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: 811-02968-99
Name of Registrant: | Vanguard Trustees’ Equity Fund |
Address of Registrant: | P.O. Box 2600 |
Valley Forge, PA 19482 |
Name and address of agent for service: | Anne E. Robinson, Esquire |
P.O. Box 876 | |
Valley Forge, PA 19482 |
Registrant’s telephone number, including area code: (610) 669-1000
Date of fiscal year end: October 31
Date of reporting period: November 1, 2022—April 30, 2023
Item 1: Reports to Shareholders
• | 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. |
• | 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. |
Six Months Ended April 30, 2023 | |||
International Value Fund | Beginning Account Value 10/31/2022 | Ending Account Value 4/30/2023 | Expenses Paid During Period |
Based on Actual Fund Return | $1,000.00 | $1,227.30 | $2.15 |
Based on Hypothetical 5% Yearly Return | 1,000.00 | 1,022.86 | 1.96 |
United Kingdom | 14.5% |
Japan | 11.5 |
France | 8.6 |
China | 8.6 |
Germany | 7.8 |
Switzerland | 7.4 |
Hong Kong | 6.2 |
Netherlands | 4.7 |
United States | 3.5 |
India | 3.3 |
Brazil | 2.9 |
Canada | 2.5 |
South Korea | 2.5 |
Singapore | 2.5 |
Ireland | 2.3 |
Indonesia | 2.0 |
Finland | 1.5 |
Taiwan | 1.5 |
Denmark | 1.1 |
Other | 5.1 |
Futures Contracts | ||||
($000) | ||||
Expiration | Number of Long (Short) Contracts | Notional Amount | Value and Unrealized Appreciation (Depreciation) | |
Long Futures Contracts | ||||
MSCI EAFE Index | June 2023 | 1,976 | 212,380 | 9,026 |
MSCI Emerging Market Index | June 2023 | 1,733 | 85,281 | 707 |
9,733 |
($000s, except shares, footnotes, and per-share amounts) | Amount |
Assets | |
Investments in Securities, at Value1 | |
Unaffiliated Issuers (Cost $11,675,071) | 13,014,116 |
Affiliated Issuers (Cost $646,654) | 646,773 |
Total Investments in Securities | 13,660,889 |
Investment in Vanguard | 482 |
Foreign Currency, at Value (Cost $14,808) | 14,859 |
Cash Collateral Pledged—Futures Contracts | 8,632 |
Receivables for Investment Securities Sold | 60,153 |
Receivables for Accrued Income | 99,238 |
Receivables for Capital Shares Issued | 10,661 |
Variation Margin Receivable—Futures Contracts | 211 |
Total Assets | 13,855,125 |
Liabilities | |
Due to Custodian | 931 |
Payables for Investment Securities Purchased | 35,616 |
Collateral for Securities on Loan | 65,946 |
Payables for Capital Shares Redeemed | 5,834 |
Payables to Investment Advisor | 5,704 |
Payables to Vanguard | 1,705 |
Deferred Foreign Capital Gains Taxes | 6,368 |
Total Liabilities | 122,104 |
Net Assets | 13,733,021 |
1 Includes $61,851,000 of securities on loan. | |
At April 30, 2023, net assets consisted of: | |
Paid-in Capital | 12,480,733 |
Total Distributable Earnings (Loss) | 1,252,288 |
Net Assets | 13,733,021 |
Net Assets | |
Applicable to 348,900,363 outstanding $.001 par value shares of beneficial interest (unlimited authorization) | 13,733,021 |
Net Asset Value Per Share | $39.36 |
Six Months Ended April 30, 2023 | |
($000) | |
Investment Income | |
Income | |
Dividends1 | 204,055 |
Interest2 | 10,811 |
Securities Lending—Net | 472 |
Total Income | 215,338 |
Expenses | |
Investment Advisory Fees—Note B | |
Basic Fee | 10,787 |
Performance Adjustment | 410 |
The Vanguard Group—Note C | |
Management and Administrative | 12,869 |
Marketing and Distribution | 402 |
Custodian Fees | 344 |
Shareholders’ Reports | 102 |
Trustees’ Fees and Expenses | 3 |
Other Expenses | 782 |
Total Expenses | 25,699 |
Net Investment Income | 189,639 |
Realized Net Gain (Loss) | |
Investment Securities Sold2,3 | 60,268 |
Futures Contracts | 20,188 |
Foreign Currencies | 1,390 |
Realized Net Gain (Loss) | 81,846 |
Change in Unrealized Appreciation (Depreciation) | |
Investment Securities2,4 | 2,307,538 |
Futures Contracts | 26,352 |
Foreign Currencies | 1,036 |
Change in Unrealized Appreciation (Depreciation) | 2,334,926 |
Net Increase (Decrease) in Net Assets Resulting from Operations | 2,606,411 |
1 | Dividends are net of foreign withholding taxes of $16,953,000. |
2 | Interest income, realized net gain (loss), capital gain distributions received, and change in unrealized appreciation (depreciation) from an affiliated company of the fund were $10,611,000, $62,000, $2,000, and ($16,000), respectively. Purchases and sales are for temporary cash investment purposes. |
3 | Realized Gain (Loss) is net of foreign capital gains taxes of $5,729,000. |
4 | The change in unrealized appreciation (depreciation) is net of the change in deferred foreign capital gains taxes of ($7,149,000). |
Six Months Ended April 30, 2023 | Year Ended October 31, 2022 | ||
($000) | ($000) | ||
Increase (Decrease) in Net Assets | |||
Operations | |||
Net Investment Income | 189,639 | 365,829 | |
Realized Net Gain (Loss) | 81,846 | (314,479) | |
Change in Unrealized Appreciation (Depreciation) | 2,334,926 | (3,259,520) | |
Net Increase (Decrease) in Net Assets Resulting from Operations | 2,606,411 | (3,208,170) | |
Distributions | |||
Total Distributions | (341,585) | (633,591) | |
Capital Share Transactions | |||
Issued | 1,074,006 | 2,352,101 | |
Issued in Lieu of Cash Distributions | 304,194 | 576,930 | |
Redeemed | (1,642,536) | (2,573,910) | |
Net Increase (Decrease) from Capital Share Transactions | (264,336) | 355,121 | |
Total Increase (Decrease) | 2,000,490 | (3,486,640) | |
Net Assets | |||
Beginning of Period | 11,732,531 | 15,219,171 | |
End of Period | 13,733,021 | 11,732,531 |
For a Share Outstanding Throughout Each Period | Six Months Ended April 30, 2023 | Year Ended October 31, | ||||
2022 | 2021 | 2020 | 2019 | 2018 | ||
Net Asset Value, Beginning of Period | $32.96 | $43.76 | $32.48 | $36.63 | $35.86 | $39.26 |
Investment Operations | ||||||
Net Investment Income1 | .540 | 1.019 | 1.091 | .684 | 1.104 | .950 |
Net Realized and Unrealized Gain (Loss) on Investments | 6.843 | (10.011) | 10.824 | (3.723) | 1.669 | (3.607) |
Total from Investment Operations | 7.383 | (8.992) | 11.915 | (3.039) | 2.773 | (2.657) |
Distributions | ||||||
Dividends from Net Investment Income | (.983) | (1.087) | (.635) | (1.111) | (.943) | (.743) |
Distributions from Realized Capital Gains | — | (.721) | — | — | (1.060) | — |
Total Distributions | (.983) | (1.808) | (.635) | (1.111) | (2.003) | (.743) |
Net Asset Value, End of Period | $39.36 | $32.96 | $43.76 | $32.48 | $36.63 | $35.86 |
Total Return2 | 22.73% | -21.28% | 36.91% | -8.69% | 8.48% | -6.95% |
Ratios/Supplemental Data | ||||||
Net Assets, End of Period (Millions) | $13,733 | $11,733 | $15,219 | $9,408 | $10,360 | $9,524 |
Ratio of Total Expenses to Average Net Assets3 | 0.39% | 0.38% | 0.36% | 0.35% | 0.37% | 0.38% |
Ratio of Net Investment Income to Average Net Assets | 2.90% | 2.68% | 2.56% | 2.05% | 3.15% | 2.41% |
Portfolio Turnover Rate | 13% | 37% | 33% | 72% | 38% | 28% |
The expense ratio and net investment income ratio for the current period have been annualized. |
1 | Calculated based on average shares outstanding. |
2 | Total returns do not include account service fees that may have applied in the periods shown. Fund prospectuses provide information about any applicable account service fees. |
3 | Includes performance-based investment advisory fee increases (decreases) of 0.01%, 0.00%, (0.01%), (0.02%), (0.01%), and (0.01%). |
