"Across the globe we’ve got a range of actively managed funds, it’s just that we’re known in the UK for trackers. What we support is good products at a low cost. We are focused on getting returns without worrying about the wider noise. We think trackers should be a core component of portfolios," he explained.
Molitor believes passive funds and packaged solutions – which are ready-built portfolios – will become more important in the near future, and says Vanguard is looking to expand its range.
"They’re reasonable and sensible. The challenge for investors is getting a perspective and looking beyond the noise. There’s so much noise about the technical details of investing and the technical details of the macro environment, and investors forget what they’re trying to do and how they're trying to get there," he said.
"In reality, taking action can often hurt the endurance of a portfolio. It can be that the best action to take is not to take any action."
Molitor thinks investors are best served by defining the issues that suit them, then looking at the asset classes that will fulfil those needs.
"Too many people are wrapped up in trying to forecast and too wrapped up in the short-term," he warned.
"We want to help portfolios meet enduring needs. We’re looking to expand both our equity and fixed income vehicles on the passive side, as well as other packaged solutions," he continued.
Molitor is fully behind RDR, and, in spite of comments from the wider industry to the contrary, says it will help the investment world in the long-run.
"RDR is about increasing transparency and aligning investors’ interests with those of their fund managers. It gives IFAs the independence to make the right decision at the right cost. We’re very pleased about RDR because any discussion on regulation that reveals costs tends to work better for investors," he finished.