UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-Q
QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF
REGISTERED MANAGEMENT COMPANY
| Investment Company Act file number: 811-04098 |
|
Name of Registrant: Vanguard Chester Funds |
|
Address of Registrant: |
| P.O. Box 2600 |
| Valley Forge, PA 19482 |
|
Name and address of agent for service: |
| Heidi Stam, Esquire |
| P.O. Box 876 |
| Valley Forge, PA 19482 |
|
Date of fiscal year end: September 30 |
|
Date of reporting period: December 31, 2014 |
| Item 1: Schedule of Investments |
Vanguard PRIMECAP Fund
Schedule of Investments
As of December 31, 2014
| Market | ||
| Value | ||
| Shares | ($000) | |
| Common Stocks (95.4%) | ||
| Consumer Discretionary (8.8%) | ||
| L Brands Inc. | 10,018,818 | 867,129 |
| * DIRECTV | 8,053,962 | 698,278 |
| Walt Disney Co. | 5,100,000 | 480,369 |
| TJX Cos. Inc. | 6,875,000 | 471,487 |
| Ross Stores Inc. | 4,523,600 | 426,395 |
| Carnival Corp. | 7,126,500 | 323,044 |
| ^ Sony Corp. ADR | 14,500,000 | 296,815 |
| * Bed Bath & Beyond Inc. | 2,300,975 | 175,265 |
| Whirlpool Corp. | 725,000 | 140,461 |
| VF Corp. | 772,400 | 57,853 |
| * Amazon.com Inc. | 146,000 | 45,311 |
| Time Warner Cable Inc. | 293,304 | 44,600 |
| Las Vegas Sands Corp. | 400,000 | 23,264 |
| * CarMax Inc. | 13,300 | 886 |
| 4,051,157 | ||
| Consumer Staples (0.4%) | ||
| CVS Health Corp. | 1,795,065 | 172,883 |
| Costco Wholesale Corp. | 200,000 | 28,350 |
| 201,233 | ||
| Energy (2.7%) | ||
| Schlumberger Ltd. | 3,662,200 | 312,789 |
| EOG Resources Inc. | 3,245,000 | 298,767 |
| ^ Transocean Ltd. | 14,175,279 | 259,833 |
| Noble Energy Inc. | 3,640,000 | 172,645 |
| Exxon Mobil Corp. | 615,000 | 56,857 |
| National Oilwell Varco Inc. | 594,600 | 38,964 |
| * Cameron International Corp. | 627,500 | 31,344 |
| * Southwestern Energy Co. | 968,779 | 26,438 |
| Encana Corp. | 1,500,000 | 20,805 |
| Cabot Oil & Gas Corp. | 240,000 | 7,106 |
| Petroleo Brasileiro SA ADR Type A | 600,000 | 4,548 |
| Petroleo Brasileiro SA ADR | 400,000 | 2,920 |
| Noble Corp. plc | 100,000 | 1,657 |
| 1,234,673 | ||
| Financials (5.7%) | ||
| Charles Schwab Corp. | 26,103,992 | 788,079 |
| Marsh & McLennan Cos. Inc. | 11,681,100 | 668,626 |
| Wells Fargo & Co. | 8,115,900 | 444,914 |
| Chubb Corp. | 2,799,000 | 289,612 |
| CME Group Inc. | 2,427,000 | 215,154 |
| Progressive Corp. | 4,225,000 | 114,033 |
| US Bancorp | 1,060,000 | 47,647 |
| American Express Co. | 422,100 | 39,272 |
| Discover Financial Services | 531,100 | 34,782 |
| 2,642,119 | ||
| Health Care (29.2%) | ||
| * Biogen Idec Inc. | 9,973,695 | 3,385,571 |
| Amgen Inc. | 15,886,700 | 2,530,592 |
| Eli Lilly & Co. | 29,130,000 | 2,009,679 |
| Roche Holding AG | 5,872,200 | 1,591,027 |
| Novartis AG ADR | 12,568,965 | 1,164,640 |
| Medtronic Inc. | 10,004,152 | 722,300 |
| Johnson & Johnson | 6,324,469 | 661,350 |
| * Boston Scientific Corp. | 28,342,560 | 375,539 |
| Abbott Laboratories | 6,472,900 | 291,410 |
| Thermo Fisher Scientific Inc. | 1,968,600 | 246,646 |
| AbbVie Inc. | 2,914,800 | 190,744 |
| GlaxoSmithKline plc ADR | 3,200,400 | 136,785 |
| Sanofi ADR | 2,550,000 | 116,305 |
| Agilent Technologies Inc. | 880,500 | 36,048 |
| Stryker Corp. | 259,000 | 24,431 |
| Zimmer Holdings Inc. | 197,000 | 22,344 |
| 13,505,411 | ||
| Industrials (15.6%) | ||
| FedEx Corp. | 9,795,968 | 1,701,168 |
| 1 Southwest Airlines Co. | 34,559,300 | 1,462,550 |
| Honeywell International Inc. | 5,025,700 | 502,168 |
| Airbus Group NV | 9,123,900 | 451,068 |
| Union Pacific Corp. | 3,297,400 | 392,819 |
| Alaska Air Group Inc. | 6,218,326 | 371,607 |
| Caterpillar Inc. | 4,050,000 | 370,696 |
| * United Continental Holdings Inc. | 4,280,800 | 286,343 |
| CH Robinson Worldwide Inc. | 3,304,308 | 247,460 |
| United Parcel Service Inc. Class B | 2,181,070 | 242,469 |
| Boeing Co. | 1,475,000 | 191,720 |
| Delta Air Lines Inc. | 3,793,000 | 186,578 |
| Deere & Co. | 1,995,500 | 176,542 |
| American Airlines Group Inc. | 2,420,000 | 129,785 |
| United Technologies Corp. | 1,007,000 | 115,805 |
| Pentair plc | 1,469,000 | 97,571 |
| Rockwell Automation Inc. | 775,000 | 86,180 |
| Canadian Pacific Railway Ltd. | 385,800 | 74,340 |
| CSX Corp. | 1,390,000 | 50,360 |
| Safran SA | 592,000 | 36,523 |
| Expeditors International of Washington Inc. | 790,742 | 35,275 |
| Pall Corp. | 205,000 | 20,748 |
| Norfolk Southern Corp. | 46,100 | 5,053 |
| * Hertz Global Holdings Inc. | 140,000 | 3,492 |
| Republic Services Inc. Class A | 17,000 | 684 |
| 7,239,004 | ||
| Information Technology (30.7%) | ||
| Texas Instruments Inc. | 34,447,100 | 1,841,714 |
| Microsoft Corp. | 39,156,600 | 1,818,824 |
| * Adobe Systems Inc. | 23,310,070 | 1,694,642 |
| Hewlett-Packard Co. | 21,139,400 | 848,324 |
| * Google Inc. Class A | 1,419,843 | 753,454 |
| * Google Inc. Class C | 1,419,843 | 747,405 |
| * Micron Technology Inc. | 20,220,000 | 707,902 |
| Intuit Inc. | 7,390,300 | 681,312 |
| Intel Corp. | 17,810,500 | 646,343 |
| QUALCOMM Inc. | 8,154,050 | 606,091 |
| EMC Corp. | 16,872,800 | 501,797 |
| Oracle Corp. | 7,810,000 | 351,216 |
| Cisco Systems Inc. | 12,318,050 | 342,627 | ||
| KLA-Tencor Corp. | 4,668,100 | 328,261 | ||
| Telefonaktiebolaget LM Ericsson ADR | 25,764,626 | 311,752 | ||
| NVIDIA Corp. | 13,880,000 | 278,294 | ||
| Visa Inc. Class A | 1,046,720 | 274,450 | ||
| 1 | Plantronics Inc. | 3,701,500 | 196,253 | |
| * | Alibaba Group Holding Ltd. ADR | 1,849,000 | 192,185 | |
| NetApp Inc. | 4,440,000 | 184,038 | ||
| Analog Devices Inc. | 2,240,000 | 124,365 | ||
| Corning Inc. | 5,243,200 | 120,227 | ||
| *,^ BlackBerry Ltd. | 10,438,600 | 114,616 | ||
| Activision Blizzard Inc. | 5,470,000 | 110,220 | ||
| Broadcom Corp. Class A | 1,830,000 | 79,294 | ||
| Apple Inc. | 546,000 | 60,267 | ||
| * | eBay Inc. | 989,000 | 55,503 | |
| SanDisk Corp. | 500,000 | 48,990 | ||
| MasterCard Inc. Class A | 412,500 | 35,541 | ||
| * | Entegris Inc. | 2,583,472 | 34,128 | |
| Applied Materials Inc. | 970,000 | 24,172 | ||
| * | Rambus Inc. | 2,000,000 | 22,180 | |
| Altera Corp. | 500,000 | 18,470 | ||
| ASML Holding NV | 148,175 | 15,978 | ||
| * | F5 Networks Inc. | 97,400 | 12,707 | |
| * | Keysight Technologies Inc. | 340,292 | 11,492 | |
| Symantec Corp. | 400,000 | 10,262 | ||
| * | salesforce.com inc | 164,000 | 9,727 | |
| Motorola Solutions Inc. | 30,000 | 2,012 | ||
| 14,217,035 | ||||
| Materials (2.3%) | ||||
| Monsanto Co. | 6,270,125 | 749,092 | ||
| Potash Corp. of Saskatchewan Inc. | 5,699,900 | 201,320 | ||
| Praxair Inc. | 925,000 | 119,843 | ||
| EI du Pont de Nemours & Co. | 150,000 | 11,091 | ||
| Celanese Corp. Class A | 60,000 | 3,598 | ||
| LyondellBasell Industries NV Class A | 18,700 | 1,485 | ||
| 1,086,429 | ||||
| Total Common Stocks (Cost $19,224,498) | 44,177,061 | |||
| Coupon | ||||
| Temporary Cash Investment (5.2%) | ||||
| Money Market Fund (5.2%) | ||||
| 2,3 Vanguard Market Liquidity Fund (Cost | ||||
