The Louisiana Deferred Compensation Commission, Baton Rouge, is dropping seven funds as investment options in its $550 million 457 plan, according to a plan official who asked not to be identified. Market-timing allegations are behind the termination of the Strong Growth & Income, INVESCO Dynamics and Maxim INVESCO ADR, MFS Massachusetts Investors Growth and Maxim MFS Small-Cap funds, the official said. The Janus Worldwide fund is being dropped because of performance and personnel changes, and the American Century International Growth is being dropped for performance.
Also, Janus' Small-Cap Value and Twenty funds, along with the RS Emerging Growth and Legg Mason Value Trust funds, were put on watch, the official said. Plan officials are concerned about organizational changes at Janus and Legg Mason as well as market-timing allegations against RS Investments.
The plan will add the following funds: American Funds EuroPacific Growth, Capital World Growth and Income and Washington Mutual; Artisan Midcap; Touchstone Emerging Growth; Oppenheimer Developing Markets; AIM Real Estate; and Ariel Appreciation, the official said.
Officials for INVESCO, Janus and RS did not return calls seeking comment. Chris Doyle, spokesman for American Century, said that international equity performance over the past few years has been more favorable for funds biased toward value rather than growth. Drew Wineland, spokesman for Strong, and John Reilly, spokesman for MFS, declined comment.
The plan has 23 investment options, up from 22. Great-West is the record keeper; Wells Fargo is custodian. Wilshire assisted.