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: 811-00834 |
Name of Registrant: Vanguard Windsor 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 |
Date of fiscal year end: October 31 |
Date of reporting period: July 31, 2018 |
Item 1: Schedule of Investments |
Vanguard Windsor Fund | |||
Schedule of Investments (unaudited) | |||
As of July 31, 2018 | |||
Market | |||
Value | |||
Shares | ($000) | ||
Common Stocks (97.4%)1 | |||
Consumer Discretionary (8.9%) | |||
Newell Brands Inc. | 8,872,953 | 232,383 | |
TJX Cos. Inc. | 1,947,225 | 189,387 | |
Ford Motor Co. | 17,932,958 | 180,047 | |
Comcast Corp. Class A | 4,491,300 | 160,699 | |
* | Norwegian Cruise Line Holdings Ltd. | 2,643,698 | 132,264 |
Expedia Group Inc. | 940,477 | 125,873 | |
DR Horton Inc. | 2,678,683 | 117,058 | |
Omnicom Group Inc. | 1,662,541 | 114,433 | |
Interpublic Group of Cos. Inc. | 4,983,648 | 112,381 | |
General Motors Co. | 2,928,508 | 111,020 | |
Hilton Worldwide Holdings Inc. | 1,240,300 | 97,562 | |
Lowe's Cos. Inc. | 813,773 | 80,840 | |
Lennar Corp. Class A | 1,233,568 | 64,479 | |
News Corp. Class A | 4,001,857 | 60,308 | |
Kohl's Corp. | 343,475 | 25,372 | |
1,804,106 | |||
Consumer Staples (5.6%) | |||
British American Tobacco plc | 3,772,660 | 207,393 | |
* | US Foods Holding Corp. | 5,491,493 | 185,667 |
Archer-Daniels-Midland Co. | 3,189,300 | 153,916 | |
Kroger Co. | 4,911,681 | 142,439 | |
Walmart Inc. | 1,403,400 | 125,225 | |
* | Post Holdings Inc. | 1,444,827 | 125,064 |
Coty Inc. Class A | 6,782,590 | 90,955 | |
Ingredion Inc. | 485,354 | 49,166 | |
Kellogg Co. | 625,000 | 44,394 | |
1,124,219 | |||
Energy (9.6%) | |||
Pioneer Natural Resources Co. | 1,428,983 | 270,464 | |
Royal Dutch Shell plc ADR | 3,336,671 | 228,128 | |
* | Concho Resources Inc. | 1,428,936 | 208,410 |
Anadarko Petroleum Corp. | 2,709,585 | 198,206 | |
Halliburton Co. | 3,832,812 | 162,588 | |
Chevron Corp. | 1,216,900 | 153,658 | |
Exxon Mobil Corp. | 1,713,960 | 139,705 | |
* | Newfield Exploration Co. | 4,715,926 | 135,442 |
BP plc ADR | 2,975,024 | 134,144 | |
Canadian Natural Resources Ltd. | 2,995,561 | 109,757 | |
National Oilwell Varco Inc. | 1,994,099 | 96,953 | |
Cenovus Energy Inc. | 6,621,254 | 66,477 | |
Murphy Oil Corp. | 474,954 | 15,797 | |
Baker Hughes a GE Co. | 404,150 | 13,976 | |
1,933,705 | |||
Financials (22.0%) | |||
Bank of America Corp. | 15,659,374 | 483,562 | |
American International Group Inc. | 7,274,733 | 401,638 | |
Citigroup Inc. | 5,503,218 | 395,626 | |
MetLife Inc. | 7,826,914 | 358,003 |
Wells Fargo & Co. | 5,296,691 | 303,447 |
Comerica Inc. | 2,106,735 | 204,227 |
PNC Financial Services Group Inc. | 1,364,323 | 197,595 |
JPMorgan Chase & Co. | 1,559,517 | 179,267 |
Arthur J Gallagher & Co. | 2,493,514 | 177,912 |
Capital One Financial Corp. | 1,797,232 | 169,515 |
Unum Group | 4,027,459 | 160,011 |
ING Groep NV ADR | 8,733,673 | 133,363 |
UBS Group AG | 7,567,589 | 124,260 |
* AXA Equitable Holdings Inc. | 5,594,427 | 123,021 |
Morgan Stanley | 2,395,936 | 121,139 |
* Voya Financial Inc. | 2,353,572 | 118,902 |
Goldman Sachs Group Inc. | 493,525 | 117,178 |
Axis Capital Holdings Ltd. | 1,685,313 | 95,321 |
Franklin Resources Inc. | 2,695,150 | 92,498 |
Intercontinental Exchange Inc. | 980,817 | 72,492 |
KeyCorp | 3,143,625 | 65,607 |
Fifth Third Bancorp | 2,159,384 | 63,896 |
* KKR & Co. Inc. Class A | 2,130,259 | 58,327 |
M&T Bank Corp. | 313,885 | 54,412 |
Principal Financial Group Inc. | 929,473 | 53,984 |
Willis Towers Watson plc | 205,562 | 32,771 |
Zions Bancorporation | 606,260 | 31,344 |
Allstate Corp. | 308,319 | 29,327 |
Invesco Ltd. | 695,225 | 18,764 |
* Brighthouse Financial Inc. | 184,920 | 8,031 |
4,445,440 | ||
Health Care (13.5%) | ||
Bristol-Myers Squibb Co. | 6,017,627 | 353,536 |
UnitedHealth Group Inc. | 1,170,723 | 296,451 |
* Mylan NV | 7,657,017 | 285,683 |
Medtronic plc | 2,956,114 | 266,730 |
Koninklijke Philips NV | 4,577,201 | 200,939 |
Allergan plc | 991,279 | 182,485 |
HCA Healthcare Inc. | 1,399,866 | 173,905 |
Amgen Inc. | 847,946 | 166,664 |
McKesson Corp. | 1,301,548 | 163,474 |
Merck & Co. Inc. | 2,367,092 | 155,920 |
* Biogen Inc. | 398,772 | 133,337 |
Pfizer Inc. | 3,236,417 | 129,230 |
