(Adds Pimco background, byline)
By Jennifer Ablan
NEW YORK May 19 Transamerica Asset Management,
Inc. has terminated Pacific Investment Management Company as an
investment subadvisor to an inflation-protected bond fund,
effective in the fourth quarter, according to an SEC filing on
Transamerica Asset Management, a third-party asset manager
with $65.6 billion in assets under management, says it replaced
Pimco with Pinebridge Investments LLC and will rename the
fixed-income portfolio to Transamerica PineBridge Inflation
Opportunities VP, the filing said.
Calls to Transamerica and Pimco were not immediately
Pimco has been rattled by a management shakeup and
disappointing performance. Investors pulled another $3.1 billion
from the flagship Pimco Total Return Fund in April, the 12th
straight month of outflows from the world's largest bond fund.
The fund has now seen a total of $55.26 billion in net
outflows since last May.
Pimco, overseen by Bill Gross, has seen more than $20
billion of outflows from U.S. open-end mutual funds in the first
four months of this year, according to Morningstar data.
PineBridge will seek to achieve the portfolio's investment
objective by investing at least 80 percent of the portfolio's
net assets - plus the amount of borrowings, if any, for
investment purposes - in inflation-indexed fixed income
securities issued by domestic and foreign governments, their
agencies or instrumentalities, and corporations.
Mutual fund subadvisers are money managers hired by a fund's
adviser to run all or a portion of a fund's assets under the
direction of the adviser, who is otherwise accountable directly
to the fund's board.
It has become popular in recent years, for example, for
financial firms without specific portfolio management expertise
to set up funds and then farm out the actual day-to-day
management responsibility to one or more asset managers who act
(Reporting By Jennifer Ablan; Editing by Chris Reese)