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: 811-00121
Name of Registrant: Vanguard Wellington Fund
Address of Registrant:
P.O. Box 2600
Valley Forge, PA 19482
Name and address of agent for service:
Heidi Stam, Esquire
P.O. Box 876
Valley Forge, PA 19482
Registrant’s telephone number, including area code: (610) 669-1000
Date of fiscal year end: November 30
Date of reporting period: December 1, 2014 – November 30, 2015
Item 1: Reports to Shareholders
Annual Report | November 30, 2015
Vanguard Wellington™ Fund
Vanguard’s Principles for Investing Success
We want to give you the best chance of investment success. These principles, grounded in Vanguard’s research and experience, can put you on the right path.
Goals. Create clear, appropriate investment goals.
Balance. Develop a suitable asset allocation using broadly diversified funds.
Cost. Minimize cost.
Discipline. Maintain perspective and long-term discipline.
A single theme unites these principles: Focus on the things you can control.
We believe there is no wiser course for any investor.
Contents | |
Your Fund’s Total Returns. | 1 |
Chairman’s Letter. | 2 |
Advisor’s Report. | 7 |
Fund Profile. | 11 |
Performance Summary. | 13 |
Financial Statements. | 15 |
Your Fund’s After-Tax Returns. | 35 |
About Your Fund’s Expenses. | 36 |
Trustees Approve Advisory Arrangement. | 38 |
Glossary. | 39 |
Please note: The opinions expressed in this report are just that—informed opinions. They should not be considered promises or advice.
Also, please keep in mind that the information and opinions cover the period through the date on the front of this report. Of course, the risks of investing in your fund are spelled out in the prospectus.
See the Glossary for definitions of investment terms used in this report.
About the cover: Pictured is a sailing block on the Brilliant, a 1932 schooner docked in Mystic, Connecticut. A type of pulley, the sailing block helps coordinate the setting of the sails. At Vanguard, the intricate coordination of technology and people allows us to help millions of clients around the world reach their financial goals.
Your Fund’s Total Returns | |
Fiscal Year Ended November 30, 2015 | |
Total | |
Returns | |
Vanguard Wellington Fund | |
Investor Shares | 1.22% |
Admiral™ Shares | 1.31 |
Wellington Composite Index | 2.47 |
Mixed-Asset Target Allocation Growth Funds Average | -0.57 |
For a benchmark description, see the Glossary. | |
Mixed-Asset Target Allocation Growth Funds Average: Derived from data provided by Lipper, a Thomson Reuters Company. | |
Admiral Shares carry lower expenses and are available to investors who meet certain account-balance requirements. |
Your Fund’s Performance at a Glance | ||||
November 30, 2014, Through November 30, 2015 | ||||
Distributions Per Share | ||||
Starting | Ending | |||
Share | Share | Income | Capital | |
Price | Price | Dividends | Gains | |
Vanguard Wellington Fund | ||||
Investor Shares | $41.02 | $39.00 | $0.995 | $1.502 |
Admiral Shares | 70.85 | 67.36 | 1.776 | 2.594 |
1
Chairman’s Letter
Dear Shareholder,
For the fiscal year ended November 30, 2015, Vanguard Wellington Fund returned about 1%. The fund finished behind its benchmark, the Wellington Composite Index, but ahead of the average return of its peers.
Your fund is made up of two parts: an equity portfolio and a fixed income portfolio. The equity portfolio—which accounts for about 65% of assets—lagged its benchmark, the Standard & Poor’s 500 Index, for the period. Stocks in the information technology, financial, and health care sectors were the fund’s top contributors. Holdings in consumer discretionary hurt performance relative to the index.
The Wellington Fund’s fixed income portfolio, which accounts for about 35% of assets, outpaced its benchmark, the Barclays U.S. Credit A or Better Bond Index. As of November 30, the fund’s 30day SEC yield was 2.43% for Investor Shares and 2.52% for Admiral Shares, compared with 2.14% for Investor Shares and 2.22% for Admiral Shares a year earlier.
The broad U.S. stock market produced modest returns
U.S. stocks traveled a rocky route on their way to returns that approached 3% for the period. Most of the turmoil came in late summer; markets tumbled
2
in August and September amid fears about the ripple effects of China’s slowing economic growth.
Stocks recovered markedly in October and stood firm in November. Central banks in Europe and Asia discussed or enacted more stimulus measures to combat weak growth and low inflation.
International stocks returned about –6% as the dollar’s strength hurt results. Returns for emerging markets, which were especially affected by the concerns about China, trailed those of the developed markets of the Pacific region and Europe.
Bonds managed slight gains as investors waited for the Fed
Bond returns were muted over the fiscal year as markets digested the Federal Reserve’s latest statements about the timing of a potential rise in shortterm interest rates. (In midDecember, after the close of the reporting period, the Fed raised its target for shortterm rates to 0.25%–0.5%.) Investors seemed to alternately seek and shun safehaven assets, depending on stock market volatility at the time.
The broad U.S. taxable bond market returned 0.97%, with income providing the gain. The yield of the 10year Treasury note ended November at 2.22%, down from 2.25% a year earlier.
Market Barometer | |||
Average Annual Total Returns | |||
Periods Ended November 30, 2015 | |||
One | Three | Five | |
Year | Years | Years | |
Stocks | |||
Russell 1000 Index (Large-caps) | 2.53% | 16.10% | 14.32% |
Russell 2000 Index (Small-caps) | 3.51 | 14.92 | 12.02 |
Russell 3000 Index (Broad U.S. market) | 2.58 | 16.00 | 14.13 |
FTSE All-World ex US Index (International) | -6.43 | 3.85 | 3.41 |
Bonds | |||
Barclays U.S. Aggregate Bond Index (Broad taxable market) | 0.97% | 1.50% | 3.09% |
Barclays Municipal Bond Index (Broad tax-exempt market) | 3.10 | 2.49 | 4.79 |
Citigroup Three-Month U.S. Treasury Bill Index | 0.02 | 0.02 | 0.04 |
CPI | |||
Consumer Price Index | 0.50% | 1.02% | 1.64% |
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International bond markets (as measured by the Barclays Global Aggregate Index ex USD) returned –8.29%, hindered by the dollar’s strength against many foreign currencies. Without this currency effect, results were positive.
The Fed’s 0%–0.25% target for shortterm rates continued to limit returns for money market funds and savings accounts.
Consumer discretionary hindered the fund’s relative stock results
The broadly diversified Wellington Fund invests in about 100 stocks and 800 bonds across all market sectors. Combining stocks and bonds in a diversified portfolio can help reduce volatility and smooth the path to investors’ longterm financial goals.
For the most recent fiscal year, the fund’s stock portfolio returned 1.02%. Results among the ten market sectors were mixed, with half posting gains. Stocks of information technology, financial, and health care companies were top contributors to performance.
Technology gains were broadbased, with internet, IT services, and software companies adding most to performance. In financials, banks and insurance firms added the most to the fund’s result, while in health care, insurers and prescription drug distributors bolstered the fund’s return.
Hurt by a steep slide in oil prices, energy stocks weighed heaviest on results. The drop in commodity prices also hurt results in industrials and materials.
Expense Ratios | |||
Your Fund Compared With Its Peer Group | |||
Investor | Admiral | Peer Group | |
Shares | Shares | Average | |
Wellington Fund | 0.26% | 0.18% | 0.96% |
The fund expense ratios shown are from the prospectus dated March 25, 2015, and represent estimated costs for the current fiscal year. For the fiscal year ended November 30, 2015, the fund’s expense ratios were 0.26% for Investor Shares and 0.18% for Admiral Shares. The peer-group expense ratio is derived from data provided by Lipper, a Thomson Reuters Company, and captures information through year-end 2014.
Peer group: Mixed-Asset Target Allocation Growth Funds.
4
As I mentioned, the fund’s equity portfolio trailed the S&P 500 Index, which returned 2.75%. This underperformance can be attributed in large part to disappointing results in the consumer discretionary sector, where the fund’s return was considerably behind that of the benchmark.
Bond returns were modest. The fund’s fixed income portfolio—which is composed of investmentgrade corporate and U.S. government bonds—returned 1.53%, a step ahead of the 1.28% return of its benchmark. The fund’s outperformance was due mostly to its holdings in corporate bonds.
For more on the fund’s positioning during the fiscal year, please see the Advisor’s Report that follows this letter.
The fund’s record remained admirable over a volatile decade
For the decade ended November 30, 2015, Vanguard Wellington Fund posted an average annual return of 7.50% for Investor Shares, outpacing its composite index (+6.87%) and peergroup average (+5.16%).
This performance is especially commendable when you consider the extreme volatility the fund had to contend with during the tenyear period, which included the worst global recession since the Great Depression.
The fund’s admirable track record is a credit to the experience and talent of its advisor, Wellington Management Company, which has managed the fund
Total Returns | |
Ten Years Ended November 30, 2015 | |
Average | |
Annual Return | |
Wellington Fund Investor Shares | 7.51% |
Wellington Composite Index | 6.87 |
Mixed-Asset Target Allocation Growth Funds Average | 5.16 |
For a benchmark description, see the Glossary.
Mixed-Asset Target Allocation Growth Funds Average: Derived from data provided by Lipper, a Thomson Reuters Company.
The figures shown represent past performance, which is not a guarantee of future results. (Current performance may be lower or higher than the performance data cited. For performance data current to the most recent month-end, visit our website at vanguard.com/performance.) Note, too, that both investment returns and principal value can fluctuate widely, so an investor’s shares, when sold, could be worth more or less than their original cost.
5
since its inception in 1929. Wellington’s efforts over the years have been aided by the fund’s low costs, which allow investors to keep more of the return on their investment.
A dose of discipline is crucial when markets become volatile
The developments over the past few months remind us that nobody can control the direction of the markets or reliably predict where they’ll go in the short term. However, investors can control how they react to unstable and turbulent markets.
During periods of market adversity, it’s more important than ever to keep sight of one of Vanguard’s key principles: Maintain perspective and longterm discipline. Whether you’re investing for yourself or on behalf of clients, your success is affected greatly by how you respond—or don’t respond—during turbulent markets. (You can read Vanguard’s Principles for Investing Success at vanguard.com/research.)
As I’ve written in the past, the best course for longterm investors is generally to ignore daily market moves and not make decisions based on emotion. This is also a good time to evaluate your portfolio and make sure your asset allocation is aligned with your time horizon, goals, and risk tolerance.
The markets are unpredictable and often confounding. Keeping your longterm plans clearly in focus can help you weather these periodic storms.
As always, thank you for investing with Vanguard.
Sincerely,
F. William McNabb III
Chairman and Chief Executive Officer
December 17, 2015
6
Advisor’s Report
Vanguard Wellington Fund returned about 1% for the 12 months ended November 30, 2015. The fund outperformed the –0.57% average return of its peer group, MixedAsset Target Allocation Growth Funds, but underperformed the 2.47% return of its benchmark, the Wellington Composite Index. (The index is weighted 65% largecapitalization stocks as measured by the Standard & Poor’s 500 Index and 35% highquality corporate bonds as measured by the Barclays U.S. Credit A or Better Bond Index.)
Investment environment
Stock market returns were mixed in the United States and abroad for the fiscal year. The S&P 500 Index was up 2.75%, while both the MSCI World Index (–0.17%) and the MSCI EAFE Index (–2.94%) declined. Growth stocks generally outperformed value stocks, as measured by the Russell 1000 Growth and Russell 1000 Value Indexes. This was a challenge for the equity portfolio, as our investment strategy is aimed at identifying undervalued stocks.
Also, stock returns within the S&P 500 Index were narrow and largely driven by big names such as Amazon.com, Facebook, and Alphabet (formerly known as Google). Although we did own Alphabet during the period, these companies typically have belowmarket yields and therefore would not meet our criteria for the fund’s equity portion.
The U.S. fixed income market rose modestly, with the Barclays U.S. Aggregate Bond Index returning 0.97%.
The U.S. Treasury curve flattened as shortterm yields rose and longerterm yields remained relatively stable.
Investors grappled with a mixed global economic picture, accommodative monetary policies, and the risk that Greece might exit the euro zone. Greece took center stage over the summer after debt negotiations broke down and it defaulted on its payment to the International Monetary Fund, triggering a riskoff tone throughout the global financial markets.
Fears further escalated amid an unexpected devaluation in China’s currency and deepening concerns about China’s economic slowdown and the potential spillover effects. The Federal Reserve appeared on track to raise shortterm interest rates in the second half of 2015; in September, though, it left them unchanged, primarily citing unfavorable global developments, modestly tighter U.S. financial conditions, and low inflation. (In midDecember, soon after the close of the fund’s reporting period, the Fed did raise its target for those rates, to 0.25%–0.5%.)
Our successes
In the stock portfolio, security selection within information technology and financials contributed to relative returns. In IT, allocations to Accenture, Microsoft, and Alphabet drove relative returns, while in financials, strong performance from JPMorgan Chase and PNC Financial Services aided relative results. Not holding benchmark constituent Berkshire Hathaway also helped relative performance in the financial sector.
7
Accenture was the top relative contributor to the equity portfolio. It posted several strong quarters; its investments in growth are beginning to pay off and have helped the company gain market share. We continue to hold its stock, believing that Accenture is benefiting from a change in IT as many of its customers reorient their systems toward the “cloud.”
In our fixed income portfolio, selection within corporate bonds generated favorable results, particularly among financial institution and industrial issuers. Selection in taxable municipal bonds and an allocation to collateralized loan obligations also helped relative returns.
Our shortfalls
Our stock portfolio results were weakest in consumer discretionary and industrials. In consumer discretionary, TwentyFirst Century Fox detracted from relative performance amid weak U.S. broadcast ratings and broad industry concerns about the health of the pay TV market. Not owning Amazon.com and Home Depot also hurt relative results.
In industrials, our allocation to U.S.based CSX detracted. Transportation companies generally struggled during the period, and CSX’s stock was also hurt by coal industry difficulties and sluggish global growth. Although coal remains weak in the near term, we still hold CSX because we like its fundamentals and because it’s trading at an attractive valuation. We also believe that the rail sector could benefit when oil prices rise.
Although health care generally performed strongly in the index, one of the equity portfolio’s health care holdings, Merck, was the biggest relative detractor. We are confident that Merck’s strong pipeline of immunooncology, diabetes, and hepatitis C treatments will drive earnings growth, and the company remains one of our top equity positions.
Not owning strong benchmark performer Facebook also weighed on relative results.
The bond portfolio’s yield curve positioning detracted, as did an overweight allocation to communications industry issuers.
The fund’s positioning
Within the equity portfolio, our largest sector overweightings at the end of the period were in financials and health care, and our largest underweightings were in IT and consumer discretionary.
Financials were the largest absolute sector weighting at the end of the period. We believe that our equity holdings in this sector have already discounted the low interest rates and would benefit from a rise in rates. We continue to find opportunities in financials, particularly among banks and insurance companies, which have improved in quality in part because of increased regulation. We believe that financial companies, with less leverage and more solid underwriting than they have had historically, could better withstand a future recessionary environment.
Alphabet was our largest equity purchase as we initiated a position early in the period. We believed that the market
8
underestimated the company’s ability to sustain growth in search revenue and to exercise greater discipline in capital allocation. We also added several other holdings, including Praxair, PepsiCo, and ColgatePalmolive. Buying PepsiCo and ColgatePalmolive brought our relative positioning in consumer staples from an underweight to closer to neutral versus the benchmark.
We believe that Praxair, an industrial gases supplier, is a goodquality, wellmanaged company with an attractive industry structure, solid margins, and high returns on capital. Shares had lagged the market, and we bought it at what we believed to be an attractive entry point.
ColgatePalmolive is a global consumer packagedgoods company specializing in oral, personal, and household care and pet nutrition. We bought the stock because of the company’s strong franchise, its stable business, and a disciplined management team that is focused on controlling costs and improving operational efficiency. Given the recent market volatility, we believe it is important to focus on resilient companies and market leaders with embedded franchise value, so ColgatePalmolive was a great addition. It is a leader in the oralcare market, where it has a dominant market share and pricing power, thanks to customer loyalty and a high degree of brand recognition.
We eliminated several positions during the period, including BG Group, the Walt Disney Company, and Dow Chemical. The stock of BG Group, a U.K.based, natural gasfocused oil and gas exploration company, had outperformed on news of its proposed acquisition by Royal Dutch Shell, so we decided to take profits on the position.
Over the 12 months, the global macroeconomic environment saw slowing growth and more market volatility. We remain concerned about China’s slowdown and what it will mean more broadly for global financial markets and growth.
A sharp decline in oil prices, and heightened uncertainty about oil, was also major news over the past year. Oil companies are significantly cutting back spending, and we believe that the price of oil will bottom out in the next six months and could bounce back later in 2016. As a result, we have increased our energy sector exposure in the equity portfolio.
We continue to seek out investment ideas that fit with our process and philosophy. We remain focused on the significance of dividends, positive capital stewardship, and franchise value. We believe we have a solid portfolio of undervalued market leaders, stocks in industries with improving supply/ demand trends, and solid companies that are temporarily out of favor.
In fixed income, we expect rates to rise over the long term as the U.S. recovery lengthens and broadens, and we remain disposed to continue to reduce the portfolio’s interest rate sensitivity. We believe that the fund’s bond portion is positioned for continued growth in the U.S. economic cycle, and we expect a cyclical upturn in rates as the Fed adjusts its monetary policy stance.
9
Our outlook is not without uncertainty, however. External forces can greatly affect our capital markets. In particular, quantitative easing programs in Europe and Japan, tensions in Ukraine and the Middle East, rising credit concerns in the South American sovereign states, sovereign wealth funds’ sales of portions of their massive U.S. Treasury holdings to finance internal needs, and, most recently, the routs in commodities and Chinese equities represent risks we should not ignore.
The sharp decline in oil and other energy prices adds to uncertainty, as it will boost consumer spending but lower the inflation numbers that drive Fed decision makers. Even the act of raising interest rates can create concerns and higher volatility.
Greater clarity about banks’ new regulatory environment makes them less inclined to support trading activities in the fixed income markets in which we invest.
Companies such as Morgan Stanley, Credit Suisse, UBS, RBS, and Deutsche Bank have announced cutbacks, and we expect to see more of the same from other large market makers. This leads us toward holding more liquidity in fixed income, notably with Treasury bonds and agency mortgagebacked securities as our “allweather” liquidity buffer. This buffer should provide downside protection for shareholders if the economic cycle takes an unfavorable turn.
Edward P. Bousa, CFA, Senior Managing Director and Equity Portfolio Manager
John C. Keogh, Senior Managing Director and Fixed Income Portfolio Manager
Wellington Management Company LLP
December 18, 2015
10
Wellington Fund
Fund Profile
As of November 30, 2015
Share-Class Characteristics | ||
Investor | Admiral | |
Shares | Shares | |
Ticker Symbol | VWELX | VWENX |
Expense Ratio1 | 0.26% | 0.18% |
30-Day SEC Yield | 2.43% | 2.52% |
Equity and Portfolio Characteristics | |||
DJ | |||
U.S. | |||
Total | |||
Market | |||
S&P 500 | FA | ||
Fund | Index | Index | |
Number of Stocks | 93 | 506 | 3,965 |
Median Market Cap | $106.2B | $82.1B | $51.1B |
Price/Earnings Ratio | 18.1x | 20.8x | 22.5x |
Price/Book Ratio | 2.3x | 2.8x | 2.7x |
Return on Equity | 17.5% | 18.3% | 17.2% |
Earnings Growth | |||
Rate | 6.8% | 9.3% | 9.6% |
Dividend Yield | 2.7% | 2.1% | 2.0% |
Foreign Holdings | 6.5% | 0.0% | 0.0% |
Turnover Rate | 39% | — | — |
Short-Term Reserves | 1.6% | — | — |
Fixed Income Characteristics | |||
Barclays | Barclays | ||
Credit A | Aggregate | ||
or Better | Bond | ||
Fund | Index | Index | |
Number of Bonds | 827 | 3,333 | 9,634 |
Yield to Maturity | |||
(before expenses) | 2.8% | 2.8% | 2.5% |
Average Coupon | 3.6% | 3.7% | 3.2% |
Average Duration | 6.3 years | 6.6 years | 5.7 years |
Average Effective | |||
Maturity | 9.4 years | 9.4 years | 7.9 years |
Total Fund Volatility Measures | ||
DJ | ||
Wellington | U.S. Total | |
Composite | Market | |
Index | FA Index | |
R-Squared | 0.98 | 0.94 |
Beta | 0.99 | 0.65 |
These measures show the degree and timing of the fund’s fluctuations compared with the indexes over 36 months.
Ten Largest Stocks (% of equity portfolio) | ||
Wells Fargo & Co. | Diversified Banks | 3.9% |
Microsoft Corp. | Systems Software | 3.5 |
Merck & Co. Inc. | Pharmaceuticals | 2.8 |
JPMorgan Chase & Co. | Diversified Banks | 2.5 |
Comcast Corp. | Cable & Satellite | 2.5 |
Alphabet Inc. | Internet Software & | |
Services | 2.5 | |
Verizon Communications Integrated | ||
Inc. | Telecommunication | |
Services | 2.4 | |
Chevron Corp. | Integrated Oil & Gas | 2.4 |
Intel Corp. | Semiconductors | 2.3 |
ACE Ltd. | Property & Casualty | |
Insurance | 2.2 | |
Top Ten | 27.0% | |
Top Ten as % of Total Net Assets | 17.5% |
The holdings listed exclude any temporary cash investments and equity index products.
Fund Asset Allocation
1 The expense ratios shown are from the prospectus dated March 25, 2015, and represent estimated costs for the current fiscal year. For the fiscal year ended November 30, 2015, the expense ratios were 0.26% for Investor Shares and 0.18% for Admiral Shares.
11
Wellington Fund
Sector Diversification (% of equity exposure) | |||
DJ | |||
U.S. Total | |||
S&P 500 | Market | ||
Fund | Index | FA Index | |
Consumer | |||
Discretionary | 7.1% | 13.1% | 13.5% |
Consumer Staples | 9.3 | 9.6 | 8.4 |
Energy | 9.2 | 7.0 | 6.4 |
Financials | 23.3 | 16.6 | 18.4 |
Health Care | 17.5 | 14.6 | 14.3 |
Industrials | 11.7 | 10.1 | 10.7 |
Information | |||
Technology | 14.2 | 20.9 | 20.1 |
Materials | 1.8 | 2.9 | 3.2 |
Telecommunication | |||
Services | 2.4 | 2.3 | 2.1 |
Utilities | 3.5 | 2.9 | 2.9 |
Sector Diversification (% of fixed incomeportfolio) | |
Asset-Backed | 5.0% |
Commercial Mortgage-Backed | 0.5 |
Finance | 26.9 |
Foreign | 3.3 |
Government Mortgage-Backed | 2.6 |
Industrial | 34.4 |
Treasury/Agency | 16.4 |
Utilities | 5.6 |
Other | 5.3 |
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.
Distribution by Credit Quality (% of fixed income portfolio) | |
U.S. Government | 19.2% |
Aaa | 7.2 |
Aa | 13.0 |
A | 43.8 |
Baa | 16.7 |
C | 0.1 |
Credit-quality ratings are obtained from Barclays and are from Moody's, Fitch, and S&P. When ratings from all three agencies are used, the median rating is shown. When ratings from two of the agencies are used, the lower rating for each issue is shown. "Not Rated" is used to classify securities for which a rating is not available. Not rated securities include a fund's investment in Vanguard Market Liquidity Fund or Vanguard Municipal Cash Management Fund, each of which invests in high-quality money market instruments and may serve as a cash management vehicle for the Vanguard funds, trusts, and accounts. For more information about these ratings, see the Glossary entry for Credit Quality.
