Nevada Deferred Compensation Fund, Carson City, dropped the Putnam International Capital Opportunities and Janus Worldwide funds as investment options, effective Jan. 1, said Rob Easton, trustee. The $240 million 457 plan will add the American Funds New Perspective and Euro Pacific Growth funds as replacements in the lineup of funds offered through Hartford, one of its bundled providers. The Putnam fund was dropped because of the civil fraud charges against the firm, Mr. Easton said. The Janus fund was dropped because of manager turnover and long-term performance, he said. Sinead Martin, Putnam spokeswoman, did not return a call seeking comment by press time. Janus officials declined to comment.
Separately, Dorsey & Whitney LLP, Minneapolis, is monitoring the Putnam Voyager and Janus Growth & Income funds and might replace both in the next three months, said Daniel Ulland, retirement plans specialist. Officials for the $250 million 401(k) plan are concerned about performance as well as the firms' ties to the mutual fund trading scandal, Mr. Ulland said. Other large-cap growth equity funds would be sought if the two funds were dropped, he said. The plan has 14 investment options.
"The Growth & Income fund has a very strong long-term performance track record, and we are completely confident it will continue to perform well in the long run," said Shelley Peterson, Janus spokeswoman. Laura McNamara, spokeswoman for Putnam, did not comment by press time.