[ad_1]
Tim Buckley, CEO of Vanguard Group. vanguard group
Investment giant Vanguard Group has announced that CEO Tim Buckley will retire by the end of the year after more than 30 years with the company.
The Valley Forge, Pennsylvania, company’s board of directors has begun the search process for its next chief executive officer and will consider both internal and external candidates, according to a statement. Vanguard announced that Greg Davis, Chief Investment Officer, has been appointed President, serving in this role in addition to his current responsibilities.
“Thirty-three years ago, I joined a company that believes in giving investors a fair shot at saving for their retirement, their child’s college education, or their dream home,” Buckley said in a statement. I was lucky that it happened.” “In my seventh year as CEO, we have expanded our mission to more than 50 million investors, but our team is just getting started.”
Mr. Buckley has held the CEO role since 2018, and Vanguard managed $8.7 trillion through the end of January.
Eric Balciunas, an analyst at Bloomberg Intelligence, said in an interview that the outgoing CEO’s biggest legacies include a push into advisory roles and the growth of ETFs. The analyst said Buckley grew the company by $4 trillion, thanks in part to the momentum built by the late Vanguard founder Jack Bogle.
Mr. Balciunas described Mr. Bogle’s legacy as “he was certainly a good steward,” and predicted the company would likely hire from within. “They want someone with Bogle blood.”
The company said it is considering candidates both within and outside of Vanguard.
“Evaluating internal and external candidates for such important roles reflects good governance, especially for a company of Vanguard’s size and complexity,” a Vanguard spokesperson said in a statement. The board will consider both in the current process.”
index boom
Vanguard has benefited from a decade-long boom in index investing, especially in the U.S., as clients migrate to cheaper passive funds like the ones it promotes. The shift away from active funds, where portfolio managers pick stocks and bonds, is accelerating, especially for ETFs. Vanguard has expanded to become the second-largest ETF issuer in the U.S. after BlackRock.
Mr. Buckley is the fourth CEO of the company founded by Mr. Bogle, who saw the concept that funds indexed into broad stock markets could be successful and sold to the masses at low prices. Mr. Bogle, who died in 2019, was the company’s CEO from 1975 to 1995, when index funds took hold, ultimately leading to higher fees for many asset managers.
Vanguard has been trying to expand into financial advisory business in recent years to reach new customers. The company continues to offer some actively managed funds and has limited access to the fast-growing personal wealth market. Vanguard announced this month that its private equity program with HarbourVest has attracted more than $1.8 billion in cumulative customer commitments since its inception in 2020.
On the international front, the company offers index funds and ETFs and has aimed to fulfill its low-cost mission of investing in new countries. It has withdrawn from some areas, particularly its China business.
[ad_2]
Source link