Equity Investment Focus
Fixed Income Investment Focus
12
Wellington Fund
Performance Summary
All of the returns in this report represent past performance, which is not a guarantee of future results that may be achieved by the fund. (Current performance may be lower or higher than the performance data cited. For performance data current to the most recent month-end, visit our website at vanguard.com/performance.) Note, too, that both investment returns and principal value can fluctuate widely, so an investor’s shares, when sold, could be worth more or less than their original cost. The returns shown do not reflect taxes that a shareholder would pay on fund distributions or on the sale of fund shares.
Cumulative Performance: November 30, 2005, Through November 30, 2015
Initial Investment of $10,000
Average Annual Total Returns | ||||
Periods Ended November 30, 2015 | ||||
Final Value | ||||
One | Five | Ten | of a $10,000 | |
Year | Years | Years | Investment | |
Wellington Fund Investor Shares | 1.22% | 10.28% | 7.51% | $20,623 |
Wellington Composite Index | 2.47 | 10.88 | 6.87 | 19,428 |
Mixed-Asset Target Allocation Growth | ||||
Funds Average | -0.57 | 8.06 | 5.16 | 16,537 |
Barclays U.S. Aggregate Bond Index | 0.97 | 3.09 | 4.65 | 15,750 |
Dow Jones U.S. Total Stock Market | ||||
Float Adjusted Index | 2.50 | 14.10 | 7.71 | 21,016 |
For a benchmark description, see the Glossary.
Mixed-Asset Target Allocation Growth Funds Average: Derived from data provided by Lipper, a Thomson Reuters Company.
Final Value | ||||
One | Five | Ten | of a $50,000 | |
Year | Years | Years | Investment | |
Wellington Fund Admiral Shares | 1.31% | 10.37% | 7.61% | $104,074 |
Wellington Composite Index | 2.47 | 10.88 | 6.87 | 97,141 |
Barclays U.S. Aggregate Bond Index | 0.97 | 3.09 | 4.65 | 78,752 |
Dow Jones U.S. Total Stock Market Float | ||||
Adjusted Index | 2.50 | 14.10 | 7.71 | 105,082 |
See Financial Highlights for dividend and capital gains information.
13
Wellington Fund
Fiscal-Year Total Returns (%): November 30, 2005, Through November 30, 2015
Wellington Fund Investor Shares |
Wellington Composite Index |
For a benchmark description, see the Glossary.
Average Annual Total Returns: Periods Ended September 30, 2015
This table presents returns through the latest calendar quarter—rather than through the end of the fiscal period.
Securities and Exchange Commission rules require that we provide this information.
Ten Years | ||||||
Inception Date | One Year | Five Years | Income | Capital | Total | |
Investor Shares | 7/1/1929 | -0.81% | 9.33% | 3.14% | 3.84% | 6.98% |
Admiral Shares | 5/14/2001 | -0.71 | 9.43 | 3.24 | 3.84 | 7.08 |
14
Wellington Fund
Financial Statements
Statement of Net Assets—Investments Summary
As of November 30, 2015
This Statement summarizes the fund’s holdings by asset type. Details are reported for each of the fund’s 50 largest individual holdings and for investments that, in total for any issuer, represent more than 1% of the fund’s net assets. The total value of smaller holdings is reported as a single amount within each category.
The fund reports a complete list of its holdings in regulatory filings four times in each fiscal year, at the quarter-ends. For the second and fourth fiscal quarters, the complete listing of the fund’s holdings is available electronically on vanguard.com and on the Securities and Exchange Commission’s website (sec.gov), or you can have it mailed to you without charge by calling 800-662-7447. For the first and third fiscal quarters, the fund files the lists with the SEC on Form N-Q. Shareholders can look up the fund’s Forms N-Q on the SEC’s website. Forms N-Q may also be reviewed and copied at the SEC’s Public Reference Room (see the back cover of this report for further information).
Market | Percentage | ||
Value• | of Net | ||
Shares | ($000) | Assets | |
Common Stocks | |||
Consumer Discretionary | |||
Comcast Corp. Class A | 23,862,156 | 1,452,251 | 1.6% |
Ford Motor Co. | 49,875,770 | 714,720 | 0.8% |
Twenty-First Century Fox Inc. Class A | 22,697,741 | 669,810 | 0.8% |
Lowe’s Cos. Inc. | 7,410,620 | 567,654 | 0.6% |
Consumer Discretionary—Other † | 673,534 | 0.8% | |
4,077,969 | 4.6% | ||
Consumer Staples | |||
CVS Health Corp. | 12,042,860 | 1,133,113 | 1.3% |
Coca-Cola Co. | 15,544,750 | 662,517 | 0.7% |
Philip Morris International Inc. | 6,964,240 | 608,605 | 0.7% |
PepsiCo Inc. | 5,523,590 | 553,243 | 0.6% |
Mondelez International Inc. Class A | 11,821,490 | 516,126 | 0.6% |
Diageo plc | 17,871,438 | 512,581 | 0.6% |
Colgate-Palmolive Co. | 7,793,190 | 511,857 | 0.6% |
Consumer Staples—Other † | 835,510 | 0.9% | |
5,333,552 | 6.0% | ||
Energy | |||
Chevron Corp. | 15,203,500 | 1,388,384 | 1.6% |
Exxon Mobil Corp. | 13,635,254 | 1,113,455 | 1.3% |
Anadarko Petroleum Corp. | 9,024,800 | 540,586 | 0.6% |
TOTAL SA | 10,879,083 | 538,719 | 0.6% |
Energy—Other † | 1,727,980 | 1.9% | |
5,309,124 | 6.0% | ||
Financials | |||
Wells Fargo & Co. | 40,665,497 | 2,240,669 | 2.5% |
JPMorgan Chase & Co. | 21,826,696 | 1,455,404 | 1.7% |
ACE Ltd. | 10,963,040 | 1,259,105 | 1.4% |
15
Wellington Fund | |||
Market | Percentage | ||
Value• | of Net | ||
Shares | ($000) | Assets | |
Prudential Financial Inc. | 12,710,780 | 1,100,118 | 1.2% |
PNC Financial Services Group Inc. | 9,751,100 | 931,328 | 1.1% |
BlackRock Inc. | 2,532,620 | 921,165 | 1.0% |
Bank of America Corp. | 40,465,620 | 705,316 | 0.8% |
Citigroup Inc. | 12,779,990 | 691,270 | 0.8% |
MetLife Inc. | 10,670,434 | 545,152 | 0.6% |
Financials—Other † | 3,600,038 | 4.1% | |
13,449,565 | 15.2% | ||
Health Care | |||
Merck & Co. Inc. | 30,137,482 | 1,597,588 | 1.8% |
Bristol-Myers Squibb Co. | 16,746,125 | 1,122,158 | 1.3% |
Johnson & Johnson | 9,652,316 | 977,201 | 1.1% |
AstraZeneca plc ADR | 28,447,756 | 968,646 | 1.1% |
Medtronic plc | 12,013,790 | 905,119 | 1.0% |
Pfizer Inc. | 25,588,990 | 838,551 | 0.9% |
Cardinal Health Inc. | 8,137,940 | 706,780 | 0.8% |
Eli Lilly & Co. | 8,387,070 | 688,075 | 0.8% |
UnitedHealth Group Inc. | 5,600,090 | 631,186 | 0.7% |
Health Care—Other † | 1,668,016 | 1.9% | |
10,103,320 | 11.4% | ||
Industrials | |||
United Parcel Service Inc. Class B | 9,703,433 | 999,551 | 1.1% |
Honeywell International Inc. | 7,596,510 | 789,657 | 0.9% |
General Electric Co. | 21,229,232 | 635,603 | 0.7% |
Lockheed Martin Corp. | 2,814,020 | 616,721 | 0.7% |
CSX Corp. | 18,894,760 | 537,178 | 0.6% |
Industrials—Other † | 3,174,117 | 3.6% | |
6,752,827 | 7.6% | ||
Information Technology | |||
Microsoft Corp. | 37,352,190 | 2,030,092 | 2.3% |
* Alphabet Inc. Class A | 1,855,072 | 1,415,142 | 1.6% |
Intel Corp. | 38,611,600 | 1,342,525 | 1.5% |
Cisco Systems Inc. | 36,734,120 | 1,001,005 | 1.1% |
Apple Inc. | 7,994,315 | 945,728 | 1.1% |
Accenture plc Class A | 7,698,340 | 825,416 | 0.9% |
Information Technology—Other † | 643,861 | 0.7% | |
8,203,769 | 9.2% | ||
Materials † | 1,008,011 | 1.1% | |
Telecommunication Services | |||
Verizon Communications Inc. | 30,630,890 | 1,392,174 | 1.6% |
Utilities | |||
NextEra Energy Inc. | 7,684,950 | 767,419 | 0.8% |
Dominion Resources Inc. | 9,520,100 | 641,369 | 0.7% |
Utilities—Other † | 591,710 | 0.7% | |
2,000,498 | 2.2% | ||
Total Common Stocks (Cost $40,670,151) | 57,630,809 | 64.9% |
16
Wellington Fund | ||||||
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 | 1.750% | 9/30/19 | 950,000 | 960,393 | 1.1% | |
United States Treasury | ||||||
Note/Bond | 1.375% | 9/30/18 | 953,900 | 958,965 | 1.1% | |
United States Treasury | ||||||
Note/Bond | 2.875% | 5/15/43 | 519,777 | 508,976 | 0.6% | |
1 | United States Treasury | |||||
Note/Bond | 0.500%–3.625% | 6/30/16–2/15/45 | 2,446,425 | 2,450,707 | 2.7% | |
4,879,041 | 5.5% | |||||
Conventional Mortgage-Backed Securities † | 779,904 | 0.9% | ||||
Nonconventional Mortgage-Backed Securities † | 154,752 | 0.1% | ||||
Total U.S. Government and Agency Obligations (Cost $5,701,357) | 5,813,697 | 6.5% | ||||
Asset-Backed/Commercial Mortgage-Backed Securities | ||||||
2 | Banc of America Commercial | |||||
Mortgage Trust 2006-2 | 5.997% | 5/10/45 | 8,623 | 8,682 | 0.0% | |
2 | Banc of America Commercial | |||||
Mortgage Trust 2006-5 | 5.414% | 9/10/47 | 16,919 | 17,158 | 0.0% | |
2 | Bear Stearns Commercial | |||||
Mortgage Securities | ||||||
Trust 2006-PWR13 | 5.540% | 9/11/41 | 19,512 | 19,869 | 0.0% | |
2 | Merrill Lynch Mortgage | |||||
Trust 2006-C1 | 5.862% | 5/12/39 | 25,162 | 25,313 | 0.1% | |
3 | Asset-Backed/Commercial | |||||
Mortgage-Backed Securities—Other † | 1,425,273 | 1.6% | ||||
Total Asset-Backed/Commercial Mortgage-Backed Securities (Cost $1,507,581) | 1,496,295 | 1.7% | ||||
Corporate Bonds | ||||||
Finance | ||||||
Banking | ||||||
Bank of America Corp. | 3.300%–6.875% | 5/16/16–4/1/44 | 423,523 | 450,881 | 0.5% | |
Bank of America NA | 5.300%–6.000% | 3/15/17–10/15/36 | 98,000 | 107,385 | 0.1% | |
Bear Stearns Cos. LLC | 6.400%–7.250% | 10/2/17–2/1/18 | 25,150 | 27,759 | 0.0% | |
Citigroup Inc. | 1.750%–8.125% | 11/21/17–5/6/44 | 403,675 | 428,483 | 0.5% | |
JPMorgan Chase & Co. | 3.250%–6.300% | 1/15/18–6/1/45 | 496,021 | 538,196 | 0.6% | |
National City Corp. | 6.875% | 5/15/19 | 13,950 | 15,877 | 0.0% | |
PNC Bank NA | 3.300%–4.875% | 9/21/17–11/1/25 | 84,845 | 88,642 | 0.1% | |
PNC Financial Services | ||||||
Group Inc. | 3.900% | 4/29/24 | 41,565 | 42,422 | 0.1% | |
Wells Fargo & Co. | 2.150%–5.625% | 12/15/16–11/17/45 | 532,702 | 549,813 | 0.6% | |
3 | Banking—Other † | 3,795,606 | 4.3% | |||
Brokerage † | 12,961 | 0.0% | ||||
Finance Companies | ||||||
3 | GE Capital International | |||||
Funding Corp. | 2.342%–3.373% | 11/15/20–11/15/25 | 201,251 | 202,156 | 0.2% |
17
Wellington Fund | |||||
Face | Market | Percentage | |||
Maturity | Amount | Value• | of Net | ||
Coupon | Date | ($000) | ($000) | Assets | |
3 General Electric | |||||
Capital Corp. | 3.100%–6.875% | 1/7/21–1/10/39 | 281,853 | 304,161 | 0.4% |
Insurance | |||||
ACE Capital Trust II | 9.700% | 4/1/30 | 20,000 | 29,250 | 0.1% |
ACE INA Holdings Inc. | 2.300%–5.800% | 3/15/18–11/3/45 | 113,705 | 117,588 | 0.1% |
3 Five Corners Funding Trust | 4.419% | 11/15/23 | 5,935 | 6,242 | 0.0% |
Prudential Financial Inc. | 2.300%–4.500% | 5/12/16–11/15/20 | 64,910 | 67,971 | 0.1% |
3 Insurance—Other † | 1,076,623 | 1.2% | |||
3 Other Finance † | 24,416 | 0.0% | |||
3 Real Estate Investment Trusts † | 125,742 | 0.1% | |||
8,012,174 | 9.0% | ||||
Industrial | |||||
Basic Industry † | 244,470 | 0.3% | |||
Capital Goods | |||||
General Electric Co. | 2.700%–5.250% | 12/6/17–3/11/44 | 93,170 | 95,443 | 0.1% |
3 Capital Goods—Other † | 784,918 | 0.9% | |||
Communication | |||||
Comcast Corp. | 2.850%–6.500% | 1/15/23–8/15/45 | 264,400 | 273,290 | 0.3% |
3 NBCUniversal | |||||
Enterprise Inc. | 1.662%–1.974% | 4/15/18–4/15/19 | 176,250 | 176,760 | 0.2% |
NBCUniversal Media LLC | 4.375% | 4/1/21 | 23,900 | 26,145 | 0.0% |
Verizon | |||||
Communications Inc. | 3.450%–6.900% | 9/15/20–8/21/46 | 402,552 | 440,055 | 0.5% |
3 Communication—Other † | 938,389 | 1.1% | |||
Consumer Cyclical | |||||
CVS Health Corp. | 2.750%–5.750% | 6/1/17–7/20/45 | 152,776 | 157,657 | 0.2% |
3 Consumer Cyclical—Other † | 1,342,715 | 1.5% | |||
Consumer Noncyclical | |||||
AstraZeneca plc | 1.950%–6.450% | 9/18/19–11/16/45 | 110,170 | 116,694 | 0.1% |
Bristol-Myers Squibb Co. | 3.250% | 11/1/23 | 40,790 | 42,369 | 0.1% |
Johnson & Johnson | 5.150% | 7/15/18 | 14,800 | 16,268 | 0.0% |
Medtronic Inc. | 1.375%–4.375% | 4/1/18–3/15/35 | 202,565 | 205,548 | 0.2% |
Merck & Co. Inc. | 2.350%–6.550% | 2/10/22–5/18/43 | 164,715 | 166,224 | 0.2% |
Pfizer Inc. | 3.000% | 6/15/23 | 47,025 | 47,236 | 0.1% |
Wyeth LLC | 5.950% | 4/1/37 | 25,000 | 29,828 | 0.0% |
Zeneca Wilmington Inc. | 7.000% | 11/15/23 | 29,000 | 36,396 | 0.0% |
3 Consumer Noncyclical—Other † | 2,638,459 | 3.0% | |||
Energy | |||||
Chevron Corp. | 3.191% | 6/24/23 | 49,470 | 50,396 | 0.1% |
3 Energy—Other † | 1,311,467 | 1.4% | |||
3 Other Industrial † | 62,869 | 0.1% | |||
Technology | |||||
Apple Inc. | 2.850%–4.450% | 5/6/21–5/6/44 | 106,025 | 107,339 | 0.1% |
Cisco Systems Inc. | 2.900%–4.450% | 1/15/20–3/4/21 | 37,445 | 40,165 | 0.0% |
Microsoft Corp. | 2.375%–4.450% | 2/12/22–11/3/45 | 139,525 | 138,475 | 0.2% |
Technology—Other † | 332,347 | 0.4% | |||
Transportation | |||||
United Parcel Service Inc. | 2.450%–4.875% | 10/1/22–11/15/40 | 32,765 | 34,451 | 0.0% |
3 Transportation—Other † | 389,708 | 0.5% | |||
10,246,081 | 11.6% |
18
Wellington Fund | |||||
Face | Market | Percentage | |||
Maturity | Amount | Value• | of Net | ||
Coupon | Date | ($000) | ($000) | Assets | |
Utilities | |||||
Electric | |||||
Florida Power & Light Co. 4.950%–5.950% | 2/1/35–2/1/38 | 104,215 | 125,521 | 0.1% | |
Electric—Other † | 1,469,504 | 1.7% | |||
Natural Gas † | 37,318 | 0.0% | |||
Other Utility † | 38,812 | 0.1% | |||
1,671,155 | 1.9% | ||||
Total Corporate Bonds (Cost $19,108,553) | 19,929,410 | 22.5% | |||
3Sovereign Bonds (U.S. Dollar-Denominated) (Cost $965,751) † | 993,606 | 1.1% | |||
Taxable Municipal Bonds (Cost $1,384,089) † | 1,578,367 | 1.8% | |||
Temporary Cash Investments | |||||
Repurchase Agreements (0.2%) | |||||
Bank of America Securities, LLC | |||||
(Dated 11/30/15, Repurchase | |||||
Value $18,200,000 collateralized | |||||
by U.S. Treasury Note 2.750%, | |||||
2/15/24, with a value of | |||||
$18,564,000) | 0.110% | 12/1/15 | 18,200 | 18,200 | 0.0% |
Citigroup Global Markets Inc. | |||||
(Dated 11/30/15, Repurchase | |||||
Value $100,000 collateralized | |||||
by U.S. Treasury Note 1.000%, | |||||
12/15/17, with a value of | |||||
$102,000) | 0.110% | 12/1/15 | 100 | 100 | 0.0% |
HSBC Bank USA (Dated 11/30/15, | |||||
Repurchase Value $38,400,000 | |||||
collateralized by Federal National | |||||
Mortgage Assn. 2.500%, 1/1/28, | |||||
with a value of $39,170,000) | 0.090% | 12/1/15 | 38,400 | 38,400 | 0.1% |
RBC Capital Markets LLC | |||||
(Dated 11/30/15, Repurchase | |||||
Value $27,300,000 collateralized | |||||
by Federal Home Loan Mortgage | |||||
Corp. 2.388%–2.488%, 3/1/40– | |||||
6/1/42, Federal National Mortgage | |||||
Assn. 2.213%–4.500%, 5/1/26– | |||||
11/1/45, Government National | |||||
Mortgage Assn. 3.500%–4.000%, | |||||
10/15/40–9/20/45, with a value | |||||
of $27,846,000) | 0.090% | 12/1/15 | 27,300 | 27,300 | 0.0% |
TD Securities (USA) LLC (Dated | |||||
11/30/15, Repurchase Value | |||||
$52,000,000 collateralized | |||||
by Federal Home Loan Bank, | |||||
0.000%, 1/22/16, U.S. Treasury | |||||
Bill 0.000%, 3/31/16, with a | |||||
value of $53,040,000) | 0.100% | 12/1/15 | 52,000 | 52,000 | 0.1% |
136,000 | 0.2% |
19
Wellington Fund | ||
Market | Percentage | |
Value• | of Net | |
($000) | Assets | |
U.S. Government and Agency Obligations † | 444,846 | 0.5% |
Total Temporary Cash Investments (Cost $580,867) | 580,846 | 0.7% |
Total Investments (Cost $69,918,349) | 88,023,030 | 99.2% |
Amount | ||
($000) | ||
Other Assets and Liabilities | ||
Other Assets | ||
Investment in Vanguard | 7,757 | |
Receivables for Investment Securities Sold | 743,811 | |
Receivables for Accrued Income | 428,122 | |
Receivables for Capital Shares Issued | 86,736 | |
Other Assets4 | 16,715 | |
Total Other Assets | 1,283,141 | 1.4% |
Liabilities | ||
Payables for Investment Securities Purchased | (359,870) | |
Payables to Investment Advisor | (15,104) | |
Payables for Capital Shares Redeemed | (76,922) | |
Payables to Vanguard | (107,564) | |
Other Liabilities | (2,316) | |
Total Liabilities | (561,776) | (0.6%) |
Net Assets | 88,744,395 | 100.0% |
20
Wellington Fund | |
At November 30, 2015, net assets consisted of: | |
Amount | |
($000) | |
Paid-in Capital | 67,193,414 |
Undistributed Net Investment Income | 394,063 |
Accumulated Net Realized Gains | 3,055,515 |
Unrealized Appreciation (Depreciation) | |
Investment Securities | 18,104,681 |
Futures Contracts | (1,606) |
Swap Contracts | (118) |
Foreign Currencies | (1,554) |
Net Assets | 88,744,395 |
Investor Shares—Net Assets | |
Applicable to 509,031,680 outstanding $.001 par value shares of | |
beneficial interest (unlimited authorization) | 19,850,332 |
Net Asset Value Per Share—Investor Shares | $39.00 |
Admiral Shares—Net Assets | |
Applicable to 1,022,831,436 outstanding $.001 par value shares of | |
beneficial interest (unlimited authorization) | 68,894,063 |
Net Asset Value Per Share—Admiral Shares | $67.36 |
• See Note A in Notes to Financial Statements.
* Non-income-producing security.
† Represents the aggregate value, by category, of securities that are not among the 50 largest holdings and, in total for any issuer, represent 1% or less of net assets.
1 Securities with a value of $715,000 have been segregated as collateral for open over-the-counter swap 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 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 November 30, 2015, the aggregate value of these securities was $4,499,078,000, representing 5.1% of net assets.
4 Cash of $16,076,000 has been segregated as initial margin for open futures contracts.
ADR—American Depositary Receipt.
See accompanying Notes, which are an integral part of the Financial Statements.
21
Wellington Fund | |
Statement of Operations | |
Year Ended | |
November 30, 2015 | |
($000) | |
Investment Income | |
Income | |
Dividends1 | 1,488,416 |
Interest | 1,012,886 |
Securities Lending | 4,779 |
Total Income | 2,506,081 |
Expenses | |
Investment Advisory Fees—Note B | |
Basic Fee | 68,915 |
Performance Adjustment | (4,276) |
The Vanguard Group—Note C | |
Management and Administrative—Investor Shares | 36,170 |
Management and Administrative—Admiral Shares | 62,574 |
Marketing and Distribution—Investor Shares | 3,827 |
Marketing and Distribution—Admiral Shares | 6,755 |
Custodian Fees | 740 |
Auditing Fees | 38 |
Shareholders’ Reports—Investor Shares | 247 |
Shareholders’ Reports—Admiral Shares | 238 |
Trustees’ Fees and Expenses | 138 |
Total Expenses | 175,366 |
Net Investment Income | 2,330,715 |
Realized Net Gain (Loss) | |
Investment Securities Sold | 3,575,388 |
Futures Contracts | (58,159) |
Swap Contracts | (72) |
Foreign Currencies | (244) |
Realized Net Gain (Loss) | 3,516,913 |
Change in Unrealized Appreciation (Depreciation) | |
Investment Securities | (4,745,371) |
Futures Contracts | 5,641 |
Swap Contracts | (3) |
Foreign Currencies | (625) |
Change in Unrealized Appreciation (Depreciation) | (4,740,358) |
Net Increase (Decrease) in Net Assets Resulting from Operations | 1,107,270 |
1 Dividends are net of foreign withholding taxes of $13,352,000. | |
See accompanying Notes, which are an integral part of the Financial Statements. |
22
Wellington Fund | ||
Statement of Changes in Net Assets | ||
Year Ended November 30, | ||
2015 | 2014 | |
($000) | ($000) | |
Increase (Decrease) in Net Assets | ||
Operations | ||
Net Investment Income | 2,330,715 | 2,188,919 |
Realized Net Gain (Loss) | 3,516,913 | 3,454,706 |
Change in Unrealized Appreciation (Depreciation) | (4,740,358) | 3,770,110 |
Net Increase (Decrease) in Net Assets Resulting from Operations | 1,107,270 | 9,413,735 |
Distributions | ||
Net Investment Income | ||
Investor Shares | (560,193) | (664,243) |
Admiral Shares | (1,735,474) | (1,461,171) |
Realized Capital Gain1 | ||
Investor Shares | (866,392) | (1,052,242) |
Admiral Shares | (2,408,864) | (2,061,295) |
Total Distributions | (5,570,923) | (5,238,951) |
Capital Share Transactions | ||
Investor Shares | (4,165,177) | (3,005,879) |
Admiral Shares | 7,828,568 | 9,086,141 |
Net Increase (Decrease) from Capital Share Transactions | 3,663,391 | 6,080,262 |
Total Increase (Decrease) | (800,262) | 10,255,046 |
Net Assets | ||
Beginning of Period | 89,544,657 | 79,289,611 |
End of Period2 | 88,744,395 | 89,544,657 |
1 Includes fiscal 2015 and 2014 short-term gain distributions totaling $438,300,000 and $463,589,000 respectively. Short-term gain distributions are treated as ordinary income dividends for tax purposes.
