Oklahoma Teachers' Retirement System, Oklahoma City, hired Northern Trust Asset Management to manage about $1.48 billion combined in factor-based index and cap-weighted index portfolios, said Tom Spencer, executive director of the $15.8 billion pension fund, in an email.
Northern Trust will manage $885 million in an ERI Scientific Beta's Multi-Beta Multi-strategy Six Factor Equal Weight index portfolio and $590 million in a cap-weighted Russell 1000 index account.
An RFP for one passive equity manager was issued in the spring. Previously, Northern Trust managed a little more than $900 million in a cap-weighted S&P 500 index fund and State Street Global Advisors managed about $225 million in an equal-weighted S&P 500 index, both of which are being eliminated.
In conjunction with index changes, the pension fund board approved a new target allocation for its $5.9 billion U.S. equity portfolio — 75% in traditional active management, 15% in a factor-based index and 10% in cap-weighted index. It had been 80% in active management and 20% in cap-weighted and equal-weighted indexes, previously.
Further U.S. equity searches or terminations are not being contemplated at this time, Mr. Spencer said.