30/08/2024 | Press release | Distributed by Public on 30/08/2024 21:04
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: 811-58431
Name of Registrant: | Vanguard Valley Forge Funds |
Address of Registrant: | P.O. Box 2600 |
Valley Forge, PA 19482 |
Name and address of agent for service: | John E. Schadl, Esquire |
P.O. Box 876 | |
Valley Forge, PA 19482 |
Registrant's telephone number, including area code: (610) 669-1000
Date of fiscal year end: December 31
Date of reporting period: January 1, 2024-June 30, 2024Item 1: Reports to Shareholders.
TABLE OF CONTENTS
Baillie Gifford Global Positive Impact Stock Fund |
|
Semi-Annual Shareholder Report | June 30, 2024
This semi-annual shareholder report contains important information about Vanguard Baillie Gifford Global Positive Impact Stock Fund (the "Fund") for the period of January 1, 2024, to June 30, 2024.You can find additional information about the Fund at https://personal1.vanguard.com/ngf-next-gen-form-webapp/fund-literature. You can also request this information by contacting us at 800-662-7447.
(based on a hypothetical $10,000 investment)
Share Class Name
|
Costs of a $10,000 investment
|
Costs paid as a percentage of a $10,000 investment
|
Investor Shares
|
$29
|
0.59%Footnote Reference1
|
Footnote | Description |
Footnote1
|
Annualized. |
This table reflects the Fund's investments, including short-term investments and other assets and liabilities.
North America
|
57.9%
|
Asia
|
21.2%
|
Europe
|
15.3%
|
South America
|
4.7%
|
Africa
|
0.4%
|
Other Assets and Liabilities-Net
|
0.5%
|
Fund Net Assets (in millions)
|
$239
|
Number of Portfolio Holdings
|
31
|
Portfolio Turnover Rate
|
14%
|
Additional information about the Fund, including its prospectus, financial information, holdings, and proxy voting information is available at https://personal1.vanguard.com/ngf-next-gen-form-webapp/fund-literature.
Connect with Vanguard®• vanguard.com
Fund Information • 800-662-7447
Direct Investor Account Services • 800-662-2739
Text Telephone for People Who Are Deaf or Hard of Hearing •
800-749-7273
© 2024 The Vanguard Group, Inc.
All rights reserved.
Vanguard Marketing Corporation, Distributor.
SRV010
Item 2: Code of Ethics.
Not applicable.
Item 3: Audit Committee Financial Expert.
Not applicable.
Item 4: Principal Accountant Fees and Services.
Not applicable.
Item 5: Audit Committee of Listed Registrants.
Not applicable.
Item 6: Investments.
Not applicable. The complete schedule of investments is included in the financial statements filed under Item 7 of this Form.
Item 7: Financial Statements and Financial Highlights for Open-End Management Investment Companies.
Financial Statements
|
1 |
Shares |
Market Value• ($000) |
||
Common Stocks (97.9%) | |||
Belgium (1.3%) | |||
Umicore SA | 208,558 | 3,139 | |
Brazil (4.7%) | |||
* | NU Holdings Ltd. Class A | 866,444 | 11,169 |
Canada (5.0%) | |||
* | Shopify Inc. Class A (XTSE) | 160,141 | 10,577 |
* | AbCellera Biologics Inc. | 480,383 | 1,422 |
11,999 | |||
Denmark (3.1%) | |||
Novonesis Class B | 121,026 | 7,394 | |
India (4.6%) | |||
HDFC Bank Ltd. | 551,265 | 11,132 | |
Indonesia (3.9%) | |||
Bank Rakyat Indonesia Persero Tbk PT | 33,303,717 | 9,338 | |
Kenya (0.4%) | |||
Safaricom plc | 6,736,000 | 902 | |
Netherlands (7.4%) | |||
ASML Holding NV | 17,359 | 17,692 | |
Singapore (2.3%) | |||
* | Grab Holdings Ltd. Class A | 1,540,072 | 5,467 |
Sweden (1.9%) | |||
Epiroc AB Class B | 249,230 | 4,575 | |
Taiwan (10.4%) | |||
Taiwan Semiconductor Manufacturing Co. Ltd. (XTAI) | 837,000 | 24,798 | |
United States (52.9%) | |||
* | MercadoLibre Inc. | 10,589 | 17,402 |
* | Moderna Inc. | 110,968 | 13,177 |
* | Alnylam Pharmaceuticals Inc. | 53,426 | 12,983 |
* | DexCom Inc. | 100,735 | 11,421 |
Deere & Co. | 27,703 | 10,351 | |
Xylem Inc. | 73,443 | 9,961 | |
* | Autodesk Inc. | 39,435 | 9,758 |
* | Duolingo Inc. | 46,381 | 9,678 |
Ecolab Inc. | 36,557 | 8,701 | |
