is jumping into the United Kingdom asset management business as a prelude to more global expansion. Nick Rice reports
that move in Monday's Financial Times
, even as Vanguard CEO Bill McNabb
described the beginning of his working life in Sunday's New York Times
Rice predicts Vanguard's UK move will involve both active and passive offerings, and describes it as yet another factor, along with the fallen stock market and the resulting outflows, that put downward fee pressure on other asset managers in the UK. Citing Morngingstar
, he notes that UK index funds cost 70 to 100 basis points and active one cost 150 bps, compared with 15 and 26 bps for Vanguard's US offerings.
Meanwhile, McNabb tells the New York Times about
his first few jobs: a paper route in Rochester, a Latin teacher and sports coach at Haverford, a credit analyst at Chase Manhattan Bank, and a guaranteed investment contract (GIC, a kind of insurance-based fixed offering the 401(k) market) specialist. He likens business to the teamwork needed in rowing, a sport he apparently still competes in.
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