New York State Teachers' Retirement System, Albany, decided not to renew State Street Global's contract to manage an active-passive international equity portfolio.
The $75.8 billion system will allow SSgA's contract to expire June 30 because of ``poor relative performance,'' said Candice Ronesi, a system spokeswoman. SSgA oversaw a $620 million portfolio at the end of March. SSgA's performance since its July 1, 1994, inception was 6.3%, vs. 8.6% for the MSCI EAFE index, according to data from the fund.
In addition, the system will actively manage the tobacco stocks held in its internal index fund, Ms. Ronesi said. Uncertainty in the tobacco sector led to the decision, she said. The fund owns 12,797,170 shares of tobacco stocks in its active and passive portfolios.