CalSTRS Cuts Ties With Putnam Investments

The California State Teachers’ Retirement System, the nation’s third-largest pension fund, said Thursday that it had ended its relationship with Putnam Investments, the latest in a series of investors to fire the company.

CalSTRS has been pulling its $312 million out of the Boston-based mutual fund company for the last few weeks, CalSTRS spokeswoman Sherry Reser said.

“After very careful scrutiny and investigation by our investment staff and our chief investment officer,” the pension fund still had questions and concerns about Putnam and its operations, Reser said.

Putnam, the nation’s fifth-largest fund company, was accused in October by the Securities and Exchange Commission and the state of Massachusetts of allowing improper trades. The SEC reached a partial settlement with the company last month, but no agreement has been reached with Massachusetts regulators.

Since the scandal became public, Putnam has lost more than $32 billion in assets, including a $1.2-billion withdrawal by the California Public Employees’ Retirement System, the nation’s largest pension fund.

CalSTRS’ investment with Putnam was a small part of its total portfolio of $103 billion, and its accounts were not affected by the company’s infractions, Reser said. Still, the pension fund’s leadership “felt we would be better served taking our money elsewhere,” she said.