The Vanguard Group is an American investment management company based in Malvern, Pennsylvania, that manages approximately $1.8 trillion[1] in assets. It offers mutual funds and other financial products and services to individual and institutional investors in the United States and abroad. Founder and former chairman John C. Bogle is credited with the creation of the first index fund available to individual investors, the popularization of index funds generally, and driving costs down across the mutual fund industry.
Vanguard is unusual among mutual-fund companies since it is owned by the funds themselves. In this structure, each fund contributes a set amount of capital towards shared management, marketing, and distribution services. The company says that this structure better orients management towards shareholder interests.[2] Other mutual-fund sponsors are expected simultaneously to make a profit for their outside owners and provide the most cost-effective service to funds for their shareholders.
1. Employee Reward Program- You can make a provision of Monthly or Quarterly Award (depending upon the budget) for the best employee, Awarding 2 or 3 best workers each month. The award can be in terms of gifts or money. If it is money then it should be divided into two parts, first part to be given with the next month salary and the remaining after 6 months. In this way he/she can be retained for 6 more months. These rewards shall be considered at the time of appraisal.
2. Career Development Program- Every individual is worried about his/her career. You can provide them conditional assistance for certain courses which are beneficial from your business point of view. Conditional assistance means the company will bear the expenses only if he/she gets an aggregate of certain percentage of marks. And entrance to that course should be on the basis of a Test and the number of seats to be limited. For getting admitted to such program, You can propose them to sign a bond with the company, like they cannot leave the company for 2 years or something after the successful completion of the course.
3. Performance based Bonus- The employee always comes to know about the profit of the company which is of course based on the strategic planning of the top management and the productivity of the employee. To get more work out of the employee, You can make a provision of Bonus. By this employee will be able to relate himself with the company’s profit and hence will work hard. This bonus should be productivity based. You can make sure that this bonus is not adding extra-pressure on the budget of Your Company and you can arrange this by cutting a part of the salary hikes and presenting it to the employees in the form of bonus.
4. Employee Referral Plan- You can introduce Employee Referral Plan. This will reduce your cost (charges of external consultants and searching agencies) of hiring a new employee and up to an extent you can rely on this new resource. On every successful referral, employee can be given a referral bonus after 6 or 9 months of continuous working of the new employee as well as the existing employee. By this you can get a new employee at a reduced cost as well as are retaining the existing one for a longer period of time.
5. Loyalty Bonus- You can introduce a Loyalty Bonus Program in which you can reward your employee after a successful completion of a specified period of time. This can be in the form of Money or Position. This will encourage the fellow employees as well whether they are interested in money or position, they will feel fascinated.
6. Giving a voice to the Knowledge Banks- First of all you should try to retain your workforce intact, as they are the intellectual asset of the company. And above that you can’t afford losing your knowledge banks. These are the people who stabilize the process. You can involve them in some of the decisions.
7. Employee Recreation- You should also let your employees enjoy in a light mood. You can take your employees to a trip or for an outing every year or bi-yearly. You can make use of this trip as well. You can start this trip with an opening note about the management views and plans, strategies etc. At the same time you can involve your top management into some of the fun activities as this will make feel the employees that they are very close to the management and everybody is same.
8. Gifts at some Occasions- You can give some gifts at the time of one or two festivals to the employees making them feel good and understand that the management is concerned about them.
9. Accountability- You should make each employee accountable so that he can also feel that he is as important as his manager. If he/she will be filled with this sense, he/she will seldom think of leaving the company.
10. Making the managers effective and easily accessible- You should make the management easily accessible so that the employee expectations can be clearly communicated to the top management, as it is impossible for the top management to reach each employee frequently.
The Vanguard Retirement and Savings Plan, EIN 23-1945930 (Plan 002)
Below is a summary of the annual report for the Vanguard Retirement and Savings Plan, EIN 23-1945930, Plan 002, for the period January 1, 2009, through December 31, 2009.
The annual report has been filed with the U.S. Department of Labor, as required under the Employee Retirement Income Security Act of 1974 (ERISA).
Basic financial statement
Benefits under the plan are provided through a trust fund. Plan expenses were $50,505,063. These expenses included $215,042 in administrative expenses, $50,282,632 in benefits paid to participants and beneficiaries, and $7,389 in other expenses. A total of 14,331 persons were participants in or beneficiaries of the plan at the end of the plan year, although not all of these individuals had yet earned the right to receive benefits.
