Orange County Employees Retirement System, Santa Ana, Calif., hired Dodge & Cox to manage about $200 million in active core fixed income, pending legal due diligence and successful contract negotiations, said an announcement on the $12.3 billion pension fund's website.
Funding will come from PIMCO, which manages about $300 million in its Total Return Fund for the pension plan. Pacific Investment Management Co.'s new allocation size will be roughly $100 million.
An exploratory search for a core-plus domestic fixed-income manager was launched in mid-2014, the same time PIMCO was placed on watch. The reason for PIMCO's status change in 2014 could not be learned by press time.
The pension fund has about $950 million total invested with PIMCO across its Unconstrained Bond Fund, All Asset All Authority Fund, Distressed Senior Credit Opportunities Fund, Global Credit Opportunity Fund, Commodities Fund and Total Return Fund.
Aside from the Total Return allocation, PIMCO's other allocations remain unchanged.
The above changes were approved by the investment committee at its meeting on Wednesday.
Robert Kinsler, communications manager for the pension fund, was not immediately available for additional information.
