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The Vanguard Group, Inc.

PRI reporting framework 2020

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 management 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, Vanguard is owned by the U.S.-domiciled funds, which in turn are owned by their investors. This unique structure aligns our interests with those of our investors. It drives our culture, processes, and philosophies worldwide. That alignment means we’re free to manage our clients’ investments on their behalf, since we don’t need to generate returns for outside owners or public shareholders. So whenever our funds outperform the competition, Vanguard investors keep more of the returns they earn on their investments.

Stability and experience: Superior performance is an important goal, but how a company arrives at that goal is just as important. At Vanguard, our focus on the long-term needs of our clients requires us to take a disciplined approach to managing their assets. And this discipline means we never take on undue risks with our investors’ money or compromise our integrity for short-term gain. Instead, we design and manage enduring, high-quality investments that can generate superior, sustained performance over time.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: We also use our global scale to continually lower the cost of our investments. For us, lowering costs isn’t a short-term tactic; it’s how we do business. It’s been that way since we began, and our commitment to driving down costs remains strong. And research shows that lower-cost investments outperform higher-cost alternatives—which means that the more we drive down costs, the better investors’ chances for investment success.

Client-first culture: Rather than being publicly traded or owned by a small group of individuals, Vanguard is owned by the funds, which in turn are owned by their investors. This unique structure aligns our interests with those of our investors. It drives our culture, processes, and philosophies worldwide.That alignment means we’re free to manage our clients’ investments on their behalf, since we don’t need to generate returns for outside owners or public shareholders. So whenever our funds outperform the competition, Vanguard investors keep more of the returns they earn on their investments.

 

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).

17533 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 19 locations, 15 of which are 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 19 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.

31/12/2019

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 assets which are subject to an execution and/or advisory approach. Provide this figure based on the end of your reporting year

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 2019.

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% 60 <10% 8.3
Fixed income 10-50% 23.25 <10% 2.27
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% 1.23 0 0
Money market instruments <10% 4.38 0 0
Other (1), specify <10% 0.53 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
60 SSA
10 Corporate (financial)
15 Corporate (non-financial)
15 Securitised
Total 100%
Externally managed
15 SSA
20 Corporate (financial)
45 Corporate (non-financial)
20 Securitised
Total 100%

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.

93.56 Developed Markets
5.9 Emerging Markets
0.07 Frontier Markets
0.47 Other Markets
Total 100% 100%

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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