Abigail Johnson, daughter of former Chief Executive Officer Edward Johnson, will replace her father as CEO of Fidelity Investments.
Abigail is the third CEO from the family and the first new CEO since the carter administration that will lead the Boston-based company that her grandfather founded.
Meanwhile, Edward Johnson, 84, who have served as the company's head for nearly 40 years and have transformed the company from a mutual-fund firm to a company that is able to offer several financial services, will remain in the company's board as its chairman.
Fidelity Investments is one of the largest investors around the globe, able to handle investment and retirement accounts of 23 million clients as well as a number of 401(k)s accounts. The company has also handled 566 mutual funds back in 2013 and gained $2 trillion assets under management.
Aside from that, 193 out of 500 Fortune companies have acquired Fidelity Investment's 4019k) plans.
Meanwhile, Abigail Johnson started out in the company back in1988 as a stock analyst. Prior to being CEO, she headed the Retail, Workplace and Institutional Businesses division of Fidelity Investments.
Johnson is considered as one of the country's richest women, amassing $12.3 billion in worth, while her father's net worth is $6.8 billion, according to Forbes.
Johnson is placed into a job at a very challenging period for Fidelity Investments.
Currently, investors are looking for low-cost index funds found in competitor firm Vanguard Group.
The company has experienced over $9 billion net outflows this year until September, according to research firm Morningstar Inc.
Aside from that, Fidelity was reportedly trailing behind its competitors in terms of offering low-cost options.
Johnson is up and about in managing the company's exchange-traded funds which can be purchased and bought within the day.
"Assuming the CEO title represents a natural extension of Abby's current role of president overseeing all operations of FMR LLC and reflects Abby's successful contributions and leadership at Fidelity over the past 26 years," said Fidelity spokesman Vin Loporchio.