Level 1 ($000) | Level 2 ($000) | Level 3 ($000) | Total ($000) | |
Investments | ||||
Assets | ||||
Common Stocks—North and South America | 1,277,531 | 71,550 | — | 1,349,081 |
Common Stocks—Other | 871,283 | 10,793,752 | — | 11,665,035 |
Temporary Cash Investments | 646,773 | — | — | 646,773 |
Total | 2,795,587 | 10,865,302 | — | 13,660,889 |
Derivative Financial Instruments | ||||
Assets | ||||
Futures Contracts1 | 9,733 | — | — | 9,733 |
1 | Includes cumulative appreciation (depreciation) on futures contracts and centrally cleared swaps, if any, as reported in the Schedule of Investments. Only current day’s variation margin is reported within the Statement of Assets and Liabilities. |
Amount ($000) | |
Tax Cost | 12,358,729 |
Gross Unrealized Appreciation | 2,448,413 |
Gross Unrealized Depreciation | (1,136,520) |
Net Unrealized Appreciation (Depreciation) | 1,311,893 |
Six Months Ended April 30, 2023 | Year Ended October 31, 2022 | ||
Shares (000) | Shares (000) | ||
Issued | 28,768 | 61,320 | |
Issued in Lieu of Cash Distributions | 8,593 | 14,416 | |
Redeemed | (44,377) | (67,638) | |
Net Increase (Decrease) in Shares Outstanding | (7,016) | 8,098 |
• | 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. |
• | 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. |
Six Months Ended April 30, 2023 | |||
Diversified Equity Fund | Beginning Account Value 10/31/2022 | Ending Account Value 4/30/2023 | Expenses Paid During Period |
Based on Actual Fund Return | $1,000.00 | $1,073.60 | $1.80 |
Based on Hypothetical 5% Yearly Return | 1,000.00 | 1,023.06 | 1.76 |
Vanguard U.S. Growth Fund Investor Shares | 30.3% |
Vanguard Growth and Income Fund Investor Shares | 20.3 |
Vanguard WindsorTM Fund Investor Shares | 19.8 |
Vanguard Windsor II Fund Investor Shares | 15.1 |
Vanguard ExplorerTM Fund Investor Shares | 9.6 |
Vanguard Mid-Cap Growth Fund | 4.9 |
Shares | Market Value• ($000) | |||||
Investment Companies (100.0%) | ||||||
U.S. Stock Funds (100.0%) | ||||||
Vanguard U.S. Growth Fund Investor Shares | 15,070,326 | 680,727 | ||||
Vanguard Growth and Income Fund Investor Shares | 8,799,489 | 455,726 | ||||
Vanguard Windsor Fund Investor Shares | 21,024,004 | 445,919 | ||||
Vanguard Windsor II Fund Investor Shares | 8,545,752 | 338,668 | ||||
Vanguard Explorer Fund Investor Shares | 2,192,374 | 215,817 | ||||
Vanguard Mid-Cap Growth Fund | 5,484,992 | 110,797 | ||||
Total Investment Companies (Cost $1,693,731) | 2,247,654 | |||||
Temporary Cash Investments (0.0%) | ||||||
Money Market Fund (0.0%) | ||||||
1 | Vanguard Market Liquidity Fund, 4.853% (Cost $—) | 4 | — | |||
Total Investments (100.0%) (Cost $1,693,731) | 2,247,654 | |||||
Other Assets and Liabilities—Net (0.0%) | (283) | |||||
Net Assets (100%) | 2,247,371 |
Cost is in $000. |
• | See Note A in Notes to Financial Statements. |
1 | Affiliated money market fund available only to Vanguard funds and certain trusts and accounts managed by Vanguard. Rate shown is the 7-day yield. |
($000s, except shares, footnotes, and per-share amounts) | Amount |
Assets | |
Investments in Securities, at Value—Affiliated Funds (Cost $1,693,731) | 2,247,654 |
Receivables for Investment Securities Sold | 974 |
Receivables for Accrued Income | 1 |
Receivables for Capital Shares Issued | 308 |
Total Assets | 2,248,937 |
Liabilities | |
Due to Custodian | 220 |
Payables for Capital Shares Redeemed | 1,346 |
Total Liabilities | 1,566 |
Net Assets | 2,247,371 |
At April 30, 2023, net assets consisted of: | |
Paid-in Capital | 1,598,882 |
Total Distributable Earnings (Loss) | 648,489 |
Net Assets | 2,247,371 |
Net Assets | |
Applicable to 57,249,953 outstanding $.001 par value shares of beneficial interest (unlimited authorization) | 2,247,371 |
Net Asset Value Per Share | $39.26 |
Six Months Ended April 30, 2023 | |
($000) | |
Investment Income | |
Income | |
Income Distributions Received from Affiliated Funds | 13,232 |
Net Investment Income—Note B | 13,232 |
Realized Net Gain (Loss) | |
Capital Gain Distributions Received from Affiliated Funds | 111,577 |
Affiliated Funds Sold | (13,107) |
Realized Net Gain (Loss) | 98,470 |
Change in Unrealized Appreciation (Depreciation) from Affiliated Funds | 43,219 |
Net Increase (Decrease) in Net Assets Resulting from Operations | 154,921 |
Six Months Ended April 30, 2023 | Year Ended October 31, 2022 | ||
($000) | ($000) | ||
Increase (Decrease) in Net Assets | |||
Operations | |||
Net Investment Income | 13,232 | 19,185 | |
Realized Net Gain (Loss) | 98,470 | 327,658 | |
Change in Unrealized Appreciation (Depreciation) | 43,219 | (967,703) | |
Net Increase (Decrease) in Net Assets Resulting from Operations | 154,921 | (620,860) | |
Distributions | |||
Total Distributions | (242,790) | (196,729) | |
Capital Share Transactions | |||
Issued | 90,157 | 293,317 | |
Issued in Lieu of Cash Distributions | 224,491 | 182,595 | |
Redeemed | (159,709) | (443,391) | |
Net Increase (Decrease) from Capital Share Transactions | 154,939 | 32,521 | |
Total Increase (Decrease) | 67,070 | (785,068) | |
Net Assets | |||
Beginning of Period | 2,180,301 | 2,965,369 | |
End of Period | 2,247,371 | 2,180,301 |
For a Share Outstanding Throughout Each Period | Six Months Ended April 30, 2023 | Year Ended October 31, | ||||
2022 | 2021 | 2020 | 2019 | 2018 | ||
Net Asset Value, Beginning of Period | $41.38 | $56.40 | $40.98 | $37.95 | $35.88 | $35.57 |
Investment Operations | ||||||
Net Investment Income1 | .236 | .356 | .385 | .452 | .455 | .395 |
Capital Gain Distributions Received1 | 1.993 | 6.162 | 2.294 | 1.866 | 3.087 | 1.686 |
Net Realized and Unrealized Gain (Loss) on Investments | .310 | (17.785) | 15.438 | 3.447 | .575 | .206 |
Total from Investment Operations | 2.539 | (11.267) | 18.117 | 5.765 | 4.117 | 2.287 |
Distributions | ||||||
Dividends from Net Investment Income | (.256) | (.317) | (.346) | (.369) | (.383) | (.358) |
Distributions from Realized Capital Gains | (4.403) | (3.436) | (2.351) | (2.366) | (1.664) | (1.619) |
Total Distributions | (4.659) | (3.753) | (2.697) | (2.735) | (2.047) | (1.977) |
Net Asset Value, End of Period | $39.26 | $41.38 | $56.40 | $40.98 | $37.95 | $35.88 |
Total Return2 | 7.36% | -21.42% | 45.67% | 15.73% | 12.82% | 6.55% |
Ratios/Supplemental Data | ||||||
Net Assets, End of Period (Millions) | $2,247 | $2,180 | $2,965 | $1,919 | $1,789 | $1,709 |
Ratio of Total Expenses to Average Net Assets | — | — | — | — | — | — |
Acquired Fund Fees and Expenses | 0.35% | 0.35% | 0.35% | 0.35% | 0.35% | 0.36% |
Ratio of Net Investment Income to Average Net Assets | 1.06% | 0.77% | 0.76% | 1.19% | 1.27% | 1.07% |
Portfolio Turnover Rate | 5% | 12% | 6% | 14% | 9% | 8% |
The expense ratio, acquired fund fees and expenses, and net investment income ratio for the current period have been annualized. |
1 | Calculated based on average shares outstanding. |
2 | Total returns do not include account service fees that may have applied in the periods shown. Fund prospectuses provide information about any applicable account service fees. |
Amount ($000) | |
Tax Cost | 1,699,086 |
Gross Unrealized Appreciation | 649,356 |
Gross Unrealized Depreciation | (100,788) |
Net Unrealized Appreciation (Depreciation) | 548,568 |
Six Months Ended April 30, 2023 | Year Ended October 31, 2022 | ||
Shares (000) | Shares (000) | ||
Issued | 2,297 | 6,163 | |
