Emmanuel Roman

Summary List Placement

A second investment consultant for pension funds and other institutional investors has flagged $2.2 trillion money manager Pimco for enhanced scrutiny after multiple current and former employees alleged that they faced discrimination and harassment at the firm. 

Westwood, Mass.-based Meketa Investment Group has so far recommended that at least one pension fund client, the San Joaquin County Employees’ Retirement Association, place the money manager on watch. SJCERA had around $68 million dollars invested in a Pimco emerging markets equity fund as of Dec. 31, public board documents show. 

Money managers can be added to consultant and investor watch lists for a range of due diligence issues, including underperformance and organizational concerns. When an investor or consultant puts a firm on watch, it can make it harder for the money manager to raise additional funds and puts its existing investments with the client under added scrutiny.

Meketa’s move follows that of another investment consultant, NEPC, which also recommended that Pimco be placed on watch in a due diligence report presented last month to the Alameda-Contra Costa Transit Employees’ Retirement Plan. The pension fund for transit employees had $53.9 million invested with Pimco as of Dec. 31, according to public board documents.

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Source:: Businessinsider – Finance


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