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7
Morningstar FundInvestor
July
2015
Morningstar Analyst Rating
06-17-15
Œ
Morningstar Pillars
Process
Performance
People
Parent
Price
Positive
Positive
Positive
Positive
Positive
Morningstar Analyst Rating
Morningstar evaluates mutual funds based on five key pillars, which
its analysts believe lead to funds that are more likely to outperform
over the long term on a risk-adjusted basis.
Analyst Rating Spectrum
Œ „ ´ˇ ¨
Pillar Spectrum
Positive
§
Negative
¶
Neutral
NAV
103.57
102.85
92.33
69.49
61.74
65.80
59.44
44.54
72.05
68.94
65.31
62.30
Total Return %
0.70
18.72
39.73
15.27
-1.84
12.89
34.45
-32.41
11.49
12.30
8.49
18.31
+/-S&P 500
-0.53
5.03
7.34
-0.73
-3.95
-2.17
7.99
4.59
6.00
-3.49
3.58
7.43
+/-Russ 1000Gr
-3.26
5.67
6.25
0.01
-4.48
-3.82
-2.76
6.03
-0.32
3.23
3.23
12.01
Income Return %
0.00
1.26
1.20
1.56
1.05
1.03
1.00
0.71
0.83
0.73
0.62
0.84
Capital Return %
0.70
17.46
38.53
13.71
-2.89
11.86
33.45
-33.12
10.66
11.57
7.87
17.47
Total Rtn % Rank Cat
92
1
10
48
49
72
50
5
61
78
19
2
Income $
0.00
1.16
0.84
0.97
0.69
0.61
0.45
0.51
0.57
0.48
0.39
0.45
Capital Gains $
0.00
5.71
3.77
0.72
2.10
0.67
0.00
3.66
4.13
3.96
1.91
0.00
Expense Ratio %
.
0.44
0.45
0.45
0.45
0.45
0.49
0.43
0.43
0.46
0.45
0.46
Income Ratio %
.
1.17
1.32
1.30
0.95
1.05
1.02
0.76
0.62
0.64
0.85
0.48
Turnover Rate %
.
11
5
6
8
5
4
11
11
10
12
9
Net Assets $mil
8,742
9,785
13,537
13,239
14,935
17,883
19,056
14,688
22,711
22,372
21,067
22,998
Performance
06-30-15
1st Qtr
2nd Qtr
3rd Qtr
4th Qtr
Total
2011
2012
2013
2014
2015
5.23 0.25 -15.78 10.48 -1.84
10.37 -3.49
5.52 2.56 15.27
14.16 3.19
7.29 10.55 39.73
5.03 4.63
2.66 5.24 18.72
2.25
. . . .
Trailing
Total
+/-
+/- Russ %Rank Growth of
Return% S&P 500 1000Gr
Cat
$10,000
3 Mo
6 Mo
1 Yr
3 Yr Avg
5 Yr Avg
10 Yr Avg
15 Yr Avg
-1.51 -1.79
-1.63
93 9,849
0.70 -0.53
-3.26
92 10,070
8.80 1.38
-1.76
57 10,880
21.82 4.51
3.83
4 18,078
18.97 1.63
0.38
14 23,833
10.50 2.61
1.40
7 27,141
6.36 2.00
4.17
5 25,216
Tax Analysis
Tax-Adj Rtn% %Rank Cat Tax-Cost Rat %Rank Cat
3 Yr (estimated)
5 Yr (estimated)
10 Yr (estimated)
20.45
2
1.13
40
17.93
15
0.88
49
9.60
9
0.81
67
Potential Capital Gain Exposure: 85% of assets
Rating and Risk
Time Load-Adj
Morningstar
Morningstar
Morningstar
Period Return % Rtn vs Cat
Risk vs Cat
Risk-Adj Rating
1 Yr
8.80
3 Yr
21.82
High
-Avg
5 Yr
18.97
+Avg
-Avg
10 Yr
10.50
High
-Avg
Incept
13.64
Other Measures
Standard Index
Best Fit Index
S&P 500
R3000 Growth
Alpha
5.2
5.0
Beta
0.92
0.89
R-Squared
84
86
Standard Deviation
8.58
Mean
21.82
Sharpe Ratio
2.36
Morningstar’s Take
by David Kathman, CFA 06-17-15
Vanguard Primecap remains one of the best funds out
there.
Domestic-Stock Fund Manager of the Year after putting
up impressive numbers in 2014. This fund, by far the
largest of the team’s six funds, ranked in the
large-growth Morningstar Category’s top 1% for the
year, and the other five also ranked near the top of
their categories. This fund has not looked nearly as
good in the first half of 2015, landing the category’s
bottom quartile for the year to date as of mid-June and
trailing most of the team’s other funds. That’s no
reason for alarm; this remains a topnotch fund that
more than earns its Morningstar Analyst Rating of
Gold.
recently has been its reliance on large- and mega-cap
stocks, which made up 93% of the portfolio as of
March 31, 2015, well above the 81% large-growth
category average and 62% for the same team’s
Primecap Odyssey Growth POGRX. Big stocks
outperformed smaller ones in 2014, thus giving this
fund a boost. That pattern has been reversed in 2015’s
first half. While some of this fund’s big names have
continued to do well, others have struggled recently
after strong 2014 gains, including top-10 holdings
Amgen AMGN, Texas Instruments TXN, and Microsoft
MSFT. This fund’s $48 billion asset base makes it
difficult to own the smaller health-care and tech
stocks that have been the recent best performers,
such as Seattle Genetics SGEN and Abiomed ABMD,
both top-10 holdings in Odyssey Growth but absent
here.
been its airline stocks, including top-10 holding
Southwest Airlines LUV. These posted big gains in
2014 but have mostly lagged so far in 2015; however,
the managers still like the long-term story here and
have been adding to their airline positions.
this fund’s outstanding long-term record.