Issued in Lieu of Cash Distributions | 6,342 | 3,454 | |
Redeemed | (4,081) | (9,499) | |
Net Increase (Decrease) in Shares Outstanding | 4,558 | 118 |
Current Period Transactions | ||||||||
Oct. 31, 2022 Market Value ($000) | Purchases at Cost ($000) | Proceeds from Securities Sold ($000) | Realized Net Gain (Loss) ($000) | Change in Unrealized App. (Dep.) ($000) | Income ($000) | Capital Gain Distributions Received ($000) | Apr. 30, 2023 Market Value ($000) | |
Vanguard Explorer Fund | 219,915 | 11,910 | 14,078 | (1,890) | (40) | 794 | 9,689 | 215,817 |
Vanguard Growth and Income Fund | 440,104 | 35,413 | 11,319 | (809) | (7,663) | 3,571 | 31,843 | 455,726 |
Vanguard Market Liquidity Fund | — | NA1 | NA1 | — | — | 2 | — | — |
Vanguard Mid-Cap Growth Fund | 107,541 | 275 | 2,451 | (1,865) | 7,297 | 275 | — | 110,797 |
Vanguard U.S. Growth Fund | 638,320 | 8,268 | 23,753 | (9,948) | 67,840 | 2,215 | — | 680,727 |
Vanguard Windsor Fund | 443,595 | 62,449 | 34,285 | 1,105 | (26,945) | 3,695 | 52,563 | 445,919 |
Vanguard Windsor II Fund | 331,267 | 20,236 | 15,865 | 300 | 2,730 | 2,680 | 17,482 | 338,668 |
Total | 2,180,742 | 138,551 | 101,751 | (13,107) | 43,219 | 13,232 | 111,577 | 2,247,654 |
1 | Not applicable—purchases and sales are for temporary cash investment purposes. |
About Your Fund’s Expenses | 1 |
Financial Statements | 4 |
Trustees Approve Advisory Arrangements | 19 |
Liquidity Risk Management | 21 |
• | 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. |
• | 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. |
Six Months Ended April 30, 2023 | |||
Emerging Markets Select Stock Fund | Beginning Account Value 10/31/2022 | Ending Account Value 4/30/2023 | Expenses Paid During Period |
Based on Actual Fund Return | $1,000.00 | $1,200.50 | $4.47 |
Based on Hypothetical 5% Yearly Return | 1,000.00 | 1,020.73 | 4.11 |
China | 29.0% |
Taiwan | 12.3 |
India | 11.6 |
Brazil | 9.8 |
South Korea | 7.5 |
United States | 4.9 |
Hong Kong | 4.6 |
Thailand | 3.5 |
Indonesia | 2.6 |
South Africa | 2.5 |
Mexico | 1.7 |
United Kingdom | 1.4 |
Saudi Arabia | 1.3 |
Canada | 1.3 |
Other | 6.0 |
Futures Contracts | ||||
($000) | ||||
Expiration | Number of Long (Short) Contracts | Notional Amount | Value and Unrealized Appreciation (Depreciation) | |
Long Futures Contracts | ||||
MSCI Emerging Markets Index | June 2023 | 658 | 32,380 | 706 |
($000s, except shares, footnotes, and per-share amounts) | Amount |
Assets | |
Investments in Securities, at Value1 | |
Unaffiliated Issuers (Cost $697,381) | 705,890 |
Affiliated Issuers (Cost $52,087) | 51,800 |
Total Investments in Securities | 757,690 |
Investment in Vanguard | 27 |
Cash | 2,556 |
Cash Collateral Pledged—Futures Contracts | 977 |
Foreign Currency, at Value (Cost $2,089) | 2,116 |
Receivables for Investment Securities Sold | 1,946 |
Receivables for Accrued Income | 4,457 |
Receivables for Capital Shares Issued | 289 |
Variation Margin Receivable—Futures Contracts | 165 |
Total Assets | 770,223 |
Liabilities | |
Payables for Investment Securities Purchased | 2,329 |
Collateral for Securities on Loan | 2,605 |
Payables to Investment Advisor | 982 |
Payables for Capital Shares Redeemed | 334 |
Payables to Vanguard | 94 |
Foreign Capital Gain Taxes Payable | 5 |
Deferred Foreign Capital Gains Taxes | 1,522 |
Total Liabilities | 7,871 |
Net Assets | 762,352 |
1 Includes $1,871,000 of securities on loan. | |
At April 30, 2023, net assets consisted of: | |
Paid-in Capital | 822,975 |
Total Distributable Earnings (Loss) | (60,623) |
Net Assets | 762,352 |
Net Assets | |
Applicable to 37,814,842 outstanding $.001 par value shares of beneficial interest (unlimited authorization) | 762,352 |
Net Asset Value Per Share | $20.16 |
Six Months Ended April 30, 2023 | |
($000) | |
Investment Income | |
Income | |
Dividends—Unaffiliated Issuers1 | 10,684 |
Dividends—Affiliated Issuers | 138 |
Non-Cash Dividends | 1,409 |
Interest—Unaffiliated Issuers | 26 |
Interest—Affiliated Issuers | 893 |
Securities Lending—Net | 16 |
Total Income | 13,166 |
Expenses | |
Investment Advisory Fees—Note B | |
Basic Fee | 1,911 |
Performance Adjustment | (4) |
The Vanguard Group—Note C | |
Management and Administrative | 949 |
Marketing and Distribution | 23 |
Custodian Fees | 99 |
Shareholders’ Reports | 22 |
Trustees’ Fees and Expenses | — |
Other Expenses | 11 |
Total Expenses | 3,011 |
Net Investment Income | 10,155 |
Realized Net Gain (Loss) | |
Capital Gains Distributions Received – Affiliated Issuers | — |
Investment Securities Sold—Unaffiliated Issuers2 | (10,653) |
Investment Securities Sold—Affiliated Issuers | (122) |
Futures Contracts | (156) |
Forward Currency Contracts | 14 |
Foreign Currencies | (117) |
Realized Net Gain (Loss) | (11,034) |
Change in Unrealized Appreciation (Depreciation) | |
Investment Securities—Unaffiliated Issuers3 | 121,760 |
Investment Securities—Affiliated Issuers | 899 |
Futures Contracts | 2,720 |
Foreign Currencies | 37 |
Change in Unrealized Appreciation (Depreciation) | 125,416 |
Net Increase (Decrease) in Net Assets Resulting from Operations | 124,537 |
1 | Dividends are net of foreign withholding taxes of $1,207,000. |
2 | Realized gain (loss) is net of foreign capital gain taxes of $201,000. |
3 | The change in unrealized appreciation (depreciation) is net of the change in deferred foreign capital gains taxes of $18,000. |
Six Months Ended April 30, 2023 | Year Ended October 31, 2022 | ||
($000) | ($000) | ||
Increase (Decrease) in Net Assets | |||
Operations | |||
Net Investment Income | 10,155 | 26,378 | |
Realized Net Gain (Loss) | (11,034) | (59,867) | |
Change in Unrealized Appreciation (Depreciation) | 125,416 | (261,612) | |
Net Increase (Decrease) in Net Assets Resulting from Operations | 124,537 | (295,101) | |
Distributions | |||
Total Distributions | (25,482) | (59,107) | |
Capital Share Transactions | |||
Issued | 90,576 | 179,568 | |
Issued in Lieu of Cash Distributions | 21,665 | 50,609 | |
Redeemed | (78,346) | (220,976) | |
Net Increase (Decrease) from Capital Share Transactions | 33,895 | 9,201 | |
Total Increase (Decrease) | 132,950 | (345,007) | |
Net Assets | |||
Beginning of Period | 629,402 | 974,409 | |
End of Period | 762,352 | 629,402 |
For a Share Outstanding Throughout Each Period | Six Months Ended April 30, 2023 | Year Ended October 31, | ||||
2022 | 2021 | 2020 | 2019 | 2018 | ||
Net Asset Value, Beginning of Period | $17.42 | $27.09 | $22.18 | $21.87 | $19.68 | $22.56 |
Investment Operations | ||||||
Net Investment Income1 | .274 | .715 | .457 | .298 | .4742 | .414 |
Net Realized and Unrealized Gain (Loss) on Investments | 3.181 | (8.724) | 4.729 | .483 | 2.208 | (2.943) |
Total from Investment Operations | 3.455 | (8.009) | 5.186 | .781 | 2.682 | (2.529) |
Distributions | ||||||
Dividends from Net Investment Income | (.715) | (.486) | (.276) | (.471) | (.492) | (.351) |
Distributions from Realized Capital Gains | — | (1.175) | — | — | — | — |
Total Distributions | (.715) | (1.661) | (.276) | (.471) | (.492) | (.351) |
Net Asset Value, End of Period | $20.16 | $17.42 | $27.09 | $22.18 | $21.87 | $19.68 |
Total Return3 | 20.05% | -31.16% | 23.44% | 3.51% | 13.96% | -11.39% |
Ratios/Supplemental Data | ||||||
Net Assets, End of Period (Millions) | $762 | $629 | $974 | $670 | $702 | $564 |
