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Vanguard Quantitative Funds

Filed: 2 Dec 19, 3:35pm

 

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: 811-04526

 

Name of Registrant:

 

Vanguard Quantitative Funds

Address of Registrant:

 

P.O. Box 2600

 

 

Valley Forge, PA 19482

 

 

 

Name and address of agent for service:

 

Anne E. Robinson, Esquire

 

 

P.O. Box 876

 

 

Valley Forge, PA 19482

 

Registrant’s telephone number, including area code: (610) 669-1000

 

Date of fiscal year end:  September 30

 

Date of reporting period: October 1, 2018—September 30, 2019

 


 

Item 1: Reports to Shareholders

 


 

 

 

 

 

Annual Report | September 30, 2019

 

 

Vanguard Growth and Income Fund

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

See the inside front cover for important information about access to your fund’s annual and semiannual shareholder reports.

 

 

 


 

Important information about access to shareholder reports

 

Beginning on January 1, 2021, as permitted by regulations adopted by the Securities and Exchange Commission, paper copies of your fund’s annual and semiannual shareholder reports will no longer be sent to you by mail, unless you specifically request them. Instead, you will be notified by mail each time a report is posted on the website and will be provided with a link to access the report.

 

If you have already elected to receive shareholder reports electronically, you will not be affected by this change and do not need to take any action. You may elect to receive shareholder reports and other communications from the fund electronically by contacting your financial intermediary (such as a broker-dealer or bank) or, if you invest directly with the fund, by calling Vanguard at one of the phone numbers on the back cover of this report or by logging on to vanguard.com.

 

You may elect to receive paper copies of all future shareholder reports free of charge. If you invest through a financial intermediary, you can contact the intermediary to request that you continue to receive paper copies. If you invest directly with the fund, you can call Vanguard at one of the phone numbers on the back cover of this report or log on to vanguard.com. Your election to receive paper copies will apply to all the funds you hold through an intermediary or directly with Vanguard.

 

 

 

Contents

 

 

 

A Note From Our Chairman

1

Your Fund’s Performance at a Glance

2

Advisors’ Report

3

About Your Fund’s Expenses

9

Performance Summary

11

Financial Statements

13

Trustees Approve Advisory Arrangements

43

 

 

 

 

 

 

 

 

 

 

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.

 


 

A Note From Our Chairman

 

 

 

 

Tim Buckley

Chairman and Chief Executive Officer

 

 

 

Dear Shareholder,

 

Recent volatility in financial markets—affecting stocks, bonds, and commodities—has been a good reminder of the wise old adage, “Never keep all your eggs in one basket.” Maintaining balance and diversification in your investment portfolio can help to both limit risk and set you up for long-term success.

 

It’s understandable why some investors might become complacent after a long market run-up like the one that lifted stock prices, especially U.S. stock prices, in the years following the global financial crisis. But failing to rebalance regularly can leave a portfolio with a much different mix of assets than intended and, often, more risk than intended.

 

Balance across and diversification within asset classes are powerful tools for managing risk and achieving your investment goals. A portfolio’s allocation will determine a large portion of its long-term return and also the majority of its volatility risk. A well-diversified portfolio is less vulnerable to significant swings in the performance of any one segment of the asset classes in which it invests.

 

Balance and diversification will never eliminate the risk of loss, nor will they guarantee positive returns in a declining market. But they should reduce the chance that you’ll suffer disproportionate losses in one particular high-flying asset class or sector when it comes back to earth. And exposure to all key market components should give you at least some participation in the sectors that are performing best at any given time.

 

Vanguard is committed to helping you achieve balance and diversification in your portfolios to help meet your investment goals. We thank you for your continued loyalty.

 

Sincerely,

 

 

Mortimer J. Buckley

Chairman and Chief Executive Officer

October 14, 2019

 

1


 

Your Fund’s Performance at a Glance

 

 

·  Vanguard Growth and Income Fund returned more than 2% for the 12 months ended September 30, 2019, behind its benchmark, which returned more than 4%.

 

·  The fund invests in U.S. large- and mid-capitalization stocks and seeks a total return greater than that of the Standard & Poor’s 500 Index. Three independent advisors manage the fund, each responsible for its own portfolio.

 

·  Two of the fund’s 11 industry sectors contributed positively to performance relative to the benchmark: communications services and consumer staples.

 

·  Consumer discretionary, information technology, health care, and industrials detracted the most.

 

·  For the ten years ended September 30, 2019, the fund’s average annual return was in line with that of its benchmark.

 

 

 

Market Barometer

 

 

 

Average Annual Total Returns

 

 

 

Periods Ended September 30, 2019

 

 

 

One Year

 

Three Years

 

Five Years

 

Stocks

 

 

 

 

 

 

 

Russell 1000 Index (Large-caps)

 

3.87%

 

13.19%

 

10.62%

 

Russell 2000 Index (Small-caps)

 

-8.89

 

8.23

 

8.19

 

Russell 3000 Index (Broad U.S. market)

 

2.92

 

12.83

 

10.44

 

FTSE All-World ex US Index (International)

 

-1.12

 

6.46

 

3.24

 

 

 

 

 

 

 

 

 

Bonds

 

 

 

 

 

 

 

Bloomberg Barclays U.S. Aggregate Bond Index

 

 

 

 

 

 

 

(Broad taxable market)

 

10.30%

 

2.92%

 

3.38%

 

Bloomberg Barclays Municipal Bond Index

 

 

 

 

 

 

 

(Broad tax-exempt market)

 

8.55

 

3.19

 

3.66

 

FTSE Three-Month U.S. Treasury Bill Index

 

2.36

 

1.52

 

0.95

 

 

 

 

 

 

 

 

 

CPI

 

 

 

 

 

 

 

Consumer Price Index

 

1.71%

 

2.07%

 

1.53%

 

 

2


 

Advisors’ Report

 

 

Vanguard Growth and Income Fund’s Investor Shares returned 2.21% for the 12 months ended September 30, 2019. The Admiral Shares returned 2.32%. The fund’s benchmark, the Standard & Poor’s 500 Index, returned 4.25%.

 

Your fund is managed by three independent advisors, a strategy that enhances the fund’s diversification by providing exposure to distinct yet complementary investment approaches. It is not uncommon for different advisors to have different views about individual securities or the broader investment environment.

 

The advisors, the percentage of fund assets each manages, and brief descriptions of their investment strategies are presented in the accompanying table. The advisors have also prepared a discussion of the investment environment that existed during the fiscal year and of how the portfolio’s positioning reflects this assessment. (Please note that Los Angeles Capital’s discussion refers to industry sectors as defined by Russell classifications, rather than by the Global Industry Classification Standard used elsewhere in this report.) These comments were prepared on October 16, 2019.

 

D. E. Shaw Investment Management, L.L.C.

 

Portfolio Manager:

 

Philip Kearns, Ph.D., Managing Director

 

The S&P 500 Index gained 4.3% over the period, though this result masks the somewhat volatile nature of this period for equity markets. The index lost almost 7% in October 2018, when many market participants expected the U.S. Federal Reserve would raise rates; largely stabilized in November; and then fell sharply in December, with intra-month peak-to-trough losses of almost 16%. This precipitous drop came amid continued uncertainty around U.S.-China trade talks, a Fed rate hike, and disagreements over the U.S. federal budget—the last development ultimately leading to a government shutdown on December 22. In all, the fourth quarter of 2018 saw the S&P 500 fall 13.5%, with all sectors posting negative returns.

 

U.S. stocks rebounded quickly in the first quarter of 2019, with the S&P 500 recovering all of its fourth-quarter losses by early April, and they continued to climb—but with significant volatility—in subsequent months. The market’s strong performance from January through September may have been driven by mostly positive U.S. economic data and dovish hints from the Fed. Still, the S&P 500 saw two notable reversals during these three quarters: drawdowns of 6.4% in May and 4.5% over the first three days of August. Both coincided with increased

 

3


 

tension in U.S.-China trade talks. Volatility in oil prices also may have contributed to that market instability, given the geopolitical strains between the United States and Iran, Saudi Arabia, Venezuela, and Russia. Tensions arising from tariffs, sanctions, embargoes, and small-scale military engagements may have been responsible for that volatility, as they disrupted normal supply and demand for petroleum.

 

We actively monitor market activity of the type described above. But with the exception of attempting to mitigate certain situation-specific risks identified by the firm, we generally do not make investment decisions within our benchmark-relative equity portfolios based on a subjective analysis of the investment environment.

 

Stock-specific exposures were the largest contributors to our portfolio’s performance during the period, with exposures to technical risk factors—in particular, overweight exposures to small-cap and to highly volatile stocks—detracting most. Sector exposures also detracted, with overweight exposures to oil and gas drillers and pharmaceuticals hurting most. The impact of exposure to other risk factors was small, although the portfolio benefited from its sensitivity to certain macroeconomic risks (such as an overweight to interest rates). No other risk category had a notable impact on performance.

 

The three largest single-stock contributors were underweight positions in Exxon Mobil, UnitedHealth Group, and Netflix.

 

The three largest single-stock detractors were overweight positions in Bristol-Myers Squibb, Occidental Petroleum, and DXC Technology.

 

In our view, the U.S. economy appears to be slowing and seems headed for a period of greater uncertainty. The yield curve remains convex, with 5-year U.S. Treasury rates below both short- and longer-term levels. During the period, the 10-year rate dropped below the 2-year rate, a much-discussed warning signal for economic growth and financial market returns. The “dot plots” from the U.S. Federal Reserve’s Open Market Committee indicate widening dispersion in expected future federal funds rates—echoing monetary policymakers’ public comments about the uncertainty for both U.S. growth and inflation.

 

We believe that global forces also present significant risks to the U.S. economy. The United States and China remain mired in a trade dispute, and economic growth in Europe appears tenuous following several months of negative and disappointing manufacturing reports.

 

Despite all of these concerns, U.S. equity indexes remain near their all-time highs, reflecting investor optimism and, perhaps, a paucity of other investment opportunities.

 

4


 

Los Angeles Capital

 

Portfolio Managers:

 

Thomas D. Stevens, CFA,

Chairman and Principal

 

Hal W. Reynolds, CFA,

Chief Investment Officer and Principal

 

Following its fourth-quarter decline in 2018 (—14%), the S&P 500 rebounded to return +21% for the first three quarters of 2019 as central banks reversed course to more accommodative polices in response to the global economic slowdown. In July, the Federal Reserve lowered rates for the first time in over a decade, following the unexpected drop in long-term rates and the inversion of the U.S. yield curve in March.

 

Long-term rates continued their steady descent. As recession fears and uncertainties around trade negotiations and Brexit dominated the headlines, the market value of negative-yielding debt surpassed its 2016 high at the end of June ($12.9 trillion) before topping off at $16.8 trillion on August 31. Historically, a collapse in long-term rates has suggested lower growth and rising recession risks. But investors outside the United States, whose ability to purchase fixed income securities with positive real yields in their home markets is quite limited, are driving demand for U.S. fixed income investments. This may explain why U.S. yields have fallen so far despite the sharp differences in economic activity between the United States, where employment is strong, and Europe and Japan, where the job markets are much weaker.

 

Value assets struggled throughout much of the period in a low-growth, low-interest-rate environment while lower-volatility assets rallied on falling rates. Conversely—and in a change from the previous fiscal year—mid-capitalization stocks outpaced mega caps, whose margins have begun to compress on rising costs. Stocks with strong momentum performed well, and our portfolio’s tilt toward these companies added value.

 

The portfolio’s tilt toward growth stocks also added value, while an overweight to stocks with strong analyst sentiment detracted. This suggests that more-speculative growth companies outpaced those with the better improvement in fundamentals. From a sector standpoint, an overweight to cyclical areas of the economy, such as real estate, helped returns, and an underweight to utilities hurt them.

 

Over the 12 months, we maintained an overweight to technology while shifting into consumer staples and financials and out of energy and health care. We increased the portfolio’s exposure to companies with strong management and earnings quality.

 

5


 

Today, our portfolio is positioned toward companies with strong one- and three-year price momentum and favorable quality metrics such as analyst sentiment, robust cash earnings, and companies with superior management and operational skill. It is positioned away from valuation metrics and risk. Our largest overweights are to capital goods, consumer staples, and retail; our largest underweights are to basic materials, energy, and utilities.

 

With concerns over economic stability lingering, investors continue to favor higher-quality growth stocks with lower levels of business and financial risk and strong cash earnings. Attractive segments include consumer-oriented cyclicals, consumer staples, and technology. Investors are paying close attention to economic indicators and interest rates to gauge the likelihood of a global recession. Our investment outlook remains steady heading into the final quarter of 2019, and we expect interest rate volatility to continue to drive equity valuations and factor returns as investors face the uncertainties that lie ahead.

 

Vanguard Quantitative Equity Group

 

Portfolio Managers:

 

James P. Stetler

 

Binbin Guo, Principal,

Head of Alpha Equity Investments

 

Our approach to investing focuses on fundamentals—not technical analysis of stock price movements. We use a strict quantitative approach to evaluate a stock’s attractiveness based on five characteristics: high quality—healthy balance sheets and steady cash-flow generation; management decisions—sound investment policies that favor internal over external funding; consistent earnings growth—the ability to increase earnings year after year; strong market sentiment—market confirmation of our view; and reasonable valuation—we strive to avoid overpriced stocks.

 

Using these five themes, we generate a daily composite stock ranking as we seek to capitalize on market inefficiencies. We then monitor our portfolio based on those rankings and adjust when appropriate to maximize expected returns while minimizing exposure to risks that our research indicates don’t improve returns (such as industry selection and other risks relative to our benchmark).

 

6


 

The recent macroeconomic environment—characterized by high economic and policy uncertainty, low GDP growth, and low interest rates—contributed to some distinct trends in the equity markets. These trends are not unusual at the late stage of a business cycle and include the following:

 

· Value underperformance. The markets have experienced the longest stretch of value underperformance since the dot-com bubble burst in 2000. Investors have flocked to high-growth-potential companies, hoping for higher expected returns without necessarily looking at the underlying earnings. Those companies then trade at inflated valuations that are increasingly diverging from those of value companies.

 

· Trading on sentiment. The equity market has been trading mostly on sentiment. Since the spring of 2018, investors have reacted to macroeconomic shocks such as tariffs and Federal Reserve rate announcements while largely ignoring fundamentals (such as quality and growth).

 

· “Junk” rally. A big junk rally, during which stocks with high valuations and low-quality earnings have outperformed, began in January 2019. It has been a risk-on and fundamentals-off market, with investors giving up safety for returns.

 

Against the fiscal year’s unusual backdrop, four of our five decision models did not perform as expected; sentiment was the only one to produce positive results. Communication services and utilities produced positive results, but the other nine industry sectors detracted. Our worst sector results were in health care, consumer discretionary, and information technology.

 

At the individual stock level, the largest contributions came from Cadence Design Systems in information technology, Chipotle Mexican Grill in consumer discretionary, Twitter in communication services, and Estee Lauder in consumer staples. The greatest shortfalls came from Marathon Oil in energy, Align Technology in health care, Mosaic in materials, and DXC Technology in information technology.

 

We continue to believe that constructing a portfolio focused on fundamentals will benefit investors over the long term, although we recognize that the market can reward or punish us in the near term. We feel our portfolio offers a strong mix of stocks with attractive valuations and growth characteristics relative to the benchmark.

 

7


 

Vanguard Growth and Income Fund Investment Advisors

 

 

 

Fund Assets Managed

 

 

Investment Advisor

 

%

 

$ Million

 

Investment Strategy

D. E. Shaw Investment Management, L.L.C.

 

33

 

3,691

 

Employs quantitative models that seek to capture predominantly bottom-up stock-specific return opportunities. The portfolio’s sector weights, size, and style characteristics may differ modestly from the benchmark in a risk-controlled manner.

Los Angeles Capital

 

33

 

3,677

 

Employs a quantitative model that emphasizes stocks with characteristics investors are currently seeking and underweights stocks with characteristics investors are currently avoiding. The portfolio’s sector weights, size, and style characteristics may differ modestly from the benchmark in a risk-controlled manner.

Vanguard Quantitative Equity Group

 

32

 

3,677

 

Employs a quantitative fundamental management approach, using models that assess valuation, growth prospects, management decisions, market sentiment, and earnings and balance-sheet quality of companies as compared with their peers.

Cash Investments

 

2

 

227

 

These short-term reserves are invested by Vanguard in equity index products to simulate investments in stocks. Each advisor also may maintain a modest cash position.

 

8


 

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.

 

9


 

Six Months Ended September 30, 2019

 

 

Beginning

Ending

Expenses

 

Account Value

Account Value

Paid During

Growth and Income Fund

3/31/2019

9/30/2019

Period

Based on Actual Fund Return

 

 

 

Investor Shares

$1,000.00

$1,052.29

$1.70

Admiral™ Shares

1,000.00

1,052.68

1.18

Based on Hypothetical 5% Yearly Return

 

 

 

Investor Shares

$1,000.00

$1,023.41

$1.67

Admiral Shares

1,000.00

1,023.92

1.17

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 0.33% for Investor Shares and 0.23% 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).

 

10


 

Growth and Income Fund

 

 

Performance Summary

 

 

All of the returns in this report represent past performance, which is not a guarantee of future results that may be achieved by the fund. (Current performance may be lower or higher than the performance data cited. For performance data current to the most recent month-end, visit our website at vanguard.com/performance.) Note, too, that both investment returns and principal value can fluctuate widely, so an investor’s shares, when sold, could be worth more or less than their original cost. The returns shown do not reflect taxes that a shareholder would pay on fund distributions or on the sale of fund shares.

 

 

Cumulative Performance: September 30, 2009, Through September 30, 2019

Initial Investment of $10,000

 

 

 

 

Average Annual Total Returns

 

 

 

Periods Ended September 30, 2019

 

 

 

 

 

 

Final Value

 

 

One

Five

Ten

of a $10,000

 

 

Year

Years

Years

Investment

Growth and Income Fund Investor Shares

2.21%

10.40%

13.11%

$34,289

S&P 500 Index

4.25

10.84

13.24

34,674

Dow Jones U.S. Total Stock Market Float Adjusted Index

2.81

10.40

13.09

34,207

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Final Value

 

 

One

Five

Ten

of a $50,000

 

 

Year

Years

Years

Investment

Growth and Income Fund Admiral Shares

2.32%

10.52%

13.24%

$173,302

S&P 500 Index

4.25

10.84

13.24

173,372

Dow Jones U.S. Total Stock Market Float Adjusted Index

2.81

10.40

13.09

171,034

 

 

 

 

 

 

 

See Financial Highlights for dividend and capital gains information.

 

11


 

Growth and Income Fund

 

 

Sector Diversification

As of September 30, 2019

 

Communication Services

9.9%

Consumer Discretionary

12.0

Consumer Staples

8.4

Energy

3.6

Financials

12.7

Health Care

13.8

Industrials

9.6

Information Technology

22.0

Materials

2.1

Other

0.2

Real Estate

3.0

Utilities

2.7

The table reflects the fund’s equity exposure, based on its investments in stocks and stock index futures. Any holdings in short-term reserves are excluded. Sector categories are based on the Global Industry Classification Standard (“GICS”), except for the “Other” category (if applicable), which includes securities that have not been provided a GICS classification as of the effective reporting period.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

The Global Industry Classification Standard (“GICS”) was developed by and is the exclusive property and a service mark of MSCI Inc. (“MSCI”) and Standard and Poor’s, a division of McGraw-Hill Companies, Inc. (“S&P”), and is licensed for use by Vanguard. Neither MSCI, S&P nor any third party involved in making or compiling the GICS or any GICS classification makes any express or implied warranties or representations with respect to such standard or classification (or the results to be obtained by the use thereof), and all such parties hereby expressly disclaim all warranties of originality, accuracy, completeness, merchantability or fitness for a particular purpose with respect to any such standard or classification. Without limiting any of the foregoing, in no event shall MSCI, S&P, any of its affiliates or any third party involved in making or compiling the GICS or any GICS classification have any liability for any direct, indirect, special, punitive, consequential or any other damages (including lost profits) even if notified of the possibility of such damages.

