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Vanguard Group, the largest U.S. mutual-fund company by assets, said about 2 million clients will pay lower fees after it reduced minimum account balances required to invest in its least-expensive funds.
The changes will cut fees on $90 billion of assets by about $100 million, said Rebecca Katz, a Vanguard spokeswoman. Customers get the lowest fee rates when investing more than $10,000 in any index fund, compared with the previous minimum of $100,000.
Vanguard manages $764 billion, or about 58 percent of its assets, in index funds, said Katz. Its funds pulled in an estimated $48.8 billion in net deposits this year through August, according to Morningstar Inc. That compared with net withdrawals at Capital Group Cos., manager of the American Funds, and Fidelity Investments of Boston.
Bloomberg News