* | Tesla Inc. | 33,292 | 6,588 |
* | Illumina Inc. | 55,301 | 5,772 |
* | Remitly Global Inc. | 329,732 | 3,996 |
* | Coursera Inc. | 339,804 | 2,433 |
* | Vertex Pharmaceuticals Inc. | 4,939 | 2,315 |
* | Rivian Automotive Inc. Class A | 82,099 | 1,102 |
* | Joby Aviation Inc. | 166,959 | 852 |
*,1 | ABIOMED Inc. CVR | 16,638 | 17 |
126,507 | |||
Total Common Stocks (Cost $191,438) | 234,112 |
Shares |
Market Value• ($000) |
||
Preferred Stock (1.6%) | |||
Sartorius AG Preference Shares (Cost$6,279) | 15,685 | 3,672 | |
Temporary Cash Investments (0.8%) | |||
Money Market Fund (0.8%) | |||
2 | Vanguard Market Liquidity Fund, 5.380%(Cost$1,967) | 19,675 | 1,967 |
Total Investments (100.3%) (Cost $199,684) | 239,751 | ||
Other Assets and Liabilities-Net (-0.3%) | (633) | ||
Net Assets (100%) | 239,118 | ||
Cost is in $000. |
• | See Note A in Notes to Financial Statements. |
* | Non-income-producing security. |
1 | Security value determined using significant unobservable inputs. |
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. |
CVR-Contingent Value Rights. |
($000s, except shares, footnotes, and per-share amounts) | Amount |
Assets | |
Investments in Securities, at Value | |
Unaffiliated Issuers (Cost $197,717) | 237,784 |
Affiliated Issuers (Cost $1,967) | 1,967 |
Total Investments in Securities | 239,751 |
Investment in Vanguard | 7 |
Receivables for Investment Securities Sold | 140 |
Receivables for Accrued Income | 319 |
Receivables for Capital Shares Issued | 161 |
Total Assets | 240,378 |
Liabilities | |
Payables for Investment Securities Purchased | 8 |
Payables to Investment Advisor | 270 |
Payables for Capital Shares Redeemed | 782 |
Payables to Vanguard | 13 |
Deferred Foreign Capital Gains Taxes | 187 |
Total Liabilities | 1,260 |
Net Assets | 239,118 |
At June 30, 2024, net assets consisted of: | |
Paid-in Capital | 255,979 |
Total Distributable Earnings (Loss) | (16,861) |
Net Assets | 239,118 |
Investor Shares-Net Assets | |
Applicable to 12,804,347 outstanding $.001 par value shares of beneficial interest (unlimited authorization) |
239,118 |
Net Asset Value Per Share-Investor Shares | $18.67 |
Six Months Ended June 30, 2024 |
|
($000) | |
Investment Income | |
Income | |
Dividends1 | 1,185 |
Interest2 | 66 |
Total Income | 1,251 |
Expenses | |
Investment Advisory Fees-Note B | 555 |
The Vanguard Group-Note C | |
Management and Administrative-Investor Shares | 126 |
Marketing and Distribution-Investor Shares | 9 |
Custodian Fees | 7 |
Shareholders' Reports-Investor Shares | 15 |
Trustees' Fees and Expenses | - |
Other Expenses | 14 |
Total Expenses | 726 |
Net Investment Income | 525 |
Realized Net Gain (Loss) | |
Investment Securities Sold2,3 | (9,937) |
Foreign Currencies | (41) |
Realized Net Gain (Loss) | (9,978) |
Change in Unrealized Appreciation (Depreciation) | |
Investment Securities2,4 | 9,175 |
Foreign Currencies | (6) |
Change in Unrealized Appreciation (Depreciation) | 9,169 |
Net Increase (Decrease) in Net Assets Resulting from Operations | (284) |
1 | Dividends are net of foreign withholding taxes of $200,000. |
2 | Interest income, realized net gain (loss), and change in unrealized appreciation (depreciation) from an affiliated company of the fund were $66,000, less than $1,000, and less than $1,000, respectively. Purchases and sales are for temporary cash investment purposes. |
3 | Realized gain (loss) is net of foreign capital gain taxes of $1,000. |
4 | The change in unrealized appreciation (depreciation) is net of the change in deferred foreign capital gains taxes of $187,000. |
Six Months Ended June 30, 2024 |
Year Ended December 31, 2023 |
||
($000) | ($000) | ||
Increase (Decrease) in Net Assets | |||
Operations | |||
Net Investment Income | 525 | 701 | |
Realized Net Gain (Loss) | (9,978) | (23,325) | |
Change in Unrealized Appreciation (Depreciation) | 9,169 | 48,840 | |
