Fidelity's parent moves McGraw to expanded CFO role

By Ross Kerber and Tim McLaughlin

BOSTON (Reuters) - Fidelity Investments parent FMR LLC on Wednesday named company veteran Gerard McGraw as its new chief financial officer and gave him an expanded role overseeing finance and brokerage operations.

While McGraw will continue to report to Fidelity Chief Executive Abigail Johnson, the shift marks one of the more significant personnel changes she has made since being named in 2014 to run the family-controlled Boston firm, one of the world's biggest fund managers.

McGraw, 61, will replace Alan Scheuer, 62, who will retire at the end of June after nine years in the role, Fidelity said in a press statement.

McGraw joined Fidelity in 1996 and has been president of Fidelity Institutional, a key arm of the business with $549 billion in assets under management and whose clients include registered investment advisers, banks and hedge funds.

Company-wide, Fidelity had managed assets of $2 trillion as of Feb. 29.

Fidelity Institutional will now be led by Jeffrey Lagarce, 61, previously head of Fidelity Institutional Asset Management. He will report to Johnson and join the Fidelity Operating Committee.

Last year, Fidelity's financial services revenue rose 6.4 percent to $15.88 billion. That top-line growth was better than the 3 percent at rival BlackRock Inc and 5.5 percent at T. Rowe Price Group Inc, their 2015 financial reports show.

Net deposits into Fidelity mutual funds, however, have lagged No. 1 mutual fund company Vanguard Group for several years. In 2015, for example, Vanguard had $230.4 billion in net deposits into its funds. Most of that was in its index funds. By contrast, Fidelity had $8.3 billion in net withdrawals from its actively managed funds, according to Morningstar Inc.

(Editing by Jonathan Oatis and Fiona Ortiz)

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