Yahoo Finance Vanguard chief Bill McNabb to step down
The chief executive of Vanguard, Bill McNabb, said he will step down at the end of the year, adding now was "the right time for a new leader" as the American fund giant ramped up its global expansion.
In the past seven years, Vanguard's assets under management have risen from $1 trillion (£772bn) to more than $4.4 trillion (£3.4 trillion).
It is the world's largest mutual fund manager and last year took in more money globally than its nearest 10 competitors combined.
Mr McNabb, who is to remain chairman of the group, will be replaced by Vanguard chief investment officer Tim Buckley.
Mr Buckley has served on the fund's senior leadership team since 2001 and has held the position of chief investment officer since 2013.
Commenting on the appointment, Mr McNabb said: “As the firm continues to grow, evolve and expand globally, it is the right time for a new leader and the board is unanimous in its belief that Tim Buckley is the ideal next chief executive for Vanguard."
Mr Buckley will become the fourth CEO of Vanguard, which began operations in 1975. Greg Davis, currently head of fixed income, will take over as chief investment officer.
The announcement comes as Vanguard appears to be gaining ground in the European market, having previously struggled with its fragmented nature.
Earlier this month, Vanguard reported that post-tax profits in its European business rose 40pc in 2016, and revenue was up 34pc, after a year in which it increased its employee base in the continent by 32pc.
In May, Vanguard launched into the UK market, setting up a new, low-cost investment service where savers would be able to manage their Isa and other accounts directly, but at a much lower cost.
Its mutual status gives it even more power to reduce margins and keep fees low.
