Rebirth 79: I opened a bank in the United States

Chapter 605 Variant Underwriting, Entering the Pioneer
Why must you choose to underwrite Vanguard's index fund?
The income is minimal, whether as an underwriter, or as a self-investing, self-holding institutional investor, Vanguard's S&P 500 ETF does not seem to be the best choice.

Regarding this point, Carter's idea is actually very simple. What is the easiest product to sell to financial novice customers?In the previous life, domestic banks had already given Carter the answer: principal-guaranteed products!
In other words, it is a product that claims to maintain capital, and in most of the time, it can indeed achieve capital preservation and appreciation!

This kind of wealth management product is the easiest for novices to accept!
After all, no one wants to lose their money.

Although in the United States, this financial market is more developed and the country with a longer financial history.There are far more gamblers than there used to be in the country, but just looking at the capital land of South Georgia, the market environment formed by those people is actually no different from the environment filled with a large number of financial novices in Carter's previous life.

Only the Vanguard Index Fund whose subject matter is all stocks in the market can give Carter the confidence and confidence to "preserve capital and increase value" wealth management products.

It's just that stubborn old man
"Julian, do you think that if I start one myself, or if you do it for me, I will also make a similar index fund."

"Don't even think about it!"

"Are you acting like a financial market?! Do what you want. Let me tell you, tigers are not positioned as pioneers. If we lose the temptation of high returns, the whole tiger will cease to exist. !"

Julian blew his beard, stared at Carter fiercely, and stared at Carter:

"Just like our name, we have been a tiger in the capital market since our establishment. We are constantly pursuing high returns and grabbing more market share. This is our entrepreneurial spirit. It is impossible for a tiger to do that kind of low-cost , and an extremely conservative investment strategy! My analysts are also a group of... Ha, terrorists in the capital market, guys who are afraid of chaos in the world."

"Can you imagine the consequences of letting a group of terrorist-like people with starving red eyes manage such a passive fund?!"

"Besides, they, no, including me, can't achieve Mr. Bogle's extreme cost reduction. Besides, after they came out of Wellington, they just met God. It's almost like a saint."

"Mr. Bogle is the founder of Pioneer, but do you think he is the big boss of Pioneer?"

"no!"

"Pioneer does not have a so-called big boss. Their shareholding structure is their fund share. In other words, their shareholders are all investors, and the fund share is linked to the company's shareholding. Go out and look around, search all over Wall Street, and search all over the United States. , only the Pioneer family is doing this!"

"The SEC's previous investigation of Pioneer was aimed at this problem. They were even not allowed to do this at one time. Of course, a special license has been re-issued now. But under this equity structure and rules, what Mr. Bogle can get in Pioneer There is only one income based on the position, such as the salary of the fund manager, and the income generated by the share invested in Pioneer.”

"I did a simple calculation. Based on Bogle's current situation, how much money can he invest? Three hundred thousand, five hundred thousand? This is incredible. According to the market's growth rate, he can earn tens of thousands of dollars a year at the top. Plus the salary. All year round, the income is less than [-], and you have to invest a lot of money yourself, just to do such a thing.”

"I don't have such lofty goals as him! I earn such a little money a year, sorry, I'm a layman!"

"I am too, so who isn't?!"

Carter helplessly supported his forehead, and indeed took it for granted.
No matter what people say, Bogle is also a high-achieving student at Princeton, and was once the helm of a large-scale investment management company.It's still young
There is usually a term for this kind of people: genius!
Talented, rich experience, coupled with the kind of persistent belief or pursuit that Carter doesn't know how to evaluate, has allowed him to create today's pioneer, such a most suitable goal.

As long as someone else does it, he has a huge amount of funds, but his income is only a little bit bigger.Who did this? !

Either corruption, or salary increases, plus commissions, or the pursuit of radical strategies.No matter which one, this fund will definitely not do well, at least, it will not be the opponent of Pioneer
"Oh, I'd better talk to him!"

Carter shook his head and sighed:

"If it doesn't work, I will play around the edges. For example, my bank, as an institutional investor, holds their shares. Based on these shares, we issue our wealth management products and sell them to customers. It is nothing more than using the proceeds of the Vanguard Index Fund , to pay for the income of wealth management products, and the money sold by this wealth management product is used to purchase the cost of Vanguard Fund shares.”

"In this way, I am not considered an underwriter, am I? It will not affect the pricing strategy of Vanguard Fund. After all, we are selling different things."

"This is a good way. I remember that you have a good relationship with the FDIC on your side. As long as they acquiesce, you can really do this! But the difference in the process, and the loss when the market falls, you should think about it carefully!"

"Well, I know."

carter nodded
After all, there are not many periods when the market falls.Moreover, Carter clearly knew that after entering the 90s, U.S. stocks would usher in a period of rapid rise.
Even if you admit the loss and use your own funds to backfill the hole, in terms of funds alone, you should be making more money than you are losing.However, when the market fell, that is, the so-called cold market environment, I still insisted on the principle of honesty and paid the agreed benefits to customers as scheduled. This addition to the bank's word-of-mouth and credit rating is basically an intangible benefit!
And, not small!
When Carter narrated this unconstrained thinking to the little old man John Bogle, the little old man was obviously taken aback.
This... How can you still play like this? !
Although, John Bogle knew very well that Carter was still taking the path of an underwriter, the so-called middleman who made the difference.However, the name Carter promoted was institutional investors.
I'm just here to buy your fund shares, aren't you short of investors? The financing target of 1976 million US dollars set at the time of the first issue in 1.5 has only reached the edge of [-] million until now.
No way, although John Bogle's algorithm is very good in theory, and the transaction fee rate is also jaw-droppingly low, but who let it go, the S&P 500 index has
You can't say that it has been falling, but its increase has lost to the income of almost most active funds.

At this time, when Carter came to Pioneer, waving the flag of [-] million dollars, even if he knew what kind of ghosts Carter was thinking, it was difficult for John Bogle to say the words of rejection.
"Are you sure you don't want to sell wealth management products or fund shares in the name of Pioneer? If you promise me that you won't use any name about Pioneer Pioneer in the publicity, or sell our fund shares to earn the difference, Then I would like to thank you for your trust in us, and congratulate you for becoming the largest investor and the largest shareholder of Vanguard.”

(End of this chapter)