-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: keymaster@town.hall.org Originator-Key-Asymmetric: MFkwCgYEVQgBAQICAgADSwAwSAJBALeWW4xDV4i7+b6+UyPn5RtObb1cJ7VkACDq pKb9/DClgTKIm08lCfoilvi9Wl4SODbR1+1waHhiGmeZO8OdgLUCAwEAAQ== MIC-Info: RSA-MD5,RSA, RBz7J577EMfHOZvIUgEFyHtypFrDhhEVJKwT/9DoEJ9tm2DskzIV7eeoYG28ayKH AByE3dYefC1Fv9RHFOtr1Q== 0000893220-95-000387.txt : 19950605 0000893220-95-000387.hdr.sgml : 19950605 ACCESSION NUMBER: 0000893220-95-000387 CONFORMED SUBMISSION TYPE: N-30B-2 PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 19950331 FILED AS OF DATE: 19950602 SROS: NONE FILER: COMPANY DATA: COMPANY CONFORMED NAME: GEMINI II INC CENTRAL INDEX KEY: 0000759277 STANDARD INDUSTRIAL CLASSIFICATION: [] STATE OF INCORPORATION: MD FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: N-30B-2 SEC ACT: 1940 Act SEC FILE NUMBER: 811-04168 FILM NUMBER: 95544380 BUSINESS ADDRESS: STREET 1: PO BOX 2600 VM #V34 CITY: VALLEY FORGE STATE: PA ZIP: 19482 BUSINESS PHONE: 6106696289 N-30B-2 1 VANGUARD GEMINI II 1ST QUARTER REPORT 1 [VANGUARD LOGO] GEMINI II FIRST QUARTER REPORT MARCH 31, 1995 2 FELLOW SHAREHOLDER: The stock market rose smartly during the three months ended March 31, the first quarter of Gemini II's 1995 fiscal year. Our Fund enjoyed a solid participation in the market rally. That said, the unmanaged Standard & Poor's 500 Composite Stock Price Index--our stock market measurement standard--again proved to be a tough bogey for portfolio managers. This Index has a distinct tilt toward stocks of companies with large capitalizations, including both growth and value stocks. Thus, it is a reasonable benchmark for Gemini II, which emphasizes value stocks and stocks with medium-sized capitalizations. The performance comparison follows:
- ----------------------------------------------------------------------------------- Total Return Three Months Ended ----------------------- March 31, 1995 - ----------------------------------------------------------------------------------- GEMINI II +8.9% - ----------------------------------------------------------------------------------- STANDARD & POOR'S 500 STOCK INDEX +9.7% - -----------------------------------------------------------------------------------
The Fund's total return is allocated so that 100% of the portfolio's capital appreciation (or depreciation) is received by the Capital Shares, which provided 50% of the Fund's initial capital. By the same token, 100% of net investment income is received by the Income Shares, which provided the remaining 50% of the Fund's initial capital. THE CAPITAL SHARE RESULTS The net asset value of our Capital Shares rose from $19.03 on December 31, 1994, to $21.11 on March 31, 1995, an increase of +10.9% for the quarter. This increase was marginally better than the gain of +9.0% for the Standard & Poor's 500 Index (income excluded). Our Capital Share leverage of 1.4 times might have suggested a larger advantage for the Fund; however, an important part of our total return is accounted for by income (which is paid to the Income Shareholders) as distinct from capital appreciation. THE INCOME SHARE RESULTS Our first quarter dividend was paid on March 1, 1995, at the regular rate of $.35 per share. (You may recall that the dividend was increased from a regular rate of $.25 one year ago.) As in the past, we will distribute a year-end "extra" dividend representing the amount by 3 which the Fund's net investment income exceeds the total of the year's quarterly dividends. Net income totaled $1.73 per share for 1994. While it is too early to accurately estimate income for 1995, we are striving to reach, or even exceed, last year's total. PORTFOLIO STATISTICS The following table shows the composition of our portfolio on March 31, 1995:
- ----------------------------------------------------------------------------------- Percentage of Net Assets ------------------------ EQUITY EQUIVALENTS COMMON STOCK 57% CONVERTIBLE SECURITIES 38 LOWER-GRADE BONDS 4 - ----------------------------------------------------------------------------------- TOTAL EQUITY EQUIVALENTS 99% NET CASH 1 - ----------------------------------------------------------------------------------- TOTAL PORTFOLIO 100% - -----------------------------------------------------------------------------------
