Florida Pension Cuts PIMCO

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In the latest vote of non-confidence in a post-Bill Gross PIMCO, the Florida State Board of Administration (SBA), the entity that manages investments for the Florida Retirement Systems, has announced it will drastically cut its investments with PIMCO.

From the New York Times:

The investment body overseeing the state of Florida’s retirement system said Tuesday that it would be sharply curtailing the funds that it has allocated to the shaken bond giant.

In a statement, Dennis Mackee, a spokesman for the $147 billion pension fund, said that $1.9 billion in assets managed by PIMCO as a separate investment account for Florida would be “significantly reduced.”

Mackee also said that Florida’s investment plan would be terminating PIMCO’s Total Return Fund and its Inflation Response Multi-Asset Strategy Fund. Together, the funds managed just over $1 billion for Florida retirees.

Adding insult to injury, Mackee said that this money would be steered toward two funds belonging to PIMCO’s archrival, BlackRock.

Mackee said that Blackrock would also be one of several other money managers receiving the separate account money withdrawn from PIMCO.

As with many state retirement funds, Florida had put PIMCO on its watch list after reports that its two leaders, Bill Gross and Mohamed El-Erian, were feuding.

The Florida Retirement System is one of the largest public pension funds in the United States. It manages $147 billion.

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