Washington Investment Board votes to launch immediate search for International Fund Manager to replace Putnam (November 20, 2003) Olympia - The Washington State Investment Board (WSIB) directed staff to conduct an immediate search to replace Putnam Investments as the WSIB's core international equity fund manager. The expedited search could be completed as early as January, 2004. Putnam currently manages a $585 million international equity portfolio for the WSIB. The company was placed on WSIB’s watchlist in October because of concerns about allegations against Putnam and two former managers for improper mutual fund trading practices. Washington’s assets with Putnam are in a separate account and are not invested in any mutual funds. Based on daily communications with Putnam, WSIB staff is satisfied the money is being prudently managed at the present time. In deliberating its decision the Board directed staff to proceed with an expedited search for a developed markets international core manager. The decision enables the WSIB to leave the money where it is until a new manager is hired and to avoid making more than one transition payment to move the assets which saves retirement fund members and beneficiaries a considerable amount of money. "This is a reasonable and prudent approach," said WSIB Executive Director Joe Dear. "It sends a clear message that the Board has lost confidence in Putnam and establishes WSIB’s expectation about what is unacceptable conduct but not in a haphazard fashion." The WSIB's Public Equity unit monitors and evaluates these managers in areas of performance, philosophy and process, organization, compliance, and client service. The Board may terminate a manager on five-business days' notice. Earlier this year, the WSIB approved a plan to restructure the international equity program shifting to a higher percent of active management to capture investment opportunities that could result in better returns as the economy improves. As part of the restructuring plan, the WSIB is preparing to begin its search in early December for new contract bids from international equity active investment managers. That search, with the exception of the core manager replacement contract search, will move forward as planned and is expected to be completed no later than April of next year. Putnam has been under contract with the WSIB since June, 1999. All of WSIB’s current international fund manager contracts, including Putnam’s, are scheduled to expire in June, 2004.