Oklahoma Teachers' Retirement System, Oklahoma City, intends to hire Northern Trust to provide custodial, securities lending and commission recapture services if the two parties can agree on contract terms, said Tom Spencer, executive director, in an e-mail.
A proposed contract could be presented to the board for approval at its March 25 meeting.
An RFP was issued in October due to the June 30 contract expiration of incumbent provider J.P. Morgan Chase, which was the other finalist.
Separately, the board named McGladrey and Eide Bailly as finalists in its search for an auditor.
A hiring decision could be made at the March 25 board meeting, Mr. Spencer wrote.
An RFP was issued in November because of the upcoming contract expiration of incumbent auditor Cole & Reed.
Finally, the $13.8 billion pension fund returned 1.9% for the three months ended Dec. 31 and 8.1% for the calendar year. For the three and 10 years ended Dec. 31, OTRS returned an annualized 15.5% and 8.1%, respectively.
At the end of December, the pension fund had an asset allocation of 46.5% domestic equity; 22.6% non-core assets, made up of 7.8% master limited partnerships, 5.5% high-yield bonds, 4.8% real estate, 3.3% private equity and 1.2% opportunistic assets; 15.5% core fixed income; and 15.4% international equity.