UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT
OF
REGISTERED MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number: 811-04526
Name of Registrant: | Vanguard Quantitative Funds |
Address of Registrant: | P.O. Box 2600 |
Valley Forge, PA 19482 |
Name and address of agent for service: | Anne E. Robinson, Esquire |
P.O. Box 876 | |
Valley Forge, PA 19482 |
Registrant’s telephone number, including area code: (610) 669-1000
Date of fiscal year end: September 30
Date of reporting period: October 1, 2020—September 30, 2021
Item 1: Reports to Shareholders
Your Fund’s Performance at a Glance | 1 |
Advisors’ Report | 2 |
About Your Fund’s Expenses | 6 |
Performance Summary | 8 |
Financial Statements | 10 |
Trustees Approve Advisory Arrangements | 39 |
• | Vanguard Growth and Income Fund returned 30.22% for Investor Shares and 30.34% for Admiral Shares for the 12 months ended September 30, 2021. Its performance surpassed that of its benchmark, which returned 30%. |
• | The global economy rebounded faster than many had expected after the pandemic-induced contraction in the spring of 2020. Swift and extensive fiscal and monetary support from policymakers was one of the keys to the rebound. Stock returns were excellent for the 12-month period, reflecting the recovery following the sharp downturn at the start of the pandemic. |
• | The fund’s positions in information technology, materials, and utilities contributed the most to performance on a relative basis. Industrials, consumer staples, and energy were the biggest detractors. |
• | For the ten years ended September 30, 2021, the fund’s average annual return slightly lagged its benchmark. |
Average Annual Total Returns Periods Ended September 30, 2021 | |||
One Year | Three Years | Five Years | |
Stocks | |||
Russell 1000 Index (Large-caps) | 30.96% | 16.43% | 17.11% |
Russell 2000 Index (Small-caps) | 47.68 | 10.54 | 13.45 |
Russell 3000 Index (Broad U.S. market) | 31.88 | 16.00 | 16.85 |
FTSE All-World ex US Index (International) | 24.73 | 8.49 | 9.28 |
Bonds | |||
Bloomberg U.S. Aggregate Bond Index (Broad taxable market) | -0.90% | 5.36% | 2.94% |
Bloomberg Municipal Bond Index (Broad tax-exempt market) | 2.63 | 5.06 | 3.26 |
FTSE Three-Month U.S. Treasury Bill Index | 0.06 | 1.14 | 1.13 |
CPI | |||
Consumer Price Index | 5.39% | 2.81% | 2.59% |
Fund Assets Managed | |||
Investment Advisor | % | $ Million | Investment Strategy |
Los Angeles Capital | 33 | 4,278 | Employs a quantitative model that emphasizes stocks with characteristics investors are currently seeking and underweights stocks with characteristics investors are currently avoiding. The portfolio’s sector weights, size, and style characteristics may differ modestly from the benchmark in a risk-controlled manner. |
Vanguard Quantitative Equity Group | 33 | 4,263 | Employs a quantitative fundamental management approach, using models that assess valuation, growth prospects, management decisions, market sentiment, and earnings and balance-sheet quality of companies as compared with their peers. |
D. E. Shaw Investment Management, L.L.C. | 32 | 4,225 | Employs quantitative models that seek to capture predominantly bottom-up stock-specific return opportunities. The portfolio’s sector weights, size, and style characteristics may differ modestly from the benchmark in a risk-controlled manner. |
Cash Investments | 2 | 260 | These short-term reserves are invested by Vanguard in equity index products to simulate investment in stocks. Each advisor may also maintain a modest cash position. |
• | 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 September 30, 2021 | |||
