Vanguard CEO McNabb Says `Room to Go' on Cutting Fees Furtherby
He says Vanguard flows in January were `exceedingly strong'
Firm last year attracted a record $236 billion from clients
Vanguard Group Inc. Chief Executive Officer Bill McNabb, whose firm is known for its low-cost index funds, said his company can cut fees further.
Last year Vanguard reduced fees on about 100 funds and it has announced cuts on another 50 funds in 2016, McNabb said.
“We think we have opportunities,” McNabb said in a televised interview Friday on "Bloomberg <GO> hosted by Stephanie Ruhle." “There is room to go.”
Last month Vanguard, the world’s largest mutual fund company, filed to create a new share class for some funds that would charge institutional investors as little as one cent for every $100 invested.
McNabb described the money flows Vanguard attracted in January as “exceedingly strong.” The firm won deposits of $22.5 billion during the month after gathering a record $236 billion in 2015.
Vanguard, based in Valley Forge, Pennsylvania, manages more than $3 trillion.