.980% |
| 10/22/24 |
| 24,850 |
| 24,850 |
|
2,5 | Exeter Automobile Receivables Trust 2018-3 |
| 2.900% |
| 1/18/22 |
| 6,773 |
| 6,773 |
|
2,5 | Ford Credit Floorplan Master Owner Trust A |
| 2.090% |
| 3/15/22 |
| 10,250 |
| 10,186 |
|
2,5 | Golden Credit Card Trust |
| 1.980% |
| 4/15/22 |
| 29,050 |
| 28,779 |
|
2,5 | Golden Credit Card Trust 2018-1A |
| 2.620% |
| 1/15/23 |
| 18,500 |
| 18,447 |
|
2,5 | Hyundai Auto Lease Securitization Trust 2018-A |
| 2.550% |
| 8/17/20 |
| 13,933 |
| 13,921 |
|
2,5,6 | Madison Park Funding XII Ltd., 3M USD LIBOR + 1.260% |
| 4.021% |
| 7/20/26 |
| 23,443 |
| 23,456 |
|
2,5,6 | Madison Park Funding XIII Ltd., 3M USD LIBOR + 0.950% |
| 3.711% |
| 4/19/30 |
| 34,150 |
| 33,882 |
|
2,5 | MAPS Ltd. |
| 4.458% |
| 3/15/44 |
| 6,790 |
| 6,879 |
|
2,5,6 | Master Credit Card Trust II Series 2018-1A, 1M USD LIBOR + 0.490% |
| 2.977% |
| 7/21/24 |
| 36,965 |
| 36,827 |
|
2,5,6 | Mercedes-Benz Master Owner Trust 2016-B, 1M USD LIBOR + 0.700% |
| 3.184% |
| 5/17/21 |
| 13,575 |
| 13,582 |
|
5 | National Australia Bank Ltd. |
| 2.400% |
| 12/7/21 |
| 75,600 |
| 74,927 |
|
2 | Nissan Auto Lease Trust 2018-B |
| 3.250% |
| 9/15/21 |
| 15,895 |
| 16,032 |
|
2,5 | OBP Depositor LLC Trust 2010-OBP |
| 4.646% |
| 7/15/45 |
| 23,260 |
| 23,646 |
|
2,5 | OneMain Direct Auto Receivables Trust |
| 3.430% |
| 12/16/24 |
| 35,475 |
| 35,859 |
|
2,5 | OneMain Direct Auto Receivables Trust 2017-2 |
| 2.310% |
| 12/14/21 |
| 20,524 |
| 20,451 |
|
2,5 | OneMain Financial Issuance Trust 2016-1A |
| 3.660% |
| 2/20/29 |
| 9,817 |
| 9,858 |
|
2,5 | OneMain Financial Issuance Trust 2016-2 |
| 4.100% |
| 3/20/28 |
| 2,409 |
| 2,412 |
|
2,5 | OneMain Financial Issuance Trust 2017-1 |
| 2.370% |
| 9/14/32 |
| 12,784 |
| 12,689 |
|
2,5 | OneMain Financial Issuance Trust 2019-1 |
| 3.480% |
| 2/14/31 |
| 33,750 |
| 34,057 |
|
2 | Santander Drive Auto Receivables Trust 2018-5 |
| 2.970% |
| 7/15/21 |
| 33,925 |
| 33,937 |
|
2 | Santander Drive Auto Receivables Trust 2018-5 |
| 3.190% |
| 3/15/22 |
| 6,540 |
| 6,572 |
|
2,5 | Securitized Term Auto Receivables Trust 2018-2 |
| 3.060% |
| 2/25/21 |
| 16,547 |
| 16,565 |
|
2,5 | Securitized Term Auto Receivables Trust 2018-2 |
| 3.325% |
| 8/25/22 |
| 18,220 |
| 18,371 |
|
2,5,6 | Seneca Park CLO Ltd. 2014-1, 3M USD LIBOR + 1.120% |
| 3.893% |
| 7/17/26 |
| 17,314 |
| 17,326 |
|
2,5 | SFAVE Commercial Mortgage Securities Trust 2015-5AVE |
| 4.144% |
| 1/5/43 |
| 22,000 |
| 21,886 |
|
2,5 | SoFi Consumer Loan Program 2018-2 Trust |
| 2.930% |
| 4/26/27 |
| 12,100 |
| 12,083 |
|
2,5 | SoFi Consumer Loan Program 2018-4 Trust |
| 3.540% |
| 11/26/27 |
| 26,184 |
| 26,313 |
|
2,5 | SoFi Consumer Loan Program 2019-1 Trust |
| 3.240% |
| 2/25/28 |
| 29,525 |
| 29,643 |
|
2,5 | Springleaf Funding Trust |
| 3.160% |
| 11/15/24 |
| 5,403 |
| 5,402 |
|
2,5 | Springleaf Funding Trust 2015-B |
| 3.480% |
| 5/15/28 |
| 19,420 |
| 19,489 |
|
2,5,6 | Symphony CLO XIV Ltd., 3M USD LIBOR + 1.280% |
| 4.077% |
| 7/14/26 |
| 34,612 |
| 34,609 |
|
2,5,6 | Thacher Park CLO Ltd., 3M USD LIBOR + 1.160% |
| 3.921% |
| 10/20/26 |
| 15,891 |
| 15,908 |
|
5 | Toronto-Dominion Bank |
| 2.500% |
| 1/18/22 |
| 77,500 |
| 77,178 |
|
2,5 | Towd Point Mortgage Trust 2016-3 |
| 2.250% |
| 4/25/56 |
| 1,702 |
| 1,669 |
|
2,5 | Trillium Credit Card Trust II 2019-2A |
| 3.038% |
| 1/26/24 |
| 41,965 |
| 42,157 |
|
2 | Utility Debt Securitization Authority Series 2013T |
| 3.435% |
| 12/15/25 |
| 6,775 |
| 6,855 |
|
2,5 | Vantage Data Centers Issuer, LLC 2018-1A |
| 4.072% |
| 2/16/43 |
| 17,968 |
| 18,145 |
|
2 | Verizon Owner Trust 2018-A |
| 3.230% |
| 4/20/23 |
| 20,670 |
| 20,940 |
|
2,5,6 | Voya CLO 2014-1 Ltd., 3M USD LIBOR + 0.990% |
| 3.770% |
| 4/18/31 |
| 16,725 |
| 16,465 |
|
Total Asset-Backed/Commercial Mortgage-Backed Securities (Cost $1,519,512) |
|
|
| 1,521,493 |
|
Vanguard® Wellesley Income Fund
Schedule of Investments
March 31, 2019
|
|
| Coupon |
| Maturity |
| Face | ) | Market | ) |
Corporate Bonds (42.7%) |
|
|
|
|
|
|
|
|
| |
Finance (17.4%)
|
|
|
|
|
|
|
|
|
| |
| Banking (14.4%) |
|
|
|
|
|
|
|
|
|
5 | ABN AMRO Bank NV |
| 2.450% |
| 6/4/20 |
| 20,406 |
| 20,325 |
|
| American Express Credit Corp. |
| 2.250% |
| 8/15/19 |
| 24,000 |
| 23,980 |
|
| American Express Credit Corp. |
| 2.700% |
| 3/3/22 |
| 83,055 |
| 83,185 |
|
| Banco Santander SA |
| 3.125% |
| 2/23/23 |
| 28,600 |
| 28,139 |
|
| Banco Santander SA |
| 3.848% |
| 4/12/23 |
| 17,000 |
| 17,130 |
|
| Bank of America Corp. |
| 3.300% |
| 1/11/23 |
| 18,875 |
| 19,162 |
|
2 | Bank of America Corp. |
| 2.816% |
| 7/21/23 |
| 60,600 |
| 60,173 |
|
| Bank of America Corp. |
| 4.100% |
| 7/24/23 |
| 47,670 |
| 49,949 |
|
| Bank of America Corp. |
| 3.004% |
| 12/20/23 |
| 42,652 |
| 42,464 |
|
| Bank of America Corp. |
| 4.125% |
| 1/22/24 |
| 7,500 |
| 7,867 |
|
| Bank of America Corp. |
| 4.000% |
| 1/22/25 |
| 26,225 |
| 26,809 |
|
2 | Bank of America Corp. |
| 3.593% |
| 7/21/28 |
| 37,995 |
| 37,889 |
|
| Bank of America Corp. |
| 3.419% |
| 12/20/28 |
| 48,603 |
| 47,515 |
|
2 | Bank of America Corp. |
| 4.271% |
| 7/23/29 |
| 72,640 |
| 75,578 |
|
2 | Bank of America Corp. |
| 3.974% |
| 2/7/30 |
| 69,430 |
| 70,735 |
|
| Bank of America Corp. |
| 6.110% |
| 1/29/37 |
| 30,000 |
| 35,550 |
|
| Bank of America Corp. |
| 5.875% |
| 2/7/42 |
| 8,770 |
| 10,944 |
|
| Bank of America Corp. |
| 5.000% |
| 1/21/44 |
| 24,180 |
| 27,263 |
|
2 | Bank of America Corp. |
| 3.946% |
| 1/23/49 |
| 5,290 |
| 5,171 |
|
2 | Bank of America Corp. |
| 4.330% |
| 3/15/50 |
| 59,475 |
| 60,990 |
|
| Bank of Montreal |
| 3.100% |
| 4/13/21 |
| 46,940 |
| 47,358 |
|
| Bank of New York Mellon Corp. |
| 5.450% |
| 5/15/19 |
| 49,465 |
| 49,627 |
|
| Bank of New York Mellon Corp. |
| 2.150% |
| 2/24/20 |
| 49,755 |
| 49,495 |
|
| Bank of New York Mellon Corp. |
| 2.200% |
| 8/16/23 |
| 32,698 |
| 31,776 |
|
| Bank of New York Mellon Corp. |
| 3.000% |
| 2/24/25 |
| 22,710 |
| 22,690 |
|
6 | Bank of New York Mellon Corp., 3M USD LIBOR + 1.050% |
| 3.800% |
| 10/30/23 |
| 43,060 |
| 43,497 |
|
| Bank of Nova Scotia |
| 2.450% |
| 3/22/21 |
| 39,905 |
| 39,802 |
|
| Bank of Nova Scotia |
| 2.800% |
| 7/21/21 |
| 58,100 |
| 58,170 |
|
| Bank One Corp. |
| 7.750% |
| 7/15/25 |
| 25,000 |
| 30,394 |
|
5 | Banque Federative du Credit Mutuel SA |
| 2.750% |
| 10/15/20 |
| 37,820 |
| 37,704 |
|
| Barclays Bank plc |
| 5.140% |
| 10/14/20 |
| 7,935 |
| 8,120 |
|
6 | Barclays Bank plc, 3M USD LIBOR + 1.380% |
| 4.063% |
| 5/16/24 |
| 36,710 |
| 35,699 |
|
| BB&T Corp. |
| 5.250% |
| 11/1/19 |
| 19,000 |
| 19,253 |
|
| BB&T Corp. |
| 3.200% |
| 9/3/21 |
| 25,210 |
| 25,445 |
|
| BB&T Corp. |
| 3.700% |
| 6/5/25 |
| 48,000 |
| 49,778 |
|
5 | BNP Paribas SA |
| 2.950% |
| 5/23/22 |
| 4,365 |
| 4,345 |
|
| BNP Paribas SA |
| 3.250% |
| 3/3/23 |
| 4,190 |
| 4,248 |
|
5 | BNP Paribas SA |
| 3.800% |
| 1/10/24 |
| 76,490 |
| 76,981 |
|
5 | BNP Paribas SA |
| 3.375% |
| 1/9/25 |
| 61,070 |
| 59,639 |
|
5 | BNP Paribas SA |
| 3.500% |
| 11/16/27 |
| 82,370 |
| 79,555 |
|
5 | BNP Paribas SA |
| 4.400% |
| 8/14/28 |
| 57,800 |
| 59,536 |
|
| BPCE SA |
| 2.500% |
| 7/15/19 |
| 42,100 |
| 42,024 |
|
5 | BPCE SA |
| 5.700% |
| 10/22/23 |
| 10,670 |
| 11,367 |
|
| BPCE SA |
| 4.000% |
| 4/15/24 |
| 25,885 |
| 26,766 |
|
5 | BPCE SA |
| 5.150% |
| 7/21/24 |
| 37,185 |
| 38,826 |
|
5 | BPCE SA |
| 3.500% |
| 10/23/27 |
| 64,900 |
| 62,926 |
|
| Branch Banking & Trust Co. |
| 2.625% |
| 1/15/22 |
| 61,500 |
| 61,490 |
|
6 | Canadian Imperial Bank of Commerce, 3M USD LIBOR + 0.720% |
| 3.335% |
| 6/16/22 |
| 57,790 |
| 57,915 |
|
| Capital One Financial Corp. |
| 2.500% |
| 5/12/20 |
| 27,000 |
| 26,907 |
|
| Capital One Financial Corp. |
| 4.750% |
| 7/15/21 |
| 36,165 |
| 37,898 |
|
| Capital One Financial Corp. |
| 3.750% |
| 4/24/24 |
| 60,945 |
| 61,953 |
|
| Capital One Financial Corp. |
| 3.200% |
| 2/5/25 |
| 9,055 |
| 8,884 |
|
| Citibank NA |
| 3.050% |
| 5/1/20 |
| 67,750 |
| 68,031 |
|
| Citigroup Inc. |
| 2.550% |
| 4/8/19 |
| 30,000 |
| 29,999 |
|
| Citigroup Inc. |
| 2.500% |
| 7/29/19 |
| 29,565 |
| 29,542 |
|
| Citigroup Inc. |
| 2.400% |
| 2/18/20 |
| 87,550 |
| 87,243 |
|
| Citigroup Inc. |
| 4.500% |
| 1/14/22 |
| 30,140 |
| 31,451 |
|
| Citigroup Inc. |
| 4.125% |
| 7/25/28 |
| 45,085 |
| 45,268 |
|
Vanguard® Wellesley Income Fund
Schedule of Investments
March 31, 2019
|
|
| Coupon |
| Maturity |
| Face | ) | Market | ) |
|
|
|
|
|
|
|
|
|
|
|
2 | Citigroup Inc. |
| 3.520% |
| 10/27/28 |
| 72,260 |
| 71,094 |
|
| Citigroup Inc. |
| 6.625% |
| 6/15/32 |
| 9,000 |
| 11,110 |
|
2 | Citigroup Inc. |
| 3.878% |
| 1/24/39 |
| 37,225 |
| 36,194 |
|
| Citigroup Inc. |
| 8.125% |
| 7/15/39 |
| 1,883 |
| 2,814 |
|
| Citigroup Inc. |
| 5.875% |
| 1/30/42 |
| 7,460 |
| 9,158 |
|
| Citigroup Inc. |
| 5.300% |
| 5/6/44 |
| 12,142 |
| 13,323 |
|
| Citigroup Inc. |
| 4.750% |
| 5/18/46 |
| 15,410 |
| 15,961 |
|
| Citigroup Inc. |
| 4.650% |
| 7/23/48 |
| 35,465 |
| 37,950 |
|
| Commonwealth Bank of Australia |
| 2.300% |
| 3/12/20 |
| 21,255 |
| 21,177 |
|
| Compass Bank |
| 2.750% |
| 9/29/19 |
| 12,250 |
| 12,237 |
|
5 | Credit Agricole SA |
| 2.500% |
| 4/15/19 |
| 45,420 |
| 45,412 |
|
5 | Credit Agricole SA |
| 3.750% |
| 4/24/23 |
| 31,690 |
| 31,973 |
|
5 | Credit Agricole SA |
| 3.250% |
| 10/4/24 |
| 30,590 |
| 30,088 |
|
5,6 | Credit Agricole SA, 3M USD LIBOR + 1.020% |
| 3.799% |
| 4/24/23 |
| 16,500 |
| 16,314 |
|
| Credit Suisse AG |
| 2.300% |
| 5/28/19 |
| 18,975 |
| 18,967 |
|
| Credit Suisse AG |
| 5.300% |
| 8/13/19 |
| 9,000 |
| 9,083 |
|
| Credit Suisse AG |
| 3.000% |
| 10/29/21 |
| 53,710 |
| 53,952 |
|
| Credit Suisse AG |
| 3.625% |
| 9/9/24 |
| 3,955 |
| 4,009 |
|
5 | Credit Suisse Group AG |
| 3.574% |
| 1/9/23 |
| 40,835 |
| 40,938 |
|
2,5 | Credit Suisse Group AG |
| 4.207% |
| 6/12/24 |
| 12,285 |
| 12,562 |
|
2,5 | Credit Suisse Group AG |
| 3.869% |
| 1/12/29 |
| 11,050 |
| 10,846 |
|
5,6 | Credit Suisse Group AG, 3M USD LIBOR + 1.240% |
| 3.837% |
| 6/12/24 |
| 24,825 |
| 24,636 |
|
| Credit Suisse Group Funding Guernsey Ltd. |
| 3.125% |
| 12/10/20 |
| 25,000 |
| 25,040 |
|
| Credit Suisse Group Funding Guernsey Ltd. |
| 3.800% |
| 9/15/22 |
| 45,685 |
| 46,373 |
|
| Credit Suisse Group Funding Guernsey Ltd. |
| 3.750% |
| 3/26/25 |
| 57,400 |
| 57,763 |
|
5 | Danske Bank A/S |
| 2.000% |
| 9/8/21 |
| 41,970 |
| 40,470 |
|
5 | Danske Bank A/S |
| 5.000% |
| 1/12/22 |
| 20,770 |
| 21,280 |
|
5 | Danske Bank A/S |
| 3.875% |
| 9/12/23 |
| 45,515 |
| 44,719 |
|
5 | Danske Bank A/S |
| 5.375% |
| 1/12/24 |
| 27,035 |
| 28,180 |
|
| Deutsche Bank AG |
| 2.700% |
| 7/13/20 |
| 24,575 |
| 24,310 |
|
| Deutsche Bank AG |
| 3.150% |
| 1/22/21 |
| 51,760 |
| 50,985 |
|
| Deutsche Bank AG |
| 4.250% |
| 10/14/21 |
| 45,940 |
| 46,207 |
|
5 | DNB Bank ASA |
| 2.375% |
| 6/2/21 |
| 42,450 |
| 41,970 |
|
| Fifth Third Bank |
| 2.875% |
| 10/1/21 |
| 8,780 |
| 8,782 |
|
| Fifth Third Bank |
