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Vanguard Group Inc. in 2006 and Target Retirement Funds Case Solution & Answer

The Vanguard Group is one of the largest asset managers in the U.S., with more than $ 1 trillion in assets, ninety percent are assets of investment funds, and more than 12,000 employees in late 2006. Vanguard has acquired a solid reputation as reference manager for low cost investment and customer service quality is not always what he thinks is best for its clients. Vanguard has recently launched a range of life cycle funds called target retirement funds. Lifecycle funds, which have proved popular among investors in pension plans sponsored defined contribution business and individual investors, based on the idea of ​​”investment function of age,” or the notion that investors should allocate more of their long-term savings in stocks when they are young and have longer retirement horizons and reduce the subsidy as they approach retirement. Vanguard management examines the central role of these funds can play in initiatives retail services, defined contribution and advising clients increasingly Vanguard. The pending approval of the Law on the protection of pensions, may be defined for sponsors play a more active role in advising participants plan contributions and assets in individual retirement accounts and pension defined pension contribution should continue its rapid growth in the future. If Vanguard promote these funds as the next step in the search for Vanguard investment, low cost simple and effective as it can be? At stake is the Vanguard brand and customer confidence, and well-being of millions of Americans are now responsible for providing their own retirement.
by
Luis M. Viceira
Source: Harvard Business School
32 pages.
Release: June 26, 2007. Prod #: 207129-PDF-ENG
Vanguard Group, Inc., in 2006 and the target retirement funds Case Solution

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