Wamco Loses $1 Billion From Calstrs in Major Pension Redemption
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The California State Teachers’ Retirement System, the second-biggest US pension, is pulling its roughly $1 billion investment from Western Asset Management Co. as a reckoning continues over criminal fraud charges against the bond manager’s star trader Ken Leech.
The pension, which managed $353 billion as of Jan. 31, is in the process of withdrawing all of its money from Wamco following its investment team’s analysis of risks and returns in the fixed-income portfolio, Calstrs said in an emailed statement.