Net Increase (Decrease) in Net Assets Resulting from Operations | (284) | 26,216 | |
Distributions | |||
Investor Shares | - | (1,056) | |
Total Distributions | - | (1,056) | |
Capital Share Transactions | |||
Investor Shares | (13,713) | 66,150 | |
Net Increase (Decrease) from Capital Share Transactions | (13,713) | 66,150 | |
Total Increase (Decrease) | (13,997) | 91,310 | |
Net Assets | |||
Beginning of Period | 253,115 | 161,805 | |
End of Period | 239,118 | 253,115 |
Investor Shares | ||||||
For a Share Outstanding Throughout Each Period |
Six Months Ended June 30, 2024 |
Year Ended December 31, | ||||
2023 | 20221 | 20211 | 20201 | 20191 | ||
Net Asset Value, Beginning of Period | $18.68 | $16.28 | $23.89 | $23.79 | $13.13 | $10.10 |
Investment Operations | ||||||
Net Investment Income (Loss)2 | .039 | .054 | .007 | (.08) | (.04) | .05 |
Net Realized and Unrealized Gain (Loss) on Investments | (.049) | 2.428 | (7.246) | 2.25 | 11.63 | 3.03 |
Total from Investment Operations | (.010) | 2.482 | (7.239) | 2.17 | 11.59 | 3.08 |
Distributions | ||||||
Dividends from Net Investment Income | - | (.082) | (.031) | - | - | (.03) |
Distributions from Realized Capital Gains | - | - | (.340) | (2.07) | (.93) | (.02) |
Total Distributions | - | (.082) | (.371) | (2.07) | (.93) | (.05) |
Net Asset Value, End of Period | $18.67 | $18.68 | $16.28 | $23.89 | $23.79 | $13.13 |
Total Return3 | -0.05% | 15.26% | -30.25% | 9.15% | 88.28% | 30.49% |
Ratios/Supplemental Data | ||||||
Net Assets, End of Period (Millions) | $239 | $253 | $162 | $87 | $36 | $11 |
Ratio of Net Expenses to Average Net Assets | 0.59% | 0.59% | 0.64%4 | 0.72%4 | 0.68%4 | 0.65%4 |
Ratio of Net Investment Income (Loss) to Average Net Assets | 0.43% | 0.31% | 0.04% | (0.28%) | (0.21%) | 0.41% |
Portfolio Turnover Rate | 14% | 26% | 35% | 28% | 40% | 7% |
The expense ratio and net investment income ratio for the current period have been annualized. |
1 | Includes activity of the Predecessor Fund through 7/18/22. See Note H in the Notes to Financial Statements. |
2 | Calculated based on average shares outstanding. |
3 | 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. |
4 | The ratio of total expenses to average net assets before an expense waiver was 0.68% for 2022, 0.77% for 2021, 1.05% for 2020, and 1.63% for 2019. See Note H in the Notes to Financial Statements. |
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. | Baillie Gifford Overseas Ltd. provides investment advisory services to the fund for a fee calculated at an annual percentage rate of average net assets. For the six months ended June 30, 2024, the investment advisory fee represented an effective annual basic rate of 0.23% of fund's average net assets. |
C. | In accordance with the terms of a Funds' Service Agreement (the "FSA") between Vanguard and the fund, Vanguard furnishes to the fund corporate management, administrative, marketing, distribution and cash management 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. 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-North and South America | 149,658 | - | 17 | 149,675 |
Common Stocks-Other | 5,467 | 78,970 | - | 84,437 |
Preferred Stock | - | 3,672 | - | 3,672 |
Temporary Cash Investments | 1,967 | - | - | 1,967 |
Total | 157,092 | 82,642 | 17 | 239,751 |
E. | As of June 30, 2024, gross unrealized appreciation and depreciation for investments based on cost for U.S. federal income tax purposes were as follows: |
Amount ($000) |
|
Tax Cost | 201,994 |
Gross Unrealized Appreciation | 66,208 |
Gross Unrealized Depreciation | (28,451) |
Net Unrealized Appreciation (Depreciation) | 37,757 |
F. | During the six months ended June 30, 2024, the fund purchased $34,864,000 of investment securities and sold $47,715,000 of investment securities, other than temporary cash investments. |
G. | Capital share transactions for each class of shares were: |
Six Months Ended June 30, 2024 |
Year Ended December 31, 2023 |
||||
