Suffolk County Public Employees Deferred Compensation Plan, Hauppage, N.Y., dropped 25 investment options managed by firms linked to the market-timing scandal. The mutual funds were run by AIM Investments, Deutsche Asset, INVESCO Funds Group, Janus Capital, MFS Investment, Putnam Investments and Strong Capital, said Alan Schneider, chairman and county personnel director. Trustees of the $440 million 457 plan dropped fund managers accused of "apparent wrongdoing" in connection with the scandal, Mr. Schneider said.
The plan added a total of 20 funds managed by ABN AMRO, AIG SunAmerica, American AAdvantage, American Century, Calvert Asset, Capital Research, Credit Suisse, Davis Advisors, Dreyfus, Franklin Templeton, Oppenheimer and PIMCO, according to a memo sent to plan participants.
"We're disappointed about their decision but hope to have the opportunity to manage investments for them again in the future," said Sinead Martin, Putnam spokeswoman. Drew Wineland, spokesman for Strong, and John Reilly, MFS spokesman, declined to comment. Paul Lederhos, Janus spokesman, could not comment by press time. Officials for INVESCO, AIM, MFS and Deutsche Asset did not return calls.