El Paso County Retirement Plan, Colorado Springs, Colo., terminated PIMCO’s Unconstrained Bond Fund because of the departure of William H. Gross, the firm’s co-founder and chief investment officer, said Tom Pfeifle, executive director, in an e-mail.
Pacific Investment Management Co. ran approximately $16.4 million in the strategy for the $319 million pension fund.
Assets will be transferred to Loomis Sayles & Co., which manages about $16.1 million in core-plus fixed income for the pension fund.
The retirement plan also has approximately $14.6 million in PIMCO’s Total Return Fund; that strategy was put on watch because of Mr. Gross’ departure.
Separately, the pension fund reduced its international equity target to 15% from 20% because of a new 5% target to private equity. The pension fund also reduced its fixed-income target to 15% from 20% and raised its real estate target to 20% from 15%. The other allocations remained the same — 40% domestic equities and 5% hedge fund of funds.
No searches or terminations are planned at this time, Mr. Pfeifle wrote.