2 Net Assets—End of Period includes undistributed (overdistributed) net investment income of $394,063,000 and $359,331,000.
See accompanying Notes, which are an integral part of the Financial Statements.
23
Wellington Fund | |||||
Financial Highlights | |||||
Investor Shares | |||||
For a Share Outstanding | Year Ended November 30, | ||||
Throughout Each Period | 2015 | 2014 | 2013 | 2012 | 2011 |
Net Asset Value, Beginning of Period | $41.02 | $39.17 | $34.29 | $31.08 | $29.94 |
Investment Operations | |||||
Net Investment Income | 1.004 | 1.000 | .955 | .959 | .929 |
Net Realized and Unrealized Gain (Loss) | |||||
on Investments | (. 527) | 3.370 | 5.324 | 3.201 | 1.115 |
Total from Investment Operations | .477 | 4.370 | 6.279 | 4.160 | 2.044 |
Distributions | |||||
Dividends from Net Investment Income | (.995) | (.982) | (. 958) | (. 950) | (. 904) |
Distributions from Realized Capital Gains | (1.502) | (1.538) | (.441) | — | — |
Total Distributions | (2.497) | (2.520) | (1.399) | (.950) | (.904) |
Net Asset Value, End of Period | $39.00 | $41.02 | $39.17 | $34.29 | $31.08 |
Total Return1 | 1.22% | 11.72% | 18.85% | 13.56% | 6.85% |
Ratios/Supplemental Data | |||||
Net Assets, End of Period (Millions) | $19,850 | $25,199 | $26,978 | $26,716 | $25,743 |
Ratio of Total Expenses to Average Net Assets2 | 0.26% | 0.26% | 0.26% | 0.25% | 0.27% |
Ratio of Net Investment Income to | |||||
Average Net Assets | 2.55% | 2.54% | 2.61% | 2.91% | 2.95% |
Portfolio Turnover Rate | 39%3 | 71%3 | 35%3 | 31%3 | 38%3 |
1 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.
2 Includes performance-based investment advisory fee increases (decreases) of 0.00%, 0.00%, 0.00%, (0.02%), and 0.00%.
3 Includes 10%, 14%, 5%, 15%, and 9% attributable to mortgage-dollar-roll activity.
See accompanying Notes, which are an integral part of the Financial Statements.
24
Wellington Fund | |||||
Financial Highlights | |||||
Admiral Shares | |||||
For a Share Outstanding | Year Ended November 30, | ||||
Throughout Each Period | 2015 | 2014 | 2013 | 2012 | 2011 |
Net Asset Value, Beginning of Period | $70.85 | $67.65 | $59.24 | $53.68 | $51.71 |
Investment Operations | |||||
Net Investment Income | 1.790 | 1.781 | 1.700 | 1.703 | 1.645 |
Net Realized and Unrealized Gain (Loss) | |||||
on Investments | (. 910) | 5.825 | 9.175 | 5.544 | 1.930 |
Total from Investment Operations | .880 | 7.606 | 10.875 | 7.247 | 3.575 |
Distributions | |||||
Dividends from Net Investment Income | (1.776) | (1.750) | (1.703) | (1.687) | (1.605) |
Distributions from Realized Capital Gains | (2.594) | (2.656) | (.762) | — | — |
Total Distributions | (4.370) | (4.406) | (2.465) | (1.687) | (1.605) |
Net Asset Value, End of Period | $67.36 | $70.85 | $67.65 | $59.24 | $53.68 |
Total Return1 | 1.31% | 11.82% | 18.91% | 13.69% | 6.94% |
Ratios/Supplemental Data | |||||
Net Assets, End of Period (Millions) | $68,894 | $64,341 | $52,311 | $37,649 | $29,048 |
Ratio of Total Expenses to Average Net Assets2 | 0.18% | 0.18% | 0.18% | 0.17% | 0.19% |
Ratio of Net Investment Income to | |||||
Average Net Assets | 2.63% | 2.62% | 2.69% | 2.99% | 3.03% |
Portfolio Turnover Rate | 39%3 | 71%3 | 35%3 | 31%3 | 38%3 |
1 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.
2 Includes performance-based investment advisory fee increases (decreases) of 0.00%, 0.00%, 0.00%, (0.02%), and 0.00%.
3 Includes 10%, 14%, 5%, 15%, and 9% attributable to mortgage-dollar-roll activity.
See accompanying Notes, which are an integral part of the Financial Statements.
25
Wellington Fund
Notes to Financial Statements
Vanguard Wellington 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. Investor Shares are available to any investor who meets the fund’s minimum purchase requirements. Admiral Shares are designed for investors who meet certain administrative, service, and account-size criteria.
A. The following significant accounting policies conform to generally accepted accounting principles for U.S. 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 acquired over 60 days to maturity, are valued using the latest bid prices or using valuations based on a matrix system (which considers such factors as security prices, yields, maturities, and ratings), both as furnished by independent pricing services. 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. Other temporary cash investments are valued at amortized cost, which approximates market value. Securities for which market quotations are not readily available, or whose values have been 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
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Wellington Fund
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 brokers and clearing-house, 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.
Futures contracts are valued at their quoted daily settlement prices. The aggregate settlement values 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 year ended November 30, 2015, the fund’s average investments in long and short futures contracts represented 1% and 2% of net assets, respectively, based on the average of aggregate settlement values at each quarter-end during the period.
4. 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
27
Wellington Fund
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 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.
During the year ended November 30, 2015, the fund’s average amounts of investments in credit protection sold and credit protection purchased represented 0% and less than 1% of net assets, based on the average of notional amounts at each quarter-end during the period.
5. 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. 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.
At November 30, 2015, counterparties had deposited in segregated accounts cash with a value of $320,000 in connection with TBA transactions.
6. 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
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Wellington Fund
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 (Other Assets) or Payables for Investment Securities Purchased (Liabilities) in the Statement of Net Assets.
7. Repurchase Agreements: The fund enters into repurchase agreements with institutional counter-parties. Securities pledged as collateral to the fund under repurchase agreements are held by a custodian bank until the agreements mature. 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 counter-party’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.
8. 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 (November 30, 2012–2015), and has concluded that no provision for federal income tax is required in the fund’s financial statements.
9. Distributions: Distributions to shareholders are recorded on the ex-dividend date.
10. Securities Lending: To earn additional income, the fund lends its securities to qualified institutional borrowers. Security loans 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 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 counter-parties, 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 counter-party risk, in the absence 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.
11. Credit Facility: The fund and certain other funds managed by The Vanguard Group (“Vanguard”) participate in a $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
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Wellington Fund
are charged administrative fees and an annual commitment fee of 0.06% 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 equal to the higher of the federal funds rate or LIBOR reference rate plus an agreed-upon spread.
The fund had no borrowings outstanding at November 30, 2015, or at any time during the period then ended.
12. Other: Dividend income is recorded on the ex-dividend date. Interest income is accrued daily. Premiums and discounts on debt securities purchased are amortized and accreted, respectively, to interest income over the lives of the respective securities. Security transactions are accounted for on the date securities are bought or sold. Costs used to determine realized gains (losses) on the sale of investment securities are those of the specific securities sold.
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 relative to the combined index comprising the S&P 500 Index and the Barclays U.S. Credit A or Better Bond Index for the preceding three years. For the year ended November 30, 2015, the investment advisory fee represented an effective annual basic rate of 0.08% of the fund’s average net assets before a decrease of $4,276,000 (0.00%) 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.
Upon the request of Vanguard, the fund may invest up to 0.40% of its net assets as capital in Vanguard. At November 30, 2015, the fund had contributed to Vanguard capital in the amount of $7,757,000, representing 0.01% of the fund’s net assets and 3.10% of Vanguard’s capitalization. The fund’s trustees and officers are also directors and employees, respectively, of Vanguard.
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.
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Wellington Fund
Level 1—Quoted prices in active markets for identical securities.
Level 2—Other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.).
Level 3—Significant unobservable inputs (including the fund’s own assumptions used to determine the fair value of investments).
The following table summarizes the market value of the fund’s investments as of November 30, 2015, based on the inputs used to value them:
Level 1 | Level 2 | Level 3 | |
Investments | ($000) | ($000) | ($000) |
U.S. Government and Agency Obligations | — | 5,813,697 | — |
Asset-Backed/Commercial Mortgage-Backed Securities | — | 1,496,295 | — |
Corporate Bonds | — | 19,929,410 | — |
Sovereign Bonds | — | 993,606 | — |
Taxable Municipal Bonds | — | 1,578,367 | — |
Common Stocks | 54,047,321 | 3,583,488 | — |
Temporary Cash Investments | — | 580,846 | — |
Futures Contracts—Assets1 | 636 | — | — |
Futures Contracts—Liabilities1 | (230) | — | — |
Swap Contracts—Liabilities | — | (118) | — |
Total | 54,047,727 | 33,975,591 | — |
1 Represents variation margin on the last day of the reporting period. |
E. At November 30, 2015, the fair values of derivatives were reflected in the Statement of Net Assets as follows:
Interest Rate | Credit | ||
Contracts | Contracts | Total | |
Statement of Net Assets Caption | ($000) | ($000) | ($000) |
Other Assets | 636 | — | 636 |
Other Liabilities | (230) | (118) | (348) |
Realized net gain (loss) and the change in unrealized appreciation (depreciation) on derivatives for the year ended November 30, 2015, were:
Interest Rate | Credit | ||
Contracts | Contracts | Total | |
Realized Net Gain (Loss) on Derivatives | ($000) | ($000) | ($000) |
Futures Contracts | (58,159) | — | (58,159) |
Swap Contracts | — | (72) | (72) |
Realized Net Gain (Loss) on Derivatives | (58,159) | (72) | (58,231) |
Change in Unrealized Appreciation (Depreciation) on Derivatives | |||
Futures Contracts | 5,641 | — | 5,641 |
Swap Contracts | — | (3) | (3) |
Change in Unrealized Appreciation (Depreciation) on Derivatives | 5,641 | (3) | 5,638 |
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Wellington Fund
At November 30, 2015, the aggregate settlement value of open futures contracts and the related unrealized appreciation (depreciation) were:
($000) | ||||
Aggregate | ||||
Number of | Settlement | Unrealized | ||
Long (Short) | Value | Appreciation | ||
Futures Contracts | Expiration | Contracts | Long (Short) | (Depreciation) |
10-Year U.S. Treasury Note | March 2016 | (7,440) | (940,695) | (1,259) |
5-Year U.S. Treasury Note | March 2016 | (3,655) | (433,774) | 107 |
Ultra Long U.S. Treasury Bond | March 2016 | (669) | (105,995) | (454) |
(1,606) |
Unrealized appreciation (depreciation) on open futures contracts is required to be treated as realized gain (loss) for tax purposes.
At November 30, 2015, the fund had the following open credit default swap contracts:
Credit Default Swaps | ||||||
Remaining | ||||||
Up-Front | Periodic | |||||
Premium | Premium | Unrealized | ||||
Notional | Received | Received | Appreciation | |||
Termination | Amount | (Paid) | (Paid) | (Depreciation) | ||
Reference Entity | Date | Counterparty | ($000) | ($000) | (%) | ($000) |
Credit Protection Purchased | ||||||
General Mills Inc. | 3/20/18 | DBAG | 25,000 | 415 | (1.000) | (118) |
DBAG—Deutsche Bank AG. |
F. Distributions are determined on a tax basis and may differ from net investment income and realized capital gains for financial reporting purposes. Differences may be permanent or temporary. Permanent differences are reclassified among capital accounts in the financial statements to reflect their tax character. Temporary differences arise when certain items of income, expense, gain, or loss are recognized in different periods for financial statement and tax purposes. These differences will reverse at some time in the future. Differences in classification may also result from the treatment of short-term gains as ordinary income for tax purposes.
During the year ended November 30, 2015, the fund realized net foreign currency losses of $244,000, which decreased distributable net income for tax purposes; accordingly, such losses have been reclassified from accumulated net realized gains to undistributed net investment income.
Realized and unrealized gains (losses) on certain of the fund’s swap contracts are treated as ordinary income (loss) for tax purposes; the effect on the fund’s income dividends to shareholders is offset by a change in principal return. Realized losses of $72,000 on swap contracts have been reclassified from accumulated net realized gains to undistributed net investment income.
The fund used a tax accounting practice to treat a portion of the price of capital shares redeemed during the year as distributions from realized capital gains. Accordingly, the fund has reclassified $346,050,000 from accumulated net realized gains to paid-in capital.
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Wellington Fund
For tax purposes, at November 30, 2015, the fund had $651,046,000 of ordinary income and $3,008,012,000 of long-term capital gains available for distribution.
At November 30, 2015, the cost of investment securities for tax purposes was $70,018,818,000. Net unrealized appreciation of investment securities for tax purposes was $18,004,212,000, consisting of unrealized gains of $19,496,628,000 on securities that had risen in value since their purchase and $1,492,416,000 in unrealized losses on securities that had fallen in value since their purchase.
G. During the year ended November 30, 2015, the fund purchased $18,517,467,000 of investment securities and sold $16,770,816,000 of investment securities, other than U.S. government securities and temporary cash investments. Purchases and sales of U.S. government securities were $17,379,425,000 and $17,656,883,000, respectively.
H. Capital share transactions for each class of shares were:
Year Ended November 30, | ||||
2015 | 2014 | |||
Amount | Shares | Amount | Shares | |
($000) | (000) | ($000) | (000) | |
Investor Shares | ||||
Issued | 2,170,855 | 55,309 | 2,619,108 | 67,325 |
Issued in Lieu of Cash Distributions | 1,379,472 | 35,164 | 1,667,729 | 43,583 |
Redeemed | (7,715,504) | (195,803) | (7,292,716) | (185,330) |
Net Increase (Decrease)—Investor Shares | (4,165,177) | (105,330) | (3,005,879) | (74,422) |
Admiral Shares | ||||
Issued | 10,884,879 | 159,989 | 11,217,869 | 165,365 |
Issued in Lieu of Cash Distributions | 3,906,854 | 57,729 | 3,316,007 | 50,102 |
Redeemed | (6,963,165) | (103,021) | (5,447,735) | (80,541) |
Net Increase (Decrease) —Admiral Shares | 7,828,568 | 114,697 | 9,086,141 | 134,926 |
I. Management has determined that no material events or transactions occurred subsequent to November 30, 2015, that would require recognition or disclosure in these financial statements.
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Report of Independent Registered Public Accounting Firm
To the Board of Trustees and Shareholders of Vanguard Wellington Fund:
In our opinion, the accompanying statement of net assets—investments summary and the related statements of operations and of changes in net assets and the financial highlights present fairly, in all material respects, the financial position of Vanguard Wellington Fund (the “Fund”) at November 30, 2015, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended, in conformity with accounting principles generally accepted in the United States of America. These financial statements and financial highlights (hereafter referred to as “financial statements”) are the responsibility of the Fund’s management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these financial statements in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits, which included confirmation of securities at November 30, 2015 by correspondence with the custodian and brokers and the application of alternative auditing procedures where securities purchased had not been received, provide a reasonable basis for our opinion.
/s/PricewaterhouseCoopers LLP
Philadelphia, Pennsylvania
January 13, 2016
Special 2015 tax information (unaudited) for Vanguard Wellington Fund |
This information for the fiscal year ended November 30, 2015, is included pursuant to provisions |
of the Internal Revenue Code. |
The fund distributed $3,167,093,000 as capital gain dividends (20% rate gain distributions) |
to shareholders during the fiscal year. |
For nonresident alien shareholders, 100% of short-term capital gain dividends distributed by the |
fund are qualified short-term capital gains. |
The fund distributed $1,403,924,000 of qualified dividend income to shareholders during the |
fiscal year. |
For corporate shareholders, 49.2% of investment income (dividend income plus short-term gains, |
if any) qualifies for the dividends-received deduction. |
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Your Fund’s After-Tax Returns
This table presents returns for your fund both before and after taxes. The after-tax returns are shown in two ways: (1) assuming that an investor owned the fund during the entire period and paid taxes on the fund’s distributions, and (2) assuming that an investor paid taxes on the fund’s distributions and sold all shares at the end of each period.
Calculations are based on the highest individual federal income tax and capital gains tax rates in effect at the times of the distributions and the hypothetical sales. State and local taxes were not considered. After-tax returns reflect any qualified dividend income, using actual prior-year figures and estimates for 2015. (In the example, returns after the sale of fund shares may be higher than those assuming no sale. This occurs when the sale would have produced a capital loss. The calculation assumes that the investor received a tax deduction for the loss.)
The table shows returns for Investor Shares only; returns for other share classes will differ. Please note that your actual after-tax returns will depend on your tax situation and may differ from those shown. Also note that if you own the fund in a tax-deferred account, such as an individual retirement account or a 401(k) plan, this information does not apply to you. Such accounts are not subject to current taxes.
Finally, keep in mind that a fund’s performance—whether before or after taxes—does not guarantee future results.
Average Annual Total Returns: Wellington Fund Investor Shares
Periods Ended November 30, 2015
One | Five | Ten | |
Year | Years | Years | |
Returns Before Taxes | 1.22% | 10.28% | 7.51% |
Returns After Taxes on Distributions | -0.55 | 8.97 | 6.22 |
Returns After Taxes on Distributions and Sale of Fund Shares | 1.60 | 7.87 | 5.75 |
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About Your Fund’s Expenses
As a shareholder of the fund, you incur ongoing costs, which include costs for portfolio management, administrative services, and shareholder reports (like this one), among others. Operating expenses, which are deducted from a fund’s gross income, directly reduce the investment return of the fund.
A fund’s expenses are expressed as a percentage of its average net assets. This figure is known as the expense ratio. The following examples are intended to help you understand the ongoing costs (in dollars) of investing in your fund and to compare these costs with those of other mutual funds. The examples are based on an investment of $1,000 made at the beginning of the period shown and held for the entire period.
The accompanying table illustrates your fund’s costs in two ways:
• Based on actual fund return. This section helps you to estimate the actual expenses that you paid over the period. The ”Ending Account Value“ shown is derived from the fund‘s actual return, and the third column shows the dollar amount that would have been paid by an investor who started with $1,000 in the fund. You may use the information here, together with the amount you invested, to estimate the expenses that you paid over the period.
To do so, simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number given for your fund under the heading ”Expenses Paid During Period.“
• Based on hypothetical 5% yearly return. This section is intended to help you compare your fund‘s costs with those of other mutual funds. It assumes that the fund had a yearly return of 5% before expenses, but that the expense ratio is unchanged. In this case—because the return used is not the fund’s actual return—the results do not apply to your investment. The example is useful in making comparisons because the Securities and Exchange Commission requires all mutual funds to calculate expenses based on a 5% return. You can assess your fund’s costs by comparing this hypothetical example with the hypothetical examples that appear in shareholder reports of other funds.
Note that the expenses shown in the table are meant to highlight and help you compare ongoing costs only and do not reflect transaction costs incurred by the fund for buying and selling securities. Further, the expenses do not include any purchase, redemption, or account service fees described in the fund prospectus. If such fees were applied to your account, your costs would be higher. Your fund does not carry a “sales load.”
The calculations assume no shares were bought or sold during the period. Your actual costs may have been higher or lower, depending on the amount of your investment and the timing of any purchases or redemptions.
You can find more information about the fund’s expenses, including annual expense ratios, in the Financial Statements section of this report. For additional information on operating expenses and other shareholder costs, please refer to your fund’s current prospectus.
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Six Months Ended November 30, 2015 | |||
Beginning | Ending | Expenses | |
Account Value | Account Value | Paid During | |
Wellington Fund | 5/31/2015 | 11/30/2015 | Period |
Based on Actual Fund Return | |||
Investor Shares | $1,000.00 | $992.10 | $1.30 |
Admiral Shares | 1,000.00 | 992.34 | 0.90 |
Based on Hypothetical 5% Yearly Return | |||
Investor Shares | $1,000.00 | $1,023.76 | $1.32 |
Admiral Shares | 1,000.00 | 1,024.17 | 0.91 |
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 0.26% for Investor Shares and 0.18% 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 (183/365).
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Trustees Approve Advisory Arrangement
The board of trustees of Vanguard Wellington Fund has renewed the fund’s investment advisory arrangement with Wellington Management Company LLP (Wellington Management). The board determined that renewing the fund’s advisory arrangement was in the best interests of the fund and its shareholders.
The board based its decision upon an evaluation of the advisor’s investment staff, portfolio management process, and performance. The trustees considered the factors discussed below, among others. However, no single factor determined whether the board approved the arrangement. Rather, it was the totality of the circumstances that drove the board’s decision.
Nature, extent, and quality of services
The board reviewed the quality of the fund’s investment management services over both the short and long term, and took into account the organizational depth and stability of the advisor. The board considered that Wellington Management, founded in 1928, is among the nation’s oldest and most respected institutional managers. The board also noted that the two senior portfolio managers of the fund each have over two decades of investment industry experience. The managers are backed by well-tenured teams of equity and fixed income research analysts who conduct detailed fundamental analysis of their respective industries and companies. In managing the equity portion of the fund, Edward P. Bousa employs bottom-up, fundamental research focusing on high-quality companies with above-average yields, strong balance sheets, sustainable competitive advantages, and attractive valuations. In managing the fixed income portion of the fund, John C. Keogh focuses on investment-grade corporate bonds with intermediate maturities. The firm has advised the fund since its inception in 1929.
The board concluded that the advisor’s experience, stability, depth, and performance, among other factors, warranted continuation of the advisory arrangement.
Investment performance
The board considered the short- and long-term performance of the fund, including any periods of outperformance or underperformance relative to a benchmark index and peer group. The board concluded that the performance was such that the advisory arrangement should continue. Information about the fund’s most recent performance can be found in the Performance Summary section of this report.
Cost
The board concluded that the fund’s expense ratio was well below the average expense ratio charged by funds in its peer group and that the fund’s advisory fee rate was also well below its peer-group average. Information about the fund’s expenses appears in the About Your Fund’s Expenses section of this report as well as in the Financial Statements section, which also includes information about the advisory fee rate.
The board did not consider profitability of Wellington Management in determining whether to approve the advisory fee, because Wellington Management is independent of Vanguard, and the advisory fee is the result of arm’s-length negotiations.
The benefit of economies of scale
The board concluded that the fund’s shareholders benefit from economies of scale because of the breakpoints in the fund’s advisory fee schedule. The breakpoints reduce the effective rate of the fee as the fund’s assets increase.
The board will consider whether to renew the advisory arrangement again after a one-year period.