| $2,422,314) | 0.126% | 2,422,314,126 | 2,422,314 | |
| Total Investments (100.6%) (Cost $21,646,812) | 46,599,375 | |||
| Other Assets and Liabilities-Net (-0.6%)3 | (288,962) | |||
| Net Assets (100%) | 46,310,413 | |||
* Non-income-producing security.
^ Includes partial security positions on loan to broker-dealers. The total value of securities on loan is $73,276,000.
1 Considered an affiliated company of the fund as the fund owns more than 5% of the outstanding voting securities
of such company.
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.
3 Includes $79,332,000 of collateral received for securities on loan.
ADR—American Depositary Receipt.
PRIMECAP Fund
A. Security Valuation: Securities are valued as of the close of trading on the New York Stock Exchange (generally 4 p.m., Eastern time) on the valuation date. Equity securities are valued at the latest quoted sales prices or official closing prices taken from the primary market in which each security trades; such securities not traded on the valuation date are valued at the mean of the latest quoted bid and asked prices. Securities for which market quotations are not readily available, or whose values have been affected by events occurring before the fund's pricing time but after the close of the securities’ primary markets, are valued at their fair values calculated according to procedures adopted by the board of trustees. These procedures include obtaining quotations from an independent pricing service, monitoring news to identify significant market- or security-specific events, and evaluating changes in the values of foreign market proxies (for example, ADRs, futures contracts, or exchange-traded funds), between the time the foreign markets close and the fund's pricing time. When fair-value pricing is employed, the prices of securities used by a fund to calculate its net asset value may differ from quoted or published prices for the same securities. Investments in Vanguard Market Liquidity Fund are valued at that fund's net asset value.
B. Foreign Currency: Securities and other assets and liabilities denominated in foreign currencies are translated into U.S. dollars using exchange rates obtained from an independent third party as of the fund's pricing time on the valuation date. Realized gains (losses) and unrealized appreciation (depreciation) on investment securities include the effects of changes in exchange rates since the securities were purchased, combined with the effects of changes in security prices. Fluctuations in the value of other assets and liabilities resulting from changes in exchange rates are recorded as unrealized foreign currency gains (losses) until the assets or liabilities are settled in cash, at which time they are recorded as realized foreign currency gains (losses).
C. 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—Quoted prices in active markets for identical securities.
Level 2—Other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.).
Level 3—Significant unobservable inputs (including the fund's own assumptions used to determine the fair value of investments).
The following table summarizes the market value of the fund's investments as of December 31, 2014, based on the inputs used to value them:
| Level 1 | Level 2 | Level 3 | |
| Investments | ($000) | ($000) | ($000) |
| Common Stocks | 42,098,442 | 2,078,619 | — |
| Temporary Cash Investments | 2,422,314 | — | |
| Total | 44,520,756 | 2,078,619 | — |
D. Certain of the fund's investments are in companies that are considered to be affiliated companies of the fund because the fund owns more than 5% of the outstanding voting securities of the company. Transactions during the period in securities of these companies were as follows:
PRIMECAP Fund
| Current Period Transactions | ||||||
| Sept. 30, | Proceeds | Dec. 31, | ||||
| 2014 | from | Capital Gain | 2014 | |||
| Market | Purchases | Securities | Distributions | Market | ||
| Value | at Cost | Sold | Income | Received | Value | |
| ($000) | ($000) | ($000) | ($000) | ($000) | ($000) | |
| Plantronics Inc. | 176,858 | — | — | 555 | — | 196,253 |
| Southwest Airlines Co. | 1,167,068 | — | — | 2,074 | — | 1,462,550 |
| Vanguard Market Liquidity Fund | 1,831,829 | NA1 | NA1 | 88 | — | 2,422,314 |
| Total | 3,175,755 | 2,717 | — | 4,081,117 | ||
| 1 Not applicable—purchases and sales are for temporary cash investment purposes. | ||||||
E. At December 31, 2014, the cost of investment securities for tax purposes was $21,464,812,000. Net unrealized appreciation of investment securities for tax purposes was $24,952,563,000, consisting of unrealized gains of $25,919,238,000 on securities that had risen in value since their purchase and $966,675,000 in unrealized losses on securities that had fallen in value since their purchase.
Vanguard Target Retirement Income Fund
Schedule of Investments
As of December 31, 2014
| Market | ||
| Value | ||
| Shares | ($000) | |
| Investment Companies (100.3%) | ||
| U.S. Stock Fund (21.3%) | ||
| Vanguard Total Stock Market Index Fund Investor Shares | 47,036,279 | 2,426,131 |
| International Stock Fund (8.9%) | ||
| Vanguard Total International Stock Index Fund Investor Shares | 65,010,826 | 1,010,919 |
| U.S. Bond Funds (55.9%) | ||
| 1 Vanguard Total Bond Market II Index Fund Investor Shares | 410,673,974 | 4,451,706 |
| Vanguard Short-Term Inflation-Protected Securities Index Fund Investor Shares | 78,699,501 | 1,903,741 |
| 6,355,447 | ||
| International Bond Fund (14.2%) | ||
| Vanguard Total International Bond Index Fund Investor Shares | 152,108,407 | 1,613,870 |
| Total Investment Companies (Cost $9,988,466) | 11,406,367 | |
| Temporary Cash Investment (0.0%) | ||
| Money Market Fund (0.0%) | ||
| 1 Vanguard Market Liquidity Fund, 0.126% (Cost $3,625) | 3,625,241 | 3,625 |
| Total Investments (100.3%) (Cost $9,992,091) | 11,409,992 | |
| Other Assets and Liabilities-Net (-0.3%) | (31,081) | |
| Net Assets (100%) | 11,378,911 | |
| 1 Affiliated fund available only to Vanguard funds and certain trusts and accounts managed by Vanguard. Rate shown for Vanguard Market Liquidity Fund is the 7-day yield. | ||
A. Security Valuation: Securities are valued as of the close of trading on the New York Stock Exchange (generally 4 p.m., Eastern time) on the valuation date. Equity securities are valued at the latest quoted sales prices or official closing prices taken from the primary market in which each security trades; such securities not traded on the valuation date are valued at the mean of the latest quoted bid and asked prices. Securities for which market quotations are not readily available, or whose values have been materially affected by events occurring before the fund's pricing time but after the close of the securities’ primary markets, are valued by methods deemed by the board of trustees to represent fair value. Investments in Vanguard Market Liquidity Fund are valued at that fund's net asset value.
