Oklahoma Teachers' Retirement System, Oklahoma City, revised its target asset allocation, which included a slight boost to international equities and real estate, said Tom Spencer, executive director of the $15 billion pension fund, in an email.
The new targets are 38.5% U.S. equities (vs. 40% previously), 19% international equities (17.5%), 9% real estate (7%) and 5% master limited partnerships (7%). The fixed-income and private equity targets were maintained at 23.5% and 5%, respectively.
The changes follow a review of the fund’s asset allocation by investment consultant AndCo Consulting that looked at expected returns and accompanying risks, Mr. Spencer wrote. No manager terminations or searches are expected as a result of the changes.
Separately, the pension fund put international small-cap equity manager Epoch Investment Partners “on alert” because of personnel changes.
Primary portfolio manager Eric Citerne’s responsibilities have been reduced as he transitions into retirement, Mr. Spencer wrote.
The pension fund had roughly $191 million invested with Epoch as of Feb. 28.
Being put on alert is a step below being placed “on notice,” which is the last step before termination.
Also, the pension fund rehired Gabriel Roeder Smith & Co. as an actuarial consultant, pending successful contract negotiations.
An RFP was issued last year as a due diligence measure.