 

12


 

Growth and Income Fund

 

 

Financial Statements

 

 

Statement of Net Assets

As of September 30, 2019

 

The fund files its complete schedule of portfolio holdings with the Securities and Exchange Commission (SEC) for the first and third quarters of each fiscal year as an exhibit to its reports on Form N-PORT. The fund’s Form N-PORT reports are available on the SEC’s website at www.sec.gov.

 

 

 

 

 

 

Market

 

 

 

 

 

 

Value·

 

 

 

 

Shares

 

($000

)

Common Stocks (97.7%)1

 

 

 

 

 

Communication Services (9.7%)

 

 

 

 

 

*

Alphabet Inc. Class A

 

161,125

 

196,756

 

*

Facebook Inc. Class A

 

1,041,824

 

185,528

 

*

Alphabet Inc. Class C

 

139,467

 

170,010

 

 

Verizon Communications Inc.

 

2,262,534

 

136,567

 

 

AT&T Inc.

 

2,784,700

 

105,373

 

 

Comcast Corp. Class A

 

1,690,185

 

76,194

 

*

Twitter Inc.

 

871,179

 

35,893

 

 

Walt Disney Co.

 

271,076

 

35,327

 

*

Charter Communications Inc. Class A

 

67,113

 

27,659

 

 

CenturyLink Inc.

 

1,427,297

 

17,813

 

*

Electronic Arts Inc.

 

138,840

 

13,581

 

*

Discovery Communications Inc. Class A

 

499,843

 

13,311

 

 

News Corp. Class A

 

855,768

 

11,912

 

*

Netflix Inc.

 

42,968

 

11,499

 

 

Interpublic Group of Cos. Inc.

 

527,860

 

11,381

 

*

Discovery Communications Inc.

 

293,464

 

7,225

 

*

TripAdvisor Inc.

 

146,220

 

5,656

 

 

News Corp. Class B

 

296,492

 

4,238

 

*

Take-Two Interactive Software Inc.

 

31,340

 

3,928

 

*

Altice USA Inc. Class A

 

118,400

 

3,396

 

 

Viacom Inc. Class B

 

101,670

 

2,443

 

 

Match Group Inc.

 

28,032

 

2,003

 

*

Yelp Inc. Class A

 

55,600

 

1,932

 

*

Liberty Media Corp-Liberty SiriusXM Class C

 

42,000

 

1,762

 

*

Liberty Media Corp-Liberty SiriusXM Class A

 

26,300

 

1,093

 

*

SINA Corp.

 

19,500

 

764

 

*

Zynga Inc. Class A

 

119,400

 

695

 

*

GCI Liberty Inc. Class A

 

7,700

 

478

 

 

Omnicom Group Inc.

 

6,100

 

478

 

*

Spotify Technology SA

 

3,000

 

342

 

 

Fox Corp. Class B

 

8,700

 

274

 

*

Cargurus Inc.

 

8,700

 

269

 

 

Telephone & Data Systems Inc.

 

10,100

 

261

 

*

Glu Mobile Inc.

 

50,100

 

250

 

 

CBS Corp. Class B

 

4,500

 

182

 

*

Liberty Broadband Corp.

 

1,500

 

157

 

 

Sinclair Broadcast Group Inc. Class A

 

3,142

 

134

 

*,^

Eros International plc

 

68,500

 

131

 

 

Cable One Inc.

 

100

 

125

 

*

Care.com Inc.

 

10,200

 

107

 

*

Lions Gate Entertainment Corp. Class B

 

9,900

 

86

 

 

Emerald Expositions Events Inc.

 

7,580

 

74

 

*

Central European Media Enterprises Ltd. Class A

 

15,700

 

71

 

*

IMAX Corp.

 

2,700

 

59

 

*

Snap Inc.

 

3,500

 

55

 

*

DHI Group Inc.

 

13,100

 

50

 

*

Liberty TripAdvisor Holdings Inc. Class A

 

5,300

 

50

 

*

Yandex NV Class A

 

1,400

 

49

 

*,^

Manchester United plc Class A

 

2,685

 

44

 

*

Anterix Inc.

 

1,000

 

36

 

 

Entravision Communications Corp. Class A

 

9,400

 

30

 

*

IDT Corp. Class B

 

2,800

 

29

 

*

Live Nation Entertainment Inc.

 

400

 

26

 

*

IAC/InterActiveCorp

 

100

 

22

 

*

TrueCar Inc.

 

5,500

 

19

 

*

ANGI Homeservices Inc. Class A

 

2,500

 

18

 

*,^

Globalstar Inc.

 

41,267

 

17

 

*

DISH Network Corp. Class A

 

400

 

14

 

*

T-Mobile US Inc.

 

100

 

8

 

 

13


 

Growth and Income Fund

 

 

 

 

 

 

 

Market

 

 

 

 

 

 

Value·

 

 

 

 

Shares

 

($000

)

 

Activision Blizzard Inc.

 

100

 

5

 

*

Hemisphere Media Group Inc. Class A

 

371

 

4

 

 

John Wiley & Sons Inc. Class A

 

100

 

4

 

*

Eventbrite Inc. Class A

 

200

 

4

 

*

Ooma Inc.

 

300

 

3

 

*

Zillow Group Inc. Class A

 

100

 

3

 

*

Pinterest Inc. Class A

 

100

 

3

 

*

Liberty Global plc Class A

 

100

 

2

 

 

Gannett Co. Inc.

 

200

 

2

 

*

Lions Gate Entertainment Corp. Class A

 

200

 

2

 

*

MDC Partners Inc. Class A

 

416

 

1

 

 

New Media Investment Group Inc.

 

100

 

1

 

 

 

 

 

 

1,087,918

 

Consumer Discretionary (11.7%)

 

 

 

 

 

*

Amazon.com Inc.

 

168,852

 

293,112

 

 

Home Depot Inc.

 

594,854

 

138,018

 

 

Starbucks Corp.

 

974,820

 

86,194

 

*

Booking Holdings Inc.

 

41,410

 

81,272

 

 

McDonald’s Corp.

 

334,944

 

71,916

 

 

TJX Cos. Inc.

 

1,092,650

 

60,904

 

 

NIKE Inc. Class B

 

462,420

 

43,431

 

*

AutoZone Inc.

 

38,576

 

41,840

 

 

Target Corp.

 

371,452

 

39,712

 

 

Yum! Brands Inc.

 

342,136

 

38,809

 

 

H&R Block Inc.

 

1,574,044

 

37,179

 

 

Garmin Ltd.

 

397,568

 

33,670

 

 

Darden Restaurants Inc.

 

282,796

 

33,432

 

 

eBay Inc.

 

857,377

 

33,421

 

 

Lowe’s Cos. Inc.

 

282,624

 

31,077

 

 

Expedia Group Inc.

 

214,877

 

28,882

 

 

PulteGroup Inc.

 

642,628

 

23,488

 

 

Whirlpool Corp.

 

144,589

 

22,897

 

 

Best Buy Co. Inc.

 

289,692

 

19,986

 

 

General Motors Co.

 

492,532

 

18,460

 

*

O’Reilly Automotive Inc.

 

29,987

 

11,950

 

 

Ross Stores Inc.

 

108,600

 

11,930

 

 

Newell Brands Inc.

 

580,864

 

10,874

 

 

Royal Caribbean Cruises Ltd.

 

91,885

 

9,954

 

 

Advance Auto Parts Inc.

 

52,130

 

8,622

 

*

Under Armour Inc. Class C

 

377,919

 

6,852

 

 

Dollar General Corp.

 

39,980

 

6,354

 

 

Hilton Worldwide Holdings Inc.

 

61,960

 

5,769

 

*

Ulta Beauty Inc.

 

20,400

 

5,113

 

 

Las Vegas Sands Corp.

 

82,000

 

4,736

 

 

VF Corp.

 

51,800

 

4,610

 

 

L Brands Inc.

 

191,560

 

3,753

 

 

Goodyear Tire & Rubber Co.

 

199,300

 

2,871

 

 

BorgWarner Inc.

 

73,400

 

2,692

 

 

Tapestry Inc.

 

99,800

 

2,600

 

*

Under Armour Inc. Class A

 

129,901

 

2,590

 

*

Capri Holdings Ltd.

 

77,600

 

2,573

 

 

Wyndham Hotels & Resorts Inc.

 

49,199

 

2,546

 

 

Foot Locker Inc.

 

52,400

 

2,262

 

 

Aptiv plc

 

25,220

 

2,205

 

*

NVR Inc.

 

575

 

2,137

 

*

CarMax Inc.

 

23,933

 

2,106

 

*

Stamps.com Inc.

 

26,800

 

1,995

 

 

Genuine Parts Co.

 

16,900

 

1,683

 

*

WW International Inc.

 

44,000

 

1,664

 

 

Restaurant Brands International Inc.

 

20,800

 

1,480

 

*

Chipotle Mexican Grill Inc. Class A

 

1,740

 

1,462

 

*

Fossil Group Inc.

 

103,700

 

1,297

 

 

Tractor Supply Co.

 

13,126

 

1,187

 

 

Dick’s Sporting Goods Inc.

 

27,600

 

1,126

 

 

Hyatt Hotels Corp. Class A

 

14,400

 

1,061

 

 

DR Horton Inc.

 

20,100

 

1,059

 

 

Fiat Chrysler Automobiles NV

 

73,548

 

952

 

*

Sleep Number Corp.

 

21,500

 

888

 

*

Crocs Inc.

 

30,900

 

858

 

*

Hibbett Sports Inc.

 

33,200

 

760

 

 

Delphi Technologies plc

 

53,200

 

713

 

 

Lennar Corp. Class A

 

11,900

 

665

 

 

La-Z-Boy Inc.

 

17,600

 

591

 

*

Groupon Inc. Class A

 

195,500

 

520

 

*

Sonos Inc.

 

36,400

 

488

 

^

GameStop Corp. Class A

 

85,154

 

470

 

*

Etsy Inc.

 

8,200

 

463

 

 

Ford Motor Co.

 

50,200

 

460

 

*,^

GoPro Inc. Class A

 

86,800

 

450

 

 

Gentex Corp.

 

15,050

 

414

 

*

K12 Inc.

 

14,500

 

383

 

 

PVH Corp.

 

3,700

 

326

 

 

Abercrombie & Fitch Co.

 

20,400

 

318

 

*

Shutterstock Inc.

 

7,100

 

256

 

*

LKQ Corp.

 

7,900

 

248

 

*

Career Education Corp.

 

15,400

 

245

 

 

Strategic Education Inc.

 

1,729

 

235

 

 

14


 

Growth and Income Fund

 

 

 

 

 

 

 

Market

 

 

 

 

 

 

Value·

 

 

 

 

Shares

 

($000

)

 

Designer Brands Inc. Class A

 

12,598

 

216

 

 

Brunswick Corp.

 

4,000

 

209

 

 

Core-Mark Holding Co. Inc.

 

5,100

 

164

 

 

Signet Jewelers Ltd.

 

9,200

 

154

 

*

American Outdoor Brands Corp.

 

24,700

 

145

 

*

Laureate Education Inc. Class A

 

8,300

 

138

 

*

Murphy USA Inc.

 

1,600

 

137

 

 

Rent-A-Center Inc.

 

4,800

 

124

 

*

Vitamin Shoppe Inc.

 

18,000

 

117

 

 

Columbia Sportswear Co.

 

1,200

 

116

 

*

Deckers Outdoor Corp.

 

700

 

103

 

*

Despegar.com Corp.

 

8,300

 

94

 

 

Dana Inc.

 

6,200

 

90

 

 

Tilly’s Inc. Class A

 

9,400

 

89

 

*

MasterCraft Boat Holdings Inc.

 

5,900

 

88

 

*

Adtalem Global Education Inc.

 

2,200

 

84

 

 

MGM Resorts International

 

3,000

 

83

 

*

Vista Outdoor Inc.

 

13,200

 

82

 

*

Nautilus Inc.

 

59,500

 

80

 

*

PlayAGS Inc.

 

7,700

 

79

 

 

Buckle Inc.

 

3,605

 

74

 

 

Graham Holdings Co. Class B

 

100

 

66

 

 

Tenneco Inc. Class A

 

5,200

 

65

 

^

Tailored Brands Inc.

 

14,600

 

64

 

*

Sally Beauty Holdings Inc.

 

4,000

 

60

 

 

Tupperware Brands Corp.

 

3,710

 

59

 

 

Office Depot Inc.

 

30,300

 

53

 

*

SeaWorld Entertainment Inc.

 

1,895

 

50

 

*

American Public Education Inc.

 

1,800

 

40

 

 

Kohl’s Corp.

 

800

 

40

 

 

Bloomin’ Brands Inc.

 

2,000

 

38

 

 

Adient plc

 

1,600

 

37

 

*

Quotient Technology Inc.

 

4,600

 

36

 

 

Cato Corp. Class A

 

2,000

 

35

 

*

Hudson Ltd. Class A

 

2,800

 

34

 

*

Malibu Boats Inc. Class A

 

1,000

 

31

 

 

Bassett Furniture Industries Inc.

 

2,000

 

31

 

 

Brinker International Inc.

 

700

 

30

 

 

Acushnet Holdings Corp.

 

1,076

 

28

 

*

1-800-Flowers.com Inc. Class A

 

1,900

 

28

 

 

Wolverine World Wide Inc.

 

900

 

25

 

*

Modine Manufacturing Co.

 

2,000

 

23

 

*

Burlington Stores Inc.

 

100

 

20

 

*

Lululemon Athletica Inc.

 

100

 

19

 

*

frontdoor Inc.

 

348

 

17

 

 

Ethan Allen Interiors Inc.

 

800

 

15

 

*

Rubicon Project Inc.

 

1,722

 

15

 

*

Express Inc.

 

4,000

 

14

 

*

Noodles & Co. Class A

 

2,400

 

14

 

 

Big 5 Sporting Goods Corp.

 

5,500

 

11

 

 

Wayfair Inc.

 

100

 

11

 

 

Wynn Resorts Ltd.

 

100

 

11

 

 

Ralph Lauren Corp. Class A

 

100

 

10

 

 

Tiffany & Co.

 

100

 

9

 

*

America’s Car-Mart Inc.

 

100

 

9

 

 

Cooper Tire & Rubber Co.

 

300

 

8

 

*

PDS Biotechnology Corp.

 

2,090

 

7

 

*

Yatra Online Inc.

 

1,500

 

6

 

*

Vera Bradley Inc.

 

600

 

6

 

*

Ollie’s Bargain Outlet Holdings Inc.

 

100

 

6

 

*

Biglari Holdings Inc.

 

10

 

6

 

 

Magna International Inc.

 

100

 

5

 

 

Movado Group Inc.

 

210

 

5

 

 

Wyndham Destinations Inc.

 

100

 

5

 

 

Yum China Holdings Inc.

 

100

 

5

 

 

International Speedway Corp. Class A

 

100

 

5

 

 

Lennar Corp. Class B

 

100

 

4

 

 

BBX Capital Corp. Class A

 

900

 

4

 

*

Monarch Casino & Resort Inc.

 

100

 

4

 

*

Cooper-Standard Holdings Inc.

 

100

 

4

 

*

Genesco Inc.

 

100

 

4

 

*

M/I Homes Inc.

 

100

 

4

 

 

Citi Trends Inc.

 

200

 

4

 

 

Kontoor Brands Inc.

 

100

 

4

 

 

American Eagle Outfitters Inc.

 

200

 

3

 

 

Shoe Carnival Inc.

 

100

 

3

 

*

Hilton Grand Vacations Inc.

 

100

 

3

 

*

Beazer Homes USA Inc.

 

200

 

3

 

 

Extended Stay America Inc.

 

200

 

3

 

*

Urban Outfitters Inc.

 

100

 

3

 

*

Playa Hotels & Resorts NV

 

300

 

2

 

*

Biglari Holdings Inc. Class B

 

20

 

2

 

 

15


 

Growth and Income Fund

 

 

 

 

 

 

 

Market

 

 

 

 

 

 

Value·

 

 

 

 

Shares

 

($000

)

*

El Pollo Loco Holdings Inc.

 

193

 

2

 

 

Ruth’s Hospitality Group Inc.

 

100

 

2

 

*

Stitch Fix Inc. Class A

 

100

 

2

 

*

Carrols Restaurant Group Inc.

 

229

 

2

 

 

Tile Shop Holdings Inc.

 

523

 

2

 

*

Kirkland’s Inc.

 

900

 

1

 

 

Pier 1 Imports Inc.

 

100

 

1

 

*

Barnes & Noble Education Inc.

 

300

 

1

 

 

Superior Industries International Inc.

 

275

 

1

 

*

Libbey Inc.

 

200

 

1

 

*

Horizon Global Corp.

 

160

 

1

 

*

Container Store Group Inc.

 

100

 

 

 

J. Jill Inc.

 

200

 

 

*

Garrett Motion Inc.

 

16

 

 

 

 

 

 

 

1,321,164

 

Consumer Staples (8.2%)

 

 

 

 

 

 

Procter & Gamble Co.

 

1,062,332

 

132,133

 

 

Costco Wholesale Corp.

 

318,389

 

91,731

 

 

PepsiCo Inc.

 

607,029

 

83,224

 

 

Coca-Cola Co.

 

1,527,507

 

83,158

 

 

Walmart Inc.

 

658,250

 

78,121

 

 

Philip Morris International Inc.

 

1,012,590

 

76,886

 

 

Mondelez International Inc. Class A

 

924,465

 

51,141

 

 

Colgate-Palmolive Co.

 

670,924

 

49,320

 

 

Estee Lauder Cos. Inc. Class A

 

232,617

 

46,279

 

 

Kimberly-Clark Corp.

 

293,878

 

41,745

 

 

Sysco Corp.

 

397,519

 

31,563

 

 

General Mills Inc.

 

506,594

 

27,923

 

 

Kraft Heinz Co.

 

804,874

 

22,484

 

 

Molson Coors Brewing Co. Class B

 

339,263

 

19,508

 

 

Campbell Soup Co.

 

374,571

 

17,575

 

 

Altria Group Inc.

 

284,575

 

11,639

 

*

Monster Beverage Corp.

 

188,850

 

10,965

 

 

Church & Dwight Co. Inc.

 

120,060

 

9,033

 

 

Coty Inc. Class A

 

855,539

 

8,992

 

 

Clorox Co.

 

42,336

 

6,430

 

 

Lamb Weston Holdings Inc.

 

78,476

 

5,707

 

 

Hershey Co.

 

31,410

 

4,868

 

 

Coca-Cola European Partners plc

 

62,200

 

3,449

 

*

US Foods Holding Corp.

 

65,600

 

2,696

 

 

JM Smucker Co.