B. 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—Quoted prices in active markets for identical securities.
Level 2—Other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.).
Level 3—Significant unobservable inputs (including the fund's own assumptions used to determine the fair value of investments).
At December 31, 2014, 100% of the market value of the fund's investments was determined based on Level 1 inputs.
C. Transactions during the period in affiliated underlying Vanguard funds were as follows:
Target Retirement Income Fund
| Current Period Transactions | ||||||
| Proceeds | Dec. 31, | |||||
| Sept. 30, 2014 | from | Capital Gain | 2014 | |||
| Market | Purchases | Securities | Distributions | Market | ||
| Value | at Cost | Sold | Income | Received | Value | |
| ($000) | ($000) | ($000) | ($000) | ($000) | ($000) | |
| Vanguard Market Liquidity | ||||||
| Fund | 4,174 | NA1 | NA1 | — | — | 3,625 |
| Vanguard Short-Term | ||||||
| Inflation-Protected Securities | ||||||
| Index Fund | 1,886,096 | 75,559 | 15,317 | 13,435 | — | 1,903,741 |
| Vanguard Total Bond Market | ||||||
| II Index Fund | 4,422,906 | 155,512 | 168,335 | 24,990 | 10,206 | 4,451,706 |
| Vanguard Total International | ||||||
| Bond Index Fund | 1,572,397 | 30,983 | 21,300 | 7,409 | — | 1,613,870 |
| Vanguard Total International | ||||||
| Stock Index Fund | 984,712 | 75,151 | — | 8,126 | — | 1,010,919 |
| Vanguard Total Stock Market | ||||||
| Index Fund | 2,365,624 | 85,252 | 139,860 | 12,171 | — | 2,426,131 |
| Total | 11,235,909 | 422,457 | 344,812 | 66,131 | 10,206 | 11,409,992 |
| 1 Not applicable—purchases and sales are for temporary cash investment purposes. | ||||||
D. At December 31, 2014, the cost of investment securities for tax purposes was $9,992,091,000. Net unrealized appreciation of investment securities for tax purposes was $1,417,901,000, consisting of unrealized gains of $1,468,561,000 on securities that had risen in value since their purchase and $50,660,000 in unrealized losses on securities that had fallen in value since their purchase.
Vanguard Target Retirement 2010 Fund
Schedule of Investments
As of December 31, 2014
| Market | ||
| Value | ||
| Shares | ($000) | |
| Investment Companies (100.3%) | ||
| U.S. Stock Fund (25.6%) | ||
| Vanguard Total Stock Market Index Fund Investor Shares | 34,717,862 | 1,790,747 |
| International Stock Fund (10.9%) | ||
| Vanguard Total International Stock Index Fund Investor Shares | 49,207,750 | 765,181 |
| U.S. Bond Funds (51.1%) | ||
| 1 Vanguard Total Bond Market II Index Fund Investor Shares | 240,601,511 | 2,608,120 |
| Vanguard Short-Term Inflation-Protected Securities Index Fund Investor Shares | 40,177,475 | 971,893 |
| 3,580,013 | ||
| International Bond Fund (12.7%) | ||
| Vanguard Total International Bond Index Fund Investor Shares | 83,880,510 | 889,972 |
| Total Investment Companies (Cost $5,992,499) | 7,025,913 | |
| Money Market Fund (0.0%) | ||
| 1 Vanguard Market Liquidity Fund, 0.126% (Cost $2,815) | 2,814,594 | 2,815 |
| Total Investments (100.3%) (Cost $5,995,314) | 7,028,728 | |
| Other Assets and Liabilities-Net (-0.3%) | (18,023) | |
| Net Assets (100%) | 7,010,705 | |
| 1 Affiliated fund available only to Vanguard funds and certain trusts and accounts managed by Vanguard. Rate shown for Vanguard Market Liquidity Fund is the 7-day yield. | ||
A. Security Valuation: Securities are valued as of the close of trading on the New York Stock Exchange (generally 4 p.m., Eastern time) on the valuation date. Equity securities are valued at the latest quoted sales prices or official closing prices taken from the primary market in which each security trades; such securities not traded on the valuation date are valued at the mean of the latest quoted bid and asked prices. Securities for which market quotations are not readily available, or whose values have been materially affected by events occurring before the fund's pricing time but after the close of the securities’ primary markets, are valued by methods deemed by the board of trustees to represent fair value. Investments in Vanguard Market Liquidity Fund are valued at that fund's net asset value.
B. 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—Quoted prices in active markets for identical securities.
Level 2—Other significant observable inputs (including quoted prices for similar securities, interest
rates, prepayment speeds, credit risk, etc.).
Level 3—Significant unobservable inputs (including the fund's own assumptions used to determine the fair value of investments).
At December 31, 2014, 100% of the market value of the fund's investments was determined based on Level 1 inputs.
C. Transactions during the period in affiliated underlying Vanguard funds were as follows:
Target Retirement 2010 Fund
| Current Period Transactions | ||||||
| Proceeds | Dec. 31, | |||||
| Sept. 30, 2014 | from | Capital Gain | 2014 | |||
| Market | Purchases | Securities | Distributions | Market | ||
| Value | at Cost | Sold | Income | Received | Value | |
| ($000) | ($000) | ($000) | ($000) | ($000) | ($000) | |
| Vanguard Market Liquidity | ||||||
| Fund | — | NA1 | NA1 | — | — | 2,815 |
| Vanguard Short-Term | ||||||
| Inflation-Protected Securities | ||||||
| Index Fund | 949,948 | 65,067 | 21,574 | 6,759 | — | 971,893 |
| Vanguard Total Bond Market | ||||||
| II Index Fund | 2,539,701 | 143,456 | 99,217 | 14,534 | 5,918 | 2,608,120 |
| Vanguard Total International | ||||||
| Bond Index Fund | 874,983 | 6,819 | 9,483 | 4,115 | — | 889,972 |
| Vanguard Total International | ||||||
| Stock Index Fund | 751,381 | 50,980 | — | 6,150 | — | 765,181 |
| Vanguard Total Stock Market | ||||||
| Index Fund | 1,843,774 | 34,221 | 174,716 | 9,298 | — | 1,790,747 |
| Total | 6,959,787 | 300,543 | 304,990 | 40,856 | 5,918 | 7,028,728 |
| 1 Not applicable—purchases and sales are for temporary cash investment purposes. | ||||||
D. At December 31, 2014, the cost of investment securities for tax purposes was $5,995,314,000. Net unrealized appreciation of investment securities for tax purposes was $1,033,414,000, consisting of unrealized gains of $1,058,361,000 on securities that had risen in value since their purchase and $24,947,000 in unrealized losses on securities that had fallen in value since their purchase.
