Salim Ramji: Vanguard Group Appoints BlackRock Executive as Next CEO
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| Vanguard Group appoints BlackRock veteran Salim Ramji as CEO, marking the first time an outsider will lead the renowned investment firm. |
Vanguard Group Inc. has appointed Salim Ramji, a veteran of BlackRock Inc., as its new chief executive officer, succeeding Tim Buckley. Ramji will be the first external leader of the firm, which is renowned for its pioneering index funds.
Ramji, who managed exchange-traded funds (ETFs) and index investing at BlackRock, will join Vanguard in July. Vanguard, founded by the late Jack Bogle nearly 50 years ago, had assets totaling about $9.3 trillion as of March.
"The evolving investor landscape presents new opportunities for Vanguard to further our mission of enhancing investment success for people," Ramji stated. "My goal is to lead Vanguard through these changes while staying committed to our core purpose of advocating for all investors."
In February, Vanguard announced Buckley's planned retirement by year-end and the initiation of a search for his successor. Buckley, a 30-year veteran of Vanguard, has served as CEO since 2018.
During his decade at BlackRock, the world's largest asset manager, Ramji was a key figure in the expansion of its ETF business, which now oversees about $3.7 trillion. He was once considered a potential successor to BlackRock CEO Larry Fink before leaving in January.
Ed Sweeney, a spokesperson for BlackRock, congratulated Ramji and acknowledged his significant contributions to BlackRock, noting the firm's history of alumni leading major financial institutions.
BlackRock, with $10.5 trillion in assets, is Vanguard's main competitor in the ETF market, where they rank first and second in U.S. funds, respectively. Alongside State Street Global Advisors, they form the "Big Three" of index investing, holding substantial stakes in nearly all S&P 500 companies, which has drawn regulatory and political scrutiny due to their market influence.
Jack Bogle, Vanguard's founder, served as CEO from its inception in 1975 until 1995. He championed the idea that index funds, which track the broad stock market, could be both successful and affordable. This innovation led to significant fee reductions across the industry, reshaping modern investing. Bogle passed away in 2019 at the age of 89.
Vanguard, based outside Philadelphia, has transformed investing by keeping fees low. Unlike other firms, Vanguard is owned by its member funds, which are owned by fund shareholders, ensuring no outside investors profit.
In recent years, Vanguard has expanded beyond its index fund roots, delving into financial advisory services to attract new clients. The firm also offers some actively managed funds and has cautiously entered the private assets market, including private equity.
Globally, Vanguard has sought to extend its low-cost investing approach to new regions, promoting index funds and ETFs. However, it has pulled back in certain areas, notably its business in China.