Plus, changes at the top at TIAA-CREF, manager rotations, and more.
Vanguard announced plans to launch its furthest-reaching index fund yet. It has filed with the SEC to offer an index fund (and corresponding exchange-traded fund) that tracks the stocks of the FTSE All-World Index.
This index consists of about 2,800 mid- and large-cap companies in nearly 50 countries. About 55% of the index is constituted by non-U.S.-based corporations. Beyond diversification, this fund will bring other benefits to investors, such as low expenses. The ETF share class will charge 0.25%--nearly 1 full percentage point less than the typical no-load fund in the world-stock category. The traditional retail share class will charge 0.45%. Investors who buy the open-end retail shares, however, also will have to pay a one-time 0.15% purchase fee and a 2% redemption fee on shares sold within two months of purchase.
At first glance, this could be an easy choice for one-stop domestic and international equity exposure.
TIAA-CREF Gets New Chairman
TIAA-CREF announced Thursday that it has a new CEO and a new chairman. The firm named Roger Ferguson Jr. as president and chief executive officer, succeeding Herb Allison Jr. TIAA-CREF has been planning the transition for many months. Ferguson's career includes stints as the vice chairman Federal Reserve Board of Governors and most recently as the head of financial services at Swiss Re. There, he oversaw the management of about $200 billion in assets. (TIAA-CREF is responsible for about $435 billion).
Ronald Thompson is the firm's new chairman. He has served as a board member since 1995 and currently serves as its presiding trustee. He was chairman and chief executive officer of Midwest Stamping and Manufacturing Company for 12 years.
Turner Reopens Small-Cap Fund
Turner Small Cap Equity
Vanguard Also Shuffles Its Muni Managers
Vanguard bond manager Marlin G. Brown has taken over for John Carbone at Vanguard Pennsylvania Long-Term Tax-Exempt
These changes shouldn't alarm investors. Vanguard's muni group is an experienced bunch that occasionally reassigns managers to broaden each member's exposure to the market and allow them new opportunities.
RiverSource Rebrands Four International Funds
The funds formerly known as RiverSource Emerging Markets