Vanguard is one of the most successful fund management companies in the world. Based in Pennsylvania, it’s starting to build a large customer base in Europe, and particularly the UK. But is Vanguard a sensible option for people looking for a reliable asset manager to invest with?
The US-based investment giant Vanguard has only been operating in this country since 2009, but it has already established itself as one of the major players in UK financial services.
Vanguard currently has around 635,000 UK customers with approximately £24 billion of savings, and about 50 million customers the world, mainly in North America. You may be familiar with its “V for Value” advertising campaign, which highlights its commitment to delivering value through low-cost investment options.
So how good a company is Vanguard? And is it a sensible choice if you’re looking for a firm to invest your money with?
There is certainly a great deal to admire about Vanguard. Its late founder, Jack Bogle, was an outspoken advocate for better investment outcomes. He was a passionate believer in putting customers first, reducing fees, greater transparency and investor education.
Bogle is best remembered as a champion of low-cost index funds. “The winning formula for success in investing,” he wrote in The Little Book of Common Sense Investing, “is owning the entire stock market through an index fund, and then doing nothing. Just stay the course.”
But despite its close association with indexing, first and foremost Vanguard is — and indeed always has been — a provider of actively managed funds. So are its active funds worth investing in?
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