Pimco Drops Connecticut Deal Over Possible Ethical Conflict
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NEWPORT BEACH — A division of Pimco Advisors LP resigned from a contract to manage $450 million of pension money for Connecticut after a state official who awarded the contract quit to join another Pimco unit.
Pacific Investment Management Co. ended its pension contract hours after Connecticut Gov. John Rowland suggested in a letter to Christopher Burnham, the state’s outgoing treasurer, that Burnham drop the contract because of a possible conflict, the Associated Press reported.
Burnham is leaving to head Pimco’s Columbus Circle Investors, a money manager. Columbus Circle itself managed $180 million for the state but gave up that account, also awarded under Burnham’s tenure, after the treasurer decided to join the firm.
Burnham has been criticized for taking a job with a company that did business with the state. Burnham’s spokesman, Patrick O’Neil, said in June that Columbus Circle was paid a fee of $194,000 for managing Connecticut’s money over 18 months.
Pimco, a Newport Beach firm, owns about 50% of both Pacific Investment Management and Columbus Circle.
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