Management Shakeup at Fidelity - TheStreet

Management Shakeup at Fidelity

Reynolds steps down after four months as head of the money management unit.
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Fidelity Investments

said Thursday that vice chairman and chief operating officer Robert L. Reynolds is retiring after 23 years, raising questions about succession plans at the mutual-fund giant.

Reynolds had taken over an effort to reorganize Fidelity's core investment management business just four month earlier. The company has no immediate plans to fill his position.

Fidelity also announced an expanded role for Ellyn A. McColgan, who has served as president of Fidelity's brokerage arm since 2002. She will now also oversee a number of Fidelity's sales departments, including those that sell funds to institutional investors and life insurance companies.

Abigail P. Johnson, president of Fidelity's 401(k) business, will share leadership of these additional sales responsibilities.

Fidelity also said it had named John J. Redmondi interim chief administrative officer; he will oversee functions such as human resources, finance, compliance and government relations.

"Fidelity has grown significantly over the past few years as have the challenges facing our clients," chairman and chief executive Edward C. Johnson 3rd said in a press statement. "We have a broad array of products and services across many distribution channels in a market that has grown increasingly complex and competitive. It is imperative that in this environment that we step back and adapt our structure and sharpen our focus."

Fidelity is one of the largest mutual fund managers, with $1.4 trillion under management, but it has been losing market share.