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Economy
Devil slips through the back door: Vanguard To Buy Mainland China Shares For $69 Billion EM Index Fund
[Editor’s note: In Benjamin Fulford’s recent news letter he laid out Vanguard and their inter-connectedness which stretches like an Octopus and incorporates all the well known criminals. This acquisition by Vanguard of Mainland China is of concern. At the moment the BRICS countries are not part of the Trans Pacific Partnership agreement. But with Vanguard now entrenched in Mainland China, this does not forebode well for the future for China or the other BRICS countries. China has literally let the devil in through the back door. ]
from Zero Hedge:
Early last week, Chinese shares got a boost (because China’s millions of newly-minted, semi-literate day traders needed to be reassured after the Hanergy debacle) from three pieces of news.
The headline grabbers were: a report (citing unnamed sources) that indicated the quota on the Shanghai-Hong Kong link would be abolished once a similar setup with the Shenzhen exchange is in place later this year, and the announcement of a so-called “mutual fund recognition” scheme that will facilitate cross-border mutual fund flows.
But some of the underlying momentum may have also been attributable to news that FTSE Russell will begin a gradual transition aimed at the eventual inclusion of Chinese A shares in global EM benchmark indices. An interim arrangement will involve two “transitional indices” that include Chinese mainland equities.
Now, Vanguard is set to benchmark its $69 billion FTSE EM index fund against one of these transitional indices.
FT has more:
A surprise move by Vanguard to include onshore Chinese A-shares in its flagship emerging market fund will “put pressure” on other asset managers to follow suit.
Pennsylvania-based Vanguard, which has $3.3tn under management, has said its $50bn FTSE Emerging Markets exchange traded fund, the world’s largest such vehicle, is to adopt a 5.6 per cent weighting to mainland Chinese stocks.
The move follows last week’s decision by index provider FTSE Group to launch a new emerging markets index with an initial China weighting of about 5 per cent, which will run alongside its existing index that has no exposure to A-shares (see table).
Vanguard has opted to switch the benchmark for its ETF to this new FTSE index.
This is potentially quite significant. As you can see from the below, the move will mean a nearly 5% allocation to mainland Chinese equities…
…and, more importantly, will force other providers to follow suit…
John Kennedy, investment director of Harvest Global Investments (UK), a subsidiary of Beijing-based Harvest Fund Management, China’s largest institutional asset manager, said: “Everything I read post the [FTSE] announcement was that this was going to be ignored by the world and his wife, so this is potentially quite a revelation.
“To see somebody adopting it within the week is very very important indeed. It will have quite an impact because it’s a very prominent provider. I would expect others to follow.” Mr Kennedy, whose parent company manages $85bn of assets, about half of which is in A-shares, added:
“The direction of travel is quite clear. International investors have got to think about how they are going to access mainstream Chinese equities and fixed income”.
That said, there are significant logistical hurdles ahead:
Vanguard’s move is an early indicator of what is likely to be an avalanche of overseas investment into the mainland market in the years to come, withmost foreign institutions currently having little or no exposure to A-shares.
The Shanghai and Shenzhen bourses are now large enough to account for 24.2 per cent of emerging market stock capitalisation, according to recent calculations by FTSE.
However the main index providers have shied away from including these A-shares in their benchmarks because of concerns over capital controls and access for foreign investors.
At present, foreign groups can invest in A-shares if they have a quota allowance under Beijing’s qualified foreign institutional investor or renminbi-denominated QFII schemes, for which just $125bn of allocations have so far been made, although this is increasing.
Vanguard was recently awarded a Rmb10bn ($1.6bn) allocation, which it will use to buy A-shares for the ETF and an umbrella fund, which between them have $69bn of assets.
Technical barriers to entry notwithstanding, the Shanghai and Shenzhen bourses are together large enough to account for nearly a quarter of EM market cap which speaks to the potential for incredible inflows once Beijing removes restrictions.
If there is no correction in between, it is truly frightening to consider how large China’s equity bubble will become if, as FTSE CEO Mark Makepeace contends, Chinese equities comprise 20% of global stock portfolios by 2018.
