Vanguard to Open New Office in Dallas

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Dave55
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Vanguard to Open New Office in Dallas

Post by Dave55 »

https://www.prnewswire.com/news-release ... 91719.html

From the press release: "Vanguard today announced plans to open a new office in the Dallas-Fort Worth region in early 2022. In alignment with the firm's commitment to making advice more accessible and affordable for investors, the new location will be dedicated to supporting all aspects of its growing advice businesses."

Does anyone know if Vanguard will begin to open brick and mortar office locations similar to the Schwab and Fidelity models?

Dave
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Re: Vanguard to Open New Office in Dallas

Post by abuss368 »

Dave55 wrote: Mon May 17, 2021 9:16 am https://www.prnewswire.com/news-release ... 91719.html

From the press release: "Vanguard today announced plans to open a new office in the Dallas-Fort Worth region in early 2022. In alignment with the firm's commitment to making advice more accessible and affordable for investors, the new location will be dedicated to supporting all aspects of its growing advice businesses."

Does anyone know if Vanguard will begin to open brick and mortar office locations similar to the Schwab and Fidelity models?

Dave
Hi Dave -

I did see this and thank you for sharing.

I am confused! At first I thought this was the announcement of your hedge funds new office!😂🤣

Tony
John C. Bogle: “Simplicity is the master key to financial success."
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Re: Vanguard to Open New Office in Dallas

Post by stan1 »

Reading the press release it sounds like a brick and mortar call center for PAS advisors who will interact with customers virtually. Interesting that they appear to be staffing up a B&M call center, maybe 100% telework isn't working out for them?
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Re: Vanguard to Open New Office in Dallas

Post by Scooter57 »

stan1 wrote: Mon May 17, 2021 12:22 pm Reading the press release it sounds like a brick and mortar call center for PAS advisors who will interact with customers virtually. Interesting that they appear to be staffing up a B&M call center, maybe 100% telework isn't working out for them?
It sounds to me like they are trying to compete with Schwab and Fidelity by having their advisors have offices where they can meet with customers. Perhaps they aren't getting as many sign-ups as they had anticipated for the phone version.
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Re: Vanguard to Open New Office in Dallas

Post by CABob »

It sounds to me like it is a bit less of the mutual fund company that John Bogle founded and headed and a bit more of the advisory service that has been instituted.
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Re: Vanguard to Open New Office in Dallas

Post by sport »

CABob wrote: Mon May 17, 2021 12:57 pm It sounds to me like it is a bit less of the mutual fund company that John Bogle founded and headed and a bit more of the advisory service that has been instituted.
However, any net "profit" earned by the advisory service *presumably* would be used to lower the ERs on the mutual funds and ETFs. If so, it's all good.
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Re: Vanguard to Open New Office in Dallas

Post by alex_686 »

sport wrote: Mon May 17, 2021 1:38 pm
CABob wrote: Mon May 17, 2021 12:57 pm It sounds to me like it is a bit less of the mutual fund company that John Bogle founded and headed and a bit more of the advisory service that has been instituted.
However, any net "profit" earned by the advisory service *presumably* would be used to lower the ERs on the mutual funds and ETFs. If so, it's all good.
No. There is a thicket of regulations around fund expenses. Bar a few exceptions, funds can't be subsidized. Each must pull its own weight when it comes to expenses.

Yes, scale helps reduce the costs for everybody since shared costs can be spread over a wider base. However, there is little overlap between portfolio management (running the funds) and advisory services. There can even be diseconomies of scale here since certain business lines must be kept at arm's length.
Former brokerage operations & mutual fund accountant. I hate risk, which is why I study and embrace it.
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Re: Vanguard to Open New Office in Dallas

Post by maj »

Today ATT admitted its big mistake and is spinning off part of its conglomerate to focus on its core.

Is Vanguard headed down the same path?

With increasing problems being reported re poor customer service and long telephone waits, why expand an elite service for the benefit of only a tiny percent of customers?

