0000932471-11-003860.txt : 20111028 0000932471-11-003860.hdr.sgml : 20111028 20111028110402 ACCESSION NUMBER: 0000932471-11-003860 CONFORMED SUBMISSION TYPE: N-14 PUBLIC DOCUMENT COUNT: 3 FILED AS OF DATE: 20111028 DATE AS OF CHANGE: 20111028 FILER: COMPANY DATA: COMPANY CONFORMED NAME: VANGUARD VALLEY FORGE FUNDS CENTRAL INDEX KEY: 0000889519 IRS NUMBER: 000000000 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: N-14 SEC ACT: 1933 Act SEC FILE NUMBER: 333-177574 FILM NUMBER: 111163864 BUSINESS ADDRESS: STREET 1: P O BOX 2600 STREET 2: V26 CITY: VALLEY FORGE STATE: PA ZIP: 19482 BUSINESS PHONE: 6105037040 MAIL ADDRESS: STREET 1: P.O. BOX 2600 STREET 2: V26 CITY: VALLEY FORGE STATE: PA ZIP: 19482 FORMER COMPANY: FORMER CONFORMED NAME: VANGUARD BALANCED INDEX FUNDS DATE OF NAME CHANGE: 20070223 FORMER COMPANY: FORMER CONFORMED NAME: VANGUARD BALANCED INDEX FUND DATE OF NAME CHANGE: 20011121 FORMER COMPANY: FORMER CONFORMED NAME: VANGUARD BALANCED INDEX FUND INC DATE OF NAME CHANGE: 19920715 CENTRAL INDEX KEY: 0000889519 S000002560 VANGUARD BALANCED INDEX FUND C000007054 INVESTOR SHARES VBINX CENTRAL INDEX KEY: 0000836906 S000002867 Vanguard Asset Allocation Fund C000007883 Investor Shares VAAPX CENTRAL INDEX KEY: 0000889519 S000002560 VANGUARD BALANCED INDEX FUND C000007055 ADMIRAL SHARES VBIAX CENTRAL INDEX KEY: 0000836906 S000002867 Vanguard Asset Allocation Fund C000007884 Admiral Shares VAARX N-14 1 assetallocationn14responsele.htm SEC RESPONSE LETTER assetallocationn14responsele.htm - Generated by SEC Publisher for SEC Filing

 

 

                                                                                                                                                                       P.O. Box 2600

                                                                                                                                                                      Valley Forge, PA 19482-2600

 

                                                                                                                                                                      610-669-1538

                                                                                                                                                                      Judy_L_Gaines@vanguard.com  

 

October 28, 2011

 

Chad Eskildsen, Esq.

U.S. Securities & Exchange Commission                               via electronic filing

100 F Street, N.E.

Washington, DC  20549

 

RE:      Vanguard Valley Forge Funds

 

 

Dear Mr. Eskildsen,

This letter responds to your comments of October 21, 2011 to the Trust’s Registration Statement on Form N-14, which was filed on September 30, 2011.

 

Comment 1:   Combined Fund Expense Ratios vs. Pro Forma Combined Fund Expense Ratios

Comment:       The post- merger expenses of the combined funds differ in the disclosure on page I as compared to those disclosed on page 7.

 

Response:        Per our discussion on October 21st, the expense figures are different because those on page I reflect the expenses that would be in place if the merger were effected in early 2012 as proposed, while the expenses on page 7 are pro forma, and reflect expenses had the merger occurred as of the end of 2010.   Since each set of expense figures is accurate, we do not plan to edit the figures.  We will, however, edit the paragraph prior to the pro forma expense tables on page 7 to explain why the two sets of figures differ.

Comment 2:   Primary Investment Strategies

Comment:       On page 12, in addition to listing the old and new Primary Investment Strategies of Vanguard Asset Allocation Fund as it transitions prior to the proposed merger, also disclose the differences between the old and new Primary Investment Strategies.

Response:        We will add disclosure on page 12 in response to the comment.

 

 

 

Comment 3:   Industry Concentration Risk

0255539, v0.1


 

 

 

                                                                                                                                                                       P.O. Box 2600

                                                                                                                                                                      Valley Forge, PA 19482-2600

 

                                                                                                                                                                      610-669-1538

                                                                                                                                                                      Judy_L_Gaines@vanguard.com   

Comment:       On page 15, clarify that the acquiring fund only concentrates as necessary to track its target index, whereas the Asset Allocation Fund could not concentrate at all prior to the proposed merger.

 

Response:        We will clarify the disclosure in response to the comment. 

 

 

Comment 4:   Industry Concentration Risk

Comment:       Consider amending the disclosure to reflect the fact that following the proposed merger, shareholders would be subject to greater risk due to the different industry concentration policy.

 

Response:        Per our discussion on October 21st, since industry concentration risk is not a primary risk of the acquiring fund, we do not plan to make any edits that would suggest that the proposed merger would result in industry concentration risk being a new primary risk to which current Asset Allocation Fund shareholders would be subject.  We will, however, modify the disclosure to note that funds that are subject to industry concentration risk are more susceptible to the risks associated with specific industries.

 

Comment 5:   Tandy Requirements

As required by the SEC, the Fund acknowledges that:

 

·         The Fund is responsible for the adequacy and accuracy of the disclosure in the filing.

·         Staff comments or changes in response to staff comments in the filings reviewed by the staff do not foreclose the Commission from taking any action with respect to the filing.

·         The Fund may not assert staff comments as a defense in any proceeding initiated by the Commission or any person under the federal securities laws of the United States.

 

Please contact me at (610) 669-1538 with any questions or comments regarding the above responses.  Thank you.

 

                                                                                                         Sincerely,           

 

 

                                                                                                         Judith L. Gaines

Associate Counsel

 

cc:        Brion Thompson, Esq.

 

0255539, v0.1


 
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