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The Vanguard Group, Inc.

PRI reporting framework 2019

You are in Organisational Overview » Basic information

Basic information

OO 01. Signatory category and services

01.1. Select the services and funds you offer

Select the services and funds you offer
% of asset under management (AUM) in ranges
Fund management
Fund of funds, manager of managers, sub-advised products
Other

Please specify

          execution and advisory services
        
Total 100%

Further options (may be selected in addition to the above)

01.2. Additional information. [Optional]

Vanguard is one of the world's largest investment companies, offering a wide selection of low-cost mutual funds, ETFs, advice, and other related services. We offer our products and services directly to individuals, as well as to financial professionals and to corporate and institutional investors.

What sets Vanguard apart - and lets us put investors first - is our mutual structure in the United States. Rather than being publicly traded or owned by a small group of individuals, The Vanguard Group, Inc. (VGI), is owned by U.S.-domiciled Vanguard funds. Those funds, in turn, are owned by their shareholders.

This unique mutual structure aligns our interests with our investors' interests and drives our culture, philosophy, and policies throughout the Vanguard organization globally. As a result, investors benefit from Vanguard's stability and experience, low costs, and client focus.

Stability and experience: Vanguard does not pursue short-term asset growth at the expense of existing investors' interests. For us, asset growth is not a goal; it's an outcome of doing the right thing for investors. Vanguard established the world's first index mutual fund for individual investors in 1976 and has been a leader in low-cost index investing ever since. Vanguard also launched the first funds based on bond and international indexes and, over the last decade, has extended its index management expertise to ETFs. Vanguard leverages the scale, experience, and resources of our established global business.

Low costs: Investors cannot control the markets, but they can control the costs of investing. Providing low-cost investments isn't a pricing strategy for Vanguard - it's how we do business. VGI doesn't have any third-party shareholders or outside owners to answer to. This mutual structure in the United States enables us to run our funds efficiently, passing on more of your returns. Vanguard's scale also helps keep costs low. As our assets under management increase, we have the ability to reduce expense ratios for the investors in our funds.

Client focus: VGI's mutual structure aligns our interests with those of our clients. Because Vanguard is not publicly traded, we can extend the benefits of that structure to our clients around the world. Vanguard's unique mutual structure in the United States allows us to manage our funds at a low cost, giving clients the opportunity to receive the best value. Clients come first because clients can come first.

Note: The data included in this section have not been audited by an independent third party.


OO 02. Headquarters and operational countries

02.1. Select the location of your organisation’s headquarters.

United States

02.2. Indicate the number of countries in which you have offices (including your headquarters).

02.3. Indicate the approximate number of staff in your organisation in full-time equivalents (FTE).

17568 FTE

02.4. Additional information. [Optional]

By being one of the world's highest-value providers of investment products and services, Vanguard focuses on helping our clients reach their financial goals. We are guided by our mission: "To take a stand for all investors, to treat them fairly, and to give them the best chance for investment success."

Since our founding in 1975, we have followed the time-tested investment principles of balance, diversification, cost efficiency, and a disciplined focus on the long term. We're gratified that our long-standing advocacy for these principles has helped change the world of investing.

We serve clients across a range of channels, including individual investors, financial advisors, and institutions. Our approach in each market is tailored to suit local cultural and regulatory factors, but it always makes full use of the scale and experience of the broader enterprise and reflects Vanguard's beliefs and client focus. We continue to adapt and expand our investment products for institutional and individual investors around the globe, ensuring that the products are grounded in our enduring principles. By engaging in continuous dialogue with clients, we uncover their needs and expectations and refine our capabilities to meet them.

The success of our approach has allowed Vanguard to expand rapidly. We now have operations in 18 locations, 14 of them outside the United States. Internationally, we continue to grow in Europe, the Americas (ex-US), Australia, and the Pacific region. We are strengthening our global operations further by expanding our resources in portfolio management, research, and client services across the regions served by our 18 offices.

