Massachusetts Tax-Exempt Fund (VMATX)

Indexed to Barclays MA Municipal Index

  Fact sheet (03/31/2014)

Characteristics

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Bonds
Portfolio of high-quality, long- and intermediate-term Massachusetts municipal bonds.



Expected range
Central tendency

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Fundamentals
as of 03/31/2014

  VMATX Benchmark

Barclays MA Municipal Bond Index

Number of bonds 260 1,612
Yield to maturity 2.87% 2.43%
Short-term reserves 0.19% N/A
Alternative minimum tax 0.00% N/A
  VMATX Benchmark

Barclays MA Municipal Bond Index

Average duration 7.0 (years) 7.6 (years)
Average maturity 7.3 (years) 6.6 (years)
Average coupon 4.59% 4.92%

Composition

Distribution by credit quality(% of fund)
as of 03/31/2014

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  Credit rating  VMATX
AAA 17.0%
AA 59.9%
A 15.0%
BBB 8.0%
BB 0.0%
B 0.0%
Not Rated 0.1%
0%
60%
Total 100.0%
* Credit-quality ratings are measured on a scale that generally ranges from AAA (highest) to D (lowest). “NR” is used to classify securities for which a rating is not available. Credit-quality ratings for each issue are obtained from Moody’s Investors Service and Standard & Poor’s, and the higher rating for each issue is used.

Distribution by issuer type  (% of fund)
as of —

  Issuer  VMATX

Data is currently unavailable
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Distribution by maturity (% of fund)
as of 03/31/2014

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  Maturity  VMATX
Under 1 Year 4.6%
1 - 3 Years 9.6%
3 - 5 Years 17.3%
5 - 10 Years 56.3%
10 - 20 Years 9.2%
20 - 30 Years 2.5%
Over 30 Years 0.5%
0%
60%
Total 100.0%

People and process

Firms

Vanguard Fixed Income Group

Product management

Vanguard Massachusetts Tax-Exempt Fund seeks high current income by investing at least 80% of its assets in securities exempt from federal and Massachusetts taxes. These municipal bonds are generally of long and intermediate maturity. The fund also may invest up to 20% in Massachusetts alternative minimum tax bonds. The fund is conservatively managed, emphasizing well-diversified, highly-rated municipal bonds. Although the fund has no limitation on the maturity of individual securities, its dollar-weighted average nominal maturity is expected to be between 10 and 25 years.

Vanguard Fixed Income Group

Firm description

Launched in 1975, The Vanguard Group, Malvern, Pennsylvania, is among the world’s largest equity and fixed income managers. As chief investment officer and managing director, Mortimer J. Buckley oversees Vanguard’s Equity Investment and Fixed Income Groups. Gregory Davis, CFA, principal and global head of Fixed Income Group, has direct oversight responsibility for all money market, bond, and stable value portfolios managed by the Fixed Income Group. He has managed investment portfolios since 2000, and has been with Vanguard since 1999. Kenneth E. Volpert, CFA, principal and head of Vanguard’s Taxable Bond Group, has direct oversight responsibility for all taxable bond funds managed by the Fixed Income Group. He has managed investment portfolios since 1982 and has been with Vanguard since 1992. Christopher W. Alwine, CFA, principal and head of Vanguard’s Municipal Bond Funds, has direct oversight responsibility for all tax-exempt bond funds managed by the Fixed Income Group. He has managed investment portfolios since 1996 and has been with Vanguard since 1990. Pamela Wisehaupt Tynan, principal and head of Vanguard’s Municipal Money Market Funds, has direct oversight responsibility for all tax-exempt money market funds managed by the Fixed Income Group. She has managed investment portfolios since 1988 and has been with Vanguard since 1982. The Fixed Income Group offers actively managed investments in U.S. Treasury, corporate, and tax-exempt securities, as well as passively managed index portfolios. Since 1981, it has refined techniques in total-return management, credit research, and index sampling to seek to deliver consistent performance with transparency and risk control. The group has advised Vanguard Massachusetts Tax-Exempt Fund since 1998.

Investment Manager Biography

Marlin G. Brown

  • Portfolio manager.
  • Advised the fund since 2008.
  • Worked in investment management since 1996.
  • B.S., University of Virginia.

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