In general, this structure is quite similar to our portfolio allocation at year-end 1994, although the cash position has increased marginally and the lower-grade bond position has been reduced slightly. PREMIUMS AND DISCOUNTS The table below presents the current market discount for the Capital Shares and the premium for the Income Shares. Both the discount and the premium have widened slightly since year-end:
- ------------------------------------------------------------------------------------------- March 31, 1995 ---------------------------------------------- Net Asset Market Value Price Difference - ------------------------------------------------------------------------------------------- CAPITAL SHARES $21.11 $18.250 -13.5% INCOME SHARES 9.43 10.875 +15.3 - ------------------------------------------------------------------------------------------- TOTAL $30.54 $29.125 - 4.6% - -------------------------------------------------------------------------------------------
The Fund will "mature" on January 31, 1997, at which time both classes of shares will be priced at their respective net asset values. I look forward to providing you with a more detailed report, including an in-depth analysis from our Portfolio Manager, John B. Neff, in our Semi-Annual Report three months hence. Sincerely, /s/ JOHN C. BOGLE John C. Bogle Chairman of the Board April 17, 1995 4 INVESTMENTS March 31, 1995
Market Value Shares (000) - ------------------------------------------------------------------------------ COMMON STOCKS (56.6%) - ------------------------------------------------------------------------------ BANKS (21.2%) Bankers Trust New York Corp. 254,292 $ 13,287 The Chase Manhattan Corp. 35,630 1,269 Chemical Banking Corp. 396,400 14,964 First Tennessee National Corp. 21,300 879 First Union Corp. 404,000 17,523 KeyCorp 584,189 16,503 NationsBank, Inc. 127,200 6,456 ---------- GROUP TOTAL 70,881 ---------- - ------------------------------------------------------------------------------ ELECTRIC UTILITIES (4.7%) Unicom Corp. 658,937 15,650 ---------- - ------------------------------------------------------------------------------ INSURANCE (10.3%) Aetna Life & Casualty Co. 253,360 14,442 CIGNA Corp. 265,500 19,846 ---------- GROUP TOTAL 34,288 ---------- - ------------------------------------------------------------------------------ OIL (9.4%) Atlantic Richfield Co. 101,600 11,684 Pennzoil Co. 145,500 6,893 USX-Marathon Group 427,100 7,474 Ultramar Corp. 203,400 5,289 ---------- GROUP TOTAL 31,340 ---------- - ------------------------------------------------------------------------------ RETAILERS (2.7%) Kmart Corp. 654,800 9,003 ---------- - ------------------------------------------------------------------------------ SAVINGS & LOAN (8.3%) H.F. Ahmanson & Co. 703,100 12,656 Great Western Financial Corp. 798,001 14,962 ---------- GROUP TOTAL 27,618 ---------- - ------------------------------------------------------------------------------ TOTAL COMMON STOCKS (Cost $181,254) 188,780 - ------------------------------------------------------------------------------ CONVERTIBLE PREFERRED STOCKS (31.2%) - ------------------------------------------------------------------------------ Bethlehem Steel Corp. $2.50 36,400 910 $3.50 170,000 7,778 $5.00 93,600 4,575 Chrysler Corp. $4.625 149,500 17,435 Citicorp 10.75% 73,000 8,605 Delta Air Lines $3.50 250,000 13,281 Ford Motor Co. $4.20 170,000 14,918 (1)Kaiser Aluminum $.65 1,391,000 11,302 Reynolds Metals $3.31 124,400 5,893 Santa Fe Energy Resources, Inc. 8.25% 200,000 1,925 Sea Containers, Ltd. $4.00 112,700 4,649 Valero Energy $3.125 85,000 3,634 WHX Corp. 7.50% 30,000 1,260 - ------------------------------------------------------------------------------ OTHER (2.4%) 8,000 - ------------------------------------------------------------------------------ TOTAL CONVERTIBLE PREFERRED STOCKS (Cost $98,433) 104,165 - ------------------------------------------------------------------------------
