What are your views on Salim Ramji former exec at Black Rock becoming CEO of Vanguard. should we be concerned?

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Recycles dryer sheets
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I know there are many long term investors here and Vanguard clients. I wanted to get your opinion on this guy coming from Black Rock?
 
I don’t like the move towards sustainability, environmental, etc that blackrock pushed. Especially when it became more about preferred.

Distracted from maximum returns. I divested from all blackrock products
 
If he brings a focus on service without increasing expenses it will be a positive step. His predecessor didn't have a stellar record. I don't think he will push the ESG movement as he had the position before at a company mired in the ESG movement and left in favor of a company not known for the same.
 
Former BlackRock executive Salim Ramji will succeed Tim Buckley as Vanguard’s fifth chief executive officer on July 8, 2024. He will be the first CEO who did not rise through the fund family’s leadership ranks.

Ramji left BlackRock in January as its global head of iShares and index investing, and his appointment represents a departure from Vanguard’s historical norm. The firm’s prior CEOs came from its internal executive ranks, making Ramji the first external candidate to take the reins.

Ramji will inherit a firm that is by no means struggling to garner assets. Vanguard managed more than USD 8.4 trillion from roughly 50 million clients globally at the end of March 2024. It led all asset-management firms with more than USD 110 billion of inflows in 2023, second only to BlackRock.
Click to expand...
www.morningstar.com

Vanguard Chooses an Outsider as Its New CEO

Is this the start of a new era for Vanguard?
www.morningstar.com www.morningstar.com
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Vanguard's ship has been wandering off course for many years. This is a move to transform the company so it can grow faster, and support better customer service and IT systems. He's probably gonna clean out more of the old guard.
 
I don't like the ESG ties, but I have too much money in Vanguard to pull out. It's unfortunate that I am indirectly supporting that nonsense, but I'd face too much capital gains tax if I withdrew my dough.
 
Unless they go too far, so far totally unknown, I’m not sure what’s wrong with basic ESG. I’m certainly not for totally disregarding the environment, social or corporate governance in search of returns.
 
The ESG is not straight forward. Examples of gyration in “preferences” is companies like Tesla - they’re great, then suddenly they’re terrible. Some believe it was about politics and Musk. I’m ignoring the why, just the no basis for many gyrations. Then, the traditional energy sector is ignored until it greatly outperforms…..

I don’t want that additional philosophy and variance in my investments. If I want to choose to select a company/fund that’s one thing - but effectively a mandate across the board - that’s another thing.
 
I didn’t know enough about ESG so I had to look it up. Sounds good in print but who is determining what is right or wrong. I would rather have my investments free of this. I would rather have ESG problems exposed and I determine whether it violates my ethics and beliefs.
 
retire48in2018 said:
The ESG is not straight forward. Examples of gyration in “preferences” is companies like Tesla - they’re great, then suddenly they’re terrible. Some believe it was about politics and Musk.
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The problem with Tesla in an ESG fund is probably not the environmental element. More likely that its run-up in share price meant that it made up a larger percentage of holdings than managers were comfortable with--especially since its peak valuation would have required Tesla to take over 50% of the US automobile market to support it.

It may also have run afoul of social aspects with discrimination lawsuits at the Fremont plant, or corporate governance aspects with a Board of Directors excessively tied to Musk. It sounds like the ESG funds cutting their holdings in Tesla were acting in accordance with their stated goals, which any investor can choose to buy into--or not.

NOTE: My wife has had an ESG fund as a core retirement holding for years, and it has done reasonably well.
 
target2019 said:
I'd like to point out that Vanguard has ESG funds now. Vanguard Investment Products List

As with any investment company, you choose from a selection, and go with your core ideas.
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I don't care if V (or anyone else) offers ESG funds. People can spend/invest their money any way they want to. (I won't be investing in ESG or "socially responsible" or any other fad.) YMMV
 
Koolau said:
I don't care if V (or anyone else) offers ESG funds. People can spend/invest their money any way they want to. (I won't be investing in ESG or "socially responsible" or any other fad.) YMMV
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This thread is going off the rails. The topic is actually Salim Ramji , new CEO of Vanguard.

For some reason, a poster railed on the fact that he came from Blackrock, and Blackrock pushes ESG. I merely pointed out that Vanguard has ESG-focused funds.

I apologize for using a trigger - which is the best I can figure out at this point. I don't use ESG funds, but understand why younger generations support them. It is also worth a thought or two that Vanguard is lagging Blackrock in some areas. It could be that Vanguard's board is considering that the oldest generation of investors will pass, and the next generations come into play.
 
target2019 said:
... It could be that Vanguard's board is considering that the oldest generation of investors will pass, and the next generations come into play.
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Right once again.
We old folks are all gonna croak, sooner rather than later.
So the question is: what sort of funds are the younger gens clamoring for?
 
The only feasible answer is "Let's wait and see."

Regarding ESG, to survive any business must serve its market. Blackrock saw an advantage to being a leader in serving the market that wants the ESG imprimatur (even though no one really knows what it means). Vanguard clearly did the same though at a smaller level. There is a lot of turmoil in that space right now as greenwashing spreads and any fund will have to deal with that. If Ramji sees more opportunity than Vanguard has seen, maybe he will emphasize it more. But regardless, eventually this too shall pass. Remember, investing time horizons are measured in years. No need to get spun up now.
 
TheWizard said:
Right once again.
We old folks are all gonna croak, sooner rather than later.
So the question is: what sort of funds are the younger gens clamoring for?
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I'm quite skeptical of the claims that younger people are going to collect inheritances on a large scale. The medical/pharmaceutical/long-term care complex will get the most of the assets that our older generation doesn't Blow that Dough on.

Younger people will have to accumulate their own assets.
 
target2019 said:
This thread is going off the rails. The topic is actually Salim Ramji , new CEO of Vanguard.

For some reason, a poster railed on the fact that he came from Blackrock, and Blackrock pushes ESG. I merely pointed out that Vanguard has ESG-focused funds.

I apologize for using a trigger - which is the best I can figure out at this point. I don't use ESG funds, but understand why younger generations support them. It is also worth a thought or two that Vanguard is lagging Blackrock in some areas. It could be that Vanguard's board is considering that the oldest generation of investors will pass, and the next generations come into play.
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There's a lot of emotion with no basis above. We should probably drop the ESG discussion since we don't have any facts yet or anytime soon...
 
Midpack said:
There's a lot of emotion with no basis above. We should probably drop the ESG discussion since we don't have any facts yet or anytime soon...
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Actually, we should drop the ESG discussion since it's irrelevant to the thread. The real issue is whether Ramji has the ability to lead Vanguard to higher standards of execution and efficiencies as a brokerage and improved levels of customer service/satisfaction. Whether he starts another ESG focused fund or two at Vanguard isn't going to matter. Are people worried that he'll cash everyone out of their VTSAX / VTI and try to force them to buy some new ESG fund?
 
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youbet said:
.... The real issue is whether Ramji has the ability to lead Vanguard to higher standards of execution and efficiencies as a brokerage and improved levels of customer service/satisfaction. ....
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Based on the complaints I've seen here, this is likely the only issue.
 
I don't think there's any evidence that ESG instruments have lower returns.

If anything, it may be the opposite.
 
ESG translates to DEI and other initiatives that are ruining entertainment and corporations chasing the money; it's tied back to the WEF and their plans to remake the world in their image. But I agree it's best to keep ESG out of the discussion. Political discussion isn't allowed on this forum, and ESG is extremely political.
 
All I care about is their index funds. If he raises expense ratios a basis point or two to fund better customer service, that’s ok too.
 
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