Vanguard

Vanguard creates value by pooling client assets into investment products and managing those assets at scale across index and active strategies, retirement solutions and advisory services. Its business model depends on attracting and retaining assets under management, using operational scale and a low-cost positioning to gather more client assets, and then monetising those assets through recurring fees and related service revenues.

Vanguard is a US-based investment management group best known for mutual funds, ETFs, retirement products and advisory services. It generates revenue primarily from asset-based fees and related advisory or service fees charged across its investment and wealth offerings. Its customer base spans retail investors, financial advisers, retirement plan sponsors and institutions.

The company’s ownership model is unusual: it states that it is owned by its member funds, which are in turn owned by fund shareholders. This structure supports its long-standing low-cost positioning. Vanguard has also expanded its personalised wealth capabilities through the acquisition of Just Invest, adding tax-managed and direct-indexing technology to its adviser and intermediary offering.