News Flash- Mass. Pension Might Fire Fidelity for Performance
February 9, 2004
Fidelity Investments might soon lose $475 million in assets that it runs for the Massachusetts state pension fund, Fidelity confirmed last week.
Massachusetts' deputy CIO told Reuters that performance was the issue. Fidelity, which has been on the state's watch list since last fall, "is in critical condition right now," deputy chief investment officer Stanley Mavromates said.
Fidelity spokesman Vincent Loporchio told Money Management Executive that Fidelity is cooperating with the state in its pursuit of fulfilling its fiduciary duty in running the $32 billion state pension fund. While Mavromates would not reveal performance figures, he did note that Fidelity's high-yield portfolio returned 26.4% in 2003.
Massachusetts jettisoned Putnam Investments last fall, citing concerns over its involvement in the fund trading scandal. Separately, Massachusetts pension fund Executive Director James Hearty left the fund last Friday. Russell Reynolds Associates is looking for his replacement.
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