The Vanguard Group is one of the largest asset managers in the U.S., with more than $ 1 trillion in assets, ninety percent of which are mutual fund assets and more than 12,000 employees at the end of 2006. Vanguard has a reputation as an Manager Reference for low-cost investment and high quality customer service that always does what he thinks is best built for its customers. Vanguard recently introduced a family of life-cycle funds called target Retirement Funds SICAV. Lifecycle funds, which hav … Read more »

The Vanguard Group is one of the largest asset managers in the U.S., with more than $ 1 trillion in assets, ninety percent of which are mutual fund assets and more than 12,000 employees at the end of 2006. Vanguard has a reputation as an Manager Reference for low-cost investment and high quality customer service that always does what he thinks is best built for its customers. Vanguard recently introduced a family of life-cycle funds called target Retirement Funds SICAV. Lifecycle funds that are popular are built on the idea of ​​”investing age appropriate” with both investors sponsored in company contribution pension plans and individual investors, or the idea that investors should be more of her long to assign long-term savings to stocks when they are young are retired and over longer horizons, and you reduce this assignment as they approach retirement. The management of Vanguard examines the central role of these funds can play in a number of initiatives aimed at growing Vanguard retail, contribution and customer service. The pending approval of the Pension Protection Act makes it possible for sponsors of defined contribution plans on a more active role in advising the participants of the plan and the assets in individual retirement accounts to take and defined contribution pension plans expect their rapid growth ahead continue. Vanguard should promote these funds as the next step in the quest to Vanguard, the investment as a simple, inexpensive and effective as it can be? At stake is the Vanguard brand and customer confidence and well-being of millions of Americans is now responsible for providing for their own retirement.
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Luis M. Viceira
Source: Harvard Business School
32 pages.
Publication Date: Jun 26, 2007. Prod #: 207129-PDF-ENG
Vanguard Group, Inc., in 2006 and Retirement Funds target HBR case solution