How Vanguard prepares for the unexpected

19 March 2020 | Markets and economy



Tim Buckley: Greg, one of the questions that we've been getting from our clients is what are we doing around business continuity? What steps have we taken to make sure that regardless of how long the coronavirus goes on regards to how severe it gets that we can continue to keep the operations going? And now to our viewers out there, if you look behind me, what you're looking at is one of our trading floors. Usually you'd see it densely populated. That doesn't mean that people aren't working out there when you just see people, every other desk or every third desk. It means that we've distanced them properly, and I should by the way mentioned that you'll notice a Greg and I are sitting apart here. We're trying to practice social distancing and everything that we do. Beyond, social distancing, what are you guys doing? What steps have you taken to make sure this operation continues? How have you distributed your team?

Greg Davis: So it starts really with the fact that hey, it's a global operation so we have trading locations in the US, trading locations in the UK as well as Melbourne, Australia. And in addition to those global trading locations, we also have contingency sites that we're leveraging right now in each one of those locations. So we have our team split up between our main hubs and those contingency sites, and we've even prepared for the fact that if we need to, our people could trade from home. So we've installed the technology, we've tested the system, so we could have business as usual, even in a severe event.

Tim: And trading from home is not something you are going to jump to. I mean you guys love the collaboration that happens on the floor even when people are spread out. It's just much easier to happen there. That said, if we have to go there, we absolutely ready to do it.

Greg: Absolutely.

Tim: Security is going to be the same absolutely whether if someone's at home as it's going to be the same if we're trading from home, as if you're trading from here.

Greg: Absolutely.

Tim: Now, I should mention Greg that the rest of Vanguard’s operations, whether they're talking to an associate at Vanguard, whatever area of Vanguard is supporting the client, those areas have been distributed too. That we have taken steps to move associates apart. Moving between different buildings. People are working from home. They are distributed between our sites as well so. We're taking the steps to make sure that we continue business as usual here or as close to as usual as possible.

Greg: Absolutely.

Important information:

All investing is subject to risk, including possible loss of principal.

Vanguard ETF Shares are not redeemable with the issuing Fund other than in very large aggregations worth millions of dollars. Instead, investors must buy and sell Vanguard ETF Shares in the secondary market and hold those shares in a brokerage account. In doing so, the investor may incur brokerage commissions and may pay more than net asset value when buying and receive less than net asset value when selling.

References in this presentation to “Vanguard” are to our parent company The Vanguard Group, Inc. Vanguard funds are managed by Vanguard Investments Canada Inc., an indirect wholly-owned subsidiary of The Vanguard Group, Inc.


This material is for informational purposes only. This material is not intended to be relied upon as research, investment, or tax advice and is not an implied or express recommendation, offer or solicitation to buy or sell any security or to adopt any particular investment or portfolio strategy. Any views and opinions expressed do not take into account the particular investment objectives, needs, restrictions and circumstances of a specific investor and, thus, should not be used as the basis of any specific investment recommendation. Please consult your financial and/or tax advisor for financial and/or tax information applicable to your specific situation.

Certain statements in this presentation may be considered "forward-looking information" which may be material, involve risks, uncertainties or other assumptions and there is no guarantee that actual results will not differ significantly from those expressed in or implied by these statements. Factors include, but are not limited to, general global financial market conditions, interest and foreign exchange rates, economic and political factors, competition, legal or regulatory changes and catastrophic events. Any predictions, projections, estimates or forecasts should be construed as general investment or market information and no representation is being made that any investor will, or is likely to, achieve returns similar to those mentioned herein.

While this information has been compiled from proprietary and non-proprietary sources believed to be reliable, no representation or warranty, express or implied, is made by The Vanguard Group, Inc., its subsidiaries or affiliates, or any other person (collectively, "The Vanguard Group") as to its accuracy, completeness, timeliness or reliability. The Vanguard Group takes no responsibility for any errors and omissions contained herein and accepts no liability whatsoever for any loss arising from any use of, or reliance on, this material.


© 2020 Vanguard Investments Canada Inc. All rights reserved.