Vanguard Leadership Development Programs’ case club event
When I became a manager in Vanguard’s rotational Leadership Development Programs, I heard about a very special week in April called Leadership Week. After just a few weeks in my role, I started to receive intriguing invitations to events like Case Club, Inclusion, and a Fireside chat with our CEO Tim Buckley. Additional invites followed for teambuilding activities and fellowship, where I would get to meet and build relationships with all the participants across our development programs – Investment Management, Acceleration into Financial Professional, Emerging Leader, Technology Leadership, Financial Advisor, and MBA. To say I was excited was an understatement!
After I enthusiastically accepted all of the invitations, I received the wonderful news that I was chosen to be a Team Advisor for our day long Case Club event. I will admit, my first question was – what exactly is Case Club? Case Club is a day dedicated to defining and analyzing the problem of a chosen case. Crew from our leadership development programs work in teams to make creative recommendations for a particular case, and then present their findings to a panelist of tenured Vanguard leaders and our MBA program participants. Building relationships, tons of learning, team building AND a catered breakfast and lunch? Sign me up!
As a Team Advisor, I have to be honest – my team rocked! Renamed Team 1.06, for their extraordinary skill and speed during our teambuilding event, my team was compiled of crew from all three US Vanguard sites (PA, AZ, and NC) and multiple programs. Overall, I was impressed with the caliber of thought leadership and collaboration of all participants.
Lindsey G. shared her experience, “Diversity in all aspects is an asset for any company, and Case Club is an incredible example of how Vanguard values this mindset. With a variety of backgrounds, knowledge, and experiences, it was a true privilege to brainstorm in such a comprehensive way.” Claire B. echoed, “I especially appreciated the opportunity to work with and learn from my peers in the other specialty programs across all three of Vanguard’s US offices. The seven of us were able to tackle our business case from many angles because of our unique experiences and interests.” I couldn’t agree more with these participants! I was in awe to observe this exceptional group of crew build enriching and positive relationships, leverage their subject expertise with humility, and take a partnered team approach to the problem, all the while still able to challenge ideas and solutions.
As a Leadership Development Program manager, I especially appreciated seeing the level of participant confidence continue to build throughout the day as teams’ analyzed the case and built their final presentation. Kyle C. shared, “The highlight of the case study for me was walking out of the presentation and the team unanimously agreed that it went even better than we had practiced.” Verity F. added, “The opportunity to enhance our ability to present, appreciate, and respectfully debate ideas will be invaluable as we move forward with our careers at Vanguard.” David M. summed it up best, “Case club was definitely the highlight of my week!”
The entire development program leadership team strives to provide a positive learning environment where our crew can be constantly challenged through developmental and growth experiences while they navigate their career path within Vanguard. Matt J. shared his perspective, “As a member of the MBA Leadership Development program I had the opportunity to sit on a panel and listen to presentations from groups made up of all the Vanguard programs. It provided me an insightful opportunity to get into the brilliant minds of our crew. I had several “lightbulb” moments as they walked me through their thought process and decisions when solving specific challenges. I am grateful for the opportunity I had to participate, and look forward to sharing some of the new ways of thinking I observed with those that I work with every day.”
Lindsey G.’s final reflections are a true testament to Vanguard’s culture of building relationships, teamwork, and creative problem solving, “Sure, we will remember certain parts of the case, but I will never forget my extremely talented teammates and our ability to work together so well towards a common goal.” Way to go Case Club participants! It was an honor and a privilege to coach, support and lead our participants throughout the day.
-Lynda C.
If you enjoyed this post, check out more from our #LifeatVanguard Blog. And if you’re ready for a more rewarding, engaging, meaningful career, learn more about our Leadership Development Programs at www.vanguardjobs.com.
