Rebirth 79: I opened a bank in the United States

Chapter 482 The Unlucky Bogle

"Why did you choose to hold the party at this time? New York is not peaceful now~"

"No way, school will start soon, and I have no choice but to do it! I didn't come to see you last year, so I can't stop coming this year, right?"

The Plaza Hotel is still in the living room.

Accompanied by Julian, Carter hugged Jim Rogers, who was invited, and explained with a smile:
"I almost failed three courses last year. If I don't try to make up for it this year. Wouldn't I be sorry for your recommendation letter?"

"Hahaha, you are too modest! I heard that you were very popular in the first half of the year! You are much more vigorous than I was back then, hey, how is it? Is there any little girl who throws herself into your arms?"

"Well, there are some love letters, but I don't have time to read them!"

Pretending to smile shyly, Carter has gradually lost interest in this matter.No matter in China or on campus in the United States, the more prominent a guy is, the more priority he has in choosing a spouse.
Well, at the beginning, the experience may be full.But after getting used to it now, Carter no longer takes it seriously.
"Hahaha, yes, once the Warren case comes out, your police company, um, orders should skyrocket! Indeed, it will take time. Hey, by the way, there is something, have you heard about it?"

"What is it?"

"About the debate on non-bank institutions allowing them to absorb transaction deposits and issue industrial and commercial credits, there were discussions at the recent meeting of the Communist Party of China and representatives of many large banks."

"I've heard a bit about this matter. I heard that it seems that the bank may also be given the power to underwrite securities! I remember you said that Mr. Bogle's fund has a relatively low cost. I'll talk to you later?"

"What? Want to underwrite Vanguard's fund?"

"That's right, I have this idea. Originally, my goal was Fidelity's Magellan Fund, because I am more familiar with it, but anyway, Mr. Lynch can't be the owner of Fidelity too much. The distribution cost is relatively high, so the corresponding selling price It won't be low, and I have some poor clients, so it's hard to sell Fidelity funds!"

Carter nodded, not hiding his intentions from Jim at all:
"Correspondingly, if Vanguard's funds operate at a low cost, then their prices should be relatively low, which is suitable for my clients!"

"Then I'm afraid you will be disappointed. Vanguard's First Index Investment Trust has canceled brokers and distributors. That is to say, they have no underwriters now, and they don't need you as an underwriter."

"I hear you talking about Vanguard again? What, do you want to invest in some?"

While Carter was chatting with Rogers, a little old man suddenly joined the group chat.Just hearing this, Jim suddenly showed an awkward but polite smile, waved his hands again and again to shirk
Why are you in short supply recently, what just finished voting
Jim's reaction to Bogle's promotion of his fund was exaggerated!
Carter is not surprised by this, because the current Pioneer First Index Investment Trust is a miserable
It was established in 1975 with a fundraising target of 1.5 million yuan, but it took more than a year until 1976 to raise 1100 million yuan, which is considered to be listed.And as the first index investment trust fund with the S&P 500 index as the investment target, this 1100 million is not even enough to buy the constituent stocks of the S&P 500!

The popular explanation is: the so-called index fund is to invest in all the stocks under a certain index, such as the Poor's 500 index fund, which invests in all the companies in the S&P 500.However, the assets of this fund do not meet this condition at all.
To make matters worse, due to Bogle's no-broker and no-distributor model, it is an unprecedented innovation in the history of American securities.As a result, in 1980, the SEC wavered and withdrew the license issued in 1978.I feel like this thing is unreliable
One of the core reasons why the SEC feels unreliable is that its net redemption rate of funds has always remained high.Almost since it was officially listed in 76, until now, Bogle's fund has been facing the dilemma of redemption greater than purchase.

And it has continued until now.
You thought this was the end? !

What is "blessings come in pairs, misfortunes never come singly"? !
The investment logic of index funds is actually very simple to put it bluntly.It is to invest in all the companies on a certain index sector at once, and there are companies that are losing money and some companies are making profits.As long as the overall market development is upward and the index is generally rising, then the investment will be profitable!

The logic is that simple, and under normal circumstances, Carter also believes that history and social productivity must develop upward.In other words, the market index, in the long run, must be getting higher and higher, more and more!
However, last year
The S&P 500 fell 4.92%
This is going to kill me, isn't it?
Originally, index funds only took the rise and fall of the index as their income reference.In terms of investment return, it is not quite as popular as the current popular ones, and most brokerages and investment banks advertise that they outperform the market by a certain amount.
Investing in your Pioneer index fund, many investors also want to protect their capital and make a small profit.The goal is really not big!Also very simple!As a result, you can't even make a small profit!
What the hell. Uncle can bear it, but sister-in-law can't bear it either!

On the one hand, a large number of shares are redeemed, on the other hand, there is a loss of income
Carter can foresee that Bogle's life this year may be very sad.
"Long time no see, Mr. Bogle! Thank you very much for the letter of recommendation you wrote for me half a year ago. It's a pity that I couldn't go to Princeton"

The thoughts in my mind flicker only in an instant.After flashing, Carter took aim at the slumped little old man with a smile on his face.
After finally getting the legal business license last year, the market fell!And the market is usually difficult to fall, which means the decline of the overall productivity of society!No big changes, big changes, how come.
Volker: That's right, the next thing is an accident!
It's really a leak in the house and it rains all night. It's unlucky to drink cold water and stuff your teeth.
"Not to mention, I'm somewhat interested in investing in Vanguard's funds."

Looking at the suddenly bright eyes of the little old man Bogle, Carter suddenly felt a little cruel
"But... unfortunately, my current financial situation is also very difficult. I just borrowed another [-] million US dollars before I came here"

Um?Why does it feel like you are still stabbing a knife in someone's heart? !
Carter suddenly thought about what was recorded in the Pioneer information.In order to rescue this index fund, Bogle once merged another [-] million fund with it.Then it was redeemed in large numbers
Now in the first index investment trust, it is hard to say whether there is [-] million or not
"Oh, haha, okay, I see!"

Bogle smiled sadly, which made Carter a little embarrassed.In order to remedy, Carter quickly said:

"Don't worry, don't worry, Mr. Bogle! Although I don't have much money now, people in my hometown have money! In recent years, Douglas has developed pretty well, how about"

"No, no, no! I won't give up the purpose of the establishment of Pioneer! Even if it goes bankrupt, I don't need an underwriter!"

(End of this chapter)