The Long View Salim Ramji: The Industry Uses Complexity As a Mask to Charge More
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Jul 8, 2025 
In this engaging discussion, Salim Ramji, CEO of Vanguard, shares insights from his extensive background at BlackRock and McKinsey. He talks about Vanguard's mission to simplify investments amid rising portfolio complexity. Ramji emphasizes the importance of fee reductions for better investor outcomes and introduces innovative AI-driven tools enhancing client service. He also touches on the challenges of transitioning from wealth accumulation to retirement steadying, advocating for a balanced approach between active and passive investment strategies.
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Vanguard's Culture Shock
- Salim Ramji experienced a deep appreciation for Vanguard's mission and culture after joining as an outsider.
- He described cutting fees as a joyous occasion reflecting Vanguard's client-owned model.
Vanguard’s Secret Sauce Is Client Ownership and Cutting Fees with Joy
Vanguard’s client-owned structure creates a unique culture where fee cuts are celebrated, not lamented. CEO Salim Ramji highlights that this ownership model aligns client and shareholder interests, fostering a mission-driven environment focused on delivering investment success rather than following industry trends.
Ramji was struck by the genuine excitement among Vanguard's crew and board when announcing the largest fee cuts in its history, emphasizing how this rare corporate ethos drives continuous client benefits.
This client-first philosophy underpins Vanguard's approach to simplicity, innovation, and evolving services like accessible advice and active fixed income management, all while staying true to their mission.
Client Ownership Shapes Culture
- Vanguard's client-owned structure creates a culture focused solely on client benefit.
- This unique ownership drives fee cuts and rejects market trends not aligned with client success.