Massachusetts pension fund trustees reportedly decided Thursday to pull their funds from Putnam Investments, in light of the fund trading investigation. State Treasurer Tim Cahill told Reuters: "[Putnam] allowed market timing to happen and possibly harm our retirees. We wont stand for that."
Meanwhile, the Rhode Island State Investment Commission has also joined the wave of public pension funds to raise concern over the troubles of Putnam Investments, sister publication Investment Management Weekly reports. The commission is scheduled to meet Friday to discuss the course of action it should take against the manager, which oversees a $642 million core international equity account for the $5.8 billion Rhode Island Employees Retirement System.
Stephanie Sheehan, spokeswoman for the plan, said that the firm was not on watch at press time.
"At this meeting, the committee will decide what action it will take against Putnam," Sheehan said, adding that the commissions options included watch-listing or terminating the firm. The outcome of the meeting could not be determined at press time.
Since the news of the firms civil fraud chargesstemming from allegations of mutual fund market-timingseveral of the firms institutional clients have taken action.
The Indiana Teachers Retirement System, the Connecticut Retirement System, and the Florida State Board of Retirement Administration have all reportedly placed the money manager on watch.