* Express Scripts Holding Co. | 1,328,137 | 105,534 |
CVS Health Corp. | 688,190 | 44,636 |
Cardinal Health Inc. | 822,527 | 41,085 |
Cigna Corp. | 170,556 | 30,601 |
2,730,210 | ||
Industrials (9.9%) | ||
Harris Corp. | 1,591,815 | 262,570 |
Eaton Corp. plc | 2,830,929 | 235,448 |
* IHS Markit Ltd. | 3,530,565 | 187,226 |
Honeywell International Inc. | 1,068,834 | 170,639 |
Raytheon Co. | 810,210 | 160,446 |
* Sensata Technologies Holding plc | 2,867,412 | 155,901 |
Johnson Controls International plc | 3,920,600 | 147,062 |
Dover Corp. | 1,596,742 | 132,498 |
JB Hunt Transport Services Inc. | 1,067,005 | 127,934 |
General Electric Co. | 7,997,178 | 109,002 |
American Airlines Group Inc. | 2,189,529 | 86,574 | |
Stanley Black & Decker Inc. | 368,612 | 55,096 | |
Parker-Hannifin Corp. | 317,760 | 53,717 | |
^ | Schneider National Inc. Class B | 1,739,179 | 45,462 |
L3 Technologies Inc. | 166,050 | 35,608 | |
Knight-Swift Transportation Holdings Inc. | 801,847 | 26,100 | |
1,991,283 | |||
Information Technology (14.8%) | |||
Broadcom Inc. | 1,379,946 | 306,031 | |
* | Arrow Electronics Inc. | 3,675,285 | 278,734 |
* | Micron Technology Inc. | 4,694,344 | 247,814 |
Lam Research Corp. | 1,180,375 | 225,027 | |
Apple Inc. | 1,091,817 | 207,762 | |
* | VeriSign Inc. | 1,372,302 | 199,299 |
* | Keysight Technologies Inc. | 3,162,727 | 183,438 |
KLA-Tencor Corp. | 1,542,970 | 181,176 | |
Marvell Technology Group Ltd. | 7,975,183 | 169,951 | |
Oracle Corp. | 3,473,300 | 165,607 | |
SS&C Technologies Holdings Inc. | 2,968,761 | 157,552 | |
Cisco Systems Inc. | 3,716,139 | 157,155 | |
QUALCOMM Inc. | 2,296,812 | 147,203 | |
Hewlett Packard Enterprise Co. | 8,187,213 | 126,411 | |
Cognizant Technology Solutions Corp. Class A | 1,364,386 | 111,197 | |
Cypress Semiconductor Corp. | 4,626,400 | 82,396 | |
Microsoft Corp. | 310,179 | 32,904 | |
Micro Focus International plc ADR | 126,795 | 2,054 | |
2,981,711 | |||
Materials (4.8%) | |||
Celanese Corp. Class A | 2,186,499 | 258,247 | |
FMC Corp. | 2,198,957 | 197,642 | |
* | Alcoa Corp. | 2,959,290 | 128,049 |
Reliance Steel & Aluminum Co. | 1,229,405 | 110,892 | |
PPG Industries Inc. | 982,613 | 108,736 | |
Vulcan Materials Co. | 851,400 | 95,357 | |
International Paper Co. | 1,447,616 | 77,781 | |
976,704 | |||
Other (0.4%) | |||
^,2 Vanguard Value ETF | 703,525 | 76,445 | |
Real Estate (3.2%) | |||
American Tower Corp. | 1,683,997 | 249,636 | |
Host Hotels & Resorts Inc. | 7,387,345 | 154,691 | |
Public Storage | 565,589 | 123,202 | |
Weyerhaeuser Co. | 3,468,407 | 118,550 | |
646,079 | |||
Telecommunication Services (1.6%) | |||
Verizon Communications Inc. | 5,598,340 | 289,098 | |
AT&T Inc. | 815,225 | 26,063 | |
Nippon Telegraph & Telephone Corp. | 310,200 | 14,348 | |
329,509 | |||
Utilities (3.1%) | |||
Edison International | 3,529,009 | 235,138 | |
NextEra Energy Inc. | 1,225,702 | 205,354 | |
Sempra Energy | 880,465 | 101,773 | |
Avangrid Inc. | 1,258,907 | 63,021 |
Entergy Corp. | 367,502 | 29,870 | |||
635,156 | |||||
Total Common Stocks (Cost $14,492,435) | 19,674,567 | ||||
Coupon | |||||
Temporary Cash Investments (2.9%)1 | |||||
Money Market Fund (1.6%) | |||||
3,4 Vanguard Market Liquidity Fund | 2.145% | 3,341,483 | 334,149 | ||
Face | |||||
Maturity | Amount | ||||
Date | ($000) | ||||
Repurchase Agreement (1.2%) | |||||
Bank of America Securities, LLC | |||||
(Dated 7/31/18, Repurchase Value | |||||
$242,513,000, collateralized by Federal | |||||
National Mortgage Assn. 3.000%-4.500%, | |||||
2/1/26-5/1/48, with a value of | |||||
$247,350,000) | 1.930% | 8/1/18 | 242,500 | 242,500 | |
U.S. Government and Agency Obligations (0.1%) | |||||
United States Treasury Bill | 1.928% | 10/4/18 | 3,000 | 2,990 | |
5 | United States Treasury Bill | 1.982% | 10/18/18 | 3,100 | 3,087 |
5 | United States Treasury Bill | 2.034% | 11/15/18 | 2,300 | 2,286 |
5 | United States Treasury Bill | 2.122% | 1/10/19 | 2,000 | 1,981 |
10,344 | |||||
Total Temporary Cash Investments (Cost $587,009) | 586,993 | ||||
Total Investments (100.3%) (Cost $15,079,444) | 20,261,560 | ||||
Other Assets and Liabilities-Net (-0.3%)4 | (55,150) | ||||
Net Assets (100%) | 20,206,410 |
* Non-income-producing security.