Growth and Income Fund | Beginning Account Value 3/31/2021 | Ending Account Value 9/30/2021 | Expenses Paid During Period |
Based on Actual Fund Return | |||
Investor Shares | $1,000.00 | $1,083.20 | $1.62 |
Admiral™ Shares | 1,000.00 | 1,083.60 | 1.10 |
Based on Hypothetical 5% Yearly Return | |||
Investor Shares | $1,000.00 | $1,023.51 | $1.57 |
Admiral Shares | 1,000.00 | 1,024.02 | 1.07 |
Average Annual Total Returns Periods Ended September 30, 2021 | |||||
One Year | Five Years | Ten Years | Final Value of a $10,000 Investment | ||
Growth and Income Fund Investor Shares | 30.22% | 16.19% | 16.50% | $46,037 | |
S&P 500 Index | 30.00 | 16.90 | 16.63 | 46,586 | |
Dow Jones U.S. Total Stock Market Float Adjusted Index | 32.13 | 16.82 | 16.56 | 46,280 |
One Year | Five Years | Ten Years | Final Value of a $50,000 Investment | ||
Growth and Income Fund Admiral Shares | 30.34% | 16.31% | 16.62% | $232,619 | |
S&P 500 Index | 30.00 | 16.90 | 16.63 | 232,931 | |
Dow Jones U.S. Total Stock Market Float Adjusted Index | 32.13 | 16.82 | 16.56 | 231,402 |
Communication Services | 12.3% |
Consumer Discretionary | 13.9 |
Consumer Staples | 5.4 |
Energy | 2.2 |
Financials | 11.1 |
Health Care | 13.4 |
Industrials | 7.2 |
Information Technology | 28.2 |
Materials | 2.1 |
Real Estate | 2.5 |
Utilities | 1.5 |
Other | 0.2 |
Futures Contracts | ||||
($000) | ||||
Expiration | Number of Long (Short) Contracts | Notional Amount | Value and Unrealized Appreciation (Depreciation) | |
Long Futures Contracts | ||||
E-mini S&P 500 Index | December 2021 | 1,268 | 272,477 | (9,612) |
($000s, except shares and per-share amounts) | Amount |
Assets | |
Investments in Securities, at Value | |
Unaffiliated Issuers (Cost $8,315,316) | 12,740,136 |
Affiliated Issuers (Cost $276,488) | 276,595 |
Total Investments in Securities | 13,016,731 |
Investment in Vanguard | 452 |
Cash | 158 |
Cash Collateral Pledged—Futures Contracts | 14,774 |
Receivables for Investment Securities Sold | 25,493 |
Receivables for Accrued Income | 9,911 |
Receivables for Capital Shares Issued | 3,588 |
Total Assets | 13,071,107 |
Liabilities | |
Due to Custodian | 2,033 |
Payables for Investment Securities Purchased | 23,740 |
Collateral for Securities on Loan | 4,676 |
Payables to Investment Advisor | 1,946 |
Payables for Capital Shares Redeemed | 8,539 |
Payables to Vanguard | 913 |
Variation Margin Payable—Futures Contracts | 3,341 |
Total Liabilities | 45,188 |
Net Assets | 13,025,919 |
At September 30, 2021, net assets consisted of: | |
Paid-in Capital | 6,993,457 |
Total Distributable Earnings (Loss) | 6,032,462 |
Net Assets | 13,025,919 |
Investor Shares—Net Assets | |
Applicable to 48,439,607 outstanding $.001 par value shares of beneficial interest (unlimited authorization) | 3,204,857 |
Net Asset Value Per Share—Investor Shares | $66.16 |
Admiral Shares—Net Assets | |
Applicable to 90,923,455 outstanding $.001 par value shares of beneficial interest (unlimited authorization) | 9,821,062 |
Net Asset Value Per Share—Admiral Shares | $108.01 |
Year Ended September 30, 2021 | |
($000) | |
Investment Income | |
Income | |
Dividends1 | 196,998 |
Interest2 | 279 |
Securities Lending—Net | 246 |
Total Income | 197,523 |
Expenses | |
Investment Advisory Fees—Note B | |
Basic Fee | 12,105 |
Performance Adjustment | (600) |
The Vanguard Group—Note C | |
Management and Administrative—Investor Shares | 7,281 |
Management and Administrative—Admiral Shares | 11,717 |
Marketing and Distribution—Investor Shares | 207 |
Marketing and Distribution—Admiral Shares | 293 |
Custodian Fees | 154 |
Auditing Fees | 29 |
Shareholders’ Reports—Investor Shares | 56 |
Shareholders’ Reports—Admiral Shares | 76 |
Trustees’ Fees and Expenses | 11 |