 

12,241

 

1,347

 

 

Walgreens Boots Alliance Inc.

 

15,319

 

847

 

 

Spectrum Brands Holdings Inc.

 

15,743

 

830

 

*

Pilgrim’s Pride Corp.

 

24,000

 

769

 

*

Post Holdings Inc.

 

7,000

 

741

 

 

Nu Skin Enterprises Inc. Class A

 

16,104

 

685

 

*

Nomad Foods Ltd.

 

30,900

 

633

 

*

Performance Food Group Co.

 

12,800

 

589

 

*

USANA Health Sciences Inc.

 

6,815

 

466

 

 

Brown-Forman Corp. Class B

 

4,800

 

301

 

*

TreeHouse Foods Inc.

 

5,002

 

277

 

*

Central Garden & Pet Co. Class A

 

6,400

 

177

 

 

Cott Corp.

 

8,900

 

111

 

*

Boston Beer Co. Inc. Class A

 

200

 

73

 

*

Pyxus International Inc.

 

5,500

 

72

 

 

Cal-Maine Foods Inc.

 

1,100

 

44

 

 

Lancaster Colony Corp.

 

176

 

24

 

*

Natural Grocers by Vitamin Cottage Inc.

 

2,328

 

23

 

 

Bunge Ltd.

 

400

 

23

 

 

Seaboard Corp.

 

5

 

22

 

 

Hormel Foods Corp.

 

500

 

22

 

 

J&J Snack Foods Corp.

 

100

 

19

 

 

McCormick & Co. Inc.

 

100

 

16

 

 

John B Sanfilippo & Son Inc.

 

100

 

10

 

 

Tyson Foods Inc. Class A

 

100

 

9

 

*

BJ’s Wholesale Club Holdings Inc.

 

292

 

8

 

*

Herbalife Nutrition Ltd.

 

100

 

4

 

 

Fresh Del Monte Produce Inc.

 

100

 

3

 

*

Simply Good Foods Co.

 

96

 

3

 

 

Flowers Foods Inc.

 

100

 

2

 

 

Dean Foods Co.

 

1,000

 

1

 

*

Castle Brands Inc.

 

100

 

 

 

 

 

 

 

924,721

 

Energy (3.5%)

 

 

 

 

 

 

Chevron Corp.

 

961,364

 

114,018

 

 

ConocoPhillips

 

1,467,738

 

83,632

 

 

Exxon Mobil Corp.

 

662,014

 

46,745

 

 

Schlumberger Ltd.

 

666,720

 

22,782

 

 

Devon Energy Corp.

 

831,554

 

20,007

 

 

Marathon Oil Corp.

 

1,438,709

 

17,653

 

 

Kinder Morgan Inc.

 

843,500

 

17,385

 

 

Cabot Oil & Gas Corp.

 

815,597

 

14,330

 

 

ONEOK Inc.

 

167,450

 

12,339

 

 

16


 

Growth and Income Fund

 

 

 

 

 

 

 

Market

 

 

 

 

 

 

Value·

 

 

 

 

Shares

 

($000

)

 

Occidental Petroleum Corp.

 

236,281

 

10,507

 

 

EOG Resources Inc.

 

125,781

 

9,335

 

 

Phillips 66

 

71,291

 

7,300

 

 

Pioneer Natural Resources Co.

 

45,000

 

5,660

 

 

HollyFrontier Corp.

 

45,770

 

2,455

 

 

Valero Energy Corp.

 

22,120

 

1,886

 

 

Hess Corp.

 

27,662

 

1,673

 

*

Continental Resources Inc.

 

51,800

 

1,595

 

 

Halliburton Co.

 

77,840

 

1,467

 

 

TechnipFMC plc

 

42,100

 

1,016

 

 

Enbridge Inc.

 

15,000

 

526

 

 

Cameco Corp.

 

54,900

 

522

 

 

QEP Resources Inc.

 

140,037

 

518

 

*

W&T Offshore Inc.

 

83,868

 

367

 

 

PBF Energy Inc. Class A

 

11,700

 

318

 

 

Peabody Energy Corp.

 

20,800

 

306

 

 

Equitrans Midstream Corp.

 

17,800

 

259

 

*

McDermott International Inc.

 

105,200

 

213

 

 

Parsley Energy Inc. Class A

 

11,000

 

185

 

*

C&J Energy Services Inc.

 

13,900

 

149

 

*

Oceaneering International Inc.

 

9,400

 

127

 

 

Archrock Inc.

 

12,484

 

124

 

*

Keane Group Inc.

 

19,300

 

117

 

 

SM Energy Co.

 

10,600

 

103

 

 

Concho Resources Inc.

 

1,300

 

88

 

*

Helix Energy Solutions Group Inc.

 

8,700

 

70

 

*

Exterran Corp.

 

4,200

 

55

 

*

Cactus Inc. Class A

 

1,700

 

49

 

 

National Oilwell Varco Inc.

 

2,260

 

48

 

*

Geopark Ltd.

 

2,408

 

44

 

 

Berry Petroleum Corp.

 

4,500

 

42

 

 

Mammoth Energy Services Inc.

 

13,198

 

33

 

 

Murphy Oil Corp.

 

1,400

 

31

 

 

Cenovus Energy Inc.

 

2,700

 

25

 

 

Evolution Petroleum Corp.

 

3,400

 

20

 

*

Apergy Corp.

 

600

 

16

 

*

Forum Energy Technologies Inc.

 

9,800

 

15

 

*

Dril-Quip Inc.

 

300

 

15

 

*

FTS International Inc.

 

6,396

 

14

 

*

Era Group Inc.

 

1,261

 

13

 

 

Marathon Petroleum Corp.

 

100

 

6

 

 

Baker Hughes a GE Co. Class A

 

200

 

5

 

 

DMC Global Inc.

 

100

 

4

 

*

SandRidge Energy Inc.

 

812

 

4

 

 

Helmerich & Payne Inc.

 

91

 

4

 

*

Overseas Shipholding Group Inc. Class A

 

2,000

 

4

 

*

PDC Energy Inc.

 

100

 

3

 

 

Apache Corp.

 

100

 

3

 

*,^

Tellurian Inc.

 

300

 

2

 

*

Matrix Service Co.

 

130

 

2

 

*

Magnolia Oil & Gas Corp. Class A

 

200

 

2

 

 

Plains GP Holdings LP Class A

 

100

 

2

 

*

WPX Energy Inc.

 

200

 

2

 

*

Superior Energy Services Inc.

 

15,240

 

2

 

*

CONSOL Energy Inc.

 

124

 

2

 

*

Earthstone Energy Inc. Class A

 

400

 

1

 

 

EQT Corp.

 

100

 

1

 

*

Energy Fuels Inc.

 

500

 

1

 

*

ION Geophysical Corp.

 

100

 

1

 

 

RPC Inc.

 

100

 

1

 

*

Hornbeck Offshore Services Inc.

 

700

 

1

 

*

CNX Resources Corp.

 

5

 

 

*

SilverBow Resources Inc.

 

3

 

 

 

 

 

 

 

396,250

 

Financials (12.4%)

 

 

 

 

 

 

JPMorgan Chase & Co.

 

1,125,660

 

132,479

 

 

Bank of America Corp.

 

4,110,216

 

119,895

 

*

Berkshire Hathaway Inc. Class B

 

546,676

 

113,720

 

 

Citigroup Inc.

 

1,630,792

 

112,655

 

 

Wells Fargo & Co.

 

1,500,936

 

75,707

 

 

Progressive Corp.

 

788,921

 

60,944

 

 

Synchrony Financial

 

1,715,639

 

58,486

 

 

American Express Co.

 

407,883

 

48,244

 

 

Intercontinental Exchange Inc.

 

487,823

 

45,011

 

 

S&P Global Inc.

 

173,710

 

42,556

 

 

MetLife Inc.

 

780,058

 

36,788

 

 

Capital One Financial Corp.

 

373,762

 

34,005

 

 

Allstate Corp.

 

291,618

 

31,693

 

 

Discover Financial Services

 

370,779

 

30,066

 

 

MSCI Inc. Class A

 

137,770

 

29,999

 

 

Cincinnati Financial Corp.

 

251,874

 

29,386

 

 

Morgan Stanley

 

678,295

 

28,943

 

 

Regions Financial Corp.

 

1,750,915

 

27,699

 

 

Comerica Inc.

 

417,554

 

27,554

 

 

Aflac Inc.

 

499,924

 

26,156

 

 

17


 

Growth and Income Fund

 

 

 

 

 

 

 

Market

 

 

 

 

 

 

Value·

 

 

 

 

Shares

 

($000

)

 

Hartford Financial Services Group Inc.

 

405,260

 

24,563

 

 

Moody’s Corp.

 

108,520

 

22,228

 

 

T. Rowe Price Group Inc.

 

169,749

 

19,394

 

 

M&T Bank Corp.

 

114,440

 

18,078

 

 

Arthur J Gallagher & Co.

 

171,960

 

15,402

 

 

BlackRock Inc.

 

33,010

 

14,711

 

 

E*TRADE Financial Corp.

 

302,500

 

13,216

 

 

Jefferies Financial Group Inc.

 

628,292

 

11,561

 

 

Fifth Third Bancorp

 

415,298

 

11,371

 

 

PNC Financial Services Group Inc.

 

77,550

 

10,869

 

 

Unum Group

 

330,749

 

9,830

 

 

Zions Bancorp NA

 

208,977

 

9,304

 

 

US Bancorp

 

141,315

 

7,820

 

 

Cboe Global Markets Inc.

 

64,041

 

7,359

 

 

State Street Corp.

 

117,100

 

6,931

 

 

Citizens Financial Group Inc.

 

183,790

 

6,501

 

 

Ares Capital Corp.

 

347,300

 

6,472

 

 

Willis Towers Watson plc

 

32,398

 

6,252

 

 

Ameriprise Financial Inc.

 

38,989

 

5,735

 

 

Lincoln National Corp.

 

79,125

 

4,773

 

 

Aon plc

 

24,200

 

4,684

 

 

Bank of New York Mellon Corp.

 

97,039

 

4,387

 

 

Affiliated Managers Group Inc.

 

50,210

 

4,185

 

 

Northern Trust Corp.

 

40,800

 

3,807

 

 

Marsh & McLennan Cos. Inc.

 

37,400

 

3,742

 

 

KeyCorp

 

190,480

 

3,398

 

 

First American Financial Corp.

 

49,300

 

2,909

 

 

American International Group Inc.

 

49,220

 

2,742

 

 

Invesco Ltd.

 

157,540

 

2,669

 

 

CME Group Inc.

 

9,100

 

1,923

 

 

Voya Financial Inc.

 

34,500

 

1,878

 

 

East West Bancorp Inc.

 

40,300

 

1,785

 

 

First Hawaiian Inc.

 

64,000

 

1,709

 

*

Green Dot Corp. Class A

 

40,400

 

1,020

 

*

Brighthouse Financial Inc.

 

22,010

 

891

 

*

Arch Capital Group Ltd.

 

20,700

 

869

 

 

Navient Corp.

 

66,000

 

845

 

 

Fidelity National Financial Inc.

 

18,900

 

839

 

 

Wintrust Financial Corp.

 

10,500

 

679

 

 

Nasdaq Inc.

 

6,676

 

663

 

 

OneMain Holdings Inc.

 

12,900

 

473

 

 

MFA Financial Inc.

 

61,400

 

452

 

 

Signature Bank

 

3,400

 

405

 

 

Hanover Insurance Group Inc.

 

2,981

 

404

 

 

Investors Bancorp Inc.

 

34,300

 

390

 

 

FS KKR Capital Corp.

 

66,000

 

385

 

 

Bank of NT Butterfield & Son Ltd.

 

12,946

 

384

 

 

Argo Group International Holdings Ltd.

 

5,300

 

372

 

 

Credicorp Ltd.

 

1,700

 

354

 

*

Globe Life Inc.

 

3,400

 

326

 

 

IBERIABANK Corp.

 

4,200

 

317

 

*

Third Point Reinsurance Ltd.

 

31,100

 

311

 

 

Huntington Bancshares Inc.

 

21,722

 

310

 

 

American Financial Group Inc.

 

2,800

 

302

 

*

Athene Holding Ltd. Class A

 

6,486

 

273

 

 

SEI Investments Co.

 

4,500

 

267

 

 

BankUnited Inc.

 

7,400

 

249

 

 

American Equity Investment Life Holding Co.

 

10,100

 

244

 

 

Popular Inc.

 

4,400

 

238

 

 

Community Bank System Inc.

 

3,600

 

222

 

 

CNO Financial Group Inc.

 

12,860

 

204

 

 

Primerica Inc.

 

1,381

 

176

 

 

Westamerica Bancorporation

 

2,800

 

174

 

 

Mercury General Corp.

 

3,000

 

168

 

 

CVB Financial Corp.

 

7,948

 

166

 

 

Brightsphere Investment Group Inc.

 

12,700

 

126

 

 

Franklin Resources Inc.

 

4,175

 

121

 

*

On Deck Capital Inc.

 

35,508

 

119

 

 

Everest Re Group Ltd.

 

420

 

112

 

 

Washington Federal Inc.

 

3,000

 

111

 

 

Apollo Investment Corp.

 

6,700

 

108

 

 

Umpqua Holdings Corp.

 

6,300

 

104

 

 

Associated Banc-Corp

 

4,900

 

99

 

 

Hilltop Holdings Inc.

 

4,152

 

99

 

*

PRA Group Inc.

 

2,700

 

91

 

 

Meridian Bancorp Inc.

 

4,800

 

90

 

 

MGIC Investment Corp.

 

6,816

 

86

 

 

Hancock Whitney Corp.

 

2,197

 

84

 

 

International Bancshares Corp.

 

2,104

 

81

 

 

United Bankshares Inc.

 

2,101

 

80

 

*

MBIA Inc.

 

8,600

 

79

 

 

First BanCorp

 

7,700

 

77

 

*

Markel Corp.

 

60

 

71

 

 

Evercore Inc. Class A

 

873

 

70

 

 

18


 

Growth and Income Fund

 

 

 

 

 

 

Market

 

 

 

 

Value

 

 

Shares

 

($000)

 

Boston Private Financial Holdings Inc.

5,800

 

68

 

WesBanco Inc.

1,800

 

67

 

Kearny Financial Corp.

5,100

 

67

 

OFG Bancorp

2,959

 

65

 

TCG BDC Inc.

4,500

 

65

 

UMB Financial Corp.

1,000

 

65

 

Flagstar Bancorp Inc.

1,726

 

64

 

FNB Corp.

5,300

 

61

 

Capitol Federal Financial Inc.

4,300

 

59

 

LPL Financial Holdings Inc.

700

 

57

 

Exantas Capital Corp.

4,700

 

53

 

AMERISAFE Inc.

800

 

53

 

Waddell & Reed Financial Inc. Class A

3,047

 

52

*

Bancorp Inc.

4,946

 

49

 

First Interstate BancSystem Inc. Class A

1,205

 

49

*

Credit Acceptance Corp.

100

 

46

*

Blucora Inc.

2,100

 

45

 

Morningstar Inc.

300

 

44

 

Moelis & Co. Class A

1,300

 

43

 

Sterling Bancorp

2,000

 

40

 

United Community Banks Inc.

1,400

 

40

 

Stock Yards Bancorp Inc.

1,022

 

38

 

Western Alliance Bancorp

791

 

36

 

New York Community Bancorp Inc.

2,900

 

36

 

Oaktree Specialty Lending Corp.

6,900

 

36

*

Cowen Inc. Class A

2,174

 

33

 

Federated Investors Inc. Class B

1,000

 

32

 

First Busey Corp.

1,200

 

30

 

TriCo Bancshares

800

 

29

 

Central Pacific Financial Corp.

1,000

 

28

 

United Community Financial Corp.

2,500

 

27

 

TPG RE Finance Trust Inc.

1,357

 

27

 

People’s United Financial Inc.

1,700

 

27

 

First Defiance Financial Corp.

908

 

26

 

Hanmi Financial Corp.

1,374

 

26

 

United Financial Bancorp Inc.

1,860

 

25

 

Flushing Financial Corp.

1,250

 

25

*

Cannae Holdings Inc.

917

 

25

 

Golub Capital BDC Inc.

1,301

 

25

 

1st Source Corp.

500

 

23

 

First Bancorp

600

 

22

*

SVB Financial Group

100

 

21

 

First Financial Northwest Inc.

1,386

 

21

 

Ares Commercial Real Estate Corp.

1,326

 

20

 

First Financial Bankshares Inc.

600

 

20

 

Ally Financial Inc.

600

 

20

 

Peapack Gladstone Financial Corp.

700

 

20

 

Independent Bank Corp.

900

 

19

 

Solar Capital Ltd.

900

 

19

 

Erie Indemnity Co. Class A

100

 

19

 

Southern National Bancorp of Virginia Inc.

1,200

 

18

*

Elevate Credit Inc.

4,220

 

18

 

State Auto Financial Corp.

500

 

16

 

FGL Holdings

2,026

 

16

 

National General Holdings Corp.

700

 

16

 

Reinsurance Group of America Inc. Class A

100

 

16

 

Prosperity Bancshares Inc.

200

 

14

 

KKR Real Estate Finance Trust Inc.

700

 

14

*

World Acceptance Corp.

100

 

13

 

Northwest Bancshares Inc.

763

 

13

*

Atlantic Capital Bancshares Inc.

700

 

12

 

PJT Partners Inc.

294

 

12

 

OceanFirst Financial Corp.

500

 

12

 

Stewart Information Services Corp.

300

 

12

 

WisdomTree Investments Inc.

2,200

 

12

 

Preferred Bank

200

 

11

 

BlackRock TCP Capital Corp.

700

 

10

 

Westwood Holdings Group Inc.

325

 

9

 

Independent Bank Corp.

100

 

7

 

Amalgamated Bank Class A

405

 

7

 

Peoples Bancorp Inc.

200

 

6

 

Prudential Financial Inc.

70

 

6

 

TPG Specialty Lending Inc.

300

 

6

 

Axis Capital Holdings Ltd.

89

 

6

 

Lakeland Bancorp Inc.

380

 

6

 

Walker & Dunlop Inc.

100

 

6

*

Texas Capital Bancshares Inc.

100

 

5

 

19


 

Growth and Income Fund

 

 

 

 

 

 

Market

 

 

 

 

Value

 

 

Shares

 

($000)

 

Charles Schwab Corp.

130

 

5

 

WSFS Financial Corp.

100

 

4

 

Ameris Bancorp

100

 

4

*

eHealth Inc.

59

 

4

 

QCR Holdings Inc.

100

 

4

 

Granite Point Mortgage Trust Inc.

200

 

4

 

PacWest Bancorp

100

 

4

 

First Mid Bancshares Inc.

100

 

3

 

Sandy Spring Bancorp Inc.

100

 

3

 

ARMOUR Residential REIT Inc.

200

 

3

 

Great Western Bancorp Inc.

100

 

3

 

Meta Financial Group Inc.

100

 

3

 

HomeTrust Bancshares Inc.

122

 

3

 

AG Mortgage Investment Trust Inc.

200

 

3

 

Heritage Insurance Holdings Inc.

200

 

3

 

Home Bancorp Inc.

76

 

3

 

Old Line Bancshares Inc.

100

 

3

*

HomeStreet Inc.

100

 

3

 

Annaly Capital Management Inc.