The brain of an engineer, the heart of an advisor
Growing up, toy blocks ruled my world. Spaceships, sky scrapers, submarines – you name it, I built it. So… it came as no surprise to Mom when I declared I wanted to be an architect when I grew up. It made a lot of sense why I would choose this profession. I was the kid who was passionately curious about everything. The kid who asked for tools as Christmas gifts. The kid who hooked up the VCR at age 4. I was also the kid who took all the screws out of the dining room table, resulting in us ordering takeout that night. I had the brain of an engineer, the soul of an artist, and a mother at her wits’ end. Fast forward to 2007. High school was in my rear view mirror and I was heading off to college to study the works of Frank Lloyd Wright, Zaha Hadid, and I. M. Pei. When grades were posted over winter break, Mom’s flashbacks of my childhood antics slowly dissipated after seeing a 3.6 GPA. I finished out the rest of my freshman year strong and had one of my designs featured in our school’s newspaper. Despite all of the hard work and long road ahead of me, I was feeling good about my decision to study architecture. In the fall of 2008, things started to feel different. Internship postings on our school’s career website began disappearing, newspaper headlines warned of troubling times in the housing market, and I could see an uneasiness in almost every adult I knew, including Mom. By the end of the year, the S&P 500 was down nearly 40%, the unemployment rate was on its way to doubling, and the world was in a panic.
My engineering mind needed to know what was happening and more importantly, WHY? I began reading financial websites, looking for answers. After asking almost every adult I knew “what’s going on?” I discovered that no one, other than those who had a hand in it, knew what was happening. When the market finally bottomed in March of 2009, the mystery was over. The subprime mortgage lending business, the securitization of risky bank products, and Wall Street’s greed led to the greatest recession of our modern world. It would take years for the economy and housing market to recover. My dream of becoming an architect was over.
In the fall of 2009, I did what every logical 19 year old would do after a global financial meltdown. I changed my major to finance. I wanted those around me to have a resource to lean on for financial help. After a few semesters, I learned about the world of personal finance and was again energized to make a difference. It wasn’t until a college professor assigned The Little Book of Common Sense Investing by John Bogle that I realized how murky the waters of financial planning were. Virtually anyone could market themselves as an investment advisor as long as they had a nice suit, firm handshake, and knew a joke to put your mind at ease. So what could I do about it?
Stay tuned for Part 2, where I share how I met the man who changed the investment world and inspired me to join Vanguard.
-Gary S.
If you’re seeking an environment where you can make a difference and develop professionally, learn about our careers at www.vanguardjobs.com.
One company, multiple careers
Going on my 19th year at Vanguard, I have had some time to reflect on all of the wonderful challenges and opportunities Vanguard has provided for me since I started in 1999. When I tell others how long I have worked at Vanguard, many are surprised that I have stayed in one place for my entire career. What they don’t understand is that I have changed careers multiple times without having to leave a company whose mission continues to motivate me each and every day. Vanguard is different than many other companies as we harness a rotational culture, where you continue to build on skills and stretch yourself to learn new areas of the business. In addition to business rotations, Vanguard also offers many opportunities to earn advanced degrees and credentials, building deeper expertise along the way.
The first ten years of my career were spent in our Institutional business, where we serve retirement plan sponsors. While learning about the world of 401(k)s and 403(b)s, I was able to gain so much experience. I’ve worked on projects with IT, building new technology for our plan sponsors and participants, I’ve developed an expertise in fund accounting, I’ve learned to interpret stable value contracts (not the most exciting reading material if you were wondering!), and lastly—I’ve dug into how mutual fund distribution takes place across the industry each day. But there’s more. Over that time, I also had the opportunity to further my personal development by taking my education a step further. I completed my MBA and earned a retirement industry credential.
At that point in my career, I was ready for a change and decided to post for a role in our Financial Advisor Services division, a completely new business area for me. I was offered a role as Chief of Staff to the Managing Director of the division, which enabled me to see how strategic decisions are made by leaders every day at Vanguard. I was exposed to new investment products, and was responsible for investment, technology and talent development projects. It was an incredible learning opportunity, which came with a lot of risk but also so much reward. I went on to a Quality Champion role for the same division, where I learned more about process improvement techniques. It was in this role that my career path would change unexpectedly again.
One of the senior leaders I met through the Quality Champion role approached me with a unique opportunity to lead a transformation of a large operation in a group that is now known as Personal Advisor Services (PAS). I had never run a business transformation before, let alone a large business unit. But I knew I could do it. A year and a half later, PAS was up and running, and everyone was in the right seats and with a defined role in the department! What an awesome and challenging experience. Did I mention that I also had to take four licensing exams?
Since I was back in “study mode,” and surrounded by other financial planners, I decided to pursue yet another learning opportunity, and enrolled in a program to obtain the Certified Financial Planner® designation. I was studying so much in those couple of years that my daughter wrote about it in my Mother’s Day card! It had not dawned on me that she saw me working hard and studying, and that even though I had graduated a while ago, I was never done learning. In fact, I am now back in a client facing role, leading one of our Personal Advisor teams in PA, and proud to be part of the 23% of Certified Financial Planner®s who are women.
