PIMCO – Expect choppy waters in the near-term as investors shift to other bond funds in the wake of the departure of PIMCO co-founder Bill Gross. If you don’t want to stick with PIMCO during this turbulence, contact me quickly so that I can recommend appropriate changes to your portfolio.
Vanguard – Great news on the Vanguard front: Their brokerage accounts can now hold Vanguard mutual funds. Before this change, Vanguard clients who owned Vanguard mutual funds and non-Vanguard mutual funds (or stocks, ETFs, etc) would have had a mutual fund account for Vanguard funds and a brokerage account for other fund families, stocks, ETFs, etc. Now (finally!), Vanguard clients can consolidate both accounts to their brokerage account. Three cheers for an improvement that will simplify life for many.
Vanguard Personal Advisory Services – For those clients who use Vanguard for investment management: Your management fee is dropping from 0.7% to 0.3%. How exciting is that? Well, on a $1 million dollar portfolio, the annual fee just dropped from $7,000 to $3,000. And when you compare their low fees to the brokerage industry, where management fees can exceed 2% (or $20,000/year per $1million invested), it really should make us smile.