^ Includes partial security positions on loan to broker-dealers. The total value of securities on loan is $29,415,000.
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 98.1% and 2.2%, respectively, of net assets.
2 Considered an affiliated company of the fund as the issuer is another member of The Vanguard Group.
3 Affiliated money market fund available only to Vanguard funds and certain trusts and accounts managed by
Vanguard. Rate shown is the 7-day yield.
4 Includes $30,049,000 of collateral received for securities on loan.
5 Securities with a value of $6,707,000 have been segregated as initial margin for open futures contracts.
ADR—American Depositary Receipt.
Derivative Financial Instruments Outstanding as of Period End | ||||
Futures Contracts | ||||
($000) | ||||
Value and | ||||
Number of | Unrealized | |||
Long (Short) | Notional | Appreciation | ||
Expiration | Contracts | Amount | (Depreciation) | |
Long Futures Contracts | ||||
E-mini S&P 500 Index | 9/21/2018 | 1,072 | 150,997 | 1,486 |
Windsor Fund
Unrealized appreciation (depreciation) on open futures contracts is required to be treated as realized gain (loss) for tax purposes.
Forward Currency Contracts | ||||||
Contract Amount (000) | ||||||
Unrealized | ||||||
Contract | Appreciation | |||||
Settlement | (Depreciation) | |||||
Counterparty | Date | Receive | Deliver | ($000) | ||
Toronto-Dominion Bank | 9/19/18 | JPY | 1,502,000 | USD | 13,685 | (206) |
Deutsche Bank AG | 9/19/18 | JPY | 738,100 | USD | 6,586 | 38 |
Bank of America, N.A. | 9/19/18 | USD | 34,522 | JPY | 3,790,446 | 505 |
337 | ||||||
JPY—Japanese yen. | ||||||
USD—U.S. dollar. |
Unrealized appreciation (depreciation) on open forward currency contracts is treated as realized gain (loss) for tax purposes.
A. Security Valuation: Securities are valued as of the close of trading on the New York Stock Exchange (generally 4 p.m., Eastern time) on the valuation date. Equity securities are valued at the latest quoted sales prices or official closing prices taken from the primary market in which each security trades; such securities not traded on the valuation date are valued at the mean of the latest quoted bid and asked prices. Securities for which market quotations are not readily available, or whose values have been affected by events occurring before the fund's pricing time but after the close of the securities’ primary markets, are valued at their fair values calculated according to procedures adopted by the board of trustees. These procedures include obtaining quotations from an independent pricing service, monitoring news to identify significant market- or security-specific events, and evaluating changes in the values of foreign market proxies (for example, ADRs, futures contracts, or exchange-traded funds), between the time the foreign markets close and the fund's pricing time. When fair-value pricing is employed, the prices of securities used by a fund to calculate its net asset value may differ from quoted or published prices for the same securities. 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.
B. Foreign Currency: Securities and other assets and liabilities denominated in foreign currencies are translated into U.S. dollars using exchange rates obtained from an independent third party as of the fund's pricing time on the valuation date. Realized gains (losses) and unrealized appreciation (depreciation) on investment securities include the effects of changes in exchange rates since the securities were purchased, combined with the effects of changes in security prices. Fluctuations in the value of other assets and liabilities resulting from changes in exchange rates are recorded as unrealized foreign currency gains (losses) until the assets or liabilities are settled in cash, at which time they are recorded as realized foreign currency gains (losses).
Windsor Fund
C. Repurchase Agreements: The fund enters into repurchase agreements with institutional counterparties. Securities pledged as collateral to the fund under repurchase agreements are held by a custodian bank until the agreements mature, and in the absence of a default, such collateral cannot be repledged, resold, or rehypothecated. Each agreement requires that the market value of the collateral be sufficient to cover payments of interest and principal. The fund further mitigates its counterparty risk by entering into repurchase agreements only with a diverse group of prequalified counterparties, monitoring their financial strength, and entering into master repurchase agreements with its counterparties. The master repurchase agreements provide that, in the event of a counterparty's default (including bankruptcy), the fund may terminate any repurchase agreements with that counterparty, determine the net amount owed, and sell or retain the collateral up to the net amount owed to the fund. Such action may be subject to legal proceedings, which may delay or limit the disposition of collateral.
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 Schedule of Investments.
