Vanguard’s Former OCIO Clients Must Stand Their Ground

To understand the ascendancy of Vanguard, I must first note these characteristics: An upstart who developed a superior, heterodox business model. That business model’s ability to successfully challenge well-entrenched and formidable incumbents. The steady accumulation of customers, all while the incumbent remains seemingly paralyzed and unable to r

The incumbent’s failure to respond, more often than not, results from thoughtful calculation. They observe the upstart’s new model, and ask, “Am I better off staying the course, or adopting the new model?” Counter-Positioning applies to the subset of cases in which the expected damage to the existing business elicits a “no” answer from the incumben

continue to gauge whether their portfolio represents the kind of intentional work that your brand needs.

“We don’t try to match the market. We focus on asset preservation.” Did you catch that? What they mean is: “Our investment returns will be below what you could get from a cheap Vanguard fund.”