Contra Costa County Employees Retirement System, Concord, Calif., hired PIMCO and Western Asset to run $310 million each in enhanced core fixed income, said Marilyn Leedom, assistant retirement administrator. The $2.7 billion pension fund terminated Zurich Scudder, which ran $315 million in core fixed income, and Barclays Global Investors, which handled $330 million in an index fund tracking the Lehman Aggregate, Ms. Leedom said. It has not been decided where any residual assets will be invested.
The board made the move because of a change in the systems fixed-income strategy and concerns over Zurich Scudders recent acquisition by Deutsche Bank, Ms. Leedom said. Missy DeAngelis, spokeswoman for Deutsche, confirmed the termination but said the firm had no comment.
Milliman was the consultant.