(Bloomberg) -- Ronald O'Hanley, who stepped down last year as head of Fidelity Investment's asset management business, is set to run State Street's $2.45 trillion investment arm.

Scott Powers, 56, the current head of State Street Global Advisors, will retire this year, according to a statement Tuesday from the Boston-based company. He will start transitioning responsibilities to O'Hanley, 58, in early April.

"Although it is bittersweet to be retiring from SSGA, I know I leave the firm on a very solid footing, with even greater prospects ahead," Powers, who led State Street Global Advisors for more than seven years, said in a statement.

State Street Global's assets have expanded 22% over the past five years, with exchange-traded fund assets growing by 85%, according to the statement.

O'Hanley will report to Jay Hooley, chairman and chief executive officer of State Street and sit on the company's management committee.

Sabrina Willmer is a reporter with Bloomberg News.

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