Buffett’s Backing

“I suggest Vanguard’s,” he wrote. The results are likely to be “superior to those attained by most investors -- whether pension funds, institutions or individuals -- who employ high- fee managers.”

The firm’s Vanguard 500 Index Fund tracking the U.S. benchmark took in four times as much money this year from March through June as it did in the same period in 2013, a surge the company attributed to Buffett’s backing.

Vanguard, like other asset managers, has also attracted some of the cash that investors pulled from Pacific Investment Management Co. since the surprise resignation of co-founder Bill Gross on Sept. 26. Gross’s $170.9 billion Pimco Total Return Fund lost $51 billion to redemptions in the past two months.

The Vanguard Total Bond Market Index Fund and its ETF variation won more than $4.4 billion in combined subscriptions in September, according to Daniel Wiener, editor of the New York-based newsletter Independent Adviser for Vanguard Investors. That was more than three times the amount the funds got in September 2013.

With about $3 trillion in assets, Vanguard is the world’s second-largest money manager. BlackRock Inc. had $4.5 trillion as of Sept. 30.
 

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