CalPERS is reviewing its relationship with PIMCO, which manages $208 million in high-yield corporate bonds for the Sacramento, Calif.-based system, in light of market-timing allegations against the firm, said Brad Pacheco, spokesman. Staff at $167 billion California Public Employees' Retirement System will review the firm and report to the board in April.
Also, Kansas Public Employees Retirement System, Topeka, on March 19 will hear a report from staff about PIMCO, which runs $412 million in domestic core bonds for the $9.8 billion system, Rob Woodard, CIO, said in a written statement. "The report will include information about the recent allegations involving PIMCO's mutual funds and related entities," Mr. Woodard said. "To date, no action has been taken or recommended" regarding what to do about the portfolio, he said.
Mark Porterfield, PIMCO spokesman, said the company had no comment.
Separately, consultant Angeles Investment Advisors is not recommending that its clients terminate PIMCO or put the firm on watch at this time, said Michael Rosen, principal and CIO. He said Angeles conducted due diligence recently in light of market-timing allegations against PIMCO and concluded that as of now, conditions at the firm did not warrant drastic action by the firm's consulting clients.