Vanguard global chief executive Bill McNabb will step down at the end of the year to be succeeded by chief investment officer Tim Buckley.
McNabb, who will stay on as chair, served as chief executive since 2008. He joined Vanguard 31 years ago, led a number of client-facing divisions and was appointed the head of institutional investor group in 1995.
McNabb said it is the right time to step down and for a new leader to enter as the firm continues to grow, evolve and expand globally, adding the board is unanimous in its belief that Buckley is the ideal next chief executive for Vanguard.
Buckley will become the Pennsylvania-based firm's fourth chief executive as of 1 January 2018.
Buckley joined Vanguard in 1991 as an assistant to then chair John C. Bogle and held senior leadership roles including chief information officer and head of the information technology division from 2001 to 2006.
For the next six years, he was the head of the retail investor group and was appointed chief investment officer in 2013.
Buckley said he is honoured to lead Vanguard into its next chapter and looks forward to continuing to work closely with McNabb over the next six months to transition to his new role.
Global head of fixed income Greg Davis has been promoted to chief investment officer and responsible for $3.8 trillion in assets managed by the fixed income, equity index, and quantitative equity groups across more than 300 mutual funds and ETFs.
Davis led the fixed income group since 2014 and prior to that served as chief investment officer for Asia Pacific and was a director of Vanguard Investments Australia. He joined the firm in 1999 in portfolio management and trading.
Davis' experience as a portfolio manager and leader of investment management teams makes him an excellent steward of clients' assets, McNabb commented on the appointment.
Vanguard has about $5.5 trillion in assets under management, including more than $940 billion in ETFs.