PIMCO lost a subadvisory relationship as manager of a $1.3 billion mortgage-backed securities fund after the sponsor, Columbia Management, opted to replace the firm with TCW Group.
The fund, which had been known as the PIMCO Mortgage-Backed Securities Fund, will now become the TCW Core Plus Bond Fund, TCW spokesman Doug Morris said in an interview.
An informed source with wide knowledge of the switch said Columbia's decision had nothing to do with the current turmoil at Pacific Investment Management Co. following the January resignation of CEO Mohamed El-Erian. The source said Columbia had decided to make the switch of managers before Mr. El-Erian's resignation.
The source said the switch was part of a realignment of the fund's investment approach from investing in mortgage-backed securities to a larger core-plus investment mandate.
The mutual fund is open only to annuity policyholders who are clients of Ameriprise Financial and its RiverSource subsidiary.
Carlos Melville, a spokesman for Columbia Management, said he would have no comment. Mark Porterfield, a spokesman for PIMCO, did not respond to requests for comment.
