-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, EomIYFXlW2H8KTFNtHaA/+G+H5bOWC9YdIL6IU6FZj3pNCoBaltpFHTWDP9AkNK8 a12PrXYJy9KB1CfW31p7dw== 0000932471-05-001541.txt : 20050922 0000932471-05-001541.hdr.sgml : 20050922 20050922143244 ACCESSION NUMBER: 0000932471-05-001541 CONFORMED SUBMISSION TYPE: N-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20050731 FILED AS OF DATE: 20050922 DATE AS OF CHANGE: 20050922 EFFECTIVENESS DATE: 20050922 FILER: COMPANY DATA: COMPANY CONFORMED NAME: VANGUARD WINDSOR FUNDS/ CENTRAL INDEX KEY: 0000107606 IRS NUMBER: 510082711 STATE OF INCORPORATION: DE FISCAL YEAR END: 1031 FILING VALUES: FORM TYPE: N-Q SEC ACT: 1940 Act SEC FILE NUMBER: 811-00834 FILM NUMBER: 051097891 BUSINESS ADDRESS: STREET 1: PO BOX 2600 STREET 2: V37 CITY: VALLEY FORGE STATE: PA ZIP: 19482 BUSINESS PHONE: 6106696289 MAIL ADDRESS: STREET 1: PO BOX 2600 STREET 2: V37 CITY: VALLEY FORGE STATE: PA ZIP: 19482 FORMER COMPANY: FORMER CONFORMED NAME: VANGUARD/WINDSOR FUNDS INC DATE OF NAME CHANGE: 19931203 FORMER COMPANY: FORMER CONFORMED NAME: WINDSOR FUNDS INC DATE OF NAME CHANGE: 19920703 FORMER COMPANY: FORMER CONFORMED NAME: WINDSOR FUNDS DATE OF NAME CHANGE: 19851031 N-Q 1 windsorfinal.htm

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM N-Q

QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF
REGISTERED MANAGEMENT COMPANY


Investment Company Act file number: 811-834

Name of Registrant: VANGUARD WINDSOR FUNDS

Address of Registrant: P.O. Box 2600
Valley Forge, PA 19482

Name and address of agent for service: Heidi Stam, Esquire
P.O. Box 876
Valley Forge, PA 19482

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


Date of fiscal year end: October 31

Date of reporting period: July 31, 2005

Item 1: Schedule of Investments


Vanguard Windsor Fund
Schedule of Investments
July 31, 2005


Shares Market
Value
($000)

    COMMON STOCKS (95.7%)    

    Auto & Transportation (5.8%)
  * Compagnie Generale des Etablissements Michelin SA B Shares 6,491,049  $400,920 
 (1)Lear Corp. 3,664,000  156,709 
  * Yellow Roadway Corp. 2,268,300  120,016 
    Norfolk Southern Corp. 2,727,650  101,496 
*(1)Continental Airlines, Inc. Class B 5,332,500  84,307 
    Burlington Northern Santa Fe Corp. 1,549,000  84,033 
    CSX Corp. 1,619,900  73,770 
  * AMR Corp. 5,030,300  70,676 
    Magna International, Inc. Class A 738,700  56,954 
    Canadian National Railway Co. 574,500  38,176 
  * US Airways New Company-Private Placement 1,861,700  30,718 
    BorgWarner, Inc. 468,800  27,270 
  * Northwest Airlines Corp. Class A 2,209,358  10,274 

         1,255,319 

    Consumer Discretionary (8.3%)
  * Time Warner, Inc. 24,664,100  419,783 
    TJX Cos., Inc. 15,775,200  370,875 
 (1)Ross Stores, Inc. 7,975,100  211,340 
    Gannett Co., Inc. 1,846,700  134,735 
  * Office Depot, Inc. 3,305,000  93,796 
    Newell Rubbermaid, Inc. 2,800,000  69,636 
    McDonald's Corp. 2,195,000  68,418 
    Target Corp. 1,085,000  63,744 
  * Liberty Global Inc. Class A 1,097,980  52,088 
    Whirlpool Corp. 644,100  51,515 
  * Interpublic Group of Cos., Inc. 3,970,000  49,625 
    Jones Apparel Group, Inc. 1,485,000  45,396 
    Republic Services, Inc. Class A 1,051,000  38,099 
    Federated Department Stores, Inc. 482,800  36,630 
    Kimberly-Clark Corp. 425,000  27,098 
    Limited Brands, Inc. 1,086,400  26,486 
    Liz Claiborne, Inc. 588,300  24,479 

         1,783,743 

    Consumer Staples (2.2%)
    Altria Group, Inc. 1,749,800  117,167 
  * The Kroger Co. 3,591,350  71,288 
    Safeway, Inc. 2,891,600  70,266 
    Unilever NV ADR 905,000  60,554 
    PepsiCo, Inc. 1,090,000  59,438 
    The Procter & Gamble Co. 994,000  55,296 
    SuperValu Inc. 942,100  33,350 

