Anchorage (Alaska) Police and Fire Retirement System on Thursday will review Putnam Investments, which runs $24 million in a commingled international equity fund for the $350 million plan, said Charles Laird, director. Trustees are concerned about "ethical issues" surrounding the civil fraud charges against the firm, Mr. Laird said, as well as the company's financial health after its termination by many large clients. Callan Associates will assist.
Separately, Shreveport (La.) Employees' Retirement System put international equity manager Putnam on watch because of the civil fraud charges against the firm, said Don Norris, pension manager. Trustees are "less concerned" about the charges because Putnam runs $10 million in an active international equity separate account for the $185 million plan and not a mutual fund, Mr. Norris said. Officials don't want to immediately "jump ship" because of the market-timing allegations against other firms, he said, and will review the situation at their next meeting in January. Merrill Lynch will assist.
Putnam officials did not return a call by press time seeking comment.