38
Glossary
30-Day SEC Yield. A fund’s 30-day SEC yield is derived using a formula specified by the U.S. Securities and Exchange Commission. Under the formula, data related to the fund’s security holdings in the previous 30 days are used to calculate the fund’s hypothetical net income for that period, which is then annualized and divided by the fund’s estimated average net assets over the calculation period. For the purposes of this calculation, a security’s income is based on its current market yield to maturity (for bonds), its actual income (for asset-backed securities), or its projected dividend yield (for stocks). Because the SEC yield represents hypothetical annualized income, it will differ—at times significantly—from the fund’s actual experience. As a result, the fund’s income distributions may be higher or lower than implied by the SEC yield.
Average Coupon. The average interest rate paid on the fixed income securities held by a fund. It is expressed as a percentage of face value.
Average Duration. An estimate of how much the value of the bonds held by a fund will fluctuate in response to a change in interest rates. To see how the value could change, multiply the average duration by the change in rates. If interest rates rise by 1 percentage point, the value of the bonds in a fund with an average duration of five years would decline by about 5%. If rates decrease by a percentage point, the value would rise by 5%.
Average Effective Maturity. The average length of time until fixed income securities held by a fund reach maturity and are repaid, taking into consideration the possibility that the issuer may call the bond before its maturity date. The figure reflects the proportion of fund assets represented by each security; it also reflects any futures contracts held. In general, the longer the average effective maturity, the more a fund’s share price will fluctuate in response to changes in market interest rates.
Beta. A measure of the magnitude of a fund’s past share-price fluctuations in relation to the ups and downs of a given market index. The index is assigned a beta of 1.00. Compared with a given index, a fund with a beta of 1.20 typically would have seen its share price rise or fall by 12% when the index rose or fell by 10%. For this report, beta is based on returns over the past 36 months for both the fund and the index. Note that a fund’s beta should be reviewed in conjunction with its R-squared (see definition). The lower the R-squared, the less correlation there is between the fund and the index, and the less reliable beta is as an indicator of volatility.
Credit Quality. Credit-quality ratings are measured on a scale that generally ranges from AAA (highest) to D (lowest). U.S. Treasury, U.S. Agency, and U.S. Agency mortgage-backed securities appear under “U.S. Government.” Credit-quality ratings are obtained from Barclays and are from Moody’s, Fitch, and S&P. When ratings from all three agencies are used, the median rating is shown. When ratings from two of the agencies are used, the lower rating for each issue is shown. “Not Rated” is used to classify securities for which a rating is not available. Not rated securities include a fund’s investment in Vanguard Market Liquidity Fund or Vanguard Municipal Cash Management Fund, each of which invests in high-quality money market instruments and may serve as a cash management vehicle for the Vanguard funds, trusts, and accounts.
Dividend Yield. The current, annualized rate of dividends paid on a share of stock, divided by its current share price. For a fund, the weighted average yield for stocks it holds. The index yield is based on the current annualized rate of dividends paid on stocks in the index.
39
Earnings Growth Rate. The average annual rate of growth in earnings over the past five years for the stocks now in a fund.
Equity Exposure. A measure that reflects a fund’s investments in stocks and stock futures. Any holdings in short-term reserves are excluded.
Expense Ratio. A fund’s total annual operating expenses expressed as a percentage of the fund’s average net assets. The expense ratio includes management and administrative expenses, but does not include the transaction costs of buying and selling portfolio securities.
Foreign Holdings. The percentage of a fund represented by securities or depositary receipts of companies based outside the United States.
Inception Date. The date on which the assets of a fund (or one of its share classes) are first invested in accordance with the fund’s investment objective. For funds with a subscription period, the inception date is the day after that period ends. Investment performance is measured from the inception date.
Median Market Cap. An indicator of the size of companies in which a fund invests; the midpoint of market capitalization (market price x shares outstanding) of a fund’s stocks, weighted by the proportion of the fund’s assets invested in each stock. Stocks representing half of the fund’s assets have market capitalizations above the median, and the rest are below it.
Price/Book Ratio. The share price of a stock divided by its net worth, or book value, per share. For a fund, the weighted average price/book ratio of the stocks it holds.
Price/Earnings Ratio. The ratio of a stock’s current price to its per-share earnings over the past year. For a fund, the weighted average P/E of the stocks it holds. P/E is an indicator of market expectations about corporate prospects; the higher the P/E, the greater the expectations for a company’s future growth.
R-Squared. A measure of how much of a fund’s past returns can be explained by the returns from the market in general, as measured by a given index. If a fund’s total returns were precisely synchronized with an index’s returns, its R-squared would be 1.00. If the fund’s returns bore no relationship to the index’s returns, its R-squared would be 0. For this report, R-squared is based on returns over the past 36 months for both the fund and the index.
Return on Equity. The annual average rate of return generated by a company during the past five years for each dollar of shareholder’s equity (net income divided by shareholder’s equity). For a fund, the weighted average return on equity for the companies whose stocks it holds.
Short-Term Reserves. The percentage of a fund invested in highly liquid, short-term securities that can be readily converted to cash.
Turnover Rate. An indication of the fund’s trading activity. Funds with high turnover rates incur higher transaction costs and may be more likely to distribute capital gains (which may be taxable to investors). The turnover rate excludes in-kind transactions, which have minimal impact on costs.
Yield to Maturity. The rate of return an investor would receive if the fixed income securities held by a fund were held to their maturity dates.
40
Benchmark Information
Wellington Composite Index: 65% S&P 500 Index and 35% Lehman U.S. Long Credit AA or Better Bond Index through February 29, 2000; 65% S&P 500 Index and 35% Barclays U.S. Credit A or Better Bond Index thereafter.
41
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The People Who Govern Your Fund
The trustees of your mutual fund are there to see that the fund is operated and managed in your best interests since, as a shareholder, you are a part owner of the fund. Your fund’s trustees also serve on the board of directors of The Vanguard Group, Inc., which is owned by the Vanguard funds and provides services to them on an at-cost basis.
A majority of Vanguard’s board members are independent, meaning that they have no affiliation with Vanguard or the funds they oversee, apart from the sizable personal investments they have made as private individuals. The independent board members have distinguished backgrounds in business, academia, and public service. Each of the trustees and executive officers oversees 194 Vanguard funds.
The following table provides information for each trustee and executive officer of the fund. More information about the trustees is in the Statement of Additional Information, which can be obtained, without charge, by contacting Vanguard at 800-662-7447, or online at vanguard.com.
InterestedTrustee1 | Rajiv L. Gupta |
Born 1945. Trustee Since December 2001.2 Principal | |
F. William McNabb III | Occupation(s) During the Past Five Years and Other |
Born 1957. Trustee Since July 2009. Chairman of | Experience: Chairman and Chief Executive Officer |
the Board. Principal Occupation(s) During the Past | (retired 2009) and President (2006–2008) of |
Five Years and Other Experience: Chairman of the | Rohm and Haas Co. (chemicals); Director of Tyco |
Board of The Vanguard Group, Inc., and of each of | International PLC (diversified manufacturing and |
the investment companies served by The Vanguard | services), Hewlett-Packard Co. (electronic computer |
Group, since January 2010; Director of The Vanguard | manufacturing), and Delphi Automotive PLC |
Group since 2008; Chief Executive Officer and | (automotive components); Senior Advisor at New |
President of The Vanguard Group, and of each of | Mountain Capital. |
the investment companies served by The Vanguard | |
Group, since 2008; Director of Vanguard Marketing | Amy Gutmann |
Corporation; Managing Director of The Vanguard | Born 1949. Trustee Since June 2006. Principal |
Group (1995–2008). | Occupation(s) During the Past Five Years and |
Other Experience: President of the University of | |
IndependentTrustees | Pennsylvania; Christopher H. Browne Distinguished |
Professor of Political Science, School of Arts and | |
Emerson U. Fullwood | Sciences, and Professor of Communication, Annenberg |
Born 1948. Trustee Since January 2008. Principal | School for Communication, with secondary faculty |
Occupation(s) During the Past Five Years and | appointments in the Department of Philosophy, School |
Other Experience: Executive Chief Staff and | of Arts and Sciences, and at the Graduate School of |
Marketing Officer for North America and Corporate | Education, University of Pennsylvania; Trustee of the |
Vice President (retired 2008) of Xerox Corporation | National Constitution Center; Chair of the Presidential |
(document management products and services); | Commission for the Study of Bioethical Issues. |
Executive in Residence and 2009–2010 Distinguished | |
Minett Professor at the Rochester Institute of | JoAnn Heffernan Heisen |
Technology; Director of SPX Corporation (multi-industry | Born 1950. Trustee Since July 1998. Principal |
manufacturing), the United Way of Rochester, the | Occupation(s) During the Past Five Years and |
University of Rochester Medical Center, Monroe | Other Experience: Corporate Vice President and |
Community College Foundation, and North Carolina | Chief Global Diversity Officer (retired 2008) and |
A&T University. | Member of the Executive Committee (1997–2008) |
of Johnson & Johnson (pharmaceuticals/medical | |
devices/consumer products); Director of Skytop | |
Lodge Corporation (hotels) and the Robert Wood | |
Johnson Foundation; Member of the Advisory | |
Board of the Institute for Women’s Leadership | |
at Rutgers University. |
F. Joseph Loughrey | Executive Officers | |
Born 1949. Trustee Since October 2009. Principal | ||
Occupation(s) During the Past Five Years and Other | Glenn Booraem | |
Experience: President and Chief Operating Officer | Born 1967. Treasurer Since May 2015. Principal | |
(retired 2009) of Cummins Inc. (industrial machinery); | Occupation(s) During the Past Five Years and | |
Chairman of the Board of Hillenbrand, Inc. (specialized | Other Experience: Principal of The Vanguard Group, | |
consumer services), and of Oxfam America; Director | Inc.; Treasurer of each of the investment companies | |
of SKF AB (industrial machinery), Hyster-Yale Materials | served by The Vanguard Group; Controller of each of | |
Handling, Inc. (forklift trucks), the Lumina Foundation | the investment companies served by The Vanguard | |
for Education, and the V Foundation for Cancer | Group (2010–2015); Assistant Controller of each of | |
Research; Member of the Advisory Council for the | the investment companies served by The Vanguard | |
College of Arts and Letters and of the Advisory Board | Group (2001–2010). | |
to the Kellogg Institute for International Studies, both | ||
at the University of Notre Dame. | Thomas J. Higgins | |
Born 1957. Chief Financial Officer Since September | ||
Mark Loughridge | 2008. Principal Occupation(s) During the Past Five | |
Born 1953. Trustee Since March 2012. Principal | Years and Other Experience: Principal of The Vanguard | |
Occupation(s) During the Past Five Years and Other | Group, Inc.; Chief Financial Officer of each of the | |
Experience: Senior Vice President and Chief Financial | investment companies served by The Vanguard Group; | |
Officer (retired 2013) at IBM (information technology | Treasurer of each of the investment companies served | |
services); Fiduciary Member of IBM’s Retirement Plan | by The Vanguard Group (1998–2008). | |
Committee (2004–2013); Director of the Dow Chemical | ||
Company; Member of the Council on Chicago Booth. | Peter Mahoney | |
Born 1974. Controller Since May 2015. Principal | ||
Scott C. Malpass | Occupation(s) During the Past Five Years and | |
Born 1962. Trustee Since March 2012. Principal | Other Experience: Head of Global Fund Accounting | |
Occupation(s) During the Past Five Years and Other | at The Vanguard Group, Inc.; Controller of each of the | |
Experience: Chief Investment Officer and Vice | investment companies served by The Vanguard Group; | |
President at the University of Notre Dame; Assistant | Head of International Fund Services at The Vanguard | |
Professor of Finance at the Mendoza College of | Group (2008–2014). | |
Business at Notre Dame; Member of the Notre Dame | ||
403(b) Investment Committee; Board Member of | Heidi Stam | |
TIFF Advisory Services, Inc., and Catholic Investment | Born 1956. Secretary Since July 2005. Principal | |
Services, Inc. (investment advisors); Member of | Occupation(s) During the Past Five Years and Other | |
the Investment Advisory Committee of Major | Experience: Managing Director of The Vanguard | |
League Baseball. | Group, Inc.; General Counsel of The Vanguard Group; | |
Secretary of The Vanguard Group and of each of the | ||
André F. Perold | investment companies served by The Vanguard Group; | |
Born 1952. Trustee Since December 2004. Principal | Director and Senior Vice President of Vanguard | |
Occupation(s) During the Past Five Years and Other | Marketing Corporation. | |
Experience: George Gund Professor of Finance and | ||
Banking, Emeritus at the Harvard Business School | Vanguard Senior ManagementTeam | |
(retired 2011); Chief Investment Officer and Managing | Mortimer J. Buckley | Chris D. McIsaac |
Partner of HighVista Strategies LLC (private investment | Kathleen C. Gubanich | James M. Norris |
firm); Director of Rand Merchant Bank; Overseer of | Paul A. Heller | Thomas M. Rampulla |
the Museum of Fine Arts Boston. | Martha G. King | Glenn W. Reed |
John T. Marcante | Karin A. Risi | |
Peter F. Volanakis | ||
Born 1955. Trustee Since July 2009. Principal | Chairman Emeritus and Senior Advisor | |
Occupation(s) During the Past Five Years and Other | ||
Experience: President and Chief Operating Officer | John J. Brennan | |
(retired 2010) of Corning Incorporated (communications | Chairman, 1996–2009 | |
equipment); Trustee of Colby-Sawyer College; | Chief Executive Officer and President, 1996–2008 | |
Member of the Advisory Board of the Norris Cotton | ||
Cancer Center and of the Advisory Board of the | Founder | |
Parthenon Group (strategy consulting). | ||
John C. Bogle | ||
Chairman and Chief Executive Officer, 1974–1996 |
1 Mr. McNabb is considered an “interested person,” as defined in the Investment Company Act of 1940, because he is an officer of the Vanguard funds.
2 December 2002 for Vanguard Equity Income Fund, the Vanguard Municipal Bond Funds, and the Vanguard State Tax-Exempt Funds.
P.O. Box 2600 | |
Valley Forge, PA 19482-2600 |
Connect with Vanguard® > vanguard.com
Fund Information > 800-662-7447 | CFA® is a registered trademark owned by CFA Institute. |
Direct Investor Account Services > 800-662-2739 | |
Institutional Investor Services > 800-523-1036 | |
Text Telephone for People | |
Who Are Deaf or Hard of Hearing> 800-749-7273 | |
This material may be used in conjunction | |
with the offering of shares of any Vanguard | |
fund only if preceded or accompanied by | |
the fund’s current prospectus. | |
All comparative mutual fund data are from Lipper, a | |
Thomson Reuters Company, or Morningstar, Inc., unless | |
otherwise noted. | |
You can obtain a free copy of Vanguard’s proxy voting | |
guidelines by visiting vanguard.com/proxyreporting or by | |
calling Vanguard at 800-662-2739. The guidelines are | |
also available from the SEC’s website, sec.gov. In | |
addition, you may obtain a free report on how your fund | |
voted the proxies for securities it owned during the 12 | |
months ended June 30. To get the report, visit either | |
vanguard.com/proxyreporting or sec.gov. | |
You can review and copy information about your fund at | |
the SEC’s Public Reference Room in Washington, D.C. To | |
find out more about this public service, call the SEC at | |
202-551-8090. Information about your fund is also | |
available on the SEC’s website, and you can receive | |
copies of this information, for a fee, by sending a | |
request in either of two ways: via email addressed to | |
publicinfo@sec.gov or via regular mail addressed to the | |
Public Reference Section, Securities and Exchange | |
Commission, Washington, DC 20549-1520. | |
© 2016 The Vanguard Group, Inc. | |
All rights reserved. | |
Vanguard Marketing Corporation, Distributor. | |
Q210 012016 |
Item 2: Code of Ethics. The Registrant has adopted a code of ethics that applies to the Registrant’s principal executive officer, principal financial officer, principal accounting officer or controller or persons performing similar functions. The Code of Ethics was amended during the reporting period covered by this report to make certain technical, non-material changes.
Item 3: Audit Committee Financial Expert. The following members of the Audit Committee have been determined by the Registrant’s Board of Trustees to be Audit Committee Financial Experts serving on its Audit Committee, and to be independent: Rajiv L. Gupta, Amy Gutmann, JoAnn Heffernan Heisen, F. Joseph Loughrey, Mark Loughridge, Scott C. Malpass, and André F. Perold.
Item 4: Principal Accountant Fees and Services.
(a) Audit Fees.
Audit Fees of the Registrant
Fiscal Year Ended November 30, 2015: $38,000 Fiscal Year Ended November 30, 2014: $37,000
Aggregate Audit Fees of Registered Investment Companies in the Vanguard Group.
Fiscal Year Ended November 30, 2015: $7,000,200
Fiscal Year Ended November 30, 2014: $6,605,127
Includes fees billed in connection with audits of the Registrant, other registered investment companies in the Vanguard complex, The Vanguard Group, Inc. and Vanguard Marketing Corporation.
(b) Audit-Related Fees.
Fiscal Year Ended November 30, 2015: $2,899,096
Fiscal Year Ended November 30, 2014: $2,176,479
Includes fees billed in connection with assurance and related services provided to the Registrant, other registered investment companies in the Vanguard complex, The Vanguard Group, Inc., and Vanguard Marketing Corporation.
(c) Tax Fees.
Fiscal Year Ended November 30, 2015: $353,389
Fiscal Year Ended November 30, 2014: $316,869
Includes fees billed in connection with tax compliance, planning, and advice services provided to the Registrant, other registered investment companies in the Vanguard complex, The Vanguard Group, Inc., and Vanguard Marketing Corporation.
(d) All Other Fees.
Fiscal Year Ended November 30, 2015: $202,313
Fiscal Year Ended November 30, 2014: $198,163
Includes fees billed for services related to tax reported information provided to the Registrant, other registered investment companies in the Vanguard complex, The Vanguard Group, Inc., and Vanguard Marketing Corporation.
(e) (1) Pre-Approval Policies. The policy of the Registrant’s Audit Committee is to consider and, if appropriate, approve before the principal accountant is engaged for such services, all specific audit and non-audit services provided to: the Registrant, other registered investment companies in the Vanguard complex, The Vanguard Group, Inc., and entities controlled by The Vanguard Group, Inc. that provide ongoing services to the Registrant. In making a determination, the Audit Committee considers whether the services are consistent with maintaining the principal accountant’s independence.
In the event of a contingency situation in which the principal accountant is needed to provide services in between scheduled Audit Committee meetings, the Chairman of the Audit Committee would be called on to consider and, if appropriate, pre-approve audit or permitted non-audit services in an amount sufficient to complete services through the next Audit Committee meeting, and to determine if such services would be consistent with maintaining the accountant’s independence. At the next scheduled Audit Committee meeting, services and fees would be presented to the Audit Committee for formal consideration, and, if appropriate, approval by the entire Audit Committee. The Audit Committee would again consider whether such services and fees are consistent with maintaining the principal accountant’s independence.
The Registrant’s Audit Committee is informed at least annually of all audit and non-audit services provided by the principal accountant to the Vanguard complex, whether such services are provided to: the Registrant, other registered investment companies in the Vanguard complex, The Vanguard Group, Inc., or other entities controlled by The Vanguard Group, Inc. that provide ongoing services to the Registrant.
(2) No percentage of the principal accountant’s fees or services were approved pursuant to the waiver provision of paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X.
(f) For the most recent fiscal year, over 50% of the hours worked under the principal accountant’s engagement were not performed by persons other than full-time, permanent employees of the principal accountant.
(g) Aggregate Non-Audit Fees.
Fiscal Year Ended November 30, 2015: $555,702
Fiscal Year Ended November 30, 2014: $515,032
Includes fees billed for non-audit services provided to the Registrant, other registered investment companies in the Vanguard complex, The Vanguard Group, Inc., and Vanguard Marketing Corporation.
(h) For the most recent fiscal year, the Audit Committee has determined that the provision of all non-audit services was consistent with maintaining the principal accountant’s independence.
Item 5: Audit Committee of Listed Registrants.
Not Applicable.
Item 6: Investments.
