State pension fund fires 2 managers

BOSTON (AP) - Two managers of the Massachusetts state pension fund have been fired for poor performances, including one who lost $12 million investing with accused Ponzi scheme mastermind Bernard Madoff.

The Boston Globe reports Wednesday that Austin Capital Management, which managed $170 million in state retirement funds, was fired after it lost $40 million, including the money invested with Madoff and $28 million from market declines.

The state withdrew its remaining $130 million from Austin.

Pension officials also fired Ivy Asset Management, which managed $430 million of state money, citing poor investment returns and turnover among executives.
The state fund, now worth about $38 billion, pays for the retirement benefits of many public employees.