| 3.850% |
| 3/15/26 |
| 29,295 |
| 29,768 |
|
| Goldman Sachs Group Inc. |
| 2.875% |
| 2/25/21 |
| 25,990 |
| 26,018 |
|
| Goldman Sachs Group Inc. |
| 2.625% |
| 4/25/21 |
| 9,270 |
| 9,222 |
|
| Goldman Sachs Group Inc. |
| 5.250% |
| 7/27/21 |
| 70,165 |
| 73,811 |
|
| Goldman Sachs Group Inc. |
| 5.750% |
| 1/24/22 |
| 67,095 |
| 71,958 |
|
2 | Goldman Sachs Group Inc. |
| 2.876% |
| 10/31/22 |
| 65,405 |
| 64,794 |
|
| Goldman Sachs Group Inc. |
| 3.625% |
| 1/22/23 |
| 7,715 |
| 7,862 |
|
| Goldman Sachs Group Inc. |
| 3.500% |
| 1/23/25 |
| 16,660 |
| 16,649 |
|
2 | Goldman Sachs Group Inc. |
| 3.272% |
| 9/29/25 |
| 44,260 |
| 43,648 |
|
| Goldman Sachs Group Inc. |
| 4.250% |
| 10/21/25 |
| 13,000 |
| 13,320 |
|
| Goldman Sachs Group Inc. |
| 3.500% |
| 11/16/26 |
| 48,000 |
| 47,330 |
|
| Goldman Sachs Group Inc. |
| 3.850% |
| 1/26/27 |
| 36,525 |
| 36,692 |
|
2 | Goldman Sachs Group Inc. |
| 3.691% |
| 6/5/28 |
| 14,525 |
| 14,382 |
|
2 | Goldman Sachs Group Inc. |
| 3.814% |
| 4/23/29 |
| 98,080 |
| 96,986 |
|
2 | Goldman Sachs Group Inc. |
| 4.223% |
| 5/1/29 |
| 54,990 |
| 56,251 |
|
| Goldman Sachs Group Inc. |
| 6.250% |
| 2/1/41 |
| 35,790 |
| 44,210 |
|
| Goldman Sachs Group Inc. |
| 4.800% |
| 7/8/44 |
| 19,895 |
| 21,082 |
|
| Goldman Sachs Group Inc. |
| 4.750% |
| 10/21/45 |
| 15,895 |
| 16,881 |
|
5 | HSBC Bank plc |
| 4.750% |
| 1/19/21 |
| 42,960 |
| 44,412 |
|
| HSBC Bank USA NA |
| 5.875% |
| 11/1/34 |
| 21,000 |
| 25,068 |
|
| HSBC Holdings plc |
| 3.400% |
| 3/8/21 |
| 50,000 |
| 50,479 |
|
| HSBC Holdings plc |
| 4.000% |
| 3/30/22 |
| 10,870 |
| 11,209 |
|
2 | HSBC Holdings plc |
| 3.262% |
| 3/13/23 |
| 25,625 |
| 25,699 |
|
| HSBC Holdings plc |
| 3.600% |
| 5/25/23 |
| 56,130 |
| 57,144 |
|
| HSBC Holdings plc |
| 3.900% |
| 5/25/26 |
| 7,915 |
| 7,993 |
|
2 | HSBC Holdings plc |
| 4.041% |
| 3/13/28 |
| 27,520 |
| 27,728 |
|
2 | HSBC Holdings plc |
| 4.583% |
| 6/19/29 |
| 40,190 |
| 42,195 |
|
| HSBC Holdings plc |
| 7.625% |
| 5/17/32 |
| 15,800 |
| 20,929 |
|
| HSBC Holdings plc |
| 6.500% |
| 5/2/36 |
| 22,000 |
| 27,027 |
|
| HSBC Holdings plc |
| 6.100% |
| 1/14/42 |
| 43,680 |
| 56,381 |
|
Vanguard® Wellesley Income Fund
Schedule of Investments
March 31, 2019
|
|
| Coupon |
| Maturity |
| Face | ) | Market | ) |
|
|
|
|
|
|
|
|
|
|
|
| HSBC Holdings plc |
| 5.250% |
| 3/14/44 |
| 5,795 |
| 6,415 |
|
6 | HSBC Holdings plc, 3M USD LIBOR + 1.000% |
| 3.683% |
| 5/18/24 |
| 26,495 |
| 26,261 |
|
| HSBC USA Inc. |
| 2.350% |
| 3/5/20 |
| 93,430 |
| 93,068 |
|
| HSBC USA Inc. |
| 3.500% |
| 6/23/24 |
| 18,355 |
| 18,581 |
|
| Huntington Bancshares Inc. |
| 3.150% |
| 3/14/21 |
| 26,950 |
| 27,064 |
|
| Huntington National Bank |
| 2.200% |
| 4/1/19 |
| 17,850 |
| 17,849 |
|
| Huntington National Bank |
| 2.400% |
| 4/1/20 |
| 36,530 |
| 36,404 |
|
| ING Groep NV |
| 3.150% |
| 3/29/22 |
| 13,170 |
| 13,187 |
|
| ING Groep NV |
| 3.950% |
| 3/29/27 |
| 33,605 |
| 33,716 |
|
| JPMorgan Chase & Co. |
| 6.300% |
| 4/23/19 |
| 68,310 |
| 68,451 |
|
| JPMorgan Chase & Co. |
| 2.550% |
| 3/1/21 |
| 26,000 |
| 25,933 |
|
| JPMorgan Chase & Co. |
| 4.625% |
| 5/10/21 |
| 14,000 |
| 14,526 |
|
| JPMorgan Chase & Co. |
| 4.350% |
| 8/15/21 |
| 33,285 |
| 34,462 |
|
| JPMorgan Chase & Co. |
| 4.500% |
| 1/24/22 |
| 18,260 |
| 19,082 |
|
| JPMorgan Chase & Co. |
| 3.250% |
| 9/23/22 |
| 22,380 |
| 22,725 |
|
| JPMorgan Chase & Co. |
| 3.375% |
| 5/1/23 |
| 36,370 |
| 36,720 |
|
| JPMorgan Chase & Co. |
| 3.875% |
| 2/1/24 |
| 11,200 |
| 11,662 |
|
| JPMorgan Chase & Co. |
| 3.900% |
| 7/15/25 |
| 11,560 |
| 12,023 |
|
| JPMorgan Chase & Co. |
| 3.300% |
| 4/1/26 |
| 26,730 |
| 26,794 |
|
| JPMorgan Chase & Co. |
| 2.950% |
| 10/1/26 |
| 75,000 |
| 73,310 |
|
| JPMorgan Chase & Co. |
| 4.125% |
| 12/15/26 |
| 24,400 |
| 25,135 |
|
| JPMorgan Chase & Co. |
| 4.250% |
| 10/1/27 |
| 9,275 |
| 9,650 |
|
2 | JPMorgan Chase & Co. |
| 4.452% |
| 12/5/29 |
| 40,000 |
| 42,622 |
|
| JPMorgan Chase & Co. |
| 5.600% |
| 7/15/41 |
| 70,000 |
| 85,011 |
|
| JPMorgan Chase & Co. |
| 5.400% |
| 1/6/42 |
| 16,235 |
| 19,258 |
|
| JPMorgan Chase & Co. |
| 5.625% |
| 8/16/43 |
| 13,500 |
| 16,030 |
|
| JPMorgan Chase & Co. |
| 4.950% |
| 6/1/45 |
| 12,000 |
| 13,258 |
|
2 | JPMorgan Chase & Co. |
| 3.964% |
| 11/15/48 |
| 160,000 |
| 156,576 |
|
5 | Macquarie Bank Ltd. |
| 2.400% |
| 1/21/20 |
| 10,195 |
| 10,161 |
|
2,5 | Macquarie Group Ltd. |
| 4.150% |
| 3/27/24 |
| 50,725 |
| 51,613 |
|
| Manufacturers & Traders Trust Co. |
| 2.100% |
| 2/6/20 |
| 14,540 |
| 14,462 |
|
| Manufacturers & Traders Trust Co. |
| 2.900% |
| 2/6/25 |
| 20,085 |
| 20,015 |
|
| Morgan Stanley |
| 7.300% |
| 5/13/19 |
| 53,955 |
| 54,239 |
|
| Morgan Stanley |
| 2.375% |
| 7/23/19 |
| 35,000 |
| 34,995 |
|
| Morgan Stanley |
| 5.500% |
| 7/24/20 |
| 15,000 |
| 15,512 |
|
| Morgan Stanley |
| 5.750% |
| 1/25/21 |
| 13,900 |
| 14,616 |
|
| Morgan Stanley |
| 2.500% |
| 4/21/21 |
| 30,630 |
| 30,445 |
|
| Morgan Stanley |
| 2.625% |
| 11/17/21 |
| 30,200 |
| 30,010 |
|
| Morgan Stanley |
| 2.750% |
| 5/19/22 |
| 63,830 |
| 63,536 |
|
| Morgan Stanley |
| 3.750% |
| 2/25/23 |
| 23,000 |
| 23,611 |
|
| Morgan Stanley |
| 3.875% |
| 4/29/24 |
| 22,050 |
| 22,626 |
|
| Morgan Stanley |
| 4.000% |
| 7/23/25 |
| 20,805 |
| 21,458 |
|
| Morgan Stanley |
| 3.125% |
| 7/27/26 |
| 36,950 |
| 36,011 |
|
| Morgan Stanley |
| 4.350% |
| 9/8/26 |
| 15,000 |
| 15,420 |
|
| Morgan Stanley |
| 3.625% |
| 1/20/27 |
| 31,000 |
| 31,090 |
|
2 | Morgan Stanley |
| 3.772% |
| 1/24/29 |
| 56,830 |
| 56,830 |
|
| Morgan Stanley |
| 7.250% |
| 4/1/32 |
| 51,100 |
| 68,415 |
|
| Morgan Stanley |
| 4.300% |
| 1/27/45 |
| 24,705 |
| 25,092 |
|
5 | NBK SPC Ltd. |
| 2.750% |
| 5/30/22 |
| 56,875 |
| 55,823 |
|
| PNC Bank NA |
| 3.300% |
| 10/30/24 |
| 14,645 |
| 14,854 |
|
| PNC Bank NA |
| 2.950% |
| 2/23/25 |
| 34,775 |
| 34,653 |
|
| PNC Bank NA |
| 3.100% |
| 10/25/27 |
| 42,485 |
| 42,395 |
|
| PNC Bank NA |
| 3.250% |
| 1/22/28 |
| 60,960 |
| 61,541 |
|
| PNC Financial Services Group Inc. |
| 3.900% |
| 4/29/24 |
| 40,150 |
| 41,271 |
|
| Royal Bank of Canada |
| 2.500% |
| 1/19/21 |
| 24,750 |
| 24,739 |
|
| Royal Bank of Canada |
| 2.750% |
| 2/1/22 |
| 44,630 |
| 44,846 |
|
| Santander Holdings USA Inc. |
| 2.650% |
| 4/17/20 |
| 19,225 |
| 19,165 |
|
| Santander Holdings USA Inc. |
| 3.700% |
| 3/28/22 |
| 28,405 |
| 28,722 |
|
| Santander Holdings USA Inc. |
| 3.400% |
| 1/18/23 |
| 26,105 |
| 26,048 |
|
5 | Skandinaviska Enskilda Banken AB |
| 2.450% |
| 5/27/20 |
| 50,900 |
| 50,718 |
|
5 | Societe Generale SA |
| 3.250% |
| 1/12/22 |
| 55,070 |
| 54,801 |
|
2 | State Street Corp. |
| 2.653% |
| 5/15/23 |
| 31,280 |
| 31,103 |
|
| SunTrust Bank |
| 3.300% |
| 5/15/26 |
| 11,955 |
| 11,871 |
|
| SunTrust Banks Inc. |
| 2.900% |
| 3/3/21 |
| 34,300 |
| 34,424 |
|
Vanguard® Wellesley Income Fund
Schedule of Investments
March 31, 2019
|
|
| Coupon |
| Maturity |
| Face | ) | Market | ) |
|
|
|
|
|
|
|
|
|
|
|
| Svenska Handelsbanken AB |
| 1.875% |
| 9/7/21 |
| 37,750 |
| 36,947 |
|
| Synchrony Bank |
| 3.650% |
| 5/24/21 |
| 46,290 |
| 46,694 |
|
| Toronto-Dominion Bank |
| 2.500% |
| 12/14/20 |
| 97,700 |
| 97,334 |
|
5 | UBS AG |
| 2.200% |
| 6/8/20 |
| 27,590 |
| 27,437 |
|
5 | UBS AG |
| 4.500% |
| 6/26/48 |
| 28,055 |
| 31,450 |
|
5 | UBS Group Funding Jersey Ltd. |
| 2.950% |
| 9/24/20 |
| 36,710 |
| 36,712 |
|
5 | UBS Group Funding Jersey Ltd. |
| 3.000% |
| 4/15/21 |
| 58,970 |
| 58,951 |
|
5 | UBS Group Funding Jersey Ltd. |
| 2.650% |
| 2/1/22 |
| 46,000 |
| 45,486 |
|
| US Bancorp |
| 2.625% |
| 1/24/22 |
| 47,510 |
| 47,591 |
|
| US Bancorp |
| 3.700% |
| 1/30/24 |
| 39,005 |
| 40,612 |
|
| US Bancorp |
| 2.375% |
| 7/22/26 |
| 45,000 |
| 43,019 |
|
| Wachovia Corp. |
| 6.605% |
| 10/1/25 |
| 15,000 |
| 17,439 |
|
| Wells Fargo & Co. |
| 2.150% |
| 1/30/20 |
| 38,370 |
| 38,184 |
|
| Wells Fargo & Co. |
| 3.000% |
| 1/22/21 |
| 27,580 |
| 27,712 |
|
| Wells Fargo & Co. |
| 4.600% |
| 4/1/21 |
| 40,000 |
| 41,449 |
|
| Wells Fargo & Co. |
| 3.500% |
| 3/8/22 |
| 54,840 |
| 55,973 |
|
| Wells Fargo & Co. |
| 3.069% |
| 1/24/23 |
| 10,465 |
| 10,489 |
|
| Wells Fargo & Co. |
| 3.450% |
| 2/13/23 |
| 39,400 |
| 39,924 |
|
| Wells Fargo & Co. |
| 4.480% |
| 1/16/24 |
| 34,444 |
| 36,447 |
|
| Wells Fargo & Co. |
| 3.750% |
| 1/24/24 |
| 30,455 |
| 31,317 |
|
| Wells Fargo & Co. |
| 3.000% |
| 2/19/25 |
| 28,660 |
| 28,397 |
|
| Wells Fargo & Co. |
| 3.550% |
| 9/29/25 |
| 27,170 |
| 27,737 |
|
| Wells Fargo & Co. |
| 3.000% |
| 4/22/26 |
| 36,830 |
| 35,819 |
|
| Wells Fargo & Co. |
| 4.100% |
| 6/3/26 |
| 45,700 |
| 46,576 |
|
| Wells Fargo & Co. |
| 3.000% |
| 10/23/26 |
| 6,435 |
| 6,268 |
|
| Wells Fargo & Co. |
| 5.606% |
| 1/15/44 |
| 28,551 |
| 32,911 |
|
| Wells Fargo & Co. |
| 4.650% |
| 11/4/44 |
| 20,735 |
| 21,301 |
|
| Wells Fargo & Co. |
| 4.900% |
| 11/17/45 |
| 16,060 |
| 17,260 |
|
| Wells Fargo & Co. |
| 4.400% |
| 6/14/46 |
| 36,200 |
| 36,200 |
|
| Wells Fargo & Co. |
| 4.750% |
| 12/7/46 |
| 38,790 |
| 40,759 |
|
| Westpac Banking Corp. |
| 2.300% |
| 5/26/20 |
| 22,948 |
| 22,858 |
|
|
Brokerage (0.1%) |
|
|
|
|
|
|
|
|
|
| Ameriprise Financial Inc. |
| 5.300% |
| 3/15/20 |
| 6,625 |
| 6,783 |
|
| Charles Schwab Corp. |
| 3.200% |
| 3/2/27 |
| 19,790 |
| 19,836 |
|
|
Insurance (2.6%) |
|
|
|
|
|
|
|
|
|
| Aetna Inc. |
| 2.800% |
| 6/15/23 |
| 32,080 |
| 31,540 |
|
5 | AIG Global Funding |
| 2.700% |
| 12/15/21 |
| 41,815 |
| 41,345 |
|
| American International Group Inc. |
| 4.250% |
| 3/15/29 |
| 33,365 |
| 33,726 |
|
| Anthem Inc. |
| 3.700% |
| 8/15/21 |
| 25,635 |
| 26,109 |
|
| Anthem Inc. |
| 3.300% |
| 1/15/23 |
| 20,000 |
| 20,218 |
|
| Anthem Inc. |
| 3.650% |
| 12/1/27 |
| 13,150 |
| 13,128 |
|
| Anthem Inc. |
| 4.101% |
| 3/1/28 |
| 42,145 |
| 43,414 |
|
| Anthem Inc. |
| 4.650% |
| 8/15/44 |
| 14,857 |
| 15,380 |
|
| Anthem Inc. |
| 4.375% |
| 12/1/47 |
| 15,905 |
| 15,815 |
|
| Berkshire Hathaway Inc. |
| 2.750% |
| 3/15/23 |
| 36,055 |
| 36,302 |
|
| Berkshire Hathaway Inc. |
| 3.125% |
| 3/15/26 |
| 23,645 |
| 23,857 |
|
| Chubb INA Holdings Inc. |
| 5.900% |
| 6/15/19 |
| 15,000 |
| 15,090 |
|
| Chubb INA Holdings Inc. |
| 2.300% |
| 11/3/20 |
| 5,235 |
| 5,204 |
|
| Chubb INA Holdings Inc. |
| 3.350% |
| 5/15/24 |
| 20,340 |
| 20,772 |
|
| Chubb INA Holdings Inc. |
| 3.350% |
| 5/3/26 |
| 12,280 |
| 12,477 |
|
| Chubb INA Holdings Inc. |
| 4.350% |
| 11/3/45 |
| 24,795 |
| 26,934 |
|
5 | Cigna Corp. |
| 4.375% |
| 10/15/28 |
| 18,115 |
| 18,803 |
|
5 | Cigna Corp. |
| 4.800% |
| 8/15/38 |
| 25,725 |
| 26,438 |
|
5 | Cigna Corp. |
| 4.900% |
| 12/15/48 |
| 25,850 |
| 26,744 |
|
| Cigna Holding Co. |
| 3.250% |
| 4/15/25 |
| 30,765 |
| 30,501 |
|
5 | Five Corners Funding Trust |
| 4.419% |
| 11/15/23 |
| 5,320 |
| 5,604 |
|
5 | Guardian Life Global Funding |
| 2.000% |
| 4/26/21 |
| 12,825 |
| 12,603 |
|
5 | Jackson National Life Global Funding |
