(PUB) Investing 2015

July 2015

Morningstar FundInvestor

7

Data through June 30, 2015 Vanguard PRIMECAP Inv

Ticker

Status Yield Total Assets

Mstar Category

VPMCX Closed 1.1% $47,558 mil

Large Growth

Morningstar Analyst Rating 06-17-15

Investment Style Equity Stock %

Historical Profile Return Risk Rating High Below Avg Highest

96% 98% 99% 98% 99% 97% 96% 95% 95%

Œ

Manager Change Partial Manager Change

15.0 20.0 26.0

Morningstar Pillars Process Performance

Growth of $10,000

Positive Positive Positive Positive Positive

Investment Values of Fund Investment Values of S&P 500

People Parent Price

10.0

Performance Quartile (within Category) History

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 06-15

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 ¨

62.30 18.31

65.31

68.94 12.30 -3.49

72.05

44.54

59.44 34.45 7.99 -2.76 1.00 33.45

65.80 12.89 -2.17 -3.82

61.74 -1.84 -3.95 -4.48 1.05 -2.89

69.49 15.27 -0.73

103.57 102.85 92.33

NAV

8.49 3.58 3.23 0.62 7.87 0.39 1.91 0.45 0.85 19

-32.41 11.49

39.73

18.72

0.70 -0.53 -3.26 0.00 0.70

Total Return %

7.43

6.00 -0.32 0.83

4.59 6.03 0.71

7.34 6.25 1.20

5.03 5.67 1.26

+/-S&P 500

12.01

3.23 0.73

0.01 1.56

+/-Russ 1000Gr Income Return % Capital Return %

0.84

1.03

17.47

11.57

-33.12 10.66

11.86

13.71

38.53

17.46

2

78

61

5

50

72

49

48

10

1

92

Total Rtn % Rank Cat

Pillar Spectrum Positive

0.45 0.00 0.46 0.48

0.48 3.96 0.46 0.64

0.57 4.13 0.43 0.62

0.51 3.66 0.43 0.76

0.45 0.00 0.49 1.02

0.61 0.67 0.45 1.05

0.69 2.10 0.45 0.95

0.97 0.72 0.45 1.30

0.84 3.77 0.45 1.32

1.16 5.71 0.44 1.17

0.00 0.00

Income $

§ Negative

¶ Neutral

Capital Gains $ Expense Ratio % Income Ratio % Turnover Rate % Net Assets $mil

. . .

Performance 06-30-15 1st Qtr 2nd Qtr

3rd Qtr

4th Qtr

Total

9

12

10

11

11

4

5

8

6

5

11

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 . . . .

13,537 13,239 14,935 17,883 19,056 14,688 22,711 22,372 21,067 22,998

9,785

8,742

Portfolio Analysis 03-31-15 Share change since 12-14 Total Stocks:125 Sector

Rating and Risk Time Load-Adj

PE Tot Ret% % Assets

Morningstar

Morningstar Risk vs Cat

Morningstar Risk-Adj Rating

Period Return % Rtn vs Cat

Biogen Inc Amgen Inc

Hlth care 29.1 19.00 8.41 Hlth care 20.7 -2.63 5.32 . . . Hlth care 40.8 22.47 4.45 Technology 18.4 -2.38 4.15 Technology 112.4 11.43 3.38 5.15 Hlth care 24.1 6.84 3.30 Technology 18.4 -3.62 3.30 Hlth care 22.6 9.01 2.61 Cnsmr Cyc 22.5 2.52 2.09 Finan Svs 34.8 8.55 1.67 Technology 26.8 1.77 1.66 Technology 25.8 -0.85 1.64 Hlth care 30.7 3.58 1.57 Basic Mat 19.8 -9.55 1.49 Comm Svs 16.1 7.02 1.44 Technology 12.0 -24.38 1.40 Industrl 19.5 -1.62 3.30 Industrl 15.9 -21.49 3.19 Industrl 16.9 34.31 1.51

1 Yr 3 Yr 5 Yr

8.80

Trailing

Total

+/-

+/- Russ %Rank Growth of

Return% S&P 500 1000Gr

Cat

$10,000

21.82 18.97 10.50 13.64

High +Avg High

-Avg -Avg -Avg

CMT Market Liquidity Rat

3 Mo 6 Mo 1 Yr

-1.51 -1.79 0.70 -0.53 8.80 1.38 21.82 4.51 18.97 1.63 10.50 2.61 6.36 2.00

-1.63 -3.26 -1.76 3.83 0.38 1.40 4.17

93 9,849 92 10,070 57 10,880 4 18,078 14 23,833 7 27,141 5 25,216

Eli Lilly and Co

10 Yr Incept

Texas Instruments Inc Adobe Systems Inc

3 Yr Avg 5 Yr Avg 10 Yr Avg 15 Yr Avg

FedEx Corp

Other Measures

Standard Index

Best Fit Index R3000 Growth

Roche Holding AG Dividen

S&P 500

Microsoft Corp

Alpha

5.2

5.0

Southwest Airlines Co

Beta

0.92

0.89

Novartis AG ADR

R-Squared

84

86

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 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

L Brands Inc

Standard Deviation

8.58

Charles Schwab Corp Google Inc Class A Google Inc Class C Capit

Mean

21.82

Sharpe Ratio

2.36

Medtronic PLC Airbus Group NV Monsanto Co

Directv

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.

Hewlett-Packard Co

Current Investment Style

Sector Weightings

% of Stocks

Rel S&P 500 High

3 Year Low

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

Cyclical 16.65 BasicMat 2.27 CnsmrCyc 7.61 FinanSvs 6.77 Real Est 0.00 Sensitive 51.01 CommSrvs 1.62 Energy 2.22 Industrl 16.68 Technlgy 30.49 Defensive32.33 CnsmrDef 0.04 Hlthcare 32.29 Utilities 0.00

. . . . . . . .

h r t y u j i o p a k s d f

4 2 8 5 7 6 0 0

2 1 5 2

Value Measures Price/Earnings Price/Book Price/Sales Price/Cash Flow Dividend Yield % Long-Term Erngs Book Value Sales Cash Flow Historical Erngs Growth Measures

Rel Category

19.44 3.59 2.23 11.23 1.81 11.69 2.71 4.25 10.34 8.74

1.08 1.25 1.23 1.12 1.37 0.87 0.26 0.53 0.80 0.39

. 17 14 . 32 30

. .

1 0

. 33 31

% Rel Category

0 0

.

Composition - Net

this fund’s outstanding long-term record.

category average and 62% for the same team’s Primecap Odyssey Growth POGRX. Big stocks

Cash 5.2 Stocks 94.9 Bonds 0.0 Other 0.0 Foreign 11.8

Address:

Vanguard Chester Funds Valley Forge, PA 19482 800-662-7447 www.vanguard.com

Minimum Purchase: Min Auto Inv Plan:

Closed Closed No-load

Add: . Add: .

IRA: .

Profitability

% Rel Category

Sales Fees:

Return on Equity Return on Assets Net Margin

20.91 9.92 16.00

1.00 1.02 1.13

Web Address: Inception: Advisor: Subadvisor: NTF Plans:

Management Fee:

0.50% mx./0.15% mn. Mgt:0.42% Dist: .

(% of Stock)

11-01-84

Actual Fees:

PRIMECAP Management Company

Expense Projections: Income Distribution:

3Yr:$141 Annually

5Yr:$246 10Yr:$555

None

Vanguard NTF

Mutual Funds ß ®

© 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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