* * *
Statement from Vanguard:
China A-shares in Emerging Markets Stock Index Fund
The addition of China A-shares to the Emerging Markets Stock Index Fund and its ETF share class, VWO, the world’s largest emerging-markets ETF, will provide investors with more complete exposure to a key emerging economy and the second-largest stock market in the world by market cap. With the world’s second-largest GDP, China accounts for 20% of global trade and 7% of global consumption4. China A-shares will represent 5.6% of the new benchmark for the Emerging Markets Index Fund. Vanguard5 recently received a quota for China A-shares, which provide exposure to China’s largest issuers and a level of diversification that isn’t otherwise available in the market.
China A-shares are equity shares in mainland China companies that are traded on the Shanghai and Shenzhen stock exchanges and are only available to foreign investors through regulated systems, including the Qualified Foreign Institutional Investor (QFII) and Renminbi Qualified Foreign Institutional Investor (RQFII) systems or the Shanghai Hong Kong Stock Connect program.
“As the first major emerging markets fund to add exposure to China A-shares, the fund will benefit investors with more diversification, deeper emerging markets exposure, and greater access to the growth potential of Chinese equities,” said Mr. McNabb.
A joint Russian, German and French intelligence investigation of Vanguard was triggered by the arrest earlier this year in Germany of an assistant to US Deputy Secretary of State Victoria Nuland. The arrested individual was caught trying to transport billions of dollars in high quality counterfeit currency to the Ukraine. He has been cooperating fully with the European task force. He told the investigators that Nuland, Senator John McCain, US Secretary of State John Kerry, CIA Director John Brennan and others were employees of Vanguard. According to the Russians, he testified that Vanguard has “printed billions of high quality fake dollars and paid them to mercenaries in Syria, Iraq, Ukraine, Libya etc.” In addition ISIS was a Vanguard subsidiary, according to this source.
Initial reviews of the Russian information by British MI5 intelligence say “the financials are credible.”
The British say Vanguard subsidiary Monsanto’s efforts to control world food production and availability were part of “Vanguard’s strategy for geo-engineering the world population.”
The Russians also state that a company called Gilead Sciences together with the pharmaceutical giant Pfizer (an offshoot of the Nazi IG Farben Corporation) and the Bill & Melinda Gates foundation were all involved in the spreading of Ebola as well as in the marketing of Ebola cures.In any case, the publication of Vanguard secrets has caused their top investors to try to disconnect themselves from nasty subsidiaries like ISIS. The result is that ISIS now has cash problems and has had to resort to charging North African villagers $3000 per head to be shipped to Italy, according to MI5.
A portion of the Russian report has been pasted to the end of this week’s newsletter. Hopefully this will trigger some serious law enforcement activity against this corporate monstrosity.
In any case, there are other signs the cabal is in trouble. One big event was the resignation of former UK prime minister Tony Blair as special “Middle East Peace Envoy.”
What this means is that he has been stripped of diplomatic immunity and can now face war crimes charges for his involvement in the destruction of Iraq. Blair is a known squealer and you can be sure he is singing like a canary about the Bushes and other Khazarian Nazis. Let us hope the British finally get the gumption do the decent thing and take down this mass murderer and his fellow traitors.
The other interesting incident was the fact the US Secretary of State John Kerry “broke his leg in a bicycle accident,” and had to call off his negotiations with Iran. We have not been able to confirm this yet but, past experience makes us believe Kerry was deliberately assaulted by fellow gangsters who were angry about his Iranian deal making.
Asian sources say the nuclear negotiations with Iran had nothing to do with Iran acquiring nuclear weapons because Iran has had nuclear weapons since the time of the Shah. A cousin of the Shah of Iran has also confirmed this. What the so-called Iranian nuclear negotiations are really about is an attempt to get the Iranian nuclear program to stop using Russian supplied Uranium and switch to Western controlled Thorium, the Asian sources say. The Iranians are probably going to end up using both.
In any case, patriots in the US military need remove gangsters like Kerry from power, restore the US republic and end corporate cabal rule ASAP. If not, the United States will continue its descent into third world status. Data on real inflation rates in the US put out by Chapwood Investments show that US economy has shrunk by 21.4% since 2011.