Vanguard Target Retirement 2015 Fund
Schedule of Investments
As of December 31, 2014
| Market | ||
| Value | ||
| Shares | ($000) | |
| Investment Companies (100.1%) | ||
| U.S. Stock Fund (35.9%) | ||
| Vanguard Total Stock Market Index Fund Investor Shares | 152,876,093 | 7,885,349 |
| International Stock Fund (15.1%) | ||
| Vanguard Total International Stock Index Fund Investor Shares | 212,556,438 | 3,305,252 |
| U.S. Bond Funds (39.2%) | ||
| 1 Vanguard Total Bond Market II Index Fund Investor Shares | 646,553,030 | 7,008,635 |
| Vanguard Short-Term Inflation-Protected Securities Index Fund Investor Shares | 66,449,973 | 1,607,425 |
| 8,616,060 | ||
| International Bond Fund (9.9%) | ||
| Vanguard Total International Bond Index Fund Investor Shares | 204,624,872 | 2,171,070 |
| Total Investment Companies (Cost $17,624,595) | 21,977,731 | |
| Temporary Cash Investment (0.0%) | ||
| Money Market Fund (0.0%) | ||
| 1 Vanguard Market Liquidity Fund, 0.126% (Cost $7,745) | 7,744,891 | 7,745 |
| Total Investments (100.1%) (Cost $17,632,340) | 21,985,476 | |
| Other Assets and Liabilities-Net (-0.1%) | (28,552) | |
| Net Assets (100%) | 21,956,924 | |
| 1 Affiliated fund available only to Vanguard funds and certain trusts and accounts managed by Vanguard. Rate shown for Vanguard Market Liquidity Fund is the 7-day yield. | ||
A. Security Valuation: Securities are valued as of the close of trading on the New York Stock Exchange (generally 4 p.m., Eastern time) on the valuation date. Equity securities are valued at the latest quoted sales prices or official closing prices taken from the primary market in which each security trades; such securities not traded on the valuation date are valued at the mean of the latest quoted bid and asked prices. Securities for which market quotations are not readily available, or whose values have been materially affected by events occurring before the fund's pricing time but after the close of the securities’ primary markets, are valued by methods deemed by the board of trustees to represent fair value. Investments in Vanguard Market Liquidity Fund are valued at that fund's net asset value.
B. 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—Quoted prices in active markets for identical securities.
Level 2—Other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.).
Level 3—Significant unobservable inputs (including the fund's own assumptions used to determine the fair value of investments).
At December 31, 2014, 100% of the market value of the fund's investments was determined based on Level 1 inputs.
C. Transactions during the period in affiliated underlying Vanguard funds were as follows:
Target Retirement 2015 Fund
| Current Period Transactions | ||||||
| Proceeds | Dec. 31, | |||||
| Sept. 30, 2014 | from | Capital Gain | 2014 | |||
| Market | Purchases | Securities | Distributions | Market | ||
| Value | at Cost | Sold | Income | Received | Value | |
| ($000) | ($000) | ($000) | ($000) | ($000) | ($000) | |
| Vanguard Market Liquidity | ||||||
| Fund | 27,597 | NA1 | NA1 | — | — | 7,745 |
| Vanguard Short-Term | ||||||
| Inflation-Protected Securities | ||||||
| Fund | 1,564,974 | 117,766 | 40,000 | 11,093 | — | 1,607,425 |
| Vanguard Total Bond Market | ||||||
| II Index Fund | 6,965,045 | 344,668 | 367,573 | 39,385 | 16,088 | 7,008,635 |
| Vanguard Total International | ||||||
| Bond Index Fund | 2,130,931 | 36,955 | 39,838 | 10,020 | — | 2,171,070 |
| Vanguard Total International | ||||||
| Stock Index Fund | 3,205,926 | 257,760 | — | 26,480 | — | 3,305,252 |
| Vanguard Total Stock Market | ||||||
| Index Fund | 7,879,758 | 196,531 | 560,729 | 39,698 | — | 7,885,349 |
| Total | 21,774,231 | 953,680 | 1,008,140 | 126,676 | 16,088 | 21,985,476 |
| 1 Not applicable—purchases and sales are for temporary cash investment purposes. | ||||||
D. At December 31, 2014, the cost of investment securities for tax purposes was $17,632,340,000. Net unrealized appreciation of investment securities for tax purposes was $4,353,136,000, consisting of unrealized gains of $4,392,976,000 on securities that had risen in value since their purchase and $39,840,000 in unrealized losses on securities that had fallen in value since their purchase.
Vanguard Target Retirement 2025 Fund
Schedule of Investments
As of December 31, 2014
| Market | ||
| Value | ||
| Shares | ($000) | |
| Investment Companies (100.0%) | ||
| U.S. Stock Fund (47.8%) | ||
| Vanguard Total Stock Market Index Fund Investor Shares | 299,749,842 | 15,461,097 |
| International Stock Fund (20.2%) | ||
| Vanguard Total International Stock Index Fund Investor Shares | 420,158,743 | 6,533,468 |
| U.S. Bond Fund (25.7%) | ||
| 1 Vanguard Total Bond Market II Index Fund Investor Shares | 765,101,344 | 8,293,699 |
| International Bond Fund (6.3%) | ||
| Vanguard Total International Bond Index Fund Investor Shares | 192,898,328 | 2,046,651 |
| Total Investment Companies (Cost $25,053,812) | 32,334,915 | |
| Temporary Cash Investment (0.1%) | ||
| Money Market Fund (0.1%) | ||
| 1 Vanguard Market Liquidity Fund, 0.126% (Cost $22,812) | 22,812,146 | 22,812 |
| Total Investments (100.1%) (Cost $25,076,624) | 32,357,727 | |
| Other Assets and Liabilities-Net (-0.1%) | (39,380) | |
| Net Assets (100%) | 32,318,347 | |
| 1 Affiliated fund available only to Vanguard funds and certain trusts and accounts managed by Vanguard. Rate shown for Vanguard Market Liquidity Fund is the 7-day yield. | ||
A. Security Valuation: Investments are valued at the net asset value of each underlying Vanguard fund determined as of the close of the New York Stock Exchange (generally 4 p.m., Eastern time) on the valuation date.
B. 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—Quoted prices in active markets for identical securities.
Level 2—Other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.).
Level 3—Significant unobservable inputs (including the fund's own assumptions used to determine the fair value of investments).
At December 31, 2014, 100% of the market value of the fund's investments was determined based on Level 1 inputs.
C. Transactions during the period in affiliated underlying Vanguard funds were as follows:
Target Retirement 2025 Fund
| Current Period Transactions | ||||||
| Sept. 30, | Proceeds | Dec. 31, | ||||
| 2014 | from | Capital Gain | 2014 | |||
| Market | Purchases | Securities | Dividend | Distributions | Market | |
| Value | at Cost | Sold | Income | Received | Value | |
| ($000) | ($000) | ($000) | ($000) | ($000) | ($000) | |
| Vanguard Market Liquidity Fund | 7,412 | NA1 | NA1 | 3 | — | 22,812 |
| Vanguard Total Bond Market II | 8,028,026 | 802,370 | 613,832 | 45,881 | 18,707 | 8,293,699 |
| Index Fund | ||||||
| Vanguard Total International Bond | 1,995,205 | 74,301 | 63,322 | 9,417 | — | 2,046,651 |
| Index Fund | ||||||
| Vanguard Total International Stock | 6,272,198 | 583,211 | __ | 52,222 | — | 6,533,468 |
| Index Fund | ||||||
| Vanguard Total Stock Market Index | 15,113,492 | 462,806 | 837,705 | 77,617 | — | 15,461,097 |
| Fund | ||||||
| Total | 31,416,333 | 1,922,688 | 1,514,859 | 185,140 | 18,707 | 32,357,727 |
| 1 Not applicable — purchases and sales are for temporary cash investment purposes. | ||||||
D. At December 31, 2014, the cost of investment securities for tax purposes was $25,075,624,000. Net unrealized appreciation of investment securities for tax purposes was $7,281,103,000, consisting entirely of unrealized gains on securities that had risen in value since their purchase.