Ratio of Total Expenses to Average Net Assets4 | 0.82% | 0.78% | 0.84% | 0.85% | 0.93% | 0.94% |
Ratio of Net Investment Income to Average Net Assets | 2.74% | 3.26% | 1.65% | 1.43% | 2.25%2 | 1.85% |
Portfolio Turnover Rate | 21% | 41% | 48% | 52% | 46% | 76% |
The expense ratio and net investment income ratio for the current period have been annualized. |
1 | Calculated based on average shares outstanding. |
2 | Net investment income per share and the ratio of net investment income to average net assets include $0.071 and 0.34%, respectively, resulting from a special dividend from Naspers Ltd. in September 2019. |
3 | 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. |
4 | Includes performance-based investment advisory fee increases (decreases) of 0.00%, (0.04%), 0.02%, (0.01%), 0.07%, and 0.05%. |
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. |
B. | The investment advisory firms Wellington Management Company llp, Baillie Gifford Overseas Ltd., Oaktree Fund Advisors, LLC, and Pzena Investment Management, LLC, 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 fees of Wellington Management Company llp, Baillie Gifford Overseas Ltd., Oaktree Fund Advisors, LLC, and Pzena Investment Management, LLC are subject to quarterly adjustments based on performance relative to the FTSE Emerging Index for the preceding three years. |
C. | In accordance with the terms of a Funds' Service Agreement (the “FSA”) between Vanguard and the fund, Vanguard furnishes to the fund corporate management, administrative, marketing, distribution and cash management 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 and are generally settled twice a month. |
D. | Various inputs may be used to determine the value of the fund’s investments and derivatives. 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 ($000) | Level 2 ($000) | Level 3 ($000) | Total ($000) | |
Investments | ||||
Assets | ||||
Common Stocks—North and South America | 126,819 | 2,048 | — | 128,867 |
Common Stocks—Other | 33,334 | 552,659 | — | 585,993 |
Temporary Cash Investments | 42,830 | — | — | 42,830 |
Total | 202,983 | 554,707 | — | 757,690 |
Derivative Financial Instruments | ||||
Assets | ||||
Futures Contracts1 | 706 | — | — | 706 |
1 | Includes cumulative appreciation (depreciation) on futures contracts and centrally cleared swaps, if any, as reported in the Schedule of Investments. Only current day’s variation margin is reported within the Statement of Assets and Liabilities. |
E. | At April 30, 2023, the fair values of derivatives were reflected in the Statement of Assets and Liabilities as follows: |
Statement of Assets and Liabilities | Equity Contracts ($000) | Foreign Exchange Contracts ($000) | Total ($000) |
Unrealized Appreciation—Futures Contracts1 | 706 | — | 706 |
1 | Includes cumulative appreciation (depreciation) on futures contracts and centrally cleared swaps, if any, as reported in the Schedule of Investments. Only current day’s variation margin is reported within the Statement of Assets and Liabilities. |
Realized Net Gain (Loss) on Derivatives | Equity Contracts ($000) | Foreign Exchange Contracts ($000) | Total ($000) |
Futures Contracts | (156) | — | (156) |
Forward Currency Contracts | — | 14 | 14 |
Realized Net Gain (Loss) on Derivatives | (156) | 14 | (142) |
Change in Unrealized Appreciation (Depreciation) on Derivatives | |||
Futures Contracts | 2,720 | — | 2,720 |
Change in Unrealized Appreciation (Depreciation) on Derivatives | 2,720 | — | 2,720 |
F. | As of April 30, 2023, 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 | 762,745 |
Gross Unrealized Appreciation | 109,317 |
Gross Unrealized Depreciation | (113,666) |
Net Unrealized Appreciation (Depreciation) | (4,349) |
G. | During the six months ended April 30, 2023, the fund purchased $146,481,000 of investment securities and sold $146,405,000 of investment securities, other than temporary cash investments. |
H. | Capital shares issued and redeemed were: |
Six Months Ended April 30, 2023 | Year Ended October 31, 2022 | ||
Shares (000) | Shares (000) | ||
Issued | 4,490 | 8,139 | |
Issued in Lieu of Cash Distributions | 1,130 | 2,150 | |
Redeemed | (3,928) | (10,131) | |
Net Increase (Decrease) in Shares Outstanding | 1,692 | 158 |
I. | Transactions during the period in investments where the issuer is another member of The Vanguard Group were as follows: |
Current Period Transactions | ||||||||
Oct. 31, 2022 Market Value ($000) | Purchases at Cost ($000) | Proceeds from Securities Sold ($000) | Realized Net Gain (Loss) ($000) | Change in Unrealized App. (Dep.) ($000) | Income ($000) | Capital Gain Distributions Received ($000) | Apr. 30, 2023 Market Value ($000) | |
Vanguard FTSE Emerging Markets ETF | 5,342 | 8,942 | 6,089 | (124) | 899 | 138 | — | 8,970 |
Vanguard Market Liquidity Fund | 27,141 | NA1 | NA1 | 2 | — | 893 | — | 42,830 |
Total | 32,483 | 8,942 | 6,089 | (122) | 899 | 1,031 | — | 51,800 |
1 | Not applicable—purchases and sales are for temporary cash investment purposes. |
J. | Significant market disruptions, such as those caused by pandemics (e.g., COVID-19 pandemic), natural or environmental disasters, war (e.g., Russia’s invasion of Ukraine), acts of terrorism, or other events, can adversely affect local and global markets and normal market operations. Any such disruptions could have an adverse impact on the value of the fund’s investments and fund performance. |
K. | Management has determined that no events or transactions occurred subsequent to April 30, 2023, that would require recognition or disclosure in these financial statements. |
About Your Fund’s Expenses | 1 |
Consolidated Financial Statements | 4 |
Trustees Approve Advisory Arrangement | 17 |
Liquidity Risk Management | 19 |
• | 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. |
• | 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. |
Six Months Ended April 30, 2023 | |||
Commodity Strategy Fund | Beginning Account Value 10/31/2022 | Ending Account Value 4/30/2023 | Expenses Paid During Period |
Based on Actual Fund Return | $1,000.00 | $974.90 | $1.03 |
Based on Hypothetical 5% Yearly Return | 1,000.00 | 1,023.75 | 1.05 |
U.S. Government Securities | 100.0% |
Coupon | Maturity Date | Face Amount ($000) | Market Value• ($000) | |||
U.S. Government and Agency Obligations (77.1%) | ||||||
U.S. Government Securities (77.1%) | ||||||
United States Treasury Inflation Indexed Bonds | 0.375% | 7/15/23 | 86,289 | 86,046 | ||
United States Treasury Inflation Indexed Bonds | 0.625% | 1/15/24 | 82,153 | 80,870 | ||
United States Treasury Inflation Indexed Bonds | 0.500% | 4/15/24 | 46,131 | 45,057 | ||
United States Treasury Inflation Indexed Bonds | 0.125% | 7/15/24 | 74,591 | 72,703 | ||
United States Treasury Inflation Indexed Bonds | 0.125% | 10/15/24 | 66,536 | 64,665 | ||
United States Treasury Inflation Indexed Bonds | 0.250% | 1/15/25 | 68,212 | 66,166 | ||
United States Treasury Inflation Indexed Bonds | 2.375% | 1/15/25 | 46,494 | 46,733 | ||
United States Treasury Inflation Indexed Bonds | 0.125% | 4/15/25 | 54,504 | 52,588 | ||
United States Treasury Inflation Indexed Bonds | 0.375% | 7/15/25 | 74,799 | 72,777 | ||
United States Treasury Inflation Indexed Bonds | 0.125% | 10/15/25 | 66,312 | 64,043 | ||