Put the money where it is most needed--an abundance of 'perfectly' trained reps.

peace
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Re: Vanguard to Open New Office in Dallas

Post by livesoft »

It is possible that it is easier to hire a qualified workforce in the Dallas area than in other areas of the country.

Some of my son's college friends now work in financial services in the DFW area. Others work in San Antonio.
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Re: Vanguard to Open New Office in Dallas

Post by sport »

alex_686 wrote: Mon May 17, 2021 1:45 pm
sport wrote: Mon May 17, 2021 1:38 pm
CABob wrote: Mon May 17, 2021 12:57 pm It sounds to me like it is a bit less of the mutual fund company that John Bogle founded and headed and a bit more of the advisory service that has been instituted.
However, any net "profit" earned by the advisory service *presumably* would be used to lower the ERs on the mutual funds and ETFs. If so, it's all good.
No. There is a thicket of regulations around fund expenses. Bar a few exceptions, funds can't be subsidized. Each must pull its own weight when it comes to expenses.

Yes, scale helps reduce the costs for everybody since shared costs can be spread over a wider base. However, there is little overlap between portfolio management (running the funds) and advisory services. There can even be diseconomies of scale here since certain business lines must be kept at arm's length.
My understanding is that the costs of operating Vanguard (not the funds) is paid proportionately by each of the funds. If there are net profits from the advisory activity, that would decrease the net costs of Vanguard. Thus, each fund's share of Vanguard expenses would be lower.
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Re: Vanguard to Open New Office in Dallas

Post by AUH2O »

livesoft wrote: Mon May 17, 2021 2:03 pm It is possible that it is easier to hire a qualified workforce in the Dallas area than in other areas of the country.
Correct. Vanguard has probably saturated the employment market in its current locations - PA, AZ, NC. Thus to expand the Advice business, Vanguard must satisfy two conditions: 1) sufficient workforce with requisite skills (CFP), and 2) ability to operate within its cost structure. DFW fits the bill unlike others which may satisfy condition #1 (NY, LA, SF).
maj wrote: Mon May 17, 2021 2:00 pm Today ATT admitted its big mistake and is spinning off part of its conglomerate to focus on its core.

Is Vanguard headed down the same path?
Yes, this appears to be the case.
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Re: Vanguard to Open New Office in Dallas

Post by stan1 »

Scooter57 wrote: Mon May 17, 2021 12:29 pm
stan1 wrote: Mon May 17, 2021 12:22 pm Reading the press release it sounds like a brick and mortar call center for PAS advisors who will interact with customers virtually. Interesting that they appear to be staffing up a B&M call center, maybe 100% telework isn't working out for them?
It sounds to me like they are trying to compete with Schwab and Fidelity by having their advisors have offices where they can meet with customers. Perhaps they aren't getting as many sign-ups as they had anticipated for the phone version.
The new location, like all Vanguard offices, will immerse Vanguard crew in the firm's client-centric culture and collaborative work environment, and will offer development opportunities that enable crew to best support their clients. Newly hired crew will work remotely until the new office opens in early 2022. Consistent with the existing virtual PAS service model, advisors in the Dallas office will engage with clients via phone, email, and videoconference.
Still virtual engagement with clients, not in person interaction with clients at this time. Reading between the lines 100% telework (although they are doing it to start) isn't "immersive" enough and they want the B&M facility. Would also guess security and compliance is easier when the people are on-site.
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Re: Vanguard to Open New Office in Dallas

Post by alex_686 »

stan1 wrote: Mon May 17, 2021 5:53 pm Still virtual engagement with clients, not in person interaction with clients at this time. Reading between the lines 100% telework (although they are doing it to start) isn't "immersive" enough and they want the B&M facility. Would also guess security and compliance is easier when the people are on-site.
For what Vanguard does, off-site is as easy as on-site. Compliance stuff is much easier when you are selling vanilla products and all communications run through the company.