Total Expenses | 31,329 |
Net Investment Income | 166,194 |
Realized Net Gain (Loss) | |
Investment Securities Sold2 | 1,849,326 |
Futures Contracts | 84,440 |
Realized Net Gain (Loss) | 1,933,766 |
Change in Unrealized Appreciation (Depreciation) | |
Investment Securities2 | 1,212,568 |
Futures Contracts | (13,631) |
Change in Unrealized Appreciation (Depreciation) | 1,198,937 |
Net Increase (Decrease) in Net Assets Resulting from Operations | 3,298,897 |
1 | Dividends are net of foreign withholding taxes of $27,000. |
2 | Interest income, realized net gain (loss), and change in unrealized appreciation (depreciation) from an affiliated company of the fund were $247,000, $5,000, and ($5,000), respectively. Purchases and sales are for temporary cash investment purposes. |
Year Ended September 30, | ||
2021 ($000) | 2020 ($000) | |
Increase (Decrease) in Net Assets | ||
Operations | ||
Net Investment Income | 166,194 | 185,256 |
Realized Net Gain (Loss) | 1,933,766 | 486,613 |
Change in Unrealized Appreciation (Depreciation) | 1,198,937 | 831,423 |
Net Increase (Decrease) in Net Assets Resulting from Operations | 3,298,897 | 1,503,292 |
Distributions | ||
Investor Shares | (191,602) | (121,067) |
Admiral Shares | (572,128) | (362,694) |
Total Distributions | (763,730) | (483,761) |
Capital Share Transactions | ||
Investor Shares | (225,705) | (346,621) |
Admiral Shares | (1,148,490) | (79,597) |
Net Increase (Decrease) from Capital Share Transactions | (1,374,195) | (426,218) |
Total Increase (Decrease) | 1,160,972 | 593,313 |
Net Assets | ||
Beginning of Period | 11,864,947 | 11,271,634 |
End of Period | 13,025,919 | 11,864,947 |
Investor Shares | |||||
For a Share Outstanding Throughout Each Period | Year Ended September 30, | ||||
2021 | 2020 | 2019 | 2018 | 2017 | |
Net Asset Value, Beginning of Period | $54.15 | $49.46 | $52.17 | $46.50 | $42.16 |
Investment Operations | |||||
Net Investment Income1 | .761 | .787 | .823 | .711 | .792 |
Net Realized and Unrealized Gain (Loss) on Investments | 14.991 | 6.024 | (.204) | 7.650 | 6.346 |
Total from Investment Operations | 15.752 | 6.811 | .619 | 8.361 | 7.138 |
Distributions | |||||
Dividends from Net Investment Income | (.770) | (.815) | (.766) | (.668) | (.799) |
Distributions from Realized Capital Gains | (2.972) | (1.306) | (2.563) | (2.023) | (1.999) |
Total Distributions | (3.742) | (2.121) | (3.329) | (2.691) | (2.798) |
Net Asset Value, End of Period | $66.16 | $54.15 | $49.46 | $52.17 | $46.50 |
Total Return2 | 30.22% | 14.07% | 2.21% | 18.56% | 17.66% |
Ratios/Supplemental Data | |||||
Net Assets, End of Period (Millions) | $3,205 | $2,779 | $2,860 | $2,932 | $2,982 |
Ratio of Total Expenses to Average Net Assets3 | 0.32% | 0.32% | 0.33% | 0.33% | 0.34% |
Ratio of Net Investment Income to Average Net Assets | 1.22% | 1.57% | 1.73% | 1.45% | 1.80% |
Portfolio Turnover Rate | 62% | 58% | 68% | 83% | 96% |
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 (0.00%), 0.00%, 0.01%, 0.00%, and 0.00%. |
Admiral Shares | |||||
For a Share Outstanding Throughout Each Period | Year Ended September 30, | ||||
2021 | 2020 | 2019 | 2018 | 2017 | |
Net Asset Value, Beginning of Period | $88.40 | $80.74 | $85.16 | $75.93 | $68.83 |
Investment Operations | |||||
Net Investment Income1 | 1.344 | 1.364 | 1.421 | 1.242 | 1.362 |
Net Realized and Unrealized Gain (Loss) on Investments | 24.466 | 9.842 | (.330) | 12.473 | 10.384 |
Total from Investment Operations | 25.810 | 11.206 | 1.091 | 13.715 | 11.746 |
Distributions | |||||
Dividends from Net Investment Income | (1.347) | (1.414) | (1.326) | (1.182) | (1.384) |
Distributions from Realized Capital Gains | (4.853) | (2.132) | (4.185) | (3.303) | (3.262) |