Recent drops in world trade volume also make it clear the current Western dominated financial system is becoming increasingly dysfunctional. The US military needs to march on Washington DC and New York to clean out the Khazarian cabalist nests. Canadian troops are ready to help if asked. It is time for a second American revolution.
Appendix:Russian research on the Vanguard corporation, the secret controller of the much of the Western corporate power structure.The four companies that are present in all cases below and in all decisions: Vanguard, Fidelity, BlackRock and State Street. All of them “belong together”, but if to check out carefully the balance of shares, it turns out that in reality all these companies controlled by Vanguard. So, all of these partners or “competitors” of Fidelity, BlackRock and State Street belong to Vanguard Group.Please, look at the largest, companies in various industries, controlled by the “Big Four”, and upon closer inspection control by Corporation Vanguard: Alcoa Inc. Altria Group Inc., American International Group Inc., AT & T Inc., Boeing Co., Caterpillar Inc., Coca-Cola Co., DuPont & Co., Exxon Mobil Corp., General Electric Co., General Motors Corporation, Hewlett- Packard Co., Home Depot Inc., Honeywell International Inc., Intel Corp., International Business Machines Corp., Johnson & Johnson, JP Morgan Chase & Co., McDonald’s Corp., Merck & Co. Inc., Microsoft Corp., 3M Co., Pfizer Inc., Procter & Gamble Co., United Technologies Corp., Verizon Communications Inc., Wal-Mart Stores Inc. Time Warner, Walt Disney, the corporation «Halliburton», Viacom, Rupert Murdoch’s News Corporation, CBS Corporation, NBC Universal …To date, tens of trillions of dollars are controlled by these investors, and all of the major global corporations controlled by the group of investors that own asset management group Vanguard: Dick Cheney, the Rothschilds, the Bushes, the Rockefellers, Clintons, Donald Rumsfeld and many other influential people and owners of the Federal Reserve. They virtually monopolized foreign and US defense policy and almost all of the major defense corporations.
Group Vanguard, itself, also controls the major world media. In addition, Corporation Vanguard is working on a number of key figures of the Central Intelligence Agency, including the namesake of a President of Vanguard , the CIA Director John Brennan.
It is important to know who really controls the major banks, and we will start from the United States.
In the first place -JP Morgan Chase with 2.39 trillion dollars of assets. Its large institutional investor is Vanguard Group, Inc. Between the top ten investors the Vanguard Total Stock Market Index Fund, Vanguard Institutional Index Fund and the Vanguard 500 Index Fund.
In second place – Bank of America with assets 2.17 trillion. Its large institutional investor is Vanguard Group, Inc. The top ten investors – investment funds – Vanguard Total Stock Market Index Fund, Vanguard Institutional Index Fund, Vanguard 500 Index Fund and Vanguard / Windsor II.
The third place — Citigroup with assets 1,88 trillion. The biggest investor —Vanguard Group, Inc. First ten: Vanguard Total Stock Market Index Fund, Vanguard Institutional Index Fund, Vanguard 500 Index Fund, Vanguard/Windsor II, Vanguard/Wellington Fund, Inc. и Fidelity Contra Fund, Inc. We should consider that some of them, for example, «Fidelity» – this is also Vanguard, and some others, for example, «JPMorgan», is fully controlled by Vanguard, as well. «Fidelity» and its structures belong to Vanguard…
And finally, Warren Buffett’s favorite–Wells Fargo. Assets: 1.44 trillion, deposits: 1.01 trillion. The list of the largest institutional investors: Vanguard Group, Inc. is only in second place, but this is offset by the top ten investors – investment funds: Vanguard Total Stock Market Index Fund, Fidelity Contra Fund, Inc., Vanguard Institutional Index Fund, Vanguard 500 Index Fund and Vanguard / Wellington Fund, Inc. (All of them are Vanguard’s “daughters”)
That’s what the picture of the investigation loomed today. The largest companies in the world- are banks Bank of America, JP Morgan, Citigroup, Wells Fargo, Goldman Sachs, and Morgan Stanley. Let’s see who their major shareholders. Bank of America, State Street Corporation, Vanguard Group, BlackRock, FMR (Fidelity), Paulson, JP Morgan, T. Rowe, Capital World Investors, AXA, Bank of NY, Mellon.
