Fidelity has 'real need' to recruit more women, Johnson says

Female clients prefer female advisers, the fund giant has found
SEP 27, 2017

For people well-schooled in the relationship between supply and demand, here's one Fidelity Investments may not have seen coming: The demand for female financial advisers outstrips the supply. Women customers often ask to work with female advisers, Abby Johnson, chief executive officer of the fund giant said in an interview with Carlyle Group LP's David Rubenstein. The problem, for the firm, is that they don't have enough of them. "We have a real need in our business right now to recruit more women," Johnson, 55, said. When women come into Fidelity branches, "very often, the first thing they say when we're trying to get them paired up with a rep is, 'I'd like to work with a woman,' " she said. There may be another reason for this: Women don't feel all that confident in their ability to manage their finances. In studying how female customers differ than men, the Boston-based firm has found women describe themselves as "beginners, even though they actually really know more than they give themselves credit for," she said on The David Rubenstein Show: Peer-to-Peer Conversations. Asset management can be a great career for women, because it allows them to structure their time and ultimately build a personal franchise, said Johnson, who has been CEO since 2014. She took full control of the fund giant from her father, Edward "Ned" Johnson, in November 2016, started with the company in 1988 and is now the third generation to run Fidelity. Johnson said her father never pressured her to join the family business. Ned Johnson's uncle was pushed to work in a family-owned dry goods store and hated it. Johnson said that left a strong impression on her father, who let her to find her own way into Fidelity.

Latest News

Cerulli: Advisors struggle to turn 401(k) savers into wealth clients
Cerulli: Advisors struggle to turn 401(k) savers into wealth clients

Just over 10% of advisors' wealth clients come from defined contribution plans, as capacity, data and technology gaps block the bridge to wealth

Alto to buy Forge Trust from Schwab in self-directed IRA push
Alto to buy Forge Trust from Schwab in self-directed IRA push

Deal creates a $20B-plus custody platform for private market investing in IRAs, months after Schwab closed its Forge Global purchase

Wall Street bonanza! The Street on track to hit a record $90 billion in profits: Report
Wall Street bonanza! The Street on track to hit a record $90 billion in profits: Report

Despite the good times, advisors should tread carefully, said one veteran industry executive.

Most workers have retirement plans but no retirement strategy
Most workers have retirement plans but no retirement strategy

Gallagher data reveals a huge gap in financial confidence between employees who work with an advisor and those who don't.

Small employers are more open to pooled retirement plans
Small employers are more open to pooled retirement plans

PEP assets hit $34bn at year-end 2025 as advisors navigate mandate deadlines and a 48% employer interest rate.

SPONSORED Built on insurance experience to deliver on long-term promises

Knighthead Life entered the market with a competitive MYGA. A strong launch earned advisor confidence and paved the way for FIAs.

SPONSORED In the Age of AI, Trust Becomes the Advisor's Greatest Asset

As AI makes financial information more accessible than ever, Lana Hock explains why human judgment, trust, and empathy remain the qualities clients value most in a financial advisor