Oklahoma Teachers sets $175 million for private debt, eliminates all-cap equity allocation

Oklahoma Teachers' Retirement System, Oklahoma City, committed $175 million to private debt fund PIMCO Bravo Fund III, said Tom Spencer, executive director of the $14.4 billion pension fund, in an e-mail.

The Pacific Investment Management Co. fund will be part of the pension fund's 22.2% allocation to fixed income.

Separately, the pension fund is eliminating its roughly 4% allocation to domestic all-cap equity.

“The (pension fund) board has decided that the strategy hasn't worked in the manner they thought it would,” Mr. Spencer said, adding that “it's more of a strategy decision rather than any reflection on Epoch Investment Partners,” the pension fund's only domestic all-cap equity manager. The pension fund has roughly $175 million invested in the Epoch strategy, which will temporarily be placed in an existing passive domestic equity fund managed by Northern Trust Asset Management. It has not been determined whether any manager searches will be conducted as a result.

Epoch continues to manage an international small-cap equity strategy for the pension fund.