Vanguard Target Retirement 2020 Fund
Schedule of Investments
As of December 31, 2014
| Market | ||
| Value | ||
| Shares | ($000) | |
| Investment Companies (100.0%) | ||
| U.S. Stock Fund (42.5%) | ||
| Vanguard Total Stock Market Index Fund Investor Shares | 234,916,995 | 12,117,019 |
| International Stock Fund (18.0%) | ||
| Vanguard Total International Stock Index Fund Investor Shares | 330,080,494 | 5,132,752 |
| U.S. Bond Fund (31.7%) | ||
| 1 Vanguard Total Bond Market II Index Fund Investor Shares | 833,888,052 | 9,039,346 |
| International Bond Fund (7.8%) | ||
| Vanguard Total International Bond Index Fund Investor Shares | 210,775,708 | 2,236,330 |
| Total Investment Companies (Cost $23,105,450) | 28,525,447 | |
| Temporary Cash Investment (0.1%) | ||
| Money Market Fund (0.1%) | ||
| 1 Vanguard Market Liquidity Fund, 0.126% (Cost $19,913) | 19,912,692 | 19,913 |
| Total Investments (100.1%) (Cost $23,125,363) | 28,545,360 | |
| Other Assets and Liabilities-Net (-0.1%) | (20,751) | |
| Net Assets (100%) | 28,524,609 | |
1 Affiliated fund available only to Vanguard funds and certain trusts and accounts managed by Vanguard. Rate shown for Vanguard Market Liquidity Fund is the 7-day yield.
A. Security Valuation: Investments are valued at the net asset value of each underlying Vanguard fund determined as of the close of the New York Stock Exchange (generally 4 p.m., Eastern time) on the valuation date.
B. 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—Quoted prices in active markets for identical securities.
Level 2—Other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.).
Level 3—Significant unobservable inputs (including the fund's own assumptions used to determine the fair value of investments).
At December 31, 2014, 100% of the market value of the fund's investments was determined based on Level 1 inputs.
C. At December 31, 2014, the cost of investment securities for tax purposes was $23,125,363,000.
Net unrealized appreciation of investment securities for tax purposes was $5,419,997,000, consisting
entirely of unrealized gains on securities that had risen in value since their purchase.
D. Transactions during the period in affiliated underlying Vanguard funds were as follows:
Target Retirement 2020 Fund
| Current Period Transactions | ||||||
| Sept. 30, | Proceeds | Dec. 31, | ||||
| 2014 | from | Capital Gain | 2014 | |||
| Market | Purchases | Securities | Distributions | Market | ||
| Value | at Cost | Sold | Income | Received | Value | |
| ($000) | ($000) | ($000) | ($000) | ($000) | ($000) | |
| Vanguard Market Liquidity Fund | 12,218 | NA1 | NA1 | — | — | 19,913 |
| Vanguard Total Bond Market II Index | ||||||
| Fund | 8,633,402 | 865,981 | 543,360 | 49,903 | 20,442 | 9,039,346 |
| Vanguard Total International Bond | ||||||
| Index Fund | 2,156,344 | 78,781 | 42,789 | 10,245 | — | 2,236,330 |
| Vanguard Total International Stock | ||||||
| Index Fund | 4,855,061 | 526,120 | — | 40,963 | — | 5,132,752 |
| Vanguard Total Stock Market Index | ||||||
| Fund | 11,817,952 | 335,856 | 598,808 | 61,239 | — | 12,117,019 |
| Total | 27,474,977 | 1,806,738 | 1,184,957 | 162,350 | 20,442 | 28,545,360 |
| 1 Not applicable—purchases and sales are for temporary cash investment purposes. | ||||||
Vanguard Target Retirement 2030 Fund
Schedule of Investments
As of December 31, 2014
| Market | ||
| Value | ||
| Shares | ($000) | |
| Investment Companies (100.1%) | ||
| U.S. Stock Fund (52.8%) | ||
| Vanguard Total Stock Market Index Fund Investor Shares | 243,939,142 | 12,582,381 |
| International Stock Fund (22.5%) | ||
| Vanguard Total International Stock Index Fund Investor Shares | 344,747,958 | 5,360,831 |
| U.S. Bond Fund (19.9%) | ||
| 1 Vanguard Total Bond Market II Index Fund Investor Shares | 437,667,886 | 4,744,320 |
| International Bond Fund (4.9%) | ||
| Vanguard Total International Bond Index Fund Investor Shares | 108,674,459 | 1,153,036 |
| Total Investment Companies (Cost $18,608,904) | 23,840,568 | |
| Temporary Cash Investment (0.1%) | ||
| Money Market Fund (0.1%) | ||
| 1 Vanguard Market Liquidity Fund, 0.126% (Cost $20,738) | 20,738,000 | 20,738 |
| Total Investments (100.2%) (Cost $18,629,642) | 23,861,306 | |
| Other Assets and Liabilities-Net (-0.2%) | (37,302) | |
| Net Assets (100%) | 23,824,004 | |
| 1 Affiliated fund available only to Vanguard funds and certain trusts and accounts managed by Vanguard. Rate shown for Vanguard Market Liquidity Fund is the 7-day yield. | ||
A. Security Valuation: Investments are valued at the net asset value of each underlying Vanguard fund determined as of the close of the New York Stock Exchange (generally 4 p.m., Eastern time) on the valuation date.
B. 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—Quoted prices in active markets for identical securities.
Level 2—Other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.).
Level 3—Significant unobservable inputs (including the fund's own assumptions used to determine the fair value of investments).
At December 31, 2014, 100% of the market value of the fund's investments was determined based on Level 1 inputs.
C. At December 31, 2014, the cost of investment securities for tax purposes was $18,629,642,000. Net unrealized appreciation of investment securities for tax purposes was $5,231,664,000, consisting entirely of unrealized gains on securities that had risen in value since their purchase.
D. Transactions during the period in affiliated underlying Vanguard funds were as follows:
Target Retirement 2030 Fund
| Current Period Transactions | |||||
| Sept. 30, | |||||
| 2014 | Capital Gain | Dec. 31, 2014 | |||
| Market | Purchases | Proceeds from | Distributions | Market | |
| Value | at Cost | Securities Sold Income | Received | Value | |
| ($000) | ($000) | ($000) ($000) | ($000) | ($000) | |
| Vanguard Market Liquidity Fund | 6,481 | NA1 | NA1 — | 3 | 20,738 |
| Vanguard Total Bond Market II Index | |||||
| Fund | 4,502,744 | 596,608 | 398,711 25,963 | 10,547 | 4,744,320 |
| Vanguard Total International Bond Index | |||||
| Fund | 1,119,160 | 30,386 | 19,161 5,278 | — | 1,153,036 |
| Vanguard Total International Stock Index | |||||
| Fund | 5,149,989 | 476,814 | — 42,844 | — | 5,360,831 |
| Vanguard Total Stock Market Index Fund 12,292,549 | 401,923 | 700,159 63,608 | — | 12,582,381 | |
| Total | 23,070,923 | 1,505,731 | 1,118,031 137,693 | 10,550 | 23,861,306 |
| 1 Not applicable—purchases and sales are for temporary cash investment purposes. | |||||
Vanguard Target Retirement 2035 Fund
Schedule of Investments
As of December 31, 2014
| Market | ||
| Value | ||
| Shares | ($000) | |
| Investment Companies (100.0%) | ||
| U.S. Stock Fund (58.3%) | ||
| Vanguard Total Stock Market Index Fund Investor Shares | 276,904,543 | 14,282,736 |
| International Stock Fund (24.7%) | ||
| Vanguard Total International Stock Index Fund Investor Shares | 388,975,744 | 6,048,573 |
| U.S. Bond Fund (13.7%) | ||
| 1 Vanguard Total Bond Market II Index Fund Investor Shares | 311,167,028 | 3,373,051 |
| International Bond Fund (3.3%) | ||
| Vanguard Total International Bond Index Fund Investor Shares | 77,171,580 | 818,790 |
| Total Investment Companies (Cost $18,306,430) | 24,523,150 | |
| Temporary Cash Investment (0.1%) | ||
| Money Market Fund (0.1%) | ||
| 1 Vanguard Market Liquidity Fund, 0.126% (Cost $13,064) | 13,063,892 | 13,064 |
| Total Investments (100.1%) (Cost $18,319,494) | 24,536,214 | |
| Other Assets and Liabilities-Net (-0.1%) | (22,140) | |
| Net Assets (100%) | 24,514,074 | |
| 1 Affiliated fund available only to Vanguard funds and certain trusts and accounts managed by Vanguard. Rate shown for Vanguard Market Liquidity Fund is the 7-day yield. | ||
A. Security Valuation: Investments are valued at the net asset value of each underlying Vanguard fund determined as of the close of the New York Stock Exchange (generally 4 p.m., Eastern time) on the valuation date.
