Fidelity realigns executive ranks

Fidelity Investments, the world’s biggest mutual fund company, today said its vice chairman and chief operating officer will retire in a shake-up that promotes the head of its fast-growing brokerage business.

Robert Reynolds, a 23-year Fidelity veteran who made a failed bid to become National Football League commissioner last year, steps down at a time when Fidelity is seeking to reverse a loss of market share.

"I feel it’s time for some new experiences," said Reynolds, 55.

Ellyn McColgan, president of Fidelity Brokerage Co., the industry’s biggest, was promoted to oversee distribution and operations in a role shared with Abigail Johnson, daughter of Fidelity chairman and chief executive Edward Johnson.

McColgan will also continue to oversee the brokerage business.

"It’s clearly a promotion for Ellyn. She’s long been viewed as a rising star within the organization and by observers," said Dan Lefkovitz, a fund analyst at Morningstar.

The changes come three months after the retirement of Stephen Jonas, who ran Boston-based Fidelity’s investment management unit for less than two years.

Fidelity, which manages $1.4 trillion in assets and had $1.7 trillion in assets administered by its brokerage business as of Dec. 31., also said John Remondi was named interim chief administrative officer.

Fidelity is losing market share in mutual funds to rivals American Funds and Vanguard Group. According to Boston-based Financial Research Corp., American Funds took in $74 billion in new money last year in stock and bond funds, more than four times the $17 billion that Fidelity got. Vanguard added $41.4 billion.
(Reuters)