300

 

3

 

Nelnet Inc. Class A

38

 

2

 

Cadence BanCorp Class A

132

 

2

 

Trustmark Corp.

66

 

2

 

Janus Henderson Group plc

100

 

2

 

Eagle Bancorp Inc.

50

 

2

 

Oxford Square Capital Corp.

352

 

2

 

First Midwest Bancorp Inc.

100

 

2

 

TCF Financial Corp.

50

 

2

 

PennantPark Investment Corp.

300

 

2

 

Opus Bank

83

 

2

 

BGC Partners Inc. Class A

300

 

2

*

Columbia Financial Inc.

100

 

2

*

LendingClub Corp.

100

 

1

 

Old Second Bancorp Inc.

100

 

1

 

Prospect Capital Corp.

100

 

1

 

Oppenheimer Holdings Inc. Class A

13

 

 

Veritex Holdings Inc.

11

 

 

Medley Capital Corp.

100

 

*

Spirit of Texas Bancshares Inc.

1

 

 

 

 

 

1,401,652

 

 

 

 

 

Health Care (13.5%)

 

 

 

 

Johnson & Johnson

1,327,167

 

171,709

 

Merck & Co. Inc.

1,583,281

 

133,281

 

AbbVie Inc.

1,420,591

 

107,567

 

UnitedHealth Group Inc.

311,616

 

67,720

 

Abbott Laboratories

730,659

 

61,134

 

Pfizer Inc.

1,648,920

 

59,246

 

Bristol-Myers Squibb Co.

1,110,922

 

56,335

 

Medtronic plc

498,742

 

54,173

 

Eli Lilly & Co.

478,580

 

53,520

 

Amgen Inc.

211,661

 

40,959

 

Thermo Fisher Scientific Inc.

139,381

 

40,598

 

Agilent Technologies Inc.

499,702

 

38,292

 

HCA Healthcare Inc.

297,818

 

35,863

 

Becton Dickinson and Co.

138,343

 

34,995

 

Cardinal Health Inc.

717,657

 

33,866

*

IQVIA Holdings Inc.

210,971

 

31,515

 

Gilead Sciences Inc.

493,301

 

31,265

 

Stryker Corp.

126,790

 

27,425

 

McKesson Corp.

191,440

 

26,162

*

Centene Corp.

586,091

 

25,354

*

Vertex Pharmaceuticals Inc.

133,520

 

22,621

 

CVS Health Corp.

316,848

 

19,984

*

Biogen Inc.

85,670

 

19,946

 

Humana Inc.

75,251

 

19,239

*

Hologic Inc.

359,899

 

18,171

*

Edwards Lifesciences Corp.

73,400

 

16,141

*

Waters Corp.

70,054

 

15,638

 

Cerner Corp.

229,334

 

15,634

*

Intuitive Surgical Inc.

27,861

 

15,043

*

Incyte Corp.

192,056

 

14,256

 

Allergan plc

84,500

 

14,221

 

Cooper Cos. Inc.

45,518

 

13,519

 

Danaher Corp.

90,062

 

13,008

 

Universal Health Services Inc. Class B

86,429

 

12,856

 

Zoetis Inc.

98,600

 

12,285

*

Varian Medical Systems Inc.

101,840

 

12,128

*

Henry Schein Inc.

190,232

 

12,080

 

Anthem Inc.

45,136

 

10,837

*

Boston Scientific Corp.

247,531

 

10,072

*

Mettler-Toledo International Inc.

13,468

 

9,487

 

Baxter International Inc.

105,270

 

9,208

 

Cigna Corp.

60,022

 

9,111

*

IDEXX Laboratories Inc.

26,296

 

7,151

 

20


 

Growth and Income Fund

 

 

 

 

 

 

Market

 

 

 

 

Value

 

 

Shares

 

($000)

*

Alexion Pharmaceuticals Inc.

61,240

 

5,998

 

ResMed Inc.

30,480

 

4,118

 

Dentsply Sirona Inc.

72,816

 

3,882

 

AmerisourceBergen Corp. Class A

43,400

 

3,573

*

Mylan NV

162,592

 

3,216

*

Horizon Therapeutics plc

114,500

 

3,118

*

Regeneron Pharmaceuticals Inc.

11,080

 

3,074

*

Molina Healthcare Inc.

27,500

 

3,017

*

QIAGEN NV

83,100

 

2,740

 

Zimmer Biomet Holdings Inc.

19,610

 

2,692

*

Align Technology Inc.

14,522

 

2,627

*

Celgene Corp.

25,300

 

2,512

 

Bruker Corp.

55,000

 

2,416

*

Nevro Corp.

26,400

 

2,270

*

ABIOMED Inc.

12,350

 

2,197

*,^

Lannett Co. Inc.

165,100

 

1,849

*

Elanco Animal Health Inc.

52,600

 

1,399

 

Encompass Health Corp.

16,600

 

1,050

*

Allscripts Healthcare Solutions Inc.

91,100

 

1,000

*

Pacira BioSciences Inc.

25,300

 

963

*

ICON plc

5,000

 

737

*

Myriad Genetics Inc.

23,966

 

686

*

Ionis Pharmaceuticals Inc.

10,700

 

641

*

MyoKardia Inc.

11,600

 

605

*

Sage Therapeutics Inc.

4,300

 

603

*

Premier Inc. Class A

18,900

 

547

*

AMAG Pharmaceuticals Inc.

44,700

 

516

*

Magellan Health Inc.

7,678

 

477

*

MEDNAX Inc.

21,000

 

475

*

PTC Therapeutics Inc.

14,000

 

474

*

Arrowhead Pharmaceuticals Inc.

16,563

 

467

*

United Therapeutics Corp.

5,300

 

423

*

Wright Medical Group NV

18,600

 

384

*

Neogen Corp.

5,300

 

361

*

Insmed Inc.

19,300

 

341

*

Editas Medicine Inc.

14,700

 

334

*

LivaNova plc

4,500

 

332

*,^

Karyopharm Therapeutics Inc.

31,300

 

301

*

OraSure Technologies Inc.

36,999

 

276

*,^

Omeros Corp.

16,400

 

268

*

Catalent Inc.

5,300

 

253

 

Patterson Cos. Inc.

12,800

 

228

 

Quest Diagnostics Inc.

2,100

 

225

*,^

Cronos Group Inc.

23,100

 

209

*

Triple-S Management Corp. Class B

15,300

 

205

*

Neurocrine Biosciences Inc.

2,085

 

188

*

Exelixis Inc.

10,600

 

188

*

Assertio Therapeutics Inc.

145,300

 

186

*

Amedisys Inc.

1,400

 

183

*

Radius Health Inc.

6,500

 

167

*

Integer Holdings Corp.

2,100

 

159

*

Eagle Pharmaceuticals Inc.

2,794

 

158

*

Haemonetics Corp.

1,200

 

151

*

Halozyme Therapeutics Inc.

8,280

 

128

 

PerkinElmer Inc.

1,500

 

128

*

Ardelyx Inc.

26,600

 

125

*

Zogenix Inc.

3,000

 

120

*

Masimo Corp.

800

 

119

*

Medpace Holdings Inc.

1,400

 

118

*

Accuray Inc.

38,368

 

106

 

Taro Pharmaceutical Industries Ltd.

1,400

 

106

*

CytomX Therapeutics Inc.

13,300

 

98

*,^

AcelRx Pharmaceuticals Inc.

42,156

 

93

*

Momenta Pharmaceuticals Inc.

6,900

 

89

*

Cerus Corp.

17,300

 

89

 

Chemed Corp.

200

 

84

*

Global Blood Therapeutics Inc.

1,689

 

82

*,^

Corbus Pharmaceuticals Holdings Inc.

16,500

 

80

*

HMS Holdings Corp.

2,300

 

79

*

Innoviva Inc.

7,502

 

79

*

CorVel Corp.

1,030

 

78

*

Heron Therapeutics Inc.

4,100

 

76

*

IVERIC bio Inc.

66,480

 

75

 

Hill-Rom Holdings Inc.

700

 

74

*

AngioDynamics Inc.

3,948

 

73

*

Alkermes plc

3,600

 

70

*

ACADIA Pharmaceuticals Inc.

1,900

 

68

*

Retrophin Inc.

5,800

 

67

*

ImmunoGen Inc.

27,600

 

67

*

Avantor Inc.

4,400

 

65

 

Owens & Minor Inc.

11,000

 

64

*

CareDx Inc.

2,700

 

61

*

Immunomedics Inc.

4,600

 

61

 

21


 

Growth and Income Fund

 

 

 

 

 

 

Market

 

 

 

 

Value

 

 

Shares

 

($000)

*,^

Dynavax Technologies Corp. Class A

15,699

 

56

*

Coherus Biosciences Inc.

2,600

 

53

 

Luminex Corp.

2,545

 

53

*

NextGen Healthcare Inc.

3,277

 

51

*

Nektar Therapeutics Class A

2,800

 

51

*

Cutera Inc.

1,658

 

49

*

Cymabay Therapeutics Inc.

9,430

 

48

*

uniQure NV

1,200

 

47

*

BioMarin Pharmaceutical Inc.

700

 

47

*

Neoleukin Therapeutics Inc.

16,329

 

47

*

OPKO Health Inc.

20,700

 

43

*

Tivity Health Inc.

2,467

 

41

*

Akebia Therapeutics Inc.

10,000

 

39

*

Protagonist Therapeutics Inc.

3,225

 

39

*

GenMark Diagnostics Inc.

6,128

 

37

*

ANI Pharmaceuticals Inc.

500

 

36

*

BioDelivery Sciences International Inc.

8,200

 

35

*

Anika Therapeutics Inc.

600

 

33

*

HealthStream Inc.

1,200

 

31

*

Alder Biopharmaceuticals Inc.

1,600

 

30

*

Select Medical Holdings Corp.

1,810

 

30

 

Meridian Bioscience Inc.

3,100

 

29

*

Fluidigm Corp.

6,100

 

28

*

Audentes Therapeutics Inc.

1,000

 

28

 

Perrigo Co. plc

500

 

28

*

Akcea Therapeutics Inc.

1,806

 

28

*

Aurinia Pharmaceuticals Inc.

5,119

 

27

*

Strongbridge Biopharma plc

11,099

 

27

*

Agenus Inc.

10,113

 

26

*

WellCare Health Plans Inc.

100

 

26

*

BioCryst Pharmaceuticals Inc.

8,700

 

25

*

Clovis Oncology Inc.

6,300

 

25

*

Oxford Immunotec Global plc

1,400

 

23

*

AtriCure Inc.

861

 

22

*

Achillion Pharmaceuticals Inc.

5,868

 

21

*

Genomic Health Inc.

300

 

20

*,^

MannKind Corp.

15,900

 

20

*

Chimerix Inc.

8,044

 

19

*

Insulet Corp.

100

 

17

*

Illumina Inc.

51

 

16

*

Veeva Systems Inc. Class A

100

 

15

 

LeMaitre Vascular Inc.

427

 

15

*

Flexion Therapeutics Inc.

1,000

 

14

*

Intra-Cellular Therapies Inc.

1,800

 

13

*

Diplomat Pharmacy Inc.

2,608

 

13

*

Solid Biosciences Inc.

1,200

 

12

*

Abeona Therapeutics Inc.

5,300

 

12

*

Voyager Therapeutics Inc.

680

 

12

*

Prothena Corp. plc

1,400

 

11

*

Compugen Ltd.

2,402

 

10

*,^

CEL-SCI Corp.

1,000

 

9

*

Five Prime Therapeutics Inc.

2,300

 

9

*

Assembly Biosciences Inc.

900

 

9

*

Dicerna Pharmaceuticals Inc.

600

 

9

*

Alnylam Pharmaceuticals Inc.

100

 

8

*

Zymeworks Inc.

300

 

7

*

Omnicell Inc.

100

 

7

 

Computer Programs & Systems Inc.

305

 

7

*

Otonomy Inc.

2,600

 

6

*

Quidel Corp.

100

 

6

*

Hanger Inc.

300

 

6

*

Calithera Biosciences Inc.

1,900

 

6

*

DaVita Inc.

100

 

6

*

Corcept Therapeutics Inc.

400

 

6

*

Jounce Therapeutics Inc.

1,600

 

5

*

Syneos Health Inc.

100

 

5

*

La Jolla Pharmaceutical Co.

500

 

4

*

Vanda Pharmaceuticals Inc.

327

 

4

*

Biohaven Pharmaceutical Holding Co. Ltd.

100

 

4

*

Avanos Medical Inc.

100

 

4

*

REGENXBIO Inc.

100

 

4

*

GlycoMimetics Inc.

800

 

3

*

Collegium Pharmaceutical Inc.

300

 

3

*

Intersect ENT Inc.

200

 

3

*

CTI BioPharma Corp.

3,994

 

3

*

Moderna Inc.

200

 

3

*

Merit Medical Systems Inc.

100

 

3

*

Affimed NV

980

 

3

 

22


 

Growth and Income Fund

 

 

 

 

 

 

Market

 

 

 

 

Value

 

 

Shares

 

($000)

*

Varex Imaging Corp.

100

 

3

*

MacroGenics Inc.

200

 

3

*

Apellis Pharmaceuticals Inc.

100

 

2

*

Veracyte Inc.

100

 

2

*

RTI Surgical Holdings Inc.

802

 

2

 

Invacare Corp.

300

 

2

*

Tenet Healthcare Corp.

100

 

2

*

Puma Biotechnology Inc.

200

 

2

*

Aimmune Therapeutics Inc.

100

 

2

*

WaVe Life Sciences Ltd.

100

 

2

*

ChemoCentryx Inc.

300

 

2

*

Aduro Biotech Inc.

1,840

 

2

*

Enzo Biochem Inc.

500

 

2

*

Menlo Therapeutics Inc.

400

 

2

*

Concert Pharmaceuticals Inc.

300

 

2

*

Rockwell Medical Inc.

636

 

2

*

ArQule Inc.

200

 

1

*

Sientra Inc.

206

 

1

*

ElectroCore Inc.

600

 

1

*

Sesen Bio Inc.

1,100

 

1

*

Option Care Health Inc.

400

 

1

*

Covetrus Inc.

100

 

1

*

Adverum Biotechnologies Inc.

200

 

1

*

XBiotech Inc.

100

 

1

*

Cross Country Healthcare Inc.

100

 

1

*

Mallinckrodt plc

400

 

1

*

Endo International plc

300

 

1

*

Foamix Pharmaceuticals Ltd.

300

 

1

*

Genocea Biosciences Inc.

300

 

1

*

Inovio Pharmaceuticals Inc.

397

 

1

*

Myovant Sciences Ltd.

132

 

1

*

Dermira Inc.

100

 

1

*

vTv Therapeutics Inc. Class A

406

 

1

*

Oncternal Therapeutics Inc.

100

 

1

*

Senseonics Holdings Inc.

400

 

*

PolarityTE Inc.

100

 

*

Durect Corp.

100

 

*

Arbutus Biopharma Corp.

100

 

*

Fortress Biotech Inc.

100

 

*

Viveve Medical Inc.

1

 

 

 

 

 

1,523,378

Industrials (9.4%)

 

 

 

 

Honeywell International Inc.

477,353

 

80,768

 

Lockheed Martin Corp.

182,695

 

71,262

 

Boeing Co.

128,525

 

48,900

 

Caterpillar Inc.

342,947

 

43,318

 

Union Pacific Corp.

246,890

 

39,991

 

L3Harris Technologies Inc.

173,563

 

36,212

 

Johnson Controls International plc

796,283

 

34,949

*

United Airlines Holdings Inc.

380,099

 

33,605

 

United Technologies Corp.

245,040

 

33,453

 

Northrop Grumman Corp.

88,743

 

33,260

 

Raytheon Co.

167,994

 

32,959

 

Expeditors International of Washington Inc.

410,270

 

30,479

 

Waste Management Inc.

238,441

 

27,421

 

Cummins Inc.

154,923

 

25,201

 

AMETEK Inc.

268,834

 

24,684

 

Dover Corp.

244,961

 

24,388

 

WW Grainger Inc.

77,997

 

23,177

 

Nielsen Holdings plc

1,076,163

 

22,868

 

Illinois Tool Works Inc.

139,288

 

21,797

 

General Electric Co.

2,346,957

 

20,982

 

Southwest Airlines Co.

362,660

 

19,587

 

PACCAR Inc.

273,647

 

19,158

 

Pentair plc

504,648

 

19,076

 

Roper Technologies Inc.

52,924

 

18,873

 

CH Robinson Worldwide Inc.

213,665

 

18,115

 

Eaton Corp. plc

216,830

 

18,029

 

Quanta Services Inc.

443,580

 

16,767

 

Ingersoll-Rand plc

135,040

 

16,638

 

Delta Air Lines Inc.

279,678

 

16,109

 

CSX Corp.

228,800

 

15,849

 

3M Co.

93,500

 

15,371

 

United Parcel Service Inc. Class B

121,100

 

14,510

*

Copart Inc.

148,693

 

11,945

 

Emerson Electric Co.

162,756

 

10,882

 

Cintas Corp.

38,360

 

10,284

 

Masco Corp.

233,000

 

9,711

 

Rockwell Automation Inc.

55,713

 

9,182

 

Republic Services Inc. Class A

92,060

 

7,968

 

Spirit AeroSystems Holdings Inc. Class A

93,048

 

7,652

 

Allison Transmission Holdings Inc.

143,700

 

6,761

 

23


 

Growth and Income Fund

 

 

 

 

 

Shares

 

Market
Value
·
($000

)

 

Fortune Brands Home & Security Inc.

 

100,800

 

5,514

 

 

Verisk Analytics Inc. Class A

 

32,890

 

5,201

 

 

Norfolk Southern Corp.

 

28,260

 

5,077

 

 

General Dynamics Corp.

 

25,534

 

4,666

 

 

TransDigm Group Inc.

 

8,120

 

4,228

 

 

Alaska Air Group Inc.

 

61,420

 

3,987

 

*

IAA Inc.

 

93,100

 

3,885

 

 

Fastenal Co.

 

110,701

 

3,617

 

 

Robert Half International Inc.

 

56,518

 

3,146

 

 

nVent Electric plc

 

124,900

 

2,753

 

 

Allegion plc

 

26,350

 

2,731

 

*

HD Supply Holdings Inc.

 

62,500

 

2,448

 

 

Parker-Hannifin Corp.

 

13,260

 

2,395

 

 

KAR Auction Services Inc.

 

63,700

 

1,564

 

 

Acuity Brands Inc.

 

11,200

 

1,510

 

 

Insperity Inc.

 

11,056

 

1,090

 

 

Oshkosh Corp.

 

12,500

 

948

 

 

Fluor Corp.

 

49,100

 

939

 

*

Aerojet Rocketdyne Holdings Inc.

 

17,393

 

879

 

 

ManpowerGroup Inc.

 

9,600

 

809

 

 

Macquarie Infrastructure Corp.

 

18,572

 

733

 

 

Curtiss-Wright Corp.

 

5,381

 

696

 

*

Continental Building Products Inc.

 

24,100

 

658

 

*

Resideo Technologies Inc.

 

45,600

 

654

 

 

Moog Inc. Class A

 

7,700

 

625

 

 

Canadian Pacific Railway Ltd.

 

2,000

 

445

 

 

Graco Inc.

 

8,105

 

373

 

 

Korn Ferry

 

9,275

 

358

 

*

Great Lakes Dredge & Dock Corp.

 

33,900

 

354

 

 

Snap-on Inc.

