Mutual fund giant Fidelity Investments announced Monday a major restructuring that includes replacing Abigail Johnson, the chairman's daughter, with a committee to run its money management arm, Reuters reports.
Boston-based Fidelity, which has more than $1.1 trillion in assets under management, said Johnson will become president of Fidelity's Employer Services Company, which provides retirement, benefits and human resources services to companies. Johnson, whose family controls the privately held company, was promoted four years ago to run the money management division, succeeding Robert Pozen.
Robert Reynolds, Fidelity's vice chairman and chief operating officer, will chair a committee to oversee the company's mutual fund unit. Reynolds has been Abigail Johnson's boss and reports to her father Edward "Ned" Johnson, the company's chairman and chief executive.
Johnson worked her way up the ranks as a portfolio manager and has long been seen as her father's successor when he retires. Edward Johnson said it was time for Fidelity to reevaluate how it manages it business and review what it can do better, according to Reuters.
The news comes on the heels of Fidelity's decision to spin off its institutional money management unit, headed by Peter Smail, who currently oversees the unit Abigail Johnson will take over. The changes take effect immediately.