Kentucky Deferred Compensation System, Frankfort, will issue separate RFPs in late October for record-keeping, investment consulting and marketing/communications services for its 401(k) and 457 plans, with a combined $1 billion in assets, said Robert Brown, executive director. The contract with Nationwide Retirement Solutions, which handled those duties for the two plans, expires June 30, 2005; Nationwide can rebid. The system will probably finalize new contracts by February, Mr. Brown said. Details of the RFPs have not been finalized.
Separately, the plans dropped the INVESCO Small Company Growth, Janus Worldwide, Putnam International Equity and Fidelity Magellan funds as investment options, Mr. Brown said. The INVESCO, Janus and Fidelity funds were dropped for performance; the Putnam fund was dropped because of market-timing allegations against the firm. Mr. Brown said the funds will not be replaced.
Fidelity spokeswoman Sophie Launay said the Magellan fund's performance beat 65% of its large-cap core fund peers for the 10-year period ended June 30. Blair Johnson, Janus spokesman, said Janus is "always sorry to lose any client, but we are working hard to regain investors' confidence." Bill Hensel, spokesman for INVESCO parent AMVESCAP, declined to comment; and Sinead Martin, Putnam spokeswoman, said Putnam continues "to move forward as a firm with a focus on providing consistent, dependable superior investment performance over time."
The plans, which mirror each other, offer 32 investment options each.