 

2,200

 

344

 

 

ArcBest Corp.

 

10,880

 

331

 

 

Armstrong World Industries Inc.

 

3,300

 

319

 

 

Altra Industrial Motion Corp.

 

11,400

 

316

 

*

TriNet Group Inc.

 

4,900

 

305

 

 

MSC Industrial Direct Co. Inc. Class A

 

4,000

 

290

 

 

American Airlines Group Inc.

 

8,920

 

241

 

 

Tetra Tech Inc.

 

2,649

 

230

 

 

Brady Corp. Class A

 

4,300

 

228

 

*

MasTec Inc.

 

3,300

 

214

 

*

Gardner Denver Holdings Inc.

 

5,939

 

168

 

 

Hillenbrand Inc.

 

5,300

 

164

 

 

Deluxe Corp.

 

3,300

 

162

 

*

Milacron Holdings Corp.

 

9,600

 

160

 

 

Arconic Inc.

 

6,010

 

156

 

 

Timken Co.

 

3,500

 

152

 

 

Ritchie Bros Auctioneers Inc.

 

3,800

 

152

 

*

Generac Holdings Inc.

 

1,900

 

149

 

 

Huntington Ingalls Industries Inc.

 

700

 

148

 

*

Atkore International Group Inc.

 

4,703

 

143

 

*

AECOM

 

3,634

 

137

 

*

NOW Inc.

 

10,600

 

122

 

 

HNI Corp.

 

3,300

 

117

 

*

Masonite International Corp.

 

1,900

 

110

 

 

Knoll Inc.

 

3,700

 

94

 

 

Hexcel Corp.

 

1,100

 

90

 

*

Harsco Corp.

 

4,400

 

83

 

 

Owens Corning

 

1,300

 

82

 

 

Werner Enterprises Inc.

 

2,300

 

81

 

 

Flowserve Corp.

 

1,700

 

79

 

 

Mobile Mini Inc.

 

2,100

 

77

 

*

BrightView Holdings Inc.

 

4,482

 

77

 

 

Applied Industrial Technologies Inc.

 

1,300

 

74

 

 

Heidrick & Struggles International Inc.

 

2,700

 

74

 

 

Schneider National Inc. Class B

 

3,100

 

67

 

 

Toro Co.

 

900

 

66

 

*

Rexnord Corp.

 

2,419

 

65

 

*

TrueBlue Inc.

 

2,700

 

57

 

*

Cimpress NV

 

400

 

53

 

*

American Superconductor Corp.

 

6,454

 

51

 

*

Civeo Corp.

 

39,600

 

50

 

 

Kforce Inc.

 

1,300

 

49

 

*

LB Foster Co. Class A

 

2,194

 

48

 

 

Barnes Group Inc.

 

800

 

41

 

 

Comfort Systems USA Inc.

 

900

 

40

 

*

Cornerstone Building Brands Inc.

 

6,500

 

39

 

 

EnPro Industries Inc.

 

500

 

34

 

*

Titan Machinery Inc.

 

2,120

 

30

 

*

Textainer Group Holdings Ltd.

 

3,013

 

30

 

*

Gibraltar Industries Inc.

 

600

 

28

 

*

Thermon Group Holdings Inc.

 

1,180

 

27

 

 

24


 

Growth and Income Fund

 

 

 

 

 

Shares

 

Market
Value
·
($000

)

*

Builders FirstSource Inc.

 

1,100

 

23

 

 

Forrester Research Inc.

 

700

 

23

 

 

Pitney Bowes Inc.

 

4,800

 

22

 

*

Covenant Transportation Group Inc. Class A

 

1,300

 

21

 

*

Meritor Inc.

 

1,100

 

20

 

 

Kimball International Inc. Class B

 

1,000

 

19

 

*

TriMas Corp.

 

620

 

19

 

*

Hub Group Inc. Class A

 

400

 

19

 

*

CBIZ Inc.

 

791

 

19

 

*

Corp America Airports SA

 

4,015

 

18

 

*

Gates Industrial Corp. plc

 

1,800

 

18

 

 

Spartan Motors Inc.

 

1,280

 

18

 

 

Advanced Drainage Systems Inc.

 

500

 

16

 

 

REV Group Inc.

 

1,400

 

16

 

 

Wabash National Corp.

 

1,100

 

16

 

*

ARC Document Solutions Inc.

 

11,400

 

16

 

 

Stanley Black & Decker Inc.

 

100

 

14

 

^

ADT Inc.

 

2,200

 

14

 

*

Vivint Solar Inc.

 

2,062

 

14

 

*

Upwork Inc.

 

1,000

 

13

 

*

Armstrong Flooring Inc.

 

2,060

 

13

 

 

Hubbell Inc. Class B

 

100

 

13

 

*

Echo Global Logistics Inc.

 

514

 

12

 

 

Landstar System Inc.

 

100

 

11

 

 

Briggs & Stratton Corp.

 

1,800

 

11

 

*

BMC Stock Holdings Inc.

 

400

 

10

 

*

JELD-WEN Holding Inc.

 

540

 

10

 

*

Foundation Building Materials Inc.

 

600

 

9

 

 

Lincoln Electric Holdings Inc.

 

100

 

9

 

 

EMCOR Group Inc.

 

100

 

9

 

 

Luxfer Holdings plc

 

498

 

8

 

 

AGCO Corp.

 

100

 

8

 

 

Exponent Inc.

 

100

 

7

 

 

Fortive Corp.

 

100

 

7

 

 

EnerSys

 

100

 

7

 

*

Commercial Vehicle Group Inc.

 

900

 

7

 

*

ASGN Inc.

 

100

 

6

 

 

Raven Industries Inc.

 

157

 

5

 

 

Donaldson Co. Inc.

 

100

 

5

 

 

GrafTech International Ltd.

 

400

 

5

 

 

Textron Inc.

 

100

 

5

 

 

Ennis Inc.

 

239

 

5

 

*

WESCO International Inc.

 

100

 

5

 

 

AO Smith Corp.

 

100

 

5

 

*

Evoqua Water Technologies Corp.

 

263

 

4

 

 

Universal Logistics Holdings Inc.

 

186

 

4

 

 

CRA International Inc.

 

100

 

4

 

 

Insteel Industries Inc.

 

200

 

4

 

*

SPX Corp.

 

100

 

4

 

*

SPX FLOW Inc.

 

100

 

4

 

 

Rush Enterprises Inc. Class A

 

100

 

4

 

 

Maxar Technologies Inc.

 

500

 

4

 

 

Columbus McKinnon Corp.

 

100

 

4

 

 

Arcosa Inc.

 

100

 

3

 

 

Federal Signal Corp.

 

100

 

3

 

*

Advanced Disposal Services Inc.

 

100

 

3

 

 

Caesarstone Ltd.

 

195

 

3

 

*

Roadrunner Transportation Systems Inc.

 

300

 

3

 

*

Kornit Digital Ltd.

 

100

 

3

 

 

LSC Communications Inc.

 

2,200

 

3

 

*

GMS Inc.

 

100

 

3

 

*

Manitex International Inc.

 

400

 

3

 

*

MRC Global Inc.

 

200

 

2

 

 

Resources Connection Inc.

 

134

 

2

 

 

Marten Transport Ltd.

 

100

 

2

 

 

ACCO Brands Corp.

 

204

 

2

 

*

DXP Enterprises Inc.

 

57

 

2

 

 

Trinity Industries Inc.

 

100

 

2

 

*

General Finance Corp.

 

215

 

2

 

*

Genco Shipping & Trading Ltd.

 

200

 

2

 

 

Quanex Building Products Corp.

 

100

 

2

 

*

USA Truck Inc.

 

224

 

2

 

*

Huron Consulting Group Inc.

 

26

 

2

 

*

CECO Environmental Corp.

 

225

 

2

 

*

YRC Worldwide Inc.

 

500

 

2

 

 

Quad/Graphics Inc.

 

100

 

1

 

*

Babcock & Wilcox Enterprises Inc.

 

200

 

1

 

*

Mistras Group Inc.

 

28

 

 

*

Orion Group Holdings Inc.

 

100

 

 

 

Titan International Inc.

 

100

 

 

 

 

 

 

 

1,061,509

 

Information Technology (21.5%)

 

 

 

 

 

 

Microsoft Corp.

 

3,782,916

 

525,939

 

 

Apple Inc.

 

2,009,907

 

450,159

 

 

Visa Inc. Class A

 

934,471

 

160,738

 

 

25


 

Growth and Income Fund

 

 

 

 

 

Shares

 

Market
Value
·
($000

)

 

Mastercard Inc. Class A

 

409,901

 

111,317

 

 

Intel Corp.

 

1,420,584

 

73,203

 

 

Cisco Systems Inc.

 

1,385,449

 

68,455

 

 

Texas Instruments Inc.

 

420,705

 

54,372

 

 

Accenture plc Class A

 

265,862

 

51,139

 

 

Oracle Corp.

 

909,585

 

50,054

 

*

PayPal Holdings Inc.

 

406,865

 

42,147

 

 

QUALCOMM Inc.

 

549,239

 

41,896

 

*

Cadence Design Systems Inc.

 

631,483

 

41,728

 

 

Fidelity National Information Services Inc.

 

287,240

 

38,134

 

 

NVIDIA Corp.

 

203,708

 

35,459

 

 

HP Inc.

 

1,858,502

 

35,163

 

*

Adobe Inc.

 

122,029

 

33,710

 

*

VeriSign Inc.

 

164,980

 

31,120

 

 

Automatic Data Processing Inc.

 

187,343

 

30,241

 

*

Fortinet Inc.

 

364,638

 

27,990

 

 

International Business Machines Corp.

 

187,757

 

27,304

 

 

Xilinx Inc.

 

273,861

 

26,263

 

*

Synopsys Inc.

 

188,572

 

25,881

 

 

Broadcom Inc.

 

85,209

 

23,524

 

*

Advanced Micro Devices Inc.

 

790,105

 

22,905

 

 

Lam Research Corp.

 

96,072

 

22,203

 

*

salesforce.com Inc.

 

128,519

 

19,077

 

 

Seagate Technology plc

 

344,407

 

18,526

 

*

Qorvo Inc.

 

247,931

 

18,382

 

 

Analog Devices Inc.

 

143,970

 

16,086

 

 

DXC Technology Co.

 

534,800

 

15,777

 

 

Citrix Systems Inc.

 

162,019

 

15,638

 

 

Broadridge Financial Solutions Inc.

 

123,853

 

15,411

 

 

Motorola Solutions Inc.

 

86,295

 

14,705

 

*

Akamai Technologies Inc.

 

157,500

 

14,392

 

 

Paychex Inc.

 

158,732

 

13,138

 

*

Micron Technology Inc.

 

296,100

 

12,688

 

 

Leidos Holdings Inc.

 

147,538

 

12,671

 

 

Applied Materials Inc.

 

250,100

 

12,480

 

 

Intuit Inc.

 

44,632

 

11,869

 

 

NetApp Inc.

 

194,800

 

10,229

 

*

Keysight Technologies Inc.

 

103,933

 

10,107

 

 

Western Union Co.

 

423,587

 

9,814

 

 

Maxim Integrated Products Inc.

 

147,445

 

8,539

 

*

F5 Networks Inc.

 

60,800

 

8,537

 

*

Fiserv Inc.

 

76,502

 

7,925

 

 

Juniper Networks Inc.

 

319,800

 

7,915

 

 

Symantec Corp.

 

332,250

 

7,851

 

 

Hewlett Packard Enterprise Co.

 

503,067

 

7,631

 

*

Autodesk Inc.

 

42,510

 

6,279

 

 

FLIR Systems Inc.

 

106,400

 

5,596

 

*

Dropbox Inc. Class A

 

261,600

 

5,276

 

 

KLA Corp.

 

33,013

 

5,264

 

*

Palo Alto Networks Inc.

 

22,500

 

4,586

 

*

Arista Networks Inc.

 

16,798

 

4,013

 

 

Teradyne Inc.

 

57,100

 

3,307

 

*

ANSYS Inc.

 

14,540

 

3,219

 

 

Cognizant Technology Solutions Corp. Class A

 

52,336

 

3,154

 

*

GoDaddy Inc. Class A

 

42,200

 

2,784

 

*

CoreLogic Inc.

 

49,600

 

2,295

 

*

Black Knight Inc.

 

35,500

 

2,168

 

 

Corning Inc.

 

72,637

 

2,072

 

*

FleetCor Technologies Inc.

 

6,760

 

1,939

 

 

Amdocs Ltd.

 

26,500

 

1,752

 

*

Pure Storage Inc. Class A

 

103,300

 

1,750

 

*

Flex Ltd.

 

164,200

 

1,718

 

 

Global Payments Inc.

 

8,171

 

1,299

 

 

VMware Inc. Class A

 

8,200

 

1,230

 

 

InterDigital Inc.

 

23,300

 

1,223

 

*

CommVault Systems Inc.

 

24,900

 

1,113

 

 

Xerox Holdings Corp.

 

30,660

 

917

 

 

Perspecta Inc.

 

34,600

 

904

 

 

Kulicke & Soffa Industries Inc.

 

37,407

 

878

 

*

Tower Semiconductor Ltd.

 

45,200

 

870

 

*

New Relic Inc.

 

13,391

 

823

 

 

j2 Global Inc.

 

9,000

 

817

 

*

Ambarella Inc.

 

12,000

 

754

 

*

Square Inc.

 

11,900

 

737

 

 

National Instruments Corp.

 

16,900

 

710

 

 

Genpact Ltd.

 

18,200

 

705

 

*

Cirrus Logic Inc.

 

10,700

 

573

 

 

Sabre Corp.

 

24,600

 

551

 

*

Manhattan Associates Inc.

 

6,800

 

549

 

*

Ciena Corp.

 

13,100

 

514

 

*

Semtech Corp.

 

10,100

 

491

 

*

BlackBerry Ltd.

 

91,800

 

482

 

 

Xperi Corp.

 

22,800

 

471

 

*

Extreme Networks Inc.

 

63,600

 

463

 

*

Rambus Inc.

 

35,100

 

461

 

*

Fitbit Inc. Class A

 

120,800

 

460

 

*

Cardtronics plc Class A

 

15,000

 

454

 

*

Pluralsight Inc. Class A

 

25,868

 

434

 

*

Inphi Corp.

 

6,500

 

397

 

 

26


 

Growth and Income Fund

 

 

 

 

Shares

 

Market
Value
·
($000

)

*

MACOM Technology Solutions Holdings Inc.

 

17,400

 

374

 

*

CommScope Holding Co. Inc.

 

27,800

 

327

 

*

Tenable Holdings Inc.

 

14,600

 

327

 

*

Workiva Inc. Class A

 

7,200

 

316

 

*

Synaptics Inc.

 

7,800

 

312

 

 

Skyworks Solutions Inc.

 

3,900

 

309

 

*

Knowles Corp.

 

14,856

 

302

 

*

NetScout Systems Inc.

 

13,000

 

300

 

 

Dolby Laboratories Inc. Class A

 

4,400

 

284

 

*

SunPower Corp. Class A

 

25,400

 

279

 

 

LogMeIn Inc.

 

3,900

 

277

 

*

Ceridian HCM Holding Inc.

 

5,600

 

276

 

*

Conduent Inc.

 

41,500

 

258

 

*

NCR Corp.

 

7,200

 

227

 

 

CDK Global Inc.

 

4,700

 

226

 

*

Blackline Inc.

 

4,700

 

225

 

*,^

GreenSky Inc. Class A

 

32,600

 

223

 

*

Pivotal Software Inc. Class A

 

14,600

 

218

 

*

Viavi Solutions Inc.

 

15,500

 

217

 

 

SS&C Technologies Holdings Inc.

 

4,200

 

217

 

*

First Solar Inc.

 

3,600

 

209

 

*

Box Inc.

 

12,000

 

199

 

*

Cornerstone OnDemand Inc.

 

3,600

 

197

 

 

NIC Inc.

 

8,700

 

180

 

*

Radware Ltd.

 

7,200

 

175

 

 

ADTRAN Inc.

 

14,900

 

169

 

 

Hollysys Automation Technologies Ltd.

 

11,000

 

167

 

 

Progress Software Corp.

 

4,300

 

164

 

 

Workday Inc. Class A

 

900

 

153

 

*

Cision Ltd.

 

18,900

 

145

 

*

NeoPhotonics Corp.

 

23,000

 

140

 

*

Smartsheet Inc. Class A

 

3,700

 

133

 

*

Teradata Corp.

 

4,100

 

127

 

*

Photronics Inc.

 

11,663

 

127

 

*

Nutanix Inc.

 

4,500

 

118

 

*

FireEye Inc.

 

7,800

 

104

 

*

Casa Systems Inc.

 

12,900

 

101

 

*

Trimble Inc.

 

2,500

 

97

 

*

Mimecast Ltd.

 

2,600

 

93

 

*

Enphase Energy Inc.

 

3,900

 

87

 

 

ManTech International Corp. Class A

 

1,145

 

82

 

 

Blackbaud Inc.

 

900

 

81

 

*

SMART Global Holdings Inc.

 

3,100

 

79

 

*

SVMK Inc.

 

4,500

 

77

 

*

Yext Inc.

 

4,745

 

75

 

*

3D Systems Corp.

 

8,400

 

68

 

*

Bottomline Technologies DE Inc.

 

1,700

 

67

 

*

Sanmina Corp.

 

2,041

 

66

 

*

Verra Mobility Corp. Class A

 

4,200

 

60

 

*

SolarWinds Corp.

 

3,200

 

59

 

 

NVE Corp.

 

882

 

58

 

 

Avnet Inc.

 

1,300

 

58

 

*

Nuance Communications Inc.

 

3,500

 

57

 

 

Ituran Location and Control Ltd.

 

2,297

 

57

 

*

Anaplan Inc.

 

1,100

 

52

 

*

ServiceNow Inc.

 

200

 

51

 

*

Model N Inc.

 

1,700

 

47

 

*

Calix Inc.

 

7,100

 

45

 

*

Nova Measuring Instruments Ltd.

 

1,413

 

45

 

*

Unisys Corp.

 

4,446

 

33

 

 

Versum Materials Inc.

 

600

 

32

 

*

Zuora Inc. Class A

 

2,100

 

32

 

*

Cree Inc.

 

600

 

29

 

*

DocuSign Inc. Class A

 

400

 

25

 

 

Amphenol Corp. Class A

 

256

 

25

 

 

Daktronics Inc.

 

3,198

 

24

 

 

Camtek Ltd.

 

2,400

 

22

 

 

Jabil Inc.

 

600

 

21

 

*

eGain Corp.

 

2,600

 

21

 

*

Zebra Technologies Corp.

 

100

 

21

 

*

A10 Networks Inc.

 

2,830

 

20

 

 

QAD Inc. Class A

 

385

 

18

 

*

Evo Payments Inc. Class A

 

600

 

17

 

*

MicroStrategy Inc. Class A

 

100

 

15

 

 

Benchmark Electronics Inc.

 

507

 

15

 

*

Immersion Corp.

 

1,900

 

14

 

*

Mitek Systems Inc.

 

1,421

 

14

 

*

SPS Commerce Inc.

 

280

 

13

 

 

Cohu Inc.

 

972

 

13

 

*

Proofpoint Inc.

 

100

 

13

 

 

Hackett Group Inc.

 

719

 

12

 

 

Splunk Inc.

 

100

 

12

 

*

Check Point Software Technologies Ltd.

