1 Min Read
LONDON, Feb 20 (Reuters) - Vanguard, the world's second biggest asset manager, on Monday called for a 'health warning' to be included with a fund to help investors understand the impact fees have on their returns.
The suggestion formed part of the company's response to Britain's regulator, the Financial Conduct Authority, which recently released its interim findings into the asset management industry as it looks to boost competition and value for money in the sector.
"Performance is a potential. Costs are a certainty, hence why investors should focus as much, if not more, on costs," Sean Hagerty, Head of Vanguard’s European business, said in a statement.
"A 'health warning' on the impact of costs would be a clear sign of intent from the industry that it’s putting the needs of the investor first."
Vanguard managed more than $3.5 trillion in assets at the end of June, 2016, mainly in low-cost passive funds. (Reporting by Simon Jessop; editing by Carolyn Cohn)