Washington State Investment Board, Olympia, placed Putnam Investments on watch amid the fraud complaints filed against the firm, said Joseph Dear, the $52 billion pension fund's executive director. Board officials will meet with Putnam representatives on Friday to discuss charges by federal and Massachusetts state regulators that the company allowed its own portfolio managers and select 401(k) plan participants to conduct market-timing trades of Putnam's international funds. Mr. Dear said there may be "consequences" if it turns out that abuses of investors occurred.
Putnam officials did not respond to questions by press time.
Putnam is one of the public pension fund's six active international managers, with more than $550 million in assets under management, Mr. Dear said.