Fort Worth (Texas) Employees' Retirement Fund liquidated its $68 million investment in the PIMCO All Asset Fund, said spokeswoman Tracie Middleton.
The $2.3 billion pension fund's board voted Aug. 28 to liquidate its investment because the fund did not "align well with the desired characteristics of our diversification allocation," Ms. Middleton said.
The Fort Worth fund held the investment within its diversification asset class, which consists of hedge funds of funds and global tactical asset allocation; the All Asset Fund was the sole investment in the GTAA sector. As of July 31, the diversification asset class had an actual allocation of 10% of total pension assets.
Redeemed assets will be evenly distributed among existing fixed-income investments with Aberdeen Standard Investments, Garcia Hamilton & Associates and PIMCO, increasing those allocations to $169 million, $102 million and $169 million, respectively.
Fixed-income investments fall within the pension fund's capital preservation asset class, which had an actual allocation of 15.6% as of July 31.