         467,359 

    Financial Services (25.5%)
    Citigroup, Inc. 22,672,346  986,247 
    Bank of America Corp. 16,211,946  706,841 
    The Hartford Financial Services Group Inc. 4,497,900  362,396 
    MBNA Corp. 11,114,300  279,636 
    Fannie Mae 4,524,300  252,727 
    Capital One Financial Corp. 2,706,000  223,245 
    ACE Ltd. 4,751,000  219,544 
    CIT Group Inc. 4,971,300  219,433 
    Freddie Mac 2,964,500  187,594 
 (1)RenaissanceRe Holdings Ltd. 4,129,300  185,571 
    Wachovia Corp. 2,531,300  127,527 
    Golden West Financial Corp. 1,932,200  125,825 
    PartnerRe Ltd. 1,883,500  122,088 
    JPMorgan Chase & Co. 3,325,800  116,869 
    Lehman Brothers Holdings, Inc. 912,900  95,973 
    U.S. Bancorp 3,161,021  95,020 
    American International Group, Inc. 1,527,000  91,925 
    MetLife, Inc. 1,773,100  87,130 
    Merrill Lynch & Co., Inc. 1,450,000  85,231 
    St. Paul Travelers Cos., Inc. 1,836,917  80,861 
    National City Corp. 2,185,700  80,674 
    The Chubb Corp. 907,500  80,604 
    IPC Holdings Ltd. 1,986,100  80,338 
    SunTrust Banks, Inc. 980,000  71,266 
    XL Capital Ltd. Class A 980,000  70,384 
    UnionBanCal Corp. 976,300  69,649 
    Marsh & McLennan Cos., Inc. 2,179,900  63,152 
    Torchmark Corp. 1,182,800  61,825 
    The Goldman Sachs Group, Inc. 565,000  60,726 
    Allstate Corp. 833,100  51,036 
    Everest Re Group, Ltd. 455,800  44,395 
    Wells Fargo & Co. 510,000  31,283 
    Liberty Property Trust REIT 568,800  25,528 
    The PMI Group Inc. 459,600  18,821 
  * Dime Bancorp Inc.-Litigation Tracking Warrants 7,457,300  1,268 

         5,462,632 

    Health Care (11.6%)
    Wyeth 11,684,400  534,561 
    Pfizer Inc. 17,882,085  473,875 
    Sanofi-Synthelabo SA ADR 10,887,700  471,437 
    GlaxoSmithKline PLC ADR 5,665,800  268,786 
  * Sanofi-Aventis 2,314,593  200,595 
  * WellPoint Inc. 1,957,000  138,438 
    GlaxoSmithKline PLC 5,503,238  129,929 
  * Health Net Inc. 3,083,560  119,642 
  * Medco Health Solutions, Inc. 1,790,000  86,708 
    Eli Lilly & Co. 800,000  45,056 
    HCA Inc. 517,100  25,467 

         2,494,494 

    Integrated Oils (6.4%)
    ExxonMobil Corp. 5,469,008  321,304 
    Petrol Brasil ADR 4,282,300  225,121 
    Petro Canada 2,516,200  180,739 
    ConocoPhillips Co. 2,663,798  166,727 
    Chevron Corp. 2,503,478  145,227 
    Occidental Petroleum Corp. 1,588,200  130,677 
    Petrol Brasil Series A ADR 2,556,000  116,860 
  * Royal Dutch Shell PLC ADR Class A 755,000  46,266 
    Total SA ADR 318,400  39,800 

         1,372,721 

    Other Energy (1.8%)
    GlobalSantaFe Corp. 3,879,200  174,525 
    EnCana Corp. 2,897,238  119,801 
    Noble Corp. 770,000  51,729 
    ENSCO International, Inc. 783,700  31,646 

         377,701 

    Materials & Processing (4.3%)
    Alcoa Inc. 15,788,168  442,858 
  * Smurfit-Stone Container Corp. 11,882,163  144,131 
    Engelhard Corp. 4,994,900  143,304 
  * Akzo Nobel NV 1,417,383  58,432 
    Martin Marietta Materials, Inc. 570,000  41,433 
    Vulcan Materials Co. 550,000  38,632 
    International Paper Co. 655,934  20,728 
    Sappi Ltd. ADR 1,672,200  17,642 
  * Pactiv Corp. 288,700  6,357 
    Aracruz Celulose SA ADR 50,500  1,879 

         915,396 

    Producer Durables (6.0%)
    Applied Materials, Inc. 31,085,500  573,838 
    Goodrich Corp. 3,293,900  145,722 
  * LAM Research Corp. 4,858,300  138,219 
    LM Ericsson Telephone Co. ADR Class B 3,786,000  130,087 
  * Teradyne, Inc. 6,497,300  100,903 
    The Boeing Co. 1,145,000  75,581 
    Cooper Industries, Inc. Class A 936,000  60,447 
  * Varian Semiconductor Equipment Associates, Inc. 580,100  24,086 
    Hubbell Inc. Class B 419,800  19,059 
  * Axcelis Technologies, Inc. 1,710,300  11,818 