One of my favorite quotes is from the hockey legend Wayne Gretzky: “You miss 100% of the shots you don’t take.” Some of the moves I have made in my career scared the heck out of me, but were also some of the best experiences I have had, and came with opportunities to grow and enhance my skills and expertise. I’ve never regretted taking the initial leap to join Vanguard or any of the steps on my career journey that followed, and can’t wait to see how the rest of my path unfolds.
-Marissa B.
If you’re seeking an environment where you can make a difference and develop professionally, check out our career opportunities at www.vanguardjobs.com.
Why I got rid of my five year plan
In March of 2008, two months before my college graduation, I had the perfect five year plan. I was a Business Management major with a passion for the sports industry, working part time with a sports marketing agency while finishing college. I loved the work, and planned to sign on full time after graduation. But then, 2008 happened. As the banking and housing markets collapsed, companies that seemed secure and booming started to crumble. My five year plan disappeared as the marketing agency closed their doors. After a summer of re-imagining my five year plan, on October 6th, 2008 I walked in to Vanguard with no financial acumen and a plan to be back in the sports industry as soon as possible. Hopefully within five years.
I spent my first two years working with our 401k plan participants. My financial acumen grew and my customer service skills were refined. One day, three different people sent me a link to an internship opportunity in another division. Three different people said “you’d be perfect for this – you should apply”. So I did. And I got it. My five year plan started to get fuzzy.
My internship turned into a full time opportunity, and I spent my next three years supporting Sales Executives and Client Service teams who served international clients. It was a very different role and I learned so much and worked on things that five years prior I never knew existed.
And then it happened again – the emails. Leaders and friends from my current and previous role forwarded me an opportunity back in the division I started in–supporting the teams who worked with the companies that used Vanguard as their 401k provider. Those words again – you’d be a perfect fit. So I applied, and again, I got it. Five years in to my Vanguard career I was on to role number three. It became time to officially throw out my five year plan, and build a career within a company and industry I have grown to love.
Two and a half years later it was like déjà vu and I found myself in our Retail division, where I am today. In two years I’ve held three very different roles that have stretched my potential.
In a few short months I will celebrate my ten year anniversary with Vanguard and purposely do not have a five year plan. Why? Because the last ten years have taken me in a direction I never would have planned – and I have loved every minute of it.
Although I’m not in the industry I thought I’d end up in, every role I’ve had has completely aligned with my skills and led me to new and exciting things (and people!). My leaders, mentors, and the genuine friends I have made continue to play an active part in my career and I imagine will do so for a long time.
As I plan my next five years, I’m not thinking about a destination – I’m thinking about how I can continue to grow and am always open to the possibility that my strengths could lead me down a path I never could have planned.
-Lauren T.
If you enjoyed this post, check out more from our #LifeatVanguard Blog. And if you’re ready for a more rewarding, engaging, meaningful career, search our opportunities at www.vanguardjobs.com.
What differentiates us from other data science teams?
“Data scientist” has become a top career choice, but with all the buzz surrounding this term, lots of questions arise such as: Who are they? What do they do? Well, here’s your opportunity to hear my perspective as a Data Science Manager at Vanguard! To me, a Data Scientist is anyone who can solve business problems by: You may have already done those tasks, but what differentiates a modern Data Scientist from a more traditional one? Increasingly, we seek candidates who can manage large volumes of unstructured data and navigate sophisticated mathematical structures while taking advantage of powerful technology.
Here are some common questions we’ve received from candidates:
1. What’s it like to work at Vanguard? Vanguard is an investment management company and our core purpose is “To take a stand for all investors, to treat them fairly, and to give them the best chance for investment success”. Vanguard’s unique ownership structure — the company is owned by its funds — means there are no conflicts of interest. So we always ask: “Are we doing the right thing for our investors?” whenever we make any decision, whether it’s about a product launch, sales, or marketing. Working at Vanguard is great because crew alignment to the mission naturally leads not only to success for our clients, but also to a great work culture.
2. What kind of problems do you usually solve? I work in the Center for Analytics and Insights at Vanguard. We help our internal business partners serve their clients better by providing analytics-driven insights to support the client life journey. This includes winning new clients, onboarding them, and deepening engagement in the relationship to retirement and beyond. My data science team uses mathematical, statistical, and machine learning approaches to answer business questions related to financial professionals, institutional investors, retirement plan participants, and investment products.
