November 5, 2003 -- Posted at 7:17 AM CDT
LITTLE ROCK, AR --The board of the Arkansas Teacher Retirement System is dumping a troubled mutual fund company that has managed more than 500 million dollars in investments for the seven billion dollar system.
Trustees of the state's largest retirement system followed the lead of several big-state systems that have pulled money invested with Putnam Investments. Putnam faces federal allegations of defrauding investors.
The Arkansas system's consultants and staff recommended the move.
The board said it would move the international investments to a custodial investment firm -- State Street Corporation of Boston -- until it hires a new investment firm, most likely in December.