YouSaid · the spoken record

William McNabb

lines on the record: 112
first: 2016-10-21
most recent: 2016-10-21
sittings or episodes: 1
sources: podcast

Every line below is reproduced as it was said and linked to the record it came from. Nothing here is summarised or generated. Directory · Search · Corrections

“Totally, and real independence, and we want there to be linkages between executive pay and long-term value creation, not short-term.”
2016-10-21 · Masters in Business · Interview With William McNabb: Masters in Business (Audio) · IDENTIFIED FROM THE TRANSCRIPT · source
“And that's a really good segue into what I think has been one of the really interesting evolutions in the last couple years. And it's been this whole concept of shareholder engagement. And one of the things we really did agitate for, and a couple of us gave talks on this maybe two, three years ago, and we've really seen a change in the way boards are working as a result. We said, you need to engage with your big owners, not just Vanguard, but anybody who owns a significant stake. And you need to be thinking about how you are creating long-term value, not short-term. No one's interested in the short term here. And so we have a set of principles that we ask people to follow in terms of governance. And that's the first sort of screen for us is.”
2016-10-21 · Masters in Business · Interview With William McNabb: Masters in Business (Audio) · IDENTIFIED FROM THE TRANSCRIPT · source
“About a third, yeah. It's a lot of money. But on the index side, we're a permanent holder of these companies. And so you have to, you can't sell the stock if you're not happy with the way the company's performing.”
2016-10-21 · Masters in Business · Interview With William McNabb: Masters in Business (Audio) · IDENTIFIED FROM THE TRANSCRIPT · source
“You know, I think for us, Barry, it really underscores the unbelievable responsibility we have. You know, we are here representing the hopes and dreams of millions of investors who entrusted their hard-earned assets into our funds. And so we've got to make sure that the port that constituent portfolio companies are being governed in a sense with long-term value creation for the end investor as a very big goal. And we've had to up our game. We've had to increase our staff who engage in this. And say a traditional active manager, and we do have, as you know, traditional active.”
2016-10-21 · Masters in Business · Interview With William McNabb: Masters in Business (Audio) · IDENTIFIED FROM THE TRANSCRIPT · source
“So, yeah, it was because it was viewed as almost communistic, people called it unAmerican. And for Jacko was always a game of math, you know, at the end of the day, investing was going to become a zero-sum game. And eventually when you looked at active versus index, On average, the index guys were going to win just because both were going to add up to the market. One had a much higher cost structure than the other.”
2016-10-21 · Masters in Business · Interview With William McNabb: Masters in Business (Audio) · IDENTIFIED FROM THE TRANSCRIPT · source
“Know it's an amazing thing. So, and this is really the power of Jack Bogle's imagination, if you will, in 1976. So Jack had this concept that he had written about extensively that this idea of a broad market index might make sense. As you know from the history, Wells Fargo in particular, I think, did some work on the pension area and the first separate account. And what Jack did was he said, if it's good enough for a sophisticated institution, why not for everybody? And that was really the concept. And when it was first introduced in 76, people laughed at it. They said it's mediocrity. It's never going to work.”
2016-10-21 · Masters in Business · Interview With William McNabb: Masters in Business (Audio) · IDENTIFIED FROM THE TRANSCRIPT · source
“So I was until just a couple weeks ago, chairman of the investment company institute, which is the mutual fund trade association. And as such, I met with many of the leaders in our industry on a very regular basis. And I got a chance to talk about industry issues, talk about regulatory changes with them. I think Larry and I And so, yeah, you get a chance every now and then to compare notes.”
2016-10-21 · Masters in Business · Interview With William McNabb: Masters in Business (Audio) · IDENTIFIED FROM THE TRANSCRIPT · source
“I think that's right. But again, there still are economies of scale to be gained, Barry. I'm such a huge believer in the power of technology. And in a sense, I don't know what I don't know. And the more you see in the technology arena, you know, some of the new things that are emerging, the use of big data, the emergence of the cloud. I'm not sure we even know what we can do going forward. And we're spending a lot of time and effort in that arena as well.”
2016-10-21 · Masters in Business · Interview With William McNabb: Masters in Business (Audio) · IDENTIFIED FROM THE TRANSCRIPT · source
“We're getting down to, you know, it's an asymptotic kind of relationship at this point. And there's room to go, but it's not going to be the kind of declines we've seen in the last decade.”
2016-10-21 · Masters in Business · Interview With William McNabb: Masters in Business (Audio) · IDENTIFIED FROM THE TRANSCRIPT · source
“You know, I think you could do it at lower levels than that, but certainly when you're at that kind of level, you're spreading your fixed costs across a very large asset base. And that helps. And I think Vanguard is like the purest form of transparency, if you will, into economies of scale. If you look at how our costs have come down over time, you can see the power of technology spreading fixed costs over a broader asset base and so forth.”
2016-10-21 · Masters in Business · Interview With William McNabb: Masters in Business (Audio) · IDENTIFIED FROM THE TRANSCRIPT · source
“Let's get more economies of scale kind of play. I think more of that may happen. I also think that you will see on the other side of it maybe some boutiques emerge who are more specialized. And so you may end up with a more barbelled industry where you got a lot of really nimble small players and some larger players who can really exploit economies of scale.”
2016-10-21 · Masters in Business · Interview With William McNabb: Masters in Business (Audio) · IDENTIFIED FROM THE TRANSCRIPT · source
“So I think what we're seeing right now is there's a secular change that's gone on and will continue to go on in terms of cost being a much more important component of investing. Obviously, that's played out most purely with indexing firms doing better. But I think it's going to lead to further consolidation in the industry. We saw a week ago Janice and Henderson. Big merger. Big merger. That was clearly a...”
2016-10-21 · Masters in Business · Interview With William McNabb: Masters in Business (Audio) · IDENTIFIED FROM THE TRANSCRIPT · source