San Joaquin County Employees' Retirement Association, Stockton, Calif., has placed Pacific Investment Management Co. on watch for an emerging markets equity portfolio.
The board placed the manager on watch at its March 12 meeting "as a result of the ongoing claims regarding PIMCO," said Johanna Shick, CEO of the $3.5 billion pension fund, in an email. Meketa Investment Group, the pension fund's investment consultant, advised on the decision.
A lawsuit was filed against PIMCO by five current and former female employees in November alleging gender and pay discrimination, sexual harassment, and other employment issues. PIMCO has categorically denied the claims alleged in the suit.
Ms. Shick said that a time frame for the watch status has not been established, but the board will re-evaluate the situation every quarter. PIMCO manages about $73 million in the strategy on behalf of the pension fund.
Agnes Crane, a spokeswoman for PIMCO, declined to comment on SJCERA's decision.