3. Will I have an opportunity to grow my career? I’ve been at Vanguard for 10 years, and I can confidently say that I have grown professionally as well as personally during my tenure. I didn’t start my career as a Data Scientist, yet many growth opportunities were given to me to be prepared for my current role. Vanguard provides various opportunities to grow professionally, with a range of Data Science roles at different levels, support for ongoing learning, and opportunities to rotate to different teams. Vanguard can help you reach your goals. You should continuously push your own limit — individuals who have growth mind-sets will thrive at Vanguard.
So, what differentiates us from others? The entire company works toward one simple and clear goal of doing what’s best for our clients. We solve some of the company’s most complex and challenging problems using a mix of math, stats, and computer science skills. We bring diverse and innovative ideas and share them in a fun and collaborative environment. What else could you ask for as a talented Data Scientist?
-Mirim L.
If you’re seeking an environment where you can make a difference and develop professionally, check out our Data & Analytics career our opportunities at www.vanguardjobs.com.
How MLT gave me pride, purpose, and fulfillment
Management Leadership for Tomorrow (MLT) is a nonprofit organization that specializes in coaching, mentoring, and supporting Black, Latino, and Native American professionals from college to business school and beyond as they climb the corporate ladder. In this blog, Antonia S. shares her experience with the organization and what she gained from their partnership.
Why did you choose to participate in MLT?
Why MLT? Well that’s an easy one! I realized very early on in my college career that I needed more personalized coaching and mentorship as I tried to navigate my future career. MLT was more than that for me. It’s a family of professionals I can go to for guidance and advice on everything from career choices to my next travel adventures. They have helped me at every personal and professional turning point in my life.
What surprised you about the experience?
Once MLT family, always MLT family. One of the most initially surprising experiences as a member of MLT is how much other MLT alumni will go above and beyond to advise, help, support, and motivate you personally and professionally. While it is encouraged from the organization, I believe we find great pride, purpose, and fulfillment in being able to promote and uplift each other whenever and wherever possible. As a collegiate MLT 2010 Career Prep Rising Leader, I had no idea what opportunities, networks, friends, and family I would gain almost 10 years later.
What do you hope to gain from your relationship with MLT?
As a MLT Career Prep and Professional Development alum, I have already gained so much from MLT. As I transition post-MBA, I look to extend my relationship with MLT by giving back to the organization in the form of mentorship and recruitment. At this point in my life, my goal is to help grow and strengthen the MLT footprint to ensure we continue maximizing our impact across the world. We are only as strong as our alumni base, so it’s important to keep connected with other MLT alumni, ensuring we are doing what we can to further diversify and enrich organizations in need of top notch Black, Latino, and Native American talent.
What are your goals for the future?
My goal is to continue making long lasting impressions on families and communities that need it most. I will marry my education, operations, and leadership development background with my newly acquired financial literacy and advisory skills to help organizations and families better plan, grow, and save for their future and generations to come.
What have you learned from working towards an MBA?
It’s not what you know, but what you do with what you know, how you impact others with what you know, who you know, and do not know and mostly importantly how you manage the connections and drive change with each of these factors.
We all struggle with something – what have you learned from your challenges?
Faith, confidence, and grit go a long way and cannot exist without each other. In the last two years, I’ve lost a parent, experienced an injury during a trip to a foreign country, and survived a highly competitive recruiting season at an equally competitive school. Through all of that, I am reminded that one’s mindset is the foundation to weathering any storm. With faith, confidence, and grit at the forefront you can make it through anything.
What advice would you give those searching for a career?
One of my favorite Instagram comedians once said, “How is the sky the limit when there are footprints on the moon?” My first thought was that this guy is hilarious and how does he think of this stuff? My second thought was that this question promotes a very real message of how self-limiting we can be when dreaming big and setting high goals for ourselves.
One of the biggest life lessons I’ve learned is that you can never dream too big. Getting into Wharton was not an easy feat and I could not have imagined myself a graduate of their MBA program 10 years ago. However, now as a Wharton 2018 graduate, I know this will not be my biggest accomplishment but a stepping stone to something far greater than I could imagine.
If you’re seeking an environment where you can make a difference and develop professionally, learn about our MBA career opportunities at www.vanguardjobs.com.