The value of plan assets, after subtracting liabilities of the plan, was $1,745,572,349 as of December 31, 2009, compared to $1,260,949,228 as of January 1, 2009. During the plan year, the plan experienced an increase in net assets of $484,623,121. This increase includes unrealized appreciation and depreciation in the value of plan assets—that is, the difference between the value of the plan's assets at the end of the year and the value of the assets at the beginning of the year or the cost of assets acquired during the year. The plan had a total income of $535,128,184 including employer contributions of $115,761,541, employee contributions of $75,816,790, earnings from investments of $343,512,731, and other income of $37,122.
Your rights to additional information
You have the right to receive a copy of the full annual report, or any part thereof, on request. The items listed below are included in that report:
An accountant's report.
Financial information on payments to service providers.
Assets held for investment.
Information regarding any common or collective trusts, pooled separate accounts, master trusts, or 103-12 investment entities in which the plan participates.
To obtain a copy of the full annual report, or any part thereof, call 610-669-1000 or write to: Vanguard, 100 Vanguard Boulevard, Malvern, PA 19355.
You also have the right to receive from the plan administrator, on request and at no charge, a statement of the assets and liabilities of the plan and accompanying notes, or a statement of income and expenses of the plan and accompanying notes, or both. If you request a copy of the full annual report from the plan administrator, these two statements and accompanying notes will be included as part of that report. The charge to cover copying costs given above does not include a charge for the copying of these portions of the report because these portions are furnished without charge.
You also have the legally protected right to examine the annual report at the main office of the plan (Vanguard, 100 Vanguard Boulevard, Malvern, PA 19355) and at the U.S. Department of Labor in Washington, D.C., or to obtain a copy from the U.S. Department of Labor upon payment of copying costs. Requests to the U.S. Department of Labor should be addressed to: Public Disclosure Room, Room N-1513, Employee Benefits Security Administration, U.S. Department of Labor, 200 Constitution Avenue, N.W., Washington, DC 20210.
The Vanguard Group, Inc. Benefit Plan, EIN 23-1945930 (Plan 506—a plan which provides medical, dental, vision, and other welfare benefits)
This is a summary of the annual report of The Vanguard Group, Inc. Benefit Plan, EIN 23-1945930, Plan 506, for the period January 1, 2009, through December 31, 2009. The annual report has been filed with the Employee Benefits Security Administration, U.S. Department of Labor, as required under the Employee Retirement Income Security Act of 1974 (ERISA).
Insurance information
The plan has contracts with Aetna Life Insurance Company, Metropolitan Life Insurance Company, Prudential Insurance Company of America, Reliastar Life Insurance Company, Metropolitan Life Insurance Company, Independence Blue Cross, AIG Life Insurance Company, and Hyatt Legal Plans, Inc., to pay vision, life insurance, long-term disability, Accidental Death and Dismemberment, Individual Excess Risk, Long Term Care, Extended Accidental Death & Dismemberment, and Legal claims incurred under the terms of the plan. The total premiums paid for the plan year ending December 31, 2009, were $11,252,495.
Because they are so-called "experience-rated" contracts, the premium costs are affected by, among other things, the number and size of the claims. Of the total insurance premiums paid for the plan year ended December 31, 2009, the premiums paid under such "experience-rated" contracts were $1,829,219 and the total of all benefit claims paid under these experience-rated contracts during the plan year was $0.
Your rights to additional information
You have the right to receive a copy of the full annual report, or any part thereof, on request. Listed in that report is insurance information, including the sales commissions paid by the insurance carriers.
To obtain a copy of the full annual report, or any part thereof, call 610-669-1000 or write to: Vanguard, 100 Vanguard Boulevard, Malvern, PA 19355.
You also have the right to receive from the plan administrator, on request and at no charge, a statement of the assets and liabilities of the plan and accompanying notes, or a statement of income and expenses of the plan and accompanying notes, or both. If you request a copy of the full annual report from the plan administrator, these two statements and accompanying notes will be included as part of that report. The charge to cover copying costs given above does not include a charge for the copying of these portions of the report because these portions are furnished without charge.
For his undergraduate thesis at Princeton, John C. Bogle conducted a study in which he found that around three quarters of mutual funds did not earn any more money than if they invested in the largest 500 companies simultaneously, using the S&P 500 stock market index as a benchmark.[3] In other words, three out of four of the managers could not pick better specific "winners" than someone passively holding a basket of the 500 largest public U.S. companies. The managers could pick specific stocks which would do as well as picking the 500 largest stocks (essentially doing as well as random chance would dictate), but the cost to pay their expenses, as well as the high taxes incurred through active trading, resulted in underperforming the index.
