Vanguard president and chief executive William McNabb is to take over from John Brennan as chairman of the $1.3 trillion investment management company and the Vanguard funds, effective from 1 January next year.

Mr McNabb took up the CEO role at Vanguard in August last year under a transition plan announced in February 2008. He joined Vanguard in June 1986 and has held various senior leadership positions during his career, including directing Vanguard’s institutional and retail arms.

Mr McNabb will continue as President and CEO.

Mr Brennan joined Vanguard in 1982. He served as Vanguard CEO from January 1996 to August 2008 and chairman from January 1998 to December 2009.