 

100

 

11

 

 

NXP Semiconductors NV

 

100

 

11

 

*

Endurance International Group Holdings Inc.

 

2,890

 

11

 

*

CyberArk Software Ltd.

 

100

 

10

 

 

TE Connectivity Ltd.

 

100

 

9

 

 

MKS Instruments Inc.

 

100

 

9

 

 

27


 

Growth and Income Fund

 

 

 

 

 

Shares

 

Market
Value
·
($000

)

*

Gartner Inc.

 

63

 

9

 

*

InterXion Holding NV

 

100

 

8

 

*

VirnetX Holding Corp.

 

1,502

 

8

 

*

SailPoint Technologies Holding Inc.

 

400

 

7

 

 

Booz Allen Hamilton Holding Corp. Class A

 

100

 

7

 

*

Anixter International Inc.

 

100

 

7

 

*

Kopin Corp.

 

10,157

 

7

 

*

Acacia Communications Inc.

 

100

 

7

 

*

Advanced Energy Industries Inc.

 

100

 

6

 

*

Dell Technologies Inc.

 

100

 

5

 

 

CSG Systems International Inc.

 

100

 

5

 

*

Arlo Technologies Inc.

 

1,500

 

5

 

 

Belden Inc.

 

88

 

5

 

 

Monotype Imaging Holdings Inc.

 

200

 

4

 

*

EchoStar Corp. Class A

 

100

 

4

 

*

Net 1 UEPS Technologies Inc.

 

1,072

 

4

 

*

Axcelis Technologies Inc.

 

210

 

4

 

*

LivePerson Inc.

 

100

 

4

 

*

Harmonic Inc.

 

500

 

3

 

*

Nanometrics Inc.

 

100

 

3

 

*

Impinj Inc.

 

100

 

3

 

*

ePlus Inc.

 

37

 

3

 

*

ChannelAdvisor Corp.

 

300

 

3

 

*

Amkor Technology Inc.

 

300

 

3

 

*

Rudolph Technologies Inc.

 

100

 

3

 

*

Alpha & Omega Semiconductor Ltd.

 

200

 

2

 

*

CalAmp Corp.

 

200

 

2

 

*

Zix Corp.

 

300

 

2

 

*

Celestica Inc.

 

300

 

2

 

*

MobileIron Inc.

 

300

 

2

 

 

Presidio Inc.

 

100

 

2

 

*

MoneyGram International Inc.

 

400

 

2

 

*

Carbonite Inc.

 

100

 

2

 

*

Benefitfocus Inc.

 

62

 

1

 

*

Telaria Inc.

 

200

 

1

 

*

Ribbon Communications Inc.

 

215

 

1

 

*

Sierra Wireless Inc.

 

88

 

1

 

*

Carbon Black Inc.

 

32

 

1

 

*

Telenav Inc.

 

100

 

 

*

Ideanomics Inc.

 

100

 

 

*

EMCORE Corp.

 

20

 

 

 

 

 

 

 

2,427,117

 

 

 

 

 

 

 

 

Materials (2.0%)

 

 

 

 

 

 

Vulcan Materials Co.

 

251,182

 

37,989

 

 

Sealed Air Corp.

 

753,580

 

31,281

 

 

CF Industries Holdings Inc.

 

628,016

 

30,898

 

 

Ball Corp.

 

342,661

 

24,949

 

 

Linde plc

 

113,795

 

22,044

 

 

Air Products & Chemicals Inc.

 

81,909

 

18,172

 

 

DuPont de Nemours Inc.

 

147,887

 

10,546

 

 

Dow Inc.

 

205,422

 

9,788

 

 

Martin Marietta Materials Inc.

 

25,503

 

6,990

 

 

Sherwin-Williams Co.

 

10,190

 

5,603

 

 

Eastman Chemical Co.

 

62,800

 

4,637

 

 

Ashland Global Holdings Inc.

 

37,500

 

2,889

 

 

Westrock Co.

 

75,800

 

2,763

 

 

Steel Dynamics Inc.

 

90,800

 

2,706

 

 

Mosaic Co.

 

127,748

 

2,619

 

 

Huntsman Corp.

 

81,100

 

1,886

 

 

Agnico Eagle Mines Ltd.

 

24,126

 

1,293

 

 

WR Grace & Co.

 

15,400

 

1,028

 

 

Louisiana-Pacific Corp.

 

38,200

 

939

 

 

PPG Industries Inc.

 

7,040

 

834

 

*

Berry Global Group Inc.

 

16,600

 

652

 

 

Valvoline Inc.

 

28,600

 

630

 

 

Methanex Corp.

 

14,700

 

521

 

 

Ecolab Inc.

 

2,460

 

487

 

 

FMC Corp.

 

4,980

 

437

 

 

Amcor plc

 

37,000

 

361

 

*

AdvanSix Inc.

 

8,599

 

221

 

*

Alcoa Corp.

 

10,900

 

219

 

 

Trinseo SA

 

3,900

 

168

 

 

Warrior Met Coal Inc.

 

7,700

 

150

 

*

Constellium SE Class A

 

8,400

 

107

 

 

Orion Engineered Carbons SA

 

4,800

 

80

 

 

Olin Corp.

 

3,900

 

73

 

*

Flotek Industries Inc.

 

29,768

 

66

 

 

Mercer International Inc.

 

4,900

 

61

 

 

Myers Industries Inc.

 

3,171

 

56

 

 

Resolute Forest Products Inc.

 

11,464

 

54

 

*

Pretium Resources Inc.

 

4,101

 

47

 

 

Chemours Co.

 

3,000

 

45

 

 

Wheaton Precious Metals Corp.

 

1,500

 

39

 

*

Axalta Coating Systems Ltd.

 

1,300

 

39

 

*

AK Steel Holding Corp.

 

13,600

 

31

 

 

Nexa Resources SA

 

2,900

 

27

 

 

PolyOne Corp.

 

700

 

23

 

*

Ryerson Holding Corp.

 

2,400

 

21

 

*

Novagold Resources Inc.

 

3,200

 

19

 

 

28


 

Growth and Income Fund

 

 

 

 

 

Shares

 

Market
Value
·
($000

)

 

Silgan Holdings Inc.

 

600

 

18

 

 

Celanese Corp. Class A

 

100

 

12

 

 

Reliance Steel & Aluminum Co.

 

100

 

10

 

 

LyondellBasell Industries NV Class A

 

100

 

9

 

*

Seabridge Gold Inc.

 

550

 

7

 

 

Materion Corp.

 

100

 

6

 

*

Intrepid Potash Inc.

 

1,400

 

5

 

 

Owens-Illinois Inc.

 

400

 

4

 

 

Newmont Goldcorp Corp.

 

100

 

4

 

 

Israel Chemicals Ltd.

 

727

 

4

 

 

Avery Dennison Corp.

 

30

 

3

 

 

Graphic Packaging Holding Co.

 

180

 

3

 

 

Corteva Inc.

 

89

 

3

 

*

Verso Corp.

 

199

 

2

 

*

Allegheny Technologies Inc.

 

100

 

2

 

*

First Majestic Silver Corp.

 

200

 

2

 

*

Ferroglobe plc

 

1,600

 

2

 

 

Advanced Emissions Solutions Inc.

 

100

 

2

 

*

OMNOVA Solutions Inc.

 

100

 

1

 

 

Freeport-McMoRan Inc.

 

100

 

1

 

*

SunCoke Energy Inc.

 

100

 

1

 

*,§

Ferroglobe R&W Trust

 

48,731

 

 

 

 

 

 

 

224,589

 

Other (0.2%)

 

 

 

 

 

 

SPDR S&P 500 ETF Trust

 

62,300

 

18,489

 

*,§

Biosante Pharmaceutical Inc. CVR

 

4,189

 

 

 

 

 

 

 

18,489

 

Real Estate (3.0%)

 

 

 

 

 

 

Simon Property Group Inc.

 

172,156

 

26,796

 

 

Essex Property Trust Inc.

 

72,863

 

23,801

 

 

Crown Castle International Corp.

 

170,519

 

23,704

 

 

American Tower Corp.

 

104,195

 

23,041

 

 

Extra Space Storage Inc.

 

170,295

 

19,894

 

 

Ventas Inc.

 

271,884

 

19,856

 

 

Regency Centers Corp.

 

271,116

 

18,840

 

 

SBA Communications Corp. Class A

 

77,349

 

18,653

 

 

AvalonBay Communities Inc.

 

84,933

 

18,289

 

 

Apartment Investment & Management Co.

 

282,739

 

14,742

 

 

HCP Inc.

 

409,810

 

14,602

 

 

Boston Properties Inc.

 

106,390

 

13,795

 

 

Mid-America Apartment Communities Inc.

 

102,648

 

13,345

 

 

Kimco Realty Corp.

 

639,095

 

13,344

 

 

Public Storage

 

52,087

 

12,775

 

 

UDR Inc.

 

255,795

 

12,401

 

 

Equity Residential

 

91,117

 

7,860

 

 

Host Hotels & Resorts Inc.

 

401,070

 

6,935

 

 

Federal Realty Investment Trust

 

47,240

 

6,431

 

*

CBRE Group Inc. Class A

 

90,762

 

4,811

 

 

Duke Realty Corp.

 

131,668

 

4,473

 

 

Macerich Co.

 

122,470

 

3,869

 

 

Equinix Inc.

 

4,712

 

2,718

 

 

Vornado Realty Trust

 

32,100

 

2,044

 

 

CoreCivic Inc.

 

56,634

 

979

 

 

SL Green Realty Corp.

 

8,900

 

728

 

 

Digital Realty Trust Inc.

 

5,300

 

688

 

 

Uniti Group Inc.

 

54,500

 

423

 

 

Equity Commonwealth

 

11,500

 

394

 

 

Prologis Inc.

 

4,000

 

341

 

 

American Campus Communities Inc.

 

6,900

 

332

 

 

Iron Mountain Inc.

 

9,800

 

317

 

 

MGM Growth Properties LLC Class A

 

8,200

 

246

 

*

Cushman & Wakefield plc

 

13,200

 

245

 

 

Brandywine Realty Trust

 

15,565

 

236

 

 

Equity LifeStyle Properties Inc.

 

1,400

 

187

 

 

CubeSmart

 

4,600

 

161

 

 

Life Storage Inc.

 

1,425

 

150

 

 

VICI Properties Inc.

 

6,600

 

149

 

 

Invitation Homes Inc.

 

4,300

 

127

 

 

Sunstone Hotel Investors Inc.

 

6,901

 

95

 

 

STORE Capital Corp.

 

2,200

 

82

 

 

Urban Edge Properties

 

3,500

 

69

 

 

Brixmor Property Group Inc.

 

3,400

 

69

 

 

GEO Group Inc.

 

3,295

 

57

 

 

Liberty Property Trust

 

1,000

 

51

 

 

Corporate Office Properties Trust

 

1,400

 

42

 

 

Healthcare Trust of America Inc. Class A

 

1,299

 

38

 

 

RLJ Lodging Trust

 

2,200

 

37

 

 

Retail Value Inc.

 

934

 

35

 

 

Weingarten Realty Investors

 

900

 

26

 

 

CorePoint Lodging Inc.

 

2,300

 

23

 

 

Spirit MTA REIT

 

2,314

 

20

 

 

Colony Capital Inc.

 

2,900

 

17

 

 

Sun Communities Inc.

 

100

 

15

 

*

Howard Hughes Corp.

 

100

 

13

 

 

Camden Property Trust

 

100

 

11

 

 

29


 

Growth and Income Fund

 

 

 

 

 

Shares

 

Market
Value
·
($000

)

 

QTS Realty Trust Inc. Class A

 

193

 

10

 

 

Retail Properties of America Inc.

 

800

 

10

 

 

Realty Income Corp.

 

101

 

8

 

 

Agree Realty Corp.

 

100

 

7

 

 

Cedar Realty Trust Inc.

 

2,300

 

7

 

 

American Finance Trust Inc.

 

400

 

6

 

 

American Assets Trust Inc.

 

100

 

5

 

 

Highwoods Properties Inc.

 

100

 

4

 

 

Rexford Industrial Realty Inc.

 

100

 

4

 

 

Monmouth Real Estate Investment Corp.

 

300

 

4

 

 

Douglas Emmett Inc.

 

100

 

4

 

*

St. Joe Co.

 

200

 

3

 

 

CareTrust REIT Inc.

 

100

 

2

 

 

Essential Properties Realty Trust Inc.

 

100

 

2

 

 

Easterly Government Properties Inc.

 

100

 

2

 

 

Newmark Group Inc. Class A

 

200

 

2

 

 

Empire State Realty Trust Inc.

 

100

 

1

 

 

UMH Properties Inc.

 

100

 

1

 

 

Senior Housing Properties Trust

 

100

 

1

 

 

Park Hotels & Resorts Inc.

 

17

 

 

 

 

 

 

 

333,505

 

Utilities (2.6%)

 

 

 

 

 

 

NRG Energy Inc.

 

1,616,947

 

64,031

 

 

Southern Co.

 

823,686

 

50,879

 

 

Exelon Corp.

 

556,062

 

26,863

 

 

AES Corp.

 

1,282,334

 

20,953

 

 

American Electric Power Co. Inc.

 

209,300

 

19,609

 

 

Pinnacle West Capital Corp.

 

200,346

 

19,448

 

 

NextEra Energy Inc.

 

59,570

 

13,879

 

 

Sempra Energy

 

88,474

 

13,060

 

 

Consolidated Edison Inc.

 

132,200

 

12,489

 

 

FirstEnergy Corp.

 

232,160

 

11,197

 

 

Evergy Inc.

 

156,100

 

10,390

 

 

Ameren Corp.

 

127,840

 

10,234

 

 

Duke Energy Corp.

 

84,500

 

8,100

 

 

Dominion Energy Inc.

 

57,053

 

4,624

 

 

Avangrid Inc.

 

34,200

 

1,787

 

 

PPL Corp.

 

55,550

 

1,749

 

 

DTE Energy Co.

 

8,070

 

1,073

 

 

Portland General Electric Co.

 

16,900

 

953

 

 

Public Service Enterprise Group Inc.

 

13,594

 

844

 

 

Alliant Energy Corp.

 

11,100

 

599

 

 

MDU Resources Group Inc.

 

19,756

 

557

 

 

Fortis Inc.

 

12,000

 

508

 

 

TerraForm Power Inc. Class A

 

21,500

 

392

 

 

IDACORP Inc.

 

3,218

 

363

 

 

Pattern Energy Group Inc. Class A

 

9,300

 

250

 

*,^

Atlantic Power Corp.

 

99,700

 

233

 

 

Avista Corp.

 

3,500

 

170

 

 

Black Hills Corp.

 

1,800

 

138

 

 

Atlantica Yield plc

 

3,600

 

87

 

 

Hawaiian Electric Industries Inc.

 

1,800

 

82

 

^

Spark Energy Inc. Class A

 

2,368

 

25

 

 

Chesapeake Utilities Corp.

 

100

 

9

 

 

MGE Energy Inc.

 

100

 

8

 

 

Entergy Corp.

 

64

 

7

 

 

El Paso Electric Co.

 

100

 

7

 

 

Xcel Energy Inc.

 

100

 

6

 

 

UGI Corp.

 

100

 

5

 

 

National Fuel Gas Co.

 

100

 

5

 

 

 

 

 

 

295,613

 

Total Common Stocks

 

 

 

 

 

(Cost $8,628,558)

 

 

 

11,015,905

 

Temporary Cash Investments (2.4%)1

 

 

 

 

 

Money Market Fund (2.3%)

 

 

 

 

 

2,3

Vanguard Market Liquidity Fund, 2.098%

 

2,514,119

 

251,437

 

 

 

 

 

 

 

 

 

 

 

Face

 

 

 

 

 

 

Amount

 

 

 

 

 

 

($000

)

 

 

 

U.S. Government and Agency Obligations (0.1%)

 

 

 

 

 

 

United States Treasury Bill, 1.954%–1.981%, 11/7/19

 

1,600

 

1,597

 

4

United States Treasury Bill, 1.946%–2.275%, 11/29/19

 

8,000

 

7,976

 

4

United States Treasury Bill, 1.872%, 2/20/20

 

3,600

 

3,575

 

 

 

 

 

 

13,148

 

Total Temporary Cash Investments
(Cost $264,543)

 

 

 

264,585

 

Total Investments (100.1%)
(Cost $8,893,101)

 

 

 

11,280,490

 

 

30


 

Growth and Income Fund

 

 

 

 

Amount

 

 

 

($000

)

Other Assets and Liabilities (-0.1%)

 

 

 

Other Assets

 

 

 

Investment in Vanguard

 

530

 

Receivables for Investment Securities Sold

 

53,069

 

Receivables for Accrued Income

 

10,634

 

Receivables for Capital Shares Issued

 

2,627

 

Variation Margin Receivables—Futures Contracts

 

1,214

 

Other Assets

 

76

 

Total Other Assets

 

68,150

 

Liabilities

 

 

 

Payables for Investment Securities Purchased

 

(55,088

)

Collateral for Securities on Loan

 

(3,609

)

Payables for Capital Shares Redeemed

 

(9,149

)

Payables to Investment Advisor

 

(2,404

)

Payables to Vanguard

 

(6,753

)

Variation Margin Payables—Futures Contracts

 

(3

)

Total Liabilities

 

(77,006

)

Net Assets (100%)

 

11,271,634

 

 

 

 

 

At September 30, 2019, net assets consisted of:

 

 

 

 

 

Amount

 

 

 

($000

)

Paid-in Capital

 

8,619,019

 

Total Distributable Earnings (Loss)

 

2,652,615

 

Net Assets

 

11,271,634

 

 

 

 

Amount

 

 

 

($000

)

Investor Shares—Net Assets

 

 

 

Applicable to 57,821,403 outstanding $.001 par value shares of beneficial interest (unlimited authorization)

 

2,859,690

 

Net Asset Value Per Share—Investor Shares

 

$49.46

 

 

 

 

 

Admiral Shares—Net Assets

 

 

 

Applicable to 104,187,085 outstanding $.001 par value shares of beneficial interest (unlimited authorization)

 

8,411,944

 

Net Asset Value Per Share—Admiral Shares

 

$80.74

 

 

·    See Note A in Notes to Financial Statements.

*     Non-income-producing security.

^    Includes partial security positions on loan to broker-dealers. The total value of securities on loan is $3,235,000.

§   Security value determined using significant unobservable inputs.

1   The fund invests a portion of its cash reserves in equity markets through the use of index futures contracts. After giving effect to futures investments, the fund’s effective common stock and temporary cash investment positions represent 99.9% and 0.2%, respectively, of net assets.

2   Affiliated money market fund available only to Vanguard funds and certain trusts and accounts managed by Vanguard. Rate shown is the 7-day yield.

3   Collateral of $3,609,000 was received for securities on loan.

4   Securities with a value of $11,003,000 have been segregated as initial margin for open futures contracts.

CVR—Contingent Value Rights.

REIT—Real Estate Investment Trust.

 

Derivative Financial Instruments Outstanding as of Period End

 

Futures Contracts

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

($000

)

 

 

 

 

Number of

 

 

 

Unrealized

 

 

 

 

 

Long (Short

)

Notional

 

Appreciation

 

 

 

Expiration

 

Contracts

 

Amount

 

(Depreciation

)

Long Futures Contracts

 

 

 

 

 

 

 

 

 

E-mini S&P 500 Index

 

December 2019

 

1,619

 

241,110

 

(2,433

)

Micro E-mini S&P 500 Index

 

December 2019

 

2

 

30

 

(1

)

 

 

 

 

 

 

 

 

(2,434

)

 

 

 

 

See accompanying Notes, which are an integral part of the Financial Statements.