United States Treasury Inflation Indexed Bonds | 0.625% | 1/15/26 | 62,976 | 61,362 | ||
United States Treasury Inflation Indexed Bonds | 2.000% | 1/15/26 | 30,006 | 30,297 | ||
United States Treasury Inflation Indexed Bonds | 0.125% | 4/15/26 | 51,238 | 49,060 | ||
United States Treasury Inflation Indexed Bonds | 0.125% | 7/15/26 | 62,769 | 60,327 | ||
United States Treasury Inflation Indexed Bonds | 0.125% | 10/15/26 | 70,880 | 67,867 | ||
United States Treasury Inflation Indexed Bonds | 0.375% | 1/15/27 | 58,452 | 56,214 | ||
United States Treasury Inflation Indexed Bonds | 2.375% | 1/15/27 | 29,012 | 29,969 | ||
United States Treasury Inflation Indexed Bonds | 0.125% | 4/15/27 | 72,406 | 68,786 | ||
United States Treasury Inflation Indexed Bonds | 0.375% | 7/15/27 | 64,444 | 62,118 | ||
United States Treasury Inflation Indexed Bonds | 1.625% | 10/15/27 | 72,609 | 73,755 | ||
United States Treasury Inflation Indexed Bonds | 0.500% | 1/15/28 | 65,811 | 63,405 | ||
United States Treasury Inflation Indexed Bonds | 1.750% | 1/15/28 | 27,275 | 27,812 | ||
United States Treasury Inflation Indexed Bonds | 1.250% | 4/15/28 | 36,308 | 36,274 | ||
United States Treasury Inflation Indexed Bonds | 3.625% | 4/15/28 | 27,900 | 30,982 | ||
Total U.S. Government and Agency Obligations (Cost $1,432,539) | 1,369,876 | |||||
Shares | ||||||
Temporary Cash Investments (28.4%) | ||||||
Money Market Fund (9.0%) | ||||||
1 | Vanguard Market Liquidity Fund | 4.853% | 1,593,807 | 159,365 |
Coupon | Maturity Date | Face Amount ($000) | Market Value• ($000) | |||
U.S. Government and Agency Obligations (19.4%) | ||||||
2,3 | United States Treasury Bill | 4.600% | 5/4/23 | 57,000 | 56,980 | |
2,3 | United States Treasury Bill | 4.811% | 5/18/23 | 40,500 | 40,416 | |
3 | United States Treasury Bill | 4.777% | 5/23/23 | 21,300 | 21,244 | |
3 | United States Treasury Bill | 4.656% | 6/20/23 | 42,300 | 42,015 | |
3 | United States Treasury Bill | 5.000% | 6/27/23 | 15,500 | 15,380 | |
3 | United States Treasury Bill | 4.787% | 6/29/23 | 10,000 | 9,918 | |
2,3 | United States Treasury Bill | 4.770% | 7/18/23 | 31,300 | 30,962 | |
3 | United States Treasury Bill | 4.990% | 7/20/23 | 47,000 | 46,482 | |
2,3 | United States Treasury Bill | 5.013% | 7/25/23 | 42,600 | 42,101 | |
3 | United States Treasury Bill | 5.036% | 8/31/23 | 12,300 | 12,094 | |
2,3 | United States Treasury Bill | 4.897% | 9/14/23 | 26,800 | 26,308 | |
343,900 | ||||||
Total Temporary Cash Investments (Cost $503,308) | 503,265 | |||||
Total Investments (105.5%) (Cost $1,935,847) | 1,873,141 | |||||
Other Assets and Liabilities—Net (-5.5%) | (97,217) | |||||
Net Assets (100%) | 1,775,924 | |||||
Cost is in $000. |
• | See Note A in Notes to Consolidated Financial Statements. |
1 | Affiliated money market fund available only to Vanguard funds and certain trusts and accounts managed by Vanguard. Rate shown is the 7-day yield. |
2 | Securities with a value of $44,174,000 have been segregated as collateral for open over-the-counter swap contracts. |
3 | Security is owned by the Vanguard CSF Portfolio, which is a wholly owned subsidiary of the Commodity Strategy Fund. |
Over-the-Counter Total Return Swaps | ||||||
Reference Entity | Termination Date | Counterparty | Notional Amount ($000) | Fixed Interest Rate Received (Paid)1 (%) | Value and Unrealized Appreciation ($000) | Value and Unrealized (Depreciation) ($000) |
Bloomberg Commodity Index2 | 5/11/23 | MLI | 105,000 | (0.060) | — | (2,774) |
Bloomberg Commodity Index2 | 5/23/23 | BARC | 15,000 | (0.100) | — | (44) |
Bloomberg Commodity Index 2 Month Forward2 | 5/23/23 | BARC | 180,000 | (0.110) | — | (640) |
Bloomberg Commodity Index 3 Month Forward2 | 5/23/23 | GSI | 30,000 | (0.120) | — | (113) |
BofA Merrill Lynch Commodity MLBXAKSV Excess Return Strategy2,3 | 5/11/23 | MLI | 60,000 | (0.170) | — | (1,907) |
BofA Merrill Lynch Commodity MLBXSTGV Excess Return Strategy2,3 | 5/11/23 | MLI | 310,000 | (0.110) | — | (7,644) |
BofA Merrill Lynch Commodity MLCILP3E Excess Return Strategy2,3 | 5/11/23 | MLI | 295,000 | (0.140) | — | (6,747) |
Over-the-Counter Total Return Swaps (continued) | ||||||
Reference Entity | Termination Date | Counterparty | Notional Amount ($000) | Fixed Interest Rate Received (Paid)1 (%) | Value and Unrealized Appreciation ($000) | Value and Unrealized (Depreciation) ($000) |
CIBC Commodity CIBZC51EC Excess Return Strategy2,3 | 5/11/23 | CIBC | 210,000 | (0.160) | — | (4,224) |
Goldman Sachs Commodity i-Select Strategy 11292,3 | 5/23/23 | GSI | 400,000 | (0.120) | — | (1,366) |
Modified Strategy DBS18 on the Bloomberg Commodity Index2,3 | 5/23/23 | GSI | 40,000 | (0.120) | — | (114) |
Societe Generale Commodity SGIXCSB1 Excess Return Strategy2,3 | 5/11/23 | SOCG | 160,000 | (0.170) | — | (4,035) |
— | (29,608) |
1 | Fixed interest payment received/paid monthly. |
2 | Security is owned by the subsidiary. |
3 | Information on the components of the reference entity is available on www.vanguard.com. |
BARC—Barclays Bank plc. | |
CIBC—Canadian Imperial Bank of Commerce. | |
GSI—Goldman Sachs International. | |
MLI—Merrill Lynch International. | |
SOCG—Société Generale. |
($000s, except shares, footnotes, and per-share amounts) | Amount |
Assets | |
Investments in Securities, at Value | |
Unaffiliated Issuers (Cost $1,776,494) | 1,713,776 |
Affiliated Issuers (Cost $159,353) | 159,365 |
Total Investments in Securities | 1,873,141 |
Investment in Vanguard | 65 |
Cash | 102 |
Receivables for Accrued Income | 2,274 |
Receivables for Capital Shares Issued | 1,042 |
Total Assets | 1,876,624 |
Liabilities | |
Payables for Investment Securities Purchased | 67,821 |
Payables for Capital Shares Redeemed | 3,105 |
Payables to Vanguard | 166 |
Unrealized Depreciation—Over-the-Counter Swap Contracts | 29,608 |
Total Liabilities | 100,700 |
Net Assets | 1,775,924 |
At April 30, 2023, net assets consisted of: | |
Paid-in Capital | 1,959,577 |
Total Distributable Earnings (Loss) | (183,653) |
Net Assets | 1,775,924 |
Net Assets | |
Applicable to 67,899,362 outstanding $.001 par value shares of beneficial interest (unlimited authorization) | 1,775,924 |
Net Asset Value Per Share | $26.16 |
Six Months Ended April 30, 2023 | |
($000) | |
Investment Income | |
Income | |
Interest1 | 24,870 |
Total Income | 24,870 |
Expenses | |
The Vanguard Group—Note B | |
Investment Advisory Services | 68 |
Management and Administrative | 1,768 |
Marketing and Distribution | 54 |
Custodian Fees | 40 |
Shareholders’ Reports | 34 |
Trustees’ Fees and Expenses—Note B | 7 |
Other Expenses | 8 |
Total Expenses | 1,979 |
Expenses Paid Indirectly | (18) |
Net Expenses | 1,961 |
Net Investment Income | 22,909 |
Realized Net Gain (Loss) | |
Investment Securities Sold1 | (18,874) |
Swap Contracts | (88,784) |
Realized Net Gain (Loss) | (107,658) |
Change in Unrealized Appreciation (Depreciation) | |
Investment Securities1 | 43,129 |
Swap Contracts | (7,060) |
Change in Unrealized Appreciation (Depreciation) | 36,069 |
Net Increase (Decrease) in Net Assets Resulting from Operations | (48,680) |
1 | Interest income, realized net gain (loss), capital gain distributions received, and change in unrealized appreciation (depreciation) from an affiliated company of the fund were $3,135,000, less than $1,000, $1,000, and less than $1,000, respectively. Purchases and sales are for temporary cash investment purposes. |
