Michael Travaglini, a Putnam Investments executive who has also served as head of Bostons retirement fund operation, has been selected as the new director of Massachussetts state pension fund, a $32 billion fund which has been looking for a new executive director since last summer, Reuters reports.
Travaglini replaces James Hearty, who was forced out of the job last summer but remained on until early this month. The funds performance was not an issue in Heartys departure, according to the states treasury office, considering it produced a return of 26.42% in 2003.
The ironic twist to the story is that Massachusetts Pension Reserves Investment Board unanimously voted in Travaglini despite the fact that the state pension fund was one of the first to sever ties with Putnam in late 2003 when the firm became entangled in improper trade charges and settlements.
Before selecting Travaglini, the pension fund was said to have searched extensively for a replacement, using search firm Russell Reynolds to select 130 potential candidates, all of whom were interviewed.
Travaglini will earn $225,000 in his new position, a high amount for a state government official in Massachusetts.
Meanwhile, Massachusetts Financial Services has lost out on management of the $646 million Illinois Teachers Retirement System, Reuters reports. The pension fund fired MFS due to performance and the ongoing SEC investigation.
The staff of Money Management Executive ("MME") has prepared these capsule summaries based on reports published by the news sources to which they are attributed. Those news sources are not associated with MME, and have not prepared, sponsored, endorsed, or approved these summaries.