James H. Gately, who has headed up The Vanguard Group's institutional division since 1989, moved to the firm's individual investor group Jan. 1.
F. William McNabb, who was head of marketing for the institutional division at Vanguard, was name senior vice president and succeeded Mr. Gately as head of the institutional division.
Mr. Gately, senior vice president, joined the Valley Forge, Pa.-based firm in 1989 with a mandate to pull the various departments at Vanguard that dealt with institutional investors into one department.
In 1989 the firm had about $40 billion under management, of which $8 billion was institutional. Today Vanguard has about $150 billion of assets under management, with about $50 billion for institutional clients.
As head of the individual investor group, Mr. Gately is in the process of uniting the previously independent functions, including marketing, client services and operations, into one department.
Through the years, Mr. Gately said, the institutional division has benefited from referral from the retail side and now there is a flow back from 401(k) plan participants who are retiring or changing jobs. A lot of that referral is going into IRAs, he said. "There has been good cross-referencing over the years."