         1,279,760 

    Technology (10.9%) `
  * Cisco Systems, Inc. 37,895,400  725,697 
    Microsoft Corp. 19,418,600  497,310 
*(1)Arrow Electronics, Inc. 9,948,200  298,645 
    Hewlett-Packard Co. 5,661,300  139,381 
  * Flextronics International Ltd. 10,047,500  136,043 
  * Avnet, Inc. 4,775,800  125,030 
  * Freescale Semiconductor, Inc. Class A 2,427,300  61,945 
    Electronic Data Systems Corp. 2,990,000  61,504 
  * Ingram Micro, Inc. Class A 2,670,500  49,778 
  * Vishay Intertechnology, Inc. 3,186,021  44,668 
    International Business Machines Corp. 510,000  42,565 
  * Sanmina-SCI Corp. 8,423,608  40,265 
  * Solectron Corp. 10,387,300  39,887 
  * Tellabs, Inc. 3,970,900  38,597 
  * Nortel Networks Corp. 8,159,500  21,459 
  * Unisys Corp. 2,376,300  15,375 

         2,338,149 

    Utilities (8.1%)
  * Comcast Corp. Special Class A 21,259,500  637,785 
  * Nextel Communications, Inc. 13,094,600  455,692 
    Sprint Corp. 9,468,850  254,712 
    Constellation Energy Group, Inc. 1,506,425  90,702 
    Entergy Corp. 1,009,600  78,688 
    American Electric Power Co., Inc. 1,905,300  73,735 
  * Comcast Corp. Class A 2,394,483  73,582 
    Verizon Communications Inc. 1,245,442  42,631 
    SBC Communications Inc. 1,146,900  28,042 

         1,735,569 

    Other (4.8%)
    Tyco International Ltd. 20,891,600  636,567 
    Eaton Corp. 2,422,400  158,280 
    General Electric Co. 4,250,000  146,625 
    Textron, Inc. 1,142,000  84,702 

         1,026,174 


    TOTAL COMMON STOCKS
     Cost $16,241,121)    20,509,017 

    TEMPORARY INVESTMENTS (5.0%)

    Exchange-Traded Funds (0.9%)
    Vanguard Index Participation Equity Receipts
     Value 1,689,100  95,536 
     Total Stock Market 696,000  85,121 

         180,657 

    Money Market Fund (2.9%)
    Vanguard Market Liquidity Fund, 3.267%** 630,164,770  630,165 

     
Face
      Amount
      ($000)

    Repurchase Agreement (1.1%)
    Bank of America Securities
     3.300%, 8/1/2005 $223,800  223,800 
     (Dated 7/29/2005,
     Repurchase Value $223,862,000
     collateralized by Federal National Mortgage Assn
     5.000%, 6/1/2035)


    U.S. Agency Obligation (0.1%)
    Federal National Mortgage Assn.†
 (2) 3.468%, 10/12/2005 30,000  29,794 

    TOTAL TEMPORARY INVESTMENTS
     (Cost $1,024,649)    1,064,416 

    TOTAL INVESTMENTS (100.7%)
     (Cost $17,265,770)    21,573,433 

    OTHER ASSETS AND LIABILITIES--NET (-0.7%)    (155,680)

    NET ASSETS (100%)    $21,417,753 

*Non-income-producing security.
**Money Market fund available only to Vanguard funds and certain trusts and accounts managed by Vanguard. Rate shown is the 7-day yield.
†The issuer operates under a congressional charter; its securities are neither issued nor guaranteed by the U.S. government. If needed, access to additional funding from The U.S. Treasury (beyond the issuer’s line-of-credit) would require congressional action.
(1)Considered an affiliated company of the fund as the fund owns more than 5% of the outstanding voting securities of such company. The total market value of investments in affiliated companies was $936,572,000.
(2)Securities with a value of $29,794,000 have been segregated as initial margin for open futures contracts.
ADR — American Depositary Receipt.
REIT — Real Estate Investment Trust.

Investment Securities: Securities are valued as of the close of trading on the New York Stock Exchange (generally 4:00 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 acquired over 60 days to maturity are valued using the latest bid prices or using valuations based on a matrix system (which considers such factors as security prices, yields, maturities, and ratings), both as furnished by independent pricing services. Other temporary cash investments are valued at amortized cost, which approximates market value.

At July 31, 2005, the cost of investment securities for tax purposes was $17,265,770,000. Net unrealized appreciation of investment securities for tax purposes was $4,307,663,000, consisting of unrealized gains of $4,817,693,000 on securities that had risen in value since their purchase and $510,030,000 in unrealized losses on securities that had fallen in value since their purchase.

Futures Contracts: The fund invests a portion of its cash reserves in equity markets through the use of index futures contracts and exchange-traded funds. After giving effect to these investments, the fund’s effective common stock and temporary cash investment positions represent 98.8% and 1.9%, respectively, of net assets. Futures contracts are valued at their quoted daily settlement prices.

