NEW YORK —Big institutional investors are taking a let's-learn-more attitude about Alliance Capital Management LP, instead of rushing for the exits as they did with Putnam Investments.
For now, most investors are monitoring Alliance more closely, as state and federal regulators continue their investigation of alleged improper trading practices, and discussing the situation with Alliance executives.
Among Alliance's institutional clients:
-- The $53 billion Public Employees' Retirement System of Ohio, Columbus, which has $1.76 billion invested with Alliance, has put the firm on its watch list, said spokesman Christopher Federer.
-- The $155 billion California Public Employees' Retirement System, Sacramento, which has $1.29 billion in investments with Alliance, has stepped up its monitoring, said Brad Pacheco, CalPERS spokesman, as has the $109 billion New York State Common Retirement Fund, Albany, with $5.5 billion managed by Alliance.
-- The $40 billion Oregon Public Employees' Retirement Fund, Salem, which has $3.58 billion with Alliance in four strategies, put the firm on its watch list because of the scandals. Previously it had just had AllianceBernstein's $680 million large-cap growth portfolio on watch for a year, because of changes in the portfolio team following publicity over the heavy investment in Enron stock.
-- The $74 billion New York City Retirement Systems is reviewing its $320 million in Alliance investments.
-- The $15 billion Public Employees Retirement System of Nevada, Carson City, with $3.3 billion at Alliance, has heightened its monitoring, said Laura Wallace, chief investment officer. "We've been discussing the issues with them and they have been very communicative about what's going on," she said.