Vanguard® Wellington Fund | ||
Schedule of Investments | ||
November 30, 2015 | ||
Market | ||
Value | ||
Shares | ($000) | |
Common Stocks (64.9%) | ||
Consumer Discretionary (4.6%) | ||
Comcast Corp. Class A | 23,862,156 | 1,452,251 |
Ford Motor Co. | 49,875,770 | 714,720 |
Twenty-First Century Fox Inc. Class A | 22,697,741 | 669,810 |
Lowe's Cos. Inc. | 7,410,620 | 567,654 |
Hilton Worldwide Holdings Inc. | 17,500,284 | 406,357 |
Bayerische Motoren Werke AG | 2,075,692 | 226,057 |
Las Vegas Sands Corp. | 933,283 | 41,120 |
4,077,969 | ||
Consumer Staples (6.0%) | ||
CVS Health Corp. | 12,042,860 | 1,133,113 |
Coca-Cola Co. | 15,544,750 | 662,517 |
Philip Morris International Inc. | 6,964,240 | 608,605 |
PepsiCo Inc. | 5,523,590 | 553,243 |
Mondelez International Inc. Class A | 11,821,490 | 516,126 |
Diageo plc | 17,871,438 | 512,581 |
Colgate-Palmolive Co. | 7,793,190 | 511,857 |
Walgreens Boots Alliance Inc. | 4,034,730 | 339,038 |
Wal-Mart Stores Inc. | 5,311,340 | 312,519 |
Costco Wholesale Corp. | 930,870 | 150,261 |
Diageo plc ADR | 294,100 | 33,692 |
5,333,552 | ||
Energy (6.0%) | ||
Chevron Corp. | 15,203,500 | 1,388,384 |
Exxon Mobil Corp. | 13,635,254 | 1,113,455 |
Anadarko Petroleum Corp. | 9,024,800 | 540,586 |
TOTAL SA | 10,879,083 | 538,719 |
Royal Dutch Shell plc Class B | 18,492,900 | 460,059 |
EOG Resources Inc. | 5,418,510 | 452,066 |
Hess Corp. | 6,026,040 | 355,536 |
Schlumberger Ltd. | 3,747,753 | 289,139 |
Marathon Oil Corp. | 9,776,130 | 171,180 |
5,309,124 | ||
Financials (15.2%) | ||
Wells Fargo & Co. | 40,665,497 | 2,240,669 |
JPMorgan Chase & Co. | 21,826,696 | 1,455,404 |
ACE Ltd. | 10,963,040 | 1,259,105 |
Prudential Financial Inc. | 12,710,780 | 1,100,118 |
PNC Financial Services Group Inc. | 9,751,100 | 931,328 |
BlackRock Inc. | 2,532,620 | 921,165 |
Bank of America Corp. | 40,465,620 | 705,316 |
Citigroup Inc. | 12,779,990 | 691,270 |
MetLife Inc. | 10,670,434 | 545,152 |
Marsh & McLennan Cos. Inc. | 8,646,590 | 478,156 |
Northern Trust Corp. | 6,042,674 | 452,838 |
Mitsubishi UFJ Financial Group Inc. | 64,052,600 | 411,549 |
US Bancorp | 8,588,710 | 376,958 |
Bank of Nova Scotia | 7,986,660 | 363,792 |
American Tower Corporation | 3,336,637 | 331,595 |
American International Group Inc. | 4,591,050 | 291,899 |
Hartford Financial Services Group Inc. | 6,387,902 | 291,544 |
UBS Group AG | 14,314,042 | 274,257 |
BNP Paribas SA | 2,813,618 | 166,581 |
AvalonBay Communities Inc. | 884,916 | 160,869 |
13,449,565 | ||
Health Care (11.4%) | ||
Merck & Co. Inc. | 30,137,482 | 1,597,588 |
Bristol-Myers Squibb Co. | 16,746,125 | 1,122,158 |
Johnson & Johnson | 9,652,316 | 977,201 |
AstraZeneca plc ADR | 28,447,756 | 968,646 |
Medtronic plc | 12,013,790 | 905,119 |
Pfizer Inc. | 25,588,990 | 838,551 |
1
Vanguard® Wellington Fund | ||
Schedule of Investments | ||
November 30, 2015 | ||
Market | ||
Value | ||
Shares | ($000) | |
Cardinal Health Inc. | 8,137,940 | 706,780 |
Eli Lilly & Co. | 8,387,070 | 688,075 |
UnitedHealth Group Inc. | 5,600,090 | 631,186 |
Novartis AG | 4,740,004 | 404,380 |
Roche Holding AG | 1,429,908 | 383,017 |
Baxter International Inc. | 10,158,760 | 382,477 |
Gilead Sciences Inc. | 1,685,056 | 178,549 |
* Celgene Corp. | 1,558,940 | 170,626 |
Takeda Pharmaceutical Co. Ltd. | 3,061,400 | 148,967 |
10,103,320 | ||
Industrials (7.6%) | ||
United Parcel Service Inc. Class B | 9,703,433 | 999,551 |
Honeywell International Inc. | 7,596,510 | 789,657 |
General Electric Co. | 21,229,232 | 635,603 |
Lockheed Martin Corp. | 2,814,020 | 616,721 |
CSX Corp. | 18,894,760 | 537,178 |
Caterpillar Inc. | 6,104,061 | 443,460 |
United Technologies Corp. | 4,418,627 | 424,409 |
FedEx Corp. | 2,669,270 | 423,186 |
Eaton Corp. plc | 7,235,760 | 420,832 |
Raytheon Co. | 3,370,921 | 418,095 |
Canadian National Railway Co. | 5,987,176 | 357,734 |
Schneider Electric SE | 4,497,335 | 284,121 |
Illinois Tool Works Inc. | 2,141,295 | 201,239 |
ABB Ltd. ADR | 10,682,326 | 201,041 |
6,752,827 | ||
Information Technology (9.2%) | ||
Microsoft Corp. | 37,352,190 | 2,030,092 |
* Alphabet Inc. Class A | 1,855,072 | 1,415,142 |
Intel Corp. | 38,611,600 | 1,342,525 |
Cisco Systems Inc. | 36,734,120 | 1,001,005 |
Apple Inc. | 7,994,315 | 945,728 |
Accenture plc Class A | 7,698,340 | 825,416 |
Texas Instruments Inc. | 4,788,996 | 278,336 |
QUALCOMM Inc. | 4,669,121 | 227,806 |
Oracle Corp. | 3,533,980 | 137,719 |
8,203,769 | ||
Materials (1.1%) | ||
Praxair Inc. | 4,496,280 | 507,181 |
International Paper Co. | 10,838,490 | 453,374 |
BHP Billiton plc | 3,954,274 | 47,456 |
1,008,011 | ||
Telecommunication Services (1.6%) | ||
Verizon Communications Inc. | 30,630,890 | 1,392,174 |
Utilities (2.2%) | ||
NextEra Energy Inc. | 7,684,950 | 767,419 |
Dominion Resources Inc./VA | 9,520,100 | 641,369 |
Exelon Corp. | 14,474,964 | 395,311 |
Duke Energy Corp. | 2,898,450 | 196,399 |
2,000,498 | ||
Total Common Stocks (Cost $40,670,151) | 57,630,809 |
2
Vanguard® Wellington Fund | |||||
Schedule of Investments | |||||
November 30, 2015 | |||||
Face | Market | ||||
Maturity | Amount | Value | |||
Coupon | Date | ($000) | ($000) | ||
U.S. Government and Agency Obligations (6.5%) | |||||
U.S. Government Securities (5.5%) | |||||
1 | United States Treasury Note/Bond | 1.500% | 6/30/16 | 4,905 | 4,934 |
United States Treasury Note/Bond | 0.625% | 12/31/16 | 364,030 | 363,517 | |
United States Treasury Note/Bond | 0.875% | 1/31/17 | 12,165 | 12,178 | |
United States Treasury Note/Bond | 0.500% | 2/28/17 | 24,500 | 24,416 | |
United States Treasury Note/Bond | 0.625% | 7/31/17 | 368,000 | 366,561 | |
United States Treasury Note/Bond | 1.000% | 9/15/17 | 500,000 | 500,860 | |
United States Treasury Note/Bond | 0.750% | 10/31/17 | 50,700 | 50,526 | |
United States Treasury Note/Bond | 1.000% | 5/31/18 | 220,000 | 219,382 | |
United States Treasury Note/Bond | 1.375% | 9/30/18 | 953,900 | 958,965 | |
United States Treasury Note/Bond | 2.750% | 2/15/19 | 30,350 | 31,739 | |
United States Treasury Note/Bond | 1.750% | 9/30/19 | 950,000 | 960,393 | |
United States Treasury Note/Bond | 1.375% | 2/29/20 | 62,000 | 61,535 | |
United States Treasury Note/Bond | 1.625% | 6/30/20 | 72,610 | 72,610 | |
United States Treasury Note/Bond | 2.000% | 2/15/25 | 415,000 | 407,738 | |
United States Treasury Note/Bond | 2.875% | 5/15/43 | 519,777 | 508,976 | |
United States Treasury Note/Bond | 3.625% | 2/15/44 | 41,020 | 46,391 | |
United States Treasury Note/Bond | 3.375% | 5/15/44 | 176,670 | 190,528 | |
United States Treasury Note/Bond | 3.125% | 8/15/44 | 28,220 | 28,996 | |
United States Treasury Note/Bond | 2.500% | 2/15/45 | 76,255 | 68,796 | |
4,879,041 | |||||
Conventional Mortgage-Backed Securities (0.9%) | |||||
2,3 | Fannie Mae Pool | 2.500% | 7/1/27–1/1/29 | 8,536 | 8,660 |
2,3,4 | Fannie Mae Pool | 3.500% | 11/1/25–12/1/45 | 294,000 | 304,472 |
2,3 | Fannie Mae Pool | 4.500% | 6/1/28–12/1/45 | 338,307 | 368,038 |
2,3 | Freddie Mac Gold Pool | 3.000% | 5/1/22–8/1/29 | 41 | 43 |
2,3 | Freddie Mac Gold Pool | 4.500% | 6/1/23–12/1/45 | 86,730 | 94,626 |
3 | Ginnie Mae I Pool | 7.000% | 11/15/31–11/15/33 | 3,447 | 4,056 |
3 | Ginnie Mae I Pool | 8.000% | 6/15/17 | 9 | 9 |
779,904 | |||||
Nonconventional Mortgage-Backed Securities (0.1%) | |||||
2,3 | Fannie Mae REMICS | 3.500% | 4/25/31 | 9,730 | 10,178 |
2,3 | Fannie Mae REMICS | 4.000% | 9/25/29–5/25/31 | 18,581 | 20,149 |
2,3 | Freddie Mac REMICS | 3.500% | 3/15/31 | 5,760 | 6,030 |
2,3 | Freddie Mac REMICS | 4.000% | 12/15/30–4/15/31 | 108,686 | 118,395 |
154,752 | |||||
Total U.S. Government and Agency Obligations (Cost $5,701,357) | 5,813,697 | ||||
Asset-Backed/Commercial Mortgage-Backed Securities (1.7%) | |||||
3 | Ally Master Owner Trust Series 2012-5 | 1.540% | 9/15/19 | 105,755 | 105,521 |
3 | Ally Master Owner Trust Series 2014-5 | 1.600% | 10/15/19 | 145,385 | 145,147 |
5 | American Tower Trust I | 1.551% | 3/15/18 | 14,885 | 14,782 |
5 | American Tower Trust I | 3.070% | 3/15/23 | 43,000 | 41,974 |
3 | AmeriCredit Automobile Receivables Trust 2012-1 | 4.720% | 3/8/18 | 11,557 | 11,704 |
3,5,6 | Apidos CDO | 1.815% | 4/17/26 | 50,405 | 49,997 |
3,5,6 | ARES CLO Ltd. | 1.835% | 4/17/26 | 49,360 | 49,152 |
3,5,6 | Atlas Senior Loan Fund Ltd. | 1.861% | 10/15/26 | 13,245 | 13,141 |
3,5,6 | Atlas Senior Loan Fund V Ltd. | 1.867% | 7/16/26 | 12,135 | 12,047 |
3,5 | Avis Budget Rental Car Funding AESOP LLC 2010-5A | 3.150% | 3/20/17 | 8,000 | 8,028 |
3,5,6 | Babson CLO Ltd. | 1.807% | 7/20/25 | 5,660 | 5,629 |
3 | Banc of America Commercial Mortgage Trust 2006-2 | 5.997% | 5/10/45 | 8,623 | 8,682 |
3 | Banc of America Commercial Mortgage Trust 2006-5 | 5.414% | 9/10/47 | 16,919 | 17,158 |
3 | Bear Stearns Commercial Mortgage Securities Trust | ||||
2006-PWR13 | 5.540% | 9/11/41 | 19,512 | 19,869 | |
3,5,6 | CECLO 2013-20A 144A | 1.800% | 1/25/26 | 40,000 | 39,408 |
3,5,6 | Cent CLO | 1.813% | 7/27/26 | 24,430 | 24,195 |
3
Vanguard® Wellington Fund | |||||
Schedule of Investments | |||||
November 30, 2015 | |||||
Face | Market | ||||
Maturity | Amount | Value | |||
Coupon | Date | ($000) | ($000) | ||
3,5,6 | Cent CLO 22 Ltd. | 1.824% | 11/7/26 | 37,150 | 36,778 |
3,5,6 | CIFC Funding Ltd. | 1.815% | 4/18/25 | 47,325 | 47,096 |
3 | COMM 2006-C7 Mortgage Trust | 5.961% | 6/10/46 | 13,749 | 13,898 |
3 | COMM 2012-CCRE2 Mortgage Trust | 3.147% | 8/15/45 | 18,085 | 18,535 |
3 | Credit Suisse Commercial Mortgage Trust Series 2006- | ||||
C4 | 5.467% | 9/15/39 | 11,411 | 11,583 | |
3,5,6 | Dryden Senior Loan Fund | 1.667% | 4/18/26 | 46,650 | 45,945 |
3,5 | First Investors Auto Owner Trust 2013-2 | 1.230% | 3/15/19 | 4,033 | 4,035 |
3,5 | Ford Credit Floorplan Master Owner Trust A | 2.090% | 3/15/22 | 12,600 | 12,609 |
3 | Ford Credit Floorplan Master Owner Trust A Series | ||||
2012-2 | 1.920% | 1/15/19 | 30,861 | 31,089 | |
3,5 | Hilton USA Trust 2013-HLT | 2.662% | 11/5/30 | 45,820 | 45,759 |
3,5,6 | ING Investment Management Co. | 1.815% | 4/18/26 | 46,560 | 46,331 |
3 | LB-UBS Commercial Mortgage Trust 2006-C4 | 6.016% | 6/15/38 | 8,943 | 9,034 |
3,6 | LB-UBS Commercial Mortgage Trust 2008-C1 | 6.269% | 4/15/41 | 26,310 | 28,270 |
3,5,6 | Limerock CLO | 1.817% | 4/18/26 | 53,500 | 53,064 |
3,5,6 | Madison Park Funding XII Ltd. | 1.765% | 1/19/25 | 31,070 | 30,878 |
3,5,6 | Madison Park Funding XIII Ltd. | 1.817% | 7/20/26 | 37,385 | 37,130 |
3 | Merrill Lynch Mortgage Trust 2006-C1 | 5.862% | 5/12/39 | 25,162 | 25,313 |
3,5 | MMAF Equipment Finance LLC 2012-A | 2.570% | 6/9/33 | 8,570 | 8,613 |
3,5,6 | OZLM VI Ltd. | 1.865% | 4/17/26 | 38,280 | 38,196 |
3 | Santander Drive Auto Receivables Trust 2013-2 | 2.570% | 3/15/19 | 19,690 | 19,699 |
3 | Santander Drive Auto Receivables Trust 2014-2 | 2.330% | 11/15/19 | 12,545 | 12,583 |
5 | SBA Tower Trust | 2.898% | 10/15/19 | 46,310 | 45,650 |
3,5,6 | Seneca Park CLO Ltd. | 1.795% | 7/17/26 | 27,340 | 27,179 |
3,5,6 | SFAVE Commercial Mortgage Securities Trust 2015- | ||||
5AVE | 4.144% | 1/5/35 | 27,300 | 26,732 | |
3,5,6 | Shackleton CLO Ltd. | 1.795% | 7/17/26 | 26,765 | 26,606 |
3,5 | Springleaf Funding Trust | 2.410% | 12/15/22 | 45,080 | 45,036 |
3,5 | Springleaf Funding Trust | 3.160% | 11/15/24 | 53,215 | 53,419 |
3,5 | Springleaf Funding Trust 2015-B | 3.480% | 5/15/28 | 23,420 | 23,459 |
3,5 | Springleaf Mortgage Loan Trust 2013-1A | 2.310% | 6/25/58 | 8,330 | 8,227 |
3,5,6 | SYMP 14-14AA2 144A | 1.801% | 7/14/26 | 46,405 | 46,069 |
3,5,6 | Thacher Park CLO 2014-1 | 1.787% | 10/20/26 | 19,915 | 19,780 |
3 | Utility Debt Securitization Authority Series 2013T | 3.435% | 12/15/25 | 8,625 | 8,992 |
3,5,6 | Voya CLO 2014-2 Ltd. | 1.765% | 7/17/26 | 7,275 | 7,223 |
3,5 | Westlake Automobile Receivables Trust | 0.970% | 10/16/17 | 15,064 | 15,051 |
Total Asset-Backed/Commercial Mortgage-Backed Securities (Cost $1,507,581) | 1,496,295 | ||||
Corporate Bonds (22.5%) | |||||
Finance (9.0%) | |||||
Banking (6.8%) | |||||
American Express Centurion Bank | 6.000% | 9/13/17 | 20,000 | 21,524 | |
American Express Co. | 1.550% | 5/22/18 | 62,130 | 61,841 | |
American Express Credit Corp. | 2.375% | 3/24/17 | 71,985 | 72,965 | |
American Express Credit Corp. | 2.125% | 7/27/18 | 49,605 | 49,990 | |
American Express Credit Corp. | 2.250% | 8/15/19 | 30,200 | 30,256 | |
Bank of America Corp. | 6.050% | 5/16/16 | 70,000 | 71,453 | |
Bank of America Corp. | 6.400% | 8/28/17 | 23,000 | 24,844 | |
Bank of America Corp. | 6.000% | 9/1/17 | 69,725 | 74,740 | |
Bank of America Corp. | 5.750% | 12/1/17 | 30,000 | 32,274 | |
Bank of America Corp. | 6.875% | 4/25/18 | 40,000 | 44,523 | |
Bank of America Corp. | 5.625% | 7/1/20 | 4,550 | 5,112 | |
Bank of America Corp. | 5.875% | 1/5/21 | 40,000 | 45,617 | |
Bank of America Corp. | 3.300% | 1/11/23 | 24,005 | 23,985 | |
Bank of America Corp. | 4.100% | 7/24/23 | 6,735 | 7,039 | |
Bank of America Corp. | 4.125% | 1/22/24 | 26,100 | 27,183 | |
Bank of America Corp. | 4.000% | 1/22/25 | 32,900 | 32,593 | |
Bank of America Corp. | 5.875% | 2/7/42 | 9,965 | 11,839 | |
Bank of America Corp. | 5.000% | 1/21/44 | 39,433 | 42,178 | |
Bank of America Corp. | 4.875% | 4/1/44 | 7,110 | 7,501 | |
Bank of America NA | 5.300% | 3/15/17 | 68,000 | 71,100 | |
Bank of America NA | 6.000% | 10/15/36 | 30,000 | 36,285 |
4
Vanguard® Wellington Fund | ||||
Schedule of Investments | ||||
November 30, 2015 | ||||
Face | Market | |||
Maturity | Amount | Value | ||
Coupon | Date | ($000) | ($000) | |
Bank of Montreal | 2.500% | 1/11/17 | 79,535 | 80,808 |
Bank of New York Mellon Corp. | 2.150% | 2/24/20 | 61,325 | 60,840 |
Bank of New York Mellon Corp. | 3.000% | 2/24/25 | 27,990 | 27,516 |
Bank of Nova Scotia | 2.050% | 10/30/18 | 64,150 | 64,469 |
Bank of Nova Scotia | 2.800% | 7/21/21 | 25,650 | 25,848 |
5 Bank of Tokyo-Mitsubishi UFJ Ltd. | 1.700% | 3/5/18 | 54,260 | 53,887 |
5 Barclays Bank plc | 6.050% | 12/4/17 | 47,500 | 50,755 |
Barclays Bank plc | 2.500% | 2/20/19 | 31,800 | 32,172 |
Barclays Bank plc | 5.125% | 1/8/20 | 18,095 | 20,014 |
Barclays Bank plc | 5.140% | 10/14/20 | 11,905 | 13,043 |
Barclays Bank plc | 3.750% | 5/15/24 | 32,000 | 32,667 |
BB&T Corp. | 3.200% | 3/15/16 | 24,000 | 24,125 |
BB&T Corp. | 4.900% | 6/30/17 | 8,045 | 8,434 |
BB&T Corp. | 5.250% | 11/1/19 | 8,000 | 8,772 |
Bear Stearns Cos. LLC | 6.400% | 10/2/17 | 8,765 | 9,506 |
Bear Stearns Cos. LLC | 7.250% | 2/1/18 | 16,385 | 18,253 |
BNP Paribas SA | 2.400% | 12/12/18 | 53,700 | 54,291 |
BNP Paribas SA | 3.250% | 3/3/23 | 12,270 | 12,322 |
BPCE SA | 2.500% | 12/10/18 | 18,325 | 18,553 |
BPCE SA | 2.500% | 7/15/19 | 53,100 | 53,648 |
BPCE SA | 4.000% | 4/15/24 | 30,615 | 31,799 |
5 BPCE SA | 5.150% | 7/21/24 | 43,790 | 45,289 |
Capital One Bank USA NA | 2.150% | 11/21/18 | 45,055 | 44,910 |
Capital One Financial Corp. | 5.250% | 2/21/17 | 3,580 | 3,730 |
Capital One Financial Corp. | 4.750% | 7/15/21 | 18,835 | 20,458 |
Capital One Financial Corp. | 3.750% | 4/24/24 | 55,460 | 56,004 |
Capital One Financial Corp. | 3.200% | 2/5/25 | 33,400 | 32,203 |
Capital One Financial Corp. | 4.200% | 10/29/25 | 11,740 | 11,680 |
Citigroup Inc. | 6.125% | 11/21/17 | 64,960 | 70,468 |
Citigroup Inc. | 1.750% | 5/1/18 | 25,000 | 24,904 |
Citigroup Inc. | 6.125% | 5/15/18 | 9,500 | 10,429 |
Citigroup Inc. | 2.500% | 9/26/18 | 18,000 | 18,258 |
Citigroup Inc. | 2.550% | 4/8/19 | 55,000 | 55,569 |
Citigroup Inc. | 2.500% | 7/29/19 | 37,530 | 37,860 |
Citigroup Inc. | 2.400% | 2/18/20 | 65,200 | 64,869 |
Citigroup Inc. | 4.500% | 1/14/22 | 33,920 | 36,598 |
Citigroup Inc. | 6.625% | 6/15/32 | 45,000 | 53,622 |
Citigroup Inc. | 8.125% | 7/15/39 | 8,325 | 12,182 |
Citigroup Inc. | 5.875% | 1/30/42 | 1,290 | 1,511 |
Citigroup Inc. | 4.950% | 11/7/43 | 16,000 | 16,985 |
Citigroup Inc. | 5.300% | 5/6/44 | 23,950 | 25,228 |
Compass Bank | 2.750% | 9/29/19 | 15,105 | 14,981 |
Cooperatieve Centrale Raiffeisen-Boerenleenbank BA | 2.250% | 1/14/19 | 55,610 | 56,109 |
5 Credit Agricole SA | 2.500% | 4/15/19 | 57,830 | 58,293 |
Credit Suisse | 1.750% | 1/29/18 | 32,250 | 32,214 |
Credit Suisse | 2.300% | 5/28/19 | 109,260 | 109,744 |
Credit Suisse | 3.000% | 10/29/21 | 18,325 | 18,357 |
Credit Suisse | 3.625% | 9/9/24 | 4,885 | 4,915 |
5 Credit Suisse Group Funding Guernsey Ltd. | 3.800% | 9/15/22 | 55,260 | 55,610 |
5 Credit Suisse Group Funding Guernsey Ltd. | 3.750% | 3/26/25 | 67,850 | 66,368 |
Deutsche Bank AG | 2.500% | 2/13/19 | 55,800 | 56,311 |
Fifth Third Bank | 2.875% | 10/1/21 | 10,345 | 10,267 |
Goldman Sachs Group Inc. | 5.350% | 1/15/16 | 30,000 | 30,164 |
Goldman Sachs Group Inc. | 5.625% | 1/15/17 | 19,820 | 20,694 |
Goldman Sachs Group Inc. | 5.950% | 1/18/18 | 44,000 | 47,729 |
Goldman Sachs Group Inc. | 2.375% | 1/22/18 | 22,200 | 22,483 |
Goldman Sachs Group Inc. | 5.375% | 3/15/20 | 30,790 | 34,208 |