5
- ------------------------------------------------------------------------------ BONDS (11.1%) - ------------------------------------------------------------------------------ Face Market Amount Value (000) (000) --------- --------- CONVERTIBLE (7.0%) Conner Peripherals 6.50%, 3/1/02 $ 5,250 $ 4,042 Continental Homes 6.875%, 3/15/02 3,406 2,725 Owens-Corning Fiberglas 8.00%, 12/30/05 300 354 Seagate Technology 6.75%, 5/1/12 11,000 9,955 Toll Corp. 4.75%, 1/15/04 4,422 3,405 U.S. Home 4.875%, 11/1/05 1,750 1,190 Western Digital 9.00%, 6/1/14 1,500 1,665 --------- GROUP TOTAL 23,336 --------- - ------------------------------------------------------------------------------ NON-CONVERTIBLE (4.1%) Family Restaurants 0.00%, 2/1/04 3,000 1,140 Geneva Steel 11.125%, 3/15/01 7,000 6,352 Ryland Group 9.625%, 6/1/04 2,500 2,200 Weirton Steel Corp. 10.875%, 10/15/99 4,000 3,900 --------- GROUP TOTAL 13,592 --------- - ------------------------------------------------------------------------------ TOTAL BONDS (Cost $35,921) 36,928 - ------------------------------------------------------------------------------ TEMPORARY CASH INVESTMENT (.3%) - ------------------------------------------------------------------------------ REPURCHASE AGREEMENT Collateralized by U.S. Government Obligations in a Pooled Cash Account 6.27%, 4/3/95 (Cost $930) 930 930 - ------------------------------------------------------------------------------ TOTAL INVESTMENTS (99.2%) (Cost $316,538) 330,803 - ------------------------------------------------------------------------------ OTHER ASSETS AND LIABILITIES-- NET (.8%) 2,684 - ------------------------------------------------------------------------------ NET ASSETS (100%) $333,487 ============================================================================== (1) Mandatory conversion June 30, 1996.
6 THE VANGUARD FAMILY OF FUNDS FIXED INCOME FUNDS MONEY MARKET FUNDS Vanguard Admiral Funds U.S. Treasury Money Market Portfolio Vanguard Money Market Reserves TAX-EXEMPT MONEY MARKET FUNDS Vanguard Municipal Bond Fund Money Market Portfolio Vanguard State Tax-Free Funds Money Market Portfolios (CA, NJ, OH, PA) TAX-EXEMPT INCOME FUNDS Vanguard Municipal Bond Fund Vanguard State Tax-Free Funds Insured Longer-Term Portfolios (CA, FL, NJ, NY, OH, PA) INCOME FUNDS Vanguard Admiral Funds Vanguard Fixed Income Securities Fund Vanguard Preferred Stock Fund EQUITY AND BALANCED FUNDS GROWTH AND INCOME FUNDS Vanguard Convertible Securities Fund Vanguard Equity Income Fund Vanguard Quantitative Portfolios Vanguard/Trustees' Equity Fund U.S. Portfolio Vanguard/Windsor Fund Vanguard/Windsor II BALANCED FUNDS Vanguard Asset Allocation Fund Vanguard LifeStrategy Funds Income Portfolio Conservative Growth Portfolio Moderate Growth Portfolio Growth Portfolio Vanguard STAR Fund Vanguard/Wellesley Income Fund Vanguard/Wellington Fund GROWTH FUNDS Vanguard/Morgan Growth Fund Vanguard/PRIMECAP Fund Vanguard U.S. Growth Portfolio AGGRESSIVE GROWTH FUNDS Vanguard Explorer Fund Vanguard Specialized Portfolios INTERNATIONAL FUNDS Vanguard International Growth Portfolio Vanguard/Trustees' Equity Fund International Portfolio INDEX FUNDS Vanguard Index Trust Total Stock Market Portfolio 500 Portfolio Extended Market Portfolio Growth Portfolio Value Portfolio Small Capitalization Stock Portfolio Vanguard International Equity Index Fund European Portfolio Pacific Portfolio Emerging Markets Portfolio Vanguard Bond Index Fund Vanguard Tax-Managed Fund Vanguard Balanced Index Fund [VANGUARD GROUP LOGO] Vanguard Financial Center Valley Forge, Pennsylvania 19482 New Account Information: Shareholder Account Services: 1-(800) 662-7447 1-(800) 662-2739 This Report has been prepared for shareholders and may be distributed to others only if preceded or accompanied by a current prospectus. All Funds in the Vanguard Family are offered by prospectus only. Q341-3/95 -----END PRIVACY-ENHANCED MESSAGE-----