Nov 4 Vanguard Group, the No. 1 U.S. mutual fund
company, said on Monday that Gregory Davis, a major force behind
the launch of bond exchange-traded funds, will become the chief
of its fixed-income group, which has $750 billion in assets.
Davis, 43, will replace Robert Auwaerter, who is retiring in
March after more than 30 years with Vanguard, where he oversaw
exponential growth in bond assets.
Davis is currently Vanguard's chief investment officer in
the Asia Pacific region and director of investments in
Australia. He has played a major role in helping Vanguard
successfully launch bond ETFs such as the Vanguard Total
International Bond ETF. That fund has nearly $700
million in assets since its launch just six months ago,
Vanguard's chief investment officer, Tim Buckley, said.
Auwaerter, 58, is credited with playing a major role in
taking Vanguard from a bond backwater in the 1980s to a global
"He has a tough record to equal," Buckley said. "He's got
that one gear and its full speed."
Before Auwaerter joined Vanguard in 1981, the company had
only $1.3 billion in bond assets and they were managed by
outside firms. Today, Vanguard's bond division oversees about
$450 billion in actively managed funds and about $300 billion
more in index and exchange-traded funds.
Auwaerter also has been one of the mentors for Davis, who
was in Australia and not available for comment. Davis joined
Vanguard in 1999 and previously worked for Merrill Lynch as an
associate in global debt markets.
Vanguard said it has $108 billion in Asia Pacific assets, up
nearly three fold from $39 billion in 2008.
Buckley said not to expect any immediate big changes at
Vanguard's fixed income division.
"I'm a big fan of letting (Davis) get a good lay of the
land," Buckley said. "He'll get a few months under his feet and
he'll see what works and what are the things where there are
opportunities for change."
Davis received a bachelor's degree from Pennsylvania State
University and has an MBA in finance from the Wharton School at
the University of Pennsylvania.