Next Vanguard CEO Sees Millions of Potential New Clients in U.S.

News May 16, 2024 at 02:43 PM

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Salim Ramji, Vanguard's incoming CEO, aims to add millions more customers to the investment firm's more than 50 million global client base in the coming years, the former BlackRock veteran told the Financial Times.

Ramji, who will succeed Tim Buckley on July 8, sees big opportunities to scale, with "millions and millions more" potential clients even in the U.S., according to an article the FT posted Thursday.

Ramji also indicated he won't veer from Vanguard's longstanding principles.

Market players and analysts are asking how Ramji, appointed Tuesday as the first outsider named to lead Vanguard, might change an iconic investment firm that remains closely identified with its revered late founder, John C. Bogle.

Bogle and Vanguard are considered industry trailblazers who changed the landscape by bringing low-cost index funds to investors. The FT noted that Vanguard is relatively unique in operating under a mutual structure — its funds and by extension its shareholders own the company — that helps it lower investor costs.

Ramji, who led BlackRock's iShares ETF and index investing business, told the FT that Bogle's mission and purpose will endure under his leadership, and that he plans to pursue them "with the zeal of a convert."

Ramji told the publication that while he was being recruited, Vanguard's board showed interest in his ability to use technology to scale BlackRock businesses, and noted that he has made technology a high priority in all his previous posts.

Pictured: Salim Ramji

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