Salim Ramji, former global head of iShares and index investments at BlackRock, has been appointed as the new CEO and board of directors at Vanguard, starting July 8. Ramji will replace the current CEO Tim Buckley, who announced his retirement in February this year. Ramji had been with BlackRock for over a decade, managing a majority of the firm’s client assets and overseeing the iShares platform. Under his leadership, BlackRock launched the first spot Bitcoin exchange-traded fund for retail investors. Vanguard is the second largest asset management firm after BlackRock.
Bloomberg Intelligence senior ETF analyst Eric Balchunas commented on Ramji’s appointment, noting that he oversaw the filing and logistics of the IBIT ETF at BlackRock, showing an interest in the digital assets space. Vanguard, however, has a stance against cryptocurrencies. Before joining BlackRock, Ramji was a senior partner at McKinsey, where he was responsible for the firm’s asset and wealth management practice. He started his career as a lawyer at Clifford Chance in London and Hong Kong. Buckley praised Ramji for his commitment to advancing the interests of individual investors, his strong fiduciary ethos, and strategic thinking about solutions.
Ramji expressed his excitement about joining Vanguard and stated that the current investor landscape is changing, presenting opportunities for Vanguard to further its mission of providing investment success to its clients. Vanguard has maintained an anti-crypto stance, stating in January that it had no immediate plans to add a spot Bitcoin ETF to its platforms despite the buzz surrounding such ETFs in the industry. Janel Jackson, Vanguard’s head of ETF Capital Markets and Broker and Index Relations, explained that Vanguard considers various factors when deciding on which investment products to offer, including enduring investment merit and meeting clients’ needs.
Vanguard does not believe that cryptocurrencies have an appropriate role to play in long-term portfolios, according to Jackson. Despite the recent increase in discussions about bitcoin and cryptocurrencies, Vanguard remains firm in its decision not to launch its own bitcoin ETF or any crypto-related products. Ramji’s appointment as the new CEO at Vanguard raises speculation about potential changes in the firm’s stance on digital assets, given his previous involvement in overseeing the IBIT ETF at BlackRock. However, the firm’s commitment to prioritizing the interests of individual investors and its fiduciary ethos remain central to its leadership team and culture.
Ramji’s background in asset management and his experience at BlackRock make him a fitting choice to lead Vanguard, a key player in the asset management industry. His strategic thinking and commitment to client success align with Vanguard’s mission, and his appointment signals a new chapter for the firm. With the changing investor landscape and evolving market trends, Ramji’s leadership will be vital in navigating the challenges and opportunities that lie ahead for Vanguard. His appointment marks a significant development for the firm and sets the stage for future growth and innovation under his leadership.
