Fidelity Investments, the world's biggest mutual fund company, said on Thursday its vice
chairman and chief operating officer will retire in a shake-up that promotes the head of its fast-growing brokerage business.
Robert Reynolds, a 23-year Fidelity veteran who made a failed bid to become U.S. National Football League commissioner last year, steps down at a time when Fidelity is seeking to
reverse a loss of market share in its mutual funds business.
"I feel it's time for some new experiences," said Reynolds, 55, in the statement.
Ellyn McColgan, president of Fidelity Brokerage, the industry's biggest, is promoted to oversee distribution and operations in a role shared with Abigail Johnson, daughter of Fidelity Chairman and Chief Executive Officer Edward Johnson.
McColgan's role will be replaced, but she will also continue to oversee the brokerage business.
"It's clearly a promotion for Ellyn. She's long been viewed as a rising star within the organization and by observers," said Dan Lefkovitz, a fund analyst at Morningstar.
The changes come three months after the retirement of Stephen Jonas, who ran Fidelity's investment management unit for less than two years.
"There's been a lot of fluidity over the years in the executive ranks at Fidelity. Over the course of Reynolds's tenure at Fidelity, there's no question that the company has become more diversified, and future growth might not come from mutual funds," said Lefkovitz.
Fidelity, which manages $1.4 trillion in assets and had $1.7 trillion in assets administered by its brokerage business as of Dec. 31., also said John Remondi has been named interim chief administrative officer.
Fidelity is losing market share in mutual funds to rivals American Funds and Vanguard Group.
According to Boston-based Financial Research, American Funds took in $74 billion in new money last year in stock and bond funds, more than four times the $17 billion that Fidelity got. Vanguard added $41.4 billion in 2006, FRC said.