Austin (Texas) Firefighters' Relief & Retirement Fund hired Loomis Sayles to manage $40 million in active core-plus fixed income, said William Stefka, administrator.
Meketa Investment Group assisted with the shortlist search. The other finalists were Baird Asset Management and DoubleLine Capital.
In October, the $800 million pension fund announced it was withdrawing its $80 million investment in PIMCO's Total Return Fund and transferring its assets 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. State Street will continue to manage the remaining assets redeemed from Pacific Investment Management Co.
At the time of PIMCO's termination, Mr. Stefka said he had been looking to reduce the pension fund's holdings in the mutual fund for some time because of the fund's performance and the size of the pension fund's investment. The September departure of William H. Gross, PIMCO's co-founder and chief investment officer, contributed to the decision to move out of the fund completely, he added.
Mark Porterfield, spokesman at PIMCO, could not immediately be reached for a comment.