Six Months Ended April 30, 2023 | Year Ended October 31, 2022 | ||
($000) | ($000) | ||
Increase (Decrease) in Net Assets | |||
Operations | |||
Net Investment Income | 22,909 | 94,414 | |
Realized Net Gain (Loss) | (107,658) | 131,973 | |
Change in Unrealized Appreciation (Depreciation) | 36,069 | (123,543) | |
Net Increase (Decrease) in Net Assets Resulting from Operations | (48,680) | 102,844 | |
Distributions | |||
Total Distributions | (244,184) | (390,043) | |
Capital Share Transactions | |||
Issued | 537,950 | 1,800,077 | |
Issued in Lieu of Cash Distributions | 186,096 | 271,967 | |
Redeemed | (649,513) | (1,476,116) | |
Net Increase (Decrease) from Capital Share Transactions | 74,533 | 595,928 | |
Total Increase (Decrease) | (218,331) | 308,729 | |
Net Assets | |||
Beginning of Period | 1,994,255 | 1,685,526 | |
End of Period | 1,775,924 | 1,994,255 |
For a Share Outstanding Throughout Each Period | Six Months Ended April 30, 2023 | June 25 20191 to October 31, 2019 | Year Ended October 31, | ||
2022 | 2021 | 2020 | |||
Net Asset Value, Beginning of Period | $30.69 | $36.85 | $24.32 | $24.83 | $25.00 |
Investment Operations | |||||
Net Investment Income2 | .331 | 1.474 | .890 | .265 | .143 |
Net Realized and Unrealized Gain (Loss) on Investments | (.977) | .751 | 11.774 | (.620) | (.313) |
Total from Investment Operations | (.646) | 2.225 | 12.664 | (.355) | (.170) |
Distributions | |||||
Dividends from Net Investment Income | (3.884) | (8.385) | (.134) | (.155) | — |
Distributions from Realized Capital Gains | — | — | — | — | — |
Total Distributions | (3.884) | (8.385) | (.134) | (.155) | — |
Net Asset Value, End of Period | $26.16 | $30.69 | $36.85 | $24.32 | $24.83 |
Total Return3 | -2.51% | 9.80% | 52.30% | -1.45% | -0.68% |
Ratios/Supplemental Data | |||||
Net Assets, End of Period (Millions) | $1,776 | $1,994 | $1,686 | $373 | $207 |
Ratio of Total Expenses to Average Net Assets | 0.21%4 | 0.21%4 | 0.20% | 0.20% | 0.20%5 |
Ratio of Net Investment Income to Average Net Assets | 2.40% | 4.47% | 2.79% | 1.15% | 1.65%5 |
Portfolio Turnover Rate | 18% | 47% | 15% | 38% | 7% |
The expense ratio and net investment income ratio for the current period have been annualized. |
1 | Inception. |
2 | Calculated based on average shares outstanding. |
3 | 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. |
4 | The ratio of expenses to average net assets for the period net of reduction from custody fee offset arrangements was 0.21%. |
5 | Annualized. |
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. |
Assets Reflected in Consolidated Statement of Assets and Liabilities1 ($000) | Liabilities Reflected in Consolidated Statement of Assets and Liabilities1 ($000) | Net Amount Receivable (Payable) ($000) | Amounts Not Offset in the Consolidated Statement of Assets and Liabilities | Net Exposure3 (Not Less Than $0) ($000) | ||
Collateral Pledged2 ($000) | Collateral Received2 ($000) | |||||
Derivatives Subject to Offsetting Arrangements, by Counterparty | ||||||
Barclays Bank plc | — | (684) | (684) | 2,307 | — | — |
Canadian Imperial Bank of Commerce | — | (4,224) | (4,224) | 5,672 | — | — |
Goldman Sachs International | — | (1,593) | (1,593) | 5,459 | — | — |
Merrill Lynch International | — | (19,072) | (19,072) | 25,521 | — | — |
Société Generale | — | (4,035) | (4,035) | 5,215 | — | — |
Total | — | (29,608) | (29,608) | 44,174 | — | — |
B. | 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 and are generally settled twice a month. |
C. | The fund’s custodian bank has agreed to reduce its fees when the fund maintains cash on deposit in the non-interest-bearing custody account. For the six months ended April 30, 2023, custodian fee offset arrangements reduced the fund’s expenses by $18,000 (an annual rate of less than 0.01% of average net assets). |
D. | Various inputs may be used to determine the value of the fund’s investments and derivatives. 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 ($000) | Level 2 ($000) | Level 3 ($000) | Total ($000) | |
Investments | ||||
Assets | ||||
U.S. Government and Agency Obligations | — | 1,369,876 | — | 1,369,876 |
Temporary Cash Investments | 159,365 | 343,900 | — | 503,265 |
Total | 159,365 | 1,713,776 | — | 1,873,141 |
Derivative Financial Instruments | ||||
Liabilities | ||||
Swap Contracts | — | 29,608 | — | 29,608 |
E. | As of April 30, 2023, 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 | 1,936,340 |
Gross Unrealized Appreciation | 1,440 |
Gross Unrealized Depreciation | (64,639) |
Net Unrealized Appreciation (Depreciation) | (63,199) |
F. | During the six months ended April 30, 2023, the fund purchased $262,858,000 of investment securities and sold $443,326,000 of investment securities, other than temporary cash investments. |
G. | Capital shares issued and redeemed were: |
Six Months Ended April 30, 2023 | Year Ended October 31, 2022 | ||
Shares (000) | Shares (000) | ||
Issued | 19,311 | 54,611 | |
Issued in Lieu of Cash Distributions | 6,887 | 10,325 | |
Redeemed | (23,279) | (45,700) | |
Net Increase (Decrease) in Shares Outstanding | 2,919 | 19,236 |
H. | Significant market disruptions, such as those caused by pandemics (e.g., COVID-19 pandemic), natural or environmental disasters, war (e.g., Russia’s invasion of Ukraine), acts of terrorism, or other events, can adversely affect local and global markets and normal market operations. Any such disruptions could have an adverse impact on the value of the fund’s investments and fund performance. |
I. | Management has determined that no events or transactions occurred subsequent to April 30, 2023, that would require recognition or disclosure in these financial statements. |
About Your Fund’s Expenses | 1 |
Financial Statements | 4 |
Trustees Approve Advisory Arrangements | 15 |
Liquidity Risk Management | 16 |
• | 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. |
• | 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. |
Six Months Ended April 30, 2023 | |||
Beginning Account Value 11/16/2022 | Ending Account Value 4/30/2023 | Expenses Paid During Period | |
Based on Actual Fund Return | |||
Global Environmental Opportunities Stock Fund | |||
Investor Shares | $1,000.00 | $1,037.00 | $3.64 |
Admiral™ Shares | 1,000.00 | 1,037.60 | 2.95 |
Based on Hypothetical 5% Yearly Return | |||
Global Environmental Opportunities Stock Fund | |||
Investor Shares | $1,000.00 | $1,019.03 | $3.61 |
Admiral Shares | 1,000.00 | 1,019.71 | 2.92 |
United States | 41.7% |
China | 19.8 |
Denmark | 11.8 |
Spain | 5.7 |
France | 5.2 |
United Kingdom | 4.9 |
Taiwan | 4.5 |
Germany | 4.2 |
India | 2.1 |
Other | 0.1 |
Shares | Market Value• ($000) | ||
Common Stocks (97.0%) | |||
China (19.2%) | |||
Xinyi Solar Holdings Ltd. | 1,990,000 | 2,140 | |
Wuxi Lead Intelligent Equipment Co. Ltd. Class A | 356,649 | 1,974 | |
Contemporary Amperex Technology Co. Ltd. Class A | 51,633 | 1,728 | |
Zhejiang Sanhua Intelligent Controls Co. Ltd. Class A | 439,952 | 1,486 | |
Sungrow Power Supply Co. Ltd. Class A | 56,640 | 925 | |
8,253 | |||
Denmark (11.4%) | |||
Novozymes A/S Class B | 33,989 | 1,770 | |
1 | Orsted A/S | 19,705 | 1,768 |
* | Vestas Wind Systems A/S | 49,550 | 1,371 |
4,909 | |||
France (5.0%) | |||
Schneider Electric SE | 12,407 | 2,164 | |
