Bogle on Taking Ownership

I wish there were more than one Jack Bogle; the founder of the Vanguard funds seems to stand alone all too often. Kimberly Gladman, of The Corporate Library, blogged on his talk at the CFA Institute conference in Boston this morning. He noted that no mutual fund company has ever filed a shareholder proposal opposed by management. “Never,” he stressed. “That’s not very often.” He also said mutual funds have moved from the “own-a-stock” mentality of his youth (typical fund turnover was about 20 percent in 1950) to a “rent-a-stock” model (average turnover today is 100 percent). He favors the return of Glass-Stegall and taking governance into account in security analysis. (Jack Bogle on “The Silence of the Funds“)

One minor correction, Bogle only seems to be thinking of mainstream funds. Maybe he ought to join the Social Investment Forum. Hundreds of resolutions have been filed by their member funds.

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