The following table summarizes the market value of the fund's investments as of July 31, 2018, based on the inputs used to value them:
Level 1 | Level 2 | Level 3 | |
Investments | ($000) | ($000) | ($000) |
Common Stocks | 19,251,888 | 422,679 | — |
Temporary Cash Investments | 334,149 | 252,844 | — |
Futures Contracts—Assets1 | 886 | — | — |
Forward Currency Contracts—Assets | — | 543 | — |
Forward Currency Contracts—Liabilities | (206) | ||
Total | 19,586,923 | 675,860 | — |
1 Represents variation margin on the last day of the reporting period. |
E. Futures and Forward Currency 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 Schedule of Investments.
Windsor Fund
The fund enters into forward currency contracts to provide the appropriate currency exposure related to any open futures contracts or to protect the value of securities and related receivables and payables against changes in foreign exchange rates. The fund's risks in using these contracts include movement in the values of the foreign currencies relative to the U.S. dollar and the ability of the counterparties to fulfill their obligations under the contracts. The fund mitigates its counterparty risk by entering into forward currency contracts only with a diverse group of prequalified counterparties, monitoring their financial strength, entering into master netting arrangements with its counterparties, and requiring its counterparties to transfer collateral as security for their performance. In the absence of a default, the collateral pledged or received by the fund cannot be repledged, resold, or rehypothecated. The master netting arrangements provide that, in the event of a counterparty’s default (including bankruptcy), the fund may terminate the forward currency contracts, determine the net amount owed by either party in accordance with its master netting arrangements, and sell or retain any collateral held up to the net amount owed to the fund under the master netting arrangements. The forward currency contracts contain provisions whereby a counterparty may terminate open contracts if the fund's net assets decline below a certain level, triggering a payment by the fund if the fund is in a net liability position at the time of the termination. The payment amount would be reduced by any collateral the fund has pledged. Any assets pledged as collateral for open contracts are noted in the Schedule of Investments. The value of collateral received or pledged is compared daily to the value of the forward currency contracts exposure with each counterparty, and any difference, if in excess of a specified minimum transfer amount, is adjusted and settled within two business days.
Futures contracts are valued at their quoted daily settlement prices. Forward currency contracts are valued at their quoted daily prices obtained from an independent third party, adjusted for currency risk based on the expiration date of each contract. The notional amounts of the contracts are not recorded in the Schedule of Investments. Fluctuations in the value of the contracts are recorded as an asset (liability).
F. At July 31, 2018, the cost of investment securities for tax purposes was $15,079,444,000. Net unrealized appreciation of investment securities for tax purposes was $5,182,116,000, consisting of unrealized gains of $5,573,472,000 on securities that had risen in value since their purchase and $391,356,000 in unrealized losses on securities that had fallen in value since their purchase.
Vanguard Windsor II Fund | |||
Schedule of Investments (unaudited) | |||
As of July 31, 2018 | |||
Market | |||
Value | |||
Shares | ($000) | ||
Common Stocks (98.2%)1 | |||
Consumer Discretionary (10.1%) | |||
Lowe's Cos. Inc. | 9,995,896 | 992,992 | |
Comcast Corp. Class A | 22,509,107 | 805,376 | |
Dollar General Corp. | 6,390,991 | 627,276 | |
2 | Adient plc | 6,032,177 | 287,313 |
Aptiv plc | 2,126,576 | 208,553 | |
General Motors Co. | 5,381,238 | 204,003 | |
* | Discovery Communications Inc. | 8,064,700 | 197,988 |
McDonald's Corp. | 1,231,725 | 194,046 | |
Omnicom Group Inc. | 2,692,524 | 185,326 | |
DR Horton Inc. | 3,837,656 | 167,706 | |
Starbucks Corp. | 2,865,270 | 150,112 | |
Lennar Corp. Class A | 2,807,920 | 146,770 | |
* | Dollar Tree Inc. | 1,359,700 | 124,113 |
CBS Corp. Class B | 1,801,200 | 94,869 | |
Goodyear Tire & Rubber Co. | 3,212,700 | 77,780 | |
Magna International Inc. | 1,209,800 | 73,532 | |
Harley-Davidson Inc. | 1,315,300 | 56,413 | |
Genuine Parts Co. | 563,581 | 54,842 | |