Germany (4.1%) | |||
Infineon Technologies AG | 48,691 | 1,773 | |
India (2.0%) | |||
Power Grid Corp. of India Ltd. | 296,794 | 863 | |
Italy (0.1%) | |||
* | Industrie De Nora SpA | 1,936 | 39 |
Spain (5.6%) | |||
Iberdrola SA (XMAD) | 185,393 | 2,402 | |
Taiwan (4.4%) | |||
Voltronic Power Technology Corp. | 33,000 | 1,897 | |
United Kingdom (4.8%) | |||
Croda International plc | 23,461 | 2,061 | |
United States (40.4%) | |||
Trane Technologies plc | 13,220 | 2,456 | |
Waste Management Inc. | 14,382 | 2,388 | |
TE Connectivity Ltd. | 17,574 | 2,151 | |
* | Autodesk Inc. | 10,443 | 2,034 |
* | ANSYS Inc. | 6,369 | 1,999 |
Rockwell Automation Inc. | 6,960 | 1,973 | |
NextEra Energy Inc. | 25,349 | 1,943 | |
* | Aptiv plc | 18,212 | 1,873 |
Analog Devices Inc. | 3,273 | 589 | |
17,406 | |||
Total Common Stocks (Cost $40,752) | 41,767 |
Shares | Market Value• ($000) | ||
Temporary Cash Investments (2.4%) | |||
Money Market Fund (2.4%) | |||
2 | Vanguard Market Liquidity Fund 4.853% (Cost $1,042) | 10,426 | 1,043 |
Total Investments (99.4%) (Cost $41,794) | 42,810 | ||
Other Assets and Liabilities—Net (0.6%) | 248 | ||
Net Assets (100%) | 43,058 | ||
Cost is in $000. |
• | See Note A in Notes to Financial Statements. |
* | Non-income-producing security. |
1 | Security exempt from registration under Rule 144A of the Securities Act of 1933. Such securities may be sold in transactions exempt from registration, normally to qualified institutional buyers. At April 30, 2023, the aggregate value was $1,768,000, representing 4.1% 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. |
($000s, except shares, footnotes, and per-share amounts) | Amount |
Assets | |
Investments in Securities, at Value | |
Unaffiliated Issuers (Cost $40,752) | 41,767 |
Affiliated Issuers (Cost $1,042) | 1,043 |
Total Investments in Securities | 42,810 |
Investment in Vanguard | 1 |
Foreign Currency, at Value (Cost $69) | 69 |
Receivables for Investment Securities Sold | 112 |
Receivables for Accrued Income | 32 |
Receivables for Capital Shares Issued | 112 |
Total Assets | 43,136 |
Liabilities | |
Payables for Investment Securities Purchased | 28 |
Payables to Investment Advisor | 33 |
Payables for Capital Shares Redeemed | 6 |
Payables to Vanguard | 6 |
Deferred Foreign Capital Gains Taxes | 5 |
Total Liabilities | 78 |
Net Assets | 43,058 |
At April 30, 2023, net assets consisted of: | |
Paid-in Capital | 41,780 |
Total Distributable Earnings (Loss) | 1,278 |
Net Assets | 43,058 |
Investor Shares—Net Assets | |
Applicable to 810,654 outstanding $.001 par value shares of beneficial interest (unlimited authorization) | 16,812 |
Net Asset Value Per Share—Investor Shares | $20.74 |
Admiral Shares—Net Assets | |
Applicable to 1,011,797 outstanding $.001 par value shares of beneficial interest (unlimited authorization) | 26,246 |
Net Asset Value Per Share—Admiral Shares | $25.94 |
November 2, 20221 to April 30, 2023 | |
($000) | |
Investment Income | |
Income | |
Dividends2 | 177 |
Interest3 | 30 |
Total Income | 207 |
Expenses | |
Investment Advisory Fees—Note B | 51 |
The Vanguard Group—Note C | |
Management and Administrative—Investor Shares | 9 |
Management and Administrative—Admiral Shares | 12 |
Custodian Fees | 17 |
Shareholders’ Reports—Investor Shares | 6 |
Shareholders’ Reports—Admiral Shares | 1 |
Trustees’ Fees and Expenses | — |
Other Expenses | 4 |
Total Expenses | 100 |
Expenses Paid Indirectly | (5) |
Net Expenses | 95 |
Net Investment Income | 112 |
Realized Net Gain (Loss) | |
Investment Securities Sold3 | 156 |
Foreign Currencies | (2) |
Realized Net Gain (Loss) | 154 |
Change in Unrealized Appreciation (Depreciation) | |
Investment Securities3,4 | 1,011 |
Foreign Currencies | 1 |
Change in Unrealized Appreciation (Depreciation) | 1,012 |
Net Increase (Decrease) in Net Assets Resulting from Operations | 1,278 |
1 | Commencement of subscription period for the fund. |
2 | Dividends are net of foreign withholding taxes of $12,000. |
3 | Interest income, realized net gain (loss), capital gain distributions received, and change in unrealized appreciation (depreciation) from an affiliated company of the fund were $30,000, ($1,000), less than $1,000, and $1,000, respectively. Purchases and sales are for temporary cash investment purposes. |
4 | The change in unrealized appreciation (depreciation) is net of the change in deferred foreign capital gains taxes of $5,000. |
November 2, 20221 to April 30, 2023 | |
($000) | |
Increase (Decrease) in Net Assets | |
Operations | |
Net Investment Income | 112 |
Realized Net Gain (Loss) | 154 |
Change in Unrealized Appreciation (Depreciation) | 1,012 |
Net Increase (Decrease) in Net Assets Resulting from Operations | 1,278 |
Distributions | |
Investor Shares | — |
Admiral Shares | — |
Total Distributions | — |
Capital Share Transactions | |
Investor Shares | 16,289 |
Admiral Shares | 25,491 |
Net Increase (Decrease) from Capital Share Transactions | 41,780 |
Total Increase (Decrease) | 43,058 |
Net Assets | |
Beginning of Period | — |
End of Period | 43,058 |
1 | Commencement of subscription period for the fund. |
Investor Shares | |
For a Share Outstanding Throughout Each Period | November 2, 20221 to April 30, 2023 |
Net Asset Value, Beginning of Period | $20.00 |
Investment Operations | |
Net Investment Income2 | .063 |
Net Realized and Unrealized Gain (Loss) on Investments | .677 |
Total from Investment Operations | .740 |
Distributions | |
Dividends from Net Investment Income | — |
Distributions from Realized Capital Gains | — |
Total Distributions | — |
Net Asset Value, End of Period | $20.74 |
Total Return3 | 3.70% |
Ratios/Supplemental Data | |
Net Assets, End of Period (Millions) | $17 |
Ratio of Total Expenses to Average Net Assets | 0.79%4 |
Ratio of Net Investment Income to Average Net Assets | 0.68% |
Portfolio Turnover Rate5 | 12% |
The expense ratio and net investment income ratio for the current period have been annualized. |
1 | The subscription period for the fund was November 2, 2022, to November 15, 2022, during which time all assets were held in cash. Performance measurement began November 16, 2022, the first business day after the subscription period, at a net asset value of $20.00. |
2 | Calculated based on average shares outstanding. |
3 | 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. |
4 | The ratio of expenses to average net assets for the period net of reduction from custody fee offset arrangements was 0.75%. |
5 | Excludes the value of portfolio securities received or delivered as a result of in-kind purchases or redemptions of the fund’s capital shares. |
Admiral Shares | |
For a Share Outstanding Throughout Each Period | November 2, 20221 to April 30, 2023 |
Net Asset Value, Beginning of Period | $25.00 |
Investment Operations | |
Net Investment Income2 | .098 |
Net Realized and Unrealized Gain (Loss) on Investments | .842 |
Total from Investment Operations | .940 |
Distributions | |
Dividends from Net Investment Income | — |
Distributions from Realized Capital Gains | — |
Total Distributions | — |
Net Asset Value, End of Period | $25.94 |
Total Return3 | 3.76% |
Ratios/Supplemental Data | |
Net Assets, End of Period (Millions) | $26 |
Ratio of Total Expenses to Average Net Assets | 0.64%4 |
Ratio of Net Investment Income to Average Net Assets | 0.85% |
