Vanguard’s New CEO Plans Expansion of Fixed Income Offerings, Reports Reuters

By Davide Barbuscia

NEW YORK (Reuters) – Vanguard’s new chief executive, Salim Ramji, announced on Wednesday his plans to enhance the firm’s fixed income offerings, tapping into the vast market potential and opportunities available.

Ramji emphasized that Vanguard could apply its successful equity market approach to the fixed income sector. "Our clients can benefit from that type of mindset. … They can get better and better quality fixed income exposure," he mentioned at the Financial Times’ Future of Asset Management North America conference in New York. He reiterated the firm’s mission to reduce costs while providing clients with high-quality investment options.

Vanguard, boasting around $9 trillion in assets under management, stands as the world’s second-largest asset manager, trailing only BlackRock.

Since taking the helm in July, Ramji has replaced Tim Buckley. He previously held a significant role at BlackRock, managing a substantial portion of the firm’s assets and growth strategies.

Both Vanguard and BlackRock are leading providers of exchange-traded funds (ETFs), which are low-cost investment products frequently utilized by retail investors seeking exposure to major markets.

Recent years have seen considerable volatility in fixed income markets, driven by a rapid series of interest rate hikes across developed markets that adversely affected bond prices while boosting yields. This environment, however, has simultaneously attracted significant inflows into fixed income assets.

"When you look at the macro environment for fixed income today compared to a decade ago, it has a really important place," Ramji stated, noting its growing significance in light of long-term rate outlooks.

In addition to fixed income, Ramji expressed interest in exploring opportunities within private markets, which encompass debt and equity not publicly traded. "In privates, we’re open to exploring partnerships," he added.