hile most of the rest of the fund industry is still trying to bounce back from layoffs, low-cost leader Vanguard is readying a new operations center. The new Vanguard facility will be located in Northeast Philadelphia, according to the Philadelphia Inquirer
The ability of Vanguard to open the facility, dubbed "Fort Conrail" by crew members, underscores the haves and have-nots nature of the current market. By focusing on low cost and indexing Vanguard has become a safe haven for many investors burned by growth funds. It also has a non-performance based story to tell potential investors and a loyal clientele of investors and advisors.
That is making all the difference in the current tight market.
Philadelphia Mayor John F. Street
told the media that Vanguard has promised to spend up to $20 million renovating the leased site and another $60 million to equip it. Vanguard will staff the new center with 50 current employees who will relocate from their current location and potentially another 150 new hires.
The final plans on the new employees will likely be contingent on whether the Philadelphia city council approves a 15-year tax abatement for Vanguard. The abatement has already been approved by the state of Pennsylvania.
Vanguard was attracted to the location by more than the tax break. Vanguard will not reveal the exact location of the bunker, but press reports place it underneath the Conrail operations center. The railroad's center already providers a security perimeter and a hardened location that appealed to Vanguard. The site will serve as the fund firm's second operations site.
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