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THE VANGUARD GROUP • Has Vanguard become Number 1 in the mutual fund industry • Has it increased its advertising expenditures • Has Brennan made any substantial changes Has Vanguard bec

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THE VANGUARD GROUP • Has Vanguard become Number 1 in the mutual fund industry • Has it increased its advertising expenditures • Has Brennan made any substantial changes Has Vanguard bec Powered By Docstoc
					  THE VANGUARD GROUP
• Has Vanguard become Number 1 in the
  mutual fund industry ?
• Has it increased its advertising expenditures ?
• Has Brennan made any substantial changes ?
Has Vanguard become Number 1
 in the mutual fund industry? (1)
Vanguard does not have the largest fund
  Dec 3, 2001 - Wall Street Journal “How the Largest Funds Fared”

Fidelity Magellan has:
       $ 73,285.5 M in assets
Vanguard 500 Index; Inv has:
      $ 67,359.2 M in assets
Fidelity Magellan is $ 5,926.3 M (8.8%) larger
Has Vanguard become Number 1
 in the mutual fund industry? (2)
Vanguard does not have most assets under
  management (9/30/01 – company fact sheets)
Fidelity Investments Corp has:
    $ 751.3 B in total mutual fund assets
The Vanguard Group has:
    $ 534.0 B total mutual fund assets
Fidelity Investments is $ 217.3 B (41%) larger
    Has Vanguard Increased its
    Advertising Expenditures?
YES – Vanguard advertises regularly in the
 Wall Street Journal (WSJ 10/3/01 – Mutual
 Fund Section, p. R6, variable annuities)
YES – Vanguard is an “advertiser” in the
 Harvard Business Review On-Line Media Kit
YES – Vanguard’s advertising agency is SVGT
 with print ads and radio spots!
YES – Vanguard has full-page ads in the
 Financial Advisor Magazine
         Has Brennan made any
        substantial changes? (N)
  Things that have not changed since Bogle
• Still mutual organization and still very low fees:
   – Magellan: 0.89% + 3% redemption
   – Vanguard 500: 0.20% (Inv) –OR- 0.15% (Adm)
• Still have lots of index funds and lots of
  outsourced active funds
• Continuing efforts in metrics (since 1996):
   – Vanguard Economic Value Added (VEVA)
   – market- adjusted expense ratio
• Informative web site and phone system
         Has Brennan made any
        substantial changes? (Y)
     Things that have changed since Bogle
• Focus on big individual investors:
   – Admiral Shares (reduced fees for big investors)
   – Flagship ($250 K to $ 1 M) Voyager (> $ 1 M)
• VIPER Shares + Vanguard Brokerage
• Plenty of new funds (e.g. double the Institutional
  funds)
• Lots of new advisory and web services
• AwardS; Best Corporate University; best place to
  work (Working Mothers; Pennsylvania)

				
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