Austin (Texas) Firefighters' Relief & Retirement Fund is withdrawing its $80 million investment in Pacific Investment Management Co.'s Total Return Fund, said William Stefka, administrator.
Officials at the $790 million pension fund had been looking to reduce the pension fund's holdings in the mutual fund for some time, Mr. Stefka said, and the recent departure of William H. Gross, PIMCO's co-founder and chief investment officer, contributed to the decision to move out of the fund completely.
Mr. Stefka said the pension fund was considering reducing its holdings with PIMCO prior to Mr. Gross' departure because of performance and the size of the investment.
The assets will be transferred to a bond index fund managed by State Street Global Advisors, bringing the total pension plan assets in the index fund to about $83 million.
Investment consultant Meketa Investment Group assisted.
Mark Porterfield, spokesman at PIMCO, could not immediately be reached for a comment.