SUBJECT/RECOMMENDATION:
Title
Approve investment of up to $30,000,000 in the PIMCO Income Fund Institutional Class mutual fund product; and authorize the appropriate officials to execute same.
Body
SUMMARY:
The Pension Investment Committee is recommending the addition of a fixed income institutional mutual fund investment option.
The addition of this mutual fund investment will improve the diversification of the investment portfolio with a shorter duration fixed income option relative to the other longer duration fixed income money managers.
The Pension Investment Committee unanimously recommends PIMCO Income Fund for an initial investment of up to $30 million, or approximately 2% of the total plan investment portfolio.
As of June 30, 2026, PIMCO Income Fund Institutional Class fund historical performance has been as follows:
Bloomberg Multisector
U.S. Aggregate Bond
Performance Index Median
Last 3 years 7.77% 4.16% 6.97%
Last 5 years 3.83% 0.08% 2.57%
Last 10 years 4.81% 1.54% 3.89%
The PIMCO Income Fund Institutional Class mutual fund (PIMIX) is only available to institutional investors. It has a management fee of 0.50% and a net expense ratio of 0.51% per the fund’s August 2026 prospectus.
APPROPRIATION CODE AND AMOUNT:
Funds are available in cost code 6467410-530100 to fund this contract for an estimated $150,000 annually.
STRATEGIC PRIORITY:
Attract and retain top-quality personnel through the maintenance of a competitive compensation and benefits program.