B. 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—Quoted prices in active markets for identical securities.
Level 2—Other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.).
Level 3—Significant unobservable inputs (including the fund's own assumptions used to determine the fair value of investments).
At December 31, 2014, 100% of the market value of the fund's investments was determined based on Level 1 inputs.
C. Transactions during the period in affiliated underlying Vanguard funds were as follows:
Target Retirement 2035 Fund
| Current Period Transactions | ||||||
| Sept. 30, | Proceeds | Dec. 31, | ||||
| 2014 | from | Capital Gain | 2014 | |||
| Market | Purchases | Securities | Dividend | Distributions | Market | |
| Value | at Cost | Sold | Income | Received | Value | |
| ($000) | ($000) | ($000) | ($000) | ($000) | ($000) | |
| Vanguard Market Liquidity Fund | 9,365 | NA1 | NA1 | 3 | — | 13,064 |
| Vanguard Total Bond Market II | 3,195,065 | 474,870 | 328,095 | 18,410 | 7,485 | 3,373,051 |
| Index Fund | ||||||
| Vanguard Total International Bond | 798,045 | 40,840 | 36,200 | 3,749 | — | 818,790 |
| Index Fund | ||||||
| Vanguard Total International Stock | 5,876,679 | 470,590 | — | 48,388 | — | 6,048,573 |
| Index Fund | ||||||
| Vanguard Total Stock Market Index | 13,938,024 | 332,866 | 646,972 | 71,639 | — | 14,282,736 |
| Fund | ||||||
| Total | 23,817,178 | 1,319,166 | 1,011,267 | 142,189 | 7,485 | 24,536,214 |
| 1 Not applicable — purchases and sales are for temporary cash investment purposes. | ||||||
D. At December 31, 2014, the cost of investment securities for tax purposes was $18,319,494,000. Net unrealized appreciation of investment securities for tax purposes was $6,216,720,000, consisting entirely of unrealized gains on securities that had risen in value since their purchase.
Vanguard Target Retirement 2040 Fund
Schedule of Investments
As of December 31, 2014
| Market | ||
| Value | ||
| Shares | ($000) | |
| Investment Companies (100.0%) | ||
| U.S. Stock Fund (62.7%) | ||
| Vanguard Total Stock Market Index Fund Investor Shares | 200,581,213 | 10,345,979 |
| International Stock Fund (27.2%) | ||
| Vanguard Total International Stock Index Fund Investor Shares | 288,191,626 | 4,481,380 |
| U.S. Bond Fund (8.1%) | ||
| 1 Vanguard Total Bond Market II Index Fund Investor Shares | 123,480,248 | 1,338,526 |
| International Bond Fund (2.0%) | ||
| Vanguard Total International Bond Index Fund Investor Shares | 31,015,313 | 329,073 |
| Total Investment Companies (Cost $12,567,986) | 16,494,958 | |
| Temporary Cash Investment (0.1%) | ||
| Money Market Fund (0.1%) | ||
| 1 Vanguard Market Liquidity Fund, 0.126% (Cost $11,056) | 11,056,375 | 11,056 |
| Total Investments (100.1%) (Cost $12,579,042) | 16,506,014 | |
| Other Assets and Liabilities-Net (-0.1%) | (24,199) | |
| Net Assets (100%) | 16,481,815 | |
| 1 Affiliated fund available only to Vanguard funds and certain trusts and accounts managed by Vanguard. Rate shown for Vanguard Market Liquidity Fund is the 7-day yield. | ||
A. Security Valuation: Investments are valued at the net asset value of each underlying Vanguard fund determined as of the close of the New York Stock Exchange (generally 4 p.m., Eastern time) on the valuation date.
B. 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—Quoted prices in active markets for identical securities.
Level 2—Other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.).
Level 3—Significant unobservable inputs (including the fund's own assumptions used to determine the fair value of investments).
At December 31, 2014, 100% of the market value of the fund's investments was determined based on Level 1 inputs.
C. Transactions during the period in affiliated underlying Vanguard funds were as follows:
Target Retirement 2040 Fund
| Current Period Transactions | ||||||
| Sept. 30, | Proceeds | Dec. 31, | ||||
| 2014 | from | Capital Gain | 2014 | |||
| Market | Purchases | Securities | Dividend | Distributions | Market | |
| Value | at Cost | Sold | Income | Received | Value | |
| ($000) | ($000) | ($000) | ($000) | ($000) | ($000) | |
| Vanguard Market Liquidity Fund | 10,023 | NA1 | NA1 | 2 | — | 11,056 |
| Vanguard Total Bond Market II | 1,274,711 | 165,091 | 113,706 | 7,436 | 3,014 | 1,338,526 |
| Index Fund | ||||||
| Vanguard Total International Bond | 318,470 | 20,501 | 16,345 | 1,500 | — | 329,073 |
| Index Fund | ||||||
| Vanguard Total International Stock | 4,262,284 | 490,059 | 50,000 | 35,363 | — | 4,481,380 |
| Index Fund | ||||||
| Vanguard Total Stock Market Index | 10,056,868 | 245,024 | 427,570 | 52,132 | — | 10,345,979 |
| Fund | ||||||
| Total | 15,922,356 | 920,675 | 607,621 | 96,433 | 3,014 | 16,506,014 |
| 1 Not applicable — purchases and sales are for temporary cash investment purposes. | ||||||
D. At December 31, 2014, the cost of investment securities for tax purposes was $12,579,042,000. Net unrealized appreciation of investment securities for tax purposes was $3,926,972,000, consisting entirely of unrealized gains on securities that had risen in value since their purchase.
Vanguard Target Retirement 2045 Fund
Schedule of Investments
As of December 31, 2014
| Market | ||
| Value | ||
| Shares | ($000) | |
| Investment Companies (100.1%) | ||
| U.S. Stock Fund (63.0%) | ||
| Vanguard Total Stock Market Index Fund Investor Shares | 183,714,906 | 9,476,015 |
| International Stock Fund (27.0%) | ||
| Vanguard Total International Stock Index Fund Investor Shares | 260,900,843 | 4,057,008 |
| U.S. Bond Fund (8.1%) | ||
| 1 Vanguard Total Bond Market II Index Fund Investor Shares | 112,444,587 | 1,218,899 |
| International Bond Fund (2.0%) | ||
| Vanguard Total International Bond Index Fund Investor Shares | 28,201,748 | 299,220 |
| Total Investment Companies (Cost $11,229,116) | 15,051,142 | |
| Temporary Cash Investment (0.1%) | ||
| Money Market Fund (0.1%) | ||
| 1 Vanguard Market Liquidity Fund, 0.126% (Cost $11,506) | 11,505,623 | 11,506 |
| Total Investments (100.2%) (Cost $11,240,622) | 15,062,648 | |
| Other Assets and Liabilities-Net (-0.2%) | (26,835) | |
| Net Assets (100%) | 15,035,813 | |
| 1 Affiliated fund available only to Vanguard funds and certain trusts and accounts managed by Vanguard. Rate shown for Vanguard Market Liquidity Fund is the 7-day yield. | ||
A. Security Valuation: Investments are valued at the net asset value of each underlying Vanguard fund determined as of the close of the New York Stock Exchange (generally 4 p.m., Eastern time) on the valuation date.
