Like Father, Like Daughter, at Fidelity
Posted on May 11, 2010
Filed Under Mutual FundsToday Fidelity Investments announced what some of our clients thought of as a “restructuring.” It wasn’t, really. Fidelity promoted Abigail Johnson, president of Personal and Workplace Investing, to president of Personal, Workplace and Institutional Services—effectively putting her in charge of all distribution channels within the Boston-based fund complex.
Abby, as she’s known to those of us in the business, is the daughter of CEO Edward C. Johnson 3rd. He’s known as “Ned” to everyone outside of Fidelity, and The Chairman to everyone inside Fidelity. Ned, in turn, is the son of Edward C. Johnson II, the man who founded Fidelity back in 1949.
Ned and Abby basically own the company. This move has been expected for years, and is seen as another step in setting up a succession plan for the $1.5 trillion fund giant. As far as I’m concerned, it should have been announced a long time back. Ned Johnson, after all, turns 80 on June 29th.
What does this mean to you, the investor in Fidelity mutual funds? Basically, nothing. Abby has held many positions within Fidelity, including overseeing many of Fidelity’s funds. She knows the firm inside out, and most of us who have been watching Fidelity for years expect no radical changes to the staid corporate Fidelity image, nor to its constant focus on achieving strong returns from its large fund lineup.
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