Vanguard says Chief Investment Officer Gus Sauter will retire on Dec. 31, when he will be replaced by Tim Buckley. Sauter, 57, joined Vanguard in 1987 and is head of the firm’s global investment management groups, which oversee about $1.6 trillion of Vanguard’s $2.1 trillion in global assets.
“Under his leadership, Vanguard has emerged as a world-class investment management firm with an unparalleled record of accomplishment,” said Vanguard CEO Bill McNabb, in a press release. “And it is equally important to acknowledge Gus for his contributions as a member of Vanguard’s senior staff; the entire enterprise has greatly benefited from his values, judgment, investment acumen, and ability to identify and develop the best investment talent in the industry.”
Buckley, 43, is currently a managing director. He has been a member of Vanguard’s senior staff since 2001 and has directed Vanguard’s Retail Investor Group, which has about 5 million investor clients, since 2006.
The future CIO joined Vanguard in 1991 as assistant to then-Chairman John C. Bogle. He is also a long-tenured member of Vanguard’s Portfolio Review Group, which includes nine executives.
“Tim Buckley has a strong commitment to the Vanguard way of investing, a keen intellect, and a passion for serving Vanguard clients,” said McNabb. “He will inherit a deep, talented group of more than 300 highly experienced equity, fixed income, risk management, and investment strategy professionals who oversee Vanguard portfolios on behalf of clients around the globe.”
Sauter joined Vanguard as head of the firm’s internal equity management group on October 5, 1987, two weeks before that year’s market crash, in which stocks declined more than 22% in a single day. At that time, Vanguard says, it offered just two index funds—Vanguard 500 Index Fund and Vanguard Total Bond Market Index Fund, with aggregate assets of $1.2 billion.