Oklahoma Teachers' Retirement System, Oklahoma City, could search for international equity managers if two existing managers in the asset class — Capital Guardian and Brandes Investment Partners — do not improve their performance, James Wilbanks, executive director of the $10 billion system said in a telephone interview.
The system put CapGuardian and Brandes “on notice” at its March 23 board meeting. Capital Guardian runs $395 million and Brandes, $484 million, Mr. Wilbanks said.
The system has approximately $1.5 billion in international equities.
Mr. Wilbanks said the system could issue an RFP if performance is not improved.
Chuck Freadhoff, a spokesman for Capital Guardian, said officials “don't discuss our clients or their decisions.” A spokesman for Brandes could not be reached for comment.
Mr. Wilbanks said the board also is considering hiring a dedicated emerging markets manager. He said the system's four international equity managers are allowed to invest up to 30% of the pension fund's allocation in emerging markets, but not all of them are at the ceiling.
“We're not definitely going that way (toward a dedicated emerging markets manager) but we're talking about it in more detail,” he said.
He also said there is a “value tilt” to the system's current lineup of international equities investments, so the system is considering hiring a dedicated small-cap or midcap manager.
At the board meeting, the system also renewed its five-year contract with J.P. Morgan Chase, its custodial bank and securities lending agent.