| 3.250% |
| 1/30/24 |
| 48,955 |
| 49,274 |
|
5 | Liberty Mutual Group Inc. |
| 4.250% |
| 6/15/23 |
| 2,608 |
| 2,693 |
|
5 | Liberty Mutual Group Inc. |
| 4.569% |
| 2/1/29 |
| 9,217 |
| 9,615 |
|
5 | Liberty Mutual Insurance Co. |
| 8.500% |
| 5/15/25 |
| 21,665 |
| 26,369 |
|
| Loews Corp. |
| 2.625% |
| 5/15/23 |
| 14,100 |
| 13,937 |
|
| Marsh & McLennan Cos. Inc. |
| 4.375% |
| 3/15/29 |
| 22,125 |
| 23,441 |
|
Vanguard® Wellesley Income Fund
Schedule of Investments
March 31, 2019
|
|
| Coupon |
| Maturity |
| Face | ) | Market | ) |
|
|
|
|
|
|
|
|
|
|
|
| Marsh & McLennan Cos. Inc. |
| 4.900% |
| 3/15/49 |
| 8,985 |
| 9,804 |
|
5 | MassMutual Global Funding II |
| 2.350% |
| 4/9/19 |
| 22,000 |
| 21,999 |
|
5 | MassMutual Global Funding II |
| 2.000% |
| 4/15/21 |
| 42,188 |
| 41,579 |
|
| MetLife Inc. |
| 3.600% |
| 4/10/24 |
| 28,000 |
| 28,998 |
|
| MetLife Inc. |
| 4.125% |
| 8/13/42 |
| 5,300 |
| 5,339 |
|
| MetLife Inc. |
| 4.875% |
| 11/13/43 |
| 17,500 |
| 19,521 |
|
5 | Metropolitan Life Global Funding I |
| 3.450% |
| 10/9/21 |
| 28,465 |
| 28,700 |
|
5 | Metropolitan Life Global Funding I |
| 2.650% |
| 4/8/22 |
| 14,005 |
| 13,934 |
|
5 | Metropolitan Life Global Funding I |
| 3.450% |
| 12/18/26 |
| 29,970 |
| 30,389 |
|
5 | Metropolitan Life Global Funding I |
| 3.000% |
| 9/19/27 |
| 43,250 |
| 42,408 |
|
5 | Metropolitan Life Insurance Co. |
| 7.800% |
| 11/1/25 |
| 25,000 |
| 30,996 |
|
5 | New York Life Global Funding |
| 2.900% |
| 1/17/24 |
| 58,670 |
| 59,018 |
|
5 | New York Life Insurance Co. |
| 5.875% |
| 5/15/33 |
| 44,785 |
| 55,836 |
|
5 | Northwestern Mutual Life Insurance Co. |
| 3.850% |
| 9/30/47 |
| 24,098 |
| 23,429 |
|
| Prudential Financial Inc. |
| 4.500% |
| 11/15/20 |
| 24,055 |
| 24,710 |
|
5 | Teachers Insurance & Annuity Assn. of America |
| 4.900% |
| 9/15/44 |
| 21,990 |
| 24,565 |
|
5 | Teachers Insurance & Annuity Assn. of America |
| 4.270% |
| 5/15/47 |
| 42,865 |
| 44,024 |
|
| Travelers Cos. Inc. |
| 5.900% |
| 6/2/19 |
| 9,400 |
| 9,450 |
|
| UnitedHealth Group Inc. |
| 3.875% |
| 10/15/20 |
| 6,786 |
| 6,901 |
|
| UnitedHealth Group Inc. |
| 2.875% |
| 3/15/22 |
| 2,346 |
| 2,362 |
|
| UnitedHealth Group Inc. |
| 2.875% |
| 3/15/23 |
| 12,000 |
| 12,077 |
|
| UnitedHealth Group Inc. |
| 3.100% |
| 3/15/26 |
| 14,220 |
| 14,220 |
|
| UnitedHealth Group Inc. |
| 3.850% |
| 6/15/28 |
| 34,260 |
| 35,906 |
|
| UnitedHealth Group Inc. |
| 4.625% |
| 7/15/35 |
| 13,325 |
| 14,901 |
|
| UnitedHealth Group Inc. |
| 6.625% |
| 11/15/37 |
| 20,000 |
| 26,744 |
|
| UnitedHealth Group Inc. |
| 4.625% |
| 11/15/41 |
| 36,010 |
| 39,374 |
|
| UnitedHealth Group Inc. |
| 4.250% |
| 3/15/43 |
| 31,000 |
| 32,892 |
|
| UnitedHealth Group Inc. |
| 4.750% |
| 7/15/45 |
| 19,035 |
| 21,411 |
|
| UnitedHealth Group Inc. |
| 4.200% |
| 1/15/47 |
| 8,345 |
| 8,634 |
|
| UnitedHealth Group Inc. |
| 4.250% |
| 6/15/48 |
| 57,410 |
| 60,687 |
|
|
Other Finance (0.0%) |
|
|
|
|
|
|
|
|
|
5 | GTP Acquisition Partners I LLC |
| 2.350% |
| 6/15/20 |
| 18,745 |
| 18,546 |
|
|
|
|
|
|
|
|
|
|
|
|
| Real Estate Investment Trusts (0.3%) |
|
|
|
|
|
|
|
|
|
| AvalonBay Communities Inc. |
| 3.625% |
| 10/1/20 |
| 17,315 |
| 17,488 |
|
| Boston Properties LP |
| 3.125% |
| 9/1/23 |
| 13,520 |
| 13,561 |
|
| Boston Properties LP |
| 3.800% |
| 2/1/24 |
| 1,780 |
| 1,821 |
|
| Realty Income Corp. |
| 5.750% |
| 1/15/21 |
| 8,675 |
| 9,065 |
|
| Simon Property Group LP |
| 4.375% |
| 3/1/21 |
| 22,000 |
| 22,576 |
|
| Simon Property Group LP |
| 4.125% |
| 12/1/21 |
| 12,946 |
| 13,381 |
|
| Simon Property Group LP |
| 3.750% |
| 2/1/24 |
| 6,645 |
| 6,909 |
|
| Simon Property Group LP |
| 3.375% |
| 10/1/24 |
| 20,470 |
| 20,897 |
|
5 | WEA Finance LLC |
| 4.125% |
| 9/20/28 |
| 20,815 |
| 21,598 |
|
5 | WEA Finance LLC |
| 4.625% |
| 9/20/48 |
| 26,575 |
| 27,829 |
|
5 | WEA Finance LLC / Westfield UK & Europe Finance plc |
| 2.700% |
| 9/17/19 |
| 17,715 |
| 17,695 |
|
|
|
|
|
|
|
|
|
| 9,331,708 |
|
Industrial (20.7%)
|
|
|
|
|
|
|
|
|
| |
| Basic Industry (0.2%) |
|
|
|
|
|
|
|
|
|
5 | Air Liquide Finance SA |
| 2.250% |
| 9/27/23 |
| 21,000 |
| 20,374 |
|
5 | Air Liquide Finance SA |
| 2.500% |
| 9/27/26 |
| 16,815 |
| 16,006 |
|
| International Paper Co. |
| 4.350% |
| 8/15/48 |
| 43,570 |
| 40,564 |
|
| Nutrien Ltd. |
| 4.200% |
| 4/1/29 |
| 6,850 |
| 7,041 |
|
| Nutrien Ltd. |
| 5.000% |
| 4/1/49 |
| 11,005 |
| 11,425 |
|
|
Capital Goods (1.7%) |
|
|
|
|
|
|
|
|
|
5 | BAE Systems Holdings Inc. |
| 2.850% |
| 12/15/20 |
| 5,020 |
| 5,001 |
|
5 | BAE Systems Holdings Inc. |
| 3.800% |
| 10/7/24 |
| 26,068 |
| 26,573 |
|
5 | BAE Systems Holdings Inc. |
| 3.850% |
| 12/15/25 |
| 29,838 |
| 30,227 |
|
| Boeing Co. |
| 5.875% |
| 2/15/40 |
| 5,000 |
| 6,243 |
|
| Caterpillar Financial Services Corp. |
| 2.625% |
| 3/1/23 |
| 39,500 |
| 39,333 |
|
| Caterpillar Inc. |
| 3.900% |
| 5/27/21 |
| 32,880 |
| 33,800 |
|
| Caterpillar Inc. |
| 2.600% |
| 6/26/22 |
| 9,575 |
| 9,565 |
|
| Caterpillar Inc. |
| 3.400% |
| 5/15/24 |
| 19,475 |
| 20,181 |
|
Vanguard® Wellesley Income Fund
Schedule of Investments
March 31, 2019
|
|
| Coupon |
| Maturity |
| Face | ) | Market | ) |
|
|
|
|
|
|
|
|
|
|
|
| Caterpillar Inc. |
| 5.200% |
| 5/27/41 |
| 19,770 |
| 23,267 |
|
| Deere & Co. |
| 4.375% |
| 10/16/19 |
| 13,090 |
| 13,203 |
|
| Eaton Corp. |
| 6.500% |
| 6/1/25 |
| 10,000 |
| 11,382 |
|
| General Dynamics Corp. |
| 2.875% |
| 5/11/20 |
| 54,940 |
| 55,117 |
|
| General Dynamics Corp. |
| 3.875% |
| 7/15/21 |
| 9,950 |
| 10,185 |
|
| General Electric Co. |
| 2.700% |
| 10/9/22 |
| 14,000 |
| 13,716 |
|
| General Electric Co. |
| 3.100% |
| 1/9/23 |
| 6,094 |
| 6,052 |
|
| Honeywell International Inc. |
| 4.250% |
| 3/1/21 |
| 29,484 |
| 30,372 |
|
| Illinois Tool Works Inc. |
| 3.500% |
| 3/1/24 |
| 42,775 |
| 44,217 |
|
| John Deere Capital Corp. |
| 2.800% |
| 1/27/23 |
| 8,000 |
| 8,031 |
|
| John Deere Capital Corp. |
| 3.350% |
| 6/12/24 |
| 9,000 |
| 9,223 |
|
| John Deere Capital Corp. |
| 3.450% |
| 3/13/25 |
| 43,560 |
| 44,805 |
|
| Johnson Controls International plc |
| 5.000% |
| 3/30/20 |
| 29,000 |
| 29,597 |
|
| Johnson Controls International plc |
| 3.750% |
| 12/1/21 |
| 25,000 |
| 25,305 |
|
| Lockheed Martin Corp. |
| 2.500% |
| 11/23/20 |
| 12,340 |
| 12,280 |
|
| Lockheed Martin Corp. |
| 2.900% |
| 3/1/25 |
| 26,840 |
| 26,650 |
|
| Lockheed Martin Corp. |
| 4.500% |
| 5/15/36 |
| 6,715 |
| 7,303 |
|
| Lockheed Martin Corp. |
| 4.700% |
| 5/15/46 |
| 12,041 |
| 13,514 |
|
| Lockheed Martin Corp. |
| 4.090% |
| 9/15/52 |
| 4,609 |
| 4,660 |
|
| Parker-Hannifin Corp. |
| 4.450% |
| 11/21/44 |
| 14,290 |
| 15,179 |
|
| Raytheon Co. |
| 3.125% |
| 10/15/20 |
| 10,000 |
| 10,102 |
|
5 | Siemens Financieringsmaatschappij NV |
| 2.900% |
| 5/27/22 |
| 60,840 |
| 61,019 |
|
5 | Siemens Financieringsmaatschappij NV |
| 3.125% |
| 3/16/24 |
| 62,200 |
| 62,809 |
|
5 | Siemens Financieringsmaatschappij NV |
| 4.400% |
| 5/27/45 |
| 40,495 |
| 43,796 |
|
| Stanley Black & Decker Inc. |
| 4.850% |
| 11/15/48 |
| 24,040 |
| 26,895 |
|
| United Technologies Corp. |
| 4.500% |
| 4/15/20 |
| 24,170 |
| 24,565 |
|
| United Technologies Corp. |
| 3.100% |
| 6/1/22 |
| 10,095 |
| 10,163 |
|
| United Technologies Corp. |
| 4.125% |
| 11/16/28 |
| 32,800 |
| 34,077 |
|
| United Technologies Corp. |
| 4.450% |
| 11/16/38 |
| 9,050 |
| 9,363 |
|
| United Technologies Corp. |
| 4.500% |
| 6/1/42 |
| 55,694 |
| 57,400 |
|
| United Technologies Corp. |
| 3.750% |
| 11/1/46 |
| 5,891 |
| 5,415 |
|
|
Communication (3.1%) |
|
|
|
|
|
|
|
|
|
| America Movil SAB de CV |
| 3.125% |
| 7/16/22 |
| 66,820 |
| 67,159 |
|
| America Movil SAB de CV |
| 6.125% |
| 3/30/40 |
| 10,010 |
| 12,496 |
|
| American Tower Corp. |
| 3.450% |
| 9/15/21 |
| 23,985 |
| 24,257 |
|
| American Tower Corp. |
| 4.700% |
| 3/15/22 |
| 2,905 |
| 3,041 |
|
| American Tower Corp. |
| 5.000% |
| 2/15/24 |
| 23,881 |
| 25,680 |
|
| American Tower Corp. |
| 4.400% |
| 2/15/26 |
| 7,300 |
| 7,632 |
|
| AT&T Inc. |
| 2.450% |
| 6/30/20 |
| 17,525 |
| 17,453 |
|
| AT&T Inc. |
| 4.600% |
| 2/15/21 |
| 4,900 |
| 5,035 |
|
| AT&T Inc. |
| 3.875% |
| 8/15/21 |
| 20,000 |
| 20,472 |
|
| AT&T Inc. |
| 7.850% |
| 1/15/22 |
| 23,750 |
| 26,458 |
|
| AT&T Inc. |
| 4.900% |
| 8/15/37 |
| 4,175 |
| 4,220 |
|
| AT&T Inc. |
| 4.850% |
| 3/1/39 |
| 26,937 |
| 27,108 |
|
| CBS Corp. |
| 4.300% |
| 2/15/21 |
| 22,710 |
| 23,140 |
|
| Comcast Corp. |
| 3.000% |
| 2/1/24 |
| 51,960 |
| 52,118 |
|
| Comcast Corp. |
| 3.600% |
| 3/1/24 |
| 60,515 |
| 62,214 |
|
| Comcast Corp. |
| 3.375% |
| 2/15/25 |
| 2,565 |
| 2,598 |
|
| Comcast Corp. |
| 3.150% |
| 3/1/26 |
| 15,280 |
| 15,231 |
|
| Comcast Corp. |
| 2.350% |
| 1/15/27 |
| 19,840 |
| 18,540 |
|
| Comcast Corp. |
| 4.250% |
| 1/15/33 |
| 15,060 |
| 15,945 |
|
| Comcast Corp. |
| 4.200% |
| 8/15/34 |
| 25,155 |
| 26,134 |
|
| Comcast Corp. |
| 4.400% |
| 8/15/35 |
| 32,657 |
| 34,255 |
|
| Comcast Corp. |
| 4.600% |
| 10/15/38 |
| 46,815 |
| 50,072 |
|
| Comcast Corp. |
| 4.650% |
| 7/15/42 |
| 7,260 |
| 7,709 |
|
| Comcast Corp. |
| 4.500% |
| 1/15/43 |
| 20,000 |
| 20,713 |
|
| Comcast Corp. |
| 4.750% |
| 3/1/44 |
| 28,710 |
| 31,089 |
|
| Comcast Corp. |
| 4.600% |
| 8/15/45 |
| 46,358 |
| 49,145 |
|
| Comcast Corp. |
| 3.969% |
| 11/1/47 |
| 40,576 |
| 39,222 |
|
| Comcast Corp. |
| 4.000% |
| 3/1/48 |
| 17,415 |
| 16,983 |
|
| Comcast Corp. |
| 4.700% |
| 10/15/48 |
| 44,065 |
| 47,775 |
|
| Comcast Corp. |
| 3.999% |
| 11/1/49 |
| 26,848 |
| 26,105 |
|
| Comcast Corp. |
| 4.049% |
| 11/1/52 |
| 21,572 |
| 20,801 |
|
Vanguard® Wellesley Income Fund
Schedule of Investments
March 31, 2019
|
|
| Coupon |
| Maturity |
| Face | ) | Market | ) |
|
|
|
|
|
|
|
|
|
|
|
| Comcast Corp. |
| 4.950% |
| 10/15/58 |
| 34,115 |
| 37,618 |
|
5 | Cox Communications Inc. |
| 3.250% |
| 12/15/22 |
| 24,135 |
| 24,265 |
|
5 | Cox Communications Inc. |
| 4.800% |
| 2/1/35 |
| 58,525 |
| 55,301 |
|
5 | Cox Communications Inc. |
| 6.450% |
| 12/1/36 |
| 1,575 |
| 1,691 |
|
5 | Cox Communications Inc. |
| 4.600% |
| 8/15/47 |
| 3,325 |
| 3,163 |
|
| Crown Castle International Corp. |
| 3.650% |
| 9/1/27 |
| 10,385 |
| 10,221 |
|
| Crown Castle International Corp. |
| 3.800% |
| 2/15/28 |
| 8,575 |
| 8,516 |
|
5 | Fox Corp. |
| 5.576% |
| 1/25/49 |
| 9,395 |
| 10,616 |
|
5 | NBCUniversal Enterprise Inc. |
| 1.974% |
| 4/15/19 |
| 84,070 |
| 84,049 |
|
| NBCUniversal Media LLC |
| 4.375% |
| 4/1/21 |
| 26,000 |
| 26,819 |
|
| NBCUniversal Media LLC |
| 4.450% |
| 1/15/43 |
| 10,639 |
| 10,988 |
|
| Orange SA |
| 9.000% |
| 3/1/31 |
| 54,566 |
| 78,715 |
|
5 | SK Telecom Co. Ltd. |
| 3.750% |
| 4/16/23 |
| 12,220 |
| 12,510 |
|
5 | Sky Ltd. |
| 2.625% |
| 9/16/19 |
| 30,550 |
| 30,480 |
|
5 | Sky plc |
| 3.750% |
| 9/16/24 |
| 42,911 |
| 44,538 |
|
2,5 | Sprint Spectrum Co LLC / Sprint Spectrum Co II LLC / Sprint Spectrum Co III LLC |
| 4.738% |
| 3/20/25 |
| 46,800 |
