Vanguard Group's flagship low-cost index mutual funds are quickly soaking up assets from institutional investors through a newly opened newly opened distribution arm in Singapore, Reuters reports.
Asian investors are warming up to Vanguard's style of diversifying assets while keeping costs to a minimum. Within the last nine months, they have ploughed $350 million into U.S. equity index investments, according to Jon Robinson, managing director of Vanguard's Singapore arm.
The influx of assets into index investments from markets like Korea and Taiwan affirms that Vanguard's legacy as a cost-conscious asset manager still appeals to institutional investors. In recent years, Vanguard has diversified into pricier types of actively managed mutual funds.
Successive bear markets in Asian countries have reawakened discussions in those regions about containing fees. Vanguard claims that its average 0.25% index mutual fund expense ratio is significantly lower than the 1.38% average U.S. actively managed mutual fund fee.