-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, U7Nsv8PwHrqoEYhFpmQLmr3frW+Cs2gFyH0UrgLWu1z4uk0mEhhE0XXkuKVPpxwp GnD6pd2g1Dz1D5ve+s1c+g== 0000932471-07-001041.txt : 20100108 0000932471-07-001041.hdr.sgml : 20100108 20070802155313 ACCESSION NUMBER: 0000932471-07-001041 CONFORMED SUBMISSION TYPE: CORRESP PUBLIC DOCUMENT COUNT: 1 FILED AS OF DATE: 20070802 FILER: COMPANY DATA: COMPANY CONFORMED NAME: VANGUARD EXPLORER FUND CENTRAL INDEX KEY: 0000034066 IRS NUMBER: 510106626 STATE OF INCORPORATION: DE FISCAL YEAR END: 1031 FILING VALUES: FORM TYPE: CORRESP BUSINESS ADDRESS: STREET 1: PO BOX 2600 STREET 2: V26 CITY: VALLEY FORGE STATE: PA ZIP: 19482 BUSINESS PHONE: 6106696295 MAIL ADDRESS: STREET 1: P.O. BOX 2600 STREET 2: V26 CITY: VALLEY FORGE STATE: PA ZIP: 19482 FORMER COMPANY: FORMER CONFORMED NAME: VANGUARD EXPLORER FUND INC DATE OF NAME CHANGE: 19920703 FORMER COMPANY: FORMER CONFORMED NAME: EXPLORER FUND INC DATE OF NAME CHANGE: 19900305 CORRESP 1 filename1.txt [SHIP LOGO VANGUARD /(R)/] P.O. Box 2600 Valley Forge, PA 19482-2600 610-669-5284 Lisa_Matson@vanguard.com August 2, 2007 Christian Sandoe, Esq. U.S. Securities & Exchange Commission via electronic filing 100 F Street, N.E. Washington, DC 20549 RE: Vanguard Explorer Fund File No. 2-27203 Dear Mr. Sandoe, The following responds to your comments of July 30, 2007 on the post-effective amendment of the registration statement of the above-referenced registrant. You commented on Post-Effective Amendment No. 78 that was filed on June 14, 2007. COMMENT 1: PROSPECTUS - SECURITY SELECTION - ------------------------------------------------- Comment: The percentage amounts that the investment advisors manage totals over 100%. Response: We have corrected the percentage amounts and they now equal 100%. COMMENT 2: PROSPECTUS - FREQUENT TRADING AND MARKET TIMING - ---------------------------------------------------------------- Comment: The prospectus indicates that short-term bond funds accommodate frequent trading. Please confirm if this disclosure is appropriate. Response: The frequent trading policy does not apply to short-term bond funds. The number of exchanges into and out of a short-term bond fund is not limited. Accordingly, we do not plan to amend the disclosure. COMMENT 3: PROSPECTUS - PLAIN TALK ABOUT THE FUND'S PORTFOLIO MANAGERS - ----------------------------------------------------------------------------- Comment: Please clarify the role played by the various portfolio managers. Response: We have confirmed that the existing disclosure whereby portfolio managers are referred to as "co-managers" is an accurate description of their roles. The portfolio managers are truly equals and work together in managing Fund assets, sharing in the determination of strategies and risk exposures, and placing trades on behalf of the respective advisory firms' portions of the Fund's assets. Neither PM reports to or presides over the other, nor are there limitations placed on the roles or responsibilities of the portfolio managers. In all cases, the advisory firms have represented that the current PM disclosure accurately describes the roles played by the portfolio managers in their management of fund assets. Furthermore, we believe that our existing disclosure satisfies the requirements of Item 5(a)(2) of Form N-1A. Accordingly, we do not plan to amend the disclosure. Christian Sandoe, Esq. August 2, 2007 Page 2 COMMENT 4: SAI - DESCRIPTION OF COMPENSATION - --------------------------------------------------- Comment: Please clarify if Chartwell's bonus is based on the gross composite performance before or after taxes. Response: We have confirmed with Chartwell that the bonus is calibrated based on the gross composite performance before taxes. Accordingly, the updated text will read as follows, "The bonus is calibrated based on the gross composite performance (before taxes) of such accounts..." COMMENT 5: TANDY REQUIREMENTS - ------------------------------------ As required by the SEC, the Fund acknowledges that: o The Fund is responsible for the adequacy and accuracy of the disclosure in the filing. o 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. o 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) 669-5284 with any questions or comments regarding the above responses. Thank you. Sincerely, Lisa L.B. Matson Associate Counsel Securities Regulation, Legal Department -----END PRIVACY-ENHANCED MESSAGE-----