Florida State Board of Administration, Tallahassee, is pulling much of the $3 billion managed by Pacific Investment Management Co. in three portfolios, Dennis D. MacKee, director or communications, said in an e-mailed response to questions.
FSBA is terminating PIMCO's $535.9 million Total Return Fund and $493.9 million Inflation Response Multi-Asset Strategy Fund.
Both were used by the Florida Retirement System's $8.5 billion 401(a) plan.
The assets will be moved to two existing BlackRock funds, a U.S. debt index fund and a Treasury inflation-protected securities funds. The amounts in those funds weren't available. FSBA expects the transitions to be completed by mid-October.
In addition, FSBA will “significantly reduce” a $1.9 billion PIMCO core fixed-income portfolio, a separate account used by the FRS' $145 billion defined benefit pension plan.
The size of the reduction hasn't been determined.
The proceeds from the core fixed-income portfolio will be reallocated to five existing managers of the FRS pension plan: Amundi Smith-Breeden; BlackRock; Taplin, Canida & Habacht; Neuberger Berman; and Prudential.
The existing amounts the five managers run now weren't available.
The FSBA expects to complete the transition of the core portfolio proceeds sometime later this fall.
Mr. MacKee didn't give a reason for the changes — other than noting the FSBA has had PIMCO on watch since the fourth quarter of last year — or comment about William H. Gross leaving as PIMCO chief investment officer on Sept. 26 to join Janus Capital Management as portfolio manager. Other details were unavailable.
FSBA oversees $174.7 billion in total assets, including both FRS plans' assets.