At July 31, 2005, the aggregate settlement value of open futures contracts expiring in September 2005, and the related unrealized appreciation (depreciation) were:


(000)
Futures Contracts Number of
Long Contracts
Aggregate
Settlement
Value
Unrealized
Appreciation
(Depreciation)

S&P 500 Index 1,308  $404,434  $9,758 
S&P Midcap 400 Index 195  70,458  3,193 
E-mini S&P 500 Index 10  618 

Unrealized appreciation (depreciation) on open futures contracts is required to be treated as realized gain (loss) for tax purposes.

Affiliated Companies: Certain of the fund’s investments are in companies that are considered to be affiliated companies of the fund because the fund owns more than 5% of the outstanding voting securities of the company. Transactions during the period in securities of affiliated companies were as follows:




(000)


Current Period Transactions
October 31, 2004
Market
Value
Purchases
at Cost
Proceeds from
Securities
Sold
Dividend
Income
July 31, 2005
Market
Value

Arrow Electronics, Inc. $247,188  $5,628  $16,513  $298,645 
Continental Airlines, Inc. Class B 48,650  1,002  84,307 
Engelhard Corp. 252,589  115,089  $2,628  n/a** 
Freescale Semiconductor Inc. Class A 155,400 162,520  n/a**
Health Net Inc. 222,973  193,139  n/a** 
IPC Holdings Ltd. 110,828  28,830  1,794  n/a** 
Lear Corp. n/a*  145,031  818  901  156,709 
Northwest Airlines Corp. Class A 47,831  20,645  n/a** 
RenaissanceRe Holdings Ltd. 198,824  5,453  2,451  185,571 
Ross Stores, Inc. 286,784  85,486  1,322  211,340 



  $1,571,067
$9,096
$936,572

* At October 31, 2004, the issuer was not an affiliated company of the fund.
** At July 31, 2005, the security is still held but the issuer is no longer an affiliated company of the fund.


Vanguard Windsor II Fund
Schedule of Investments
July 31, 2005


Shares Market
Value
($000)

   COMMON STOCKS (94.1%)    

   Auto & Transportation (0.9%)
   Union Pacific Corp. 2,558,600  $179,895 
   CSX Corp. 1,725,600  78,584 
   General Motors Corp. 1,638,267  60,321 
   Burlington Northern Santa Fe Corp. 347,200  18,836 
   Norfolk Southern Corp. 506,000  18,828 
   Ford Motor Co. 1,172,253  12,590 
   Genuine Parts Co. 113,700  5,206 
   Dana Corp. 93,900  1,475 
 * TRW Automotive Holdings Corp. 46,600  1,241 

        376,976 

   Consumer Discretionary (8.7%)
   Cendant Corp. 29,520,300  630,554 
(1)Mattel, Inc. 28,023,400  522,636 
   Wal-Mart Stores, Inc. 7,585,800  374,359 
   Gannett Co., Inc. 4,340,700  316,697 
   Carnival Corp. 5,649,600  296,039 
 * Time Warner, Inc. 13,643,494  232,212 
(1)Service Corp. International 26,080,100  226,114 
   The Walt Disney Co. 7,903,832  202,654 
   Eastman Kodak Co. 7,338,000  196,218 
   Federated Department Stores, Inc. 2,031,300  154,115 
 * MGM Mirage, Inc. 1,243,300  56,508 
   McDonald's Corp. 1,403,700  43,753 
   Waste Management, Inc. 1,351,300  37,999 
   Viacom Inc. Class B 996,301  33,366 
   Yum! Brands, Inc. 414,100  21,678 
 * Interpublic Group of Cos., Inc. 1,715,100  21,439 
   Kimberly-Clark Corp. 320,800  20,454 
   Limited Brands, Inc. 653,200  15,925 
   R.R. Donnelley & Sons Co. 395,600  14,261 
   VF Corp. 234,500  13,845 
   Knight Ridder 177,600  11,111 
   Nordstrom, Inc. 293,200  10,851 
   Starwood Hotels & Resorts Worldwide, Inc. 158,600  10,043 
   ServiceMaster Co. 553,700  7,608 
 * AutoNation, Inc. 283,400  6,119 
   Royal Caribbean Cruises, Ltd. 71,183  3,235 
   Regal Entertainment Group Class A 130,900  2,528 
 * PHH Corp. 80,460  2,276 
   Hearst-Argyle Television Inc. 68,400  1,715 
   Belo Corp. Class A 60,116  1,436 
   Sabre Holdings Corp. 71,300  1,369 

        3,489,117 

   Consumer Staples (8.2%)
   Altria Group, Inc. 14,367,500  962,047 
   Imperial Tobacco Group ADR 12,840,000  668,194 
   ConAgra Foods, Inc. 21,639,900  491,442 
   PepsiCo, Inc. 5,678,300  309,638 
   The Coca-Cola Co. 5,851,699  256,070 
   Anheuser-Busch Cos., Inc. 5,263,400  233,432 
   The Procter & Gamble Co. 2,387,500  132,817 
   Kraft Foods Inc. 1,540,900  47,075 
   Unilever PLC ADR 1,096,400  42,792 
   Albertson's, Inc. 1,646,300  35,083 
   Safeway, Inc. 1,385,800  33,675 
   Sara Lee Corp. 1,111,900  22,160 
   Reynolds American Inc. 184,400  15,362 
   General Mills, Inc. 219,000  10,381 
 * Smithfield Foods, Inc. 364,500  9,521 
   Carolina Group 176,500  6,871 
   UST, Inc. 107,500  4,947 
   PepsiAmericas, Inc. 180,573  4,655 
   SuperValu Inc. 84,900  3,005 

