Strong asset flow is coming from Asia for the Vanguard Group, the No. 2 mutual fund firm in the U.S. It has gathered about $40 billion from the region. The influx is said to have come as institutions raise their exposure to low-cost indexed investments, according to a report from Reuters.

But Vanguard chief executive John Brennan said the Valley Forge, Penn.-based fund giant would steer clear of the high-cost retail market in most parts of Asia.

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