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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.

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