VANGUARD IS NOW USING ANOTHER COLLECTION OF CO-OP MONEY FOR THEIR INVESTMENTS.
Vanguard’s latest fund-raising drive includes a $1 billion lump sum from GE Capital, a $100 million lump sum for UBS, a small sum from Goldman Sachs, a lump sum of $10 million from BlackRock, and a $10 billion lump-sum for Vanguard’s biggest fund.
The money from these investments goes to Vanguard’s investor class as a whole.
In addition to the $1.5 billion GE Capital fund, Vanguard has been increasing its funds in recent years.
From 2011 through 2015, the company made about $3.6 billion in investments in GE Capital.
This year, the $100 billion fund will be used to buy the stock of the UBS investment bank.
“We are proud to partner with a bank that has been a great supporter of our fund over the years,” said CEO and founder Bill Ackman in a press release announcing the new investment.
But the new fund is going to be very different from the old one.
Instead of going to the GE Capital portfolio, Vanguard will be investing in UBS’s portfolio, the Wall Street Journal reports.
Ackman’s announcement has led some analysts to question why this particular fund is being invested in UB.
According to the Wall St. Journal, Vanguard is the first major fund-management company to buy into UBS and BlackRock’s investment portfolios, the Journal said.
When asked if he was worried that Vanguard was making a profit by buying the UB portfolio, Ackman said, “No, I’m worried about the money we are giving to the U.S. Treasury.”
“Vanguard is going all in on UBS,” the Journal added.
“It’s an excellent partner for Vanguard.”
In addition, Vanguard’s investment in BlackRock is expected to be one of the largest single investments in Blackrock’s portfolio.
Earlier this year, Vanguard announced that it would invest in Black Rock’s investments for the first time, according to the WSJ.
After the fund was announced, Ackmans publicist did not immediately respond to a request for comment.
The Vanguard fund is not the only investment Vanguard has made in Blackstone.
Back in 2017, the hedge fund company bought a stake in the company for $100.5 million.
That deal is expected for 2020.
Blackstone CEO Bob Dudley is also a big fan of Vanguard, and he’s been a vocal supporter of Ackman.
Dudley has called Ackman “a genius” for taking on the biggest corporate investor in the world.
He told Bloomberg that he hopes to see Vanguard in the investment world.
“I don’t think that we can ever, ever, say, ‘Hey, we’re going to invest in this hedge fund, and then we’re not going to do that investment for another 10 years.’
But, we can say, we will invest in a hedge fund,” Dudley said.