Goldman Sachs Group Inc. | 2.600% | 4/23/20 | 25,750 | 25,838 |
Goldman Sachs Group Inc. | 6.000% | 6/15/20 | 11,090 | 12,663 |
Goldman Sachs Group Inc. | 5.250% | 7/27/21 | 56,720 | 63,220 |
Goldman Sachs Group Inc. | 5.750% | 1/24/22 | 40,725 | 46,734 |
Goldman Sachs Group Inc. | 3.625% | 1/22/23 | 35,320 | 36,172 |
Goldman Sachs Group Inc. | 3.500% | 1/23/25 | 17,545 | 17,459 |
Goldman Sachs Group Inc. | 6.450% | 5/1/36 | 50,000 | 57,746 |
5
Vanguard® Wellington Fund | ||||
Schedule of Investments | ||||
November 30, 2015 | ||||
Face | Market | |||
Maturity | Amount | Value | ||
Coupon | Date | ($000) | ($000) | |
Goldman Sachs Group Inc. | 6.750% | 10/1/37 | 43,995 | 52,711 |
Goldman Sachs Group Inc. | 6.250% | 2/1/41 | 35,320 | 42,705 |
Goldman Sachs Group Inc. | 4.800% | 7/8/44 | 30,675 | 30,873 |
Goldman Sachs Group Inc. | 4.750% | 10/21/45 | 12,715 | 12,779 |
5 HSBC Bank plc | 4.750% | 1/19/21 | 62,040 | 68,149 |
HSBC Holdings plc | 4.000% | 3/30/22 | 72,455 | 76,329 |
HSBC Holdings plc | 6.500% | 5/2/36 | 25,000 | 30,272 |
HSBC Holdings plc | 6.100% | 1/14/42 | 40,665 | 51,337 |
HSBC Holdings plc | 5.250% | 3/14/44 | 13,210 | 13,935 |
HSBC USA Inc. | 1.625% | 1/16/18 | 39,500 | 39,387 |
HSBC USA Inc. | 2.625% | 9/24/18 | 20,000 | 20,338 |
HSBC USA Inc. | 2.350% | 3/5/20 | 71,330 | 70,879 |
HSBC USA Inc. | 3.500% | 6/23/24 | 40,000 | 40,315 |
Huntington National Bank | 2.200% | 4/1/19 | 22,280 | 22,119 |
Huntington National Bank | 2.400% | 4/1/20 | 44,990 | 44,392 |
5 ING Bank NV | 3.750% | 3/7/17 | 23,000 | 23,650 |
5 ING Bank NV | 1.800% | 3/16/18 | 36,610 | 36,526 |
JPMorgan Chase & Co. | 6.000% | 1/15/18 | 57,000 | 61,920 |
JPMorgan Chase & Co. | 6.300% | 4/23/19 | 10,340 | 11,707 |
JPMorgan Chase & Co. | 4.950% | 3/25/20 | 55,000 | 60,337 |
JPMorgan Chase & Co. | 4.350% | 8/15/21 | 41,386 | 44,500 |
JPMorgan Chase & Co. | 4.500% | 1/24/22 | 44,780 | 48,591 |
JPMorgan Chase & Co. | 3.250% | 9/23/22 | 18,645 | 18,834 |
JPMorgan Chase & Co. | 3.375% | 5/1/23 | 27,610 | 27,363 |
JPMorgan Chase & Co. | 3.875% | 2/1/24 | 39,000 | 40,612 |
JPMorgan Chase & Co. | 3.900% | 7/15/25 | 13,870 | 14,385 |
JPMorgan Chase & Co. | 4.125% | 12/15/26 | 29,835 | 30,183 |
JPMorgan Chase & Co. | 4.250% | 10/1/27 | 13,420 | 13,477 |
JPMorgan Chase & Co. | 5.600% | 7/15/41 | 96,000 | 112,638 |
JPMorgan Chase & Co. | 5.400% | 1/6/42 | 18,035 | 20,700 |
JPMorgan Chase & Co. | 5.625% | 8/16/43 | 16,100 | 17,758 |
JPMorgan Chase & Co. | 4.950% | 6/1/45 | 15,000 | 15,191 |
5 Macquarie Bank Ltd. | 2.400% | 1/21/20 | 12,610 | 12,526 |
Manufacturers & Traders Trust Co. | 2.100% | 2/6/20 | 17,870 | 17,513 |
Manufacturers & Traders Trust Co. | 2.900% | 2/6/25 | 24,685 | 24,036 |
Morgan Stanley | 5.450% | 1/9/17 | 70,000 | 73,105 |
Morgan Stanley | 1.875% | 1/5/18 | 9,470 | 9,507 |
Morgan Stanley | 2.125% | 4/25/18 | 52,125 | 52,467 |
Morgan Stanley | 2.500% | 1/24/19 | 100,000 | 101,614 |
Morgan Stanley | 5.625% | 9/23/19 | 24,355 | 27,122 |
Morgan Stanley | 5.750% | 1/25/21 | 79,825 | 91,001 |
Morgan Stanley | 3.875% | 4/29/24 | 97,010 | 100,044 |
Morgan Stanley | 3.700% | 10/23/24 | 29,050 | 29,505 |
Morgan Stanley | 4.000% | 7/23/25 | 29,455 | 30,496 |
Morgan Stanley | 6.250% | 8/9/26 | 20,000 | 23,835 |
Morgan Stanley | 4.300% | 1/27/45 | 18,360 | 17,918 |
National City Corp. | 6.875% | 5/15/19 | 13,950 | 15,877 |
5 Nationwide Building Society | 2.350% | 1/21/20 | 28,075 | 27,996 |
Northern Trust Corp. | 3.450% | 11/4/20 | 9,000 | 9,454 |
PNC Bank NA | 4.875% | 9/21/17 | 50,000 | 52,654 |
PNC Bank NA | 3.300% | 10/30/24 | 18,195 | 18,345 |
PNC Bank NA | 4.200% | 11/1/25 | 16,650 | 17,643 |
PNC Financial Services Group Inc. | 3.900% | 4/29/24 | 41,565 | 42,422 |
Santander Bank NA | 2.000% | 1/12/18 | 25,901 | 25,830 |
Santander Holdings USA Inc. | 2.650% | 4/17/20 | 23,185 | 22,910 |
Santander Issuances SAU | 5.179% | 11/19/25 | 29,800 | 29,951 |
5 Skandinaviska Enskilda Banken AB | 2.450% | 5/27/20 | 61,300 | 61,297 |
State Street Corp. | 5.375% | 4/30/17 | 76,315 | 80,628 |
Svenska Handelsbanken AB | 2.875% | 4/4/17 | 40,000 | 40,826 |
Synchrony Financial | 3.000% | 8/15/19 | 10,990 | 11,048 |
Synchrony Financial | 2.700% | 2/3/20 | 15,605 | 15,346 |
UBS AG | 5.875% | 12/20/17 | 15,945 | 17,231 |
UBS AG | 1.800% | 3/26/18 | 34,055 | 34,029 |
UBS AG | 4.875% | 8/4/20 | 8,000 | 8,848 |
6
Vanguard® Wellington Fund | ||||
Schedule of Investments | ||||
November 30, 2015 | ||||
Face | Market | |||
Maturity | Amount | Value | ||
Coupon | Date | ($000) | ($000) | |
5 UBS Group Funding Jersey Ltd. | 2.950% | 9/24/20 | 44,570 | 44,606 |
US Bancorp | 3.700% | 1/30/24 | 52,500 | 55,129 |
Wells Fargo & Co. | 2.625% | 12/15/16 | 23,275 | 23,660 |
Wells Fargo & Co. | 5.625% | 12/11/17 | 31,150 | 33,634 |
Wells Fargo & Co. | 2.150% | 1/15/19 | 91,150 | 91,732 |
Wells Fargo & Co. | 2.150% | 1/30/20 | 58,180 | 57,955 |
Wells Fargo & Co. | 3.000% | 1/22/21 | 26,735 | 27,340 |
Wells Fargo & Co. | 3.500% | 3/8/22 | 64,245 | 66,649 |
Wells Fargo & Co. | 3.450% | 2/13/23 | 61,885 | 61,988 |
Wells Fargo & Co. | 4.480% | 1/16/24 | 46,156 | 48,716 |
Wells Fargo & Co. | 3.550% | 9/29/25 | 32,170 | 32,427 |
Wells Fargo & Co. | 5.606% | 1/15/44 | 68,281 | 76,289 |
Wells Fargo & Co. | 4.650% | 11/4/44 | 10,315 | 10,077 |
Wells Fargo & Co. | 4.900% | 11/17/45 | 19,160 | 19,346 |
Brokerage (0.0%) | ||||
Ameriprise Financial Inc. | 5.300% | 3/15/20 | 11,590 | 12,961 |
Finance Companies (0.6%) | ||||
5 GE Capital International Funding Corp. | 2.342% | 11/15/20 | 89,662 | 89,346 |
5 GE Capital International Funding Corp. | 3.373% | 11/15/25 | 111,589 | 112,810 |
General Electric Capital Corp. | 4.625% | 1/7/21 | 22,598 | 25,021 |
General Electric Capital Corp. | 5.300% | 2/11/21 | 8,833 | 10,081 |
General Electric Capital Corp. | 3.150% | 9/7/22 | 34,079 | 35,120 |
General Electric Capital Corp. | 3.100% | 1/9/23 | 8,635 | 8,849 |
General Electric Capital Corp. | 6.750% | 3/15/32 | 3,986 | 5,216 |
5 General Electric Capital Corp. | 4.418% | 11/15/35 | 159,635 | 163,939 |
General Electric Capital Corp. | 6.150% | 8/7/37 | 17,093 | 21,668 |
General Electric Capital Corp. | 5.875% | 1/14/38 | 19,160 | 23,538 |
General Electric Capital Corp. | 6.875% | 1/10/39 | 7,834 | 10,729 |
Insurance (1.5%) | ||||
ACE Capital Trust II | 9.700% | 4/1/30 | 20,000 | 29,250 |
ACE INA Holdings Inc. | 5.800% | 3/15/18 | 40,360 | 44,037 |
ACE INA Holdings Inc. | 2.300% | 11/3/20 | 6,330 | 6,293 |
ACE INA Holdings Inc. | 3.350% | 5/15/24 | 22,345 | 22,586 |
ACE INA Holdings Inc. | 3.350% | 5/3/26 | 14,835 | 14,779 |
ACE INA Holdings Inc. | 4.350% | 11/3/45 | 29,835 | 29,893 |
Aetna Inc. | 1.750% | 5/15/17 | 2,636 | 2,643 |
3 Allstate Corp. | 6.125% | 5/15/67 | 30,000 | 30,412 |
3 Allstate Corp. | 6.500% | 5/15/67 | 20,000 | 22,200 |
Anthem Inc. | 2.300% | 7/15/18 | 15,110 | 15,139 |
Anthem Inc. | 3.700% | 8/15/21 | 10,000 | 10,218 |
Anthem Inc. | 3.125% | 5/15/22 | 53,740 | 53,064 |
Anthem Inc. | 3.300% | 1/15/23 | 42,468 | 41,928 |
Anthem Inc. | 4.650% | 8/15/44 | 10,695 | 10,288 |
Chubb Corp. | 6.000% | 5/11/37 | 50,000 | 61,202 |
Cigna Corp. | 3.250% | 4/15/25 | 52,030 | 50,498 |
CNA Financial Corp. | 3.950% | 5/15/24 | 5,410 | 5,413 |
5 Farmers Exchange Capital | 7.050% | 7/15/28 | 25,000 | 30,137 |
5 Five Corners Funding Trust | 4.419% | 11/15/23 | 5,935 | 6,242 |
5 Jackson National Life Insurance Co. | 8.150% | 3/15/27 | 18,890 | 24,636 |
5 Liberty Mutual Group Inc. | 4.250% | 6/15/23 | 14,330 | 14,633 |
5 Liberty Mutual Insurance Co. | 7.875% | 10/15/26 | 31,210 | 38,004 |
Loews Corp. | 2.625% | 5/15/23 | 7,120 | 6,781 |
5 MassMutual Global Funding II | 2.100% | 8/2/18 | 46,890 | 47,238 |
5 MassMutual Global Funding II | 2.350% | 4/9/19 | 28,000 | 28,218 |
MetLife Inc. | 1.903% | 12/15/17 | 9,010 | 9,064 |
MetLife Inc. | 3.600% | 4/10/24 | 35,035 | 35,839 |
MetLife Inc. | 4.125% | 8/13/42 | 5,565 | 5,302 |
MetLife Inc. | 4.875% | 11/13/43 | 20,820 | 21,924 |
5 Metropolitan Life Global Funding I | 1.500% | 1/10/18 | 50,360 | 50,232 |
5 Metropolitan Life Global Funding I | 1.875% | 6/22/18 | 12,690 | 12,716 |
5 New York Life Global Funding | 1.650% | 5/15/17 | 44,000 | 44,264 |
5 New York Life Insurance Co. | 5.875% | 5/15/33 | 55,395 | 65,890 |
7
Vanguard® Wellington Fund | ||||
Schedule of Investments | ||||
November 30, 2015 | ||||
Face | Market | |||
Maturity | Amount | Value | ||
Coupon | Date | ($000) | ($000) | |
Prudential Financial Inc. | 3.000% | 5/12/16 | 6,000 | 6,056 |
Prudential Financial Inc. | 2.300% | 8/15/18 | 24,545 | 24,781 |
Prudential Financial Inc. | 4.500% | 11/15/20 | 34,365 | 37,134 |
5 QBE Insurance Group Ltd. | 2.400% | 5/1/18 | 9,160 | 9,159 |
5 Teachers Insurance & Annuity Association of America | 4.900% | 9/15/44 | 14,830 | 15,347 |
Torchmark Corp. | 7.875% | 5/15/23 | 45,000 | 55,930 |
Travelers Cos. Inc. | 5.800% | 5/15/18 | 32,500 | 35,731 |
UnitedHealth Group Inc. | 6.000% | 6/15/17 | 9,500 | 10,171 |
UnitedHealth Group Inc. | 6.000% | 2/15/18 | 26,300 | 28,675 |
UnitedHealth Group Inc. | 3.875% | 10/15/20 | 27,960 | 29,793 |
UnitedHealth Group Inc. | 2.875% | 3/15/22 | 4,696 | 4,740 |
UnitedHealth Group Inc. | 2.875% | 3/15/23 | 16,000 | 15,877 |
UnitedHealth Group Inc. | 4.625% | 7/15/35 | 32,330 | 34,073 |
UnitedHealth Group Inc. | 4.250% | 3/15/43 | 67,400 | 66,665 |
UnitedHealth Group Inc. | 4.750% | 7/15/45 | 30,995 | 32,579 |
Other Finance (0.0%) | ||||
5 LeasePlan Corp. NV | 2.875% | 1/22/19 | 24,670 | 24,416 |
Real Estate Investment Trusts (0.1%) | ||||
AvalonBay Communities Inc. | 3.625% | 10/1/20 | 20,780 | 21,681 |
Duke Realty LP | 6.500% | 1/15/18 | 8,160 | 8,876 |
HCP Inc. | 3.750% | 2/1/16 | 7,950 | 7,988 |
Realty Income Corp. | 6.750% | 8/15/19 | 21,075 | 24,043 |
Realty Income Corp. | 4.650% | 8/1/23 | 25,010 | 26,269 |
5 WEA Finance LLC / Westfield UK & Europe Finance plc | 1.750% | 9/15/17 | 14,730 | 14,635 |
5 WEA Finance LLC / Westfield UK & Europe Finance plc | 2.700% | 9/17/19 | 22,360 | 22,250 |
8,012,174 | ||||
Industrial (11.6%) | ||||
Basic Industry (0.3%) | ||||
BHP Billiton Finance USA Ltd. | 7.250% | 3/1/16 | 15,000 | 15,222 |
BHP Billiton Finance USA Ltd. | 3.850% | 9/30/23 | 39,680 | 39,247 |
CF Industries Inc. | 5.375% | 3/15/44 | 36,165 | 33,809 |
LyondellBasell Industries NV | 4.625% | 2/26/55 | 34,730 | 29,609 |
Monsanto Co. | 4.700% | 7/15/64 | 8,775 | 7,350 |
Rio Tinto Alcan Inc. | 7.250% | 3/15/31 | 3,493 | 4,258 |
Rio Tinto Finance USA Ltd. | 6.500% | 7/15/18 | 37,000 | 40,712 |
Rio Tinto Finance USA Ltd. | 3.750% | 9/20/21 | 11,700 | 11,913 |
Rio Tinto Finance USA plc | 2.000% | 3/22/17 | 8,095 | 8,099 |
Rio Tinto Finance USA plc | 2.250% | 12/14/18 | 38,500 | 38,206 |
Rio Tinto Finance USA plc | 3.500% | 3/22/22 | 12,385 | 12,210 |
3 Rohm and Haas Holdings Ltd. | 9.800% | 4/15/20 | 3,375 | 3,835 |
Capital Goods (1.0%) | ||||
3M Co. | 6.375% | 2/15/28 | 24,990 | 32,470 |
Boeing Co. | 8.625% | 11/15/31 | 9,460 | 13,953 |
Caterpillar Financial Services Corp. | 1.625% | 6/1/17 | 25,220 | 25,370 |
Caterpillar Financial Services Corp. | 2.625% | 3/1/23 | 53,000 | 50,932 |
Caterpillar Inc. | 3.900% | 5/27/21 | 51,914 | 55,093 |
Caterpillar Inc. | 2.600% | 6/26/22 | 11,345 | 11,201 |
Caterpillar Inc. | 3.400% | 5/15/24 | 24,200 | 24,586 |
Caterpillar Inc. | 3.803% | 8/15/42 | 13,960 | 12,500 |
Caterpillar Inc. | 4.300% | 5/15/44 | 26,035 | 25,252 |
Deere & Co. | 7.125% | 3/3/31 | 17,500 | 22,921 |
General Dynamics Corp. | 3.875% | 7/15/21 | 14,925 | 15,824 |
General Electric Co. | 5.250% | 12/6/17 | 11,685 | 12,597 |
General Electric Co. | 2.700% | 10/9/22 | 29,000 | 29,139 |
General Electric Co. | 4.125% | 10/9/42 | 8,735 | 8,522 |
General Electric Co. | 4.500% | 3/11/44 | 43,750 | 45,185 |
Honeywell International Inc. | 4.250% | 3/1/21 | 40,681 | 44,702 |
Illinois Tool Works Inc. | 3.500% | 3/1/24 | 52,955 | 54,511 |
John Deere Capital Corp. | 2.250% | 4/17/19 | 28,125 | 28,438 |
John Deere Capital Corp. | 1.700% | 1/15/20 | 21,935 | 21,448 |
Lockheed Martin Corp. | 2.500% | 11/23/20 | 14,725 | 14,758 |
8
Vanguard® Wellington Fund | ||||
Schedule of Investments | ||||
November 30, 2015 | ||||
Face | Market | |||
Maturity | Amount | Value | ||
Coupon | Date | ($000) | ($000) | |
Lockheed Martin Corp. | 2.900% | 3/1/25 | 10,450 | 10,052 |
Lockheed Martin Corp. | 4.500% | 5/15/36 | 8,015 | 8,146 |
Lockheed Martin Corp. | 4.700% | 5/15/46 | 19,870 | 20,365 |
Parker-Hannifin Corp. | 4.450% | 11/21/44 | 17,735 | 18,633 |
5 Siemens Financieringsmaatschappij NV | 5.750% | 10/17/16 | 89,650 | 93,339 |
5 Siemens Financieringsmaatschappij NV | 2.900% | 5/27/22 | 30,800 | 30,995 |
5 Siemens Financieringsmaatschappij NV | 4.400% | 5/27/45 | 34,365 | 35,230 |
United Technologies Corp. | 3.100% | 6/1/22 | 7,010 | 7,150 |
United Technologies Corp. | 7.500% | 9/15/29 | 19,230 | 26,623 |
United Technologies Corp. | 6.050% | 6/1/36 | 20,325 | 24,736 |
United Technologies Corp. | 6.125% | 7/15/38 | 45,000 | 55,690 |
Communication (2.1%) | ||||
21st Century Fox America Inc. | 4.500% | 2/15/21 | 14,500 | 15,669 |
21st Century Fox America Inc. | 3.000% | 9/15/22 | 11,891 | 11,809 |
America Movil SAB de CV | 3.125% | 7/16/22 | 84,600 | 83,659 |
America Movil SAB de CV | 4.375% | 7/16/42 | 20,430 | 18,732 |
American Tower Corp. | 3.450% | 9/15/21 | 30,665 | 30,820 |
AT&T Inc. | 1.600% | 2/15/17 | 38,000 | 38,153 |
AT&T Inc. | 1.400% | 12/1/17 | 18,715 | 18,693 |
AT&T Inc. | 5.600% | 5/15/18 | 44,000 | 48,030 |
AT&T Inc. | 2.300% | 3/11/19 | 25,775 | 26,132 |
AT&T Inc. | 4.450% | 5/15/21 | 10,000 | 10,734 |
AT&T Inc. | 6.450% | 6/15/34 | 33,115 | 37,837 |
AT&T Inc. | 4.500% | 5/15/35 | 6,110 | 5,763 |
CBS Corp. | 4.300% | 2/15/21 | 27,830 | 28,998 |
Comcast Corp. | 2.850% | 1/15/23 | 9,760 | 9,802 |
Comcast Corp. | 3.600% | 3/1/24 | 22,230 | 23,143 |
Comcast Corp. | 4.250% | 1/15/33 | 42,890 | 42,950 |
Comcast Corp. | 4.200% | 8/15/34 | 23,435 | 23,230 |
Comcast Corp. | 5.650% | 6/15/35 | 4,725 | 5,515 |
Comcast Corp. | 4.400% | 8/15/35 | 26,835 | 27,195 |
Comcast Corp. | 6.500% | 11/15/35 | 4,720 | 5,992 |
Comcast Corp. | 6.400% | 5/15/38 | 4,320 | 5,502 |
Comcast Corp. | 4.650% | 7/15/42 | 47,970 | 49,699 |
Comcast Corp. | 4.500% | 1/15/43 | 22,000 | 22,352 |
Comcast Corp. | 4.750% | 3/1/44 | 22,875 | 24,130 |
Comcast Corp. | 4.600% | 8/15/45 | 32,640 | 33,780 |
5 Cox Communications Inc. | 4.800% | 2/1/35 | 30,000 | 25,451 |
5 Deutsche Telekom International Finance BV | 2.250% | 3/6/17 | 15,785 | 15,924 |
5 Deutsche Telekom International Finance BV | 4.875% | 3/6/42 | 27,715 | 28,958 |
DIRECTV Holdings LLC / DIRECTV Financing Co. Inc. | 1.750% | 1/15/18 | 23,605 | 23,564 |
DIRECTV Holdings LLC / DIRECTV Financing Co. Inc. | 5.200% | 3/15/20 | 10,120 | 11,080 |
DIRECTV Holdings LLC / DIRECTV Financing Co. Inc. | 4.600% | 2/15/21 | 5,000 | 5,360 |
Discovery Communications LLC | 5.625% | 8/15/19 | 10,635 | 11,628 |
Discovery Communications LLC | 5.050% | 6/1/20 | 8,365 | 8,971 |
Grupo Televisa SAB | 6.625% | 1/15/40 | 25,090 | 27,143 |
Grupo Televisa SAB | 5.000% | 5/13/45 | 6,100 | 5,338 |
Grupo Televisa SAB | 6.125% | 1/31/46 | 12,550 | 12,854 |
5 GTP Acquisition Partners I LLC | 2.350% | 6/15/20 | 22,530 | 22,120 |
5 NBCUniversal Enterprise Inc. | 1.662% | 4/15/18 | 76,135 | 76,344 |
5 NBCUniversal Enterprise Inc. | 1.974% | 4/15/19 | 100,115 | 100,416 |
NBCUniversal Media LLC | 4.375% | 4/1/21 | 23,900 | 26,145 |
Orange SA | 4.125% | 9/14/21 | 60,990 | 65,101 |
Orange SA | 9.000% | 3/1/31 | 13,360 | 19,248 |
5 SBA Tower Trust | 2.933% | 12/15/17 | 33,310 | 33,512 |
5 Sky plc | 2.625% | 9/16/19 | 38,021 | 38,016 |
5 Sky plc | 3.750% | 9/16/24 | 45,046 | 44,791 |
Time Warner Cable Inc. | 5.850% | 5/1/17 | 34,980 | 36,679 |
Time Warner Cable Inc. | 8.750% | 2/14/19 | 1,120 | 1,308 |
Time Warner Cable Inc. | 8.250% | 4/1/19 | 14,433 | 16,705 |
Time Warner Cos. Inc. | 7.570% | 2/1/24 | 20,000 | 24,688 |
Time Warner Cos. Inc. | 6.950% | 1/15/28 | 20,000 | 24,446 |
Time Warner Entertainment Co. LP | 8.375% | 3/15/23 | 3,925 | 4,859 |
9
Vanguard® Wellington Fund | ||||
Schedule of Investments | ||||
November 30, 2015 | ||||
Face | Market | |||
Maturity | Amount | Value | ||
Coupon | Date | ($000) | ($000) | |
Time Warner Inc. | 4.875% | 3/15/20 | 14,000 | 15,300 |
Time Warner Inc. | 4.750% | 3/29/21 | 8,000 | 8,679 |
Verizon Communications Inc. | 4.500% | 9/15/20 | 95,525 | 103,541 |
Verizon Communications Inc. | 3.450% | 3/15/21 | 19,600 | 20,181 |
Verizon Communications Inc. | 3.500% | 11/1/21 | 5,495 | 5,645 |
Verizon Communications Inc. | 6.400% | 9/15/33 | 79,665 | 93,128 |
Verizon Communications Inc. | 5.850% | 9/15/35 | 49,525 | 54,520 |
Verizon Communications Inc. | 6.900% | 4/15/38 | 9,710 | 11,865 |
Verizon Communications Inc. | 4.750% | 11/1/41 | 11,880 | 11,305 |
Verizon Communications Inc. | 6.550% | 9/15/43 | 53,045 | 63,787 |
