Several US institutional investors said they are closely monitoring developments at Pimco, the world's largest bond firm, in the wake of Mohamed El-Erian's abrupt resignation as chief executive and ensuing acrimony between him and co-founder Bill Gross.

The investors, including retirement systems, have formally put Pimco on “watch lists”, a signal that they would keep a closer eye on its performance. It could lead to reductions in the amounts they allocate to funds at the firm, which has $1.91 trillion in assets.

"We intend to go out and meet with them over the course of the next month," said David Hunter, chief investment officer of the North Dakota State Investment Board. The board, which has about $400 million invested with Pimco, put it on its watch list on February 28th. – (Reuters)