Adams County Retirement Plan, Brighton, Colo., terminated PIMCO’s Unconstrained Bond Fund, said Pamela Mathisen, executive director of the $235 million pension fund, in an e-mail.
Ms. Mathisen said PIMCO’s termination was not related to the September departure of its chief investment officer, William H. Gross; it was related to the short period of time that Mohsen Fahmi, the strategy’s portfolio manager, has had with the firm. Mr. Fahmi was named a managing director and generalist portfolio manager at PIMCO in August.
Pacific Investment Management Co. ran about $13 million in unconstrained fixed income for the pension fund. PIMCO also runs about $12 million in its Total Return Fund for the pension fund. That strategy will be retained, Ms. Mathisen wrote.
Funds from PIMCO’s Unconstrained Bond Fund will be reallocated to the other current domestic fixed-income managers. Ms. Mathisen wrote. She did not provide additional information. As of Sept. 30, Denver Investments and Babson Capital ran about $14.5 million and $9.9 million, respectively, in domestic fixed income for the pension fund, according to the fund’s website.
A spokesman for PIMCO could not be reached for a comment by press time.
Separately, the board terminated T. Rowe Price from a $17 million domestic equity portfolio due to “running five-year underperformance,” Ms. Mathisen wrote.
Funds will be reallocated to current domestic equity managers, Ms. Mathisen wrote. She did not provide additional information. As of Sept. 30, State Street Global Advisors, Vanguard Group, Tortoise Capital Advisors and Pyramis Global Advisors ran about $24.5 million, $16.9 million, $15.7 million and $8.7 million, respectively, in domestic equity, according to the fund’s website.
Bill Benintende, spokesman for T. Rowe Price, declined to comment.