Verizon Communications Inc. | 4.862% | 8/21/46 | 78,107 | 76,083 |
Viacom Inc. | 6.125% | 10/5/17 | 7,500 | 8,026 |
Walt Disney Co. | 4.125% | 6/1/44 | 23,115 | 23,611 |
Consumer Cyclical (1.7%) | ||||
5 Alibaba Group Holding Ltd. | 2.500% | 11/28/19 | 12,965 | 12,732 |
5 Alibaba Group Holding Ltd. | 3.125% | 11/28/21 | 2,515 | 2,463 |
Amazon.com Inc. | 2.500% | 11/29/22 | 34,760 | 33,987 |
Amazon.com Inc. | 4.800% | 12/5/34 | 19,395 | 20,418 |
Amazon.com Inc. | 4.950% | 12/5/44 | 25,020 | 26,216 |
5 American Honda Finance Corp. | 1.500% | 9/11/17 | 18,760 | 18,756 |
5 American Honda Finance Corp. | 1.600% | 2/16/18 | 30,845 | 30,770 |
American Honda Finance Corp. | 2.125% | 10/10/18 | 45,655 | 46,189 |
AutoZone Inc. | 3.700% | 4/15/22 | 46,136 | 47,419 |
AutoZone Inc. | 3.125% | 7/15/23 | 33,000 | 32,432 |
CVS Health Corp. | 5.750% | 6/1/17 | 7,891 | 8,403 |
CVS Health Corp. | 2.750% | 12/1/22 | 50,000 | 48,713 |
CVS Health Corp. | 4.875% | 7/20/35 | 43,800 | 45,818 |
CVS Health Corp. | 5.125% | 7/20/45 | 51,085 | 54,723 |
5 Daimler Finance North America LLC | 2.375% | 8/1/18 | 35,000 | 35,136 |
5 Daimler Finance North America LLC | 2.250% | 7/31/19 | 73,100 | 72,618 |
5 Daimler Finance North America LLC | 2.450% | 5/18/20 | 2,740 | 2,704 |
5 Daimler Finance North America LLC | 3.875% | 9/15/21 | 3,961 | 4,123 |
Daimler Finance North America LLC | 8.500% | 1/18/31 | 33,000 | 47,882 |
eBay Inc. | 1.350% | 7/15/17 | 12,580 | 12,494 |
Ford Motor Credit Co. LLC | 2.375% | 3/12/19 | 70,000 | 69,014 |
Ford Motor Credit Co. LLC | 3.157% | 8/4/20 | 37,845 | 37,860 |
Home Depot Inc. | 2.250% | 9/10/18 | 39,555 | 40,625 |
Home Depot Inc. | 2.700% | 4/1/23 | 31,170 | 31,060 |
Home Depot Inc. | 4.400% | 3/15/45 | 28,655 | 29,771 |
Johnson Controls Inc. | 7.125% | 7/15/17 | 36,300 | 39,189 |
Lowe's Cos. Inc. | 6.875% | 2/15/28 | 5,790 | 7,389 |
Lowe's Cos. Inc. | 6.500% | 3/15/29 | 39,900 | 49,756 |
Lowe's Cos. Inc. | 5.500% | 10/15/35 | 20,000 | 23,306 |
Lowe's Cos. Inc. | 6.650% | 9/15/37 | 25,905 | 33,679 |
McDonald's Corp. | 2.625% | 1/15/22 | 7,805 | 7,663 |
McDonald's Corp. | 3.250% | 6/10/24 | 5,460 | 5,403 |
5 Nissan Motor Acceptance Corp. | 1.950% | 9/12/17 | 44,895 | 45,042 |
5 Nissan Motor Acceptance Corp. | 1.800% | 3/15/18 | 46,400 | 46,314 |
5 Nissan Motor Acceptance Corp. | 2.650% | 9/26/18 | 24,990 | 25,402 |
PACCAR Financial Corp. | 1.600% | 3/15/17 | 39,311 | 39,535 |
Target Corp. | 2.900% | 1/15/22 | 12,300 | 12,596 |
Toyota Motor Credit Corp. | 1.750% | 5/22/17 | 47,000 | 47,436 |
Toyota Motor Credit Corp. | 1.250% | 10/5/17 | 35,945 | 35,924 |
5 Volkswagen Group of America Finance LLC | 2.450% | 11/20/19 | 16,935 | 15,800 |
Wal-Mart Stores Inc. | 3.250% | 10/25/20 | 25,754 | 27,357 |
Wal-Mart Stores Inc. | 4.250% | 4/15/21 | 29,000 | 32,100 |
Wal-Mart Stores Inc. | 2.550% | 4/11/23 | 38,325 | 37,734 |
Wal-Mart Stores Inc. | 5.625% | 4/15/41 | 112,595 | 135,529 |
Wal-Mart Stores Inc. | 4.300% | 4/22/44 | 20,480 | 20,892 |
Consumer Noncyclical (3.7%) | ||||
AbbVie Inc. | 1.750% | 11/6/17 | 31,160 | 31,272 |
AbbVie Inc. | 2.000% | 11/6/18 | 37,390 | 37,503 |
Actavis Funding SCS | 3.000% | 3/12/20 | 18,480 | 18,739 |
10
Vanguard® Wellington Fund | |||||
Schedule of Investments | |||||
November 30, 2015 | |||||
Face | Market | ||||
Maturity | Amount | Value | |||
Coupon | Date | ($000) | ($000) | ||
Actavis Funding SCS | 3.450% | 3/15/22 | 33,005 | 33,446 | |
Actavis Funding SCS | 4.850% | 6/15/44 | 18,000 | 18,113 | |
Altria Group Inc. | 4.750% | 5/5/21 | 23,376 | 25,566 | |
Altria Group Inc. | 2.850% | 8/9/22 | 18,810 | 18,479 | |
Altria Group Inc. | 4.500% | 5/2/43 | 16,890 | 15,954 | |
AmerisourceBergen Corp. | 3.500% | 11/15/21 | 12,320 | 12,612 | |
Amgen Inc. | 3.875% | 11/15/21 | 33,315 | 35,039 | |
Amgen Inc. | 5.150% | 11/15/41 | 36,380 | 36,912 | |
Anheuser-Busch Cos. LLC | 5.000% | 3/1/19 | 13,000 | 14,039 | |
Anheuser-Busch Cos. LLC | 6.500% | 1/1/28 | 19,550 | 23,317 | |
Anheuser-Busch InBev Worldwide Inc. | 5.375% | 1/15/20 | 37,010 | 41,191 | |
Anheuser-Busch InBev Worldwide Inc. | 4.375% | 2/15/21 | 3,120 | 3,399 | |
Anheuser-Busch InBev Worldwide Inc. | 2.500% | 7/15/22 | 141,996 | 137,073 | |
Anheuser-Busch InBev Worldwide Inc. | 3.750% | 7/15/42 | 19,610 | 17,318 | |
3 | Ascension Health | 4.847% | 11/15/53 | 44,750 | 48,781 |
AstraZeneca plc | 1.950% | 9/18/19 | 12,065 | 12,078 | |
AstraZeneca plc | 2.375% | 11/16/20 | 44,480 | 44,384 | |
AstraZeneca plc | 6.450% | 9/15/37 | 23,385 | 30,214 | |
AstraZeneca plc | 4.375% | 11/16/45 | 30,240 | 30,018 | |
3,5,6 | Avery 2014 A 144A | 1.840% | 4/25/26 | 46,220 | 46,031 |
5 | BAT International Finance plc | 2.750% | 6/15/20 | 21,250 | 21,594 |
5 | BAT International Finance plc | 3.250% | 6/7/22 | 58,280 | 59,126 |
5 | BAT International Finance plc | 3.500% | 6/15/22 | 8,980 | 9,238 |
5 | Baxalta Inc. | 5.250% | 6/23/45 | 15,200 | 15,227 |
5 | Bayer US Finance LLC | 2.375% | 10/8/19 | 7,510 | 7,562 |
5 | Bayer US Finance LLC | 3.000% | 10/8/21 | 46,850 | 47,322 |
5 | Bayer US Finance LLC | 3.375% | 10/8/24 | 11,700 | 11,764 |
Biogen Inc. | 2.900% | 9/15/20 | 21,115 | 21,160 | |
Bristol-Myers Squibb Co. | 3.250% | 11/1/23 | 40,790 | 42,369 | |
Cardinal Health Inc. | 1.700% | 3/15/18 | 2,585 | 2,576 | |
Cardinal Health Inc. | 2.400% | 11/15/19 | 27,350 | 27,441 | |
Cardinal Health Inc. | 3.200% | 3/15/23 | 13,035 | 12,873 | |
Cardinal Health Inc. | 3.500% | 11/15/24 | 24,705 | 24,642 | |
Cardinal Health Inc. | 4.500% | 11/15/44 | 28,805 | 27,642 | |
5 | Cargill Inc. | 6.000% | 11/27/17 | 25,000 | 27,026 |
5 | Cargill Inc. | 4.307% | 5/14/21 | 60,532 | 65,233 |
5 | Cargill Inc. | 6.875% | 5/1/28 | 19,355 | 23,829 |
5 | Cargill Inc. | 4.760% | 11/23/45 | 35,615 | 35,739 |
Catholic Health Initiatives Colorado GO | 1.600% | 11/1/17 | 2,140 | 2,132 | |
Catholic Health Initiatives Colorado GO | 2.600% | 8/1/18 | 9,745 | 9,872 | |
3 | Catholic Health Initiatives Colorado GO | 4.350% | 11/1/42 | 17,905 | 16,747 |
Celgene Corp. | 2.250% | 5/15/19 | 6,565 | 6,565 | |
Celgene Corp. | 3.550% | 8/15/22 | 18,400 | 18,638 | |
Coca-Cola Co. | 3.300% | 9/1/21 | 10,075 | 10,586 | |
Coca-Cola Enterprises Inc. | 3.500% | 9/15/20 | 9,900 | 10,288 | |
Coca-Cola Enterprises Inc. | 4.500% | 9/1/21 | 8,430 | 9,023 | |
Coca-Cola Femsa SAB de CV | 2.375% | 11/26/18 | 30,936 | 30,860 | |
Coca-Cola Femsa SAB de CV | 3.875% | 11/26/23 | 34,200 | 34,816 | |
Colgate-Palmolive Co. | 7.600% | 5/19/25 | 13,920 | 18,334 | |
ConAgra Foods Inc. | 1.900% | 1/25/18 | 7,205 | 7,174 | |
Diageo Capital plc | 2.625% | 4/29/23 | 48,310 | 47,042 | |
Diageo Investment Corp. | 2.875% | 5/11/22 | 26,991 | 26,899 | |
Dignity Health California GO | 2.637% | 11/1/19 | 5,595 | 5,638 | |
Dignity Health California GO | 3.812% | 11/1/24 | 11,415 | 11,691 | |
Eli Lilly & Co. | 3.700% | 3/1/45 | 24,450 | 22,799 | |
5 | EMD Finance LLC | 2.950% | 3/19/22 | 23,660 | 23,006 |
5 | EMD Finance LLC | 3.250% | 3/19/25 | 47,000 | 45,050 |
Express Scripts Holding Co. | 2.650% | 2/15/17 | 43,711 | 44,248 | |
Express Scripts Holding Co. | 2.250% | 6/15/19 | 23,100 | 22,990 | |
Express Scripts Holding Co. | 4.750% | 11/15/21 | 23,400 | 25,283 | |
5 | Forest Laboratories Inc. | 4.875% | 2/15/21 | 9,000 | 9,810 |
6 | General Mills Inc. | 6.390% | 2/5/23 | 50,000 | 57,753 |
Gilead Sciences Inc. | 2.550% | 9/1/20 | 26,330 | 26,563 | |
Gilead Sciences Inc. | 3.700% | 4/1/24 | 26,895 | 27,567 |
11
Vanguard® Wellington Fund | ||||
Schedule of Investments | ||||
November 30, 2015 | ||||
Face | Market | |||
Maturity | Amount | Value | ||
Coupon | Date | ($000) | ($000) | |
Gilead Sciences Inc. | 3.500% | 2/1/25 | 22,335 | 22,451 |
Gilead Sciences Inc. | 4.500% | 2/1/45 | 27,480 | 26,875 |
GlaxoSmithKline Capital Inc. | 2.800% | 3/18/23 | 31,740 | 31,733 |
GlaxoSmithKline Capital Inc. | 5.375% | 4/15/34 | 45,000 | 51,110 |
GlaxoSmithKline Capital plc | 2.850% | 5/8/22 | 28,930 | 29,196 |
5 Grupo Bimbo SAB de CV | 3.875% | 6/27/24 | 19,505 | 19,117 |
5 Heineken NV | 1.400% | 10/1/17 | 8,150 | 8,138 |
5 Heineken NV | 2.750% | 4/1/23 | 15,175 | 14,758 |
5 Heineken NV | 4.000% | 10/1/42 | 1,390 | 1,239 |
5 Imperial Tobacco Finance plc | 3.750% | 7/21/22 | 20,495 | 20,779 |
5 Japan Tobacco Inc. | 2.100% | 7/23/18 | 22,200 | 22,261 |
Johnson & Johnson | 5.150% | 7/15/18 | 14,800 | 16,268 |
Kaiser Foundation Hospitals | 3.500% | 4/1/22 | 20,786 | 21,340 |
Kaiser Foundation Hospitals | 4.875% | 4/1/42 | 13,940 | 14,331 |
Kraft Foods Group Inc. | 2.250% | 6/5/17 | 11,390 | 11,527 |
5 Kraft Heinz Foods Co. | 5.000% | 7/15/35 | 8,940 | 9,225 |
5 Kraft Heinz Foods Co. | 5.200% | 7/15/45 | 9,955 | 10,438 |
Kroger Co. | 3.300% | 1/15/21 | 16,485 | 16,764 |
Kroger Co. | 3.850% | 8/1/23 | 10,770 | 11,151 |
Kroger Co. | 4.000% | 2/1/24 | 22,290 | 23,134 |
McKesson Corp. | 3.250% | 3/1/16 | 6,650 | 6,691 |
McKesson Corp. | 2.700% | 12/15/22 | 7,710 | 7,406 |
McKesson Corp. | 2.850% | 3/15/23 | 7,620 | 7,340 |
Medtronic Inc. | 1.375% | 4/1/18 | 13,520 | 13,502 |
Medtronic Inc. | 2.500% | 3/15/20 | 34,350 | 34,798 |
Medtronic Inc. | 3.150% | 3/15/22 | 57,630 | 58,566 |
Medtronic Inc. | 3.625% | 3/15/24 | 10,350 | 10,703 |
Medtronic Inc. | 3.500% | 3/15/25 | 76,150 | 77,155 |
Medtronic Inc. | 4.375% | 3/15/35 | 10,565 | 10,824 |
Memorial Sloan-Kettering Cancer Center | 4.200% | 7/1/55 | 15,150 | 14,292 |
Memorial Sloan-Kettering Cancer Center New York GO | 4.125% | 7/1/52 | 11,055 | 10,097 |
Merck & Co. Inc. | 2.350% | 2/10/22 | 30,760 | 30,317 |
Merck & Co. Inc. | 2.800% | 5/18/23 | 54,775 | 54,800 |
Merck & Co. Inc. | 2.750% | 2/10/25 | 47,090 | 45,916 |
Merck & Co. Inc. | 6.550% | 9/15/37 | 10,000 | 13,130 |
Merck & Co. Inc. | 4.150% | 5/18/43 | 22,090 | 22,061 |
Molson Coors Brewing Co. | 3.500% | 5/1/22 | 16,525 | 16,759 |
Molson Coors Brewing Co. | 5.000% | 5/1/42 | 14,965 | 14,625 |
New York & Presbyterian Hospital | 4.024% | 8/1/45 | 28,410 | 26,792 |
Novartis Capital Corp. | 3.400% | 5/6/24 | 16,695 | 17,362 |
Novartis Capital Corp. | 4.400% | 5/6/44 | 25,896 | 27,156 |
Partners Healthcare System Massachusetts GO | 3.443% | 7/1/21 | 1,950 | 2,013 |
PepsiCo Inc. | 2.750% | 3/1/23 | 29,800 | 29,793 |
PepsiCo Inc. | 4.000% | 3/5/42 | 51,391 | 49,858 |
Pfizer Inc. | 3.000% | 6/15/23 | 47,025 | 47,236 |
Philip Morris International Inc. | 4.500% | 3/26/20 | 8,250 | 9,015 |
Philip Morris International Inc. | 4.125% | 5/17/21 | 43,025 | 45,798 |
Philip Morris International Inc. | 2.500% | 8/22/22 | 21,645 | 21,324 |
Philip Morris International Inc. | 2.625% | 3/6/23 | 46,850 | 45,851 |
3 Procter & Gamble - Esop | 9.360% | 1/1/21 | 32,679 | 38,859 |
5 Roche Holdings Inc. | 6.000% | 3/1/19 | 6,326 | 7,121 |
5 Roche Holdings Inc. | 2.875% | 9/29/21 | 33,000 | 33,574 |
5 SABMiller Holdings Inc. | 2.450% | 1/15/17 | 11,400 | 11,514 |
5 SABMiller Holdings Inc. | 3.750% | 1/15/22 | 2,390 | 2,463 |
5 SABMiller Holdings Inc. | 4.950% | 1/15/42 | 4,100 | 4,204 |
Sanofi | 4.000% | 3/29/21 | 44,090 | 47,272 |
The Pepsi Bottling Group Inc. | 7.000% | 3/1/29 | 10,000 | 13,439 |
Thermo Fisher Scientific Inc. | 3.200% | 3/1/16 | 11,405 | 11,468 |
Thermo Fisher Scientific Inc. | 1.850% | 1/15/18 | 20,495 | 20,455 |
Unilever Capital Corp. | 4.250% | 2/10/21 | 95,235 | 104,199 |
Wyeth LLC | 5.950% | 4/1/37 | 25,000 | 29,828 |
Zeneca Wilmington Inc. | 7.000% | 11/15/23 | 29,000 | 36,396 |
12
Vanguard® Wellington Fund | ||||
Schedule of Investments | ||||
November 30, 2015 | ||||
Face | Market | |||
Maturity | Amount | Value | ||
Coupon | Date | ($000) | ($000) | |
Energy (1.5%) | ||||
5 BG Energy Capital plc | 4.000% | 10/15/21 | 5,000 | 5,236 |
BP Capital Markets plc | 1.846% | 5/5/17 | 25,000 | 25,251 |
BP Capital Markets plc | 4.750% | 3/10/19 | 27,215 | 29,502 |
BP Capital Markets plc | 2.315% | 2/13/20 | 5,855 | 5,861 |
BP Capital Markets plc | 4.500% | 10/1/20 | 16,000 | 17,502 |
BP Capital Markets plc | 3.062% | 3/17/22 | 43,130 | 43,277 |
BP Capital Markets plc | 3.245% | 5/6/22 | 35,000 | 35,450 |
BP Capital Markets plc | 2.500% | 11/6/22 | 22,000 | 21,126 |
BP Capital Markets plc | 3.994% | 9/26/23 | 16,185 | 16,881 |
BP Capital Markets plc | 3.814% | 2/10/24 | 24,500 | 25,266 |
BP Capital Markets plc | 3.506% | 3/17/25 | 50,285 | 50,453 |
Chevron Corp. | 3.191% | 6/24/23 | 49,470 | 50,396 |
ConocoPhillips | 5.200% | 5/15/18 | 80,000 | 86,584 |
ConocoPhillips Co. | 2.875% | 11/15/21 | 14,665 | 14,603 |
ConocoPhillips Co. | 3.350% | 11/15/24 | 10,520 | 10,373 |
ConocoPhillips Co. | 4.300% | 11/15/44 | 60,450 | 56,572 |
Devon Energy Corp. | 5.000% | 6/15/45 | 21,975 | 19,566 |
Dominion Gas Holdings LLC | 3.550% | 11/1/23 | 21,445 | 21,265 |
Encana Corp. | 6.500% | 5/15/19 | 29,970 | 32,109 |
EOG Resources Inc. | 5.625% | 6/1/19 | 23,100 | 25,615 |
EOG Resources Inc. | 2.625% | 3/15/23 | 14,438 | 14,037 |
Halliburton Co. | 3.375% | 11/15/22 | 23,825 | 23,945 |
Halliburton Co. | 3.500% | 8/1/23 | 78,795 | 78,619 |
Occidental Petroleum Corp. | 4.100% | 2/1/21 | 39,240 | 41,945 |
Occidental Petroleum Corp. | 2.700% | 2/15/23 | 10,750 | 10,465 |
Phillips 66 | 4.875% | 11/15/44 | 10,800 | 10,679 |
Plains All American Pipeline LP / PAA Finance Corp. | 3.850% | 10/15/23 | 60,000 | 54,233 |
5 Schlumberger Investment SA | 2.400% | 8/1/22 | 23,925 | 22,873 |
Schlumberger Investment SA | 3.650% | 12/1/23 | 44,520 | 45,503 |
Shell International Finance BV | 4.375% | 3/25/20 | 28,875 | 31,269 |
Shell International Finance BV | 4.125% | 5/11/35 | 46,100 | 45,707 |
Shell International Finance BV | 5.500% | 3/25/40 | 12,990 | 14,753 |
Shell International Finance BV | 4.375% | 5/11/45 | 83,025 | 82,284 |
Suncor Energy Inc. | 3.600% | 12/1/24 | 24,135 | 24,111 |
Suncor Energy Inc. | 5.950% | 12/1/34 | 20,700 | 23,095 |
Sunoco Logistics Partners Operations LP | 4.400% | 4/1/21 | 30,000 | 29,985 |
Total Capital International SA | 1.550% | 6/28/17 | 44,415 | 44,594 |
Total Capital International SA | 2.700% | 1/25/23 | 36,510 | 35,664 |
Total Capital International SA | 3.750% | 4/10/24 | 41,500 | 42,966 |
Total Capital SA | 2.125% | 8/10/18 | 42,000 | 42,577 |
TransCanada PipeLines Ltd. | 3.800% | 10/1/20 | 47,125 | 49,671 |
Other Industrial (0.1%) | ||||
5 Hutchison Whampoa International 11 Ltd. | 3.500% | 1/13/17 | 6,145 | 6,272 |
5 Hutchison Whampoa International 14 Ltd. | 3.625% | 10/31/24 | 29,800 | 29,803 |
3 Johns Hopkins University Maryland GO | 4.083% | 7/1/53 | 26,970 | 26,794 |
Technology (0.7%) | ||||
Apple Inc. | 2.850% | 5/6/21 | 44,000 | 45,157 |
Apple Inc. | 3.450% | 5/6/24 | 39,950 | 41,330 |
Apple Inc. | 3.850% | 5/4/43 | 17,000 | 15,702 |
Apple Inc. | 4.450% | 5/6/44 | 5,075 | 5,150 |
Cisco Systems Inc. | 4.450% | 1/15/20 | 24,095 | 26,375 |
Cisco Systems Inc. | 2.900% | 3/4/21 | 13,350 | 13,790 |
EMC Corp. | 1.875% | 6/1/18 | 49,375 | 47,757 |
EMC Corp. | 3.375% | 6/1/23 | 18,110 | 15,508 |
International Business Machines Corp. | 8.375% | 11/1/19 | 25,000 | 30,944 |
International Business Machines Corp. | 3.375% | 8/1/23 | 70,925 | 72,473 |
International Business Machines Corp. | 3.625% | 2/12/24 | 35,000 | 36,081 |
International Business Machines Corp. | 5.875% | 11/29/32 | 25,000 | 29,853 |
Microsoft Corp. | 2.375% | 2/12/22 | 24,670 | 24,518 |
Microsoft Corp. | 3.625% | 12/15/23 | 16,000 | 16,976 |
Microsoft Corp. | 2.700% | 2/12/25 | 29,470 | 28,826 |
Microsoft Corp. | 3.125% | 11/3/25 | 31,615 | 31,808 |
13
Vanguard® Wellington Fund | ||||
Schedule of Investments | ||||
November 30, 2015 | ||||
Face | Market | |||
Maturity | Amount | Value | ||
Coupon | Date | ($000) | ($000) | |
Microsoft Corp. | 3.500% | 2/12/35 | 23,520 | 21,662 |
Microsoft Corp. | 4.450% | 11/3/45 | 14,250 | 14,685 |
Oracle Corp. | 2.500% | 5/15/22 | 46,930 | 46,287 |
Oracle Corp. | 2.950% | 5/15/25 | 32,360 | 31,542 |
Oracle Corp. | 6.125% | 7/8/39 | 18,000 | 21,902 |
Transportation (0.5%) | ||||
Burlington Northern Santa Fe LLC | 3.050% | 3/15/22 | 7,595 | 7,698 |
Burlington Northern Santa Fe LLC | 3.000% | 3/15/23 | 21,397 | 21,198 |
Burlington Northern Santa Fe LLC | 3.850% | 9/1/23 | 20,891 | 21,665 |
3 Continental Airlines 2007-1 Class A Pass Through Trust | 5.983% | 10/19/23 | 24,869 | 27,481 |
5 ERAC USA Finance LLC | 2.750% | 3/15/17 | 6,795 | 6,897 |
5 ERAC USA Finance LLC | 2.350% | 10/15/19 | 27,135 | 26,840 |
5 ERAC USA Finance LLC | 4.500% | 8/16/21 | 9,295 | 9,876 |
5 ERAC USA Finance LLC | 3.300% | 10/15/22 | 2,115 | 2,092 |
5 ERAC USA Finance LLC | 7.000% | 10/15/37 | 32,995 | 40,557 |
5 ERAC USA Finance LLC | 5.625% | 3/15/42 | 10,000 | 10,712 |
3 Federal Express Corp. 1998 Pass Through Trust | 6.720% | 1/15/22 | 24,481 | 27,627 |
FedEx Corp. | 2.625% | 8/1/22 | 5,385 | 5,266 |
FedEx Corp. | 2.700% | 4/15/23 | 23,430 | 22,527 |
FedEx Corp. | 3.200% | 2/1/25 | 15,390 | 14,839 |
FedEx Corp. | 4.900% | 1/15/34 | 10,610 | 10,974 |
FedEx Corp. | 3.875% | 8/1/42 | 5,095 | 4,405 |
