Fidelity Investments will cleave the distribution side of the company from the asset management side of the company, with Abigail Johnson taking on all of distribution and a new hire, Ronald O'Hanley, to head asset management and corporate services. Johnson and O'Hanley will report to Fidelity's chairman and CEO, Edward Johnson 3d, according to a May 10 announcement.
Fidelity will fold all of the firm's "customer and client-focused businesses" into a new entity called Fidelity Personal, Workplace and Institutional Services. This includes Fidelity Institutional and Fidelity Investments Institutional Services, as well as the Personal Investing and Workplace Investing units that Johnson has led for five years. She will be president of the new entity, in addition to her current role as vice chairman and director of the holding company for Fidelity Investments, FMR LLC. Johnson is currently also "a member of the Fidelity Executive Committee; and chairman of the Fixed-Income/Asset Allocation Board of Trustees," the firm said in the announcement.
"This new structure will position Fidelity strategically for the future by bringing all of the firm's distribution resources together," Johnson--who is Johnson's father--said in the release.
O'Hanley's new role will begin when he joins Fidelity in "mid-summer," the release stated. He will run "Fidelity Management & Research Company (FMRCo), Pyramis Global Advisors and Fidelity's Asset Allocation Division, comprising Strategic Advisers, Inc., and Global Asset Allocation, as well as all corporate functions." O'Hanley joins Fidelity from BNY Mellon Asset Management, which has more than $1 trillion in assets under management, and where he was president and CEO. He was vice chairman and a member of the executive committee of Bank of New York Mellon Corp.
"Ron O'Hanley will bring valuable asset management and executive experience to our investing and corporate functions as well as a strong leadership track record, Johnson stated in the announcement.
Fidelity Investments has, as of March 31, more that $3.3 trillion in assets under administration, including $1.5 trillion in AUM.