Oklahoma Teachers' Retirement System, Oklahoma City, has terminated three international small-cap funds with State Street Global Advisors, Wasatch Global Investors and Wellington Management as part of a restructuring of its international equity portfolio, according to Sarah Green, executive director of the $19.6 billion pension fund.
Assets in the SSGA emerging market small-cap fund as well as in the Wasatch and Wellington international small-cap funds will be reallocated to the Northern Trust MSCI ACWI ex-U.S. index fund, Ms. Green said in an email.
The decisions to terminate the funds, which were made at a board meeting on April 26, were based solely on asset-class structure considerations, according to Ms. Green.
"With our consultant Aon, we determined that a more risk-controlled, less complex structure for international equities will best meet the needs of the system going forward. This future structure will have a reduced exposure to active management within international equities and no dedicated exposure to international small cap," she said.
As of March 31, Oklahoma Teachers held $282.7 million in the SSGA fund, $204.8 million in the Wasatch fund and $178.6 million in the Wellington fund, according to the board meeting materials.
SSGA is among 13 financial firms that Oklahoma pension funds can no longer do business with because they factor environmental, social and governance considerations into their investment decision-making and were said to be "boycotting energy companies." Oklahoma Treasurer Todd Russ issued the boycott list on May 3.
SSGA declined to comment on the termination of the emerging market small-cap fund. Wasatch and Wellington did not respond to requests for comment.