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Vanguard Posts Record Cash Inflow of $130B

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This is an abbreviated version of a longer story that ran on AdvisorOne’s sister site,

Vanguard had a banner year in 2012, attracting $130.4 billion in net cash inflow through November 2012, including $46.4 billion in ETFs. This surpasses Vanguard’s previous record of $104 billion in net cash inflow in 2007.

This also exceeds the previous industry record of $129.6 billion set in 2008 by JPMorgan, according to Strategic Insight data. Vanguard had $72.3 billion in equity funds, $6.3 billion in balanced funds, $54.4 billion in bond funds and outflows of just over $2.5 billion in money market funds in 2012.

Since December of last year, Vanguard has lowered expense ratios on 40 of its exchange-traded funds.

Vanguard also developed a basic financial education program for K-12 students and many teachers across the country have incorporated it into their 2012-13 curriculum.  It is free and experiential and provides the tools students need to practice financial skills. Program guides and student materials can be downloaded at

The company also announced the retirement of Gus Sauter, managing director and chief investment officer of Vanguard, at the end of the year. Tim Buckley, managing director, will assume the role of chief investment officer. Long-term Vanguard fund manager Edward Owens, who managed the Vanguard Health Care Fund, also plans to retire Dec. 31. Jean Hynes, a long-time associate portfolio manager, will assume managerial responsibility beginning in January.

Vanguard continues its pursuit of enhanced mobile solutions for clients, although it has found that increased mobile usage doesn’t mean more frequent trades. Desktop visits are about two times more likely to involve a trade than mobile visits.

Mobile visits by individual investors and plan participants have more than doubled in the past year. In addition, nearly a quarter of all interactions with financial advisors are coming from mobile devices. In 2012, Vanguard updated its mobile apps more than 30 times.

The company announced in May of this year that it was launching five low-cost ETFs available for trading on the London Stock Exchange. Vanguard Canada also expanded its fund lineup in November with the launch of five additional ETFs to Canada’s low-cost, disciplined and long-term oriented ETFs.

Vanguard, headquartered in Valley Forge, Pa., is one of the world’s largest investment management companies and a leading provider of company-sponsored retirement plan services.


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