Robert F Auwaerter, principal and head of the Vanguard fixed income group, intends to retire after 32 years with the firm.
Auwaerter, 58, joined Vanguard in 1981 when the company brought in house the investment management of its money market and municipal bond funds. These funds, which then had total assets of approximately USD1.3bn, had been managed by external advisory firms.
Today, the Vanguard fixed income group is one of the largest fixed income managers in the world, managing nearly USD750bn invested in 70 taxable and tax-exempt bond, taxable and tax-exempt money market, and stable value funds. The group oversees about USD450bn in actively managed funds and approximately USD300bn in bond index and exchange-traded funds.
“Bob has been the backbone of our fixed income group for more than three decades. He helped to start our fixed income management function and was instrumental in building it into the world-class operation that it is today,” says Vanguard chief executive Bill McNabb. “Bob’s record as a portfolio manager is outstanding, and we are deeply indebted to him for his dedication and service to our clients over a long and successful career.”
Auwaerter, who plans to step down in March 2014, is responsible for the portfolio management, strategy, credit research, trading, and planning functions for the fixed income group, which comprises 120 investment professionals and support staff. For many years, he served as the portfolio manager of several of Vanguard’s largest bond funds, including the USD46.0bn Vanguard Short-Term Investment-Grade Fund and the USD16.6bn Vanguard Intermediate-Term Investment-Grade Fund.
Gregory Davis will assume the position of head of the Vanguard fixed income group. Davis, 43, currently serves as chief investment officer of the Asia Pacific region and is a director of Vanguard Investments Australia. He is primarily focused on Vanguard's investment management strategy and implementation, the continued development and refinement of Vanguard’s investment processes, and an expanding range of new products and tailored investment solutions for Australian and international clients.
Davis joined Vanguard in November 1999 and, prior to his current position, served as a senior portfolio manager and head of bond indexing in the Vanguard fixed income group. Davis and his team then managed more than USD200bn in bond index fund portfolios.
“Greg brings experience, skill, and strong leadership competencies to his new position,” says Vanguard chief investment officer Tim Buckley. “And Greg, of course, will also benefit from our deep team of investment managers and analysts, our well-established investment process, and funds with clear investment objectives and risk parameters.”