The New York State Deferred Compensation Plan, Albany, is freezing its $37.5 million in the Putnam International Equity fund investment option, effective Jan. 5, said Julian Regan, executive director. Officials at the $5.9 billion plan made the decision after Putnam came under fire in lawsuits alleging it was market timing. Mr. Regan said there are no plans to replace the Putnam fund, because the plan already offers participants three other international equity options.
"We recognize that some clients have chosen to move their investments and we respect their decision," said Putnam spokeswoman Sinead Martin. " At the same time, many others have expressed their trust and confidence in Putnam, its new management team and our investment strategies, and we are grateful for their support."