* | AutoZone Inc. | 75,110 | 52,992 |
Whirlpool Corp. | 357,300 | 46,842 | |
Publicis Groupe SA | 687,520 | 43,875 | |
Interpublic Group of Cos. Inc. | 1,543,200 | 34,799 | |
Bed Bath & Beyond Inc. | 1,630,200 | 30,534 | |
Hyundai Motor Co. | 263,261 | 30,510 | |
*,^ Discovery Communications Inc. Class A | 1,118,000 | 29,716 | |
* | Meritage Homes Corp. | 284,390 | 12,271 |
Best Buy Co. Inc. | 34,271 | 2,571 | |
Las Vegas Sands Corp. | 34,291 | 2,466 | |
Lennar Corp. Class B | 47,457 | 2,050 | |
Lear Corp. | 11,027 | 1,986 | |
PulteGroup Inc. | 65,230 | 1,858 | |
* | Liberty Media Corp-Liberty SiriusXM A | 39,309 | 1,853 |
Ralph Lauren Corp. Class A | 13,450 | 1,816 | |
Kohl's Corp. | 22,205 | 1,640 | |
News Corp. Class B | 96,906 | 1,483 | |
H&R Block Inc. | 39,712 | 999 | |
Macy's Inc. | 23,318 | 926 | |
Gentex Corp. | 33,349 | 774 | |
Toll Brothers Inc. | 19,044 | 672 | |
* | Liberty Latin America Ltd. Class A | 25,863 | 494 |
Twenty-First Century Fox Inc. | 9,900 | 440 | |
Ford Motor Co. | 26,795 | 269 | |
Darden Restaurants Inc. | 1,686 | 180 | |
* | Liberty Media Corp-Liberty SiriusXM C | 1,873 | 89 |
4,953,115 | |||
Consumer Staples (6.4%) | |||
Philip Morris International Inc. | 7,041,262 | 607,661 | |
Altria Group Inc. | 8,558,293 | 502,201 |
Coca-Cola Co. | 10,768,387 | 502,130 |
Imperial Brands plc ADR | 12,623,648 | 483,612 |
PepsiCo Inc. | 2,911,021 | 334,767 |
Procter & Gamble Co. | 2,008,251 | 162,427 |
Mondelez International Inc. Class A | 2,751,913 | 119,378 |
Nestle SA | 1,448,100 | 118,011 |
Kroger Co. | 3,907,152 | 113,307 |
Unilever plc ADR | 1,411,600 | 80,475 |
Molson Coors Brewing Co. Class B | 1,022,678 | 68,519 |
Kellogg Co. | 525,976 | 37,360 |
Lamb Weston Holdings Inc. | 31,043 | 2,181 |
Sysco Corp. | 31,258 | 2,101 |
JM Smucker Co. | 18,716 | 2,080 |
Walmart Inc. | 20,950 | 1,869 |
Ingredion Inc. | 13,574 | 1,375 |
Tyson Foods Inc. Class A | 18,811 | 1,085 |
Conagra Brands Inc. | 3,392 | 125 |
Clorox Co. | 755 | 102 |
3,140,766 | ||
Energy (12.5%) | ||
Schlumberger Ltd. | 11,962,334 | 807,697 |
ConocoPhillips | 10,008,775 | 722,333 |
BP plc ADR | 15,266,487 | 688,366 |
Occidental Petroleum Corp. | 7,748,656 | 650,345 |
Phillips 66 | 4,932,531 | 608,378 |
Chevron Corp. | 3,674,745 | 464,010 |
Apache Corp. | 5,815,900 | 267,531 |
Suncor Energy Inc. | 5,853,380 | 246,661 |
Marathon Oil Corp. | 11,184,226 | 236,211 |
Hess Corp. | 3,408,500 | 223,700 |
Halliburton Co. | 5,173,125 | 219,444 |
EOG Resources Inc. | 1,669,500 | 215,265 |
Cabot Oil & Gas Corp. | 7,483,823 | 175,870 |
National Oilwell Varco Inc. | 2,629,500 | 127,846 |
Murphy Oil Corp. | 3,585,435 | 119,252 |
Royal Dutch Shell plc ADR | 1,718,906 | 117,522 |
Pioneer Natural Resources Co. | 596,912 | 112,978 |
Andeavor | 429,700 | 64,481 |
* Kosmos Energy Ltd. | 5,732,500 | 43,452 |
Exxon Mobil Corp. | 95,831 | 7,811 |
Valero Energy Corp. | 25,104 | 2,971 |
Anadarko Petroleum Corp. | 30,300 | 2,216 |
HollyFrontier Corp. | 28,501 | 2,126 |
* Continental Resources Inc. | 24,921 | 1,592 |
6,128,058 | ||
Financials (19.5%) | ||
Wells Fargo & Co. | 26,654,047 | 1,527,010 |
JPMorgan Chase & Co. | 9,481,566 | 1,089,906 |
Citigroup Inc. | 13,099,865 | 941,749 |
American International Group Inc. | 13,536,166 | 747,332 |
US Bancorp | 12,452,062 | 660,084 |
Bank of America Corp. | 20,146,621 | 622,128 |
American Express Co. | 6,029,617 | 600,068 |
Bank of New York Mellon Corp. | 9,118,578 | 487,570 |
Citizens Financial Group Inc. | 8,279,348 | 329,352 |
SunTrust Banks Inc. | 4,213,351 | 303,656 |
Intercontinental Exchange Inc. | 3,588,300 | 265,211 |
Fifth Third Bancorp | 6,824,114 | 201,926 |
Capital One Financial Corp. | 1,831,000 | 172,700 |
Goldman Sachs Group Inc. | 614,718 | 145,953 |
Aon plc | 1,001,350 | 143,744 |
Navient Corp. | 9,795,109 | 129,393 |
Travelers Cos. Inc. | 948,800 | 123,477 |
Sterling Bancorp | 5,557,600 | 123,379 |
Discover Financial Services | 1,723,300 | 123,061 |
* SLM Corp. | 9,795,020 | 110,586 |
State Street Corp. | 1,067,966 | 94,312 |
Barclays plc | 36,326,564 | 92,408 |
Commerce Bancshares Inc. | 1,360,950 | 90,911 |
* AXA Equitable Holdings Inc. | 3,869,700 | 85,095 |
Ally Financial Inc. | 2,109,470 | 56,449 |
China Construction Bank Corp. | 56,748,000 | 51,884 |
CIT Group Inc. | 821,600 | 43,487 |
Banco de Sabadell SA | 24,989,467 | 41,602 |
Sumitomo Mitsui Financial Group Inc. | 1,036,900 | 41,152 |
Morgan Stanley | 790,548 | 39,970 |
Synchrony Financial | 1,360,621 | 39,376 |
Industrial & Commercial Bank of China Ltd. | 45,262,000 | 33,637 |
