What makes Vanguard different?Stability and experience | Low-cost investing | Client focus

The value of investments, and the income from them, may fall or rise and investors may get back less than they invested.

The Vanguard Group, Inc.’s unique mutual structure aligns our interests with those of our investors and drives the culture, philosophy and policies throughout the Vanguard organisation worldwide. As a result, UK and European investors benefit from Vanguard’s stability and experience, low costs and client focus.

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Why Vanguard?

What makes us different?

What sets Vanguard apart – and lets Vanguard put investors first around the world – is the ownership structure of The Vanguard Group, Inc., in the United States.

Rather than being publicly traded or owned by a small group of individuals, The Vanguard Group is owned by Vanguard’s US-domiciled funds and ETFs. Those funds, in turn, are owned by their investors.

This unique mutual structure aligns our interests with those of our investors and drives the culture, philosophy and policies throughout the Vanguard organisation worldwide. As a result, UK and European investors benefit from Vanguard’s stability and experience, low-cost investing and client focus.

Stability and experience

In the UK and Europe, Vanguard leverages the scale, experience and resources of our established global business. Vanguard’s ownership structure means that our clients don’t have to worry that we’ll be acquired. The company they invest with today will continue to serve them in the future.

The Vanguard Group 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. The Vanguard Group also launched the first funds based on bond and international indices, and over the last decade has extended its index management expertise to exchange-traded funds.

Low-cost investing

Investors can’t control the markets, but they can control the costs of investing. Providing low-cost investments isn’t a pricing strategy for us. It’s how we do business.

We can keep costs low because of our unique ownership structure in the United States, which allows us to return profits to investors through lower costs.

Vanguard’s scale also helps to keep costs low. As our assets under management increase globally, we can reduce expense ratios for the investors in our funds.

Client focus

The ownership structure of The Vanguard Group 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 in the UK and Europe.

From rigorous risk management to transparent pricing to plain talk communications, we put our clients’ interests first.

Everything we do at Vanguard is designed to give our clients the best chance for investment success.

Our core purpose

To take a stand for all investors, to treat them fairly, and to give them the best chance for investment success.

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The Vanguard story

Vanguard was founded in the United States in 1975 on a simple but revolutionary idea: that an investment company should manage the funds it offers in the sole interest of its clients. Over the decades, Vanguard has grown to become one of the world’s largest investment management companies, with a presence in Australia, Europe, Asia and the Americas.

1975 The Vanguard Group, Inc. began operations

1976 Vanguard opened the first index mutual fund available to individual investors in the United States

1986 Launched the first bond index fund

1990 Introduced the first international stock index funds in the United States

1998 European business launched with offices in three European countries

2000 Established office in Tokyo

2001 Offered Exchange Traded Fund (ETF) share class for many Vanguard funds in the United States

2002 Launched Financial Advisor Services team in the United States

2004 Established office in Amsterdam

2005 Established office in Paris

2006 Surpassed $1 trillion in global assets under management

2008 Established office in Zurich

2009 Opened Vanguard Investments UK, Ltd., in London and launched UK-domiciled funds

2011 Began managing assets in London

2012 Launched a series of European ETFs

2012 Surpassed $2 trillion in global assets under management, including $205 billion in ETF assets

2013 Expanded the European ETF range; assets under management outside the US totalled nearly $200 billion

2014 Surpassed $3 trillion in global assets under management

2015 Surpassed $100 billion in European assets under management

2016 Launched four UK-domiciled active funds

2017 Surpassed $4 trillion in global assets under management

2018 Established office in Frankfurt

2019 Surpassed $5 trillion in global assets under management

Championing investor interests

We champion investors’ interests in everything we do. We think every investor deserves clear, straightforward communications.

It starts with how we communicate – Plain Talk™ – straightforward language that’s easy to understand and explanations that leave nothing out.

No ‘ifs’, no ‘buts’, no jargon. Just plenty of facts, clearly presented and right upfront where investors can see them.

Principles for investment success

Successful investment management companies base their business on a core investment philosophy and Vanguard is no different. Although we offer many specific strategies, an overarching theme runs through the investments we provide: focus on those things within your control.

These principles have been intrinsic to our company since its inception and they are embedded in its culture. For Vanguard, they represent both the past and the future – enduring principles that guide the investment decisions we make.

Create clear, appropriate investment goals

Investors should set measurable and attainable investment goals and develop plans for reaching those goals. They should evaluate their plans on a regular, ongoing basis.

Develop a suitable asset allocation using broadly diversified funds

A successful investment strategy starts with an asset allocation suitable for its objective. The use of diversified investments helps to ensure against exposure to unnecessary risks.

Minimise cost

Every pound or euro that investors pay in management fees or trading commissions is a pound or euro less of potential return. Investors can’t control the markets, but they can control the effects of costs.

Maintain perspective and long-term discipline

Investing evokes emotion that can disrupt the plans of even the most sophisticated investors. Discipline and perspective can counter that emotion if the investor adopts a systematic approach to investing that applies the principles of asset allocation and diversification – and then sticks to it.

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Investment Risk InformationThe value of investments, and the income from them, may fall or rise and investors may get back less than they invested.

Important Information

Vanguard Asset Management, Limited only gives information on products and services and does not give investment advice based on individual circumstances. If you have any questions related to your investment decision or the suitability or appropriateness for you of the product[s] described in this document, please contact your financial adviser. The material contained in this document is not to be regarded as an offer to buy or sell or the solicitation of any offer to buy or sell securities in any jurisdiction where such an offer or solicitation is against the law, or to anyone to whom it is unlawful to make such an offer or solicitation, or if the person making the offer or solicitation is not qualified to do so. The information in this document does not constitute legal, tax, or investment advice. You must not, therefore, rely on the content of this document when making any investment decisions.

Issued by Vanguard Asset Management, Limited which is authorised and regulated in the UK by the Financial Conduct Authority

Issued by Vanguard Investments Switzerland GmbH

© 2019 Vanguard Asset Management, Limited. All rights reserved.

© 2019 Vanguard Investments Switzerland GmbH. All rights reserved.

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