Massachusetts Pension Reserves Investment Management Board, Boston, voted today to issue an RFP for an international developed market equities manager to handle $1.1 billion. Previous manager Putnam Investments was terminated by the $32 billion system late last year due to the market-timing scandal; the money has been parked in an international equity index fund managed by State Street Global Advisors. Final recommendations on a new manager are expected by June. Details on the RFP were not discussed. State Treasurer Timothy P. Cahill asked if Putnam should be allowed to rebid in light of the steps the company has taken to tighten its oversight, but consultant Wilshire Associates suggested that a "one-year timeout would not be inappropriate."
Separately, Fidelity Management's $471 million active large-cap domestic equity mandate is "in critical condition at this point," said Stanley P. Mavromates, the system's deputy CIO. However, he added that PRIM has "a lot of confidence in the manager," even though the style is not in favor at the moment. Fidelity officials weren't available for comment.