The board of the Vanguard Group has announced CIO Tim Buckley will become the firm's fourth CEO since it was founded in 1975, as Bill McNabb steps down as chief executive next year.
McNabb, who joined Vanguard in 1986, has been chief executive since 2008 and will remain as chairman of the board. There will be a six-month transition period with Buckley taking over on 1 January 2018.
Buckley has worked as chief investment officer at the firm since 2013, a role that involves responsibility for $3.8trn of assets.
As part of the move, Buckley has also been appointed president and director of the firm.
His CIO role will be assumed by Greg Davis who is currently global head of fixed income.
Prior to becoming CIO, Buckley worked in a variety of roles including as head of the firm's retail investor group between 2006 and 2012.
Vanguard saw global inflows of $289bn in 2016, more than the rest of the industry combined.
McNabb said: "As the firm continues to grow, evolve and expand globally, it is the right time for a new leader and the board is unanimous in its belief that Tim is the ideal next chief executive for Vanguard.
"I have worked alongside Tim for many years and he brings a strong passion for serving Vanguard clients and crew, a global mindset, and significant leadership experience in all facets of our operations."
Buckley said: "Vanguard's mutual structure and client-focused culture serve as the foundation for everything we do, and I am honored to lead this great organisation into its next chapter,
"Thanks to Bill's strong leadership over the past ten years, Vanguard is well-positioned to continue helping clients achieve investment success. I look forward to continuing to work closely with Bill over the next six months as I transition to my new role."
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