Houghton Mifflin Co., Boston, will drop the Putnam Fund for Growth and Income, International Growth and Income and New Opportunities funds as investment options in its 401(k) plan, said Kate Morris, senior benefits administrator. Plan officials are making the change largely because of performance, Ms. Morris said, but the market-timing charges against the firm "didn't help." Officials now are finalizing their choice of replacement funds, she said. The changes will be made by the end of the first quarter. Mercer Investment Consulting is assisting.
The plan has $188 million in assets, according to the Money Market Directory. The plan's investment options will remain at 15 mutual funds, the Fidelity Freedom funds series and a self-directed brokerage window, Ms. Morris said. Fidelity is the bundled provider.
"We believe that the initiatives which we have recently undertaken to earn back investor trust will be a benefit over the long term," said Sinead Martin, Putnam spokeswoman. "Our top priority is managing the money that has been placed in our care. We are moving forward as a firm with one common goal to deliver consistent, dependable, superior investment performance to our shareholders over time."