JP Morgan: State Street Corp., Vanguard Group, FMR (it is Fidelity), BlackRock, T. Rowe, AXA, Capital World Investor, Capital Research Global Investor, Northern Trust Corp. and Bank of Mellon.
Citigroup: State Street Corporation, Vanguard Group, BlackRock, Paulson, FMR, Capital World Investor, JP Morgan, Northern Trust Corporation, Fairhome Capital Mgmt and Bank of NY Mellon.
Wells Fargo: Berkshire Hathaway, FMR, State Street, Vanguard Group, Capital World Investors, BlackRock, Wellington Mgmt, AXA, T. Rowe and Davis Selected Advisers
Check yourself again: As I mentioned above, the leading financial company is fully controlled by ten institutional and/or stock shareholders of which are the nucleus of the four companies that are present in all cases and in all decisions: Vanguard, Fidelity, BlackRock and State Street.
All of them “belong together”, but if to check out carefully the balance of shares, it turns out that in reality all these companies controlled by Vanguard. So, all of these partners or “competitors” Fidelity, BlackRock and State Street belong to Vanguard Group..
MonsantoThe corporation «Monsanto» hated by millions of people around the world, and especially in the US, but its owners did not care about it for a simple reason: no one thought about its real hosts. August 26, 2014. As the owners of «Monsanto» public perceives individuals: William U. Parfet, owning, 284,642 shares of the company, Hugh Grant – 253715, Robert T. Fraley- 95212, Brett D. Begemann – 103523 and David F. Snively to 62072 shares. Impressively, all of them – are very rich and influential people. Total all individuals – the owners of the corporation «Monsanto» have 799,164 shares.
However, the first in the list of institutional shareholders is (who would you think ?) Vanguard Group, Inc. from 31201773 shares, that is 39 or more times greater than the leading “owners” of the company in total.
Let’s see another list of shareholders «Monsanto» – mutual funds: Vanguard Total Stock Market Index Fund – 8118741 action, Vanguard / Primecap Fund – 6663460, Vanguard Institutional Index Fund – 5226511 and Vanguard 500 Index Fund – 517 086.
At this point, there are not any of the new players, but one new company involved: Fidelity Grows Company Fund with 4072871 shares. The trick is that the mutual fund Fidelity Investment Services working closely with Vanguard Group.
Go down to the list: Vanguard Specialized-Dividend Appreciation Index Fund – More shares 3641513. Do your eyes dazzle by Vanguard? But there is no questions for regulatory agencies: the shares are distributed among the different funds, and all of them are different legal entities!
As a leading figure of «Monsanto» known by the public is Mr. Hugh Grant with the aforementioned 253,715 shares of the corporation. He served as a President, Chairman and Chief Executive Officer. Mr. Grant does not explain to any nobody, in whose hands are the reins of Monsanto’s power in reality!
GoogleGoogle!?! You search, and you guess that Google owns by a Russian Jew, Mr. Sergey Brin.
First, find a list of the owners. There are Eric E. Schmidt -1240463 shares, John L. Doerr -2767 shares, Sergey Brin -75000 shares, David C. Drummond -21332 stocks and shares Paul S. Otellini -643. Tough Guys.Go down below to the most important institutional investors, and in the first place is State Street Corporation with 22757690 shares, constituting 6.73% of the company as much as Google. So who is the real owner ?!In second place with a certain abbreviation is FMRLLC with its 20368861 shares and 6.02%. Nothing mysterious. This is Fidelity Management and Research.The third –Vanguard Group, Inc. with 14624137 shares and 4.32%. At this stage of counting the total share of Vanguard and Fidelity is already 10.34%. Big Boys.
Important!However, we go further: among the most important investment funds of the investors of Google: first is Fidelity Contra fund Inc. with 6925967 shares or 2.05%, on the fourth –Fidelity Growth Company Fund (1,809,678, 0.54%) and on the sixth -Vanguard / Primecap Fund (1,417,843, 0.42%).Total aggregate Vanguard and Fidelity Corporations shares of Google on August 28, 2014 is 45,146,486 (forty-five million one hundred forty-six thousand four hundred eighty-six shares), while the whole world “knows” that Mr. Sergey Brin owns the Google. Mr. Brin has seventy five thousand shares. I informed you already that Vanguard owns the FidelityIn contrast to the Vanguard and Fidelity, holding voting shares, Brin interests in income rather than in control, so all of his shares belong to the category B that filed under section 14 (A) of the Act of 1934 “On Securities Exchanges ” declaration signed by Eric Schmidt. The number of category A shares that owned by Sergey Brin is 0.However, Brin as a Director, who voting by proxy uses not his shares, but information about the owners of these shares I did not find, and it is possible that among owners of these shares would be the same Vanguard.