FedEx Corp. | 4.100% | 4/15/43 | 20,500 | 18,622 |
FedEx Corp. | 5.100% | 1/15/44 | 18,015 | 18,792 |
Kansas City Southern Railway Co. | 4.950% | 8/15/45 | 39,060 | 38,767 |
Southwest Airlines Co. | 5.750% | 12/15/16 | 32,500 | 33,997 |
3 Southwest Airlines Co. 2007-1 Pass Through Trust | 6.150% | 2/1/24 | 16,872 | 18,876 |
United Parcel Service Inc. | 2.450% | 10/1/22 | 17,950 | 17,823 |
United Parcel Service Inc. | 4.875% | 11/15/40 | 14,815 | 16,628 |
10,246,081 | ||||
Utilities (1.9%) | ||||
Electric (1.8%) | ||||
Alabama Power Co. | 5.550% | 2/1/17 | 17,650 | 18,459 |
Alabama Power Co. | 5.700% | 2/15/33 | 15,000 | 17,398 |
Alabama Power Co. | 3.750% | 3/1/45 | 24,430 | 22,250 |
Ameren Illinois Co. | 6.125% | 12/15/28 | 54,000 | 65,119 |
Berkshire Hathaway Energy Co. | 6.125% | 4/1/36 | 25,000 | 29,528 |
Commonwealth Edison Co. | 5.950% | 8/15/16 | 23,120 | 23,926 |
Commonwealth Edison Co. | 4.350% | 11/15/45 | 8,130 | 8,256 |
Connecticut Light & Power Co. | 5.650% | 5/1/18 | 13,655 | 14,963 |
Consolidated Edison Co. of New York Inc. | 5.500% | 9/15/16 | 20,930 | 21,681 |
Consolidated Edison Co. of New York Inc. | 5.300% | 12/1/16 | 25,505 | 26,624 |
Consolidated Edison Co. of New York Inc. | 7.125% | 12/1/18 | 11,278 | 12,945 |
Consolidated Edison Co. of New York Inc. | 4.500% | 12/1/45 | 36,735 | 37,223 |
Consolidated Edison Co. of New York Inc. | 4.625% | 12/1/54 | 51,625 | 51,411 |
Delmarva Power & Light Co. | 3.500% | 11/15/23 | 11,816 | 12,186 |
Dominion Resources Inc. | 5.200% | 8/15/19 | 19,250 | 21,060 |
Dominion Resources Inc. | 3.625% | 12/1/24 | 29,400 | 29,315 |
Duke Energy Carolinas LLC | 5.250% | 1/15/18 | 9,000 | 9,710 |
Duke Energy Carolinas LLC | 5.100% | 4/15/18 | 18,235 | 19,639 |
Duke Energy Carolinas LLC | 3.900% | 6/15/21 | 50,025 | 53,363 |
Duke Energy Corp. | 4.800% | 12/15/45 | 44,700 | 45,499 |
Duke Energy Florida LLC | 6.350% | 9/15/37 | 8,000 | 10,345 |
Duke Energy Florida LLC | 6.400% | 6/15/38 | 27,055 | 35,025 |
Duke Energy Progress LLC | 6.300% | 4/1/38 | 14,705 | 18,853 |
Duke Energy Progress LLC | 4.200% | 8/15/45 | 32,825 | 32,683 |
Eversource Energy | 4.500% | 11/15/19 | 3,535 | 3,786 |
Eversource Energy | 3.150% | 1/15/25 | 5,025 | 4,930 |
Florida Power & Light Co. | 5.650% | 2/1/35 | 50,000 | 59,114 |
Florida Power & Light Co. | 4.950% | 6/1/35 | 10,000 | 11,065 |
Florida Power & Light Co. | 5.650% | 2/1/37 | 5,000 | 6,019 |
Florida Power & Light Co. | 5.950% | 2/1/38 | 39,215 | 49,323 |
Georgia Power Co. | 5.400% | 6/1/18 | 38,660 | 42,206 |
14
Vanguard® Wellington Fund | |||||
Schedule of Investments | |||||
November 30, 2015 | |||||
Face | Market | ||||
Maturity | Amount | Value | |||
Coupon | Date | ($000) | ($000) | ||
Georgia Power Co. | 4.300% | 3/15/42 | 23,145 | 21,399 | |
MidAmerican Energy Co. | 4.250% | 5/1/46 | 3,925 | 3,939 | |
National Rural Utilities Cooperative Finance Corp. | 5.450% | 2/1/18 | 60,000 | 64,775 | |
National Rural Utilities Cooperative Finance Corp. | 2.850% | 1/27/25 | 40,345 | 39,066 | |
Northern States Power Co. | 6.250% | 6/1/36 | 50,000 | 63,847 | |
Pacific Gas & Electric Co. | 4.250% | 5/15/21 | 11,365 | 12,176 | |
Pacific Gas & Electric Co. | 3.850% | 11/15/23 | 17,950 | 18,785 | |
Pacific Gas & Electric Co. | 3.750% | 2/15/24 | 12,250 | 12,747 | |
Pacific Gas & Electric Co. | 5.125% | 11/15/43 | 11,255 | 12,505 | |
PacifiCorp | 2.950% | 6/1/23 | 29,675 | 29,452 | |
PacifiCorp | 5.900% | 8/15/34 | 12,500 | 14,370 | |
PacifiCorp | 6.250% | 10/15/37 | 36,635 | 46,160 | |
Peco Energy Co. | 5.350% | 3/1/18 | 20,545 | 22,202 | |
Potomac Electric Power Co. | 6.500% | 11/15/37 | 25,000 | 32,344 | |
Public Service Electric & Gas Co. | 5.300% | 5/1/18 | 25,100 | 27,242 | |
San Diego Gas & Electric Co. | 6.000% | 6/1/26 | 3,600 | 4,462 | |
Sierra Pacific Power Co. | 3.375% | 8/15/23 | 34,040 | 34,552 | |
South Carolina Electric & Gas Co. | 5.800% | 1/15/33 | 9,000 | 10,226 | |
South Carolina Electric & Gas Co. | 6.050% | 1/15/38 | 34,000 | 40,226 | |
South Carolina Electric & Gas Co. | 5.100% | 6/1/65 | 23,540 | 24,926 | |
Southern California Edison Co. | 2.400% | 2/1/22 | 4,295 | 4,231 | |
Southern California Edison Co. | 6.000% | 1/15/34 | 7,695 | 9,464 | |
Southern California Edison Co. | 5.550% | 1/15/37 | 50,475 | 59,263 | |
Southern California Edison Co. | 5.950% | 2/1/38 | 40,000 | 49,446 | |
Southern California Edison Co. | 3.600% | 2/1/45 | 3,560 | 3,243 | |
Southern Co. | 2.450% | 9/1/18 | 9,395 | 9,471 | |
Virginia Electric & Power Co. | 2.750% | 3/15/23 | 34,540 | 34,194 | |
Wisconsin Electric Power Co. | 5.700% | 12/1/36 | 17,280 | 20,770 | |
Wisconsin Public Service Corp. | 6.080% | 12/1/28 | 45,000 | 55,638 | |
Natural Gas (0.0%) | |||||
AGL Capital Corp. | 6.375% | 7/15/16 | 25,815 | 26,636 | |
NiSource Finance Corp. | 4.800% | 2/15/44 | 10,370 | 10,682 | |
Other Utility (0.1%) | |||||
UGI Utilities Inc. | 5.753% | 9/30/16 | 37,590 | 38,812 | |
1,671,155 | |||||
Total Corporate Bonds (Cost $19,108,553) | 19,929,410 | ||||
Sovereign Bonds (U.S. Dollar-Denominated) (1.1%) | |||||
5 | Abu Dhabi National Energy Co. PJSC | 5.875% | 10/27/16 | 41,140 | 42,326 |
5 | CDP Financial Inc. | 4.400% | 11/25/19 | 40,000 | 43,441 |
5 | Electricite de France SA | 4.600% | 1/27/20 | 50,000 | 54,070 |
5 | Electricite de France SA | 4.875% | 1/22/44 | 1,775 | 1,771 |
5 | Electricite de France SA | 4.950% | 10/13/45 | 15,100 | 14,841 |
3,5 | Electricite de France SA | 5.250% | 1/29/49 | 22,485 | 21,810 |
3,5 | Electricite de France SA | 5.625% | 12/29/49 | 45,000 | 43,772 |
International Bank for Reconstruction & Development | 4.750% | 2/15/35 | 40,000 | 49,301 | |
Korea Development Bank | 2.875% | 8/22/18 | 37,605 | 38,408 | |
Korea Development Bank | 2.500% | 3/11/20 | 78,800 | 78,954 | |
Province of Ontario | 4.000% | 10/7/19 | 56,415 | 60,584 | |
Province of Ontario | 4.400% | 4/14/20 | 50,000 | 54,900 | |
Quebec | 5.125% | 11/14/16 | 35,000 | 36,359 | |
5 | Sinopec Group Overseas Development 2015 Ltd. | 2.500% | 4/28/20 | 62,500 | 61,801 |
5 | Sinopec Group Overseas Development 2015 Ltd. | 3.250% | 4/28/25 | 62,500 | 60,027 |
5 | State Grid Overseas Investment 2014 Ltd. | 2.750% | 5/7/19 | 51,455 | 52,126 |
Statoil ASA | 2.250% | 11/8/19 | 22,515 | 22,598 | |
Statoil ASA | 2.900% | 11/8/20 | 57,210 | 58,824 | |
Statoil ASA | 2.750% | 11/10/21 | 32,860 | 32,484 | |
Statoil ASA | 2.450% | 1/17/23 | 15,017 | 14,376 | |
Statoil ASA | 2.650% | 1/15/24 | 14,000 | 13,363 | |
Statoil ASA | 3.700% | 3/1/24 | 25,320 | 25,819 | |
Statoil ASA | 3.250% | 11/10/24 | 29,975 | 29,442 | |
5 | Temasek Financial I Ltd. | 2.375% | 1/23/23 | 45,150 | 44,309 |
15
Vanguard® Wellington Fund | ||||
Schedule of Investments | ||||
November 30, 2015 | ||||
Face | Market | |||
Maturity | Amount | Value | ||
Coupon | Date | ($000) | ($000) | |
United Mexican States | 3.500% | 1/21/21 | 13,956 | 14,197 |
United Mexican States | 3.600% | 1/30/25 | 24,005 | 23,703 |
Total Sovereign Bonds (Cost $965,751) | 993,606 | |||
Taxable Municipal Bonds (1.8%) | ||||
Atlanta GA Downtown Development Authority | ||||
Revenue | 6.875% | 2/1/21 | 7,790 | 8,727 |
Bay Area Toll Authority California Toll Bridge Revenue | ||||
(San Francisco Bay Area) | 6.263% | 4/1/49 | 40,000 | 53,489 |
Bay Area Toll Authority California Toll Bridge Revenue | ||||
(San Francisco Bay Area) | 7.043% | 4/1/50 | 27,735 | 38,182 |
California GO | 5.700% | 11/1/21 | 16,840 | 19,600 |
California GO | 7.550% | 4/1/39 | 43,215 | 64,022 |
California GO | 7.300% | 10/1/39 | 11,800 | 16,725 |
California GO | 7.625% | 3/1/40 | 3,510 | 5,167 |
California GO | 7.600% | 11/1/40 | 34,800 | 52,325 |
Chicago IL Metropolitan Water Reclamation District GO | 5.720% | 12/1/38 | 8,545 | 9,770 |
Chicago IL O'Hare International Airport Revenue | 6.845% | 1/1/38 | 25,680 | 28,414 |
Chicago IL O'Hare International Airport Revenue | 6.395% | 1/1/40 | 8,970 | 11,384 |
Chicago IL Transit Authority Transfer Tax Receipts | ||||
Revenue | 6.899% | 12/1/40 | 15,230 | 17,736 |
Chicago Transit Authority | 6.899% | 12/1/40 | 27,070 | 31,525 |
Dallas TX Area Rapid Transit Revenue | 5.999% | 12/1/44 | 29,925 | 39,397 |
Georgia Municipal Electric Power Authority Revenue | 6.637% | 4/1/57 | 42,555 | 51,406 |
Grand Parkway Transportation Corp. Texas System Toll | ||||
Revenue | 5.184% | 10/1/42 | 40,435 | 47,808 |
Houston TX GO | 6.290% | 3/1/32 | 24,190 | 29,819 |
Illinois GO | 5.100% | 6/1/33 | 61,950 | 58,765 |
Illinois Toll Highway Authority Revenue | 6.184% | 1/1/34 | 29,200 | 36,348 |
Kansas Development Finance Authority Revenue | 4.927% | 4/15/45 | 18,925 | 18,669 |
7 Kansas Development Finance Authority Revenue | ||||
(Public Employees Retirement System) | 5.501% | 5/1/34 | 50,000 | 55,991 |
Los Angeles CA Community College District GO | 6.750% | 8/1/49 | 13,625 | 19,411 |
Los Angeles CA Unified School District GO | 5.750% | 7/1/34 | 55,325 | 66,659 |
Louisville & Jefferson County KY Metropolitan Sewer | ||||
District Sewer & Drainage System Revenue | 6.250% | 5/15/43 | 19,000 | 24,283 |
Maryland Transportation Authority Facilities Projects | ||||
Revenue | 5.888% | 7/1/43 | 21,685 | 26,578 |
Massachusetts School Building Authority Dedicated | ||||
Sales Tax Revenue | 5.715% | 8/15/39 | 22,105 | 27,144 |
New Jersey Turnpike Authority Revenue | 7.414% | 1/1/40 | 35,285 | 50,249 |
New Jersey Turnpike Authority Revenue | 7.102% | 1/1/41 | 4,000 | 5,520 |
New York City NY Municipal Water Finance Authority | ||||
Water & Sewer System Revenue | 5.790% | 6/15/41 | 2,030 | 2,244 |
New York City NY Municipal Water Finance Authority | ||||
Water & Sewer System Revenue | 5.882% | 6/15/44 | 16,995 | 21,857 |
New York Metropolitan Transportation Authority | ||||
Revenue | 6.814% | 11/15/40 | 4,000 | 5,334 |
New York Metropolitan Transportation Authority | ||||
Revenue (Dedicated Tax Fund) | 7.336% | 11/15/39 | 10,860 | 15,846 |
New York Metropolitan Transportation Authority | ||||
Revenue (Dedicated Tax Fund) | 6.089% | 11/15/40 | 16,085 | 20,421 |
North Texas Tollway Authority System Revenue | 6.718% | 1/1/49 | 61,100 | 84,024 |
Oregon Department of Transportation Highway User | ||||
Tax Revenue | 5.834% | 11/15/34 | 25,930 | 32,718 |
Oregon GO | 5.902% | 8/1/38 | 19,510 | 23,828 |
7 Oregon School Boards Association GO | 5.528% | 6/30/28 | 50,000 | 57,959 |
Port Authority of New York & New Jersey Revenue | 5.859% | 12/1/24 | 12,735 | 15,454 |
Port Authority of New York & New Jersey Revenue | 6.040% | 12/1/29 | 10,455 | 12,637 |
Port Authority of New York & New Jersey Revenue | 4.458% | 10/1/62 | 53,000 | 51,407 |
Port Authority of New York & New Jersey Revenue | 4.810% | 10/15/65 | 21,985 | 22,774 |
President & Fellows of Harvard College Massachusetts | ||||
GO | 6.300% | 10/1/37 | 50,675 | 51,688 |
16
Vanguard® Wellington Fund | |||||
Schedule of Investments | |||||
November 30, 2015 | |||||
Face | Market | ||||
Maturity | Amount | Value | |||
Coupon | Date | ($000) | ($000) | ||
San Antonio TX Electric & Gas Systems Revenue | 5.985% | 2/1/39 | 11,890 | 15,161 | |
Stanford University | 6.875% | 2/1/24 | 34,745 | 43,813 | |
Stanford University | 7.650% | 6/15/26 | 29,000 | 40,106 | |
University of California | 3.931% | 5/15/45 | 22,370 | 21,900 | |
University of California Regents General Revenue | 4.601% | 5/15/31 | 21,975 | 23,449 | |
University of California Regents Medical Center | |||||
Revenue | 6.548% | 5/15/48 | 18,650 | 24,240 | |
University of California Regents Medical Center | |||||
Revenue | 6.583% | 5/15/49 | 31,110 | 40,455 | |
University of California Revenue | 5.770% | 5/15/43 | 24,325 | 29,844 | |
University of California Revenue | 4.765% | 5/15/44 | 5,980 | 6,095 | |
Total Taxable Municipal Bonds (Cost $1,384,089) | 1,578,367 | ||||
Temporary Cash Investments (0.7%) | |||||
Repurchase Agreements (0.2%) | |||||
Bank of America Securities, LLC (Dated 11/30/15, | |||||
Repurchase Value $18,200,000 collateralized by U.S. | |||||
Treasury Note 2.750%, 2/15/24, with a value of | |||||
$18,564,000) | 0.110% | 12/1/15 | 18,200 | 18,200 | |
Citigroup Global Markets Inc. (Dated 11/30/15, | |||||
Repurchase Value $100,000 collateralized by U.S. | |||||
Treasury Note 1.000%,12/15/17, with a value of | |||||
$102,000) | 0.110% | 12/1/15 | 100 | 100 | |
HSBC Bank USA (Dated 11/30/15, Repurchase Value | |||||
$38,400,000 collateralized by Federal National | |||||
Mortgage Assn. 2.500%, 1/1/28, with a value of | |||||
$39,170,000) | 0.090% | 12/1/15 | 38,400 | 38,400 | |
RBC Capital Markets LLC (Dated 11/30/15, Repurchase | |||||
Value $27,300,000 collateralized by Federal Home | |||||
Loan Mortgage Corp. 2.388%-2.488%,3/1/40-6/1/42, | |||||
Federal National Mortgage Assn. 2.213%-4.500%, | |||||
5/1/26-11/1/45, Government National Mortgage Assn. | |||||
3.500%-4.000%, 10/15/40-9/20/45, with a value of | |||||
$27,846,000) | 0.090% | 12/1/15 | 27,300 | 27,300 | |
TD Securities (USA) LLC (Dated 11/30/15, Repurchase | |||||
Value $52,000,000 collateralized by Federal Home | |||||
Loan Bank, 0.000%, 1/22/16, U.S. Treasury Bill | |||||
0.000%, 3/31/16, with a value of $53,040,000) | 0.100% | 12/1/15 | 52,000 | 52,000 | |
136,000 | |||||
U.S. Government and Agency Obligations (0.5%) | |||||
8 | Federal Home Loan Bank Discount Notes | 0.070% | 12/18/15 | 50,000 | 49,998 |
8 | Federal Home Loan Bank Discount Notes | 0.173% | 1/29/16 | 62,287 | 62,271 |
8 | Federal Home Loan Bank Discount Notes | 0.180% | 2/2/16 | 81,422 | 81,392 |
8 | Federal Home Loan Bank Discount Notes | 0.145%-0.175% | 2/3/16 | 65,000 | 64,975 |
8 | Federal Home Loan Bank Discount Notes | 0.180% | 2/4/16 | 40,710 | 40,695 |
8 | Federal Home Loan Bank Discount Notes | 0.190% | 2/12/16 | 145,581 | 145,515 |
444,846 | |||||
Total Temporary Cash Investments (Cost $580,867) | 580,846 | ||||
Total Investments (99.2%) (Cost $69,918,349) | 88,023,030 | ||||
Other Assets and Liabilities—Net (0.8%) | 721,365 | ||||
Net Assets (100%) | 88,744,395 |
* Non-income-producing security.
1 Securities with a value of $715,000 have been segregated as collateral for open over-the-counter swap 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 November 30, 2015.
17
Vanguard® Wellington Fund
Schedule of Investments
November 30, 2015
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 November 30, 2015, the aggregate value of these securities was $4,499,078,000, representing 5.1% of net assets.
6 Adjustable-rate security.
7 Scheduled principal and interest payments are guaranteed by AGM (Assured Guaranty Municipal Corporation).
8 The issuer operates under a congressional charter; its securities are generally neither guaranteed by the U.S. Treasury nor backed by the full faith and credit of the U.S. government.
Cash of $16,076,000 has been segregated as initial margin for open futures contracts.
ADR—American Depositary Receipt.
GO—General Obligation Bond.
REMICS—Real Estate Mortgage Investment Conduits.
18
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© 2016 The Vanguard Group, Inc.
All rights reserved.
Vanguard Marketing Corporation, Distributor.
SNA210 012016
Item 7: Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.
Not Applicable.
Item 8: Portfolio Managers of Closed-End Management Investment Companies.
Not Applicable.
Item 9: Purchase of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers.
Not Applicable.
Item 10: Submission of Matters to a Vote of Security Holders.
Not Applicable.
Item 11: Controls and Procedures.
(a) Disclosure Controls and Procedures. The Principal Executive and Financial Officers concluded that the Registrant’s Disclosure Controls and Procedures are effective based on their evaluation of the Disclosure Controls and Procedures as of a date within 90 days of the filing date of this report.
(b) Internal Control Over Financial Reporting. There were no significant changes in Registrant’s Internal Control Over Financial Reporting or in other factors that could significantly affect this control subsequent to the date of the evaluation, including any corrective actions with regard to significant deficiencies and material weaknesses.
Item 12: Exhibits.
(a) Code of Ethics. (b) Certifications.
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
VANGUARD WELLINGTON FUND | |
By: | /s/ F. WILLIAM MCNABB III* |
F. WILLIAM MCNABB III | |
CHIEF EXECUTIVE OFFICER | |
Date: January 19, 2016 |
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 WELLINGTON FUND | |
By: | /s/ F. WILLIAM MCNABB III* |
F. WILLIAM MCNABB III | |
CHIEF EXECUTIVE OFFICER | |
Date: January 19, 2016 |
VANGUARD WELLINGTON FUND | |
By: | /s/ THOMAS J. HIGGINS* |
THOMAS J. HIGGINS | |
CHIEF FINANCIAL OFFICER | |
Date: January 19, 2016 |
* By: /s/ Heidi Stam
Heidi Stam, pursuant to a Power of Attorney filed on April 22, 2014 see file Number 2-17620, Incorporated by Reference.