Amount ($000) |
Shares (000) |
Amount ($000) |
Shares (000) |
||
Investor Shares | |||||
Issued | 29,387 | 1,592 | 128,774 | 7,242 | |
Issued in Lieu of Cash Distributions | - | - | 844 | 46 | |
Redeemed | (43,100) | (2,341) | (63,468) | (3,675) | |
Net Increase (Decrease)-Investor Shares | (13,713) | (749) | 66,150 | 3,613 |
H. | On July 18, 2022, the fund acquired all net assets of the Baillie Gifford Positive Change Equities Fund (the Predecessor Fund). The primary reasons for the acquisition were to reduce shareholder costs using the fund's lower operating cost structure and achieve greater economies of scale through access to the fund's larger retail distribution network. The acquisition was accomplished by a tax-free exchange of 3.7 million and 5.6 million of the fund's Investor Class shares for the 3.7 million Institutional Class shares and the 5.6 million Class K shares of the Predecessor Fund, respectively, on July 18, 2022. The Predecessor Fund's net assets of $143.3 million, including $32.0 million of unrealized depreciation, were acquired by the fund on July 18, 2022. Historical performance information of the Investor Class through July 18, 2022 is representative of the Institutional Class of the Predecessor Fund. |
I. | Significant market disruptions, such as those caused by pandemics, natural or environmental disasters, war, acts of terrorism, or other events, can adversely affect local and global markets and normal market operations. Any such disruptions could have an adverse impact on the value of the fund's investments and fund performance. |
J. | Management has determined that no events or transactions occurred subsequent to June 30, 2024, that would require recognition or disclosure in these financial statements. |
Item 8: Changes in and Disagreements with Accountants for Open-End Management Investment Companies.
Not applicable.
Item 9: Proxy Disclosures for Open-End Management Investment Companies.
Not applicable.
Item 10: Remuneration Paid to Directors, Officers, and Others of Open-End Management Investment Companies.
Not applicable.
Item 11: Statement Regarding Basis for Approval of Investment Advisory Contracts.
Not applicable.
Item 12: Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.
Not applicable.
Item 13: Portfolio Managers of Closed-End Management Investment Companies.
Not applicable.
Item 14: Purchase of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers.
Not applicable.
Item 15: Submission of Matters to a Vote of Security Holders.
Not applicable.
Item 16: 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 February 2024, a third-party service provider began performing security pricing services for the Registrant. There were no other changes in the Registrant's Internal Control Over Financial Reporting or in other factors that could significantly affect this control during the period covered by this report, including any corrective actions with regard to significant deficiencies and material weaknesses.
Item 17: Disclosure of Securities Lending Activities for Closed-End Management Investment Companies.
Not applicable.
Item 18: Recovery of Erroneously Awarded Compensation.
Not applicable.
Item 19: Exhibits.
(a)(1) | Not applicable. |
(a)(2) | Certifications filed herewith. |
(a)(2) | Certifications filed 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 VALLEY FORGE FUNDS | ||
BY: | /s/ SALIM RAMJI* | |
SALIM RAMJI | ||
CHIEF EXECUTIVE OFFICER |
Date: August 21, 2024
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 VALLEY FORGE FUNDS | ||
BY: | /s/ SALIM RAMJI* | |
SALIM RAMJI | ||
CHIEF EXECUTIVE OFFICER |
Date: August 21, 2024
VANGUARD VALLEY FORGE FUNDS | ||
BY: | /s/ CHRISTINE BUCHANAN* | |
CHRISTINE BUCHANAN | ||
CHIEF FINANCIAL OFFICER |
Date: August 21, 2024
*By: | /s/ John E. Schadl |
John E. Schadl, pursuant to a Power of Attorney filed on July 25, 2024 (see File Number 33-48863), Incorporated by Reference.