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At Vanguard, not only are the assets owned by the shareholders. The manager itself is owned by the funds, and therefore by the shareholders. That's not the ca
by valleyer 2y ago
At Vanguard, not only are the assets owned by the shareholders. The manager itself is owned by the funds, and therefore by the shareholders.
That's not the case for a typical hedge fund.
- kgwgk 2y agoThat creates some interesting situations like charging too little: “VGI provides services to the Funds “at cost”, i.e., without charging an arm’s length profit. VGI is a C corporation and the Funds are Regulated Investment Companies (RICs) not taxable at the corporate level, so this situation results in avoidance of billions of corporate taxes.” https://papers.ssrn.com/sol3/papers.cfm?abstract_id=2666426 https://papers.ssrn.com/sol3/papers.cfm?abstract_id=2666426