Vanguard is unusual among mutual-fund companies since it is owned by the funds themselves. In this structure, each fund contributes a set amount of capital towards shared management, marketing, and distribution services. The company says that this structure better orients management towards shareholder interests.[2] Other mutual-fund sponsors are expected simultaneously to make a profit for their outside owners and provide the most cost-effective service to funds for their shareholders.
1. Employee Reward Program- You can make a provision of Monthly or Quarterly Award (depending upon the budget) for the best employee, Awarding 2 or 3 best workers each month. The award can be in terms of gifts or money. If it is money then it should be divided into two parts, first part to be given with the next month salary and the remaining after 6 months. In this way he/she can be retained for 6 more months. These rewards shall be considered at the time of appraisal.
2. Career Development Program- Every individual is worried about his/her career. You can provide them conditional assistance for certain courses which are beneficial from your business point of view. Conditional assistance means the company will bear the expenses only if he/she gets an aggregate of certain percentage of marks. And entrance to that course should be on the basis of a Test and the number of seats to be limited. For getting admitted to such program, You can propose them to sign a bond with the company, like they cannot leave the company for 2 years or something after the successful completion of the course.
3. Performance based Bonus- The employee always comes to know about the profit of the company which is of course based on the strategic planning of the top management and the productivity of the employee. To get more work out of the employee, You can make a provision of Bonus. By this employee will be able to relate himself with the company’s profit and hence will work hard. This bonus should be productivity based. You can make sure that this bonus is not adding extra-pressure on the budget of Your Company and you can arrange this by cutting a part of the salary hikes and presenting it to the employees in the form of bonus.
4. Employee Referral Plan- You can introduce Employee Referral Plan. This will reduce your cost (charges of external consultants and searching agencies) of hiring a new employee and up to an extent you can rely on this new resource. On every successful referral, employee can be given a referral bonus after 6 or 9 months of continuous working of the new employee as well as the existing employee. By this you can get a new employee at a reduced cost as well as are retaining the existing one for a longer period of time.
5. Loyalty Bonus- You can introduce a Loyalty Bonus Program in which you can reward your employee after a successful completion of a specified period of time. This can be in the form of Money or Position. This will encourage the fellow employees as well whether they are interested in money or position, they will feel fascinated.
6. Giving a voice to the Knowledge Banks- First of all you should try to retain your workforce intact, as they are the intellectual asset of the company. And above that you can’t afford losing your knowledge banks. These are the people who stabilize the process. You can involve them in some of the decisions.
7. Employee Recreation- You should also let your employees enjoy in a light mood. You can take your employees to a trip or for an outing every year or bi-yearly. You can make use of this trip as well. You can start this trip with an opening note about the management views and plans, strategies etc. At the same time you can involve your top management into some of the fun activities as this will make feel the employees that they are very close to the management and everybody is same.
8. Gifts at some Occasions- You can give some gifts at the time of one or two festivals to the employees making them feel good and understand that the management is concerned about them.
9. Accountability- You should make each employee accountable so that he can also feel that he is as important as his manager. If he/she will be filled with this sense, he/she will seldom think of leaving the company.
10. Making the managers effective and easily accessible- You should make the management easily accessible so that the employee expectations can be clearly communicated to the top management, as it is impossible for the top management to reach each employee frequently.
The Vanguard Retirement and Savings Plan, EIN 23-1945930 (Plan 002)
Below is a summary of the annual report for the Vanguard Retirement and Savings Plan, EIN 23-1945930, Plan 002, for the period January 1, 2009, through December 31, 2009.
The annual report has been filed with the U.S. Department of Labor, as required under the Employee Retirement Income Security Act of 1974 (ERISA).
Basic financial statement
Benefits under the plan are provided through a trust fund. Plan expenses were $50,505,063. These expenses included $215,042 in administrative expenses, $50,282,632 in benefits paid to participants and beneficiaries, and $7,389 in other expenses. A total of 14,331 persons were participants in or beneficiaries of the plan at the end of the plan year, although not all of these individuals had yet earned the right to receive benefits.
