Kentucky Public Employees' Deferred Compensation Authority, Frankfort, is adding the MetWest Total Return Bond Fund to the lineup of its 457(b) and 401(k) plans, which have $2.6 billion in assets combined, said Bob Brown, executive director.
The bond fund, managed by Metropolitan West Asset Management will replace the PIMCO Total Return Fund, which is being removed from the plan lineups in mid-July.
“A pattern of significantly elevated levels of investor outflows at the fund level and the impact of this on prospective performance,” are the primary reasons for the fund's removal, Mr. Brown said.
The Pacific Investment Management Co. fund was put on watch for personnel changes and performance last year, Mr. Brown said.
About $32.9 million is invested in the fund.
A PIMCO spokesman declined to comment.
Investment consultant Mercer assisted.