Asset Management

Vanguard’s Mifid move is a bigger deal than it seems

Vanguard's decision may be largely symbolic but it could encourage other fund managers to cover the cost of research

In focus: Vanguard's sheer size magnifies the significance of its decision to stop charging clients for research
In focus: Vanguard's sheer size magnifies the significance of its decision to stop charging clients for research Photo: iStockphoto

At first glance, the move by Vanguard, the US index-funds manager, to stump up the cost of equity research out of its own pocket appears gracious.

Rather than charging its investors, the firm will be taking on a cost of about $5m, or £3.8m, a year to pay for the research it receives — a real saving for investors in its European mutual funds, where the change will apply.

WSJ Logo
Europe Draws Up Retaliatory Tariffs for U.S. Goods in Case No Trade Deal Is ReachedExternal link

Europe Draws Up Retaliatory Tariffs for U.S. Goods in Case No Trade Deal Is Reached