Recode | The Fidelity Investment Board is evaluating the investment recommendations made by a group of top executives who have been asked to lead the company’s 2017 fiscal year, according to a person familiar with the matter.
The board’s investment committee has recommended Fidelity invest in about $50.7 billion in 2017 and 2018, including $5.6 billion in a fund that would be tied to the stock market, the person said.
The recommendations are based on the board’s analysis of Fidelity’s performance during 2017 and early 2018.
The investment committee’s recommendations are expected to be made public this week, the source said.
Fidelity also will make a decision about a 2018 fund in 2019.
The fund would be the first of its kind for Fidelity, which has been exploring how it can make investments that match the performance of its own funds, the investment source said on condition of anonymity because the investment is confidential.
The Fidelity fund is expected to raise about $10 billion.
The announcement comes as Fidelity and its investors face increasing scrutiny over the firm’s management of a $20 billion loss at a fund it was holding called U.S. Large-Cap, a market that has been on a tear for years as investors are betting on stocks that are growing faster than they are shrinking.FTSE 100 indexes closed Friday at a seven-month high, with the Dow Jones Industrial Average topping 21,000 for the first time in nearly six years.
The S&P 500 added more than 1,000 points, or 0.4%, to 2,521.
The Nasdaq Composite gained about 2%.
Fidelity said it would invest in its own ETFs, but said that it would keep its $5 billion in U.K. and European bond funds.
The U.A.E. has $1.5 billion of its $2 billion allocation in the fund, which is tied to U.k. bonds.
Fidelity has also been trying to sell its $3.4 billion U.N. pension fund, the World Health Organization and its $1 billion U