MutualFundWire.com: Ned Hands Abby Fidelity's 'Core Businesses'

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Tuesday, August 28, 2012

Ned Hands Abby Fidelity's 'Core Businesses'

Abby Johnson is now in charge of all of Fidelity's [profile] "core businesses." Today Fidelity chairman and CEO Ned Johnson, Abby's 82-year-old father, revealed the promotion of his 50-year-old daughter to the new role of president of Fidelity Financial Services.

Abby still reports to Ned, and the promotion adds asset management, corporate operations and function support groups to her empire. She previously served as president of personal, workplace and institutional services and thus already oversaw retail and institutional brokerage, and retirement and benefits services, all of which she will continue to oversee.

The promotion also means that Ron O'Hanley, president of asset management and corporate services, will now report to Abby.

In a rare public statement, Ned himself said that Abby "has demonstrated an ability to drive change and innovation in business practices" and "is well suited for this important position." Yet Fidelity spokeswoman Ann Crowley confirmed that Ned has no immediate plans to step down and hand the complete reins to Abby.

"Ned Johnson remains chairman and CEO and continues to be actively involved in running the company," Crowley told MFWire. "The only change is really Abby's role."

Crowley noted that Fidelity Financial Services does not include non-core FMR businesses like Devonshire Investors, its private-equity arm.

Abby continues to serve as vice chairman director of Fidelity holding company FMR and as chairman of the board for Fidelity's fixed income and asset allocation funds.

Company Press Release
Fidelity Investments® Names Abigail P. Johnson President of Fidelity Financial Services

08/28/12

Move Consolidates All of Fidelity’s Core Financial Businesses Under One Operational Leader

BOSTON -- Fidelity Investments® today named Abigail P. Johnson president of Fidelity Financial Services, consolidating all of the company’s core businesses under her leadership.

Ms. Johnson will oversee a broad organization comprising the company’s financial services businesses – asset management, retail and institutional brokerage, retirement and benefits services, as well as corporate operations and function support groups. In her new role, Ms. Johnson will continue to report to Edward C. Johnson 3d, Fidelity chairman and chief executive officer.

“As our business continues to evolve, we want to bring all of our resources together to position our firm strategically to optimize our competitive capabilities to meet the growing and evolving needs of our mutual fund shareholders, clients and customers,” Mr. Johnson said in announcing the new appointment.

“During her 24-year career at Fidelity, Abby has gained a breadth of experience overseeing many of the divisions that comprise Financial Services,” Mr. Johnson said. “She has demonstrated an ability to drive change and innovation in business practices on behalf of our customers. She is well suited for this important position.”

Ms. Johnson most recently was president of the Personal, Workplace and Institutional Services organization, which includes the retail and institutional brokerage divisions, as well as retirement and benefits services. In that role, she partnered with Ronald P. O’Hanley, president of Asset Management and Corporate Services, to align their organizations to respond effectively to changes in the financial services industry.

Mr. O’Hanley will continue to oversee all of Asset Management and Corporate Services reporting to Ms. Johnson. In addition, the leaders of Fidelity’s brokerage and mutual fund distribution businesses will continue to report to Ms. Johnson in her new role.

Ms. Johnson also is vice chairman and director of FMR LLC, the holding company for the businesses of Fidelity Investments, and chairman of the Board of Trustees for the Fixed-Income/Asset Allocation funds.

About Fidelity Investments
Fidelity Investments is one of the world’s largest providers of financial services, with assets under administration of $3.7 trillion, including managed assets of $1.6 trillion, as of July 31, 2012. Founded in 1946, the firm is a leading provider of investment management, retirement planning, portfolio guidance, brokerage, benefits outsourcing and many other financial products and services to more than 20 million individuals and institutions, as well as through 5,000 financial intermediary firms. For more information about Fidelity Investments, visit www.fidelity.com.