Total Distributions | (6.200) | (3.546) | (5.511) | (4.485) | (4.646) |
Net Asset Value, End of Period | $108.01 | $88.40 | $80.74 | $85.16 | $75.93 |
Total Return2 | 30.34% | 14.19% | 2.32% | 18.65% | 17.81% |
Ratios/Supplemental Data | |||||
Net Assets, End of Period (Millions) | $9,821 | $9,086 | $8,412 | $8,491 | $7,015 |
Ratio of Total Expenses to Average Net Assets3 | 0.22% | 0.22% | 0.23% | 0.23% | 0.23% |
Ratio of Net Investment Income to Average Net Assets | 1.33% | 1.66% | 1.83% | 1.55% | 1.91% |
Portfolio Turnover Rate | 62% | 58% | 68% | 83% | 96% |
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 (0.00%), 0.00%, 0.01%, 0.00%, and 0.00%. |
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 Los Angeles Capital Management LLC (formerly Los Angeles Capital Management and Equity Research, Inc.) and D. E. Shaw Investment Management, L.L.C., each provide investment advisory services to a portion of the fund for a fee calculated at an annual percentage rate of average net assets managed by the advisor. The basic fee of Los Angeles Capital Management LLC is subject to quarterly adjustments based on performance relative to the S&P 500 Index for the preceding five years. The basic fee of D. E. Shaw Investment Management, L.L.C., is subject to quarterly adjustments based on performance relative to the S&P 500 Index for the preceding three years. |
C. | In accordance with the terms of a Funds' Service Agreement (the “FSA”) between Vanguard and the fund, Vanguard furnishes to the fund investment advisory, corporate management, administrative, marketing, and distribution services at Vanguard’s cost of operations (as defined by the FSA). These costs of operations are allocated to the fund based on methods and guidelines approved by the board of trustees 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 | 12,740,070 | 66 | — | 12,740,136 |
Temporary Cash Investments | 276,595 | — | — | 276,595 |
Total | 13,016,665 | 66 | — | 13,016,731 |
Derivative Financial Instruments | ||||
Liabilities | ||||
Futures Contracts1 | 9,612 | — | — | 9,612 |
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. | Permanent differences between book-basis and tax-basis components of net assets are reclassified among capital accounts in the financial statements to reflect their tax character. These reclassifications have no effect on net assets or net asset value per share. As of period end, permanent differences primarily attributable to the accounting for passive foreign investment companies and distributions in connection with fund share redemptions were reclassified between the following accounts: |
Amount ($000) | |
Paid-in Capital | 129,878 |
Total Distributable Earnings (Loss) | (129,878) |
Amount ($000) | |
Undistributed Ordinary Income | 493,665 |
Undistributed Long-Term Gains | 1,155,670 |
Capital Loss Carryforwards | — |
Qualified Late-Year Losses | — |
Net Unrealized Gains (Losses) | 4,383,127 |
Year Ended September 30, | ||
2021 Amount ($000) | 2020 Amount ($000) | |
Ordinary Income* | 226,497 | 197,771 |
Long-Term Capital Gains | 537,233 | 285,990 |
Total | 763,730 | 483,761 |
* | Includes short-term capital gains, if any. |
Amount ($000) | |
Tax Cost | 8,633,604 |
Gross Unrealized Appreciation | 4,630,715 |
Gross Unrealized Depreciation | (247,588) |
Net Unrealized Appreciation (Depreciation) | 4,383,127 |
F. | During the year ended September 30, 2021, the fund purchased $7,588,251,000 of investment securities and sold $9,469,574,000 of investment securities, other than temporary cash investments. |
G. | Capital share transactions for each class of shares were: |
Year Ended September 30, | |||||
2021 | 2020 | ||||
