NEW YORK, Oct 1 (Reuters) - The Fresno County Employees’ Retirement Association maintained Pimco on its watch list at a board meeting on Wednesday, less than a week after the bond fund manager’s former chief investment officer resigned.
The retirement association, which has $200 million of its $4 billion in assets invested with Pimco, placed the Newport Beach, California, company on watch earlier this year, after the departure of prominent economist Mohamed El-Erian.
“Our decision to go with Pimco had a lot to do with his (El-Erian‘s) vision,” said Becky Van Wyk, the association’s interim retirement administrator.
She added that the association’s consultants, Wurts & Associates, are expected to update the board on Pimco in the future.
Bill Gross, the bond market’s most renowned investor, quit Pimco for distant rival Janus Capital Group Inc on Friday, the day before he was expected to be fired from the huge investment firm he cofounded more than 40 years ago.
Pimco has seen a spike in outflows since the news. The firm’s flagship Total Return Fund posted record net monthly outflows of an estimated $23.5 billion in September, the largest daily amount of which came on the day Gross quit. (Reporting by Luciana Lopez; editing by Matthew Lewis)