San Diego City Employees' Retirement System modified its investment guidelines for PIMCO, giving the manager discretion to increase its non-domestic bond investments to 40% of the $360 million core-plus bond portfolio it manages for the $3.6 billion system, said Doug McCalla, CIO. PIMCO had worked under a 30% limit.
The retirement board also amended its watchlist process. System officials will now rely only on a manager's three-year and five-year returns when deciding whether to put it on watch, rather than the one-year returns they had used, Mr. McCalla said. Too many managers whose performance had been temporarily out of favor were being put on watch for a year or more after their performance had recovered, he explained.
