The move is part of a restructuring of the $12.5 billion system’s global managers’ allocations to equalize their weightings, with some exceptions, Mr. Allen said.
Callan Associates, SURS’ investment consultant, recommended the equalized weightings “to manage risk in better fashion,” Mr. Allen said.
“Callan said we were more growth oriented” in global equities “and recommend a more balanced approached,” Mr. Allen said. “We felt there was an overlap in core” global equities and terminated Payden & Rygel, Mr. Allen added.
SURS plans to keep the proceeds in global equities, reallocating them among remaining global equity managers.
Active global equity managers Aberdeen Asset Management managed $347 million in value as of Aug. 31; Calamos Investments, $163 million in growth; T. Rowe Price, $334 million in growth; and Wellington Management, $371 million in core.
In addition, SURS changed the mandate of Mondrian Investment Partners, which managed $212 million in international equities, moving it to active value global equities.
SURS is still determining the amounts of the reallocations to the managers, Mr. Allen said.