Ford Motors (F) has announced that it’s 401k plan will no longer include the Pimco Total Return Fund.
The company said that it will drop the Pimco fund from its 401k plans due to the departure of Bill Gross from Pimco. Gross left Pimco, which he helped found, to join up with Janus Capital Group (JNS), reports Reuters.
Ford said that it will transfer participant balances and future contributions to BlackRock Institutional Trust’s Bond Index Fund. Employees working for the automobile manufacturer can transfer out of the Pimco fund before Nov. 14, Reuters notes.
David Kudla, CEO and chief investment strategist for Mainstay Capital Management, said that he removed his Ford clients from Pimco after learning of Gross’ departure. He said that the move makes sense and that he will continue to keep an eye on Pimco, reports Pensions & Investments.
F shares were down slightly as of Wednesday afternoon.