San Diego County Employees Retirement Associations board hired PIMCO and Colchester Partners to manage equal portions of the $4 billion funds 10.3% global fixed-income allocation, said Jerry Woodham, chief investment officer. The board hired Capital Institutional Services as fixed-income transition manager.
Funding came from terminating international fixed-income managers Rogge and Rothschild. The managers were terminated in April because the fund changed its allocation from international to global fixed income and because there were problems with the managers strategies, styles and returns, Mr. Woodham said.
"We were surprised with their decision because our returns have been good, said Jonathan Dow, Rogges director of marketing. "Weve been well over 100 basis points over our benchmark to date, performing well in both the sovereign and aggregate asset classes.
Phone calls to officials at Rothschild were not returned by press time.
Separately, the board hired Ashmore Investment Management to run the funds 4.1% allocation to emerging market debt, Mr. Woodham said. The board also rehired the funds independent auditor, KPMG, for one year.