Amount ($000) | Shares (000) | Amount ($000) | Shares (000) | ||
Investor Shares | |||||
Issued | 489,207 | 7,921 | 364,628 | 7,412 | |
Issued in Lieu of Cash Distributions | 183,127 | 3,204 | 116,087 | 2,281 | |
Redeemed | (898,039) | (14,003) | (827,336) | (16,197) | |
Net Increase (Decrease)—Investor Shares | (225,705) | (2,878) | (346,621) | (6,504) | |
Admiral Shares | |||||
Issued | 1,359,728 | 13,235 | 1,327,369 | 16,185 | |
Issued in Lieu of Cash Distributions | 530,177 | 5,686 | 339,569 | 4,090 | |
Redeemed | (3,038,395) | (30,777) | (1,746,535) | (21,683) | |
Net Increase (Decrease)—Admiral Shares | (1,148,490) | (11,856) | (79,597) | (1,408) |
H. | Management has determined that no events or transactions occurred subsequent to September 30, 2021, that would require recognition or disclosure in these financial statements. |
Item 2: Code of Ethics.
The Registrant has adopted a code of ethics that applies to the Registrant’s principal executive officer, principal financial officer, principal accounting officer or controller or persons performing similar functions. The Code of Ethics was amended during the reporting period covered by this report to make certain technical, non-material changes.
Item 3: Audit Committee Financial Expert.
All members of the Audit Committee have been determined by the Registrant’s Board of Trustees to be Audit Committee Financial Experts and to be independent: F. Joseph Loughrey, Mark Loughridge, Sarah Bloom Raskin, and Peter F. Volanakis.
Item 4: Principal Accountant Fees and Services.
(a) Audit Fees.
Audit Fees of the Registrant.
Fiscal Year Ended September 30, 2021: $29,000
Fiscal Year Ended September 30, 2020: $25,000
Aggregate Audit Fees of Registered Investment Companies in the Vanguard Group.
Fiscal Year Ended September 30, 2021: $11,244,694
Fiscal Year Ended September 30, 2020: $10,761,407
Includes fees billed in connection with audits of the Registrant, other registered investment companies in the Vanguard complex, The Vanguard Group, Inc., and Vanguard Marketing Corporation.
(b) Audit-Related Fees.
Fiscal Year Ended September 30, 2021: $2,955,181
Fiscal Year Ended September 30, 2020: $2,915,863
Includes fees billed in connection with assurance and related services provided to the Registrant, other registered investment companies in the Vanguard complex, The Vanguard Group, Inc., and Vanguard Marketing Corporation.
(c) Tax Fees.
Fiscal Year Ended September 30, 2021: $2,047,574
Fiscal Year Ended September 30, 2020: $247,168
Includes fees billed in connection with tax compliance, planning, and advice services provided to the Registrant, other registered investment companies in the Vanguard complex, The Vanguard Group, Inc., and Vanguard Marketing Corporation.
(d) All Other Fees.
Fiscal Year Ended September 30, 2021: $280,000
Fiscal Year Ended September 30, 2020: $115,000
Includes fees billed for services related to tax reported information provided to the Registrant, other registered investment companies in the Vanguard complex, The Vanguard Group, Inc., and Vanguard Marketing Corporation.
(e) (1) Pre-Approval Policies. The policy of the Registrant’s Audit Committee is to consider, and, if appropriate, approve before the principal accountant is engaged for such services, all specific audit and non-audit services provided to: the Registrant, other registered investment companies in the Vanguard complex, The Vanguard Group, Inc., and entities controlled by The Vanguard Group, Inc. that provide ongoing services to the Registrant. In making a determination, the Audit Committee considers whether the services are consistent with maintaining the principal accountant’s independence.
