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Rekenthaler Report

Where Vanguard’s CEO Sees The Fund Industry Going

Vanguard CEO Bill McNabb gives his take on the fiduciary rule, pricing for advice, expected market returns, corporate governance, and target-date funds.

Looking Ahead
Vanguard CEO Bill McNabb kicked off Wednesday’s session of the Morningstar Investment Conference, discussing, among other topics, the new Department of Labor fiduciary rules, pricing for advice, expected market returns, corporate governance, and target-date funds.

As Vanguard has, by a comfortable margin, been the most prophetic of fund companies, building its business to go where the future was headed, while its competitors mostly managed for the present, McNabb’s words carry considerable weight. Being the leader of the world’s largest, most-successful fund company doesn’t make his beliefs correct—but that would be the sound bet. Disputing with McNabb about the direction the fund industry is like disagreeing with Warren Buffett about the prognosis for corporate America; it can be done, but not lightly.