Fidelity Investments announces another reorganization

Fidelity Investments last week named Abigail Johnson and Ronald O’Hanley to top roles after splitting responsibility for running the company.

Fidelity created two distinct units as the company has expanded beyond managing mutual funds into stock trading, retirement planning and institutional money management. In their new roles, Ms. Johnson and Mr. O’Hanley take over responsibilities previously held by Rodger Lawson, who stepped down at the end of March.

Mr. O’Hanley, president and chief executive of BNY Asset Management, will join Fidelity as president of the Asset Management and Corporate Services unit, according to a statement from the company.

Ms. Johnson, who was promoted to president of Fidelity Personal, Workplace and Institutional Services, is now effectively the head of all Fidelity distribution channels.

Ms. Johnson, the daughter of Edward “Ned” Johnson III, Fidelity chairman and chief executive, was also named a vice chairman and director of FMR LLC, the holding company for the businesses of Fidelity Investments. She begins her new duties immediately.

Mr. O’Hanley plans to join Fidelity in midsummer.

The new distribution structure “will position Fidelity strategically for the future by bringing all of the firm’s distribution resources together to focus on providing outstanding products and services to Fidelity’s clients and customers,” Mr. Johnson said in the statement.

Ms. Johnson is taking on more responsibility by overseeing all Fidelity’s intermediary businesses, said Vin Loporchio, a Fidelity spokesman.

That includes all the firm’s distribution channels, which serve banks, broker-dealers, insurers and registered investment advisers.

Michael Durbin, president of institutional wealth services, Fidelity’s custody business, remains in charge of that unit, Mr. Loporchio said. Mr. Durbin reports to Gerard McGraw, president of Fidelity’s institutional products group.

Mr. Durbin had reported to Mr. Lawson. Ms. Johnson and Mr. McGraw had also reported to Mr. Lawson. Mr. McGraw is now reporting to Ms. Johnson.

“Abby and Ron [O’Hanley] will report to Mr. Johnson,” Mr. Loporchio said.

MOVING PARTS

The reshuffling is the latest in a series of management moves at Fidelity.

Charles Goldman, the former president of institutional platforms, left in March. His position wasn’t filled.

Ms. Johnson has run a number of Fidelity businesses over the years and has been rumored to be a possible successor to her father.

Mr. Loporchio said that Mr. Johnson has no plans to retire and that the firm has an undisclosed succession plan in place.

Meanwhile, BNY Mellon intends to conduct a “comprehensive search for a permanent head of the asset management business” to replace Mr. O’Hanley. The search will consider both internal and external candidates.

In the interim, Jonathan Little, the vice chairman of BNY Mellon Asset Management, and Mitchell Harris, chairman of the fixed-income, cash and currency group, will serve as interim co-heads of the firm.

Douglas Appell, a reporter with sister publication Pensions & Investments, contributed to this story.

E-mail Dan Jamieson at [email protected]