        3,289,167 

   Financial Services (25.5%)
   Wells Fargo & Co. 17,396,400  1,067,094 
   Washington Mutual, Inc. 22,330,659  948,606 
   Bank of America Corp. 20,119,538  877,212 
   MBNA Corp. 31,872,400  801,910 
   Citigroup, Inc. 18,232,840  793,129 
   Allstate Corp. 12,501,744  765,857 
   SLM Corp. 13,841,500  712,699 
   JPMorgan Chase & Co. 14,032,438  493,100 
   Manulife Financial Corp. 9,703,415  488,082 
   XL Capital Ltd. Class A 5,230,600  375,662 
   St. Paul Travelers Cos., Inc. 7,194,440  316,699 
   Automatic Data Processing, Inc. 6,138,000  272,589 
   The Goldman Sachs Group, Inc. 2,381,200  255,931 
   Freddie Mac 4,016,400  254,158 
   The Hartford Financial Services Group Inc. 2,644,326  213,053 
   Wachovia Corp. 4,059,484  204,517 
   UnumProvident Corp. 7,482,165  143,283 
   MetLife, Inc. 2,636,500  129,558 
   Loews Corp. 1,164,900  97,421 
   Prudential Financial, Inc. 1,419,100  94,938 
   American International Group, Inc. 959,100  57,738 
   American Express Co. 976,600  53,713 
   The Principal Financial Group, Inc. 1,119,297  49,193 
   Comerica, Inc. 676,994  41,364 
   Fannie Mae 645,500  36,058 
   U.S. Bancorp 1,178,722  35,432 
   Morgan Stanley 661,785  35,108 
   Merrill Lynch & Co., Inc. 588,000  34,563 
   CIT Group Inc. 763,300  33,692 
   KeyCorp 936,328  32,060 
   UnionBanCal Corp. 380,574  27,150 
   Assurant, Inc. 595,800  22,015 
   The Chubb Corp. 247,100  21,947 
   PNC Financial Services Group 398,300  21,835 
 * Conseco, Inc. 986,400  21,513 
   CIGNA Corp. 175,700  18,756 
   MBIA, Inc. 293,000  17,797 
   SunTrust Banks, Inc. 234,800  17,075 
   MGIC Investment Corp. 245,126  16,811 
   Lehman Brothers Holdings, Inc. 156,500  16,453 
   The Bank of New York Co., Inc. 517,800  15,938 
 * Providian Financial Corp. 842,000  15,914 
   National City Corp. 431,000  15,908 
   Genworth Financial Inc. 476,300  14,937 
   SAFECO Corp. 262,500  14,422 
   Fifth Third Bancorp 313,399  13,508 
   Countrywide Financial Corp. 358,328  12,900 
   Nationwide Financial Services, Inc. 305,500  12,092 
   Zions Bancorp 163,471  11,685 
   BB&T Corp. 274,240  11,469 
   Simon Property Group, Inc. REIT 139,500  11,124 
   Equity Office Properties Trust REIT 269,100  9,540 
   Equity Residential REIT 190,000  7,676 
   General Growth Properties Inc. REIT 148,700  6,837 
   Vornado Realty Trust REIT 76,700  6,799 
   W.R. Berkley Corp. 178,533  6,682 
   AmSouth Bancorp 231,200  6,453 
   Astoria Financial Corp. 205,000  5,728 
   Archstone-Smith Trust REIT 133,100  5,657 
   ProLogis REIT 122,600  5,586 
   Boston Properties, Inc. REIT 72,723  5,538 
   Doral Financial Corp. 306,112  4,723 
   Plum Creek Timber Co. Inc. REIT 122,300  4,629 
   Avalonbay Communities, Inc. REIT 48,200  4,220 
   Kimco Realty Corp. REIT 63,700  4,183 
   Cincinnati Financial Corp. 92,725  3,822 
   Fidelity National Financial, Inc. 96,000  3,782 
   Public Storage, Inc. REIT 56,000  3,738 
   Compass Bancshares Inc. 71,600  3,452 
   Developers Diversified Realty Corp. REIT 68,400  3,329 
   Leucadia National Corp. 82,800  3,275 
   Bear Stearns Co., Inc. 32,000  3,268 
   Duke Realty Corp. REIT 95,000  3,226 
   iStar Financial Inc. REIT 74,200  3,175 
   Radian Group, Inc. 54,700  2,821 
   Apartment Investment & Management Co. Class A REIT 63,200  2,781 
   The Macerich Co. REIT 39,500  2,774 
   Regency Centers Corp. REIT 44,500  2,746 
   Host Marriott Corp. REIT 144,199  2,689 
   Liberty Property Trust REIT 57,100  2,563 
   AMB Property Corp. REIT 55,300  2,543 
   Health Care Properties Investors REIT 88,700  2,471 
   Weingarten Realty Investors REIT 56,300  2,211 
   TCF Financial Corp. 77,200  2,121 
   Hospitality Properties Trust REIT 45,400  2,016 
   New Plan Excel Realty Trust REIT 68,400  1,873 
   Friedman, Billings, Ramsey Group, Inc. REIT 95,800  1,347 
   BOK Financial Corp. 17,500  852 

