Montana Public Employees' Retirement Administration, Helena, added the Prudential Total Return Bond Fund and Parnassus Core Equity Fund as investment options in its $425 million 457 plan, said Patricia Davis, member services bureau chief.
The Prudential Investment Management fund replaces the PIMCO Total Return Fund, which was removed because of personnel changes at the money manager.
A search was launched in the third quarter of 2014 for a potential replacement manager for the Pacific Investment Management Co. fund, which was “on probation” because of the Sept. 26 resignation of William H. Gross, PIMCO's co-founder and chief investment officer. The 457 plan had about $7.1 million in the PIMCO fund as of June 30.
The Parnassus Investments fund replaces the Calvert Equity Portfolio, managed by Calvert Investments, which was removed for underperformance. Montana PERA had roughly $2 million in the Calvert fund as of June 30.
A Calvert spokeswoman declined to comment on the firm's termination.
Ms. Davis could not be reached for additional information by press time. The plan's investment consultant, Buck Consultants, assisted with the changes.