Hawaii Employees' Retirement System, Honolulu, is conducting "further due diligence" of PIMCO "to get a complete understanding of what's going on" after New Jersey regulators filed a complaint against the money manager on Feb. 15 over alleged market-timing arrangements by the firm, said T. Kimo Blaisdell, CIO. PIMCO runs a combined $920 million in domestic and international bonds for the $8.4 billion system.
Separately, New York City Deferred Compensation Plan is reviewing PIMCO in light of the allegation involving the firm, said Dean Weltman, plan compliance officer. Milliman USA, one of the $5 billion plan's consultants, will make a recommendation at a March 12 board meeting on whether the fund should continue its relationship with PIMCO, Mr. Weltman said. PIMCO manages $233 million in a synthetic GIC and $94 million in a bond fund for the plan.
Mark Porterfield, PIMCO spokesman, said the firm does not comment on matters pertaining to its clients.