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Vanguard Founder John C. Bogle’s Legacy is the Topic of the New Book, The Man in the Arena

Tuesday, December 24, 2013 8:08 am EST
"The principal role of the mutual fund is to serve its shareholders."

Wiley is pleased to announce the publication of THE MAN IN THE ARENA (Wiley; December 2013; Hardcover & e-book; ISBN: 978-1-118-65076-9; $39.95) a new book featuring the writings of John C. (Jack) Bogle, founder of Vanguard, and the voices of many whose lives he has touched with his words and deeds – from Vanguard shareholders and crewmember to the nation’s most highly respected leaders in finance and public service. Knut A. Rostad is the editor.

THE MAN IN THE ARENA includes some of Bogle's classic writings on Vanguard, indexing, the mutual fund industry, corporate governance, and the fiduciary ideal. These ideas have been central to his long career in the mutual fund industry, now spanning more than six decades. The voices of observers from all walks of life who have witnessed his journey add insight and context, creating a unique snapshot of Bogle's lifelong battle to serve investors first.

In 1975, Bogle founded the world's first index mutual fund. Its concept—that passively investing in the entire market over the long term at lower costs will earn higher returns than will active managers (as a group) who pick individual stocks and charge far higher fees—was immediately ridiculed. Some even called it "un-American." Investors begged to differ. By 2013, 27% of equity mutual fund assets were invested in index funds, and Vanguard had become the world's largest mutual fund manager with client assets of $2.2 trillion.

Vanguard's mutual fund structure and indexing—disruptive innovations to their core—have proven to be both business successes and investment successes. By creating a gateway for small investors to enter the capital markets at the lowest possible cost and greatest possible diversification, Bogle helped democratize investing. At Vanguard, he established his management creed based on thrift, simplicity, and integrity, and advocated for corporate governance reforms and a stringent federal standard of fiduciary duty.

After leading Vanguard for more than 22 years, Bogle constructed a bully pulpit from which he continues to speak about the financial markets on behalf of investors. Ten books and hundreds of lectures to his credit, Bogle's prescriptions are straightforward, constant, and valuable, enriching ordinary investors at the expense of the personal wealth of fund managers (his own included).

This book is a first take at putting Bogle's life work into a broader context. It includes some of Bogle's most classic essays, letters from Vanguard shareholders and crewmembers, and many respected leaders in finance, law, academia and public life. The power and intensity of their commentary – lead with words from President Bill Clinton, Warren Buffett and Paul Volcker -- reveal a relationship between a man and his country few will ever know, and hint at his place in history. Bogle has realized the vision he first articulated in his 1951 Princeton senior thesis: "The principal role of the mutual fund is to serve its shareholders." He has changed the rules of investing and THE MAN IN THE ARENA tells this story.

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