Quantcast
The MFWire
Manage Email Alerts | Sponsorships | About MFWire | Who We Are

Subscribe to MFWire.com's News Alerts [click]

Rating:McNabb Says Benchmark Switch Was Smart Not Rated 0.0 Email Routing List Email & Route  Print Print
Wednesday, July 10, 2013

McNabb Says Benchmark Switch Was Smart

News summary by MFWire's editors

Reuters ran an exclusive featuring an interview with Vanguard[profile]'s CEO William McNabb, who declared that the company has accumulated $40 billion in net assets from funds that switched away from benchmarks by MSCI. Vanguard announced the benchmark change in October of last year.
"If you take those 22 funds, $40 billion has been accumulated during the first half of 2013," McNabb told Reuters. "We think people are accepting the change. It hasn't been the drag that a lot of people predicted it would be."
Vanguard shifted six international stock funds with $170 billion in assets to track index from the FTSE Group, and 16 U.S. stocks and balanced funds that have $367 billion of assets, including the Vanguard Total Stock Market ETF, switched to indexes operated by the University of Chicago's Center for Research in Security Prices (CRSP), Tim McLaughlin wrote. This recent announcement comes not long after Lipper data showed Vanguard had $9.7 billion in net outflows for bond funds June and $400 million in outflows from balanced funds. McNabb indicated the losses were slightly self-inflicted, however:

McNabb said the company's strident warnings to investors about bond risks have played a part in slowing down the money going into those investments.
"Money has left, but at a less frantic pace," McNabb said. "People have certainly reacted to changes in the bond market. Money is moving from bonds into money funds with basically no yield."
If you want to read more, click here

Edited by: Casey Quinlan


Stay ahead of the news ... Sign up for our email alerts now
CLICK HERE

0.0
 Do You Recommend This Story?



GO TO: MFWire
Return to Top
 News Archives
2018: Q4Q3Q2Q1
2017: Q4Q3Q2Q1
2016: Q4Q3Q2Q1
2015: Q4Q3Q2Q1
2014: Q4Q3Q2Q1
2013: Q4Q3Q2Q1
2012: Q4Q3Q2Q1
2011: Q4Q3Q2Q1
2010: Q4Q3Q2Q1
2009: Q4Q3Q2Q1
2008: Q4Q3Q2Q1
2007: Q4Q3Q2Q1
2006: Q4Q3Q2Q1
2005: Q4Q3Q2Q1
2004: Q4Q3Q2Q1
2003: Q4Q3Q2Q1
2002: Q4Q3Q2Q1
 Subscribe via RSS:
Raw XML
Add to My Yahoo!
follow us in feedly




©All rights reserved to InvestmentWires, Inc. 1997-2018
14 Wall Street | 20th Floor | New York, NY 10005 | P: 212-331-8968 | F: 212-331-8998
Privacy Policy :: Terms of Use