Compliance is harder when the client has the reps personal cell phone number and they chat business on the golf course.
Former brokerage operations & mutual fund accountant. I hate risk, which is why I study and embrace it.
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Dave55
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Re: Vanguard to Open New Office in Dallas

Post by Dave55 »

abuss368 wrote: Mon May 17, 2021 11:06 am
Dave55 wrote: Mon May 17, 2021 9:16 am https://www.prnewswire.com/news-release ... 91719.html

From the press release: "Vanguard today announced plans to open a new office in the Dallas-Fort Worth region in early 2022. In alignment with the firm's commitment to making advice more accessible and affordable for investors, the new location will be dedicated to supporting all aspects of its growing advice businesses."

Does anyone know if Vanguard will begin to open brick and mortar office locations similar to the Schwab and Fidelity models?

Dave
Hi Dave -

I did see this and thank you for sharing.

I am confused! At first I thought this was the announcement of your hedge funds new office!😂🤣

Tony
Tony, we closed down the hedge fund, too much work. :wink:

Dave
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Re: Vanguard to Open New Office in Dallas

Post by LTCM »

Equities in Dallas? Rough.
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Re: Vanguard to Open New Office in Dallas

Post by Wade Garrett »

LTCM wrote: Tue May 18, 2021 12:40 am Equities in Dallas? Rough.
nice Liar's Poker reference
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Re: Vanguard to Open New Office in Dallas

Post by Stinky »

Copying from the press release:

To start, the new hub will be staffed by financial advisors aligned to the firm's leading virtual advice offer, Personal Advisor Services, as well as IT professionals supporting Vanguard's broader advice services.

I agree with others that this expansion is to tap into the DFW labor market to support existing Vanguard business activities.

I don’t see Vanguard opening up local offices like Fidelity and others.
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Re: Vanguard to Open New Office in Dallas

Post by Blue456 »

CABob wrote: Mon May 17, 2021 12:57 pm It sounds to me like it is a bit less of the mutual fund company that John Bogle founded and headed and a bit more of the advisory service that has been instituted.
To be fair their advisory service is not bad.
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Re: Vanguard to Open New Office in Dallas

Post by tibbitts »

Scooter57 wrote: Mon May 17, 2021 12:29 pm
stan1 wrote: Mon May 17, 2021 12:22 pm Reading the press release it sounds like a brick and mortar call center for PAS advisors who will interact with customers virtually. Interesting that they appear to be staffing up a B&M call center, maybe 100% telework isn't working out for them?
It sounds to me like they are trying to compete with Schwab and Fidelity by having their advisors have offices where they can meet with customers. Perhaps they aren't getting as many sign-ups as they had anticipated for the phone version.
I don't think they would have bothered to send out a press release for renting a 30x35ft space in a strip mall in Dallas, which is what the local offices of other firms seem to look like.
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Re: Vanguard to Open New Office in Dallas

Post by mokaThought »

I'll add a local angle to this: we have major new facilities here in the DFW area for Fidelity, Schwab, and TD Ameritrade, so I will be shocked if they don't try to snag some of the competitors' employees. I tried to get hired at one of them before becoming...a truck driver.
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Re: Vanguard to Open New Office in Dallas

Post by stan1 »

mokaThought wrote: Tue May 18, 2021 10:42 am I'll add a local angle to this: we have major new facilities here in the DFW area for Fidelity, Schwab, and TD Ameritrade, so I will be shocked if they don't try to snag some of the competitors' employees. I tried to get hired at one of them before becoming...a truck driver.
Phoenix is the same way, massive call centers for financial services and insurance industry (Vanguard, Discover, Amex, USAA, Caremark, many others).
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Re: Vanguard to Open New Office in Dallas

Post by 1210sda »

Has this info shown up on the Vanguard website?
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Re: Vanguard to Open New Office in Dallas

Post by abuss368 »

I will not get worried unless Vanguard announces they are opening public offices everywhere!

A few years ago they were exploring opening a bank!

Tony
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Re: Vanguard to Open New Office in Dallas

Post by Big Dog »

livesoft wrote: Mon May 17, 2021 2:03 pm It is possible that it is easier to hire a qualified workforce in the Dallas area than in other areas of the country.

And less expensive!
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