This week, our Masters in Business radio podcast, we speak withBill McNabb, chief executive officer and chairman of Vanguard Group.
He has a message for the fund industry: “We are not done on the cost side,” he said in an interview earlier this week as part of the Masters in Business series. “We think we need to keep raising the bar on that.”
Vanguard, a pioneer in the business of index funds, now has about $3.1 trillion in assets under management. Its mutual ownership structure gives it a 30 percent to 40 percent cost advantage, McNabb said.
Since McNabb took over in 2008, assets under management have almost tripled. Although Vanguard is known mostly for its index funds, it also oversees about $1 trillion in actively managed portfolios. McNabb discusses the intense fund manager selection at Vanguard.
He also describes what it was like assuming the CEO position just two weeks before Lehman Brothers and American International Group imploded.
The interview will be broadcast this weekend on Bloomberg radio. Listen to the full podcast on iTunes, Luminary, SoundCloud (below) and on Bloomberg.com. Earlier podcasts can be found on iTunes and at Bloombergview.com.
Next week, we speak with the Dimensional Funds founder, chairman and co-CEO David Booth.