B. 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—Quoted prices in active markets for identical securities.
Level 2—Other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.).
Level 3—Significant unobservable inputs (including the fund's own assumptions used to determine the fair value of investments).
At December 31, 2014, 100% of the market value of the fund's investments was determined based on Level 1 inputs.
C. Transactions during the period in affiliated underlying Vanguard funds were as follows:
Target Retirement 2045 Fund
| Current Period Transactions | ||||||
| Sept. 30, | Proceeds | Dec. 31, | ||||
| 2014 | from | Capital Gain | 2014 | |||
| Market | Purchases | Securities | Dividend | Distributions | Market | |
| Value | at Cost | Sold | Income | Received | Value | |
| ($000) | ($000) | ($000) | ($000) | ($000) | ($000) | |
| Vanguard Market Liquidity Fund | 8,935 | NA1 | NA1 | 2 | — | 11,506 |
| Vanguard Total Bond Market II | 1,160,867 | 141,503 | 94,575 | 6,761 | 2,737 | 1,218,899 |
| Index Fund | ||||||
| Vanguard Total International Bond | 289,934 | 31,043 | 27,641 | 1,367 | — | 299,220 |
| Index Fund | ||||||
| Vanguard Total International Stock | 3,881,078 | 426,886 | 50,000 | 32,076 | — | 4,057,008 |
| Index Fund | ||||||
| Vanguard Total Stock Market Index | 9,155,174 | 164,398 | 272,718 | 47,297 | — | 9,476,015 |
| Fund | ||||||
| Total | 14,495,988 | 763,830 | 444,934 | 87,503 | 2,737 | 15,062,648 |
| 1 Not applicable — purchases and sales are for temporary cash investment purposes. | ||||||
D. At December 31, 2014, the cost of investment securities for tax purposes was $11,240,622,000. Net unrealized appreciation of investment securities for tax purposes was $3,822,026,000, consisting entirely of unrealized gains on securities that had risen in value since their purchase.
Vanguard Target Retirement 2050 Fund
Schedule of Investments
As of December 31, 2014
| Market | ||
| Value | ||
| Shares | ($000) | |
| Investment Companies (100.3%) | ||
| U.S. Stock Fund (62.9%) | ||
| Vanguard Total Stock Market Index Fund Investor Shares | 93,682,928 | 4,832,165 |
| International Stock Fund (27.3%) | ||
| Vanguard Total International Stock Index Fund Investor Shares | 135,125,528 | 2,101,202 |
| U.S. Bond Fund (8.1%) | ||
| 1 Vanguard Total Bond Market II Index Fund Investor Shares | 57,550,745 | 623,850 |
| International Bond Fund (2.0%) | ||
| Vanguard Total International Bond Index Fund Investor Shares | 14,482,750 | 153,662 |
| Total Investment Companies (Cost $5,971,526) | 7,710,879 | |
| Temporary Cash Investment (0.1%) | ||
| Money Market Fund (0.1%) | ||
| 1 Vanguard Market Liquidity Fund, 0.126% (Cost $6,154) | 6,153,664 | 6,154 |
| Total Investments (100.4%) (Cost $5,977,680) | 7,717,033 | |
| Other Assets and Liabilities-Net (-0.4%) | (34,206) | |
| Net Assets (100%) | 7,682,827 | |
| 1 Affiliated fund available only to Vanguard funds and certain trusts and accounts managed by Vanguard. Rate shown for Vanguard Market Liquidity Fund is the 7-day yield. | ||
A. Security Valuation: Investments are valued at the net asset value of each underlying Vanguard fund determined as of the close of the New York Stock Exchange (generally 4 p.m., Eastern time) on the valuation date.
B. 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—Quoted prices in active markets for identical securities.
Level 2—Other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.).
Level 3—Significant unobservable inputs (including the fund's own assumptions used to determine the fair value of investments).
At December 31, 2014, 100% of the market value of the fund's investments was determined based on Level 1 inputs.
C. At December 31, 2014, the cost of investment securities for tax purposes was $5,977,680,000. Net unrealized appreciation of investment securities for tax purposes was $1,739,353,000, consisting entirely of unrealized gains on securities that had risen in value since their purchase.
D. Transactions during the period in affiliated underlying Vanguard funds were as follows:
Target Retirement 2050 Fund
| Current Period Transactions | ||||||
| Sept. 30, | Proceeds | |||||
| 2014 | from | Capital Gain | Dec. 31, 2014 | |||
| Market | Purchases | Securities | Distributions | Market | ||
| Value | at Cost | Sold | Income | Received | Value | |
| ($000) | ($000) | ($000) | ($000) | ($000) | ($000) | |
| Vanguard Market Liquidity Fund | 5,041 | NA1 | NA1 | 2 | — | 6,154 |
| Vanguard Total Bond Market II Index | ||||||
| Fund | 599,028 | 96,272 | 77,327 | 3,475 | 1,411 | 623,850 |
| Vanguard Total International Bond | ||||||
| Index Fund | 147,582 | 21,183 | 18,120 | 700 | — | 153,662 |
| Vanguard Total International Stock | ||||||
| Index Fund | 1,990,809 | 230,956 | 16,629 | 16,571 | — | 2,101,202 |
| Vanguard Total Stock Market Index | ||||||
| Fund | 4,653,479 | 180,341 | 222,412 | 24,342 | — | 4,832,165 |
| Total | 7,395,939 | 528,752 | 334,488 | 45,090 | 1,411 | 7,717,033 |
| 1 Not applicable—purchases and sales are for temporary cash investment purposes. | ||||||
Vanguard Target Retirement 2055 Fund
Schedule of Investments
As of December 31, 2014
| Market | ||
| Value | ||
| Shares | ($000) | |
| Investment Companies (100.0%) | ||
| U.S. Stock Fund (62.8%) | ||
| Vanguard Total Stock Market Index Fund Investor Shares | 22,815,100 | 1,176,803 |
| International Stock Fund (27.2%) | ||
| Vanguard Total International Stock Index Fund Investor Shares | 32,741,644 | 509,133 |
| U.S. Bond Fund (8.1%) | ||
| 1 Vanguard Total Bond Market II Index Fund Investor Shares | 14,057,876 | 152,387 |
| International Bond Fund (1.9%) | ||
| Vanguard Total International Bond Index Fund Investor Shares | 3,402,726 | 36,103 |
| Total Investment Companies (Cost $1,623,996) | 1,874,426 | |
| Temporary Cash Investment (0.2%) | ||
| Money Market Fund (0.2%) | ||
| 1 Vanguard Market Liquidity Fund, 0.126% (Cost $3,974) | 3,973,897 | 3,974 |
| Total Investments (100.2%) (Cost $1,627,970) | 1,878,400 | |
| Other Assets and Liabilities-Net (-0.2%) | (3,356) | |
| Net Assets (100%) | 1,875,044 | |
| 1 Affiliated fund available only to Vanguard funds and certain trusts and accounts managed by Vanguard. Rate shown for Vanguard Market Liquidity Fund is the 7-day yield. | ||
A. Security Valuation: Investments are valued at the net asset value of each underlying Vanguard fund determined as of the close of the New York Stock Exchange (generally 4 p.m., Eastern time) on the valuation date.
