The $632 million ABC-NABET Retirement Trust terminated its $37 million high-yield mandate with Seix Advisors and hired PIMCO to take over the assets. Dennis Allen, trustee, said that although the fund was pleased with Seix’s performance, it chose PIMCO’s Diversified Income Strategy to add more value. The strategy invests in global investment grade corporate credit and emerging market sovereign debt, as well as high-yield.
“We are not down on Seix,” Allen added. “We may decide to go back to them if we do another high-yield [allocation].” Last year, PIMCO’s Diversified Income institutional mutual fund returned 5.9%, while its benchmark, the Lehman Brothers Global Credit Index USD Hedged, returned 4.08%. Seix returned 2.88% last year, while the Merrill Lynch High Yield Master Index returned 2.83%. Bob Sherman, director of client service and marketing, did not return calls.
Separately, the fund is in the midst of an asset allocation study (MML, 3/10). It is advised by New England Pension Consultants.