        10,212,794 

   Health Care (11.5%)
   Pfizer Inc. 39,675,445  1,051,398 
 * WellPoint Inc. 9,648,800  682,556 
   Schering-Plough Corp. 25,379,200  528,395 
   Bristol-Myers Squibb Co. 20,229,900  505,343 
   Baxter International, Inc. 12,133,400  476,479 
   Wyeth 10,321,500  472,209 
   Johnson & Johnson 3,953,100  252,840 
 * Triad Hospitals, Inc. 3,194,495  158,671 
   Cardinal Health, Inc. 1,654,443  98,572 
 * Watson Pharmaceuticals, Inc. 2,899,523  96,844 
 * Medco Health Solutions, Inc. 1,897,658  91,923 
   Merck & Co., Inc. 2,887,900  89,698 
   HCA Inc. 795,900  39,198 
 * Tenet Healthcare Corp. 2,222,800  26,985 
   Eli Lilly & Co. 269,000  15,150 
 * Humana Inc. 44,400  1,769 
 * King Pharmaceuticals, Inc. 151,800  1,693 

        4,589,723 

   Integrated Oils (10.9%)
   ConocoPhillips Co. 19,512,968  1,221,316 
   Occidental Petroleum Corp. 14,776,900  1,215,843 
   BP PLC ADR 12,509,472  824,124 
   Chevron Corp. 13,914,486  807,179 
   ExxonMobil Corp. 4,255,594  250,016 
   Petro Canada 369,500  26,541 
   Amerada Hess Corp. 134,899  15,899 
   Unocal Corp. 176,900  11,472 
   Marathon Oil Corp. 98,300  5,737 

        4,378,127 

   Other Energy (1.5%)
   Anadarko Petroleum Corp. 2,875,100  254,014 
   Williams Cos., Inc. 8,859,500  188,176 
 * Reliant Energy, Inc. 5,047,243  66,926 
   Valero Energy Corp. 321,028  26,575 
   Kerr-McGee Corp. 228,729  18,346 
   Burlington Resources, Inc. 254,795  16,335 
   Apache Corp. 158,570  10,846 
   Sunoco, Inc. 61,900  7,783 
   Chesapeake Energy Corp. 261,037  6,816 
   Noble Energy, Inc. 69,800  5,759 
   Devon Energy Corp. 79,062  4,435 
   Premcor, Inc. 38,600  2,958 

        608,969 

   Materials & Processing (3.3%)
(1)Hanson PLC ADR 7,826,950  393,303 
   Lyondell Chemical Co. 11,470,900  320,497 
   Alcoa Inc. 6,014,500  168,707 
   MeadWestvaco Corp. 4,612,613  134,781 
   Weyerhaeuser Co. 568,200  39,194 
 * The Mosaic Co. 2,075,900  36,121 
   Dow Chemical Co. 718,500  34,452 
   Alcan Inc. 673,500  22,751 
   International Paper Co. 690,100  21,807 
   PPG Industries, Inc. 249,900  16,251 
   United States Steel Corp. 340,300  14,514 
   Bunge Ltd. 228,601  14,034 
   Nucor Corp. 253,000  14,029 
   Georgia Pacific Group 405,900  13,861 
   Eastman Chemical Co. 250,200  13,859 
   Phelps Dodge Corp. 123,254  13,120 
   Masco Corp. 361,100  12,245 
   Sherwin-Williams Co. 210,908  10,041 
   Archer-Daniels-Midland Co. 322,600  7,400 
   Rohm & Haas Co. 87,200  4,016 
 * Owens-Illinois, Inc. 92,300  2,368 
   Lafarge North America Inc. 29,600  2,065 

        1,309,416 

   Producer Durables (5.0%)
   Nokia Corp. ADR 37,453,300  597,379 
   Emerson Electric Co. 7,377,300  485,426 
(1)Cooper Industries, Inc. Class A 4,650,800  300,349 
   United Technologies Corp. 3,378,700  171,300 
   Northrop Grumman Corp. 2,844,321  157,718 
   Centex Corp. 1,196,400  88,510 
   Lockheed Martin Corp. 882,200  55,049 
   Pulte Homes, Inc. 400,900  37,532 
   Lennar Corp. Class A 232,600  15,647 
   Parker Hannifin Corp. 216,300  14,215 
   Goodrich Corp. 282,000  12,476 
   Pitney Bowes, Inc. 260,451  11,611 
   The Boeing Co. 175,800  11,605 
   Applied Materials, Inc. 555,799  10,260 
   D. R. Horton, Inc. 234,933  9,651 
   Ingersoll-Rand Co. 102,600  8,020 
 * Xerox Corp. 451,500  5,964 
   Novellus Systems, Inc. 152,000  4,385 
   Deere & Co. 46,200  3,397 
   W.W. Grainger, Inc. 45,700  2,848 
   KB HOME 28,000  2,293 
 * Toll Brothers, Inc. 25,200  1,397 

