The Vanguard Group is an unique and very special kind of investment management company. This is because Vanguard is owned by Vanguard funds, which in turn are owned by investors and clients like us. Under this unique and one-of-a-kind structure, Vanguard must operate “at-cost” – it can charge the funds only enough to cover its cost of operations.
Since Vanguard is not publicly traded, it can stay focused on the long term, which will improve services and most importantly, REDUCE COSTS for its client which are also its owners.
That’s how we’ve been able to keep lowering the costs of investing ever since our launch in 1975. In fact, our presence has created what’s been called “the Vanguard effect”. As we enter new markets around the globe, other investment companies have responded by cutting their fees to compete.
Vanguard has already set up shop in Hong Kong in 2013 with the launch of one Hong Kong-domiciled exchange traded fund, followed by another three funds in 2014. Will they reach the shores of Singapore anytime soon?