| 47,327 |
|
| Time Warner Cable LLC |
| 8.250% |
| 4/1/19 |
| 11,944 |
| 11,943 |
|
| Time Warner Entertainment Co. LP |
| 8.375% |
| 3/15/23 |
| 3,215 |
| 3,738 |
|
| Verizon Communications Inc. |
| 3.450% |
| 3/15/21 |
| 15,585 |
| 15,819 |
|
| Verizon Communications Inc. |
| 3.500% |
| 11/1/21 |
| 55,237 |
| 56,336 |
|
| Verizon Communications Inc. |
| 4.812% |
| 3/15/39 |
| 67,074 |
| 72,112 |
|
| Verizon Communications Inc. |
| 4.750% |
| 11/1/41 |
| 28,730 |
| 30,245 |
|
| Verizon Communications Inc. |
| 5.012% |
| 4/15/49 |
| 52,343 |
| 57,100 |
|
| Verizon Communications Inc. |
| 4.672% |
| 3/15/55 |
| 12,325 |
| 12,612 |
|
| Vodafone Group plc |
| 4.125% |
| 5/30/25 |
| 11,380 |
| 11,599 |
|
| Vodafone Group plc |
| 5.000% |
| 5/30/38 |
| 1,890 |
| 1,874 |
|
| Vodafone Group plc |
| 5.250% |
| 5/30/48 |
| 42,055 |
| 42,116 |
|
5 | Walt Disney Co. |
| 4.500% |
| 2/15/21 |
| 4,650 |
| 4,808 |
|
5 | Walt Disney Co. |
| 6.200% |
| 12/15/34 |
| 11,000 |
| 14,414 |
|
| Walt Disney Co. |
| 4.125% |
| 6/1/44 |
| 18,320 |
| 19,427 |
|
| Warner Media LLC |
| 3.600% |
| 7/15/25 |
| 22,963 |
| 22,884 |
|
|
Consumer Cyclical (2.5%) |
|
|
|
|
|
|
|
|
|
| Alibaba Group Holding Ltd. |
| 2.500% |
| 11/28/19 |
| 10,480 |
| 10,470 |
|
| Alibaba Group Holding Ltd. |
| 3.125% |
| 11/28/21 |
| 2,035 |
| 2,049 |
|
| Alibaba Group Holding Ltd. |
| 3.600% |
| 11/28/24 |
| 45,610 |
| 46,711 |
|
| Alibaba Group Holding Ltd. |
| 3.400% |
| 12/6/27 |
| 65,650 |
| 64,573 |
|
| Amazon.com Inc. |
| 2.500% |
| 11/29/22 |
| 31,600 |
| 31,515 |
|
| Amazon.com Inc. |
| 2.800% |
| 8/22/24 |
| 26,740 |
| 26,756 |
|
| Amazon.com Inc. |
| 4.800% |
| 12/5/34 |
| 55,880 |
| 64,968 |
|
| Amazon.com Inc. |
| 4.950% |
| 12/5/44 |
| 17,920 |
| 21,388 |
|
| Amazon.com Inc. |
| 4.250% |
| 8/22/57 |
| 52,165 |
| 56,365 |
|
| American Honda Finance Corp. |
| 2.300% |
| 9/9/26 |
| 17,135 |
| 16,120 |
|
| AutoZone Inc. |
| 4.000% |
| 11/15/20 |
| 25,000 |
| 25,346 |
|
| AutoZone Inc. |
| 3.700% |
| 4/15/22 |
| 12,752 |
| 12,996 |
|
5 | BMW US Capital LLC |
| 2.000% |
| 4/11/21 |
| 19,815 |
| 19,499 |
|
5 | BMW US Capital LLC |
| 2.250% |
| 9/15/23 |
| 93,000 |
| 90,448 |
|
5 | BMW US Capital LLC |
| 2.800% |
| 4/11/26 |
| 5,395 |
| 5,174 |
|
2,5 | CVS Pass-Through Trust |
| 5.926% |
| 1/10/34 |
| 13,239 |
| 14,699 |
|
5 | Daimler Finance North America LLC |
| 2.250% |
| 7/31/19 |
| 58,255 |
| 58,119 |
|
5 | Daimler Finance North America LLC |
| 2.450% |
| 5/18/20 |
| 8,005 |
| 7,964 |
|
5 | Daimler Finance North America LLC |
| 2.300% |
| 2/12/21 |
| 34,630 |
| 34,216 |
|
5 | Daimler Finance North America LLC |
| 2.000% |
| 7/6/21 |
| 60,000 |
| 58,602 |
|
5 | Daimler Finance North America LLC |
| 3.875% |
| 9/15/21 |
| 3,270 |
| 3,332 |
|
5 | Daimler Finance North America LLC |
| 3.250% |
| 8/1/24 |
| 3,970 |
| 3,937 |
|
| Ford Motor Credit Co. LLC |
| 3.157% |
| 8/4/20 |
| 23,890 |
| 23,753 |
|
| General Motors Financial Co. Inc. |
| 3.550% |
| 4/9/21 |
| 16,525 |
| 16,615 |
|
| General Motors Financial Co. Inc. |
| 3.950% |
| 4/13/24 |
| 58,730 |
| 58,142 |
|
| Home Depot Inc. |
| 2.700% |
| 4/1/23 |
| 24,715 |
| 24,823 |
|
| Home Depot Inc. |
| 3.900% |
| 12/6/28 |
| 10,040 |
| 10,644 |
|
| Home Depot Inc. |
| 4.400% |
| 3/15/45 |
| 22,390 |
| 24,021 |
|
| Home Depot Inc. |
| 4.500% |
| 12/6/48 |
| 12,020 |
| 13,315 |
|
5 | Hyundai Capital America |
| 2.550% |
| 4/3/20 |
| 29,410 |
| 29,214 |
|
Vanguard® Wellesley Income Fund
Schedule of Investments
March 31, 2019
|
|
| Coupon |
| Maturity |
| Face | ) | Market | ) |
|
|
|
|
|
|
|
|
|
|
|
5,6 | Hyundai Capital America, 3M USD LIBOR + 0.940% |
| 3.744% |
| 7/8/21 |
| 50,500 |
| 50,280 |
|
| Lowe’s Cos. Inc. |
| 3.100% |
| 5/3/27 |
| 115,000 |
| 111,771 |
|
| Marriott International Inc. |
| 2.300% |
| 1/15/22 |
| 44,000 |
| 43,188 |
|
| McDonald’s Corp. |
| 3.500% |
| 7/15/20 |
| 21,760 |
| 21,979 |
|
| McDonald’s Corp. |
| 2.625% |
| 1/15/22 |
| 10,175 |
| 10,164 |
|
| McDonald’s Corp. |
| 3.250% |
| 6/10/24 |
| 4,400 |
| 4,480 |
|
| McDonald’s Corp. |
| 4.875% |
| 12/9/45 |
| 22,775 |
| 24,576 |
|
| Starbucks Corp. |
| 4.500% |
| 11/15/48 |
| 35,130 |
| 35,826 |
|
| Target Corp. |
| 2.900% |
| 1/15/22 |
| 11,850 |
| 11,999 |
|
5 | Volkswagen Group of America Finance LLC |
| 2.450% |
| 11/20/19 |
| 13,860 |
| 13,793 |
|
| Walmart Inc. |
| 2.550% |
| 4/11/23 |
| 44,450 |
| 44,414 |
|
| Walmart Inc. |
| 3.550% |
| 6/26/25 |
| 56,485 |
| 58,690 |
|
| Walmart Inc. |
| 3.625% |
| 12/15/47 |
| 14,950 |
| 14,832 |
|
|
Consumer Noncyclical (6.9%) |
|
|
|
|
|
|
|
|
|
| Allergan Funding SCS |
| 3.450% |
| 3/15/22 |
| 23,785 |
| 23,990 |
|
| Allergan Funding SCS |
| 3.800% |
| 3/15/25 |
| 12,825 |
| 12,963 |
|
| Allergan Funding SCS |
| 4.850% |
| 6/15/44 |
| 14,075 |
| 14,034 |
|
| Altria Group Inc. |
| 4.750% |
| 5/5/21 |
| 40,806 |
| 42,389 |
|
| Altria Group Inc. |
| 2.850% |
| 8/9/22 |
| 11,835 |
| 11,795 |
|
| Altria Group Inc. |
| 4.800% |
| 2/14/29 |
| 21,200 |
| 21,840 |
|
| Altria Group Inc. |
| 4.500% |
| 5/2/43 |
| 10,105 |
| 9,089 |
|
| Altria Group Inc. |
| 3.875% |
| 9/16/46 |
| 22,625 |
| 18,526 |
|
| Amgen Inc. |
| 3.625% |
| 5/22/24 |
| 38,185 |
| 39,217 |
|
| Amgen Inc. |
| 5.150% |
| 11/15/41 |
| 27,515 |
| 29,452 |
|
| Amgen Inc. |
| 4.663% |
| 6/15/51 |
| 9,875 |
| 9,880 |
|
5 | Anheuser-Busch Cos LLC / Anheuser-Busch InBev Worldwide Inc. |
| 4.700% |
| 2/1/36 |
| 96,810 |
| 96,919 |
|
5 | Anheuser-Busch Cos LLC / Anheuser-Busch InBev Worldwide Inc. |
| 4.900% |
| 2/1/46 |
| 131,985 |
| 132,374 |
|
| Anheuser-Busch InBev Finance Inc. |
| 3.300% |
| 2/1/23 |
| 63,200 |
| 63,945 |
|
| Anheuser-Busch InBev Worldwide Inc. |
| 6.875% |
| 11/15/19 |
| 8,300 |
| 8,510 |
|
| Anheuser-Busch InBev Worldwide Inc. |
| 4.375% |
| 2/15/21 |
| 800 |
| 823 |
|
| Anheuser-Busch InBev Worldwide Inc. |
| 3.750% |
| 1/15/22 |
| 4,310 |
| 4,451 |
|
| Anheuser-Busch InBev Worldwide Inc. |
| 2.500% |
| 7/15/22 |
| 9,836 |
| 9,739 |
|
| Anheuser-Busch InBev Worldwide Inc. |
| 4.375% |
| 4/15/38 |
| 23,185 |
| 22,244 |
|
| Anheuser-Busch InBev Worldwide Inc. |
| 4.950% |
| 1/15/42 |
| 5,700 |
| 5,754 |
|
| Anheuser-Busch InBev Worldwide Inc. |
| 3.750% |
| 7/15/42 |
| 19,080 |
| 16,555 |
|
| Anheuser-Busch InBev Worldwide Inc. |
| 4.600% |
| 4/15/48 |
| 14,500 |
| 13,917 |
|
| Archer-Daniels-Midland Co. |
| 4.500% |
| 3/15/49 |
| 34,425 |
| 37,799 |
|
| Ascension Health |
| 3.945% |
| 11/15/46 |
| 14,675 |
| 15,063 |
|
2 | Ascension Health |
| 4.847% |
| 11/15/53 |
| 2,165 |
| 2,536 |
|
| AstraZeneca plc |
| 1.950% |
| 9/18/19 |
| 12,435 |
| 12,377 |
|
| AstraZeneca plc |
| 2.375% |
| 11/16/20 |
| 37,225 |
| 36,995 |
|
| AstraZeneca plc |
| 3.375% |
| 11/16/25 |
| 27,755 |
| 28,007 |
|
| AstraZeneca plc |
| 4.000% |
| 1/17/29 |
| 33,295 |
| 34,544 |
|
| BAT Capital Corp. |
| 3.557% |
| 8/15/27 |
| 60,340 |
| 57,076 |
|
5 | Bayer US Finance II LLC |
| 4.250% |
| 12/15/25 |
| 51,410 |
| 51,936 |
|
5 | Bayer US Finance II LLC |
| 5.500% |
| 7/30/35 |
| 15,000 |
| 15,277 |
|
5 | Bayer US Finance LLC |
| 2.375% |
| 10/8/19 |
| 6,140 |
| 6,123 |
|
5 | Bayer US Finance LLC |
| 3.000% |
| 10/8/21 |
| 38,730 |
| 38,429 |
|
| Biogen Inc. |
| 2.900% |
| 9/15/20 |
| 17,465 |
| 17,507 |
|
| Boston Scientific Corp. |
| 4.000% |
| 3/1/29 |
| 6,515 |
| 6,715 |
|
| Cardinal Health Inc. |
| 2.400% |
| 11/15/19 |
| 22,090 |
| 22,013 |
|
| Cardinal Health Inc. |
| 3.200% |
| 3/15/23 |
| 11,650 |
| 11,594 |
|
| Cardinal Health Inc. |
| 3.079% |
| 6/15/24 |
| 16,720 |
| 16,285 |
|
| Cardinal Health Inc. |
| 3.500% |
| 11/15/24 |
| 20,020 |
| 19,807 |
|
| Cardinal Health Inc. |
| 4.500% |
| 11/15/44 |
| 23,250 |
| 20,719 |
|
5 | Cargill Inc. |
| 4.760% |
| 11/23/45 |
| 57,879 |
| 65,562 |
|
| Catholic Health Initiatives |
| 4.200% |
| 8/1/23 |
| 11,695 |
| 12,111 |
|
2 | Catholic Health Initiatives |
| 4.350% |
| 11/1/42 |
| 20,970 |
| 19,928 |
|
| Celgene Corp. |
| 2.250% |
| 5/15/19 |
| 5,145 |
| 5,142 |
|
| Celgene Corp. |
| 3.550% |
| 8/15/22 |
| 15,160 |
| 15,418 |
|
| Celgene Corp. |
| 3.625% |
| 5/15/24 |
| 11,980 |
| 12,150 |
|
Vanguard® Wellesley Income Fund
Schedule of Investments
March 31, 2019
|
|
| Coupon |
| Maturity |
| Face | ) | Market | ) |
|
|
|
|
|
|
|
|
|
|
|
| Coca-Cola Co. |
| 4.500% |
| 9/1/21 |
| 14,785 |
| 15,138 |
|
| Coca-Cola European Partners plc |
| 3.500% |
| 9/15/20 |
| 4,600 |
| 4,624 |
|
| Coca-Cola Femsa SAB de CV |
| 3.875% |
| 11/26/23 |
| 28,000 |
| 28,873 |
|
| Colgate-Palmolive Co. |
| 2.950% |
| 11/1/20 |
| 25,000 |
| 25,190 |
|
| CommonSpirit Health |
| 2.950% |
| 11/1/22 |
| 36,807 |
| 36,541 |
|
| Conagra Brands Inc. |
| 4.600% |
| 11/1/25 |
| 7,685 |
| 8,058 |
|
| Conagra Brands Inc. |
| 5.300% |
| 11/1/38 |
| 22,930 |
| 23,176 |
|
| Constellation Brands Inc. |
| 2.700% |
| 5/9/22 |
| 2,400 |
| 2,380 |
|
| CVS Health Corp. |
| 2.750% |
| 12/1/22 |
| 20,000 |
| 19,735 |
|
| CVS Health Corp. |
| 4.875% |
| 7/20/35 |
| 18,205 |
| 18,337 |
|
| CVS Health Corp. |
| 5.125% |
| 7/20/45 |
| 42,620 |
| 43,324 |
|
| CVS Health Corp. |
| 5.050% |
| 3/25/48 |
| 22,175 |
| 22,379 |
|
5 | Danone SA |
| 2.589% |
| 11/2/23 |
| 10,000 |
| 9,810 |
|
5 | Danone SA |
| 2.947% |
| 11/2/26 |
| 40,000 |
| 38,376 |
|
| Diageo Capital plc |
| 2.625% |
| 4/29/23 |
| 42,580 |
| 42,488 |
|
| Diageo Investment Corp. |
| 2.875% |
| 5/11/22 |
| 17,245 |
| 17,357 |
|
| Dignity Health |
| 2.637% |
| 11/1/19 |
| 4,480 |
| 4,474 |
|
| Dignity Health |
| 3.812% |
| 11/1/24 |
| 18,560 |
| 18,933 |
|
| Eli Lilly & Co. |
| 3.700% |
| 3/1/45 |
| 20,040 |
| 19,754 |
|
5 | EMD Finance LLC |
| 2.400% |
| 3/19/20 |
| 1,100 |
| 1,093 |
|
5 | EMD Finance LLC |
| 2.950% |
| 3/19/22 |
| 19,640 |
| 19,546 |
|
| Express Scripts Holding Co. |
| 2.250% |
| 6/15/19 |
| 14,030 |
| 14,010 |
|
5 | Forest Laboratories Inc. |
| 4.875% |
| 2/15/21 |
| 3,312 |
| 3,391 |
|
5 | Forest Laboratories LLC |
| 5.000% |
| 12/15/21 |
| 23,725 |
| 24,649 |
|
| Gilead Sciences Inc. |
| 2.550% |
| 9/1/20 |
| 15,245 |
| 15,225 |
|
| Gilead Sciences Inc. |
| 2.500% |
| 9/1/23 |
| 26,390 |
| 26,067 |
|
| Gilead Sciences Inc. |
| 3.700% |
| 4/1/24 |
| 21,420 |
| 22,127 |
|
| Gilead Sciences Inc. |
| 3.500% |
| 2/1/25 |
| 28,575 |
| 29,143 |
|
| Gilead Sciences Inc. |
| 4.500% |
| 2/1/45 |
| 55,782 |
| 56,018 |
|
| Gilead Sciences Inc. |
| 4.750% |
| 3/1/46 |
| 13,200 |
| 13,795 |
|
| GlaxoSmithKline Capital Inc. |
| 2.800% |
| 3/18/23 |
| 25,750 |
| 25,800 |
|
| GlaxoSmithKline Capital Inc. |
| 5.375% |
| 4/15/34 |
| 16,055 |
| 19,235 |
|
| GlaxoSmithKline Capital plc |
| 2.850% |
| 5/8/22 |
| 51,595 |
| 51,787 |
|
5 | Imperial Tobacco Finance plc |
| 3.750% |
| 7/21/22 |
| 58,995 |
| 59,679 |
|
| Johnson & Johnson |
| 6.730% |
| 11/15/23 |
| 15,000 |
| 17,646 |
|
| Johnson & Johnson |
| 2.450% |
| 3/1/26 |
| 78,000 |
| 76,267 |
|
| Kaiser Foundation Hospitals |
| 3.500% |
| 4/1/22 |
| 19,815 |
| 20,306 |
|
| Kaiser Foundation Hospitals |
| 3.150% |
| 5/1/27 |
| 18,190 |
| 18,278 |
|
| Kaiser Foundation Hospitals |
