Seattle City Employees' Retirement System placed Pacific Investment Management Co. on watch, recently released board meeting minutes said.
At its Nov. 20 meeting, the $2.3 billion pension fund's board of trustees voted to place all portfolios that PIMCO manages for the pension fund on watch, due to the resignation of William H. Gross, PIMCO's co-founder and chief investment officer, on Sept. 26.
Mr. Gross's departure for Janus Capital Group instigated the pension fund's decision to expand the scope of the firm's watch status. The manager's $107 million international equity portfolio has been on watch status since the January exit of PIMCO's CEO and co-CIO Mohamed El-Erian.
The new watch status now includes PIMCO's $130 million active domestic core fixed-income portfolio.
Also at the Nov. 20 board meeting, the board approved the extension of PIMCO's contract until Jan. 1, 2017. However, the board can cancel the contract at anytime.
Investment consultant NEPC assisted.
Jason Malinowski, chief investment officer, did not immediately reply to a request for further information.
