The Vanguard Group Essay -- essays research papers

The avant-garde GroupFour C AnalysisCompany The knife edge Group, headquartered in valley Forge, PA, is the nations second- medium-largest interchangeable descent and a leading provider of company-sponsored retirement plan services. Vanguard serves come 18 meg shareowners scores and manages approximately $850 jillion in US usual fund asssets, including more than $260 one thousand million in employer-sponsored retirement plans. Vanguard offers 130 cash in hand to US investors and 40 additional specie in foreign markets.Vanguards corporate structure creates two major benefits for its shareholdersTremendous cost savingsServices with an unwavering client focusAdmiral Shares were introduced by Vanguard in November 2000 to recognize and encourage the cost savings associated with large and long-tenured accounts by passing along these savings to these shareholders in the form of dispirit fund expense symmetrys. Vanguard is simplifying the eligibility criteria for Admiral Share s and lowering the account parallelism requirements, effective May 10, 2005.Under the new criteria, a Vanguard shareholder owning a regular or IRA account will characterise for Admiral Shares under the following circumstancesThe fund account parallelism totals $100,000 or more. (Previously, a balance of $250,000 was required, or a $150,000 balance in a fund account established for at least terce years.) The fund account balance totals $50,000 or more and the fund account has been established for at least ten years. (Registration for online account access on Vanguard.com is also required.) CompetitionfaithfulnessAmerican FundsIn August, Fidelity voluntarily capped expenses on its domestic equity index funds at 0.1 percent, undercutting fees on similar offerings from Vanguard. By making its index mutual funds the cheapest on the market, Fidelity has issued a challenge to Vanguard, and thrown up a significant hurdle for the indexing expert. And the change may easily keep some asse ts under the Fidelity roof. The firm has added $2 billion in new index assets since its initial reduction in fees. However, Fidelitys $10,000 borderline may put off some new investors. ConditionWith groin Street entering an era of slower earnings growth, every cent o... ... market has also been rocked lately by several scandalsinvolving improper mutual fund trading. Over the past year, a dozen mutual-fundcompanies have concur to pay nearly $2 billion in fines. (not Vanguard)Fact yellow journalismCompany name The Vanguard Group Corporate headquarters Valley Forge, Pennsylvania Founded May 1, 1975 First fund Wellington Fund (inception epoch July 1, 1929) Offices Valley Forge, Pennsylvania Scottsdale, Arizona Charlotte, North Carolina Melbourne, Australia Brussels, Belgium Singapore Tokyo, Japan come assets Approximately $850 billion in U.S. mutual funds (as of 05/31/2005) hail of funds 130 domestic funds (including variable annuity portfolios) 35 additional funds in internatio nal markets come up of investors 18 million institutional and individual shareholder accounts Chairman and CEO John J. Brennan Number of employees (crew) More than 10,000 U.S.-based Largest fund Vanguard 500 Index Fund$104 billion (Admiral and Investor share classes, as of 5/31/2005) Aggregate expense ratio 0.23% (expenses as a percentage of 2004 average complex net assets) mailing address P.O. Box 2600, Valley Forge, PA 19482 Website address www.Vanguard.com