In the event of a contingency situation in which the principal accountant is needed to provide services in between scheduled Audit Committee meetings, the Chairman of the Audit Committee would be called on to consider and, if appropriate, pre-approve audit or permitted non-audit services in an amount sufficient to complete services through the next Audit Committee meeting, and to determine if such services would be consistent with maintaining the accountant’s independence. At the next scheduled Audit Committee meeting, services and fees would be presented to the Audit Committee for formal consideration, and, if appropriate, approval by the entire Audit Committee. The Audit Committee would again consider whether such services and fees are consistent with maintaining the principal accountant’s independence.
The Registrant’s Audit Committee is informed at least annually of all audit and non-audit services provided by the principal accountant to the Vanguard complex, whether such services are provided to: the Registrant, other registered investment companies in the Vanguard complex, The Vanguard Group, Inc., or other entities controlled by The Vanguard Group, Inc. that provide ongoing services to the Registrant.
(2) No percentage of the principal accountant’s fees or services were approved pursuant to the waiver provision of paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X.
(f) For the most recent fiscal year, over 50% of the hours worked under the principal accountant’s engagement were not performed by persons other than full-time, permanent employees of the principal accountant.
(g) Aggregate Non-Audit Fees.
Fiscal Year Ended September 30, 2021: $2,327,574
Fiscal Year Ended September 30, 2020: $362,168
Includes fees billed for non-audit services provided to the Registrant, other registered investment companies in the Vanguard complex, The Vanguard Group, Inc., and Vanguard Marketing Corporation.
(h) For the most recent fiscal year, the Audit Committee has determined that the provision of all non-audit services was consistent with maintaining the principal accountant’s independence.
Item 5: Audit Committee of Listed Registrants.
The Registrant is a listed issuer as defined in rule 10A-3 under the Securities Exchange Act of 1934 (“Exchange Act”). The Registrant has a separately-designated standing audit committee established in accordance with Section 3(a)(58)(A) of the Exchange Act. The Registrant’s audit committee members are: F. Joseph Loughrey, Mark Loughridge, Sarah Bloom Raskin, and Peter F. Volanakis.
Item 6: Investments.
Not applicable. 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. In 2020, a third-party service provider began performing certain administrative and accounting services for Vanguard Growth and Income Fund. There were no other 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) | Code of Ethics filed herewith. |
(a)(2) | Certifications filed herewith. |
(b) | Certifications field 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 QUANTITATIVE FUNDS |
BY: | /s/ MORTIMER J. BUCKLEY* | |
MORTIMER J. BUCKLEY | ||
CHIEF EXECUTIVE OFFICER |
Date: November 19, 2021
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
VANGUARD QUANTITATIVE FUNDS |
BY: | /s/ MORTIMER J. BUCKLEY* | |
MORTIMER J. BUCKLEY | ||
CHIEF EXECUTIVE OFFICER |
Date: November 19, 2021
VANGUARD QUANTITATIVE FUNDS |
BY: | /s/ CHRISTINE BUCHANAN* | |
CHRISTINE BUCHANAN | ||
CHIEF FINANCIAL OFFICER |
Date: November 19, 2021
* By: | /s/ Anne E. Robinson |
Anne E. Robinson, pursuant to a Power of Attorney filed on November 29, 2021 (see File Number 33-64845), a Power of Attorney filed on October 12, 2021 (see File Number 33-23444), and a Power of Attorney filed on August 26, 2021 (see file Number 811-02652), Incorporated by Reference.