 

31


 

Growth and Income Fund

 

 

Statement of Operations

 

 

Year Ended

 

September 30, 2019

 

($000)

Investment Income

 

Income

 

Dividends1

216,711

Interest2

6,596

Securities Lending—Net

241

Total Income

223,548

Expenses

 

Investment Advisory Fees—Note B

 

Basic Fee

10,663

Performance Adjustment

541

The Vanguard Group—Note C

 

Management and Administrative—Investor Shares

5,892

Management and Administrative—Admiral Shares

9,561

Marketing and Distribution—Investor Shares

264

Marketing and Distribution—Admiral Shares

496

Custodian Fees

132

Auditing Fees

21

Shareholders’ Reports—Investor Shares

64

Shareholders’ Reports—Admiral Shares

66

Trustees’ Fees and Expenses

13

Total Expenses

27,713

Net Investment Income

195,835

Realized Net Gain (Loss)

 

Investment Securities Sold2

266,970

Futures Contracts

12,171

Realized Net Gain (Loss)

279,141

Change in Unrealized Appreciation (Depreciation)

 

Investment Securities2

(236,611)

Futures Contracts

(3,144)

Change in Unrealized Appreciation (Depreciation)

(239,755)

Net Increase (Decrease) in Net Assets Resulting from Operations

235,221

 

1   Dividends are net of foreign withholding taxes of $17.000.

 

2   Interest income, realized net gain (loss), and change in unrealized appreciation (depreciation) from an affiliated company of the fund were $6,290,000, ($8,000), and $50,000, respectively. Purchases and sales are for temporary cash investment purposes.

 

 

 

 

 

 

See accompanying Notes, which are an integral part of the Financial Statements.

 

32


 

Growth and Income Fund

 

 

Statement of Changes in Net Assets

 

 

Year Ended September 30,

 

2019

2018

 

($000)

($000)

Increase (Decrease) in Net Assets

 

 

Operations

 

 

Net Investment Income

195,835

164,611

Realized Net Gain (Loss)

279,141

602,616

Change in Unrealized Appreciation (Depreciation)

(239,755)

1,062,004

Net Increase (Decrease) in Net Assets Resulting from Operations

235,221

1,829,231

Distributions

 

 

Net Investment Income

 

 

Investor Shares

(43,544)

(39,117)

Admiral Shares

(134,670)

(115,046)

Realized Capital Gain1

 

 

Investor Shares

(142,280)

(119,262)

Admiral Shares

(416,765)

(313,418)

Total Distributions

(737,259)

(586,843)

Capital Share Transactions

 

 

Investor Shares

60,225

(386,108)

Admiral Shares

290,497

569,816

Net Increase (Decrease) from Capital Share Transactions

350,722

183,708

Total Increase (Decrease)

(151,316)

1,426,096

Net Assets

 

 

Beginning of Period

11,422,950

9,996,854

End of Period

11,271,634

11,422,950

 

1   Includes fiscal 2019 and 2018 short-term gain distributions totaling $192,165,000 and $184,624,000, respectively. Short-term gain distributions are treated as ordinary income dividends for tax purposes.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

See accompanying Notes, which are an integral part of the Financial Statements.

 

33


 

Growth and Income Fund

 

 

Financial Highlights

 

 

Investor Shares

 

For a Share Outstanding

Year Ended September 30,

Throughout Each Period

2019

2018

2017

2016

2015

Net Asset Value, Beginning of Period

$52.17

$46.50

$42.16

$39.55

$42.69

Investment Operations

 

 

 

 

 

Net Investment Income

.8231

.7111

.7921

.852

.729

Net Realized and Unrealized Gain (Loss) on Investments

(.204)

7.650

6.346

4.813

(.541)

Total from Investment Operations

.619

8.361

7.138

5.665

.188

Distributions

 

 

 

 

 

Dividends from Net Investment Income

(.766)

(.668)

(.799)

(.790)

(.724)

Distributions from Realized Capital Gains

(2.563)

(2.023)

(1.999)

(2.265)

(2.604)

Total Distributions

(3.329)

(2.691)

(2.798)

(3.055)

(3.328)

Net Asset Value, End of Period

$49.46

$52.17

$46.50

$42.16

$39.55

 

 

 

 

 

 

Total Return2

2.21%

18.56%

17.66%

14.79%

0.22%

 

 

 

 

 

 

Ratios/Supplemental Data

 

 

 

 

 

Net Assets, End of Period (Millions)

$2,860

$2,932

$2,982

$2,801

$2,691

Ratio of Total Expenses to Average Net Assets3

0.33%

0.33%

0.34%

0.34%

0.34%

Ratio of Net Investment Income to Average Net Assets

1.73%

1.45%

1.80%

2.09%

1.70%

Portfolio Turnover Rate

68%

83%

96%

96%

116%

 

1   Calculated based on average shares outstanding.

 

2   Total returns do not include account service fees that may have applied in the periods shown. Fund prospectuses provide information about any applicable account service fees.

 

3   Includes performance-based investment advisory fee increases (decreases) of 0.01%, 0.00%, 0.00%, 0.00%, and 0.00%.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

See accompanying Notes, which are an integral part of the Financial Statements.

 

34


 

Growth and Income Fund

 

 

Financial Highlights

 

 

Admiral Shares

 

For a Share Outstanding

Year Ended September 30,

Throughout Each Period

2019

2018

2017

2016

2015

Net Asset Value, Beginning of Period

$85.16

$75.93

$68.83

$64.57

$69.71

Investment Operations

 

 

 

 

 

Net Investment Income

1.4211

1.2421

1.3621

1.466

1.272

Net Realized and Unrealized Gain (Loss) on Investments

(.330)

12.473

10.384

7.855

(.897)

Total from Investment Operations

1.091

13.715

11.746

9.321

.375

Distributions

 

 

 

 

 

Dividends from Net Investment Income

(1.326)

(1.182)

(1.384)

(1.364)

(1.264)

Distributions from Realized Capital Gains

(4.185)

(3.303)

(3.262)

(3.697)

(4.251)

Total Distributions

(5.511)

(4.485)

(4.646)

(5.061)

(5.515)

Net Asset Value, End of Period

$80.74

$85.16

$75.93

$68.83

$64.57

 

 

 

 

 

 

Total Return2

2.32%

18.65%

17.81%

14.91%

0.31%

 

 

 

 

 

 

Ratios/Supplemental Data

 

 

 

 

 

Net Assets, End of Period (Millions)

$8,412

$8,491

$7,015

$3,833

$3,177

Ratio of Total Expenses to Average Net Assets3

0.23%

0.23%

0.23%

0.23%

0.23%

Ratio of Net Investment Income to Average Net Assets

1.83%

1.55%

1.91%

2.20%

1.81%

Portfolio Turnover Rate

68%

83%

96%

96%

116%

 

1   Calculated based on average shares outstanding.

 

2   Total returns do not include account service fees that may have applied in the periods shown. Fund prospectuses provide information about any applicable account service fees.

 

3   Includes performance-based investment advisory fee increases (decreases) of 0.01%, 0.00%, 0.00%, 0.00%, and 0.00%.

 

 

 

 

 

 

 

 

 

 

 

 

See accompanying Notes, which are an integral part of the Financial Statements.

 

35


 

Growth and Income Fund

 

 

Notes to Financial Statements

 

 

Vanguard Growth and Income Fund is registered under the Investment Company Act of 1940 as an open-end investment company, or mutual fund. The fund offers two classes of shares: Investor Shares and Admiral Shares. Each of the share classes has different eligibility and minimum purchase requirements, and is designed for different types of investors.

 

A.   The following significant accounting policies conform to generally accepted accounting principles for U.S. investment companies. The fund consistently follows such policies in preparing its financial statements.

 

1. Security Valuation: Securities are valued as of the close of trading on the New York Stock Exchange (generally 4 p.m., Eastern time) on the valuation date. Equity securities are valued at the latest quoted sales prices or official closing prices taken from the primary market in which each security trades; such securities not traded on the valuation date are valued at the mean of the latest quoted bid and asked prices. Securities for which market quotations are not readily available, or whose values have been materially affected by events occurring before the fund’s pricing time but after the close of the securities’ primary markets, are valued by methods deemed by the board of trustees to represent fair value. Investments in Vanguard Market Liquidity Fund are valued at that fund’s net asset value. Temporary cash investments are valued using the latest bid prices or using valuations based on a matrix system (which considers such factors as security prices, yields, maturities, and ratings), both as furnished by independent pricing services.

 

2. Futures Contracts: The fund uses index futures contracts to a limited extent, with the objective of maintaining full exposure to the stock market while maintaining liquidity. The fund may purchase or sell futures contracts to achieve a desired level of investment, whether to accommodate portfolio turnover or cash flows from capital share transactions. The primary risks associated with the use of futures contracts are imperfect correlation between changes in market values of stocks held by the fund and the prices of futures contracts, and the possibility of an illiquid market. Counterparty risk involving futures is mitigated because a regulated clearinghouse is the counterparty instead of the clearing broker. To further mitigate counterparty risk, the fund trades futures contracts on an exchange, monitors the financial strength of its clearing brokers and clearinghouse, and has entered into clearing agreements with its clearing brokers. The clearinghouse imposes initial margin requirements to secure the fund’s performance and requires daily settlement of variation margin representing changes in the market value of each contract. Any assets pledged as initial margin for open contracts are noted in the Statement of Net Assets.

 

Futures contracts are valued at their quoted daily settlement prices. The notional amounts of the contracts are not recorded in the Statement of Net Assets. Fluctuations in the value of the contracts are recorded in the Statement of Net Assets as an asset (liability) and in the Statement of Operations as unrealized appreciation (depreciation) until the contracts are closed, when they are recorded as realized futures gains (losses).

 

During the year ended September 30, 2019, the fund’s average investments in long and short futures contracts represented 3% and 0% of net assets, respectively, based on the average of the notional amounts at each quarter-end during the period.

 

3. Federal Income Taxes: The fund intends to continue to qualify as a regulated investment company and distribute all of its taxable income. Management has analyzed the fund’s tax positions taken for all open federal income tax years (September 30, 2016–2019), and has concluded that no provision for federal income tax is required in the fund’s financial statements.

 

36


 

Growth and Income Fund

 

 

 

 

 

4. Distributions: Distributions to shareholders are recorded on the ex-dividend date. Distributions are determined on a tax basis and may differ from net investment income and realized capital gains for financial reporting purposes.

 

5. Securities Lending: To earn additional income, the fund lends its securities to qualified institutional borrowers. Security loans are subject to termination by the fund at any time, and are required to be secured at all times by collateral in an amount at least equal to the market value of securities loaned. Daily market fluctuations could cause the value of loaned securities to be more or less than the value of the collateral received. When this occurs, the collateral is adjusted and settled before the opening of the market on the next business day. The fund further mitigates its counterparty risk by entering into securities lending transactions only with a diverse group of prequalified counterparties, monitoring their financial strength, and entering into master securities lending agreements with its counterparties. The master securities lending agreements provide that, in the event of a counterparty’s default (including bankruptcy), the fund may terminate any loans with that borrower, determine the net amount owed, and sell or retain the collateral up to the net amount owed to the fund; however, such actions may be subject to legal proceedings. While collateral mitigates counterparty risk, in the event of a default, the fund may experience delays and costs in recovering the securities loaned. The fund invests cash collateral received in Vanguard Market Liquidity Fund, and records a liability in the Statement of Net Assets for the return of the collateral, during the period the securities are on loan. Securities lending income represents fees charged to borrowers plus income earned on invested cash collateral, less expenses associated with the loan. During the term of the loan, the fund is entitled to all distributions made on or in respect of the loaned securities.

 

6. Credit Facility: The fund and certain other funds managed by The Vanguard Group (“Vanguard”) participate in a $4.3 billion committed credit facility provided by a syndicate of lenders pursuant to a credit agreement that may be renewed annually; each fund is individually liable for its borrowings, if any, under the credit facility. Borrowings may be utilized for temporary and emergency purposes, and are subject to the fund’s regulatory and contractual borrowing restrictions. The participating funds are charged administrative fees and an annual commitment fee of 0.10% of the undrawn amount of the facility; these fees are allocated to the funds based on a method approved by the fund’s board of trustees and included in Management and Administrative expenses on the fund’s Statement of Operations. Any borrowings under this facility bear interest at a rate based upon the higher of the one-month London Interbank Offered Rate, federal funds effective rate, or overnight bank funding rate plus an agreed-upon spread.

 

The fund had no borrowings outstanding at September 30, 2019, or at any time during the period then ended.

 

7. Other: Dividend income is recorded on the ex-dividend date. Interest income includes income distributions received from Vanguard Market Liquidity Fund and is accrued daily. Premiums and discounts on debt securities purchased are amortized and accreted, respectively, to interest income over the lives of the respective securities. Security transactions are accounted for on the date securities are bought or sold. Costs used to determine realized gains (losses) on the sale of investment securities are those of the specific securities sold.

 

Each class of shares has equal rights as to assets and earnings, except that each class separately bears certain class-specific expenses related to maintenance of shareholder accounts (included in Management and Administrative expenses) and shareholder reporting. Marketing and distribution

 

37


 

Growth and Income Fund

 

 

 

 

 

expenses are allocated to each class of shares based on a method approved by the board of trustees. Income, other non-class-specific expenses, and gains and losses on investments are allocated to each class of shares based on its relative net assets.

 

B.   The investment advisory firms D. E. Shaw Investment Management, L.L.C., and Los Angeles Capital Management and Equity Research, Inc., each provide investment advisory services to a portion of the fund for a fee calculated at an annual percentage rate of average net assets managed by the advisor. The basic fee of D. E. Shaw Investment Management, L.L.C. is subject to quarterly adjustments based on performance relative to the S&P 500 Index for the preceding three years. The basic fee of Los Angeles Capital Management and Equity Research, Inc. is subject to quarterly adjustments based on performance relative to the S&P 500 Index for the preceding five years.

 

Vanguard provides investment advisory services to a portion of the fund as described below; the fund paid Vanguard advisory fees of $1,426,000 for the year ended September 30, 2019.

 

For the year ended September 30, 2019, the aggregate investment advisory fee paid to all advisors represented an effective annual basic rate of 0.10% of the fund’s average net assets, before an increase of $541,000 (0.01%) based on performance.

 

C.   In accordance with the terms of a Funds’ Service Agreement (the “FSA”) between Vanguard and the fund, Vanguard furnishes to the fund investment advisory, corporate management, administrative, marketing, and distribution services at Vanguard’s cost of operations (as defined by the FSA). These costs of operations are allocated to the fund based on methods and guidelines approved by the board of trustees. Vanguard does not require reimbursement in the current period for certain costs of operations (such as deferred compensation/benefits and risk/insurance costs); the fund’s liability for these costs of operations is included in Payables to Vanguard on the Statement of Net Assets. All other costs of operations payable to Vanguard are generally settled twice a month.

 

Upon the request of Vanguard, the fund may invest up to 0.40% of its net assets as capital in Vanguard. At September 30, 2019, the fund had contributed to Vanguard capital in the amount of $530,000, representing less than 0.01% of the fund’s net assets and 0.21% of Vanguard’s capital received pursuant to the FSA. 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.

 

Level 1—Quoted prices in active markets for identical securities.

Level 2—Other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.).

Level 3—Significant unobservable inputs (including the fund’s own assumptions used to determine the fair value of investments). Any investments valued with significant unobservable inputs are noted on the Statement of Net Assets.

 

38


 

Growth and Income Fund

 

 

 

 

 

The following table summarizes the market value of the fund’s investments and derivatives as of September 30, 2019, based on the inputs used to value them:

 

 

 

Level 1

 

Level 2

 

Level 3

 

Investments

 

($000

)

($000

)

($000

)

Common Stocks

 

11,015,905

 

 

1

 

Temporary Cash Investments

 

251,437

 

13,148

 

 

Futures Contracts—Assets2

 

1,214

 

 

 

Futures Contracts—Liabilities2

 

(3

)

 

 

Total

 

11,268,553

 

13,148

 

 

 

1 Amount is less than $500.

 

2 Represents variation margin on the last day of the reporting period.

 

E.   Permanent differences between book-basis and tax-basis components of net assets are reclassified among capital accounts in the financial statements to reflect their tax character. These reclassifications have no effect on net assets or net asset value per share. As of period end, permanent differences primarily attributable to the accounting for passive foreign investment companies and distributions in connection with fund share redemptions were reclassified between the following accounts:

 

 

 

Amount

 

 

 

($000

)

Paid-in Capital

 

10,192

 

Total Distributable Earnings (Loss)

 

(10,192

)

 

Temporary differences between book-basis and tax-basis components of total distributable earnings (loss) arise when certain items of income, gain, or loss are recognized in different periods for financial statement and tax purposes; these differences will reverse at some time in the future. The differences are primarily related to the tax deferral of losses on wash sales; the realization of unrealized gains or losses on certain futures contracts; and unrealized gains on passive foreign investment companies. As of period end, the tax-basis components of total distributable earnings (loss) are detailed in the table as follows:

 

 

 

Amount

 

 

 

($000

)

Undistributed Ordinary Income

 

64,264

 

Undistributed Long-Term Gains

 

221,974

 

Capital Loss Carryforwards (Non-expiring)

 

 

Net Unrealized Gains (Losses)

 

2,372,206

 

 

39


 

Growth and Income Fund

 

 

 

 

 

As of September 30, 2019, gross unrealized appreciation and depreciation for investments and derivatives based on cost for U.S. federal income tax purposes were as follows:

 

 

 

Amount

 

 

 

($000

)

Tax Cost

 

8,908,284

 

Gross Unrealized Appreciation

 

2,646,024

 

Gross Unrealized Depreciation

 

(273,818

)

Net Unrealized Appreciation (Depreciation)

 

2,372,206

 

 

F.   During the year ended September 30, 2019, the fund purchased $7,202,415,000 of investment securities and sold $7,345,692,000 of investment securities, other than temporary cash investments.

 

G.   Capital share transactions for each class of shares were:

 

 

 

 

 

 

 

Year Ended September 30,

 

 

 

 

 

2019

 

 

 

2018

 

 

 

Amount

 

Shares

 

Amount

 

Shares

 

 

 

($000

)

(000

)

($000

)

(000

)

Investor Shares

 

 

 

 

 

 

 

 

 

Issued

 

299,833

 

6,284

 

291,736

 

5,976

 

Issued in Lieu of Cash Distributions

 

178,632

 

4,162

 

152,825

 

3,204

 

Redeemed

 

(418,240

)

(8,824

)

(830,669

)

(17,104

)

Net Increase (Decrease)—Investor Shares

 

60,225

 

1,622

 

(386,108

)

(7,924

)

Admiral Shares

 

 

 

 

 

 

 

 

 

Issued

 

931,635

 

12,131

 

1,319,661

 

16,602

 

Issued in Lieu of Cash Distributions

 

520,688

 

7,431

 

407,603

 

5,233

 

Redeemed

 

(1,161,826

)

(15,079

)

(1,157,448

)

(14,518

)

Net Increase (Decrease)—Admiral Shares

 

290,497

 

4,483

 

569,816

 

7,317

 

 

H.   Management has determined that no events or transactions occurred subsequent to September 30, 2019, that would require recognition or disclosure in these financial statements.