The value of plan assets, after subtracting liabilities of the plan, was $1,745,572,349 as of December 31, 2009, compared to $1,260,949,228 as of January 1, 2009. During the plan year, the plan experienced an increase in net assets of $484,623,121. This increase includes unrealized appreciation and depreciation in the value of plan assets—that is, the difference between the value of the plan's assets at the end of the year and the value of the assets at the beginning of the year or the cost of assets acquired during the year. The plan had a total income of $535,128,184 including employer contributions of $115,761,541, employee contributions of $75,816,790, earnings from investments of $343,512,731, and other income of $37,122.
Your rights to additional information
You have the right to receive a copy of the full annual report, or any part thereof, on request. The items listed below are included in that report:
An accountant's report.
Financial information on payments to service providers.
Assets held for investment.
Information regarding any common or collective trusts, pooled separate accounts, master trusts, or 103-12 investment entities in which the plan participates.
To obtain a copy of the full annual report, or any part thereof, call 610-669-1000 or write to: Vanguard, 100 Vanguard Boulevard, Malvern, PA 19355.
You also have the right to receive from the plan administrator, on request and at no charge, a statement of the assets and liabilities of the plan and accompanying notes, or a statement of income and expenses of the plan and accompanying notes, or both. If you request a copy of the full annual report from the plan administrator, these two statements and accompanying notes will be included as part of that report. The charge to cover copying costs given above does not include a charge for the copying of these portions of the report because these portions are furnished without charge.
You also have the legally protected right to examine the annual report at the main office of the plan (Vanguard, 100 Vanguard Boulevard, Malvern, PA 19355) and at the U.S. Department of Labor in Washington, D.C., or to obtain a copy from the U.S. Department of Labor upon payment of copying costs. Requests to the U.S. Department of Labor should be addressed to: Public Disclosure Room, Room N-1513, Employee Benefits Security Administration, U.S. Department of Labor, 200 Constitution Avenue, N.W., Washington, DC 20210.
The Vanguard Group, Inc. Benefit Plan, EIN 23-1945930 (Plan 506—a plan which provides medical, dental, vision, and other welfare benefits)
This is a summary of the annual report of The Vanguard Group, Inc. Benefit Plan, EIN 23-1945930, Plan 506, for the period January 1, 2009, through December 31, 2009. The annual report has been filed with the Employee Benefits Security Administration, U.S. Department of Labor, as required under the Employee Retirement Income Security Act of 1974 (ERISA).
Insurance information
The plan has contracts with Aetna Life Insurance Company, Metropolitan Life Insurance Company, Prudential Insurance Company of America, Reliastar Life Insurance Company, Metropolitan Life Insurance Company, Independence Blue Cross, AIG Life Insurance Company, and Hyatt Legal Plans, Inc., to pay vision, life insurance, long-term disability, Accidental Death and Dismemberment, Individual Excess Risk, Long Term Care, Extended Accidental Death & Dismemberment, and Legal claims incurred under the terms of the plan. The total premiums paid for the plan year ending December 31, 2009, were $11,252,495.
Because they are so-called "experience-rated" contracts, the premium costs are affected by, among other things, the number and size of the claims. Of the total insurance premiums paid for the plan year ended December 31, 2009, the premiums paid under such "experience-rated" contracts were $1,829,219 and the total of all benefit claims paid under these experience-rated contracts during the plan year was $0.
Your rights to additional information
You have the right to receive a copy of the full annual report, or any part thereof, on request. Listed in that report is insurance information, including the sales commissions paid by the insurance carriers.
To obtain a copy of the full annual report, or any part thereof, call 610-669-1000 or write to: Vanguard, 100 Vanguard Boulevard, Malvern, PA 19355.
You also have the right to receive from the plan administrator, on request and at no charge, a statement of the assets and liabilities of the plan and accompanying notes, or a statement of income and expenses of the plan and accompanying notes, or both. If you request a copy of the full annual report from the plan administrator, these two statements and accompanying notes will be included as part of that report. The charge to cover copying costs given above does not include a charge for the copying of these portions of the report because these portions are furnished without charge.
For his undergraduate thesis at Princeton, John C. Bogle conducted a study in which he found that around three quarters of mutual funds did not earn any more money than if they invested in the largest 500 companies simultaneously, using the S&P 500 stock market index as a benchmark.[3] In other words, three out of four of the managers could not pick better specific "winners" than someone passively holding a basket of the 500 largest public U.S. companies. The managers could pick specific stocks which would do as well as picking the 500 largest stocks (essentially doing as well as random chance would dictate), but the cost to pay their expenses, as well as the high taxes incurred through active trading, resulted in underperforming the index.
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