John Berg: Father of Index Fund and Perseverance.

The fund industry is glamorous, but John Berger, the world's largest fund company and the father of index funds, is the most stingy one.

He likes to stay in a hotel discount room on business. He has no special car, no exclusive parking space, no first class and no executive restaurant. He likes answering customers' phone calls, rolling up his sleeves and working with colleagues as equals.

In my impression, whether it is Wall Street or Financial Street, on the one hand, they are cocky and complacent; On the other hand, it seems to be secretive about performance and likes to be secretive, which is specious. And a few successful people, often modest and low-key, occasionally won an award, still awe of the market. Its investment philosophy is often independent and unique, with distinctive personality and simple appearance, but it is highly praised by investors.

Persistence is John Berger's last book of wisdom, which is priceless. It is worth cherishing, but there is no need to worship. It is enough to firmly believe in a set of values. Just like his guiding light and motto for the future: "Keep going".

Man is a thinking reed.

Pascal also said that the result is more important than the probability.

John Berg, on the other hand, inherited and carried forward the whole process of ideological absorption, value belief, perseverance, innovation and creation, organizational practice and cultural inheritance. As his "master" Samuelson praised in 2005, "I compare Borg's invention with the invention of the wheel, the alphabet, Gutenberg printing, wine and cheese. A mutual fund has not made Borg rich, but it has improved the long-term income of fund investors, and index funds are new things in the sun. "

Pilot Group has become the largest mutual fund company in the world, and is widely respected for its founder john berger's low cost, long-term return on investment and moral values.

Victor hugo said: "No army can resist an idea that conforms to the times."

As a student, John Berger recognized and practiced Samuelson's academic thought. Samuelson said in The Challenge of Investment Judgment: "There is no strong evidence that fund managers can systematically surpass the returns of the S&P 500 index on a repeatable and sustainable basis."

However, we live in a strange era, the periodic table of elements and anything else can be quantified and reduced to mathematical formulas. Mathematics is regarded as a way to accurately express things, and the Bible and teachings of the world's traditional wisdom are regarded as a debatable view of lost sages. "

Even in this era of big companies, big data and robots, this philosophy is still enduring in this era when financial values are gradually (unfortunately) changing from moral absolutism to moral relativism. "

The author said that most of the problems and mistakes in the financial era will be attributed to the failure to abide by the trust principle described in the Bible, that is, "one person cannot serve two masters at the same time" ... those who are nominally trustees and only consider the interests of those who control their funds show that we often ignore the necessary meaning of this principle. "

With thoughts and beliefs, there must be actions. Time will change, the industry will change and the market will change, but our basic values will not change. Pioneer's unique structured and innovative index fund strategy has changed the whole fund industry from two different dimensions.

Pioneer's definition of "profit" consists of * * * and the appreciation of fund holders' returns, based on the following two calculation methods:

[If! supportLists] 1。 ? [endif] The difference between the fund rate of Pioneer Pilot Group and the fund rate of its biggest competitor;

[If! Support list ]2. ? [endif] The outstanding performance of the fund is the extra return (after deducting any losses) obtained by the fund holders. It is up to the management to decide how many employees will share the annual savings with the employees of Pioneer Pilot Group.

Vangard's advance

Pioneer navigation itself means "the leader of new trends." Only serve the interests of our fund holders. These come from healthy self-confidence and the ability to overcome fear and inspire others in the most extreme situations. Any kind of education, if it wants to cultivate excellent leaders and followers, must have such a belief of winning.

The strategy follows the organizational structure: "Like a flash of lightning, I firmly believe that the pioneer pilot will be extraordinary, even unparalleled. It has the ability to operate low-rate passively managed index funds and will become a fund company occupying the market in the next few years. The low-cost index fund is perfect and unique for our new company. "

The first is the unique strategy that * * * has a structure and puts the interests of the holder first.

David Svencen, chief investment officer of the Endowment Foundation of Yale University, said in Unconventional Success in 2005: "Investors perform best in funds managed by non-profit organizations because the management companies focus on serving the interests of investors. There is no profit motive to interfere with investors' returns. There is no conflicting choice between external corporate interests and portfolio management. Non-profit organizations put the interests of investors first. Finally, passive index funds managed by non-profit organizations can maximize investors' expectations. "

The equity structure of fund companies (owned by fund holders and based on "cost" operation mode) has never been tried. It is not the kind of fund management company that operates to earn high profits for its shareholders. It is for the benefit of the fund itself, and ultimately for the benefit of the fund holders.

