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 (as well as J&W Seligman). 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 did say it uncovered inappropriate behavior regarding acceptance of gifts and that proper disciplinary actions have been taken.

Fidelity was notified via Wells Notice that it may be facing charges related to the SEC investigation. The National Association of Securities Dealers is also investigating Fidelity about the same matter.

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