Podcast 020: Nick Blake – Vanguard Runs Its Business At Cost And Passes ‘Profits’ To Its Investors

Welcome, to episode 20 of the Adviser Hangout podcast! I’m simply thrilled to introduce our guest today, Nick Blake is the head of retail at Vanguard UK.

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In this interview, Vanguard UK Head of Retail Nick Blake speaks to Abraham Okusanya about how Vanguard’s business structure is designed in a way that completely aligns the  interest of its ‘shareholders’ and its clients. Vanguard deliberately runs its business at cost, and passes any ‘profits’ to its investors by lowering fund costs. Nick noted that while the UK funds aren’t owned by clients, the same principle of mutuality runs throughout the businesses globally.

Asset managers have been under intense pressure lately, particularly about fund fees and the general misalignment between interests of fund managers and those of the investors. Perhaps the asset management industry could take a leaf (or ten!) out of Vanguard’s books. Vanguard is unique in the sense that the company is owned by its US fund investors.

Nick also talked about some exciting developments at Vanguard UK – how it’s gradually building its ETF range in the UK and some work Vanguard has been doing to put a number of the value that advisers add to clients.

Listen and enjoy!

Abraham Okusanya
Director
Abraham is the founder of FinalytiQ, a research consultancy for platforms, asset managers, and advisory firms. Recognised as one of the country’s leading experts in retirement income, platforms and investment propositions, Abraham has authored several papers on these subjects and delivered talks to the Personal Finance Society, The FCA and several conferences across the country.

He holds a Master’s degree from Coventry University and an alphabet soup of qualifications, including the Investment Management Certificate, Chartered Financial Planner, CFP and Chartered Wealth Manager designations. He was one of 5 finalists for the Professional Advisers Personality of Year Award 2015 but the award went to a more deserving winner, obviously!

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