The Ohio Public Employees' Deferred Compensation Plan, Columbus, terminated the PBHG Growth and Putnam Investors funds as investment options in its $4 billion plan, and will bar future contributions to the Janus and Janus Twenty funds by Feb. 25. The plan is recommending the moves because the funds' managers are the subjects of investigations; new deferrals to the PBHG Growth fund were stopped in September 2002 based on a previous review of fund manager Pilgrim Baxter, according to Keith Overly, executive director.
Assets from the PBHG Growth fund will be moved to the Vanguard Capital Opportunity Fund option; Fidelity Magellan will receive Putnam Investors' assets; and Fidelity Growth will receive assets that would have gone to both Janus funds. The Vanguard and Fidelity funds are existing options among the plan's total of 21 choices.
"The vast majority of our shareholders and clients are taking a wait-and-see approach," said Blair Johnson, spokesman for Janus Capital Management. "We are encouraged."
A spokesman for Pilgrim Baxter declined to comment; officials at Putnam were not available for comment by press time.
Ennis Knupp assisted.