A lifetime of opportunities to lead, grow, and impact others
It was 1999. I was just finishing up my college degree, and was stuck at a crossroad, trying to decide where I wanted my career to go. I knew I wanted to be involved in a company with a rich culture, strong leaders, sound values, and growth opportunities galore – easy enough, right? When I came up dry with opportunities, my mentor recommended I look into Vanguard.
Finding a core purpose at Vanguard
My first few years at Vanguard were spent solving investment puzzles for shareholders who had encountered account-related issues. Working as a Resolution Associate in the Service Recovery organization gave me the opportunity to support clients with account-related issues. I could see the purpose in my work, as well as the positive impact I made on each client. And, I learned to embody Vanguard’s core purpose: To take a stand for all investors, to treat them fairly, and to give them the best chance for investment success. It was fascinating to research each issue and get to the root of the problem. Even more thrilling was the opportunity to offer solutions for our clients.
While I loved working in Service Recovery, I decided to explore new horizons, and research different career options at Vanguard. One path I hadn’t expected to find myself in was leadership. When one of my leader’s noticed my passion for continuous improvement and knack for supporting professional development among my peers, they suggested I pursue a role in people leadership. What a great opportunity this was – Vanguard was investing in me, so that I in turn could invest in others. If you are exploring a role at Vanguard, read on to learn what differentiates our people, and why I chose to spend nearly two decades as a Vanguard leader.
First, leadership at Vanguard isn’t something you do for a title or recognition. Rather, leadership is about serving the needs of investors and enriching the development of your team. While exploring career opportunities, delve deep into the values of the organization; their mission and purpose should align with your beliefs. At Vanguard, our core values are centered on ‘doing the right thing’ in every decision we make. It’s the primary reason why I am both a long-term investor and a long-time crew member. Truly successful leaders nurture and develop a growth mindset to create value and continually improve the organization and their teams. In my experience, these leadership elements enable you to leave a lasting legacy for the benefit of others.
A return to my roots
After spending 15 years working in a variety of leadership roles in our Retail, Financial Advisor Services, and Office of the General Counsel divisions, I have now returned to my roots as the leader of the Service Recovery organization in which I began my career. In my foundational years at Vanguard I learned how to embrace Vanguard’s core purpose. In my latter years, I learned how to lead and serve others within a global community that continually invests in the long-term value we bring to both shareholders and crew. These are the core reasons why I have dedicated my career to Vanguard. My hope is that you too find a role that enables you to grow and to leave a positive mark on the lives of those who come across your path.
-Célestine H.
If you’re seeking an environment where you can make a difference and develop professionally, check out our career opportunities at www.vanguardjobs.com.
There has to be a better way!
My story, however, is a bit different… It all started in June of 2015. I was working for another financial institution, prospecting clients by going door-to-door, introducing myself, and trying to build my pipeline. On this particular day in North Carolina, it was close to 100 degrees. I had on my second suit of the day, and about 200 homes and 4 miles under my belt. But when I got to the end of the cul-de-sac, an exchange happened that changed the course of my financial planning career. I walked up to a group of three friends. They were sitting in the garage sharing stories and having a good time. As I walked up, one of the gentlemen offered me some water and questioned why I was in a full suit walking the street in 100 degree weather. I started to share who I was and what I was doing. As I was speaking, he abruptly interrupted and said that he worked for Vanguard, and that he and his friends already had Financial Advisors at Vanguard and were not in the market to switch. I started to answer with a rebuttal, which is when he questioned if I thought knocking on stranger’s doors for 5 hours a day, hoping for a client that had the assets to invest and that trusted a stranger on the porch was a sustainable model. More importantly, did I enjoy what I did? Both were very valid questions. I began to reflect on my time at my past company: I was doing well at gathering assets and I was meeting my metrics each month. I knew there were other models of advice, but were they really any better or just different? When he gave me his name and email address, I assured him that I was happy and continued on with my day. About 6 months later, I was in the same neighborhood to follow up with a prospective client when I heard the same gentleman from across the street, “Hey, you still having fun? You know, Vanguard has a Personal Advisor® department. You should look into it.” I clearly remembered our first interaction and his questions began to echo in my conscience. I thought of what had transpired over the past 6 months. It brought back memories of having the cops called on me 16 times, being chased by 2 dogs, and literally walking a hole into a brand new pair of shoes. I remembered the time I had to justify a decision that was better for the client, but offered less commission. I thought to myself, there must be a better way! On a Vanguard team outing at the ice skating rink. I decided to take this gentleman up on the offer of applying to Vanguard and seeing if we were a good fit for each other. After speaking with the recruiter multiple times and learning more about the opportunity, I came in for an interview. In April of 2016 I accepted an offer and became the first external Voyager Advisor at Vanguard. Looking back on my experience, I wished I had known about the position earlier. I am able to do the right thing for the clients at all times, without fear of missing a commission. I have engaged co-workers that push me to be better instead of trying to steal my clients. Most of all, I enjoy coming to work every day knowing that I get to help make a positive impact in the lives of our clients. It turns out the guy from the garage was right – there really was a better way. -Ricky J.
