Interesting changes to Vanguard's disclosures following John Bogle's death: https://www.philly.com/columnists/john-bogle-vanguard-scraps-plain-talk-no-profit-at-cost-20190207.html
On Jan. 25, nine days after Bogle’s passing, in a new filing for another batch of funds, Vanguard had stripped out most of that language, leaving just this shorter note on Page 15:
"The Vanguard Group is owned jointly by the funds it oversees and thus indirectly by the shareholders in those funds. Most other mutual funds are operated by management companies that are owned by third parties—either public or private stockholders—and not by the funds they serve.”
In the new filing and other current Vanguard statements to the SEC and investors, there are:
No more claim that Vanguard is a “mutual mutual," a legal status not recognized under federal securities laws. Insurance companies, savings banks, farm cooperatives, credit unions and individual mutual funds can be organized as enterprises where customers are owners and have specific rights, but there aren’t similar laws for investment companies or fund groups. No more claim that Vanguard’s way offers a “no profit" contrast to the “profit component” that other companies pack into their management fees. Indeed, company officials acknowledge it is a private, for-profit company that earns profits and pays income taxes. No more claim that Vanguard operates “on an at-cost basis," as if the funds charge the affiliated management company only what it costs for fund services, without the usual business overhead and profit margins.
Submitted February 07, 2019 at 01:02PM by this_shit http://bit.ly/2HZauPl
