Newton (Mass.) Retirement System is taking a "wait-and-see" attitude on what to do about Putnam Investments, which runs $20 million in active international core equities, said Rafiq Ghazarian of the plan's consultant, Segal Advisors. The $204 million plan has not terminated Putnam, but has issued an RFP for the portfolio, prompted by staff turnover at Putnam after lawsuits were filed against the firm, Mr. Ghazarian said. Putnam can rebid, he said.
Separately, St. Olaf College, Northfield, Minn., terminated Putnam, which handled $22 million in active international equity for the $161 million endowment, said Mark R. Gelle, assistant treasurer. The termination was based on recent accusations of late trading against Putnam, Mr. Gelle said. "We are disappointed about the decision, but hope that we will have the opportunity to manage investments for them again in the future," Laura McNamara, Putnam spokeswoman, said in a statement.
The endowment's investment subcommittee will review a shortlist of active international equity managers to select a replacement for Putnam at a Nov. 13 meeting, Mr. Gelle said.