BOSTON (Reuters) - Fidelity Investments asset management head Ron O’Hanley will leave the company at the end of February, executives said on Wednesday, after running a key unit of the family-controlled business since 2010.
Boston-based Fidelity expects to replace O’Hanley with someone from within the company in the coming weeks, according to a letter sent to the firm’s associates by Abigail Johnson, president of Fidelity Financial Services.
Neither Johnson nor O’Hanley were immediately available for interviews, according to a spokesman. O’Hanley, 56, plans to spend more time with his family and to work with non-profit organizations, Johnson said in her letter.
As president of Fidelity’s asset management division O’Hanley oversaw its well-known lineup of mutual funds and helped stem a tide of outflows as investors moved into passively managed funds.
When O’Hanley joined Fidelity from BNY Mellon Corp (BK.N) in 2010, he was seen as a possible successor to take over the firm someday from Chairman Edward C. “Ned” Johnson III, Abigail Johnson’s father.
But in 2012 Fidelity promoted Abigail Johnson to a position that made her O’Hanley’s boss, a signal she would run the company some day.
Fidelity had $1.87 trillion under management in its funds at the end of December, according to Lipper data, trailing only Vanguard Group Inc of Pennsylvania, with $2.23 trillion. After several years of outflows, Fidelity reported a net inflow of investor cash of $17.7 billion last year.
Reporting by Ross Kerber; Editing by Jeffrey Benkoe