B. 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—Quoted prices in active markets for identical securities.
Level 2—Other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.).
Level 3—Significant unobservable inputs (including the fund's own assumptions used to determine the fair value of investments).
At December 31, 2014, 100% of the market value of the fund's investments was determined based on Level 1 inputs.
C. Transactions during the period in affiliated underlying Vanguard funds were as follows:
Target Retirement 2055 Fund
| Current Period Transactions | ||||||
| Sept. 30 | Proceeds | Dec. 31, | ||||
| 2014 | from | Capital Gain | 2014 | |||
| Market | Purchases | Securities | Dividend Distributions | Market | ||
| Value | at Cost | Sold | Income | Received | Value | |
| ($000) | ($000) | ($000) | ($000) | ($000) | ($000) | |
| Vanguard Market Liquidity Fund | 2,341 | NA1 | NA1 | 1 | — | 3,974 |
| Vanguard Total Bond Market II | 133,540 | 33,196 | 15,674 | 810 | 335 | 152,387 |
| Index Fund | ||||||
| Vanguard Total International Bond | 33,353 | 2,048 | — | 164 | — | 36,103 |
| Index Fund | ||||||
| Vanguard Total International Stock | 450,284 | 92,010 | 9,000 | 3,947 | — | 509,133 |
| Index Fund | ||||||
| Vanguard Total Stock Market Index | 1,049,374 | 109,463 | 33,519 | 5,797 | — | 1,176,803 |
| Fund | ||||||
| Total | 1,668,892 | 236,717 | 58,193 | 10,719 | 335 | 1,878,400 |
| 1 Not applicable — purchases and sales are for temporary cash investment purposes. | ||||||
D. At December 31, 2014, the cost of investment securities for tax purposes was $1,627,970,000. Net unrealized appreciation of investment securities for tax purposes was $250,430,000, consisting of unrealized gains of $254,910,000 on securities that had risen in value since their purchase and $4,480,000 in unrealized losses on securities that had fallen in value since their purchase.
Vanguard Target Retirement 2060 Fund
Schedule of Investments
As of December 31, 2014
| Market | ||
| Value | ||
| Shares | ($000) | |
| Investment Companies (100.0%) | ||
| U.S. Stock Fund (62.8%) | ||
| Vanguard Total Stock Market Index Fund Investor Shares | 6,793,594 | 350,414 |
| International Stock Fund (27.1%) | ||
| Vanguard Total International Stock Index Fund Investor Shares | 9,715,206 | 151,071 |
| U.S. Bond Fund (8.2%) | ||
| 1 Vanguard Total Bond Market II Index Fund Investor Shares | 4,231,783 | 45,873 |
| International Bond Fund (1.9%) | ||
| Vanguard Total International Bond Index Fund Investor Shares | 999,278 | 10,602 |
| Total Investment Companies (Cost $504,667) | 557,960 | |
| Temporary Cash Investment (0.1%) | ||
| Money Market Fund (0.1%) | ||
| 1 Vanguard Market Liquidity Fund, 0.126% (Cost $729) | 728,810 | 729 |
| Total Investments (100.1%) (Cost $505,396) | 558,689 | |
| Other Assets and Liabilities-Net (-0.1%) | (657) | |
| Net Assets (100%) | 558,032 | |
| 1 Affiliated fund available only to Vanguard funds and certain trusts and accounts managed by Vanguard. Rate shown for Vanguard Market Liquidity Fund is the 7-day yield. | ||
A. Security Valuation: Investments are valued at the net asset value of each underlying Vanguard fund determined as of the close of the New York Stock Exchange (generally 4 p.m., Eastern time) on the valuation date.
B. 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—Quoted prices in active markets for identical securities.
Level 2—Other significant observable inputs (including quoted prices for similar securities, interest
rates, prepayment speeds, credit risk, etc.).
Level 3—Significant unobservable inputs (including the fund's own assumptions used to determine
the fair value of investments).
At December 31, 2014, 100% of the market value of the fund's investments was determined based on Level 1 inputs.
C. Transactions during the period in affiliated underlying Vanguard funds were as follows:
Target Retirement 2060 Fund
| Current Period Transactions | ||||||
| Proceeds | Dec. 31, | |||||
| Sept. 30, 2014 | from | Capital Gain | 2014 | |||
| Market | Purchases | Securities | Distributions | Market | ||
| Value | at Cost | Sold | Income | Received | Value | |
| ($000) | ($000) | ($000) | ($000) | ($000) | ($000) | |
| Vanguard Market Liquidity | ||||||
| Fund | 437 | NA1 | NA1 | — | — | 729 |
| Vanguard Total Bond Market | ||||||
| II Index Fund | 39,012 | 8,787 | 2,304 | 239 | 100 | 45,873 |
| Vanguard Total International | ||||||
| Bond Index Fund | 9,579 | 818 | — | 48 | — | 10,602 |
| Vanguard Total International | ||||||
| Stock Index Fund | 131,101 | 28,244 | 1,231 | 1,177 | — | 151,071 |
| Vanguard Total Stock Market | ||||||
| Index Fund | 305,530 | 37,264 | 7,692 | 1,729 | — | 350,414 |
| Total | 485,659 | 75,113 | 11,227 | 3,193 | 100 | 558,689 |
| 1 Not applicable—purchases and sales are for temporary cash investment purposes. | ||||||
D. At December 31, 2014, the cost of investment securities for tax purposes was $505,396,000. Net unrealized appreciation of investment securities for tax purposes was $53,293,000, consisting of unrealized gains of $57,386,000 on securities that had risen in value since their purchase and $4,093,000 in unrealized losses on securities that had fallen in value since their purchase.
Item 2: 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. During the last fiscal quarter, there was no significant change in the Registrant’s internal control over financial reporting that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting.
Item 3: Exhibits
(a) Certifications
| VANGUARD CHESTER FUNDS | |
| By: | /s/ F. WILLIAM MCNABB III* |
| F. WILLIAM MCNABB III | |
| CHIEF EXECUTIVE OFFICER | |
| Date: February 18, 2015 | |
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 CHESTER FUNDS | |
|
By: |
/s/ F. WILLIAM MCNABB III* |
| F. WILLIAM MCNABB III | |
| CHIEF EXECUTIVE OFFICER | |
|
Date: February 18, 2015 |
|
|
|
VANGUARD CHESTER FUNDS |
|
By: |
/s/ THOMAS J. HIGGINS* |
| THOMAS J. HIGGINS | |
| CHIEF EXECUTIVE OFFICER | |
| Date: February 18, 2015 |
* By:/s/ Heidi Stam
Heidi Stam, pursuant to a Power of Attorney filed on April 22, 2014 see file Number 2-17620, Incorporated by Reference.
I, F. William McNabb III, certify that:
1. I have reviewed this report on Form N-Q of Vanguard Chester 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 schedules of investments included in this report fairly present in all material respects the investments of the registrant as of the end of the fiscal quarter for which the report is filed;
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 registrant’s most recent fiscal quarter 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: February 18, 2015 |
/s/ F. William McNabb III |
|
|
F. William McNabb III |
|
|
Chief Executive Officer |
I, Thomas J. Higgins, certify that:
1. I have reviewed this report on Form N-Q of Vanguard Chester 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 schedules of investments included in this report fairly present in all material respects the investments of the registrant as of the end of the fiscal quarter for which the report is filed;
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 registrant’s most recent fiscal quarter 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: February 18, 2015 |
/s/ Thomas J Higgins |
|
|
Thomas J. Higgins |
|
|
Chief Financial Officer |