Fidelity's home state of Massachusetts may end Fidelity's stock mandate in its state pension fund. The reason: unhappiness with Fidelity performance and concerns about personnel changes,
Fidelity oversees some $360 million in domestic stocks for the state pension fund.
The fundís investment committee is set to recommend the termination of the contract with Fidelity today, the report said, quoting Massachusetts Treasurer Timothy Cahill, who chairs the board that runs the $40 billion pension.
Fidelity had the money withdrawn on December 21 after fund manager Steve Kaye took a sabbatical, the report added, citing a Fidelity spokesperson.
Kaye, a 12-year Fidelity veteran, has overseen large-company blend accounts, among them the $31.4 billion Fidelity Growth & Income Fund. He is still on leave.
The mutual fund posted an average return of 8.8 percent annually in the three years ended October 31, falling behind the Standard & Poorís 500 Index by 4 percentage points.
Fidelity also oversees about $350 million in high-yield bonds for the Massachusetts pension fund.
Stay ahead of the news ... Sign up for our email alerts now