Capital Group, a US fund manager and one of the main beneficiaries of outflows from its rivals in the wake of the US mutual fund scandal, has been fired by two large US pension funds.

A spokesman for the $8bn (€6.4bn) Ohio Fire and Police pension fund confirmed it had fired Capital Guardian in June, amid concerns over investment returns in its international equity portfolio. He said the funds remained with Capital while awaiting an asset allocation review. Ohio fired Capital from an emerging markets brief in April.