There are three types of fund companies: individually owned, jointly owned, or owned by large financial institutions at home and abroad. Among the three structures, the fund management company pursues the maximization of shareholders' return on capital, which is mainly based on the income from fund management fees. However, this goal directly conflicts with the interests of fund investors who pursue the maximization of investment return. Every penny that the manager can take away is the income of the same fund investor.

* * * Structured logical order: * * Some fund holders own the same fund, and the same fund owns a gold management company. The traditional order is: the shareholders of traditional fund management companies have the control right of the fund management companies, the fund companies have * * * mutual funds, and the fund holders buy * * * mutual funds.

Followed by low cost, that is, low rate and low turnover rate.

Cheap and good quality goods. Long-term compound interest income is often eroded by the compound interest function of long-term cost, so low cost is the key. Pioneer Pilot Group's unique fund organization structure ensures that the erosion of fund income by cost is minimized and the compound interest income obtained by investors is maximized.

Reduce the cost of investors and eventually become the lowest-cost fund provider in the world. * * * Structured funds maximize the interests of fund holders, while non-peers maximize the interests of fund company shareholders.

The average weighted rate is only 0. 1 1%, which is about half of the average weighted rate of 0.2% of Pioneer's funds. Compared with the average weighted rate of 0.63% for peer actively managed funds, the Admiral series is almost 80% lower. Never underestimate the power of compound interest and always avoid the investment cost of "excessive expropriation". The rate of actively managing bond funds eroded the yield of 32%. Sales commission is another drag. For example, under the premise that the long-term risk of bonds is relatively unchanged, these bond funds only have nominal credit risk.

The relative predictability advantage of Pioneer Fund lies in that funds with the same investment objectives and strategies can often get similar total income, so the funds with the lowest cost can get higher net income. For example, the annual cost of a fund 1.5% (including rate, turnover cost, sales cost, etc. ) During the period of 10, there will be 20% higher income than similar funds, and there is no need to bear any additional risks.

Third, the index fund strategy.

Index funds rule the world. * * * The era of mutual benefit model with the same fund is coming soon.

Opponents: "Index funds are anti-American and should be eliminated."

Bible Psalm: "The stone abandoned by the craftsman has become the first stone in the corner."

By 20 18, only 4% of Pioneer Pilot Group's assets were invested in actively managed hybrid funds. Index fund is the largest asset category of Pioneer Group at present, from 0 in 1975 to 74% today. Index funds are the power to change the whole financial market. Index fund "Trio": low operating cost, low transaction cost and low capital gains tax.

As the largest mutual fund in the world, Pioneer Fund manages assets of more than $6 trillion and provides services to tens of millions of customers (more than the sum of the customers of its two main competitors). Long-term mutual fund assets account for about 25%, attracting nearly 65% of the net cash inflow of the whole industry in the past five years.

For investors, as long as 80% of Pioneer 500 Index Fund and 20% of Pioneer Extended Market Index Fund are allocated, they can gain the exposure of the whole stock market. Pioneer's bond index fund, fixed-term bond fund and minimum management cost make Pioneer an industry leader in the field of bond funds.

1996 Buffett's shareholder letter said: "The best way to hold stocks is to have an index fund with the lowest rate. Investors who follow this method will eventually win ... most investment professionals. "

Low interest rate means that what is saved is earned, and with the passage of time, there is a compound interest effect. -This is the essence of the index investment strategy.

"We have not adopted any enhancement strategy, but Pioneer Standard & Poor's 500 Index Fund and Pioneer Overall Stock Market Index Fund are one of the two largest index funds in the world, accounting for 30% of Pioneer Fund as of 20 18. Pioneer index funds account for 50% of the overall market share. "

"People who live by the sword will eventually die by the sword." In contrast, actively managed Magellan Fund mainly relies on Peter Lynch. The fund's assets reached the peak of 1 1000 billion dollars from the initial 1 1000 billion dollars, and then it was inevitably shattered.

The rate of index funds is lower: no investment consultant is needed, and the consulting fee paid is zero. —— Prove that the income of passive index funds will exceed that of active management funds. In the spring of 20 18, Standard & Poor's released a report, comparing all kinds of actively managed funds and index funds since 15, showing that all kinds of index funds of Standard & Poor's beat about 93% of actively managed funds. The average annual return of the Standard & Poor's 500 Index is 1 1.3%, and the average annual return of stock mutual funds is 9.7%, which is lower than that of the Standard & Poor's 500 Index 1.6%.