MicrosoftPlease, see who controls Microsoft. To do this again we will use “boring” German data, this time onhttps://de.finance.yahoo.com/q/mh?s=MSFT.List of Direct owners—individuals as of on August 28, 2014: Steven A. Ballmerc 333,254,734 shares, William H. Gates III -c 297992934, Mason G. Morfit -827 shares, Brian Kevin Turner -1295454, and Steven J. Sinofsky to 1176195 shares.List of major institutional investors opens Vanguard Group, Inc. to 386749214 shares, and in fourth place here FMR (Fidelity!), LLC to 272942627. In the first place on the list of the most important foundations Vanguard Total Stock Market Index Fund with 115,585,047 shares, and below there are Vanguard Institutional Index Fund-Institutional Index Fund -75214603 and Vanguard 500 Indexm Fund -74414992.
AT&TNow, we will take a quick look at the AT&T. The top ten institutional investors it looks like: The Vanguard Group, Inc., State Street Corporation, Evercore Trust Company, NA, BlackRock Institutional Trust Company, NA, Bank of New York Mellon Corporation, BlackRock Fund Advisors, Northern Trust Corporation, Dimensional Fund Advisors LP, Capital Research Global Investors and BlackRock Group Limited. Only the owners of Evercore Trust Company are not recognized, but the other nine are Vanguard.The Top Ten institutional investors – investment fundsThe top ten institutional investors – investment funds: Vanguard Total Stock Market Index Fund, Vanguard 500 Index Fund, SPDR S & P 500 ETF Trust, Vanguard Institutional Index Fund-Institutional Index Fund, Capital Income Builder, Inc., Franklin Custodian Funds-Income Fund, Spartan 500 Index Fund, Shares Core S & P 500 ETF, DFA US Large Cap Value Series and Vanguard Index-Value Index Fund. From this list it is not clear to me who owns the Shares Core S & P 500 ETF and the DFA US Large Cap Value Series. Other eight out of ten are Vanguard.https://de.finance.yahoo.com/q/mh?s=T%2C+&ql=1ComcastPlease ask me about Comcast and its purchase of 100% shares of Time Warner Cable, of a “daughter” of its alleged largest competitor, media conglomerate AT&T Cable. This “daughter”, Time Warner Cable controls 60% of both the Internet and cable television in the United States.96.69% stake in Comcast is in the hands of institutional investors. Here are the first five: STRS Ohio – 150,105,674, Capital World Investors – 134,729,551, Vanguard Group, Inc. – 125 644 169, State Street Corp. – 104 763 362, and FMR LLC -73 866 510.http://www.nasdaq.com/de/symbol/cmcsa/ownership-summaryI show to you above, but not many of other Americans know that State Street and Fidelity (FMR) are Vanguard, too.Facts on EbolaGilead Sciences,
I do not remember if the FBI agents requested me to investigate transmitted contactless Virus Ebola, which was developed in CIA’s secret laboratory in Guinea by specialists of the American biotechnology company «Gilead Sciences», after which the epidemic was spread covering several countries.The Headquarter of «Gilead Sciences» is located in Foster City, California. If the FBI agents requested me to investigate Ebola, I inform you below about the real owners of the «Gilead Sciences»! If the FBI did not request me to investigate Ebola, please, delete the information below.The nominal owners—individuals: Dr. John C. Martin (President, Chief Executive Officer), Norbert W. Bischofberger, John F. Milligan, Etienne Davignon and James M. Denny.The real control of major institutional shareholders of «Gilead Sciences» belongs to Vanguard Group, Inc. Other major shareholders of mutual investments: Vanguard Total Stock Market Index Fund; Vanguard Institutional Index Fund, and Vanguard 500 Index Fund.
