Oklahoma Teachers' Retirement System, Oklahoma City, placed Loomis Sayles and Epoch Investment Partners on alert for personnel reasons, confirmed James Wilbanks, executive director of the $10.2 billion pension fund.
Loomis Sayles manages about $204 million in high-yield fixed income; Epoch, $92 million in international small-cap equity. Being put on alert is a step below being placed “on notice,” which is the last step before termination.
Separately, the pension plan's funded status in the fiscal year ended June 30 dropped to 54.8% from 56.7% as unfunded liabilities increased to $8.4 billion from $7.6 billion, according to an actuarial valuation report from Gabriel Roeder Smith.
Mr. Wilbanks said the primary driver of the funded status decline was the realization of previous investment losses as part of the pension fund's five-year smoothing period. He added that the funding period, which is how long it would take to reach 100% if all assumptions are met, remained at 22 years.