There are many paths that people have taken in order to find their way to Vanguard. Some are by usual means like career fairs, development programs, or referrals from friends and family. No matter what leads you to Vanguard I am sure that like myself, most people are glad they are a part of the team.
If you’re seeking an environment where you can make a difference and develop professionally, check out our career opportunities at www.vanguardjobs.com.
Day in the Life of a Vanguard Trader
Have you ever wondered what it’s like to do the actual investing at one of the world’s largest investment firms? To find out, we spoke with two principals in Vanguard Equity Investment Group. Mike Buek is head of U.S. trading and Gerry O’Reilly leads a team of index portfolio managers. They gave us an inside look at a day in the life of a Vanguard trader. Our conversation has been edited for length and clarity.
What is the role of a trader at Vanguard?
Mike Buek: Our trading desk acts as a combination portfolio manager and trader for Vanguard’s index funds. So we understand the entire investment process. We seek to minimize tracking error to the benchmark while at the same time minimizing the fund’s transaction costs.
We want an index fund to be 100% invested to its benchmark. We monitor any changes to each fund’s benchmark and match them in our trading.
Gerry O’Reilly: At the same time, our traders manage the trade-off between tracking error and impact. We employ proprietary trading strategies to try to minimize the impact our trading has on the overall market.
So if we have a large inflow to a fund on a given day, we have to decide whether we have market impact and still track the benchmark or if we can minimize impact by trading this inflow over multiple days. It’s important to look at each trade relative to the market so we can understand what the market can absorb.
Every trader on the desk employs strategies we’ve developed over the years. For example, we’re fans of using limit orders as a way to minimize impact.
How do you prepare before the market opens in the morning?
Mike Buek: We typically come in around 7, 7:30. We check what the international desks in London and Melbourne have done so far. Then we go right to reconciling each fund to make sure we’re 100% invested. For example, we may have expected to receive $50 million on a given fund the previous day, so that’s what we invested. But then the next morning, it turns out the fund received $55 million. We need to get that $5 million invested as soon as possible. In this case, we’d invest in futures to get the fund fully invested because the market isn’t open yet.
Gerry O’Reilly: Each trader also has to sign off on each of their funds in the morning, saying they agree with each fund’s status. Someone from investment risk also signs off, as well as the desk supervisor. So there are three different sets of eyes looking at the funds each day, making sure the starting line makes sense.
Each fund, based on its size, has a certain tolerance. For example, Total Stock Market Index is an enormous fund. If it starts the day with $10 million in cash, that isn’t a huge deal proportionally. It’s not even a basis point. But $10 million cash in one of our smaller funds could be a huge deal. Our investment risk group monitors those tolerances.
Knowing that you have someone keeping an eye on the performance of the fund and the benchmark is a big source of comfort. As much as we’d like to try to eliminate any potential tracking error, it’s probably unrealistic to think it will always be that way. We closely monitor what little tracking error there is.
Mike Buek: We also look at the performance from yesterday. We’ll look at every fund’s performance versus its index. If there’s anything off, we want to know why. If there’s a reason we knew about and it makes sense that we outperformed by 3/10 of a basis point—and that’s how deep it gets, explaining fractions of a basis point—we investigate so we can adjust and get the fund tracking as close to perfect as we can.
Mike Buek, Principal, Vanguard Equity Investment Group, U.S. Trading
How does the experience change throughout the day?
Gerry O’Reilly: Our data group gets notified of the index changes coming at that day’s close. Once you know an index change is coming, a fund tracking that index has to adjust.