        2,007,032 

   Technology (4.9%)
   Hewlett-Packard Co. 22,377,872  550,942 
   International Business Machines Corp. 3,719,300  310,413 
   Electronic Data Systems Corp. 12,755,522  262,381 
   Motorola, Inc. 12,058,300  255,395 
   Microsoft Corp. 9,065,100  232,157 
   Computer Associates International, Inc. 3,986,700  109,435 
 * Nortel Networks Corp. 27,051,100  71,144 
 * Freescale Semiconductor, Inc. Class A 2,428,700  61,980 
   Raytheon Co. 1,125,500  44,266 
   General Dynamics Corp. 149,500  17,221 
   National Semiconductor Corp. 645,400  15,948 
 * Computer Sciences Corp. 336,300  15,396 
 * Ingram Micro, Inc. Class A 800,599  14,923 
   Scientific-Atlanta, Inc. 155,000  5,968 
 * Freescale Semiconductor, Inc. Class B 184,457  4,750 
 * Flextronics International Ltd. 237,300  3,213 
 * Solectron Corp. 754,687  2,898 
 * Lucent Technologies, Inc. 838,000  2,455 
   Seagate Technology 53,000  1,027 

        1,981,912 

   Utilities (9.3%)
   Entergy Corp. 8,131,600  633,777 
   Exelon Corp. 11,593,100  620,463 
   Duke Energy Corp. 20,622,000  609,174 
   American Electric Power Co., Inc. 15,637,185  605,159 
   Verizon Communications Inc. 12,321,354  421,760 
(1)CenterPoint Energy Inc. 23,159,700  318,214 
   FirstEnergy Corp. 3,051,400  151,899 
   FPL Group, Inc. 1,522,300  65,642 
   SBC Communications Inc. 2,208,049  53,987 
   BellSouth Corp. 1,220,800  33,694 
   ALLTEL Corp. 450,406  29,952 
   PG&E Corp. 562,800  21,178 
   Edison International 505,200  20,653 
   Sempra Energy 399,300  16,970 
   Dominion Resources, Inc. 227,000  16,766 
   PPL Corp. 253,600  15,617 
   Southern Co. 379,200  13,268 
   KeySpan Corp. 296,409  12,061 
   AT&T Corp. 517,969  10,256 
   Consolidated Edison Inc. 161,700  7,787 
   CenturyTel, Inc. 209,100  7,187 
   Pepco Holdings, Inc. 274,000  6,540 
   Wisconsin Energy Corp. 139,400  5,597 
   TECO Energy, Inc. 279,600  5,301 
   Constellation Energy Group, Inc. 79,731  4,801 
   Citizens Communications Co. 207,400  2,725 
   Energy East Corp. 91,900  2,561 
   MDU Resources Group, Inc. 55,200  1,695 
 * U.S. Cellular Corp. 3,300  172 

        3,714,856 

   Other (4.4%)
   Tyco International Ltd. 24,445,800  744,864 
   General Electric Co. 13,353,100  460,682 
   ITT Industries, Inc. 4,050,500  430,973 
   3M Co. 982,300  73,673 
   Honeywell International Inc. 538,688  21,160 
   Textron, Inc. 99,600  7,387 
   Eaton Corp. 73,400  4,796 
   Johnson Controls, Inc. 53,700  3,085 

        1,746,620 


   TOTAL COMMON STOCKS
    (Cost $27,452,941)    37,704,709 

   TEMPORARY INVESTMENTS (6.3%)

   Exchange-Traded Funds (3.0%)
   Vanguard Index Participation Equity Receipts-
    Total Stock Market 8,407,600  1,028,249 
    Value 2,681,500  151,666 

        1,179,915 

   Money Market Fund (3.2%)
   Vanguard Market Liquidity Fund, 3.267%** 1,294,847,473  1,294,847 

     Face
     Amount
     ($000)

   U.S. Agency Obligations (0.1%)
   Federal National Mortgage Assn.†
(2) 3.294%, 10/5/2005 $6,000  5,963 
(2) 3.468%, 10/12/2005 32,000  31,780 

        37,743 


   TOTAL TEMPORARY INVESTMENTS
    (Cost $2,346,863)    2,512,505 

   TOTAL INVESTMENTS (100.4%)
    (Cost $29,799,804)    40,217,214 

   OTHER ASSETS AND LIABILITIES--NET (-0.4%)    (167,462)

   NET ASSETS (100%)    $40,049,752 

*Non-income-producing security.
**Money Market fund available only to Vanguard funds and certain trusts and accounts managed by Vanguard. Rate shown is the 7-day yield.
†The issuer operates under a congressional charter; its securities are neither issued nor guaranteed by the U.S. government. If needed, access to additional funding from The U.S. Treasury (beyond the issuer’s line-of-credit) would require congressional action.
(1)Considered an affiliated company of the fund as the fund owns more than 5% of the outstanding voting securities of such company. The total market value of investments in affiliated companies was $1,760,616,000.
(2)Securities with a value of $37,743,000 have been segregated as initial margin for open futures contracts.
ADR — American Depositary Receipt.
REIT — Real Estate Investment Trust.

