Arkansas Teacher Retirement System, Little Rock, terminated a $500 million active global equity portfolio managed by UBS Global Asset Management, said George Hopkins, executive director of the $11.6 billion pension fund.
The assets will be moved into the BlackRock MSCI ACWI Investable Market Index Fund A, which already had about $230 million of the pension fund's assets in the fund, Mr. Hopkins said.
UBS was terminated because of a personnel change and because the pension fund is “moving significantly toward indexing,” Mr. Hopkins said in a telephone interview.
Separately, the pension plan committed $60 million to Franklin Park private equity funds: $20 million each to its Venture Fund 2013 and International Fund 2013, and $20 million in a co-investment fund.
Franklin Park is the pension fund's private equity consultant and offers funds of funds to its clients without investment fees, Mr. Hopkins said.
Arkansas Teachers has invested in the venture capital funds every year since 2008; it is the pension fund's third straight year in the international funds and second year making a co-investment.