Gmail - Vanguard and securities lending

Gmail - Vanguard and securities lending
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https://mail.google.com/mail/?ui=2&ik=2053465860&view=pt&q=vangu...
Marc J. Ryan Ryan <[email protected]>
Vanguard and securities lending
3 messages
Independent Investor <[email protected]>
To: [email protected]
Bcc: marc ryan <[email protected]>
Thu, Sep 15, 2011 at 4:47 PM
Rebecca
I publish a site on investing for Canadian do-it-youself investors: IndependentInvestor.info and
InvestisseurAutonome.info .
I have written (very positively) about Vanguard in the past (see The Vanguard Group, Inc. and Canadian investors)
and am delighted that Vanguard ETF's are coming to Canada.
In that regard I have a question. In the US Vanguard has stated that securities lending profits are returned to the
fund, contrary to the practices of most other fund managers:
Vanguard returns all net lending revenues—after subtracting program costs, agent fees, and any broker
rebates—back to the funds.8 These securities-lending practices help ensure a superior risk–reward trade-off inthe
best interests of Vanguard’s clients. See p. 8 of Vanguard
Will Vanguard follow the same approach in Canada?
Marc J. Ryan, founder and publisher,
IndependentInvestor.info
Be smart: index invest. For why, see below:
-
Investir de façon indicielle: c'est intelligent.
Pour savoir pourquoi, voir ce qui suit:
www.independentinvestor.info - www.investisseurautonome.info
www.linkedin.com/in/independentinvestor
www.twitter.com/DIYInvestor - www.twitter.com/Investautonome
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[email protected] <[email protected]>
To: Independent Investor <[email protected]>
Mon, Sep 19, 2011 at 4:29 PM
Hi, Marc:
Thank you for your kind words of support! We are very pleased to be in Canada and looking forward to the launch of
our first suite of ETFs and then subsequent additions over time.
Yes, globally we follow the same approach, returning securities lending revenue back to the funds. And of course,
we have an extremely conservative sec lending practice, limiting the amount of lending that we do and requiring
13/03/2012 4:36 PM
Gmail - Vanguard and securities lending
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https://mail.google.com/mail/?ui=2&ik=2053465860&view=pt&q=vangu...
over-collatalization from borrowers. Since we're not pocketing any of the revenue, there really is no incentive for us
to take undue risks with our client's assets - we only do it where we can add incremental value in a very
risk-controlled way.
Maybe this paper is of interest?
https://advisors.vanguard.com/VGApp/iip/site/advisor/researchcommentary/research/article/IWE_InvResFreeLunch
Let me know if I can be of future help - would you like me to add you to my press list?
Rebecca
--------------------------------Rebecca Katz
Principal -- Public Relations
Vanguard
work- 610.503.2273
mobile - 484.947.3956
www.vanguard.com/pressroom
Independent Investor <[email protected]>
Sent by: [email protected]
09/15/2011 04:47 PM
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Subject Vanguard and securities lending
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Independent Investor <[email protected]>
To: [email protected]
Bcc: marc ryan <[email protected]>
Mon, Sep 19, 2011 at 4:54 PM
Rebecca
Thank you for your quick and clear reply.
Please add me to your press list.
Marc Ryan
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-Marc J. Ryan
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13/03/2012 4:36 PM
Gmail - Vanguard and securities lending
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https://mail.google.com/mail/?ui=2&ik=2053465860&view=pt&q=vangu...
13/03/2012 4:36 PM