Vanguard has amassed nearly $7 billion in assets undermanagement since jumping into the small-business retirement planbusiness and it’s looking for more.

|

That’s according to Vanguard CEO F. William McNabb III, whorecently spoke with journalists in London about the company’slatest plans for that segment of the market.

|

“Market forces haven’t worked that clearly” for small-businessplans, which are still paying higher fees than larger plans, he told the Wall StreetJournal. But that could be about to change, withMcNabb noting, “We’ve entered the small-plan market veryaggressively.”

|

Vanguard, in fact, has been looking for growth in thesmall-business end of the market since it entered the fray in 2011. As of the end of 2014, ithad amassed $6.7 billion in assets under management in itssmall-business products, from 2,678 pension plans and 126,956participants.

|

The firm introduced its lower-cost target-date funds at the endof February, with the launch of an Institutional Target DateRetirement Fund lineup.

|

McNabb indicated that Vanguard would further reduce fees asbusiness grows, applying additional pressure to its competitors inthe process. “I think you’ll see the fees in the small end comedown,” he said.

|

Also read: Who’ll replace the superhero of mutualfunds?

Complete your profile to continue reading and get FREE access to BenefitsPRO, part of your ALM digital membership.

  • Critical BenefitsPRO information including cutting edge post-reform success strategies, access to educational webcasts and videos, resources from industry leaders, and informative Newsletters.
  • Exclusive discounts on ALM, BenefitsPRO magazine and BenefitsPRO.com events
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com
NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.