Address:
Vanguard Chester Funds
Valley Forge, PA 19482
800-662-7447
Web Address:
www.vanguard.comInception:
11-01-84
Advisor:
PRIMECAP Management Company
Subadvisor:
None
NTF Plans:
Vanguard NTF
Minimum Purchase:
Closed
Add:
.
IRA:
.
Min Auto Inv Plan:
Closed
Add:
.
Sales Fees:
No-load
Management Fee:
0.50% mx./0.15% mn.
Actual Fees:
Mgt:0.42% Dist:
.
Expense Projections:
3Yr:$141
5Yr:$246 10Yr:$555
Income Distribution:
Annually
Data through June 30, 2015
Vanguard PRIMECAP Inv
Ticker
Status Yield Total Assets
Mstar Category
VPMCX Closed 1.1% $47,558 mil
Large Growth
96% 98% 99% 98% 99% 97% 96% 95% 95%
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 06-15
Historical Profile
Return
Risk
Rating
High
Below Avg
Highest
Investment Style
Equity
Stock %
Manager Change
Partial Manager Change
Growth of $10,000
Investment Values of
Fund
Investment Values of
S&P 500
Performance Quartile
(within Category)
History
10.0
15.0
20.0
26.0
Portfolio Analysis
03-31-15
Share change since 12-14 Total Stocks:125 Sector
PE Tot Ret% % Assets
Biogen Inc
Hlth care 29.1 19.00 8.41
Amgen Inc
Hlth care 20.7 -2.63 5.32
CMT Market Liquidity Rat
. . .
5.15
Eli Lilly and Co
Hlth care 40.8 22.47 4.45
Texas Instruments Inc
Technology 18.4 -2.38 4.15
Adobe Systems Inc
Technology 112.4 11.43 3.38
FedEx Corp
Industrl
19.5 -1.62 3.30
Roche Holding AG Dividen
Hlth care 24.1 6.84 3.30
Microsoft Corp
Technology 18.4 -3.62 3.30
Southwest Airlines Co
Industrl
15.9 -21.49 3.19
Novartis AG ADR
Hlth care 22.6 9.01 2.61
L Brands Inc
Cnsmr Cyc 22.5 2.52 2.09
Charles Schwab Corp
Finan Svs 34.8 8.55 1.67
Google Inc Class A
Technology 26.8 1.77 1.66
Google Inc Class C Capit
Technology 25.8 -0.85 1.64
Medtronic PLC
Hlth care 30.7 3.58 1.57
Airbus Group NV
Industrl
16.9 34.31 1.51
Monsanto Co
Basic Mat 19.8 -9.55 1.49
Directv
Comm Svs 16.1 7.02 1.44
Hewlett-Packard Co
Technology 12.0 -24.38 1.40
Current Investment Style
Market Cap %
Giant
50.9
Large
42.0
Mid
6.5
Small
0.6
Micro
0.0
Avg $mil:
65,248
Value Blnd Growth
Large Mid Small
Value Measures
Rel Category
Price/Earnings
Price/Book
Price/Sales
Price/Cash Flow
Dividend Yield %
19.44
3.59
2.23
11.23
1.81
1.08
1.25
1.23
1.12
1.37
Growth Measures
% Rel Category
Long-Term Erngs
Book Value
Sales
Cash Flow
Historical Erngs
11.69
2.71
4.25
10.34
8.74
0.87
0.26
0.53
0.80
0.39
Profitability
% Rel Category
Return on Equity
Return on Assets
Net Margin
20.91
9.92
16.00
1.00
1.02
1.13
Sector
Weightings
% of
Stocks
Rel
S&P 500 High
3 Year
Low
Cyclical 16.65
.
BasicMat 2.27
.
4 2
CnsmrCyc 7.61
.
8 5
FinanSvs 6.77
.
7 6
Real Est 0.00
.
0 0
Sensitive 51.01
.
CommSrvs 1.62
.
2 1
Energy 2.22
.
5 2
Industrl 16.68
.
17 14
Technlgy 30.49
.
32 30
Defensive32.33
.
CnsmrDef 0.04
.
1 0
Hlthcare 32.29
.
33 31
Utilities 0.00
.
0 0
h
r
t
y
u
j
i
o
p
a
k
s
d
f
Composition - Net
(% of Stock)
Cash
5.2
Stocks 94.9
Bonds 0.0
Other
0.0
Foreign 11.8
©
2015Morningstar, Inc.All rights reserved. The information herein isnot representedorwarranted to be accurate, correct, complete or
timely.Past performance isnoguaranteeof future results.Accessupdated reports at
To order reprints, call312-696-6100.
mfb.morningstar.com.
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