Vanguard’s biggest active bond fund manager, Citywire + rated Gregory Nassour, has resigned from the firm after 26 years.
Nassour, co-head of investment grade credit at Vanguard, had managed a combined $135.7 billion across seven actively-managed bond funds and one variable insurance fund.
According to Morningstar, the Vanguard Short-Term Investment-Grade fund is the seventh largest bond fund in the US and the fourth largest actively-managed bond fund in the US behind the $72 billion Pimco Total Return fund, the $78.2 billion Metropolitan West Total Return Bond fund and the $111.9 billion Pimco Income fund.
Nassour also managed the:
- $16.2 billion Vanguard Long-Term Investment-Grade fund, alongside Citywire + rated Scott I. St. John from subadvisor Wellington Management
- $14.9 billion Vanguard Institutional Intermediate-Term Bond Institutional Plus fund, alongside Brian Quigley and Gemma Wright-Casparius
- $6.6 billion Vanguard Institutional Short-Term Bond Institutional Plus fund, alongside Quigley
- $3.8 billion Vanguard Ultra-Short-Term Bond fund, alongside Samuel Martinez
- $955.2 million Vanguard Core Bond fund, alongside Quigley and Wright-Casparius
The Vanguard Short-Term Investment-Grade fund and the Vanguard Intermediate-Term Investment-Grade fund will now be managed by Martinez and Daniel Shaykevich.
Martinez and Shaykevich have also joined St. John on the Vanguard Long-Term Investment-Grade fund.
They joined Quigley and Wright-Casparius on the Vanguard Core Bond fund and the Vanguard Institutional Intermediate-Term Bond Fund Institutional Plus.
The duo has also been added to the Vanguard Institutional Short-Term Bond Institutional Plus fund, alongside Quigley, while Shaykevich has joined Martinez on the Vanguard-Ultra Short-Term Bond fund.
‘We expect the transition to be seamless. Vanguard maintains a deep and cohesive bench of capable, experienced portfolio managers who are prepared to step in and lead fund management responsibilities,’ a Vanguard spokesman said.
Nassour had also been manager of the $1.6 billion Vanguard Variable Insurance Fund Short-Term Investment-Grade Portfolio, on which Martinez and Shaykevich replaced him on as well.
According to the same Vanguard spokesman, co-head of investment grade credit Stephen Kozeracki has taken over as sole head of investment grade credit.
The largest of the funds, the Vanguard Short-Term Investment-Grade fund, is ranked 19 out of 80 Short Investment Grade Debt funds tracked by Citywire for three-year total returns to the end of February. Over that time it returned 4.5% compared to the average Short Investment Grade Debt fund, which was up 3.6%, and the Bloomberg Barclays 1-5 Year Credit index’s 4.4%.
According to Morningstar, Nassour joined Vanguard in 1992 and started managing portfolios in 2001.