 

40


 

Report of Independent Registered Public Accounting Firm

 

To the Board of Trustees of Vanguard Quantitative Funds and Shareholders of Vanguard Growth and Income Fund

 

Opinion on the Financial Statements

 

We have audited the accompanying statement of net assets of Vanguard Growth and Income Fund (constituting Vanguard Quantitative Funds, referred to hereafter as the “Fund”) as of September 30, 2019, the related statement of operations for the year ended September 30, 2019, the statement of changes in net assets for each of the two years in the period ended September 30, 2019, including the related notes, and the financial highlights for each of the five years in the period ended September 30, 2019 (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Fund as of September 30, 2019, 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 ended September 30, 2019 and the financial highlights for each of the five years in the period ended September 30, 2019 in conformity with accounting principles generally accepted in the United States of America.

 

Basis for Opinion

 

These financial statements are the responsibility of the Fund’s management. Our responsibility is to express an opinion on the Fund’s financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (“PCAOB”) and are required to be independent with respect to the Fund in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

 

We conducted our audits of these financial statements in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud.

 

Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. Our procedures included confirmation of securities owned as of September 30, 2019 by correspondence with the custodian and brokers and by agreement to the underlying ownership records of the transfer agent; when replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.

 

 

 

 

/s/PricewaterhouseCoopers LLP

 

Philadelphia, Pennsylvania

 

November 19, 2019

 

We have served as the auditor of one or more investment companies in The Vanguard Group of Funds since 1975.

 

41


 

 

Special 2019 tax information (unaudited) for Vanguard Growth and Income Fund

 

This information for the fiscal year ended September 30, 2019, is included pursuant to provisions of the Internal Revenue Code.

 

The fund distributed $377,131,000 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 $190,322,000 of qualified dividend income to shareholders during the fiscal year.

 

For corporate shareholders, 100% of investment income (dividend income plus short-term gains, if any) qualifies for the dividends-received deduction.

 

42


 

Trustees Approve Advisory Arrangements

 

 

The board of trustees of Vanguard Growth and Income Fund has renewed the fund’s investment advisory arrangements with D. E. Shaw Investment Management, L.L.C. (DESIM); Los Angeles Capital Management and Equity Research, Inc. (LA Capital); and The Vanguard Group, Inc. (Vanguard), through its Quantitative Equity Group. The board determined that renewing the fund’s advisory arrangements was in the best interest of the fund and its shareholders.

 

The board based its decision upon an evaluation of each advisor’s investment staff, portfolio management process, and performance. This evaluation included information provided to the board by Vanguard’s Portfolio Review Department, which is responsible for fund and advisor oversight and product management. The Portfolio Review Department met regularly with the advisors and made monthly presentations to the board during the fiscal year that directed the board’s focus to relevant information and topics.

 

The board, or an investment committee made up of board members, also received information throughout the year during advisor presentations. For each advisor presentation, the board was provided with letters and reports that included information about, among other things, the advisory firm and the advisor’s assessment of the investment environment, portfolio performance, and portfolio characteristics.

 

In addition, the board received monthly reports, which included a Market and Economic Report, a Fund Dashboard Monthly Summary, and a Fund Performance Report.

 

Prior to their meeting, the trustees were provided with a memo and materials that summarized the information they received over the course of the year. They also considered the factors discussed below, among others. However, no single factor determined whether the board approved the arrangements. 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 each advisor’s investment management services provided to the fund since 2011, and took into account the organizational depth and stability of each advisor. The board considered the following:

 

DESIM. Founded in 2005, DESIM is a global investment management and technology development firm. The advisor employs quantitative models that seek to capture predominantly “bottom-up” stock-specific return opportunities while aiming to control overall portfolio risk and characteristics, such as size, sector weights, and style, to be similar to those of the benchmark. DESIM focuses on return drivers that it considers “idiosyncratic,” or those that other quantitative managers tend to overlook, and de-emphasizes the use of traditional factors such as value, growth, and momentum, as these factors are more subject to crowding from other quantitative managers. DESIM has managed a portion of the fund since 2011.

 

LA Capital. LA Capital was formed in 2002 from the equity portion of Wilshire Asset Management. The advisor employs a controlled, dynamic investment model, gradually assigning new prices to key equity risks as market conditions evolve and investor preferences shift. The price of factor risk evolves over time in a way that can be captured in a model, similar to changes in cost of capital. The model uses more than 50 factors to actively weight stocks, including value, momentum, quality, sector, and market capitalization factors. The advisor applies statistical techniques to reduce noise in the factor returns and it looks for velocity and acceleration of the cleansed factor performance over the prior six months. LA Capital has managed a portion of the fund since 2011.

 

43


 

Vanguard. Vanguard has been managing investments for more than four decades. The Quantitative Equity Group adheres to a sound, disciplined investment management process; the team has considerable experience, stability, and depth. Vanguard has managed a portion of the fund since 2011.

 

The board concluded that each advisor’s experience, stability, depth, and performance, among other factors, warranted continuation of the advisory arrangements.

 

Investment performance

 

The board considered the investment performance of each advisor’s subportfolio since each advisor began managing a portion of the fund in 2011, including any periods of outperformance or underperformance compared with a relevant benchmark index and peer group. The board concluded that the performance was such that the advisory arrangements should continue.

 

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 expense rates were also well below the peer-group average.

 

The board did not consider the profitability of DESIM and LA Capital in determining whether to approve the advisory fees, because the firms are independent of Vanguard, and the advisory fees are the result of arm’s-length negotiations. The board does not conduct a profitability analysis of Vanguard because of Vanguard’s unique structure. Unlike most other mutual fund management companies, Vanguard is owned by the funds it oversees.

 

The benefit of economies of scale

 

The board concluded that the fund’s shareholders benefit from economies of scale because of breakpoints in the advisory fee schedules for DESIM and LA Capital. The breakpoints reduce the effective rate of the fees as the fund’s assets managed by each advisor increase. The board also concluded that the fund’s arrangement with Vanguard ensures that the fund will realize economies of scale as it grows, with the cost to shareholders declining as the fund’s assets managed by Vanguard increase.

 

The board will consider whether to renew the advisory arrangements again after a one-year period.

 

44


 

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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.

 

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 212 Vanguard funds.

 

Information for each trustee and executive officer of the fund appears below. That information, as well as the Vanguard fund count, is as of the date on the cover of this fund report. The mailing address of the trustees and officers is P.O. Box 876, Valley Forge, PA 19482. 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.

 

 

Interested Trustee1

 

Mortimer J. Buckley

 

Born in 1969. Trustee since January 2018. Principal occupation(s) during the past five years and other experience: chairman of the board (January 2019–present) of Vanguard and of each of the investment companies served by Vanguard; chief executive officer (January 2018–present) of Vanguard; chief executive officer, president, and trustee (January 2018–present) of each of the investment companies served by Vanguard; president and director (2017–present) of Vanguard; and president (February 2018–present) of Vanguard Marketing Corporation. Chief investment officer (2013–2017), managing director (2002–2017), head of the Retail Investor Group (2006–2012), and chief information officer (2001–2006) of Vanguard. Chairman of the board (2011–2017) and trustee (2009–2017) of the Children’s Hospital of Philadelphia; trustee (2018–present) of The Shipley School.

 

 

Independent Trustees

 

Emerson U. Fullwood

 

Born in 1948. Trustee since January 2008. Principal occupation(s) during the past five years and other experience: executive chief staff and marketing officer for North America and corporate vice president (retired 2008) of Xerox Corporation (document management products and services). Former president of the Worldwide Channels Group, Latin America, and Worldwide Customer Service and executive chief staff officer of Developing Markets of Xerox. Executive in residence and 2009–2010 Distinguished Minett Professor at the Rochester Institute of Technology. Director of SPX FLOW, Inc. (multi-industry manufacturing). Director of the University of Rochester Medical Center, the Monroe Community College Foundation, the United Way of Rochester, North Carolina A&T University, and Roberts Wesleyan College. Trustee of the University of Rochester.

 

Amy Gutmann

 

Born in 1949. Trustee since June 2006. Principal occupation(s) during the past five years and other experience: president (2004–present) of the University of Pennsylvania. Christopher H. Browne Distinguished Professor of Political Science, School of Arts and Sciences, and professor of communication, Annenberg School for Communication, with secondary faculty appointments in the Department of Philosophy, School of Arts and Sciences, and at the Graduate School of Education, University of Pennsylvania. Trustee of the National Constitution Center.

 

F. Joseph Loughrey

 

Born in 1949. Trustee since October 2009. Principal occupation(s) during the past five years and other experience: president and chief operating officer (retired 2009) and vice chairman of the board (2008–2009) of Cummins Inc. (industrial machinery). Chairman of the board of Hillenbrand, Inc. (specialized consumer services), and the Lumina Foundation.

 

 

1   Mr. Buckley is considered an “interested person,” as defined in the Investment Company Act of 1940, because he is an officer of the Vanguard funds.

 


 

Director of the V Foundation and Oxfam America. Member of the advisory council for the College of Arts and Letters and chair of the advisory board to the Kellogg Institute for International Studies, both at the University of Notre Dame.

 

Mark Loughridge

 

Born in 1953. Trustee since March 2012. Principal occupation(s) during the past five years and other experience: senior vice president and chief financial officer (retired 2013) of IBM (information technology services). Fiduciary member of IBM’s Retirement Plan Committee (2004–2013), senior vice president and general manager (2002–2004) of IBM Global Financing, vice president and controller (1998–2002) of IBM, and a variety of other prior management roles at IBM. Member of the Council on Chicago Booth.

 

Scott C. Malpass

 

Born in 1962. Trustee since March 2012. Principal occupation(s) during the past five years and other experience: chief investment officer (1989–present) and vice president (1996–present) of the University of Notre Dame. Assistant professor of finance at the Mendoza College of Business, University of Notre Dame, and member of the Notre Dame 403(b) Investment Committee. Chairman of the board of TIFF Advisory Services, Inc. Member of the board of Catholic Investment Services, Inc. (investment advisors) and the board of superintendence of the Institute for the Works of Religion.

 

Deanna Mulligan

 

Born in 1963. Trustee since January 2018. Principal occupation(s) during the past five years and other experience: president (2010–present) and chief executive officer (2011–present) of The Guardian Life Insurance Company of America. Chief operating officer (2010–2011) and executive vice president (2008–2010) of Individual Life and Disability of The Guardian Life Insurance Company of America. Member of the board of The Guardian Life Insurance Company of America, the American Council of Life Insurers, the Partnership for New York City (business leadership), and the Committee Encouraging Corporate Philanthropy. Trustee of the Economic Club of New York and the Bruce Museum (arts and science). Member of the Advisory Council for the Stanford Graduate School of Business.

 

André F. Perold

 

Born in 1952. Trustee since December 2004. Principal occupation(s) during the past five years and other experience: George Gund Professor of Finance and Banking, Emeritus at the Harvard Business School (retired 2011). Chief investment officer and co-managing partner of HighVista Strategies LLC (private investment firm). Board of advisors and investment committee member of the Museum of Fine Arts Boston. Board member (2018–present) of RIT Capital Partners (investment firm); investment committee member of Partners Health Care System.

 

Sarah Bloom Raskin

 

Born in 1961. Trustee since January 2018. Principal occupation(s) during the past five years and other experience: deputy secretary (2014–2017) of the United States Department of the Treasury. Governor (2010–2014) of the Federal Reserve Board. Commissioner (2007–2010) of financial regulation for the State of Maryland. Member of the board of directors (2012–2014) of Neighborhood Reinvestment Corporation. Director (2017–present) of i(x) Investments, LLC; director (2017–present) of Reserve Trust. Rubinstein Fellow (2017–present) of Duke University; trustee (2017–present) of Amherst College.

 

Peter F. Volanakis

 

Born in 1955. Trustee since July 2009. Principal occupation(s) during the past five years and other experience: president and chief operating officer (retired 2010) of Corning Incorporated (communications equipment) and director of Corning Incorporated (2000–2010) and Dow Corning (2001–2010). Director (2012) of SPX Corporation (multi-industry manufacturing). Overseer of the Amos Tuck School of Business Administration, Dartmouth College (2001–2013). Chairman of the board of trustees of Colby-Sawyer College. Member of the board of Hypertherm Inc. (industrial cutting systems, software, and consumables).

 


 

Executive Officers

 

Glenn Booraem

 

Born in 1967. Principal occupation(s) during the past five years and other experience: principal of Vanguard. Investment stewardship officer (2017–present), treasurer (2015–2017), controller (2010–2015), and assistant controller (2001–2010) of each of the investment companies served by Vanguard.

 

Christine M. Buchanan

 

Born in 1970. Principal occupation(s) during the past five years and other experience: principal of Vanguard and global head of Fund Administration at Vanguard. Treasurer (2017–present) of each of the investment companies served by Vanguard. Partner (2005–2017) at KPMG LLP (audit, tax, and advisory services).

 

Thomas J. Higgins

 

Born in 1957. Principal occupation(s) during the past five years and other experience: principal of Vanguard. Chief financial officer (2008–present) and treasurer (1998–2008) of each of the investment companies served by Vanguard.

 

Peter Mahoney

 

Born in 1974. Principal occupation(s) during the past five years and other experience: principal of Vanguard. Controller (2015–present) of each of the investment companies served by Vanguard. Head of International Fund Services (2008–2014) at Vanguard.

 

Anne E. Robinson

 

Born in 1970. Principal occupation(s) during the past five years and other experience: general counsel (2016–present) of Vanguard. Secretary (2016–present) of Vanguard and of each of the investment companies served by Vanguard. Managing director (2016–present) of Vanguard. Director and senior vice president (2016–2018) of Vanguard Marketing Corporation. Managing director and general counsel of Global Cards and Consumer Services (2014–2016) at Citigroup. Counsel (2003–2014) at American Express.

 

Michael Rollings

 

Born in 1963. Principal occupation(s) during the past five years and other experience: finance director (2017–present) and treasurer (2017) of each of the investment companies served by Vanguard. Managing director (2016–present) of Vanguard. Chief financial officer (2016–present) of Vanguard. Director (2016–present) of Vanguard Marketing Corporation. Executive vice president and chief financial officer (2006–2016) of MassMutual Financial Group.

 

John E. Schadl

 

Born in 1972. Principal occupation(s) during the past five years and other experience: principal of Vanguard. Chief compliance officer (2019–present) of Vanguard and of each of the investment companies served by Vanguard. Assistant vice president (May 2019–present) of Vanguard Marketing Corporation.

 

Vanguard Senior Management Team

 

Joseph Brennan

Chris D. McIsaac

Mortimer J. Buckley

James M. Norris

Gregory Davis

Thomas M. Rampulla

John James

Karin A. Risi

Martha G. King

Anne E. Robinson

John T. Marcante

Michael Rollings

 


 

 

 

 

P.O. Box 2600

Valley Forge, PA 19482-2600

 

 

 

Connect with Vanguard® > vanguard.com

 

 

 

Fund Information > 800-662-7447

 

Direct Investor Account Services > 800-662-2739

 

Institutional Investor Services > 800-523-1036

 

Text Telephone for People

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 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, www.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 www.sec.gov.

 

You can review information about your fund on the SEC’s website, and you can receive copies of this information, for a fee, by sending a request via email addressed to publicinfo@sec.gov.

 

Source for Bloomberg Barclays indexes: Bloomberg Index Services Limited. Copyright 2019, Bloomberg. All rights reserved.

 

CFA® is a registered trademark owned by CFA Institute.

 

 

 

 

 

 

© 2019 The Vanguard Group, Inc.

All rights reserved.

Vanguard Marketing Corporation, Distributor.

 

Q930 112019

 


 

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. All members of the Audit Committee have been determined by the Registrant’s Board of Trustees to be Audit Committee Financial Experts and to be independent: F. Joseph Loughrey, Mark Loughridge, Sarah Bloom Raskin, and Peter F. Volanakis.

 


 

Item 4: Principal Accountant Fees and Services.

 

(a)           Audit Fees.

 

Audit Fees of the Registrant.

 

Fiscal Year Ended September 30, 2019: $21,000
Fiscal Year Ended September 30, 2018: $27,000

 

Aggregate Audit Fees of Registered Investment Companies in the Vanguard Group.

 

Fiscal Year Ended September 30, 2019: $9,568,215
Fiscal Year Ended September 30, 2018: $9,734,277

 

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 September 30, 2019: $3,012,031
Fiscal Year Ended September 30, 2018: $5,581,336

 

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 September 30, 2019: $357,238
Fiscal Year Ended September 30, 2018: $347,985

 

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 September 30, 2019: $0
Fiscal Year Ended September 30, 2018: $0

 

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 September 30, 2019: $357,238
Fiscal Year Ended September 30, 2018: $347,985

 

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.

 

The Registrant is a listed issuer as defined in rule 10A-3 under the Securities Exchange Act of 1934 (“Exchange Act”). The Registrant has a separately-designated standing audit committee established in accordance with Section 3(a)(58)(A) of the Exchange Act. The Registrant’s audit committee members are: F. Joseph Loughrey, Mark Loughridge, Sarah Bloom Raskin, and Peter F. Volanakis.

 

Item 6: Investments.

 

Not applicable.

 

Item 7: Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.

 

Not applicable.

 

Item 8: Portfolio Managers of Closed-End Management Investment Companies.

 

Not applicable.

 

Item 9: Purchase of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers.

 

Not applicable.

 

Item 10: Submission of Matters to a Vote of Security Holders.

 

Not applicable.

 

Item 11: Controls and Procedures.

 

(a) Disclosure Controls and Procedures. The Principal Executive and Financial Officers concluded that the Registrant’s Disclosure Controls and Procedures are effective based on their evaluation of the Disclosure Controls and Procedures as of a date within 90 days of the filing date of this report.

 

(b) Internal Control Over Financial Reporting. There were no significant changes in Registrant’s Internal Control Over Financial Reporting or in other factors that could significantly affect this control subsequent to the date of the evaluation, including any corrective actions with regard to significant deficiencies and material weaknesses.

 

Item 12: Disclosure of Securities Lending Activities for Closed-End Management Investment Companies.

 

Not applicable.

 

Item 13: 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 QUANTITATIVE FUNDS

 

 

BY:

/s/ MORTIMER J. BUCKLEY*

 

 

 

 

 

     MORTIMER J. BUCKLEY

 

 

CHIEF EXECUTIVE OFFICER

 

 

Date:  November 15, 2019

 

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

 

 

VANGUARD QUANTITATIVE FUNDS

 

 

BY:

/s/ MORTIMER J. BUCKLEY*

 

 

 

 

 

     MORTIMER J. BUCKLEY

 

 

CHIEF EXECUTIVE OFFICER

 

 

Date:  November 15, 2019

 

 

VANGUARD QUANTITATIVE FUNDS

 

 

BY:

/s/ JOHN BENDL*

 

 

 

 

 

     JOHN BENDL

 

 

CHIEF FINANCIAL OFFICER

 

 

 

Date:  November 15, 2019

 

 

 

* By: /s/ Anne E. Robinson

 

Anne E. Robinson, pursuant to a Power of Attorney filed on January 18, 2018 (see file Number 33-32216) and a Power of Attorney filed on October 30, 2019 (see file Number 811-02554), Incorporated by Reference.