“CalPERS has respect for both Bill Gross and Pimco investment professionals. Pimco manages an international bond fund for CalPERS, valued at approximately $1 billion and representing 1.5 percent of our Fixed Income program. We will continue to monitor developments at the firm, and will conduct a thorough analysis of our exposure managed by them. We have no plans at this time to make changes with our Pimco mandate.” according to a Calpers’press release today.
CalPERS Fixed Income program currently holds approximately $66 billion in fixed income, inflation-linked, and liquidity assets. The portfolio is 95 percent internally managed by CalPERS, with the remaining 5 percent managed by external firms.
The international bond fund managed by Pimco for CalPERS earned 11.2 percent for the most recent fiscal year, outperforming its benchmark by more than two percentage points. The fund has also outperformed its benchmark for the 3-year and 5-year time periods.
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