Morningstar honors Vanguard with first exemplary stewardship award

May 10, 2019

 

Vanguard CEO Tim Buckley yesterday accepted the 2019 U.S. Morningstar Award for Investing Excellence for Exemplary Stewardship at the Morningstar Investment Conference—one of the three top honors presented by the firm. Vanguard is the inaugural recipient of the award, which recognizes the asset manager that has shown an unwavering focus on serving the best interests of investors.

"We are pleased to receive this honor from a firm we respect and admire, and one who is like-minded in the service to investors," said Buckley. "The award is a testament to Jack Bogle's vision: Creating a company owned by its clients1 and operated solely in their interests. This same spirit of insurgency and client focus that inspired the formation of Vanguard four decades ago will continue to guide our work today and in the future."

Vanguard has sought to serve investor interests by espousing long-term, balanced, low-cost investing; offering sound and sensible investments; serving as a voice for investors in Washington and in corporate boardrooms; and providing thoughtful research and perspective. Since its founding on May 1, 1975, the firm has emerged as a leading global asset manager, with more than $5.4 trillion in assets under management.

Vanguard has continuously embodied its mission of taking a stand for all investors, treating them fairly, and giving them the best chance for investment success. The company has expressed strong support for an SEC proposal to help investors make more informed investment decisions through more clear and succinct fund disclosures. Most recently, Vanguard advocated for greater boardroom diversity and other governance "best practices." In addition, Morningstar spotlighted Vanguard in a previous report: Partnering With Passive Fund Sponsors That Have Your Back: What to look for in passive parents.

Besides these recent examples, Vanguard has a long history of client centricity. Vanguard has closed top-performing funds and turned away "hot money." The firm frequently cautions consumers about the risks of investing and warns them about questionable investments and industry practices. Vanguard is also a vocal proponent of investor education and supportive of several investor literacy efforts.

Exemplary Stewardship Award methodology

Morningstar conducts in-depth qualitative analyses to select nominees and, subsequently, votes to determine the award winner. To qualify for the award, the firm must have received a Parent pillar rating of "positive." The Parent pillar rating measures the quality of a firm's care of investors' capital. The firms must demonstrate an investor-focused corporate culture and an alignment of interests between investors and the people who control the destiny of the investment strategies.

1 Vanguard is client-owned. As a client owner, you own the funds that own Vanguard.

Notes:

  • All investing is subject to risk, including the possible loss of the money you invest.
  • Morningstar's Manager Research Group consists of various wholly owned subsidiaries of Morningstar, Inc., including, but not limited to, Morningstar Research Services LLC. Analyst Ratings are subjective in nature and should not be used as the sole basis for investment decisions. Analyst Ratings are based on Morningstar's Manager Research Group's current expectations about future events and therefore involve unknown risks and uncertainties that may cause such expectations not to occur or to differ significantly from what was expected. Analyst Ratings are not guarantees nor should they be viewed as an assessment of a fund's or a separately managed account's underlying securities' creditworthiness. This press release is for informational purposes only; references to securities or a separately managed account investment strategy in this press release should not be considered an offer or solicitation by Morningstar to buy or sell those funds.

 

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