BOSTON (Reuters) - Vanguard Group Chief Executive William McNabb on Tuesday said the No. 1 U.S. mutual fund company had accumulated $40 billion in net assets during the first half of the year from the funds that switched away from benchmarks provided by MSCI Inc (MSCI.N).
“If you take those 22 funds, $40 billion has been accumulated during the first half of 2013,” McNabb told Reuters. “We think people are accepting the change. It hasn’t been the drag that a lot of people predicted it would be.”
He also said the net new assets from the funds that made the benchmark switch accounted for a slightly higher percentage of cash flows from the year-ago period.
Vanguard announced the benchmark switch last October as other managers of index funds, such as BlackRock Inc (BLK.N), moved to cut costs. News that one of its biggest index licensing customers had defected caused shares of MSCI to plunge.
Reporting by Tim McLaughlin, editing by G Crosse