Two large pension funds have put Fidelity Investments on watch for a total of $433 million, Financial News reports.

Citing performance issues, the $10 billion Public School Teachers' Pension and Retirement Fund of Chicago has put Fidelity on notice for $321 million of its assets. Meanwhile, due to its unhappiness over the gift-giving regulatory probe at Fidelity, the $122 million San Diego City Employees' Retirement System has put its $122 million account at Fidelity up for review.

The Securities and Exchange Commission's investigation aims to see if Fidelity accepted gifts from Wall Street firms in exchange for its directed-brokerage business. After an internal investigation. Fidelity said it uncovered inappropriate behavior regarding acceptance of gifts and that proper disciplinary actions have been taken.

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