Vanguard has finalized its previously announced split into two separate advisory divisions.
"Vanguard has completed a multiyear effort to establish two wholly owned U.S. investment advisors, Vanguard Capital Management and Vanguard Portfolio Management," the giant asset manager announced Monday. "Each consists of distinct investment management teams and independent investment stewardship teams made up of our deeply experienced leaders and crew."
Funds will benefit from streamlined operations as Vanguard portfolio managers continue to manage them, with no effect on expense ratios or investment performance expected, the firm said. The two "stewardship" teams' distinct focus will provide "another step in our long-standing work to further diversify perspectives in the proxy voting ecosystem over time," Vanguard said.
If the Vanguard executes well, investors shouldn't notice any difference, Jeff DeMaso, who edits The Independent Vanguard Adviser newsletter, wrote Monday, noting that the funds themselves won't change.
"But the task is not trivial: Vanguard now has to run two elite indexing operations while preserving its defining advantage — rock-bottom costs," he said.
Rodney Comegys is chief investment officer and global equity head at Vanguard Capital Management, while Sara Devereux is chief investment officer and global fixed income head. John Ameriks is chief investment officer and quantitative and strategic equity leader at Vanguard Portfolio Management.
Vanguard also announced Monday that Managing Director Joanna Rotenberg, who heads the company's Advice & Wealth Management division, will expand her leadership responsibilities across the U.S. direct-to-investor businesses as Personal Investor division chief.
These businesses serve first-time investors and savers and those with more complex financial needs, including estate or tax planning, Vanguard said.
“Joanna’s extensive experience running large self-directed businesses and delivering exceptional client service positions her well to lead our Advice & Wealth Management and Personal Investor businesses,” Vanguard CEO Salim Ramji said. “Joanna’s client focus and mission-alignment along with her digital expertise will help us set a new standard for what individual investors can expect from the Vanguard experience.”
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