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Vanguard pulled in more than $1bn a day in 2017

Vanguard pulled in more than $1bn a day in 2017

Vanguard raked in more than $1 billion in each business day of 2017 as it broke its own record as the world’s fastest growing asset manager for the sixth year in a row.

The firm released a preliminary estimate according to the Financial Times which showed it pulled in $386 billion (£284.5 billion) in net inflows last year, a 13.9% jump on the $323 billion gained in 2016.

The figures have pushed Vanguard’s assets under management (AUM) over the $5 trillion mark as it closes in on BlackRock, the world’s largest asset manager with around $6 trillion in AUM.

Around 90% of the inflows in 2017 went to Vanguard’s index-tracking funds.

Vanguard made a significant foray into fixed income markets in September, launching its first actively-managed commercial bond fund.

Competing directly with other low cost providers, the Vanguard Global Credit Bond fund is priced at 0.35% for retail and 0.3% for institutional clients.

The firm has also begun a new era in 2018 with former chief investment officer Tim Buckley taking over as chief executive of the business.

Buckley has been with the asset manager his entire career, joining in 1986. He replaces Bill McNabb, who announced in July last year he was stepping down from his role after leading the passive giant for nine years.

Buckley is only the fourth Vanguard chief executive since the firm was established in 1975 and is also its president and director.

Buckley told the FT one of the priorities in his new role is to invest more in Vanguard’s online wealth management service, Vanguard Personal Advisor Services, the largest global provider of robo advice with $100 billion AUM.

The digital service, which also provides human advice, is aimed at clients with around $50,000 in investable assets.

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