Institutional investors are hinting at forgiving Putnam Investments for allowing itself to become a key player in the far-reaching mutual fund scandals that, according to regulators, siphoned off profits from long-term investors, Reuters reports.

The Massachusetts state pension fund voted Tuesday on a proposal rehire Putnam as a small-cap investment manager for its $32 billion portfolio. The fund, which boasts one of the best track records among its U.S. pension fund peers, is conducting separate searches for a small-cap investment specialist and financial services provider to invest in hedge funds. The group is also looking to fire an investment manager, according to Reuters.

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