BOSTON (Reuters) – Fidelity Investments on Friday named know-how executive Steve Neff to run its huge asset management division, a transfer that exhibits the rising significance of knowledge techniques for fund corporations.
Neff, a 22-year Fidelity veteran, replaces Charlie Morrison, whose pending retirement the privately held Boston agency introduced in October.
“It’s an opportune time for Steve to lead Asset Management, as technology is becoming increasingly important in our efforts to deliver outstanding investment performance and solutions for our customers,” Fidelity Chief Executive Abigail Johnson wrote in a memo to staff seen by Reuters.
Johnson stated Neff will proceed to report to her and stay a member of the corporate’s working committee. His successor as head of know-how and international providers might be named quickly, she stated.
Fidelity had $2.5 trillion in complete belongings underneath management as of March 31, in accordance to the corporate’s web site. In its newest annual report, Fidelity’s dad or mum stated belongings beneath management rose extra slowly than at some rivals, however reported robust funding efficiency and stated its working revenue rose.
Neff beforehand held jobs supporting Fidelity funding operations. In the brand new position he’ll oversee greater than 500 funding professionals operating Fidelity’s best-known merchandise just like the $120 billion Contrafund.
Lately Fidelity has been aggressively decreasing and eliminating charges because it battles business rivals for cost-conscious shoppers, a dynamic that has elevated the significance of clean know-how operations.
John Bonnanzio, who edits a publication for Fidelity buyers, stated by way of e-mail the choice of Neff might increase cultural questions since Fidelity’s analysts and fund managers are “investment geeks, not techno geeks.”
But the decide might make sense, Bonnanzio stated: “Perhaps it’s also a reflection of the fact that technology is integral to everything Fidelity does and, increasingly, security selection, too.”
Reporting by Ross Kerber; Editing by Sonya Hepinstall