California’s Sonoma Drops a Pimco Fund After Gross’s ExitAlison Vekshin
The Sonoma County Employees’ Retirement Association has decided to drop a Pacific Investment Management Co. unconstrained bond strategy, a $65 million portfolio, citing last month’s departure of co-founder Bill Gross.
The $2.3 billion fund will keep its $85 million portfolio in a Pimco total return strategy, placing it on a watch, Jim Failor, the association’s senior investment officer, said today in a telephone interview.
“Because of his departure and the adjustment to the teams without his presence, we had to re-evaluate the teams, and in the case of the unconstrained bond strategy the three-person leadership team had not been working together closely for a long period of time,” Failor said.
Alabama’s Treasury liquidated its Pimco Total Return Fund holdings in the state’s $1.23 billion CollegeCounts 529 plan as of Oct. 1, citing departures of senior investment personnel.