| 4.875% |
| 4/1/42 |
| 12,710 |
| 14,687 |
|
| Kraft Heinz Foods Co. |
| 3.000% |
| 6/1/26 |
| 31,320 |
| 29,345 |
|
| Kraft Heinz Foods Co. |
| 5.000% |
| 7/15/35 |
| 7,370 |
| 7,241 |
|
| Kraft Heinz Foods Co. |
| 4.375% |
| 6/1/46 |
| 78,335 |
| 67,963 |
|
| Kroger Co. |
| 3.300% |
| 1/15/21 |
| 13,605 |
| 13,674 |
|
| Kroger Co. |
| 3.850% |
| 8/1/23 |
| 5,055 |
| 5,197 |
|
2 | Mayo Clinic |
| 4.128% |
| 11/15/52 |
| 11,465 |
| 12,014 |
|
| McKesson Corp. |
| 2.700% |
| 12/15/22 |
| 7,010 |
| 6,926 |
|
| McKesson Corp. |
| 2.850% |
| 3/15/23 |
| 6,840 |
| 6,756 |
|
| McKesson Corp. |
| 3.796% |
| 3/15/24 |
| 9,525 |
| 9,721 |
|
| Medtronic Inc. |
| 3.150% |
| 3/15/22 |
| 61,030 |
| 62,146 |
|
| Medtronic Inc. |
| 3.625% |
| 3/15/24 |
| 7,510 |
| 7,799 |
|
| Medtronic Inc. |
| 3.500% |
| 3/15/25 |
| 62,791 |
| 64,686 |
|
| Medtronic Inc. |
| 4.375% |
| 3/15/35 |
| 21,968 |
| 23,929 |
|
| Memorial Sloan-Kettering Cancer Center |
| 5.000% |
| 7/1/42 |
| 11,505 |
| 13,644 |
|
| Memorial Sloan-Kettering Cancer Center |
| 4.125% |
| 7/1/52 |
| 7,820 |
| 8,122 |
|
| Memorial Sloan-Kettering Cancer Center |
| 4.200% |
| 7/1/55 |
| 5,940 |
| 6,296 |
|
| Merck & Co. Inc. |
| 2.350% |
| 2/10/22 |
| 24,825 |
| 24,796 |
|
| Merck & Co. Inc. |
| 2.800% |
| 5/18/23 |
| 15,650 |
| 15,826 |
|
| Merck & Co. Inc. |
| 2.750% |
| 2/10/25 |
| 38,000 |
| 38,082 |
|
| Merck & Co. Inc. |
| 3.400% |
| 3/7/29 |
| 58,390 |
| 59,919 |
|
| Merck & Co. Inc. |
| 4.150% |
| 5/18/43 |
| 28,405 |
| 30,149 |
|
| Mercy Health |
| 4.302% |
| 7/1/28 |
| 15,415 |
| 16,571 |
|
| Molson Coors Brewing Co. |
| 3.500% |
| 5/1/22 |
| 14,905 |
| 15,020 |
|
| Mylan NV |
| 3.950% |
| 6/15/26 |
| 59,430 |
| 56,725 |
|
| New York & Presbyterian Hospital |
| 4.024% |
| 8/1/45 |
| 22,955 |
| 24,002 |
|
Vanguard® Wellesley Income Fund
Schedule of Investments
March 31, 2019
|
|
| Coupon |
| Maturity |
| Face | ) | Market | ) |
|
|
|
|
|
|
|
|
|
|
|
| Novartis Capital Corp. |
| 3.400% |
| 5/6/24 |
| 13,425 |
| 13,894 |
|
| Novartis Capital Corp. |
| 4.400% |
| 5/6/44 |
| 21,485 |
| 23,753 |
|
| Partners Healthcare System |
| 3.443% |
| 7/1/21 |
| 2,000 |
| 2,035 |
|
| PepsiCo Inc. |
| 2.375% |
| 10/6/26 |
| 72,545 |
| 69,603 |
|
| PepsiCo Inc. |
| 4.000% |
| 3/5/42 |
| 35,200 |
| 36,601 |
|
| PepsiCo Inc. |
| 3.450% |
| 10/6/46 |
| 45,740 |
| 44,162 |
|
| Pfizer Inc. |
| 3.000% |
| 6/15/23 |
| 25,440 |
| 25,892 |
|
| Pfizer Inc. |
| 3.000% |
| 12/15/26 |
| 28,400 |
| 28,416 |
|
| Pfizer Inc. |
| 3.450% |
| 3/15/29 |
| 52,500 |
| 53,890 |
|
| Pfizer Inc. |
| 4.100% |
| 9/15/38 |
| 52,715 |
| 55,323 |
|
| Philip Morris International Inc. |
| 4.500% |
| 3/26/20 |
| 25,000 |
| 25,447 |
|
| Philip Morris International Inc. |
| 1.875% |
| 2/25/21 |
| 43,455 |
| 42,774 |
|
| Philip Morris International Inc. |
| 4.125% |
| 5/17/21 |
| 15,705 |
| 16,144 |
|
| Philip Morris International Inc. |
| 2.500% |
| 8/22/22 |
| 13,250 |
| 13,134 |
|
| Philip Morris International Inc. |
| 2.625% |
| 3/6/23 |
| 23,000 |
| 22,776 |
|
| Philip Morris International Inc. |
| 4.500% |
| 3/20/42 |
| 11,665 |
| 11,524 |
|
| Philip Morris International Inc. |
| 3.875% |
| 8/21/42 |
| 22,785 |
| 20,825 |
|
| Philip Morris International Inc. |
| 4.875% |
| 11/15/43 |
| 5,835 |
| 6,084 |
|
| Philip Morris International Inc. |
| 4.250% |
| 11/10/44 |
| 15,000 |
| 14,558 |
|
2 | Procter & Gamble - Esop |
| 9.360% |
| 1/1/21 |
| 5,702 |
| 6,045 |
|
| Providence St. Joseph Health Obligated Group |
| 2.746% |
| 10/1/26 |
| 18,290 |
| 17,596 |
|
2 | Providence St. Joseph Health Obligated Group |
| 3.930% |
| 10/1/48 |
| 12,030 |
| 12,092 |
|
5 | Roche Holdings Inc. |
| 2.875% |
| 9/29/21 |
| 26,150 |
| 26,319 |
|
5 | Roche Holdings Inc. |
| 2.375% |
| 1/28/27 |
| 61,570 |
| 58,773 |
|
| Sanofi |
| 4.000% |
| 3/29/21 |
| 36,275 |
| 37,279 |
|
5 | Sigma Alimentos SA de CV |
| 4.125% |
| 5/2/26 |
| 24,660 |
| 24,163 |
|
5 | South Carolina Electric & Gas Co. |
| 2.750% |
| 6/15/20 |
| 17,600 |
| 17,534 |
|
5 | South Carolina Electric & Gas Co. |
| 3.250% |
| 6/7/22 |
| 50,880 |
| 50,811 |
|
5 | South Carolina Electric & Gas Co. |
| 3.500% |
| 6/15/22 |
| 7,440 |
| 7,488 |
|
5 | South Carolina Electric & Gas Co. |
| 3.950% |
| 6/15/25 |
| 15,000 |
| 15,015 |
|
| SSM Health Care Corp. |
| 3.823% |
| 6/1/27 |
| 35,390 |
| 35,965 |
|
| Stanford Health Care |
| 3.795% |
| 11/15/48 |
| 8,555 |
| 8,608 |
|
| Teva Pharmaceutical Finance Co. BV |
| 3.650% |
| 11/10/21 |
| 6,765 |
| 6,643 |
|
| Teva Pharmaceutical Finance Netherlands III BV |
| 2.800% |
| 7/21/23 |
| 36,645 |
| 32,770 |
|
| Unilever Capital Corp. |
| 4.250% |
| 2/10/21 |
| 78,185 |
| 80,576 |
|
| Wyeth LLC |
| 5.950% |
| 4/1/37 |
| 15,000 |
| 19,086 |
|
|
Energy (2.1%) |
|
|
|
|
|
|
|
|
|
5 | BG Energy Capital plc |
| 4.000% |
| 10/15/21 |
| 17,070 |
| 17,528 |
|
5 | BG Energy Capital plc |
| 5.125% |
| 10/15/41 |
| 20,000 |
| 22,648 |
|
| BP Capital Markets America Inc. |
| 4.500% |
| 10/1/20 |
| 28,000 |
| 28,746 |
|
| BP Capital Markets America Inc. |
| 4.742% |
| 3/11/21 |
| 10,000 |
| 10,388 |
|
| BP Capital Markets America Inc. |
| 3.245% |
| 5/6/22 |
| 10,000 |
| 10,173 |
|
| BP Capital Markets plc |
| 2.315% |
| 2/13/20 |
| 3,760 |
| 3,743 |
|
| BP Capital Markets plc |
| 3.062% |
| 3/17/22 |
| 35,770 |
| 36,133 |
|
| BP Capital Markets plc |
| 2.500% |
| 11/6/22 |
| 8,000 |
| 7,951 |
|
| BP Capital Markets plc |
| 3.994% |
| 9/26/23 |
| 13,130 |
| 13,757 |
|
| BP Capital Markets plc |
| 3.814% |
| 2/10/24 |
| 38,000 |
| 39,524 |
|
| BP Capital Markets plc |
| 3.506% |
| 3/17/25 |
| 41,710 |
| 42,516 |
|
| Chevron Corp. |
| 2.355% |
| 12/5/22 |
| 6,000 |
| 5,958 |
|
| Chevron Corp. |
| 3.191% |
| 6/24/23 |
| 69,750 |
| 71,328 |
|
| ConocoPhillips |
| 7.000% |
| 3/30/29 |
| 11,500 |
| 14,612 |
|
| ConocoPhillips |
| 4.950% |
| 3/15/26 |
| 12,710 |
| 14,186 |
|
| Dominion Energy Gas Holdings LLC |
| 3.550% |
| 11/1/23 |
| 14,085 |
| 14,268 |
|
| Dominion Energy Gas Holdings LLC |
| 4.800% |
| 11/1/43 |
| 14,190 |
| 15,283 |
|
| Dominion Energy Gas Holdings LLC |
| 4.600% |
| 12/15/44 |
| 7,003 |
| 7,283 |
|
| Enterprise Products Operating LLC |
| 4.900% |
| 5/15/46 |
| 5,000 |
| 5,336 |
|
| Enterprise Products Operating LLC |
| 4.250% |
| 2/15/48 |
| 23,475 |
| 22,865 |
|
| EOG Resources Inc. |
| 5.625% |
| 6/1/19 |
| 16,285 |
| 16,332 |
|
| Exxon Mobil Corp. |
| 2.222% |
| 3/1/21 |
| 12,735 |
| 12,664 |
|
| Exxon Mobil Corp. |
| 2.726% |
| 3/1/23 |
| 10,710 |
| 10,792 |
|
| Exxon Mobil Corp. |
| 3.043% |
| 3/1/26 |
| 7,330 |
| 7,437 |
|
| Exxon Mobil Corp. |
| 4.114% |
| 3/1/46 |
| 10,845 |
| 11,674 |
|
| Noble Energy Inc. |
| 4.150% |
| 12/15/21 |
| 14,890 |
| 15,247 |
|
Vanguard® Wellesley Income Fund
Schedule of Investments
March 31, 2019
|
|
| Coupon |
| Maturity |
| Face | ) | Market | ) |
|
|
|
|
|
|
|
|
|
|
|
| Occidental Petroleum Corp. |
| 4.100% |
| 2/1/21 |
| 27,466 |
| 28,103 |
|
| Occidental Petroleum Corp. |
| 2.700% |
| 2/15/23 |
| 9,250 |
| 9,239 |
|
| Occidental Petroleum Corp. |
| 3.400% |
| 4/15/26 |
| 11,750 |
| 11,978 |
|
| Occidental Petroleum Corp. |
| 4.625% |
| 6/15/45 |
| 8,650 |
| 9,419 |
|
| Phillips 66 |
| 4.300% |
| 4/1/22 |
| 30,000 |
| 31,319 |
|
5 | Schlumberger Holdings Corp. |
| 3.000% |
| 12/21/20 |
| 25,500 |
| 25,606 |
|
5 | Schlumberger Investment SA |
| 2.400% |
| 8/1/22 |
| 20,765 |
| 20,539 |
|
| Shell International Finance BV |
| 3.250% |
| 5/11/25 |
| 28,680 |
| 29,219 |
|
| Shell International Finance BV |
| 4.125% |
| 5/11/35 |
| 40,575 |
| 43,162 |
|
| Shell International Finance BV |
| 5.500% |
| 3/25/40 |
| 10,795 |
| 13,397 |
|
| Shell International Finance BV |
| 4.375% |
| 5/11/45 |
| 95,725 |
| 104,123 |
|
| Suncor Energy Inc. |
| 3.600% |
| 12/1/24 |
| 19,505 |
| 19,967 |
|
| Suncor Energy Inc. |
| 5.950% |
| 12/1/34 |
| 13,000 |
| 15,675 |
|
| Sunoco Logistics Partners Operations LP |
| 4.400% |
| 4/1/21 |
| 25,945 |
| 26,628 |
|
| Texaco Capital Inc. |
| 8.625% |
| 4/1/32 |
| 25,000 |
| 36,594 |
|
| Total Capital International SA |
| 2.700% |
| 1/25/23 |
| 32,714 |
| 32,712 |
|
| Total Capital International SA |
| 3.750% |
| 4/10/24 |
| 50,000 |
| 52,136 |
|
| TransCanada PipeLines Ltd. |
| 3.800% |
| 10/1/20 |
| 30,875 |
| 31,390 |
|
| TransCanada PipeLines Ltd. |
| 2.500% |
| 8/1/22 |
| 21,165 |
| 20,877 |
|
| TransCanada PipeLines Ltd. |
| 4.875% |
| 1/15/26 |
| 58,060 |
| 62,582 |
|
|
Other Industrial (0.3%) |
|
|
|
|
|
|
|
|
|
| George Washington University |
| 3.545% |
| 9/15/46 |
| 10,000 |
| 9,552 |
|
5 | Hutchison Whampoa International 09/19 Ltd. |
| 5.750% |
| 9/11/19 |
| 12,000 |
| 12,150 |
|
2 | Johns Hopkins University |
| 4.083% |
| 7/1/53 |
| 24,695 |
| 26,711 |
|
5 | SBA Tower Trust |
| 3.168% |
| 4/11/22 |
| 49,780 |
| 49,643 |
|
5 | SBA Tower Trust |
| 3.448% |
| 3/15/23 |
| 28,730 |
| 28,840 |
|
2,5 | SBA Tower Trust |
| 2.898% |
| 10/15/44 |
| 37,250 |
| 37,218 |
|
|
Technology (3.4%) |
|
|
|
|
|
|
|
|
|
| Apple Inc. |
| 2.850% |
| 2/23/23 |
| 43,845 |
| 44,288 |
|
| Apple Inc. |
| 3.000% |
| 2/9/24 |
| 22,750 |
| 23,052 |
|
| Apple Inc. |
| 3.450% |
| 5/6/24 |
| 31,140 |
| 32,175 |
|
| Apple Inc. |
| 2.850% |
| 5/11/24 |
| 45,635 |
| 45,799 |
|
| Apple Inc. |
| 2.750% |
| 1/13/25 |
| 21,615 |
| 21,492 |
|
| Apple Inc. |
| 3.250% |
| 2/23/26 |
| 38,220 |
| 38,916 |
|
| Apple Inc. |
| 2.450% |
| 8/4/26 |
| 55,182 |
| 53,427 |
|
| Apple Inc. |
| 3.350% |
| 2/9/27 |
| 56,435 |
| 57,530 |
|
| Apple Inc. |
| 3.200% |
| 5/11/27 |
| 39,750 |
| 40,121 |
|
| Apple Inc. |
| 2.900% |
| 9/12/27 |
| 83,420 |
| 82,312 |
|
| Apple Inc. |
| 3.850% |
| 5/4/43 |
| 15,275 |
| 15,551 |
|
| Apple Inc. |
| 4.450% |
| 5/6/44 |
| 4,035 |
| 4,422 |
|
| Apple Inc. |
| 3.850% |
| 8/4/46 |
| 36,510 |
| 36,973 |
|
| Broadcom Corp. / Broadcom Cayman Finance Ltd. |
| 3.625% |
| 1/15/24 |
| 36,975 |
| 36,899 |
|
| Cisco Systems Inc. |
| 2.500% |
| 9/20/26 |
| 15,921 |
| 15,460 |
|
| Intel Corp. |
| 2.875% |
| 5/11/24 |
| 29,825 |
| 30,028 |
|
| Intel Corp. |
| 4.100% |
| 5/19/46 |
| 47,755 |
| 50,307 |
|
| International Business Machines Corp. |
| 3.375% |
| 8/1/23 |
| 61,300 |
| 62,602 |
|
| International Business Machines Corp. |
| 3.625% |
| 2/12/24 |
| 22,800 |
| 23,469 |
|
| International Business Machines Corp. |
| 7.000% |
| 10/30/25 |
| 25,000 |
| 30,742 |
|
| Microsoft Corp. |
| 2.375% |
| 2/12/22 |
| 19,865 |
| 19,853 |
|
| Microsoft Corp. |
| 3.625% |
| 12/15/23 |
| 13,500 |
| 14,125 |
|
| Microsoft Corp. |
| 2.875% |
| 2/6/24 |
| 61,625 |
| 62,362 |
|
| Microsoft Corp. |
| 2.700% |
| 2/12/25 |
| 23,890 |
| 23,863 |
|
| Microsoft Corp. |
| 3.125% |
| 11/3/25 |
| 26,300 |
| 26,934 |
|
| Microsoft Corp. |
| 2.400% |
| 8/8/26 |
| 64,501 |
| 62,612 |
|
| Microsoft Corp. |
| 3.450% |
| 8/8/36 |
| 53,965 |
| 54,548 |
|
| Microsoft Corp. |
| 4.100% |
| 2/6/37 |
| 45,435 |
| 49,470 |
|
| Microsoft Corp. |
| 4.500% |
| 10/1/40 |
| 18,210 |
| 20,688 |
|
| Microsoft Corp. |
| 4.450% |
| 11/3/45 |
| 61,885 |
| 70,266 |
|
| Microsoft Corp. |
