The Vanguard Wellington Fund (VWELX), which now has about $40 billion in assets, has turned 80. "The Wellington Fund is a compelling case for the power of skilled management, balance, diversification and a long-term outlook," says Vanguard CEO Bill McNabb.
The fund seeks to provide long-term capital appreciation, reasonable current income and capital conservation, without undue risk, allocating 60 percent or more of its assets to large- and mid-cap value stocks, and the remainder to high-quality government and corporate bonds.
Its average total returns since inception (on July 1, 1929) are 7.99 percent. This figure includes the reinvestment of dividends and capital gains, net of expenses.
First known as Industrial and Power Securities Co., the Wellington Fund was incorporated as a balanced fund of stocks, bonds, and cash on December 28, 1928. It was renamed Wellington in 1935, the year in which it reached its $1 million milestone.
"The prudent and successful management of Wellington Management Company has served the fund extremely well over the years," McNabb adds.