Mutual Fund Pioneer Bogle to Retire From Vanguard

John C. Bogle, a recognized pioneer in the mutual fund business, will retire early next year as chief executive of the Vanguard Group of Investment Cos.

Bogle, 66, said Wednesday that he will continue as chairman of Vanguard, which he founded in 1975 and which has come to stand as a prominent advocate of low-cost investing and the concept of index funds.

John Brennan, Vanguard’s 40-year-old president, is to succeed him as chief executive on Jan. 31.

Bogle, who has long suffered from heart disease, told a news conference that his health has not worsened lately. “I’ve been tempted to relax just a little bit,” he said.

Analysts have speculated for more than a year that Bogle would retire because of health concerns. He has suffered several heart attacks and is said to be awaiting a transplant.

Bogle also indicated that his decision was influenced by Vanguard’s strong recent record. The Malvern, Pa.-based firm, with more than $150 billion in assets and e 5 million shareholders, ranks second in the industry, behind Fidelity Management & Research of Boston.

His decision comes six months after veteran portfolio manager John B. Neff announced plans to retire at the end of 1995. Neff was manager of Vanguard’s flagship $11.7-billion Windsor Fund.

Bogle said he will continue as chairman of the Vanguard funds as well as the management company, and in those positions will remain active in the business.

He said he plans to devote some additional time to corresponding with investors and writing for professional journals on subjects such as the expectations of securities owners.

Brennan has worked at Vanguard since 1982 and has been its president since 1989. With that experience and the public statements he has made, he is not expected to make any dramatic changes in the way the firm operates.

Bogle’s career has been marked by a keen rivalry with Fidelity.

Looking back on that competition, he said, “I have absolutely no regrets.”