Q. What about China?
A. China is a long play. Potentially there is incredible value for clients in China if you could bring a disciplined approach to investing there, one with an eye to low turnover, toward not chasing returns and keeping expenses low. The Chinese investor could benefit. It is not something that will happen overnight.
For more about the future of investing in Asia, see here
Q. What message are you trying to convey to investors these days?
A. We have had a nice long bull market. There is more risk in portfolios than there was in the past. Allocations to equity are higher and values are somewhat stretched. We want to be sure investors stick with their plan and stick with their bonds, which can help in tough times.
Q. Some of Vanguard’s competitors specifically target millennial investors? How do you fare with that audience?
A. We do well with millennials. We are a virtual firm. We invest heavily in technology, which is something millennials flock to. They are demanding clients so we have to keep improving for them. We can’t take their needs for granted.
This article was provided by Bloomberg News.