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Vanguard hits back at Fidelity's loss-leader strategy by courting higher-margin businesses, like China and private equity, and axing low-margin ones like annuities -- Wealth management franchises are next -- and Chinese foray yields $315 million AUM in first 100 days, as ANT files blockbuster IPO

The zero-fee scourge of index funds awakened the sleeping Malvern, Pa.-based giant from its predictable destiny and now CEO Tim Buckley is unapologetically showing a willingness to cut losses and seek risk. His Chinese strategy seems to be already paying off.

Author Oisin Breen July 8, 2019 at 7:49 PM
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Karin Risi: We’re deepening our focus on our core priorities.

Related Moves

Biz Briefs: The sorry scene at my local First Republic branch • Schwab launches new (smaller) lay-off round • Schwab hoovers pennies passing FINRA fee to clients • Gensler pleas for funds • Fidelity owner's private equity pres. retires • an Orion-Envestnet staff switcheroo • LPL dumps FutureAdvisor

Range Rovers screeched in and drivers joined a grim queue to get their cash, and cookie • The Schwab-TDA deal cull count now stands at roughly 3.5% of its staff • FMR's hockey star president has stepped down • SEC chief wants more enforcers • An Envestnet executive proves joining a rival is good business • LPL now has an in-house robot.

April 29, 2023 at 1:36 AM

Biz Briefs: Vanguard's tax-loss harvest yields a caveat• Vermont green with envy ... of red states? • CFP Board spends $12 million on bungee metaphor • BlackRock isn't neutral on Credit Suisse • Women are the Goliath of 'David' in UK finance

Tax-loss harvest gains may have some home assembly required, says Jeff DeMaso • Adrian Johnstone is now in the driving seat at Practifi • CFP Board spending just topped $150 million • and Vermont shares some Texas thinking on ESG investing.

March 25, 2023 at 1:32 AM

Biz Briefs: Fidelity says humans beat robots, even for Gen Z • Joe Lonsdale's Opto starts signing RIA test-drivers • Vanguard launches oddly delayed fund • Wealthbox hires, and Dynasty buys

Fidelity wins Delta Airlines business with sweetener • Opto pairs-up with Riskalyze and Merchant • Moonfare raises $15 million • CAIS bucks real estate trend • Vanguard launches "curious[ly]" delayed fund • WealthBox, Dynasty, and others buy and hire.

March 8, 2023 at 3:28 AM

Fidelity will hire 4,000 staff in first half -- a staggering number but a tapering off from 'unprecedented' rate in 2021-2022 that catapulted it to 68,000 employees

The $10.3 trillion giant explains its hiring -- in a layoff environment -- as an RIA-like goal, namely having the human bandwidth to develop 'lifetime' relationships with its 40 million investors

February 17, 2023 at 2:49 AM

See more related moves



July 9, 2019 — 5:53 PM
Doing business with Communist China is unwise and unethical. That Communist state is guilty of industrial espionage on a staggering scale. Yet financial firms turn a blind eye in order to acquire a piece of that state controlled market, thinking it to be lucrative and highly profitable. As the saying goes, "profit has no conscience".
Brooke Southall

Brooke Southall

July 9, 2019 — 5:58 PM
That'd be a hell of a debate topic -- the ethics of doing business with China. After all, hardly a minute passes when we aren't using Chinese products and writing hot checks against money we all borrow from China. But, yes, the intellectual theft is real, too.


July 24, 2019 — 5:43 PM
I am both surprised and concerned about Vanguard's abandonment of its investors in its Transamerica variable annuity fund who invested 32 billion into that Vanguard program which Vanguard represented and promised it would manage, control associate fees and costs, and include as part of those investors' Vanguard Portfolio. How can Vanguard, while still charging its fees to those investors, now say Transamerica will manage the fund without any restriction of fees and costs, which will likely be increased, and remove those investments from those investors' Vanguard portfolios. It's rationale that the investors of a $32 billion program don't count after Vanguard took their money for more than 14 years is clearly wrong, in breach of its obligations to those investors, and SEC regulations requiring it to abide by the terms and conditions pursuant to which people invested in that Vanguard Program. That it is a multi-trillion dollar business doesn't give it the right to say to hell with those investors.

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