FINANCIAL TIMES: Vanguard, the low-cost fund house, has smashed the record for global asset gathering for a third successive year, firing a warning shot across the bows of more expensive rivals that have been losing ground to passive investment managers. ..
Passive funds account for around 35 per cent of all mutual fund assets in the US, compared with just 2 per cent 20 years ago. However, penetration by index trackers in other mutual fund markets is far lower, generally below 10 per cent. This, said Mr McNabb, illustrated the potential for future expansion.
Vanguard’s mutual fund structure, which means it is owned by its clients and not shareholders, is unique in the asset management industry…(more)
