Top executives from Putnam Investments of Boston have recently concluded an extensive round of negotiations in Chile, holding successful talks with the management of eight pension fund managers in the Chilean pension system. Their visit to Chile was motivated by the recent approval of Putnam funds by the Risk Rating Commission (CCR), a state sponsored rating agency.
John Talanian, corporate director of Putnam's international business unit, was pleasantly surprised by legislation going through Chile's congress, which will raise the upper limit on international investments from foreign pension fund managers from 20 percent to 35 percent.
"Chile has implemented a modern pension system, which has been copied in other countries, and it seems the most suitable place for us to have a presence," he said.
However, Carlos Pampliega, Putnam's vice-president and regional director in Chile, argued that "it is a mistake for (Chilean pension fund managers) to have an investment so heavily concentrated
in Chile."
Putnam manages $400 billion (US) in third-party assets amounting, with 13 million individual investors, and 2,100 institutional clients distributed over 122 countries worldwide.