| 3.700% |
| 8/8/46 |
| 50,485 |
| 51,649 |
|
| Microsoft Corp. |
| 4.250% |
| 2/6/47 |
| 61,800 |
| 68,973 |
|
| Oracle Corp. |
| 5.000% |
| 7/8/19 |
| 35,000 |
| 35,201 |
|
| Oracle Corp. |
| 1.900% |
| 9/15/21 |
| 70,285 |
| 69,146 |
|
| Oracle Corp. |
| 2.500% |
| 5/15/22 |
| 38,860 |
| 38,727 |
|
Vanguard® Wellesley Income Fund
Schedule of Investments
March 31, 2019
|
|
| Coupon |
| Maturity |
| Face | ) | Market | ) |
|
|
|
|
|
|
|
|
|
|
|
| Oracle Corp. |
| 2.400% |
| 9/15/23 |
| 63,535 |
| 62,474 |
|
| Oracle Corp. |
| 2.950% |
| 11/15/24 |
| 80,105 |
| 80,346 |
|
| Oracle Corp. |
| 2.950% |
| 5/15/25 |
| 11,300 |
| 11,280 |
|
| Oracle Corp. |
| 3.250% |
| 11/15/27 |
| 112,120 |
| 112,777 |
|
| Oracle Corp. |
| 4.000% |
| 11/15/47 |
| 32,260 |
| 32,425 |
|
| QUALCOMM Inc. |
| 2.600% |
| 1/30/23 |
| 26,140 |
| 25,828 |
|
| QUALCOMM Inc. |
| 2.900% |
| 5/20/24 |
| 38,055 |
| 37,429 |
|
5 | Tencent Holdings Ltd. |
| 3.595% |
| 1/19/28 |
| 57,625 |
| 56,759 |
|
|
Transportation (0.5%) |
|
|
|
|
|
|
|
|
|
| Burlington Northern Santa Fe LLC |
| 3.050% |
| 3/15/22 |
| 7,235 |
| 7,320 |
|
| Burlington Northern Santa Fe LLC |
| 3.250% |
| 6/15/27 |
| 11,515 |
| 11,718 |
|
| CSX Corp. |
| 4.300% |
| 3/1/48 |
| 16,635 |
| 16,882 |
|
5 | ERAC USA Finance LLC |
| 2.350% |
| 10/15/19 |
| 12,165 |
| 12,127 |
|
5 | ERAC USA Finance LLC |
| 4.500% |
| 8/16/21 |
| 10,270 |
| 10,586 |
|
5 | ERAC USA Finance LLC |
| 3.300% |
| 10/15/22 |
| 745 |
| 747 |
|
5 | ERAC USA Finance LLC |
| 7.000% |
| 10/15/37 |
| 3,775 |
| 4,797 |
|
5 | ERAC USA Finance LLC |
| 5.625% |
| 3/15/42 |
| 31,000 |
| 34,969 |
|
| FedEx Corp. |
| 2.700% |
| 4/15/23 |
| 15,810 |
| 15,600 |
|
| FedEx Corp. |
| 5.100% |
| 1/15/44 |
| 23,340 |
| 24,244 |
|
| Kansas City Southern |
| 4.950% |
| 8/15/45 |
| 13,845 |
| 14,902 |
|
5 | Penske Truck Leasing Co. LP / PTL Finance Corp. |
| 3.950% |
| 3/10/25 |
| 53,520 |
| 53,600 |
|
| Union Pacific Corp. |
| 3.700% |
| 3/1/29 |
| 27,750 |
| 28,512 |
|
| Union Pacific Corp. |
| 4.300% |
| 3/1/49 |
| 7,030 |
| 7,271 |
|
| Union Pacific Corp. |
| 3.799% |
| 10/1/51 |
| 14,843 |
| 13,818 |
|
2 | United Airlines 2018-1 Class B Pass Through Trust |
| 4.600% |
| 3/1/26 |
| 7,587 |
| 7,685 |
|
| United Parcel Service Inc. |
| 2.450% |
| 10/1/22 |
| 17,095 |
| 17,070 |
|
| United Parcel Service Inc. |
| 4.875% |
| 11/15/40 |
| 4,925 |
| 5,470 |
|
|
|
|
|
|
|
|
|
| 11,117,536 |
|
Utilities (4.6%)
|
|
|
|
|
|
|
|
|
| |
| Electric (4.0%) |
|
|
|
|
|
|
|
|
|
| Alabama Power Co. |
| 5.200% |
| 6/1/41 |
| 3,365 |
| 3,800 |
|
| Alabama Power Co. |
| 4.100% |
| 1/15/42 |
| 5,595 |
| 5,546 |
|
| Alabama Power Co. |
| 3.750% |
| 3/1/45 |
| 20,255 |
| 19,698 |
|
| Alabama Power Co. |
| 4.300% |
| 7/15/48 |
| 27,790 |
| 29,519 |
|
| Ameren Illinois Co. |
| 2.700% |
| 9/1/22 |
| 58,000 |
| 57,859 |
|
| Ameren Illinois Co. |
| 3.800% |
| 5/15/28 |
| 22,365 |
| 23,434 |
|
| Ameren Illinois Co. |
| 3.700% |
| 12/1/47 |
| 5,085 |
| 5,005 |
|
| Baltimore Gas & Electric Co. |
| 2.800% |
| 8/15/22 |
| 26,250 |
| 26,187 |
|
| Baltimore Gas & Electric Co. |
| 2.400% |
| 8/15/26 |
| 20,945 |
| 19,797 |
|
| Berkshire Hathaway Energy Co. |
| 6.125% |
| 4/1/36 |
| 32,917 |
| 41,392 |
|
| Berkshire Hathaway Energy Co. |
| 5.150% |
| 11/15/43 |
| 10,725 |
| 12,314 |
|
| CenterPoint Energy Houston Electric LLC |
| 4.250% |
| 2/1/49 |
| 6,685 |
| 7,257 |
|
| Commonwealth Edison Co. |
| 2.950% |
| 8/15/27 |
| 23,275 |
| 22,814 |
|
| Commonwealth Edison Co. |
| 4.350% |
| 11/15/45 |
| 6,815 |
| 7,308 |
|
| Commonwealth Edison Co. |
| 3.650% |
| 6/15/46 |
| 6,420 |
| 6,258 |
|
| Commonwealth Edison Co. |
| 4.000% |
| 3/1/48 |
| 17,900 |
| 18,335 |
|
| Consolidated Edison Co. of New York Inc. |
| 5.850% |
| 3/15/36 |
| 9,500 |
| 11,336 |
|
| Consolidated Edison Co. of New York Inc. |
| 6.300% |
| 8/15/37 |
| 45,000 |
| 57,148 |
|
| Consolidated Edison Co. of New York Inc. |
| 4.500% |
| 12/1/45 |
| 30,855 |
| 32,741 |
|
| Consolidated Edison Co. of New York Inc. |
| 3.850% |
| 6/15/46 |
| 2,752 |
| 2,671 |
|
| Consolidated Edison Co. of New York Inc. |
| 4.625% |
| 12/1/54 |
| 24,915 |
| 26,291 |
|
| Consolidated Edison Co. of New York Inc. |
| 4.500% |
| 5/15/58 |
| 24,475 |
| 25,734 |
|
| Delmarva Power & Light Co. |
| 3.500% |
| 11/15/23 |
| 9,550 |
| 9,833 |
|
| Dominion Energy Inc. |
| 2.962% |
| 7/1/19 |
| 17,030 |
| 17,032 |
|
| Dominion Energy Inc. |
| 2.579% |
| 7/1/20 |
| 12,040 |
| 11,976 |
|
| Dominion Energy Inc. |
| 4.600% |
| 3/15/49 |
| 17,875 |
| 18,559 |
|
| DTE Energy Co. |
| 3.800% |
| 3/15/27 |
| 19,405 |
| 19,575 |
|
| Duke Energy Carolinas LLC |
| 3.900% |
| 6/15/21 |
| 11,045 |
| 11,320 |
|
| Duke Energy Carolinas LLC |
| 6.000% |
| 12/1/28 |
| 5,000 |
| 6,053 |
|
| Duke Energy Carolinas LLC |
| 6.100% |
| 6/1/37 |
| 13,915 |
| 17,496 |
|
| Duke Energy Carolinas LLC |
| 6.050% |
| 4/15/38 |
| 4,000 |
| 5,092 |
|
| Duke Energy Carolinas LLC |
| 4.250% |
| 12/15/41 |
| 6,375 |
| 6,779 |
|
| Duke Energy Carolinas LLC |
| 4.000% |
| 9/30/42 |
| 5,205 |
| 5,342 |
|
Vanguard® Wellesley Income Fund
Schedule of Investments
March 31, 2019
|
|
| Coupon |
| Maturity |
| Face | ) | Market | ) |
|
|
|
|
|
|
|
|
|
|
|
| Duke Energy Carolinas LLC |
| 3.700% |
| 12/1/47 |
| 17,220 |
| 16,862 |
|
| Duke Energy Corp. |
| 2.650% |
| 9/1/26 |
| 17,480 |
| 16,636 |
|
| Duke Energy Corp. |
| 4.800% |
| 12/15/45 |
| 37,600 |
| 40,318 |
|
| Duke Energy Corp. |
| 3.750% |
| 9/1/46 |
| 14,740 |
| 13,803 |
|
| Duke Energy Progress LLC |
| 2.800% |
| 5/15/22 |
| 20,140 |
| 20,221 |
|
| Duke Energy Progress LLC |
| 6.300% |
| 4/1/38 |
| 1,625 |
| 2,132 |
|
| Duke Energy Progress LLC |
| 4.100% |
| 3/15/43 |
| 6,221 |
| 6,424 |
|
| Duke Energy Progress LLC |
| 4.200% |
| 8/15/45 |
| 61,923 |
| 64,758 |
|
| Emera US Finance LP |
| 3.550% |
| 6/15/26 |
| 11,738 |
| 11,606 |
|
| Entergy Corp. |
| 2.950% |
| 9/1/26 |
| 7,085 |
| 6,764 |
|
| Entergy Louisiana LLC |
| 3.120% |
| 9/1/27 |
| 10,065 |
| 9,924 |
|
| Eversource Energy |
| 4.500% |
| 11/15/19 |
| 1,880 |
| 1,898 |
|
| Eversource Energy |
| 2.900% |
| 10/1/24 |
| 25,155 |
| 24,914 |
|
| Eversource Energy |
| 3.150% |
| 1/15/25 |
| 6,775 |
| 6,757 |
|
| Eversource Energy |
| 3.300% |
| 1/15/28 |
| 14,490 |
| 14,292 |
|
| Florida Power & Light Co. |
| 6.200% |
| 6/1/36 |
| 12,452 |
| 15,993 |
|
| Florida Power & Light Co. |
| 5.950% |
| 2/1/38 |
| 10,000 |
| 12,873 |
|
| Florida Power & Light Co. |
| 5.690% |
| 3/1/40 |
| 4,994 |
| 6,306 |
|
| Florida Power & Light Co. |
| 5.250% |
| 2/1/41 |
| 29,745 |
| 35,955 |
|
| Florida Power & Light Co. |
| 4.125% |
| 2/1/42 |
| 20,000 |
| 21,207 |
|
| Florida Power & Light Co. |
| 3.700% |
| 12/1/47 |
| 27,690 |
| 27,497 |
|
| Fortis Inc. |
| 3.055% |
| 10/4/26 |
| 44,365 |
| 42,444 |
|
| Georgia Power Co. |
| 4.750% |
| 9/1/40 |
| 34,725 |
| 36,056 |
|
| Georgia Power Co. |
| 4.300% |
| 3/15/42 |
| 48,262 |
| 47,984 |
|
| Indiana Michigan Power Co. |
| 4.250% |
| 8/15/48 |
| 14,590 |
| 14,937 |
|
5 | Massachusetts Electric Co. |
| 5.900% |
| 11/15/39 |
| 21,895 |
| 26,858 |
|
| MidAmerican Energy Co. |
| 5.750% |
| 11/1/35 |
| 9,925 |
| 12,029 |
|
| MidAmerican Energy Co. |
| 4.250% |
| 5/1/46 |
| 14,675 |
| 15,580 |
|
| MidAmerican Energy Co. |
| 4.250% |
| 7/15/49 |
| 11,000 |
| 11,701 |
|
5 | Monongahela Power Co. |
| 4.100% |
| 4/15/24 |
| 11,000 |
| 11,498 |
|
| National Rural Utilities Cooperative Finance Corp. |
| 3.050% |
| 2/15/22 |
| 13,800 |
| 13,832 |
|
| National Rural Utilities Cooperative Finance Corp. |
| 2.950% |
| 2/7/24 |
| 15,355 |
| 15,430 |
|
| National Rural Utilities Cooperative Finance Corp. |
| 2.850% |
| 1/27/25 |
| 32,210 |
| 31,747 |
|
| NextEra Energy Capital Holdings Inc. |
| 2.700% |
| 9/15/19 |
| 30,500 |
| 30,458 |
|
| NextEra Energy Capital Holdings Inc. |
| 3.250% |
| 4/1/26 |
| 8,840 |
| 8,845 |
|
| NextEra Energy Capital Holdings Inc. |
| 3.550% |
| 5/1/27 |
| 32,950 |
| 33,176 |
|
| NextEra Energy Capital Holdings Inc. |
| 3.500% |
| 4/1/29 |
| 12,880 |
| 12,868 |
|
5 | Niagara Mohawk Power Corp. |
| 4.278% |
| 12/15/28 |
| 35,280 |
| 37,456 |
|
| Oglethorpe Power Corp. |
| 5.950% |
| 11/1/39 |
| 5,145 |
| 6,017 |
|
| Oglethorpe Power Corp. |
| 4.550% |
| 6/1/44 |
| 1,835 |
| 1,811 |
|
| Oglethorpe Power Corp. |
| 4.250% |
| 4/1/46 |
| 20,029 |
| 18,834 |
|
| Oglethorpe Power Corp. |
| 5.250% |
| 9/1/50 |
| 17,225 |
| 18,802 |
|
| Oklahoma Gas & Electric Co. |
| 6.500% |
| 4/15/28 |
| 10,000 |
| 11,845 |
|
| Oncor Electric Delivery Co. LLC |
| 4.100% |
| 6/1/22 |
| 13,935 |
| 14,460 |
|
| Oncor Electric Delivery Co. LLC |
| 2.950% |
| 4/1/25 |
| 31,858 |
| 31,752 |
|
| Oncor Electric Delivery Co. LLC |
| 5.250% |
| 9/30/40 |
| 11,325 |
| 13,500 |
|
| Oncor Electric Delivery Co. LLC |
| 4.550% |
| 12/1/41 |
| 3,275 |
| 3,604 |
|
| PacifiCorp |
| 2.950% |
| 6/1/23 |
| 14,835 |
| 14,962 |
|
| PacifiCorp |
| 3.600% |
| 4/1/24 |
| 20,000 |
| 20,655 |
|
| PacifiCorp |
| 3.350% |
| 7/1/25 |
| 15,354 |
| 15,387 |
|
| PacifiCorp |
| 5.750% |
| 4/1/37 |
| 14,188 |
| 17,250 |
|
| Potomac Electric Power Co. |
| 3.050% |
| 4/1/22 |
| 4,235 |
| 4,237 |
|
| Potomac Electric Power Co. |
| 6.500% |
| 11/15/37 |
| 8,000 |
| 10,422 |
|
| PPL Electric Utilities Corp. |
| 2.500% |
| 9/1/22 |
| 12,830 |
| 12,671 |
|
| PPL Electric Utilities Corp. |
| 6.250% |
| 5/15/39 |
| 2,675 |
| 3,471 |
|
| Progress Energy Inc. |
| 3.150% |
| 4/1/22 |
| 20,800 |
| 20,880 |
|
| Public Service Electric & Gas Co. |
| 3.500% |
| 8/15/20 |
| 10,000 |
| 10,125 |
|
| Puget Sound Energy Inc. |
| 4.434% |
| 11/15/41 |
| 19,880 |
| 20,974 |
|
| Sierra Pacific Power Co. |
| 2.600% |
| 5/1/26 |
| 8,027 |
| 7,708 |
|
| South Carolina Electric & Gas Co. |
| 4.250% |
| 8/15/28 |
| 24,205 |
| 26,001 |
|
| South Carolina Electric & Gas Co. |
| 6.625% |
| 2/1/32 |
| 4,832 |
| 6,066 |
|
| South Carolina Electric & Gas Co. |
| 5.300% |
| 5/15/33 |
| 1,446 |
| 1,639 |
|
| South Carolina Electric & Gas Co. |
| 6.050% |
| 1/15/38 |
| 23,085 |
| 28,424 |
|
| South Carolina Electric & Gas Co. |
| 5.450% |
| 2/1/41 |
| 9,627 |
| 11,412 |
|
Vanguard® Wellesley Income Fund
Schedule of Investments
March 31, 2019
|
|
| Coupon |
| Maturity |
| Face | ) | Market | ) |
|
|
|
|
|
|
|
|
|
|
|
| South Carolina Electric & Gas Co. |
| 4.350% |
| 2/1/42 |
| 15,742 |
| 16,708 |
|
| South Carolina Electric & Gas Co. |
| 4.600% |
| 6/15/43 |
| 6,830 |
| 7,406 |
|
| South Carolina Electric & Gas Co. |
| 5.100% |
| 6/1/65 |
| 25,065 |
| 28,850 |
|
| Southern California Edison Co. |
| 3.875% |
| 6/1/21 |
| 24,860 |
| 25,059 |
|
| Southern California Edison Co. |
| 2.400% |
| 2/1/22 |
| 8,270 |
| 8,034 |
|
| Southern California Edison Co. |
| 3.700% |
| 8/1/25 |
| 3,225 |
| 3,226 |
|
| Southern California Edison Co. |
| 5.750% |
| 4/1/35 |
| 5,000 |
| 5,550 |
|
| Southern California Edison Co. |
| 6.050% |
| 3/15/39 |
| 1,995 |
| 2,310 |
|
| Southern California Edison Co. |
| 4.500% |
| 9/1/40 |
| 5,150 |
| 5,150 |
|
| Southern California Edison Co. |
