LONDON Feb 20 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
"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
"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)