The board, which originally hired JPMAM in June 2017 to run its systematic alpha strategy, voted to terminate the strategy at its March 18 meeting, said Stephanie Alexander, liaison officer, in an email.
The board voted to terminate the manager because the strategy has not provided the returns or expected diversification, according to a board action memo provided by Ms. Alexander.
J.P. Morgan spokeswoman Kristen Chambers declined to comment.
How the assets will be reallocated has yet to be determined.
The board oversees the management of $33.6 billion in defined benefit and defined contribution plan assets, including the $19.1 billion Public Employees' Retirement System and $9.1 billion Teachers' Retirement System.