The Massachusetts state pension fund treasurer Tim Cahill explained at a press meeting this week why his fund became the first to fire Putnam Investments last year after the Boston-based manager was charged with fraud in a mutual fund trading scandal.
“We feel they didn’t live up to their fiduciary responsibility and that is why we fired them,” Cahill said. Putnam managed more than $1.7 billion in international and domestic stocks for the fund. Last week the fund hired two other managers to invest the money that was taken away from Putnam.
Cahill also praised the reforms Putnam has made, and said the company may at some point get another chance to manage money for the fund.