Fidelity Investments might soon lose $475 million in assets that it runs for the Massachusetts state pension fund, Fidelity confirmed Tuesday.
Massachusetts deputy CIO told Reuters that performance was the issue. Fidelity, which has been on the states watch list since last fall "is in critical condition right now," Stanley Mavromates told Reuters.
Fidelity spokesman Vincent Loporchio told Money Management Executive that Fidelity is cooperating with the state in their pursuit of fulfilling their fiduciary duty in running the $32 billion state pension fund.
While Mavromates would not reveal performance figures, he did note that Fidelitys high-yield portfolio returned 26.4% in 2003.
Massachusetts jettisoned Putnam Investments last fall, citing concerns over its involvement in the fund trading scandal.
The staff of Money Management Executive ("MME") has prepared these capsule summaries based on reports published by the news sources to which they are attributed. Those news sources are not associated with MME, and have not prepared, sponsored, endorsed, or approved these summaries.