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Bill McNabb, the CEO of $3.9 trillion fund giant Vanguard, has a message for money managers everywhere: Drop your fees.
Some are asking whether active management is “dead,” he said in a blog post
. His firm has been one of the biggest beneficiaries of the shift towards index funds.
“Active management can survive-and even succeed-but only if it’s offered at much lower expense,” McNabb said.
Elsewhere in investing news, George Soros reportedly lost about $1 billion after Trump’s election. And the CIO of a $490 billion fund told us the one “guaranteed losing approach” to investing.
Lastly, Morgan Stanley has released a big report on the “Big Debates” of 2017, which highlights the key questions they think will shape global markets over the next 12 months.
And here’s a roundup of stories from across Wall Street:
The strength of the US dollar is forcing China down a path it has been trying to avoid for years, pushing it to slow the money machine that has propelled its economy since 2008. This is a moment many China watchers have been waiting for — it just didn’t come how, when, or why they thought it would.
In banking, a job advert for ‘Assistant Head Butler’ at Rothschild & Co offers a rare glimpse inside one of the oldest investment banks in the world.
In tech news, Amazon says it will create 100,000 full-time, full-benefit jobs in the US. Apple isreportedly planning a major push into original TV shows and movies. And Blackberry is quietly trying to make a comeback — but not with phones.
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