California Savings Plus Program, Sacramento, will review its investment options over the next year and a half, said Alan Staton, manager of outreach and education for the $4.7 billion defined contribution fund. Most manager contracts expire at the end of 2005; RFPs will be issued, but a timetable for issuance has not been set.
Some of the program's managers have been named in the mutual fund scandal, which "could be a factor" in future selections, Mr. Staton said. Those managers, all with contracts expiring in December 2005, are: Federated Investors, which manages $184.2 million for the fund: Franklin Resources, $90.6 million; Janus, $29.8 million; MFS, $4.3 million; and Putnam Investments, $1 million. Also, AllianceBernstein manages $157.2 million as a subadviser to the Vanguard U.S. Growth Fund, a core option.
Federated runs a core option for the fund, while Janus and Franklin both run core options and offer mutual funds to plan participants through a Hartford variable annuity program. MFS runs two funds through the Hartford-managed program. Putnam runs a fund through a frozen variable annuity offered by American General.