Innovative culture

Nothing is more successful than success, or nothing is less successful than success.

Index fund is considered as "the most important financial product created for individual investors". Pioneer Pilot Group has extended two types of fund versions on the basis of balanced index fund, one is life strategy fund; One is the target retirement fund. Target retirement fund has been proved to be the most powerful concept from money market and fund-dependent fund industry.

Investors who accumulate wealth should consider its high long-term yield, low taxable dividend income and relatively large volatility. When they reach retirement age and begin to enjoy the investment life, investors will look for stocks with higher dividends. 1994 created a life strategy fund; In 2003, a target retirement fund was established. Target retirement funds have quickly become the most popular investment in employee savings plans.

Pioneer Life Strategy Fund:

Strategic income: 20% shares +80% debt;

Conservative income: 40% shares +60% debt;

Ordinary growth: 60% shares +40% debt;

Growth income: 80% shares +20% debt.

Target retirement fund: (TDFs, target date)

Capital) depends on the "decline"

Path) settings.

The fund is usually established every five years. For example, from 2005 to 2035, the stock debt ratio was 90: 10, and gradually decreased to 60:40 as the retirement period approached.

Active and passive target date fund-cost is crucial. The average pioneer rate is 0. 13%, and the average peer rate is 0.7%. By 20 18, the total scale will reach $404 billion. It is the largest product in this field at present, accounting for 36% of the fund market on the whole target day.

Since 2000, the mature development stage of American fund industry has witnessed the bursting of the 200 1 internet bubble and the global financial crisis in 2008, which has seriously affected the financial market. ETF has become the fastest growing fund category, and the target date fund TDF and target risk TRF of pension funds have become the most popular F of products. )

John Berg believes that ETF provides some kind of "dessert" for investors. That is, ETF is regarded as a new tool for diversified investment and the need for intelligent trading. ETF is indispensable for intelligent investment, which is also a computer-based asset allocation model. But he insists that stock trading is the enemy of investors. So there is the "speculative ETF" theory-only long-term investment is the winner's game, and short-term investment is the loser's game.

John Berg factor

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Hate complexity and bureaucracy, praise front-line employees who deal directly with customers.

Every June, Pioneer Partners will have an annual picnic, and the bonus amount will be announced on the spot. It is almost 30% of the annual salary of old employees. Why are you keen on attending big tent parties?

The partners plan to pay a large amount of cash to each employee every year. The size of the bonus pool depends on the savings we save for our customers and the performance of our fund compared with our peers. They don't have to invest a penny, but become partners and share the rewards of pioneers.

The partner program is the pioneer's "most important milestone" because it aims to consolidate the relationship between employees and investors. Employees are interrelated, and employees and investors also care about each other.

"Once you find friends, don't let them go."

People who find jobs are happy because they want nothing more ... Work is sacred.

We may think we are small, but we are only one of the seven billion people in the world. But each of us loves life. Throughout history, our lives are fleeting. But we are by no means so insignificant.

Our earth is just a planet in the solar system. The solar system is only a part of the Milky Way. The diameter of the Milky Way reaches 654.38+ million light years. The Milky Way is only one percent of the universe. Each galaxy has more than 654.38+000 billion stars. In this sense, people are too small.

However, people's value cannot be measured by such standards. We came to this world with a mission. We are here to save our planet. Besides, we should live a meaningful life, we should raise children, serve the society and make contributions to the motherland and the world.

We must try our best to help others. We want to make the world a better place. Although our life is short, isn't it what we should do to make it wonderful?

……

20 16 Buffett wrote to shareholders: "If a statue must be erected on Wall Street to commemorate the person who has made the greatest contribution to ordinary investors, it must be John Berg. Because the return of index funds far exceeds the return of other investment methods, he is their hero and my hero. "

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Maritime Heritage-Pioneer Value

"Passion": piety and diligence

"Brave": bold, reckless and unconventional.

"Agile": Fast forward, full of confidence.

"Magnificence": Magnificent.

…

"John Berg's contribution to investors may be greater than that of any American. Jack, where are you? Can you stand up? "

That star sparkles.

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