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Fidelity Investments names new head of $3 trillion asset management division

Kitco News

BOSTON (Reuters) - Fidelity Investments on Tuesday named Bart Grenier, who was at the center of a tickets scandal at the mutual fund company more than a decade ago, to lead its nearly $3 trillion asset management division.

Grenier will replace Steve Neff, who is retiring at the end of the first quarter of 2020.

Neff, a 23-year veteran of Fidelity, ran Boston-based Fidelity’s asset management arm for less than a year. When he replaced Charles Morrison, the move underscored the growing importance of data systems for fund companies. Neff was head of technology and global services before taking the asset management position.

For the past two years, Grenier has served as global head of asset management at Fidelity International Ltd in London. The company is not owned by Boston-based Fidelity, but has common owners that include the family of Fidelity Investments Chair Abigail Johnson.

“Bart is the ideal candidate to succeed Steve,” Johnson said in a memo to employees. “The breadth of his experience across investment strategies and asset classes, as well as his strategic insights and spirit of innovation, makes him well suited to lead asset management.”

In 2008, Grenier was charged by the Securities and Exchange Commission along with 12 other Fidelity employees and former employees for improperly accepting $1.6 million in travel, entertainment and other gifts paid for by outside brokers hoping to win business from asset managers.

Grenier oversaw Fidelity’s equity trading desk and up to eight other business groups. He worked at Fidelity from 1991 to 2005 before leaving to join DB Advisors, a division of Deutsche Asset Management. He rejoined Fidelity in 2017 and then took his current job in London.

Grenier settled the SEC case without admitting or denying the allegations. He also agreed to pay disgorgement of $24,152 and prejudgment interest of $2,165 to the U.S. Treasury, according to the SEC.

Reporting By Tim McLaughlin; Editing by Chizu Nomiyama and Dan Grebler

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