Putnam Investments is on the bubble as a manager for the Massachusetts pension fund, reports Bloomberg News. The Boston-based investment managers is reportedly being watched by the plan board because of sub par investment performance and staff turnover.

The plan board also delayed renewing its ten-year-old investment consulting contract with Los Angeles-based Wilshire Consultants. That delay stems from an article in Money Magazine that Wilshire Associates made in and out trades in mutual funds for its own accounts. The consulting firm says it did nothing wrong. There are no reports that regulators are investigating those trades.

In the case of Putnam, the $29 billion plan's board seems to considering taking action for more prosaic reasons.

"We want to watch them closely in the next three to six months. We'd like to see an up-trend in their performance," said Stanley Mavromates Jr., deputy chief investment officer, at a meeting of the pension fund's board Wednesday.

Typically, sponsors will review investment manager mandates when their are significant changes in performance, people or process at the manager.  

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