Aflac Inc. | 62,594 | 2,913 |
Allstate Corp. | 27,702 | 2,635 |
Regions Financial Corp. | 127,570 | 2,374 |
Progressive Corp. | 39,036 | 2,343 |
Santander Consumer USA Holdings Inc. | 110,783 | 2,132 |
Torchmark Corp. | 22,875 | 2,015 |
T. Rowe Price Group Inc. | 16,284 | 1,939 |
Zions Bancorporation | 37,371 | 1,932 |
Comerica Inc. | 19,889 | 1,928 |
Ameriprise Financial Inc. | 13,203 | 1,923 |
* E*TRADE Financial Corp. | 31,927 | 1,910 |
Brown & Brown Inc. | 63,635 | 1,862 |
Unum Group | 37,831 | 1,503 |
Lincoln National Corp. | 17,887 | 1,218 |
MetLife Inc. | 17,059 | 780 |
Fidelity National Financial Inc. | 11,290 | 457 |
* Voya Financial Inc. | 3,663 | 185 |
* SVB Financial Group | 548 | 169 |
PNC Financial Services Group Inc. | 1,092 | 158 |
9,588,944 | ||
Health Care (16.6%) | ||
Medtronic plc | 16,049,968 | 1,448,189 |
Pfizer Inc. | 33,312,316 | 1,330,161 |
Johnson & Johnson | 8,578,956 | 1,136,883 |
* Express Scripts Holding Co. | 8,193,786 | 651,078 |
Sanofi ADR | 13,826,565 | 599,520 |
CVS Health Corp. | 7,430,465 | 481,940 |
Cardinal Health Inc. | 7,858,003 | 392,507 |
UnitedHealth Group Inc. | 1,292,500 | 327,287 |
Anthem Inc. | 1,177,267 | 297,848 |
Gilead Sciences Inc. | 2,946,100 | 229,295 |
Cigna Corp. | 1,129,855 | 202,718 |
Zoetis Inc. | 1,936,447 | 167,464 |
GlaxoSmithKline plc ADR | 3,261,600 | 135,650 |
Danaher Corp. | 1,308,451 | 134,221 |
* Biogen Inc. | 365,615 | 122,251 |
Humana Inc. | 344,910 | 108,364 |
Roche Holding AG | 429,900 | 105,603 |
Merck & Co. Inc. | 1,246,839 | 82,129 |
Thermo Fisher Scientific Inc. | 252,700 | 59,266 |
AbbVie Inc. | 591,281 | 54,534 |
Koninklijke Philips NV | 998,311 | 43,746 |
Zimmer Biomet Holdings Inc. | 325,300 | 40,832 |
Eli Lilly & Co. | 48,159 | 4,759 |
* Laboratory Corp. of America Holdings | 12,703 | 2,227 |
Amgen Inc. | 10,863 | 2,135 |
Agilent Technologies Inc. | 31,405 | 2,074 |
Universal Health Services Inc. Class B | 16,330 | 1,994 |
Quest Diagnostics Inc. | 15,427 | 1,662 |
Abbott Laboratories | 22,038 | 1,444 |
Perrigo Co. plc | 16,339 | 1,316 |
* IQVIA Holdings Inc. | 9,700 | 1,183 |
8,170,280 | ||
Industrials (9.0%) | ||
United Technologies Corp. | 7,532,341 | 1,022,440 |
Johnson Controls International plc | 23,172,228 | 869,190 |
General Electric Co. | 42,062,736 | 573,315 |
General Dynamics Corp. | 1,647,473 | 329,099 |
Raytheon Co. | 1,403,156 | 277,867 |
Eaton Corp. plc | 2,944,418 | 244,887 |
Honeywell International Inc. | 975,921 | 155,806 |
Norfolk Southern Corp. | 911,918 | 154,114 |
CNH Industrial NV | 12,311,700 | 144,293 |
Cummins Inc. | 949,181 | 135,553 |
Wabtec Corp. | 1,119,500 | 123,503 |
Rockwell Automation Inc. | 606,602 | 113,774 |
Deere & Co. | 650,600 | 94,200 |
Stanley Black & Decker Inc. | 488,022 | 72,945 |
* Gates Industrial Corp. plc | 3,249,200 | 50,590 |
PACCAR Inc. | 660,878 | 43,433 |
Embraer SA ADR | 1,339,300 | 27,389 |
WW Grainger Inc. | 7,490 | 2,596 |
Allison Transmission Holdings Inc. | 43,017 | 2,022 |
Expeditors International of Washington Inc. | 24,293 | 1,851 |
Caterpillar Inc. | 11,384 | 1,637 |
KAR Auction Services Inc. | 24,765 | 1,472 |
American Airlines Group Inc. | 30,912 | 1,222 |
Pentair plc | 16,050 | 717 |
Waste Management Inc. | 5,869 | 528 |
Delta Air Lines Inc. | 6,691 | 364 |
4,444,807 | ||
Information Technology (17.4%) | ||
Microsoft Corp. | 15,950,592 | 1,692,039 |
Oracle Corp. | 19,761,855 | 942,245 |
Apple Inc. | 4,655,636 | 885,921 |
QUALCOMM Inc. | 10,525,649 | 674,589 |
* Alphabet Inc. Class A | 458,898 | 563,169 |
* Alphabet Inc. Class C | 396,656 | 482,833 |
Cisco Systems Inc. | 9,532,771 | 403,141 |
Samsung Electronics Co. Ltd. | 7,670,000 | 318,384 |
Hewlett Packard Enterprise Co. | 20,545,000 | 317,215 |
Taiwan Semiconductor Manufacturing Co. Ltd. ADR | 7,567,119 | 311,841 |
Intel Corp. | 5,011,988 | 241,077 |
* eBay Inc. | 7,163,134 | 239,607 |
* Visa Inc. Class A | 1,456,600 | 199,175 |
Corning Inc. | 5,910,900 | 196,124 |
Analog Devices Inc. | 1,918,801 | 184,473 |
Telefonaktiebolaget LM Ericsson ADR | 20,439,100 | 160,651 |
Skyworks Solutions Inc. | 1,594,600 | 150,817 |
Motorola Solutions Inc. | 1,175,720 | 142,615 |
DXC Technology Co. | 1,584,500 | 134,271 |
* Worldpay Inc. Class A | 941,100 | 77,349 |
* Palo Alto Networks Inc. | 378,300 | 75,002 |
* Electronic Arts Inc. | 324,780 | 41,815 |
* Teradata Corp. | 943,500 | 36,127 |
TE Connectivity Ltd. | 385,300 | 36,052 |
International Business Machines Corp. | 29,310 | 4,248 |
HP Inc. | 129,411 | 2,987 |
