Leaders in Funds Management – Jeremy Duffield
Overview of your career to date.
I left Australia for the US at 20 in 1974, three days after marrying my American-born wife, and with the intention to continue my studies there. Joined Vanguard outside Philadelphia by accident in the fledgling days of the company (1980) and was lucky enough to work for industry great, Jack Bogle, Vanguard’s founder. Headed Planning and Development (which included a couple of investment functions (including indexing)) throughout most of the 1980s and first half of the 1990s.
Returned home to Australia in 1996 to start Vanguard Australia, the first international office. Retired as Chairman at end of 2010. Took on Board responsibilities at MLC and Australian Centre for Financial Studies and co-founded digital advice company SuperEd in 2012.
How did you get your first position in the industry in the U.S?
Strange things happen. I was working at the Federal Reserve in research prior to a planned PhD in economics. We wrote papers on Money Market Funds (CMTs) when they were new and hot in the days of interest rates in the teens. I was asked to give a speech on them at a mutual fund conference in New York in 1979, I met Jack Bogle and he invited me to visit Vanguard. Six months later I was working as Jack’s assistant and attending the “Bogle School of Business.”
You spent a number of years with Vanguard in the U.S before arriving back to Melbourne in 1995 to launch Vanguard’s business in Australia.
Yes, I ran Planning and Development in the US in the high growth years from 1982-1995.
I became passionate about Vanguard going international when Vanguard sent me to Harvard Business School for a 3-month management program in 1988. Surrounded by a bunch of international students from multinationals, I was convinced finance would go global and that Vanguard had something very special to offer.
Our subsequent business plans for entering foreign markets were all rejected on the basis of “we’re growing so fast” and “who would we send?” until 1995 when I came back from a holiday in Australia with excitement about compulsory superannuation. Finally, I could recommend Australia and I saw a “twofer” opportunity to bring my family home to Australia and achieve my business dream. “Who are we going to send?” “ Send me.” And to my pleasant surprise, the CEO and Chair said “yes.”
You had a suitcase and a mobile phone, what was your strategic plan to grow the business?
It was really very simple. The market was destined to grow with super contributions. Indexing was hardly heard of but, in my opinion, destined to grow and become mainstream. Vanguard Investments Australia (VIA) would catch the super wave and build a leading brand in a growing segment of a growing market. Start with institutional and build out into retail…and later into Asia. And that’s what we did.
The industry landscape was very different back then. Can you recall your first 12 months setting up the business?
Sure, it was a fun and challenging time, coming back to Australia after 21 years away. Leaving the comfort of Vanguard 4500 (staff) to be initially Vanguard Australia 1. And I had to go from being a largely “inside” guy to being a largely “outside” guy. But building a great team was the best thing I did to get VIA started well. That itself was a challenge as many people thought indexing would never amount to anything in Australia.
You have led and managed large teams at Vanguard. What was your approach to attracting, and developing talent?
I put a lot of stress on values, making sure individuals would understand Vanguard’s client-first approach and then focused on talent, energy and drive, looking at both the basic “clay” and then the experience that came with it. It was very important that people could be team players – because I wanted a high performing team.
What do you believe are the attributes that make a successful leader?
I think there are many ways to be a great leader. I most admire leaders who are passionate about a worthwhile mission and build teams to accomplish shared goals. Our second HR head, Wendy Hanrahan, described our employee value proposition in a way that really resonated with me: Believe, Belong, Build. We needed people, and leaders at all levels, who could make that proposition a reality.
Vanguard recently celebrated its 20th year in the Australian market and is now the largest Fund Manager in Melbourne. Looking back on this remarkable success story is there any particular event or milestone that you are most proud of?
The proudest moments are definitely people stories and client stories. I’m proudest of the enduring successful relationships we had with clients and with crewmembers who built great careers at Vanguard. I think Vanguard Australia has made a difference for investors in the marketplace, and I’m very proud of that.
You are the Co-Founder of SuperEd, a digital advice business. Can you tell me about this business and your plans for 2016?
Coming out of Vanguard and thinking about the future, I became fascinated with “better decision-making” as the next wave which could make a difference to consumers. I thought digital advice was the best way to enable that.
So, with a brilliant partner, in Hugh Morrow (our CEO), and a terrific team, we’re building SuperEd to be a leading provider of digital advice for superannuation members. Another fascinating challenge. Something I really believe in.
We’re focused on coaching and advising members through their journey to retirement adequacy and sustainability. This year, we’re rolling out our capabilities with seed clients. A very exciting time.
If you could give 1 piece of advice about developing a career within the Funds Management Industry what would it be?
Find a great mentor in a company you can believe in.
What are some of the main opportunities and challenges you see for the industry over the coming year?
There are always lots of both. Right now, I’m looking forward to the Federal budget to see what the pollies have in store for superannuation. Governments pulling the levers and changing operating conditions for the industry has been the one constant of the industry over the 20 years I’ve been back. Keeps it interesting but the cost is high and the uncertainty for members enormous.
Kaizen Recruitment specialises financial services recruitment across funds management, wealth management, superannuation, investment consulting and insurance. We are based in Melbourne and Sydney. For assistance or further information please telephone our office at +61 3 9095 7157 or submit an online form.
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