A commitment to responsible investment has always been inherent in Vanguard's investment process. Our unique mutual structure mandates our adherence to the values of integrity, focus, and stewardship - values that are consistent with being responsive to environmental, social, and governance (ESG) concerns. As global markets and their associated risks evolve, Vanguard will continue to deepen its engagement in analysing and managing ESG risks in our investments on behalf of our clients.

Note: The data included in this section have not been audited by an independent third party.


OO 03. Subsidiaries that are separate PRI signatories

03.1. Indicate whether you have subsidiaries within your organisation that are also PRI signatories in their own right.

03.3. Additional information. [Optional]

Our report covers the investment management activities of all Vanguard subsidiaries, including Vanguard Investments Australia and Vanguard Asset Management.


OO 04. Reporting year and AUM

04.1. Indicate the year end date for your reporting year.

31/12/2018

04.2. Indicate your total AUM at the end of your reporting year.

Include the AUM of subsidiaries, but exclude advisory/execution only assets, and exclude the assets of your PRI signatory subsidiaries that you have chosen not to report on in OO 03.2
Total AUM
trillions billions millions thousands hundreds
Currency
Assets in USD
trillions billions millions thousands hundreds

04.4. Indicate the total assets at the end of your reporting year subject to an execution and/or advisory approach.

Total AUM
trillions billions millions thousands hundreds
Currency
Assets in USD
trillions billions millions thousands hundreds

04.5. Additional information. [Optional]

The response to OO 4.4 represents all advised assets as of 31 December 2018.

Note: The data included in this section have not been audited by an independent third party. 


OO 06. How would you like to disclose your asset class mix

06.1. Select how you would like to disclose your asset class mix.

Internally managed (%)
Externally managed (%)

 

Listed equity >50% 58.35 <10% 8.81
Fixed income 10-50% 23.69 <10% 2.54
Private equity 0 0 0 0
Property 0 0 0 0
Infrastructure 0 0 0 0
Commodities 0 0 0 0
Hedge funds 0 0 0 0
Fund of hedge funds 0 0 0 0
Forestry 0 0 0 0
Farmland 0 0 0 0
Inclusive finance 0 0 0 0
Cash <10% 0.14 0 0
Money market instruments <10% 5.63 0 0
Other (1), specify <10% 0.82 0 0
Other (2), specify 0 0 0 0

'Other (1)' specified

          Derivatives
        

06.2. Publish asset class mix as per attached image [Optional].

06.3. Indicate whether your organisation has any off-balance sheet assets [Optional].

06.5. Indicate whether your organisation uses fiduciary managers.

06.6. Provide contextual information on your AUM asset class split. [Optional]


OO 07. Fixed income AUM breakdown

07.1. Provide to the nearest 5% the percentage breakdown of your Fixed Income AUM at the end of your reporting year, using the following categories.

Internally managed
58.5 SSA
9.3 Corporate (financial)
14.2 Corporate (non-financial)
18.0 Securitised
Total 100%
Externally managed
16.8 SSA
19.02 Corporate (financial)
44.12 Corporate (non-financial)
20.04 Securitised
Total 99.98%

OO 08. Segregated mandates or pooled funds

New selection options have been added to this indicator. Please review your prefilled responses carefully.
Provide a breakdown of your organisation’s externally managed assets between segregated mandates and pooled funds or investments.
Asset class breakdown
Segregated mandate(s)
Pooled fund(s) or pooled investment(s)

Total of the asset class

(each row adds up to 100%)

[a] Listed equity
100%
[b] Fixed income - SSA
100%
[c] Fixed income – Corporate (financial)
100%
[d] Fixed income – Corporate (non-financial)
100%
[e] Fixed income – Securitised
100%

08.2. Additional information. [Optional]

Note: The data included in this section have not been audited by an independent third party.


OO 09. Breakdown of AUM by market

09.1. Indicate the breakdown of your organisation’s AUM by market.

94.56 Developed Markets
5.03 Emerging Markets
.06 Frontier Markets
.36 Other Markets
Total 100% 100.01%

09.2. Additional information. [Optional]

Note: The data included in this section have not been audited by an independent third party. 


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