New Delhi: Vanguard Group Inc has announced the appointment of Salim Ramji, a seasoned executive from BlackRock Inc, as its new Chief Executive Officer, effective July 8, 2024. Ramji will also join the board of directors.
This strategic move marks a significant transition for Vanguard, as Salim Ramji will be the first outsider to lead the firm since its founding nearly five decades ago by the late Jack Bogle. He succeeds Tim Buckley, who announced his retirement earlier this year after a transformative tenure that saw Vanguard’s assets under management grow by 80% to $9 trillion. Salim Ramji’s appointment comes at a pivotal time for Vanguard, positioned as the world’s second-largest asset manager with approximately $9.3 trillion in assets as of March 2024. His leadership is expected to steer Vanguard through an evolving investor landscape, capitalizing on opportunities to further the firm’s mission of offering the best investment success chances.
“The current investor landscape is changing, and that presents opportunities for Vanguard to further its mission of giving people the best chance for investment success, which is more relevant today than at any time in the firm’s five-decade history,” Ramji said. He emphasized his commitment to maintaining Vanguard’s core purpose as a trusted firm that stands for all investors.
Salim Ramji’s career in the financial services industry spans over 25 years, with significant contributions at BlackRock, where he was responsible for a substantial portion of the firm’s assets and growth, particularly in iShares and Index Investments. His role at BlackRock included membership on the Global Executive Committee and serving as the global head of iShares and Index Investments, overseeing about two-thirds of the firm’s assets. Under his leadership, BlackRock’s ETF business saw a massive expansion, now managing approximately $3.7 trillion. Ramji’s deep expertise in exchange-traded funds and index investing is expected to align well with Vanguard’s historical emphasis on low-cost index fund investing.
Before his decade at BlackRock, Ramji was a Senior Partner at McKinsey & Company, where he led the Asset & Wealth Management Practice, enhancing his profile as a leader skilled in corporate strategy and financial advisory. His extensive background and strategic insight into wealth management are poised to invigorate Vanguard’s efforts to navigate the complexities of global markets and regulatory environments. Ramji’s leadership is anticipated to continue Vanguard’s legacy of innovation in low-cost investing while also exploring new growth avenues, including the expansion into financial advisory services. His vision for Vanguard involves not only upholding the traditions set by its founder Jack Bogle but also adapting to the dynamic needs of modern investors, ensuring Vanguard remains at the forefront of the investment management industry.
Vanguard’s board, represented by Lead Independent Director Mark Loughridge, expressed their enthusiasm about Ramji’s leadership capabilities, highlighting their confidence in his ability to drive the firm forward. “We look forward to collaborating closely with him as we fortify and expand our mission and purpose, which has helped millions of our investor-owners plan for their future and families,” said Loughridge.
As Salim Ramji steps into his new role at Vanguard, the investment world watches keenly to see how his innovative strategies and extensive experience will shape the future of one of the largest asset managers globally. (With inputs from agencies)