NetApp Inc. | 32,184 | 2,495 |
* Advanced Micro Devices Inc. | 113,192 | 2,075 |
Western Union Co. | 100,508 | 2,026 |
Seagate Technology plc | 36,619 | 1,927 |
Marvell Technology Group Ltd. | 85,927 | 1,831 |
* Dell Technologies Inc. Class V | 19,093 | 1,766 |
* NVIDIA Corp. | 7,050 | 1,726 |
* Micron Technology Inc. | 27,056 | 1,428 |
* Zebra Technologies Corp. | 9,836 | 1,357 |
Broadcom Inc. | 3,150 | 699 |
* First Solar Inc. | 5,999 | 314 |
8,531,411 | ||
Materials (3.3%) | ||
Air Products & Chemicals Inc. | 4,169,234 | 684,463 |
DowDuPont Inc. | 9,519,293 | 654,642 |
International Paper Co. | 1,717,600 | 92,287 |
Steel Dynamics Inc. | 1,850,750 | 87,152 |
Vulcan Materials Co. | 623,300 | 69,810 |
LyondellBasell Industries NV Class A | 24,787 | 2,746 |
Huntsman Corp. | 64,264 | 2,155 |
Freeport-McMoRan Inc. | 127,950 | 2,111 |
Westlake Chemical Corp. | 16,950 | 1,817 |
* Alcoa Corp. | 41,047 | 1,776 |
WR Grace & Co. | 4,922 | 363 |
Reliance Steel & Aluminum Co. | 2,945 | 266 |
Chemours Co. | 1,356 | 62 |
1,599,650 | ||
Other (0.4%) | ||
SPDR S&P 500 ETF Trust | 460,743 | 129,621 |
3 Vanguard Value ETF | 444,068 | 48,252 |
177,873 | ||
Real Estate (0.4%) | ||
Prologis Inc. | 2,632,686 | 172,757 |
Weyerhaeuser Co. | 71,392 | 2,440 |
Host Hotels & Resorts Inc. | 107,130 | 2,243 |
Jones Lang LaSalle Inc. | 11,651 | 1,993 |
Gaming and Leisure Properties Inc. | 53,909 | 1,958 |
Park Hotels & Resorts Inc. | 61,121 | 1,912 |
Spirit Realty Capital Inc. | 213,943 | 1,791 |
Extra Space Storage Inc. | 17,807 | 1,673 | |||
186,767 | |||||
Telecommunication Services (1.2%) | |||||
Verizon Communications Inc. | 4,217,099 | 217,771 | |||
Vodafone Group plc ADR | 7,857,536 | 192,902 | |||
AT&T Inc. | 5,584,943 | 178,551 | |||
589,224 | |||||
Utilities (1.4%) | |||||
Exelon Corp. | 5,790,054 | 246,077 | |||
Dominion Energy Inc. | 3,355,835 | 240,647 | |||
Southern Co. | 1,786,800 | 86,838 | |||
PPL Corp. | 2,930,300 | 84,305 | |||
NextEra Energy Inc. | 24,374 | 4,084 | |||
FirstEnergy Corp. | 70,945 | 2,514 | |||
Entergy Corp. | 27,562 | 2,240 | |||
AES Corp. | 151,790 | 2,028 | |||
MDU Resources Group Inc. | 68,704 | 1,992 | |||
NRG Energy Inc. | 59,038 | 1,870 | |||
National Fuel Gas Co. | 26,382 | 1,417 | |||
Public Service Enterprise Group Inc. | 1,291 | 66 | |||
674,078 | |||||
Total Common Stocks (Cost $34,444,990) | 48,184,973 | ||||
Coupon | |||||
Temporary Cash Investments (2.1%)1 | |||||
Money Market Fund (2.0%) | |||||
4,5 Vanguard Market Liquidity Fund | 2.145% | 9,748,716 | 974,872 | ||
Face | |||||
Maturity | Amount | ||||
Date | ($000) | ||||
U.S. Government and Agency Obligations (0.1%) | |||||
United States Treasury Bill | 1.941% | 9/27/18 | 7,200 | 7,178 | |
6 | United States Treasury Bill | 1.934% | 10/11/18 | 100 | 100 |
6 | United States Treasury Bill | 2.022%–2.078% | 11/15/18 | 12,100 | 12,029 |
6 | United States Treasury Bill | 2.033% | 11/23/18 | 15,000 | 14,905 |
34,212 | |||||
Total Temporary Cash Investments (Cost $1,009,138) | 1,009,084 | ||||
Total Investments (100.3%) (Cost $35,454,128) | 49,194,057 | ||||
Other Assets and Liabilities-Net (-0.3%)5 | (126,850) | ||||
Net Assets (100%) | 49,067,207 |
* Non-income-producing security.
^ Includes partial security positions on loan to broker-dealers. The total value of securities on loan is $4,678,000.
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 98.8% and 1.5%, respectively, of net assets.
2 Considered an affiliated company of the fund as the fund owns more than 5% of the outstanding voting securities
of such company.
3 Considered an affiliated company of the fund as the issuer is another member of The Vanguard Group.
4 Affiliated money market fund available only to Vanguard funds and certain trusts and accounts managed by
Vanguard. Rate shown is the 7-day yield.
5 Includes $4,752,000 of collateral received for securities on loan.
6 Securities with a value of $13,319,000 have been segregated as initial margin for open futures contracts.
ADR—American Depositary Receipt.
Windsor II Fund | ||||
Derivative Financial Instruments Outstanding as of Period End | ||||
Futures Contracts | ||||
($000) | ||||
Value and | ||||
Number of | Unrealized | |||
Long (Short) | Notional | Appreciation | ||
Expiration | Contracts | Amount | (Depreciation) | |
Long Futures Contracts | ||||
E-mini S&P 500 Index | September 2018 | 2,135 | 300,725 | 1,215 |
Unrealized appreciation (depreciation) on open futures contracts is required to be treated as realized gain (loss) for tax purposes.
