Roughly nine months after welcoming a new CEO, Vanguard has revealed big plans to break into the wealth and advice space.
On Monday, Vanguard announced it's creating a new advice and wealth management division to be led by Fidelity alum Joanna Rotenberg, who's coming on board as managing director and a member of Vanguard's senior leadership team.
Rotenberg's appointment, set to take effect in January, reflects Vanguard's continued focus on expanding its wealth management offerings, which are among its fastest-growing segments.The company says it aims to build on its long-standing commitment to providing low-cost, diversified solutions for its clients.
"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," Vanguard CEO Salim Ramji said in a statement late Monday morning.
Formerly from BlackRock, Ramji came in as the firm's first-ever external chief executive hire in May, succeeding long-time CEO Tim Buckley, who announced his plans to retire in February.
"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," Ramji said.
Rotenberg joined Fidelity in 2021 as president of personal investing, where she oversaw the needs of more than 20 million US investors and managed a team of over 30,000 associates. Earlier in her career, she led BMO Wealth Management as group head and was a partner at McKinsey & Company, specializing in financial services.
"I have always admired Vanguard's unique structure and client-focused mindset," said Rotenberg. "I am humbled by the opportunity to lead the new Advice and Wealth Management group and expand Vanguard's offerings to help more people achieve investment success."
Alongside Rotenberg's hiring, the firm announced several moves to shake up its leadership. While Matt Benchener will continue to head up its personal investor business, John James is transitioning from his current role as managing director of Vanguard's institutional investor group to lead its workplace & advisor solutions division.
Lauren Valente, currently managing director and chief human resources officer, will step in as the new head of the institutional investor group. Meanwhile, Jon Couture, joining from Principal Financial Group, will succeed Valente as chief human resources officer. Prior to Principal, Couture had a stint as executive vice president for the human resources division within Wells Fargo's consumer lending, payments, virtual channels, operations, and innovation arm.
"Vanguard has always had a special culture, cemented in the consistency of its mission and the commitment of its people," Couture said. "I am thrilled to join the crew and to have the opportunity to help develop the next generation of Vanguard talent."
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