The fund seeks to "provide current income that exceeds the average yield on global stocks," and consists of dividend-paying equities and select fixed-income securities, according to PIMCO's website. PIMCO disclosed the removal of Research Affiliates as subadviser of the equity portion of the fund in an Aug. 30 filing with the SEC.
Effective Nov. 1, the equity portion of the fund will be internally managed. A PIMCO spokeswoman said in an emailed statement that the firm in recent years has made significant investments in its multiasset and quantitative businesses, as well as other equity trading capabilities.
"As part of these efforts, and in light of the strategic importance of PIMCO's overall income franchise, we developed a systematic equity income strategy designed specifically for the PIMCO Dividend and Income Fund, that we believe can deliver improved outcomes for shareholders," she said.
The fixed-income portion of the PIMCO Dividend and Income Fund was already internally managed.
Research Affiliates will continue to serve as subadviser to multiple other PIMCO funds. The SEC filing notes "PIMCO's relationship with Research Affiliates remains strong, and Research Affiliates continues in its current roles with respect to the services being provided to other PIMCO mutual funds, ETFs and investment strategies."