May 20, 2014
To Vanguard Principals and Veterans:
As you all must know by now, I regard recognition of Vanguard in The Economist as among the highest possible accolades. This cover story in the issue of May 3, 2014, entitled “Death of the Fund Manager” is one more testimonial to all the good we do here at Vanguard.
Attached are: (1) the opening editorial, “Cheap is Cheerful,” and (2) the main story, “Briefing: Fund Management. Will Invest for Food.” (Both pieces are informative and insightful. Too bad that the headlines fail to suggest that.)
Despite the accolades for index (“tracker” in the UK) funds, the authors seem unaware of the impact that indexing has already had on Vanguard and the fund industry. Ever irrepressible, I wrote a letter to the editor presenting the data. It’s probably too late and long to be published, but I’m sure you’ll enjoy it (Attachment 3).
We’ve come such a long way since we began in 1974. Thank you for all your help in making it happen.
Jack