Vanguard is putting renewed emphasis on growing its financial advice business. The company said it has hired former Fidelity executive Joanna Rotenberg to lead a new advice and wealth management division which oversees more than $900 billion in assets.
The company has previously indicated that wealth management is a key area of growth for Vanguard alongside active management. The creation of a new division and the hiring of a top industry executive to lead it are also a sign that CEO Salim Ramji, who joined Vanguard from BlackRock in July, is putting his mark on the company and its strategy.
“For nearly five decades, Vanguard has been a positive force in democratizing investing, helping to give tens of millions of investors the best chance for investment success,” Ramji said in a statement. “With the addition of Joanna to our leadership team, our goal is to further democratize our advice and wealth management offerings for our clients through enhanced technologies and offers—with the same client zeal that Vanguard has long been known for.”
Vanguard is one of the world’s largest asset managers and well known for its index funds. The Malvern, Pa.-based company has more than $9 trillion in assets. Vanguard has also long had a wealth management business, which it has expanded in recent years with digital advice offerings that paired professionally managed portfolios with Vanguard’s typical low costs. For instance, Personal Advisor launched in 2015 and offers access to certified financial planners for a low advisory fee of 0.3%.
Vanguard also named new additions to its senior leadership team. John James, current managing director of the Institutional Investor Group, has been named head of Workplace & Advisor Solutions, according to the company. He will focus on deepening relationships with enterprise clients, the company said. Lauren Valente, chief human resources officer, will replace James as head of the Institutional Investor Group. And Jon Couture will join Vanguard from Principal Financial Group this month and replace Valente.
