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Why Vanguard, champion of low-fee investing, joined the ‘private markets’ craze

After years of driving down fees, retail fund managers are nearing a wall as what they charge approaches zero. The chance to sell more funds that can charge higher fees would boost revenues for the likes of Vanguard and State Street, which pioneered exchange-traded funds.


 

“They have been preaching low fees and competition, and now they’ve come around to the value of alternative investments in client portfolios,” said Morgan Stanley analyst Michael Cyprys.