Exhibit 99.CODE ETH
the vanguard FUNDS’
CODE OF Ethics fOR
SENIOR executive and FINANCIAL OFFICERS
I. | Introduction |
The Board of Trustees (the “Fund Board”) of each registered investment company that is managed, sponsored, and distributed by The Vanguard Group, Inc. (“VGI”) or its subsidiaries (each, a “Vanguard Fund” and collectively, the “Vanguard Funds”) has adopted this code of ethics (the “Code”) as required by Section 406 of the Sarbanes-Oxley Act. The Code applies to the individuals in positions listed on Exhibit A (the “Covered Officers”). All Covered Officers, along with employees of VGI, are subject to separate and distinct obligations from this Code under a Code of Ethics adopted pursuant to Rule 17j-1 under the Investment Company Act of 1940 (“17j-1 Code of Ethics”), policies to prevent the misuse of non-public information, and other internal compliance guidelines and policies that may be in effect from time to time.
This Code is designed to promote:
● | Honest and ethical conduct, including the ethical handling of conflicts of interest; |
● | Full, fair, accurate, timely, and understandable disclosure in reports and documents that a Vanguard Fund files with, or submits to, the U.S. Securities and Exchange Commission (“SEC”), and in other public communications made by the Vanguard Funds or VGI; |
● | Compliance with applicable laws, governmental rules, and regulations; |
● | Prompt internal reporting to those identified in the Code of violations of the Code; and |
● | Accountability for adherence to the Code. |
II. | Actual or Apparent Conflicts of Interest |
A. Covered Officers should conduct all activities in accordance with the following principles:
1. | Clients’ interests come first. In the course of fulfilling their duties and responsibilities to VGI clients, Covered Officers must at all times place the interests of VGI clients first. In particular, Covered Officers must avoid serving their own personal interests ahead of the interests of VGI clients. |
2. | Conflicts of interest must be avoided. Covered Officers must avoid any situation involving an actual or potential conflict of interest or possible impropriety with respect to their duties and responsibilities to VGI clients. Covered Officers must disclose and report at least annually any situation that may present the potential for a conflict of interest to Vanguard’s Compliance Department, consistent with the 17j-1 Code of Ethics. |
3. | Compromising situations must be avoided. Covered Officers must not take advantage of their position of trust and responsibility. Covered Officers must avoid any situation that might compromise or call into question their exercise of full independent judgment in the best interests of VGI clients. |
All activities of Covered Officers should be guided by and adhere to these fiduciary standards regardless of whether the activity is specifically described in this Code.
B. Restricted Activities include the following:
1. | Prohibition on secondary employment. Covered Officers are prohibited from accepting or serving in any form of secondary employment. Secondary employment that does not create a potential conflict of interest may be approved by the General Counsel of VGI. |
2. | Prohibition on service as director or public official. Unless approved by the General Counsel of VGI, Covered Officers are prohibited from serving on the board of directors of any publicly traded company or in an official capacity for any federal, state, or local government (or governmental agency or instrumentality). |
3. | Prohibition on misuse of Vanguard time or property. Covered Officers are prohibited from making use of time, equipment, services, personnel or property of any Vanguard entity for any purposes other than the performance of their duties and responsibilities in connection with the Vanguard Funds or other Vanguard-related entities. |
III. | Disclosure and Compliance |
A. | Each Covered Officer should be familiar with the disclosure requirements generally applicable to the Vanguard Funds. |
B. | Each Covered Officer should not knowingly misrepresent, or cause others to misrepresent, facts about the Vanguard Funds to others, including to the Vanguard Funds’ directors and auditors, or to government regulators and self-regulatory organizations. |
C. | Each Covered Officer should, to the extent appropriate within the Covered Officer’s area of responsibility, consult with other officers and employees of VGI and advisors to a Vanguard Fund with the goal of promoting full, fair, accurate, timely and understandable disclosure in the reports and documents the Vanguard Fund files with, or submits to, the SEC and in other public communications made by a Vanguard Fund. |
D. | It is the responsibility of each Covered Officer to promote compliance with the standards and restrictions imposed by applicable laws, rules, regulations, and the 17j-1 Code of Ethics. |
IV. | Reporting and Accountability |
A. Each Covered Officer must:
1. | Upon adoption or amendment of the Code (or thereafter as applicable, upon becoming a Covered Officer), affirm in writing that he or she has received, read, and understands the Code; |
