The $10 trillion wealth manager has hit back at speculation its superannuation fund launch is behind schedule, confident it will still disrupt the local market.
in November 2019, in a move that shocked the local industry because of the global behemoth’s track record of disrupting wealth management models that overcharge and under-deliver.So self-assured was Vanguard of its new Australian venture that it abandoned its long-standing business of managing money for third-party super funds,But the world’s second-largest asset manager went relatively quiet about the project throughout the COVID-19 pandemic.
But he pointed to Vanguard’s recruitment of about 100 new employees to work for the superannuation business as evidence of the firm’s commitment to the Australian project. “We certainly have a mantra around low cost, although we’re not always the lowest cost. The more scale we gain, the more we will lower those costs. We think out of the box, [our fees] will be very competitive.”Mr Lovett revealed that the first iteration of Vanguard Super would be an index-only product, meaning it has a passive investment strategy that seeks to mimic the performance of the market rather than trying to beat it.
“We think benchmarking matters and makes sense,” he said. “We’re a believer in the direction that the regulator and [former] government have taken it.”
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