Investment Securities: Securities are valued as of the close of trading on the New York Stock Exchange (generally 4:00 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 acquired over 60 days to maturity are valued using the latest bid prices or using valuations based on a matrix system (which considers such factors as security prices, yields, maturities, and ratings), both as furnished by independent pricing services. Other temporary cash investments are valued at amortized cost, which approximates market value.

At July 31, 2005, the cost of investment securities for tax purposes was $29,799,804,000. Net unrealized appreciation of investment securities for tax purposes was $10,417,410,000, consisting of unrealized gains of $10,934,253,000 on securities that had risen in value since their purchase and $516,843,000 in unrealized losses on securities that had fallen in value since their purchase.

Futures Contracts: The fund invests a portion of its cash reserves in equity markets through the use of index futures contracts and exchange-traded funds. After giving effect to these investments, the fund’s effective common stock and temporary cash investment positions represent 97.9% and 2.5%, respectively, of net assets. Futures contracts are valued at their quoted daily settlement prices.

At July 31, 2005, the aggregate settlement value of open futures contracts expiring in September 2005, and the related unrealized appreciation (depreciation) were:


(000)
Futures Contracts Number of
Long Contracts
Aggregate
Settlement
Value
Unrealized
Appreciation
(Depreciation)

S&P 500 Index 769  $237,775  $6,057 
E-mini S&P 500 Index 1,609  99,500  209 

Unrealized appreciation (depreciation) on open futures contracts is required to be treated as realized gain (loss) for tax purposes.

Affiliated Companies: Certain of the fund’s investments are in companies that are considered to be affiliated companies of the fund because the fund owns more than 5% of the outstanding voting securities of the company. Transactions during the period in securities of affiliated companies were as follows:

(000)
Current Period Transactions
October 31, 2004
Market
Value
Purchases
at Cost
Proceeds from
Securities
Sold
Dividend
Income
July 31, 2005
Market
Value

CenterPoint Energy Inc. $249,353  $4,565  $10,352  $8,550  $318,214 
Cooper Industries, Inc. Class A 297,186  5,069  300,349 
Hanson PLC ADR 288,814  9,536  393,303 
Mattel, Inc. n/a*  215,107  9,200  522,636 
Reliant Energy, Inc. 181,861  159,975  n/a**
Service Corp. International 172,389  1,304 226,114



  $1,189,603
    $33,659
$1,760,616


* At October 31, 2004, the issuer was not an affiliated company of the fund.
** At July 31, 2005, the security is still held but the issuer is no longer an affiliated company of the fund.


Item 2: 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. During the last fiscal quarter, there was no significant change in the Registrant’s internal control over financial reporting that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting.

Item 3:

Exhibits.
(a) Certifications.

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

VANGUARD WINDSOR FUNDS

BY: (signature)
(HEIDI STAM)
JOHN J. BRENNAN*
CHIEF EXECUTIVE OFFICER

Date: September 21, 2005

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 WINDSOR FUNDS

BY: (signature)
(HEIDI STAM)
JOHN J. BRENNAN*
CHIEF EXECUTIVE OFFICER

Date: September 21, 2005

VANGUARD WINDSOR FUNDS

BY: (signature)
(HEIDI STAM)
THOMAS J. HIGGINS*
TREASURER

Date: September 21, 2005

*By Power of Attorney. Filed on December 20, 2004, see File Number 002-14336. Incorporated by Reference.

EX-99.CERT 2 certification.htm CERTIFICATION

CERTIFICATIONS

I, John J. Brennan, certify that:

1.     I have reviewed this report on Form N-Q of Vanguard Windsor Funds;

2.     Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.     Based on my knowledge, the schedules of investments included in this report fairly present in all material respects the investments of the registrant as of the end of the fiscal quarter for which the report is filed;

4.     The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have:

(a)     Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b)     Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c)     Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report, based on such evaluation; and

(d)     Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.     The registrant’s other certifying officer(s) and I have disclosed to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a)     All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize, and report financial information; and

(b)     Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: September 21, 2005

/s/ John J. Brennan
Chief Executive Officer


CERTIFICATIONS

I, Thomas J. Higgins, certify that:

1.     I have reviewed this report on Form N-Q of Vanguard Windsor Funds;

2.     Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.     Based on my knowledge, the schedules of investments included in this report fairly present in all material respects the investments of the registrant as of the end of the fiscal quarter for which the report is filed;

4.     The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have:

(a)     Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b)     Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c)     Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report, based on such evaluation; and

(d)     Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.     The registrant’s other certifying officer(s) and I have disclosed to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a)     All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize, and report financial information; and

(b)     Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: September 21, 2005

/s/ Thomas J. Higgins
Treasurer
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