Arkansas Teacher’s Fund Fires PIMCO, Withdraws $475 Million From Firm

The Arkansas Teacher Retirement System is pulling its money out of PIMCO, the fund announced today. Its investments with PIMCO had totaled $475 million.

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Arkansas Teacher Retirement System, Little Rock, terminated Pacific Investment Management Co., which managed about $475 million its Total Return strategy for the pension fund, said George Hopkins, executive director.

Mr. Hopkins said the decision to terminate PIMCO was twofold. Officials at the pension had been looking to derisk the fund’s fixed-income portfolio, and the September departure of William H. Gross, PIMCO’s co-founder and chief investment officer, contributed to the decision to move out of the strategy completely.

“[Mr. Gross’] departure came at an inopportune time,” Mr. Hopkins said.

The assets will be transferred to a fixed-income index fund managed by State Street Global Advisors. State Street currently manages about $250 million in the index fund, Mr. Hopkins said.

The Arkansas Teacher Retirement System manages over $14 billion of pension assets.