The Indiana State Teachers' Retirement Fund, Indianapolis, terminated Putnam, which managed $60 million in active domestic midcap growth equities, said Robert D. Newland, CIO. The $3.3 billion fund moved the money to an existing Franklin Portfolio Associates active domestic midcap core portfolio, increasing it to $160 million, he said. Mr. Newland said Putnam was terminated for performance, high personnel turnover, and the market-timing scandal. Callan assisted.
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 were unavailable by press time for comment.