The Vanguard Group - SEC Form ADV

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boggler
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The Vanguard Group - SEC Form ADV

Post by boggler »

This is the SEC-required registration form, disclosing facts about Vanguard such as who owns it, how much they own, assets under management, etc.

I thought some may find it interesting:
http://www.adviserinfo.sec.gov/iapd/con ... C0&Print=Y

"Vanguard Index Funds" owns >25% of Vanguard. All of the directors and execs own a piece, too, but each is less than 5%.
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boggler
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Re: The Vanguard Group - SEC Form ADV

Post by boggler »

Also interesting to note that Vanguard seems to have some "hedge fund" that it operates, according to that document. Not sure what that means in a regulatory context.
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FNK
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Re: The Vanguard Group - SEC Form ADV

Post by FNK »

The infamous market neutral fund?
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FNK
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Re: The Vanguard Group - SEC Form ADV

Post by FNK »

VANGUARD INDEX FUNDS 25% but less than 50%

VANGUARD BOND INDEX FUNDS 10% but less than 25%

VANGUARD INTERNATIONAL EQUITY INDEX FUNDS 5% but less than 10%

VANGUARD FIXED INCOME SECURITIES FUNDS 5% but less than 10%

And so on...
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1210sda
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Re: The Vanguard Group - SEC Form ADV

Post by 1210sda »

In section 5A. Vanguard states it has 238 employees.....wow, that sounds low. I don't know what I was expecting, but it just "seems" low.
1210
fareastwarriors
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Re: The Vanguard Group - SEC Form ADV

Post by fareastwarriors »

1210sda wrote:In section 5A. Vanguard states it has 238 employees.....wow, that sounds low. I don't know what I was expecting, but it just "seems" low.
1210

If you are organized as a sole proprietorship, include yourself as an employee in your responses to Item 5.A. and Items 5.B.(1), (2), (3), (4), and (5). If an employee performs more than one function, you should count that employee in each of your responses to Items 5.B.(1), (2), (3), (4), and (5).

A. Approximately how many employees do you have? Include full- and part-time employees but do not include any clerical workers.
238


I don't know how is clerical worker defined. But I sure feel like a clerical worker sometimes at work! :)
DetroitRed
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Re: The Vanguard Group - SEC Form ADV

Post by DetroitRed »

1210sda wrote:In section 5A. Vanguard states it has 238 employees.....wow, that sounds low. I don't know what I was expecting, but it just "seems" low.
1210
I looked up the latest employee numbers for some Vanguard competitors:

T Rowe Price: 5,372
Legg Mason: 2,975
AllianceBernstein:3,764
Franklin Resource:8,600

238 can't possibly be correct for the whole company.

$1.77 trillion in assets under management (Item 5F) / 238 employees = $7.45 billion in managed assets per employee
stlutz
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Re: The Vanguard Group - SEC Form ADV

Post by stlutz »

I think most VG employees are part of another entity within their structure--probably Vanguard Marketing Corporation or whatever.

According to their website they have 13,500 employees.

https://investor.vanguard.com/about/who-we-are
Dandy
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Re: The Vanguard Group - SEC Form ADV

Post by Dandy »

vanguard probably has more than 238 people answering the phones. Ran a couple of mutual fund phone centers and they didn't have close to the customers VG has.
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nisiprius
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Re: The Vanguard Group - SEC Form ADV

Post by nisiprius »

boggler wrote:Also interesting to note that Vanguard seems to have some "hedge fund" that it operates, according to that document. Not sure what that means in a regulatory context.
FNK wrote:The infamous market neutral fund?
I don't think so. I think it's almost certainly the "Alternative Strategies fund," the Irish hedge fund that Vanguard set up, discussed in the 2010 thread, Vanguard files for exemptive relif..

The idea was that the Managed Payout funds would invest in it as one of their "alternative" holdings. Last time I checked, that had not happened--nope, still hasn't happened although I see they've swapped out 3% of Total Bond and swapped in 3% of Total International Bond.

The controversial Managed Payout funds have an interesting variable-withdrawal strategy that makes smoothed-out monthly payments, not just dividends but, if necessary (which it has been) spending down capital as well. The portfolio is vaguely based on the "Yale model," with a far higher stock percentage than traditional retirement income funds, and the faddishly popular alternative investments.

It's interesting that they haven't in fact used the Irish hedge fund, and to my mind suggests that the managers of the Managed Payout funds haven't lost their marbles.
Annual income twenty pounds, annual expenditure nineteen nineteen and six, result happiness; Annual income twenty pounds, annual expenditure twenty pounds ought and six, result misery.
troysapp
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Re: The Vanguard Group - SEC Form ADV

Post by troysapp »

When reviewing a firm's ADV it's important to also read Part 2: http://www.adviserinfo.sec.gov/Iapd/Con ... _ID=187791
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boggler
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Re: The Vanguard Group - SEC Form ADV

Post by boggler »

troysapp wrote:When reviewing a firm's ADV it's important to also read Part 2: http://www.adviserinfo.sec.gov/Iapd/Con ... _ID=187791
That document mentions separately managed accounts. I wonder whether they offer that for institutional and very wealthy clients.
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