A. 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. These procedures include obtaining quotations from an independent pricing service,monitoring news to identify significant market- or security-specific events, and evaluating changesin the values of foreign market proxies (for example, ADRs, futures contracts, or exchange-tradedfunds), between the time the foreign markets close and the fund’s pricing time. When fair-valuepricing is employed, the prices of securities used by a fund to calculate its net asset value may differfrom quoted or published prices for the same securities. 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.
B. Foreign Currency: Securities and other assets and liabilities denominated in foreign currencies are translated into U.S. dollars using exchange rates obtained from an independent third party as of the fund's pricing time on the valuation date. Realized gains (losses) and unrealized appreciation (depreciation) on investment securities include the effects of changes in exchange rates since the securities were purchased, combined with the effects of changes in security prices. Fluctuations in the value of other assets and liabilities resulting from changes in exchange rates are recorded as unrealized foreign currency gains (losses) until the assets or liabilities are settled in cash, at which time they are recorded as realized foreign currency gains (losses).
C. Various inputs may be used to determine the value of the fund's investments. These inputs are summarized in three broad levels for financial statement purposes. The inputs or methodologies used to value securities are not necessarily an indication of the risk associated with investing in those securities.
Level 1—Quoted prices in active markets for identical securities.
Level 2—Other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.).
Level 3—Significant unobservable inputs (including the fund's own assumptions used to determine the fair value of investments). Any investments valued with significant unobservable inputs are noted on the Schedule of Investments.
The following table summarizes the market value of the fund's investments as of July 31, 2018, based on the inputs used to value them:
Windsor II Fund | |||
Level 1 | Level 2 | Level 3 | |
Investments | ($000) | ($000) | ($000) |
Common Stocks | 47,307,906 | 877,067 | — |
Temporary Cash Investments | 974,872 | 34,212 | — |
Futures Contracts—Assets1 | 1,667 | — | — |
Total | 48,284,445 | 911,279 | — |
1 Represents variation margin on the last day of the reporting period. |
D. 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 Schedule of Investments.
Futures contracts are valued at their quoted daily settlement prices. The notional amounts of the contracts are not recorded in the Schedule of Investments. Fluctuations in the value of the contracts are recorded as an asset (liability).
E. At July 31, 2018, the cost of investment securities for tax purposes was $35,454,128,000. Net unrealized appreciation of investment securities for tax purposes was $13,739,929,000, consisting of unrealized gains of $15,278,072,000 on securities that had risen in value since their purchase and $1,538,143,000 in unrealized losses on securities that had fallen in value since their purchase.
F. 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 or the issuer is another member of The Vanguard Group. Transactions during the period in securities of these companies were as follows:
Current Period Transactions | ||||||||
Oct. 31, | Proceeds | Net | Change in | July 31, | ||||
2017 | from | Realized | Net | Capital Gain | 2018 | |||
Market | Purchases | Securities | Gain | Unrealized | Distributions | Market | ||
Value | at Cost | Sold | (Loss) | App.(Dep.) | Income | Received | Value | |
($000) | ($000) | ($000) | ($000) | ($000) | ($000) | ($000) | ($000) | |
Adient plc | NA1 | 242,129 | 41,294 | (9,010) | (152,454) | 4,045 | — | 287,313 |
Vanguard Market | ||||||||
Liquidity Fund | 1,240,439 | NA2 | NA2 | (49) | (45) | 14,270 | — | 974,872 |
Vanguard Value ETF | 64,101 | — | 19,769 | 10,631 | (6,711) | 955 | — | 48,252 |
Total | 1,304,540 | 242,129 | 61,063 | 1,572 | (159,210) | 19,270 | — 1,310,437 |
1 Not applicable—at October 31, 2017, the issuer was not an affiliated company of the fund.
2 Not applicable—purchases and sales are for temporary cash investment purposes.
Windsor II 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
VANGUARD WINDSOR FUNDS | |
|
|
By: |
/s/ MORTIMER J. BUCKLEY* |
MORTIMER J. BUCKLEY | |
CHIEF EXECUTIVE OFFICER | |
|
Date: September 13, 2018
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: |
/s/ MORTIMER J. BUCKLEY* |
MORTIMER J. BUCKLEY | |
CHIEF EXECUTIVE OFFICER | |
Date: September 13, 2018 | |
|
VANGUARD WINDSOR FUNDS |
|
|
By: |
/s/ THOMAS J. HIGGINS* |
THOMAS J. HIGGINS | |
CHIEF FINANCIAL OFFICER | |
Date: September 13, 2018 |
*By: /s/ Anne E. Robinson
Anne E. Robinson, pursuant to a Power of Attorney filed on January 18, 2018 see file Number 33-32216, Incorporated by Reference.
CERTIFICATIONS
I, Mortimer J. Buckley, 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 registrants 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 registrants 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 registrants internal control over financial reporting that occurred during the registrants most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrants internal control over financial reporting; and
5. The registrants other certifying officer(s) and I have disclosed to the registrants auditors and the audit committee of the registrants 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 registrants 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 registrants internal control over financial reporting.
Date: September 13, 2018 | /s/ Mortimer J. Buckley |
Mortimer J. Buckley | |
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 registrants 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 registrants 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 registrants internal control over financial reporting that occurred during the registrants most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrants internal control over financial reporting; and
5. The registrants other certifying officer(s) and I have disclosed to the registrants auditors and the audit committee of the registrants 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 registrants 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 registrants internal control over financial reporting.
Date: September 13, 2018 | /s/ Thomas J. Higgins |
Thomas J. Higgins | |
Chief Financial Officer |