“There will be profound changes in the way investors look at the world going forward,” Vanguard CEO Bill McNabb told Reuters.

McNabb said: “We are going to see a return to higher savings rates and much more focus on diversification [and] balanced funds,” including alternative and international assets.

 

Strong demand for set-it-and-forget-it target-date funds will continue. “They don’t insulate you fully from a downturn,” the Vanguard CEO said, “but they protect you from a dramatic downturn.”

 

McNabb also believes smaller, independent asset managers will be acquired by larger firms.

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