And now for some investment news that affects employees of the Ford Motor Company, the Pimco Total Return Fund, and those who closely follow the investment arena: Ford Motor Company has confirmed the removal of the Pimco Total Return Fund from its 401k plan. In a statement to Reuters, the automaker stated:
“Ford Motor Company constantly monitors and assesses the performance of its investment lineup. Effective Nov. 14, 2014, the Pimco Total Return Fund is being removed from Ford’s investment lineup.”
The removal of the fund is said to be a result of the sudden resignation of Bill Gross, Pimco’s chief investment officer and portfolio manager and one of the bond market’s most eminent investors. Gross quit Pimco for distant rival Janus Capital Group Inc. According to two sources familiar with the situation, he was expected to be fired the next day from the firm he helped start up more than four decades ago, which has since grown into a $2 trillion investment powerhouse.
Ford will transfer participant balances and future contributions to the Bond Index Fund, which is invested in a collective investment fund through the BlackRock Institutional Trust Company. The automaker also stated that employees can transfer out of Pimco Total Return Fund at any time before November 14th.