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Vanguard’s assets under management outside the United States have surpassed $1 trillion for the first time, marking a major milestone in the investment giant’s international growth.
Salim Ramji, chief executive of the world’s second-largest asset manager, said the firm sees “incredible opportunities” beyond the U.S., particularly in regions such as the U.K. and Europe, where savers still hold a large share of their wealth in cash rather than long-term investments. He noted that investing in these markets is often seen as “too costly, too complicated,” with multiple barriers discouraging participation.
Vanguard, which oversees more than $12 trillion globally, specializes in low-cost funds and simple investment products aimed at individual investors. The company now plans to more than double its international customer base from 17 million to nearly 40 million within five years.
The expansion comes as governments, including the U.K.’s, seek to encourage households to invest more in order to improve retirement outcomes and channel savings into domestic economies. Vanguard is among 19 firms backing a U.K. initiative designed to shift savers away from idle cash.
Recently, the firm cut fees on its popular LifeStrategy fund range and reduced exposure to U.K. assets in favor of greater global diversification, citing client demand.
Chris McIsaac, head of Vanguard’s international business, said overseas assets have doubled in the past three years. “At this pace, it will take us another five to attract the next $1 trillion,” he said, adding that index funds and ETFs remain under-represented in many international portfolios.
Vanguard’s model—owned by its fund investors rather than external shareholders—allows profits to be returned through lower fees. In Europe, its average fee stands at just 14 basis points, compared with an industry average of 65, reinforcing its strategy of winning market share through cost leadership.
