Although more than half of Fidelity's assets are in equities, the new asset management chief, Charles Morrison, comes from the fixed-income side of the business, which has been very strong and stable.
Fidelity has named Charles Morrison head of asset management. Morrison replaces Ron O'Hanley, who is departing at the end of February. Unlike O'Hanley, who came to Fidelity from Bank of New York Mellon BK in mid-2010, Morrison has been with the firm for 27 years. He's overseen Fidelity's fixed-income group since 2011. Before that he ran the firm's bond and money market groups and managed some fixed-income funds. He joined the firm as a fixed-income analyst in 1987.
Choosing someone from the fixed-income side might seem unusual given that more than half of Fidelity's assets are in equity funds. However, Fidelity's fixed-income group is among the best in the industry, taking a risk-conscious, team-oriented approach that's produced strong long-term results. Morrison may bring more of a risk-management focus to the equity side, though it's hard to know exactly how that will play out. As part of Fidelity's senior management team for the past few years, he says he doesn't anticipate making major changes.
Morrison plans to announce an internal successor on the fixed-income side soon.