| 4.050% |
| 3/15/42 |
| 15,788 |
| 14,929 |
|
| Southern California Edison Co. |
| 3.900% |
| 3/15/43 |
| 8,782 |
| 8,075 |
|
| Southern California Edison Co. |
| 4.650% |
| 10/1/43 |
| 16,770 |
| 17,117 |
|
| Southern California Edison Co. |
| 3.600% |
| 2/1/45 |
| 8,160 |
| 7,158 |
|
| Southern California Edison Co. |
| 4.000% |
| 4/1/47 |
| 257 |
| 241 |
|
| Southern California Edison Co. |
| 4.125% |
| 3/1/48 |
| 64,754 |
| 61,858 |
|
| Southern Co. |
| 2.950% |
| 7/1/23 |
| 44,985 |
| 44,857 |
|
| Southwestern Electric Power Co. |
| 2.750% |
| 10/1/26 |
| 15,000 |
| 14,253 |
|
| Southwestern Electric Power Co. |
| 6.200% |
| 3/15/40 |
| 9,800 |
| 11,969 |
|
| Southwestern Public Service Co. |
| 3.700% |
| 8/15/47 |
| 3,790 |
| 3,629 |
|
| Tampa Electric Co. |
| 2.600% |
| 9/15/22 |
| 20,205 |
| 20,057 |
|
| Virginia Electric & Power Co. |
| 3.500% |
| 3/15/27 |
| 40,765 |
| 41,469 |
|
| Virginia Electric & Power Co. |
| 6.000% |
| 5/15/37 |
| 9,435 |
| 11,725 |
|
| Wisconsin Electric Power Co. |
| 5.700% |
| 12/1/36 |
| 13,825 |
| 16,920 |
|
| Xcel Energy Inc. |
| 3.350% |
| 12/1/26 |
| 33,370 |
| 33,433 |
|
|
Natural Gas (0.5%) |
|
|
|
|
|
|
|
|
|
5 | Boston Gas Co. |
| 3.150% |
| 8/1/27 |
| 8,010 |
| 7,842 |
|
5 | Brooklyn Union Gas Co. |
| 4.273% |
| 3/15/48 |
| 63,125 |
| 65,295 |
|
| CenterPoint Energy Resources Corp. |
| 4.500% |
| 1/15/21 |
| 3,800 |
| 3,896 |
|
| CenterPoint Energy Resources Corp. |
| 6.625% |
| 11/1/37 |
| 4,406 |
| 5,532 |
|
5 | Infraestructura Energetica Nova SAB de CV |
| 4.875% |
| 1/14/48 |
| 16,735 |
| 14,319 |
|
5 | KeySpan Gas East Corp. |
| 2.742% |
| 8/15/26 |
| 37,580 |
| 35,928 |
|
5 | KeySpan Gas East Corp. |
| 5.819% |
| 4/1/41 |
| 5,060 |
| 6,147 |
|
| NiSource Finance Corp. |
| 6.250% |
| 12/15/40 |
| 10,000 |
| 12,569 |
|
| Nisource Finance Corp. |
| 5.250% |
| 2/15/43 |
| 13,546 |
| 14,918 |
|
| NiSource Finance Corp. |
| 4.800% |
| 2/15/44 |
| 8,500 |
| 8,958 |
|
| Sempra Energy |
| 2.850% |
| 11/15/20 |
| 11,900 |
| 11,876 |
|
| Sempra Energy |
| 2.875% |
| 10/1/22 |
| 14,066 |
| 13,859 |
|
| Sempra Energy |
| 3.800% |
| 2/1/38 |
| 20,000 |
| 18,306 |
|
| Sempra Energy |
| 6.000% |
| 10/15/39 |
| 16,184 |
| 18,936 |
|
| Southern California Gas Co. |
| 2.600% |
| 6/15/26 |
| 28,885 |
| 27,470 |
|
| Other Utility (0.1%) |
|
|
|
|
|
|
|
|
|
| American Water Capital Corp. |
| 2.950% |
| 9/1/27 |
| 20,245 |
| 19,924 |
|
| American Water Capital Corp. |
| 4.200% |
| 9/1/48 |
| 28,425 |
| 29,856 |
|
|
|
|
|
|
|
|
|
| 2,450,063 |
|
Total Corporate Bonds (Cost $22,414,429) |
|
|
|
|
|
|
| 22,899,307 |
| |
Sovereign Bonds (2.9%) |
|
|
|
|
|
|
|
|
| |
5 | CDP Financial Inc. |
| 4.400% |
| 11/25/19 |
| 22,000 |
| 22,244 |
|
5 | Electricite de France SA |
| 4.600% |
| 1/27/20 |
| 31,972 |
| 32,456 |
|
5 | Electricite de France SA |
| 4.875% |
| 9/21/38 |
| 81,600 |
| 83,130 |
|
5 | Electricite de France SA |
| 4.875% |
| 1/22/44 |
| 2,910 |
| 2,941 |
|
5 | Electricite de France SA |
| 4.950% |
| 10/13/45 |
| 12,500 |
| 12,703 |
|
| Equinor ASA |
| 2.250% |
| 11/8/19 |
| 16,095 |
| 16,056 |
|
| Equinor ASA |
| 2.900% |
| 11/8/20 |
| 22,450 |
| 22,567 |
|
| Equinor ASA |
| 2.750% |
| 11/10/21 |
| 31,091 |
| 31,266 |
|
| Equinor ASA |
| 2.450% |
| 1/17/23 |
| 10,840 |
| 10,769 |
|
| Equinor ASA |
| 2.650% |
| 1/15/24 |
| 10,105 |
| 10,068 |
|
| Equinor ASA |
| 3.700% |
| 3/1/24 |
| 20,035 |
| 20,912 |
|
| Equinor ASA |
| 3.250% |
| 11/10/24 |
| 22,425 |
| 22,955 |
|
| Export-Import Bank of Korea |
| 1.750% |
| 5/26/19 |
| 70,100 |
| 70,010 |
|
| Japan Bank for International Cooperation |
| 2.250% |
| 2/24/20 |
| 53,298 |
| 53,178 |
|
| Japan Bank for International Cooperation |
| 2.125% |
| 6/1/20 |
| 21,888 |
| 21,790 |
|
Vanguard® Wellesley Income Fund
Schedule of Investments
March 31, 2019
|
|
| Coupon |
| Maturity |
| Face | ) | Market | ) |
|
|
|
|
|
|
|
|
|
|
|
| Japan Bank for International Cooperation |
| 2.125% |
| 7/21/20 |
| 40,500 |
| 40,303 |
|
5 | Kingdom of Saudi Arabia |
| 2.375% |
| 10/26/21 |
| 31,570 |
| 31,067 |
|
5 | Kingdom of Saudi Arabia |
| 2.875% |
| 3/4/23 |
| 49,100 |
| 48,620 |
|
5 | Kingdom of Saudi Arabia |
| 4.000% |
| 4/17/25 |
| 45,170 |
| 46,312 |
|
| Korea Development Bank |
| 2.500% |
| 3/11/20 |
| 62,550 |
| 62,350 |
|
| Petroleos Mexicanos |
| 6.350% |
| 2/12/48 |
| 11,770 |
| 10,377 |
|
| Province of Ontario |
| 4.400% |
| 4/14/20 |
| 48,000 |
| 48,882 |
|
| Province of Ontario |
| 2.500% |
| 4/27/26 |
| 100,400 |
| 98,914 |
|
| Province of Quebec |
| 2.500% |
| 4/20/26 |
| 134,755 |
| 133,278 |
|
5 | Sinopec Group Overseas Development 2015 Ltd. |
| 2.500% |
| 4/28/20 |
| 51,685 |
| 51,437 |
|
5 | Sinopec Group Overseas Development 2015 Ltd. |
| 3.250% |
| 4/28/25 |
| 51,685 |
| 51,202 |
|
5 | Sinopec Group Overseas Development 2016 Ltd. |
| 3.500% |
| 5/3/26 |
| 28,000 |
| 27,979 |
|
5 | Sinopec Group Overseas Development 2017 Ltd. |
| 3.000% |
| 4/12/22 |
| 31,520 |
| 31,347 |
|
5 | State Grid Overseas Investment 2014 Ltd. |
| 2.750% |
| 5/7/19 |
| 41,455 |
| 41,455 |
|
5 | State Grid Overseas Investment 2016 Ltd. |
| 2.750% |
| 5/4/22 |
| 63,500 |
| 62,883 |
|
5 | State Grid Overseas Investment 2016 Ltd. |
| 3.500% |
| 5/4/27 |
| 29,070 |
| 29,168 |
|
5 | State of Kuwait |
| 2.750% |
| 3/20/22 |
| 4,315 |
| 4,316 |
|
5 | State of Qatar |
| 5.250% |
| 1/20/20 |
| 53,470 |
| 54,410 |
|
5 | State of Qatar |
| 2.375% |
| 6/2/21 |
| 55,255 |
| 54,507 |
|
5 | State of Qatar |
| 3.875% |
| 4/23/23 |
| 72,530 |
| 74,625 |
|
5 | State of Qatar |
| 4.000% |
| 3/14/29 |
| 18,952 |
| 19,540 |
|
5 | State of Qatar |
| 5.103% |
| 4/23/48 |
| 30,000 |
| 32,969 |
|
5 | Temasek Financial I Ltd. |
| 2.375% |
| 1/23/23 |
| 39,070 |
| 38,625 |
|
5 | Temasek Financial I Ltd. |
| 3.625% |
| 8/1/28 |
| 36,135 |
| 37,761 |
|
Total Sovereign Bonds (Cost $1,554,289) |
|
|
|
|
|
|
| 1,565,372 |
| |
Taxable Municipal Bonds (3.0%)
|
|
|
|
|
|
|
|
|
| |
| Bay Area Toll Authority California Toll Bridge Revenue (San Francisco Bay Area) |
| 6.263% |
| 4/1/49 |
| 27,625 |
| 39,396 |
|
| Bay Area Toll Authority California Toll Bridge Revenue (San Francisco Bay Area) |
| 7.043% |
| 4/1/50 |
| 28,955 |
| 44,290 |
|
| California GO |
| 5.700% |
| 11/1/21 |
| 10,875 |
| 11,782 |
|
| California GO |
| 7.500% |
| 4/1/34 |
| 5,845 |
| 8,438 |
|
| California GO |
| 7.550% |
| 4/1/39 |
| 32,345 |
| 49,123 |
|
| California GO |
| 7.300% |
| 10/1/39 |
| 4,460 |
| 6,454 |
|
| California GO |
| 7.350% |
| 11/1/39 |
| 61,000 |
| 88,788 |
|
| California GO |
| 7.625% |
| 3/1/40 |
| 1,035 |
| 1,568 |
|
| California GO |
| 7.600% |
| 11/1/40 |
| 42,545 |
| 66,051 |
|
| Chicago IL Metropolitan Water Reclamation District GO |
| 5.720% |
| 12/1/38 |
| 4,445 |
| 5,608 |
|
| Chicago IL O’Hare International Airport Revenue |
| 6.845% |
| 1/1/38 |
| 14,590 |
| 15,029 |
|
| Chicago IL O’Hare International Airport Revenue |
| 6.395% |
| 1/1/40 |
| 13,390 |
| 17,856 |
|
| Chicago IL Transit Authority Sales Tax Receipts Revenue |
| 6.200% |
| 12/1/40 |
| 1,790 |
| 2,253 |
|
| Chicago IL Transit Authority Sales Tax Receipts Revenue |
| 6.899% |
| 12/1/40 |
| 24,650 |
| 32,370 |
|
| Chicago IL Transit Authority Transfer Tax Receipts Revenue |
| 6.899% |
| 12/1/40 |
| 59,990 |
| 78,777 |
|
| Dallas TX Area Rapid Transit Revenue |
| 5.999% |
| 12/1/44 |
| 22,485 |
| 30,038 |
|
| District of Columbia Income Tax Revenue |
| 5.591% |
| 12/1/34 |
| 6,480 |
| 7,924 |
|
| Duke University North Carolina Revenue |
| 5.850% |
| 4/1/37 |
| 62,165 |
| 80,322 |
|
| Georgetown University District of Columbia |
| 4.315% |
| 4/1/49 |
| 7,010 |
| 7,693 |
|
| Georgia Municipal Electric Power Authority Revenue |
| 6.637% |
| 4/1/57 |
| 61,325 |
| 69,015 |
|
| Georgia Municipal Electric Power Authority Revenue |
| 6.655% |
| 4/1/57 |
| 7,688 |
| 9,241 |
|
| Houston TX GO |
| 6.290% |
| 3/1/32 |
| 15,660 |
| 18,705 |
|
| Illinois GO |
| 5.100% |
| 6/1/33 |
| 45,890 |
| 45,092 |
|
| Illinois Toll Highway Authority Revenue |
| 6.184% |
| 1/1/34 |
| 16,525 |
| 21,289 |
|
| Kansas Development Finance Authority Revenue |
| 4.927% |
| 4/15/45 |
| 42,310 |
| 48,812 |
|
| Los Angeles CA Community College District GO |
| 6.750% |
| 8/1/49 |
| 12,915 |
| 19,522 |
|
| Los Angeles CA Department of Water & Power Revenue |
| 6.574% |
| 7/1/45 |
| 19,040 |
| 27,772 |
|
| Los Angeles CA Unified School District GO |
| 5.750% |
| 7/1/34 |
| 26,590 |
| 32,687 |
|
| Louisville & Jefferson County KY Metropolitan Sewer District Sewer & Drainage System Revenue |
| 6.250% |
| 5/15/43 |
| 11,000 |
| 15,208 |
|
Vanguard® Wellesley Income Fund
Schedule of Investments
March 31, 2019
|
|
| Coupon |
| Maturity |
| Face | ) | Market | ) |
|
|
|
|
|
|
|
|
|
|
|
| Maryland Transportation Authority Facilities Projects Revenue |
| 5.888% |
| 7/1/43 |
| 12,005 |
| 15,467 |
|
| Massachusetts School Building Authority Dedicated Sales Tax Revenue |
| 5.715% |
| 8/15/39 |
| 15,000 |
| 18,995 |
|
| Municipal Electric Authority of Georgia |
| 4.430% |
| 1/1/22 |
| 7,795 |
| 8,078 |
|
| New Jersey Turnpike Authority Revenue |
| 7.414% |
| 1/1/40 |
| 28,975 |
| 43,521 |
|
| New Jersey Turnpike Authority Revenue |
| 7.102% |
| 1/1/41 |
| 2,000 |
| 2,916 |
|
| New York City NY Municipal Water Finance Authority Water & Sewer System Revenue |
| 5.790% |
| 6/15/41 |
| 1,805 |
| 1,872 |
|
| New York City NY Municipal Water Finance Authority Water & Sewer System Revenue |
| 5.882% |
| 6/15/44 |
| 2,485 |
| 3,397 |
|
| New York Metropolitan Transportation Authority Revenue |
| 6.814% |
| 11/15/40 |
| 2,655 |
| 3,621 |
|
| New York Metropolitan Transportation Authority Revenue (Dedicated Tax Fund) |
| 7.336% |
| 11/15/39 |
| 2,430 |
| 3,633 |
|
| New York Metropolitan Transportation Authority Revenue (Dedicated Tax Fund) |
| 6.089% |
| 11/15/40 |
| 16,940 |
| 21,835 |
|
| New York State Thruway Authority Revenue |
| 5.883% |
| 4/1/30 |
| 29,670 |
| 35,986 |
|
| New York State Urban Development Corp. Revenue |
| 2.100% |
| 3/15/22 |
| 86,245 |
| 85,456 |
|
| North Texas Tollway Authority System Revenue |
| 6.718% |
| 1/1/49 |
| 31,790 |
| 47,307 |
|
| Oregon Department of Transportation Highway User Tax Revenue |
| 5.834% |
| 11/15/34 |
| 14,510 |
| 18,715 |
|
7 | Oregon School Boards Association GO |
| 4.759% |
| 6/30/28 |
| 15,000 |
| 16,367 |
|
| Port Authority of New York & New Jersey Revenue |
| 5.859% |
| 12/1/24 |
| 9,605 |
| 11,131 |
|
| Port Authority of New York & New Jersey Revenue |
| 6.040% |
| 12/1/29 |
| 5,665 |
| 7,033 |
|
| Port Authority of New York & New Jersey Revenue |
| 4.458% |
| 10/1/62 |
| 58,000 |
| 64,979 |
|
| Port Authority of New York & New Jersey Revenue |
| 4.810% |
| 10/15/65 |
| 10,910 |
| 12,834 |
|
| Princeton University New Jersey GO |
| 5.700% |
| 3/1/39 |
| 13,020 |
| 17,081 |
|
| Regents of the University of California Revenue |
| 3.063% |
| 7/1/25 |
| 49,360 |
| 50,230 |
|
| Sales Tax Securitization Corp. Illinois Revenue |
| 4.787% |
| 1/1/48 |
| 21,030 |
| 22,633 |
|