On a given day, you could have 10 to 20 different corporate actions going on, such as a company issuing more shares. Each trader gets assigned a corporate action and takes point on that stock. They will figure out what each fund needs to do to ensure the index weights are correct.
Trading can get really busy when indexes add or remove names. Say, for example, XYZ Company has outgrown a small-cap index and is being added to a mid-cap index. We’d need to mirror that move in the funds tracking those indexes.
How does Vanguard manage the global nature of the market? What specific difficulties come up?
Mike Buek: When we go global, we’re passing trades to Vanguard’s European and Australian-Asian desks to execute. And they pass us trades to execute for their funds. The communication has to be good between the three desks so the traders executing each trade understand the objective.
That’s challenging because of the different hours, but with improved technology and our expanded team, we’re able to make sure our portfolio management is globally consistent.
Gerry O’Reilly: International trading can often involve more markets. In the U.S., we mainly deal with the NYSE and Nasdaq. In other regions, you might have 10, 15 different markets closing at different times with different rules. In Europe, you’re looking at “When’s Norway closing? What about Germany?” You have to make sure you get your orders down in time because if you miss it, you miss it.
The other obvious difference is currency. U.S. investors are giving us dollars, which we have to convert into local currency when we buy international stocks. So in addition to the equity trade, our teams need to address the currency piece in order to keep the cost of the trade to a minimum.
Gerry O’Reilly, Principal, Vanguard Indexed Equity Portfolio Management
Without getting proprietary, what would you say sets Vanguard’s trading desk apart?
Gerry O’Reilly: At a high level, one of the things that differentiates our desk is the level of experience. Mike has 30 years at Vanguard, and most of that is on the trading desk. I’m at 25 years and almost 23 on the desk. I’d say the average tenure for our traders is probably 12 to 13 years.
On this desk, we have people who specialize in different areas. When we get information from the street from our brokers about what’s going on with a name, we can funnel that to the appropriate person to address that information.
You learn from experience. None of us are set in our ways. You have to be willing to change and learn from past experience.
Note:
All investing is subject to risk, including the possible loss of the money you invest.
If you’re seeking an environment where you can make a difference and develop professionally, check out our career opportunities at www.vanguardjobs.com.
Getting up to speed on Fund Financial Services
Krista, a Fund Financial Services (FFS) Senior Financial Analyst, approached her team’s networking event with a clear purpose, “We want to educate crew on what we do and the many crucial processes we touch every day.” At a company like Vanguard, there are so many options for career development and, at times, it can be a little overwhelming. That’s why more and more teams like FFS are hosting networking events for crew throughout the organization to learn more about the department, the teams, and open roles. This event was set in the style of “speed dating” – a format where crew meet with team representatives for 10 minutes, then switch tables throughout the event. Those interested in pursuing careers in FFS got information about critical functions and groups, key initiatives, and how to build financial acumen. Attendees even got to learn more about competencies and skills needed to excel in these roles.
“The interesting thing about our team is that there is a transparent career path. You can go from an entry level position all the way to manager with a clear roadmap. The job is primarily project based, not day-to-day versus a typical daily operational role,” described Brad, a Supervisor in Fund Reporting. Krista added, “Attention to detail is important. We are constantly interacting with teams both internally and externally. Relationship management is also a key component.”
Brad shared with the attendees, “We see the full lifecycle of our reports (annual, semi-annual, quarterly) and they have to be diligently reviewed and ready to send to shareholders in strict adherence to the production schedule. You need to possess great time management skills to manage the entire process. I like that aspect – you finish with a tangible product at the end of the day. You get to hold it and touch it. When people ask me what I do, I can hand them a finished product.”
Jake said, “I joined our team over two years ago when there were nine analysts plus managers. Now we’re over 20. It’s an explosive period for our group and we’re looking for new talent. We hope to find people who are genuinely interested.
Critical thinking is an important part of the job. We may get a week notification that we’ll be trading a new product. We have to get ready for new processes quickly.”
Kelsey, who coordinated the event, said, “FFS has previously hosted speed networking events to provide an opportunity for crew throughout Vanguard to learn more about how we support Vanguard’s funds and clients, while building relationships and networking. We expanded the event and gave different groups from the Finance division a chance to represent their teams. Overall we had 28 different teams represented and over 95 crew attending!”
If you’re seeking an environment where you can make a difference and develop professionally, check out our career opportunities at www.vanguardjobs.com.