2. | Affirm at least annually in writing that he or she has complied with the requirements of the Code; |
3. | Not retaliate against any other Covered Officer or any employee of VGI for reports of potential violations of the Code that are made in good faith; and |
4. | Notify the General Counsel of VGI promptly if the Covered Officer knows of any violations of this Code. |
B. | The Vanguard Funds will use the following procedures in investigating and enforcing this Code: |
1. | The General Counsel of VGI is responsible for applying this Code to specific situations and has the authority to interpret this Code in any particular situation. The General Counsel will report on an as-needed basis to the Fund Board regarding activities subject to the Code. |
2. | The General Counsel will take all appropriate action to investigate any potential violations of the Code that are reported to him or her. |
3. | If, after investigation, the General Counsel believes that no material violation of the Code has occurred, the General Counsel is not required to take any further action. |
4. | Any matter that the General Counsel believes is a material violation of the Code will be reported to the Chief Compliance Officer and the Fund Board. |
5. | If the Fund Board concurs that a material violation of the Code has occurred, the Fund Board will consider appropriate action. Appropriate action may include reassignment, suspension, or dismissal of the applicable Covered Officer(s), or any other sanctions the Fund Board deems appropriate. Appropriate action may also include review of, and appropriate modifications to, applicable policies and procedures. |
6. | Any changes to or waiver of this Code will, to the extent required, be disclosed as provided by SEC rules. |
Other Policies and Procedures
This Code shall be the sole code of conduct adopted by the Vanguard Funds for purposes of Section 406 of the Sarbanes-Oxley Act and the rules and forms applicable to registered investment companies thereunder. Insofar as other policies or procedures of the Vanguard Funds, VGI, or other service providers govern or purport to govern the behavior or activities of the Covered Officers, they are superseded by this Code to the extent that they overlap or conflict with the provisions of this Code.
VGI’s and the Vanguard Funds’ 17j-1 Code of Ethics, policies to prevent the misuse of non-public information, and other internal compliance guidelines and policies that may be in effect from time to time are separate requirements applying to the Covered Officers and others, and are not part of this Code.
VI. | Amendments |
This Code may not be materially amended except by the approval of a majority vote of the independent trustees of the Fund Board. Non-material, technical, and administrative revisions of the Code do not have to be approved by the Fund Board. Amendments must be in writing and communicated promptly to the Covered Officers, who shall affirm receipt of the amended Code in accordance with Section IV. A. 1.
VII. | Confidentiality |
All reports and records prepared or maintained pursuant to this Code shall be considered confidential and shall be maintained and protected accordingly. Except as otherwise required by law or this Code, such matters shall not be disclosed to anyone other than the Fund Board, VGI’s General Counsel and the Chief Compliance Officer of VGI and the Vanguard Funds.
Last Reviewed: November 20, 2020
EXHIBIT A
to the vanguard FUNDS’
CODE OF Ethics fOR
SENIOR executive and FINANCIAL OFFICERS
Covered Officers (some offices may be held by the same individual):
Chief Executive Officer of the Vanguard Funds
President of the Vanguard Funds
Chief Financial Officer of the Vanguard Funds
Finance Director of the Vanguard Funds
Treasurer of the Vanguard Funds
Assistant Treasurer of the Vanguard Funds
Controller of the Vanguard Funds
Chief Executive Officer of The Vanguard Group, Inc.
President of The Vanguard Group, Inc.
Managing Director, Finance of The Vanguard Group, Inc.
Chief Financial Officer of The Vanguard Group, Inc.
Chief Accounting Officer of The Vanguard Group, Inc.
Treasurer of The Vanguard Group, Inc.
Controller of The Vanguard Group, Inc.
Exhibit 99.CERT
CERTIFICATIONS
I, Mortimer J. Buckley, certify that:
1. I have reviewed this report on Form N-CSR of Vanguard Quantitative 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 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: November 19, 2021
/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 Quantitative 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 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: November 19, 2021
/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 Quantitative Funds
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: November 19, 2021
/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 Quantitative Funds
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: November 19, 2021
/s/ Christine Buchanan | |
Christine Buchanan | |
Chief Financial Officer |