Portfolio Turnover Rate5 | 12% |
The expense ratio and net investment income ratio for the current period have been annualized. |
1 | The subscription period for the fund was November 2, 2022, to November 15, 2022, during which time all assets were held in cash. Performance measurement began November 16, 2022, the first business day after the subscription period, at a net asset value of $25.00. |
2 | Calculated based on average shares outstanding. |
3 | 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. |
4 | The ratio of expenses to average net assets for the period net of reduction from custody fee offset arrangements was 0.60%. |
5 | Excludes the value of portfolio securities received or delivered as a result of in-kind purchases or redemptions of the fund’s capital shares. |
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. |
B. | Ninety One North America. Inc. provides investment advisory services to the fund for a fee calculated at an annual percentage rate of average net assets. For the six months ended April 30, 2023, the investment advisory fee represented an effective annual basic rate of 0.36% of the fund’s average net assets. |
C. | In accordance with the terms of a Funds' Service Agreement (the “FSA”) between Vanguard and the fund, Vanguard furnishes to the fund corporate management, administrative, marketing, distribution and cash management 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 and are generally settled twice a month. |
D. | The fund’s custodian bank has agreed to reduce its fees when the fund maintains cash on deposit in the non-interest-bearing custody account. For the six months ended April 30, 2023, custodian fee offset arrangements reduced the fund’s expenses by $5,000 (an annual rate of less than 0.01% of average net assets). |
E. | 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 ($000) | Level 2 ($000) | Level 3 ($000) | Total ($000) | |
Investments | ||||
Assets | ||||
Common Stocks—North and South America | 17,406 | — | — | 17,406 |
Common Stocks—Other | — | 24,361 | — | 24,361 |
Temporary Cash Investments | 1,043 | — | — | 1,043 |
Total | 18,449 | 24,361 | — | 42,810 |
F. | As of April 30, 2023, gross unrealized appreciation and depreciation for investments based on cost for U.S. federal income tax purposes were as follows: |
Amount ($000) | |
Tax Cost | 41,799 |
Gross Unrealized Appreciation | 1,966 |
Gross Unrealized Depreciation | (955) |
Net Unrealized Appreciation (Depreciation) | 1,011 |
G. | During the six months ended April 30, 2023, the fund purchased $44,289,000 of investment securities and sold $3,717,000 of investment securities, other than temporary cash investments. |
H. | Capital share transactions for each class of shares were: |
November 2, 20221 to April 30, 2023 | ||
Amount ($000) | Shares (000) | |
Investor Shares | ||
Issued | 18,510 | 919 |
Issued in Lieu of Cash Distributions | — | — |
Redeemed | (2,221) | (108) |
Net Increase (Decrease)—Investor Shares | 16,289 | 811 |
Admiral Shares | ||
Issued | 26,440 | 1,049 |
Issued in Lieu of Cash Distributions | — | — |
Redeemed | (949) | (37) |
Net Increase (Decrease)—Admiral Shares | 25,491 | 1,012 |
1 | Commencement of subscription period for the fund. |
I. | Significant market disruptions, such as those caused by pandemics (e.g., COVID-19 pandemic), natural or environmental disasters, war (e.g., Russia’s invasion of Ukraine), acts of terrorism, or other events, can adversely affect local and global markets and normal market operations. Any such disruptions could have an adverse impact on the value of the fund’s investments and fund performance. |
J. | Management has determined that no events or transactions occurred subsequent to April 30, 2023, that would require recognition or disclosure in these financial statements. |
Item 2: Code of Ethics.
Not applicable.
Item 3: Audit Committee Financial Expert.
Not applicable.
Item 4: Principal Accountant Fees and Services.
Not applicable.
Item 5: Audit Committee of Listed Registrants.
Not applicable.
Item 6: Investments.
Not applicable. The complete schedule of investments is included as part of the report to shareholders filed under Item 1 of this Form.
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 the 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)(1) | Not applicable. |
(a)(2) | Certifications filed herewith. |
(b) | Certifications filed herewith. |
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 TRUSTEES’ EQUITY FUND | ||
BY: | /s/ MORTIMER J. BUCKLEY* | |
MORTIMER J. BUCKLEY | ||
CHIEF EXECUTIVE OFFICER |
Date: June 19, 2023
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 TRUSTEES’ EQUITY FUND | ||
BY: | /s/ MORTIMER J. BUCKLEY* | |
MORTIMER J. BUCKLEY | ||
CHIEF EXECUTIVE OFFICER |
Date: June 19, 2023
VANGUARD TRUSTEES’ EQUITY FUND | ||
BY: | /s/ CHRISTINE BUCHANAN* | |
CHRISTINE BUCHANAN | ||
CHIEF FINANCIAL OFFICER |
Date: June 19, 2023
* By: | /s/ Anne E. Robinson |
Anne E. Robinson, pursuant to a Power of Attorney filed on March 29, 2023 (see File Number 2-11444), Incorporated by Reference.
Exhibit 99.CERT
CERTIFICATIONS
I, Mortimer J. Buckley, certify that:
1. I have reviewed this report on Form N-CSR of Vanguard Trustees’ Equity Fund;
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 financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report;
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 period covered by this report 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: June 19, 2023
/s/ Mortimer J. Buckley | |
Mortimer J. Buckley | |
Chief Executive Officer |
CERTIFICATIONS
I, Christine Buchanan, certify that:
1. I have reviewed this report on Form N-CSR of Vanguard Trustees’ Equity Fund;
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 financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report;
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 period covered by this report 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: June 19, 2023
/s/ Christine Buchanan | |
Christine Buchanan | |
Chief Financial Officer |
Exhibit 99.906CERT
Certification Pursuant to 18 U.S.C. Section 1350,
As Adopted Pursuant to
Section 906 of the Sarbanes-Oxley Act of 2002
Name of Issuer: Vanguard Trustees’ Equity Fund
In connection with the Report on Form N-CSR of the above-named issuer that is accompanied by this certification, the undersigned hereby certifies, to his knowledge, that:
1. | The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and |
2. | The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the issuer. |
Date: June 19, 2023
/s/ Mortimer J. Buckley | |
Mortimer J. Buckley | |
Chief Executive Officer |
Certification Pursuant to 18 U.S.C. Section 1350,
As Adopted Pursuant to
Section 906 of the Sarbanes-Oxley Act of 2002
Name of Issuer: Vanguard Trustees’ Equity Fund
In connection with the Report on Form N-CSR of the above-named issuer that is accompanied by this certification, the undersigned hereby certifies, to her knowledge, that:
1. | The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and |
2. | The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the issuer. |
Date: June 19, 2023
/s/ Christine Buchanan | |
Christine Buchanan | |
Chief Financial Officer |
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