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The OCSD said its board on Wednesday unanimously
approved the selection of Chandler Asset Management as its
external investment portfolio manager, dumping Pacific
Investment Management Company (Pimco), which had managed its
investment transactions since 1995.
In February, OCSD staff said it would be "prudent to re-evaluate
the availability of these (investment) services in today's open
market, from both a cost and a performance basis," for the then
$430 million portfolio. The investment portfolio has since grown
to about $480 million.
The decision to replace Pimco is yet another jolt to the bond
giant as it struggles to retain clients following a year of
turmoil at the top.
The management changes began in January with the abrupt
departure of economist Mohamed El-Erian, which prompted many
institutional investors to step up their scrutiny of Pimco.
Roiling markets, Bill Gross surprised markets in September by
leaving the company he helped establish and build into a $2
trillion behemoth. Gross's departure prompted a series of
investor exits that the OCSD has now joined.
The California-based investment firm reported a 5 percent drop
in assets under management for the third quarter. Since Gross's
departure, Pimco has seen heavy outflows, with $23.5 billion
leaving the Pimco Total Return Fund in September alone.
(Reporting by Ankush Sharma in Bangalore)
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