| San Antonio TX Electric & Gas Systems Revenue |
| 5.985% |
| 2/1/39 |
| 6,175 |
| 8,240 |
|
| Texas Transportation Commission Revenue |
| 5.178% |
| 4/1/30 |
| 12,275 |
| 14,420 |
|
| University of California |
| 3.349% |
| 7/1/29 |
| 21,965 |
| 22,576 |
|
| University of California Regents Medical Center Revenue |
| 6.548% |
| 5/15/48 |
| 20,485 |
| 28,462 |
|
| University of California Regents Medical Center Revenue |
| 6.583% |
| 5/15/49 |
| 18,160 |
| 25,140 |
|
| University of California Revenue |
| 4.601% |
| 5/15/31 |
| 19,390 |
| 21,640 |
|
| University of California Revenue |
| 5.770% |
| 5/15/43 |
| 23,675 |
| 30,146 |
|
| University of California Revenue |
| 4.765% |
| 5/15/44 |
| 4,740 |
| 5,063 |
|
| University of California Revenue |
| 3.931% |
| 5/15/45 |
| 18,275 |
| 18,723 |
|
| Wisconsin Annual Appropriation Revenue |
| 3.954% |
| 5/1/36 |
| 28,325 |
| 29,043 |
|
8 | Wisconsin GO |
| 5.700% |
| 5/1/26 |
| 9,000 |
| 10,096 |
|
Total Taxable Municipal Bonds (Cost $1,423,799) |
|
|
|
|
|
|
| 1,627,739 |
|
|
|
|
|
|
|
| Shares |
|
|
|
Common Stocks (37.3%) |
|
|
|
|
|
|
|
|
| |
Communication Services (2.7%) |
|
|
|
|
|
|
|
|
| |
| Verizon Communications Inc. |
|
|
|
|
| 13,358,818 |
| 789,907 |
|
| Comcast Corp. Class A |
|
|
|
|
| 11,973,672 |
| 478,708 |
|
| BCE Inc. |
|
|
|
|
| 3,672,041 |
| 163,055 |
|
|
|
|
|
|
|
|
|
| 1,431,670 |
|
Consumer Discretionary (1.3%) |
|
|
|
|
|
|
|
|
| |
| Home Depot Inc. |
|
|
|
|
| 1,584,613 |
| 304,071 |
|
| McDonald’s Corp. |
|
|
|
|
| 1,370,509 |
| 260,260 |
|
| Cie Generale des Etablissements Michelin SCA |
|
|
|
|
| 972,252 |
| 114,866 |
|
|
|
|
|
|
|
|
|
| 679,197 |
|
Consumer Staples (4.4%) |
|
|
|
|
|
|
|
|
| |
| Philip Morris International Inc. |
|
|
|
|
| 5,821,587 |
| 514,570 |
|
| Unilever NV |
|
|
|
|
| 7,413,579 |
| 432,137 |
|
Vanguard® Wellesley Income Fund
Schedule of Investments
March 31, 2019
|
|
|
|
|
|
| Shares |
| Market | ) |
|
|
|
|
|
|
|
|
|
|
|
| Coca-Cola Co. |
|
|
|
|
| 7,684,788 |
| 360,109 |
|
| Procter & Gamble Co. |
|
|
|
|
| 3,073,087 |
| 319,755 |
|
| PepsiCo Inc. |
|
|
|
|
| 2,109,536 |
| 258,524 |
|
| Mondelez International Inc. Class A |
|
|
|
|
| 4,809,011 |
| 240,066 |
|
| Nestle SA |
|
|
|
|
| 1,973,153 |
| 188,141 |
|
| Sysco Corp. |
|
|
|
|
| 1,067,256 |
| 71,250 |
|
|
|
|
|
|
|
|
|
| 2,384,552 |
|
Energy (4.1%) |
|
|
|
|
|
|
|
|
| |
| Chevron Corp. |
|
|
|
|
| 4,233,852 |
| 521,526 |
|
| Exxon Mobil Corp. |
|
|
|
|
| 5,454,445 |
| 440,719 |
|
| Suncor Energy Inc. |
|
|
|
|
| 13,350,176 |
| 432,946 |
|
^ | TransCanada Corp. |
|
|
|
|
| 6,746,946 |
| 303,028 |
|
| Occidental Petroleum Corp. |
|
|
|
|
| 3,195,825 |
| 211,564 |
|
| Kinder Morgan Inc. |
|
|
|
|
| 10,070,431 |
| 201,510 |
|
| Phillips 66 |
|
|
|
|
| 1,065,474 |
| 101,401 |
|
|
|
|
|
|
|
|
|
| 2,212,694 |
|
Financials (5.7%) |
|
|
|
|
|
|
|
|
| |
| JPMorgan Chase & Co. |
|
|
|
|
| 8,418,311 |
| 852,186 |
|
| MetLife Inc. |
|
|
|
|
| 8,532,406 |
| 363,224 |
|
| Wells Fargo & Co. |
|
|
|
|
| 7,409,822 |
| 358,043 |
|
| Bank of America Corp. |
|
|
|
|
| 8,607,932 |
| 237,493 |
|
| Travelers Cos. Inc. |
|
|
|
|
| 1,672,015 |
| 229,334 |
|
| PNC Financial Services Group Inc. |
|
|
|
|
| 1,788,304 |
| 219,353 |
|
| Chubb Ltd. |
|
|
|
|
| 1,417,460 |
| 198,558 |
|
| M&T Bank Corp. |
|
|
|
|
| 1,191,350 |
| 187,066 |
|
| BB&T Corp. |
|
|
|
|
| 3,830,357 |
| 178,226 |
|
| American International Group Inc. |
|
|
|
|
| 3,176,250 |
| 136,769 |
|
| BlackRock Inc. |
|
|
|
|
| 184,362 |
| 78,791 |
|
|
|
|
|
|
|
|
|
| 3,039,043 |
|
Health Care (6.8%) |
|
|
|
|
|
|
|
|
| |
| Johnson & Johnson |
|
|
|
|
| 5,269,718 |
| 736,654 |
|
| Pfizer Inc. |
|
|
|
|
| 15,785,435 |
| 670,407 |
|
| Merck & Co. Inc. |
|
|
|
|
| 5,530,242 |
| 459,950 |
|
| Medtronic plc |
|
|
|
|
| 3,739,225 |
| 340,569 |
|
| Novartis AG |
|
|
|
|
| 3,280,424 |
| 315,313 |
|
| Roche Holding AG |
|
|
|
|
| 1,025,406 |
| 282,556 |
|
| Koninklijke Philips NV |
|
|
|
|
| 6,590,891 |
| 269,289 |
|
| Bristol-Myers Squibb Co. |
|
|
|
|
| 4,591,161 |
| 219,044 |
|
| Eli Lilly & Co. |
|
|
|
|
| 1,503,252 |
| 195,062 |
|
| AstraZeneca plc ADR |
|
|
|
|
| 3,700,467 |
| 149,610 |
|
|
|
|
|
|
|
|
|
| 3,638,454 |
|
Industrials (3.1%) |
|
|
|
|
|
|
|
|
| |
| Lockheed Martin Corp. |
|
|
|
|
| 1,396,116 |
| 419,058 |
|
| Caterpillar Inc. |
|
|
|
|
| 2,260,179 |
| 306,232 |
|
| Eaton Corp. plc |
|
|
|
|
| 3,784,109 |
| 304,848 |
|
| 3M Co. |
|
|
|
|
| 1,281,775 |
| 266,327 |
|
| Union Pacific Corp. |
|
|
|
|
| 1,244,351 |
| 208,055 |
|
| BAE Systems plc |
|
|
|
|
| 25,797,682 |
| 162,159 |
|
|
|
|
|
|
|
|
|
| 1,666,679 |
|
Information Technology (4.0%) |
|
|
|
|
|
|
|
|
| |
| Cisco Systems Inc. |
|
|
|
|
| 14,316,276 |
| 772,936 |
|
| Intel Corp. |
|
|
|
|
| 10,159,855 |
| 545,584 |
|
| Analog Devices Inc. |
|
|
|
|
| 2,762,052 |
| 290,761 |
|
| QUALCOMM Inc. |
|
|
|
|
| 3,365,287 |
| 191,922 |
|
| Maxim Integrated Products Inc. |
|
|
|
|
| 3,149,619 |
| 167,465 |
|
| KLA-Tencor Corp. |
|
|
|
|
| 1,044,076 |
| 124,673 |
|
| Texas Instruments Inc. |
|
|
|
|
| 386,523 |
| 40,999 |
|
|
|
|
|
|
|
|
|
| 2,134,340 |
|
Materials (1.2%) |
|
|
|
|
|
|
|
|
| |
| DowDuPont Inc. |
|
|
|
|
| 6,802,899 |
| 362,662 |
|
^ | Nutrien Ltd. |
|
|
|
|
| 3,661,693 |
| 193,191 |
|
| International Paper Co. |
|
|
|
|
| 2,014,585 |
| 93,215 |
|
|
|
|
|
|
|
|
|
| 649,068 |
|
Vanguard® Wellesley Income Fund
Schedule of Investments
March 31, 2019
|
|
|
|
|
|
| Shares |
| Market | ) |
Real Estate (0.7%) |
|
|
|
|
|
|
|
|
| |
| Crown Castle International Corp. |
|
|
|
|
| 2,939,753 |
| 376,288 |
|
|
|
|
|
|
|
|
|
|
|
|
Utilities (3.3%) |
|
|
|
|
|
|
|
|
| |
| Dominion Energy Inc. |
|
|
|
|
| 4,447,057 |
| 340,911 |
|
| NextEra Energy Inc. |
|
|
|
|
| 1,346,720 |
| 260,348 |
|
| Duke Energy Corp. |
|
|
|
|
| 2,890,898 |
| 260,181 |
|
| Sempra Energy |
|
|
|
|
| 2,057,469 |
| 258,953 |
|
| American Electric Power Co. Inc. |
|
|
|
|
| 2,886,425 |
| 241,738 |
|
| Eversource Energy |
|
|
|
|
| 3,279,178 |
| 232,658 |
|
| Xcel Energy Inc. |
|
|
|
|
| 1,386,587 |
| 77,940 |
|
| Exelon Corp. |
|
|
|
|
| 1,544,527 |
| 77,427 |
|
| Edison International |
|
|
|
|
| 823,495 |
| 50,991 |
|
|
|
|
|
|
|
|
|
| 1,801,147 |
|
Total Common Stocks (Cost $14,535,926) |
|
|
|
|
|
|
| 20,013,132 |
|
|
|
| Coupon |
|
|
|
|
|
|
|
Temporary Cash Investments (3.5%) |
|
|
|
|
|
|
|
|
| |
Money Market Fund (0.6%) |
|
|
|
|
|
|
|
|
| |
9,10 | Vanguard Market Liquidity Fund |
| 2.554% |
|
|
| 3,398,974 |
| 339,965 |
|
|
|
|
|
| Maturity |
| Face | ) |
|
|
Repurchase Agreements (2.5%) |
|
|
|
|
|
|
|
|
| |
| Bank of America Securities, LLC |
| 2.550% |
| 4/1/19 |
| 136,900 |
| 136,900 |
|
| Deutsche Bank Securities, Inc. |
| 2.570% |
| 4/1/19 |
| 13,000 |
| 13,000 |
|
| HSBC Bank USA |
| 2.550% |
| 4/1/19 |
| 120,500 |
| 120,500 |
|
| HSBC Bank USA |
| 2.570% |
| 4/1/19 |
| 51,000 |
| 51,000 |
|
| JP Morgan Securities LLC |
| 2.550% |
| 4/1/19 |
| 172,000 |
| 172,000 |
|
Vanguard® Wellesley Income Fund
Schedule of Investments
March 31, 2019
|
|
| Coupon |
| Maturity |
| Face | ) | Market | ) |
| Natixis SA |
| 2.550% |
| 4/1/19 |
| 177,200 |
| 177,200 |
|
| Nomura International PLC |
| 2.570% |
| 4/1/19 |
| 418,400 |
| 418,400 |
|
| RBC Capital Markets LLC |
| 2.550% |
| 4/1/19 |
| 118,900 |
| 118,900 |
|
| RBS Securities, Inc. |
| 2.550% |
| 4/1/19 |
| 103,800 |
| 103,800 |
|
|
|
|
|
|
|
|
|
| 1,311,700 |
|
U.S. Government and Agency Obligations (0.4%) |
|
|
|
|
|
|
|
|
| |
| United States Treasury Bill |
| 2.365% |
| 4/11/19 |
| 200,000 |
| 199,866 |
|
Total Temporary Cash Investments (Cost $1,851,500) |
|
|
|
|
| 1,851,531 |
| |||
Total Investments (100.4%) (Cost $47,595,953) |
|
|
|
|
|
|
| 53,843,666 |
| |
Other Assets and Liabilities—Net (-0.4%) |
|
|
|
|
|
|
| (206,211 | ) | |
Net Assets (100%) |
|
|
|
|
|
|
| 53,637,455 |
|
§ | Security value determined using significant unobservable inputs. |
^ | Includes partial security positions on loan to broker-dealers. The total value of securities on loan is $320,198,000. |
1 | Securities with a value of $4,686,000 have been segregated as initial margin for open futures contracts. |
2 | The average or expected maturity is shorter than the final maturity shown because of the possibility of interim principal payments and prepayments or the possibility of the issue being called. |
3 | The issuer was placed under federal conservatorship in September 2008; since that time, its daily operations have been managed by the Federal Housing Finance Agency and it receives capital from the U.S. Treasury, as needed to maintain a positive net worth, in exchange for senior preferred stock. |
4 | Includes securities purchased on a when-issued or delayed-delivery basis for which the fund has not taken delivery as of March 31, 2019. |
5 | Security exempt from registration under Rule 144A of the Securities Act of 1933. Such securities may be sold in transactions exempt from registration, normally to qualified institutional buyers. At March 31, 2019, the aggregate value of these securities was $6,608,283,000, representing 12.3% of net assets. |
6 | Adjustable-rate security, rate shown is effective rate at period end. Certain adjustable rate securities are not based on a published reference rate and spread but are determined by the issuer or agent based on current market conditions. |
7 | Scheduled principal and interest payments are guaranteed by AMBAC (Ambac Assurance Corporation). |
8 | Scheduled principal and interest payments are guaranteed by AGM (Assured Guaranty Municipal Corporation). |
9 | Affiliated money market fund available only to Vanguard funds and certain trusts and accounts managed by Vanguard. Rate shown is the 7-day yield. |
10 | Includes $339,910,000 of collateral received for securities on loan. |
| ADR—American Depositary Receipt. |
| GO—General Obligation Bond. |
| LIBOR—London Inter-bank Offered Rate. |
| REMICS—Real Estate Mortgage Investment Conduits. |
| © 2019 The Vanguard Group, Inc. |
| All rights reserved. |
| Vanguard Marketing Corporation, Distributor. |
|
|
| SNA272 052019 |
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: Disclosure of Securities Lending Activities for Closed-End Management Investment Companies.
Not Applicable.
Item 13: Exhibits.
(a) 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 WELLESLEY INCOME FUND | |
|
| |
BY: | /s/ MORTIMER J. BUCKLEY* |
|
|
|
|
| MORTIMER J. BUCKLEY |
|
| CHIEF EXECUTIVE OFFICER |
|
Date: May 17, 2019
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 WELLESLEY INCOME FUND | |
|
| |
BY: | /s/ MORTIMER J. BUCKLEY* |
|
|
|
|
| MORTIMER J. BUCKLEY |
|
| CHIEF EXECUTIVE OFFICER |
|
| ||
Date: May 17, 2019 | ||
| ||
| VANGUARD WELLESLEY INCOME FUND | |
|
| |
BY: | /s/ THOMAS J. HIGGINS* |
|
|
|
|
| THOMAS J. HIGGINS |
|
| CHIEF FINANCIAL OFFICER |
|
|
| |
Date: May 17, 2019 |
|
* By: /s/ Anne E. Robinson
Anne E. Robinson, pursuant to a Power of Attorney filed on January 18, 2018; see file Number 33-32216, Incorporated by Reference.