Vanguard on Friday said its chief investment officer Gus Sauter plans to retire at the end of 2012. The 25-year Vanguard veteran is known as a pioneer in passively managed index funds and ETFs.
He will be replaced as CIO by Vanguard insider Tim Buckley, 43, who has directed the firm’s retail investor group since 2006.
Sauter, 57, joined Vanguard in October 1987, just two weeks before the Black Monday crash.
At Vanguard, the investment management groups he oversees are responsible for $1.6 trillion in assets, according to a press release.
After joining Vanguard in 1987, Sauter developed new trading programs and strategies that minimized trading costs and reduced tracking error. He also developed Vanguard’s active quantitative strategies for equities and led the firm’s entry to the ETF business. Sauter designed a unique structure under which Vanguard ETFs are actually separate share classes of its existing index funds.
In 2003, Sauter was named Vanguard’s first-ever CIO.
“I look back with a mixture of pride and humility on helping to popularize the indexing concept,” Sauter said in the press release. He is considering “a number of endeavors,” including teaching, after he steps down at year-end.
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