Oklahoma Teachers' Retirement System, Oklahoma City, has selected Arrowstreet Capital and Harding Loevner as international equity managers, according to Sarah Green, executive director of the $19.6 billion pension fund.
The decision to hire the two new managers was made at a board meeting on May 24, ending a near six-month search process conducted jointly with Aon, the pension fund's investment consultant, Ms. Green said.
Arrowstreet will manage a portfolio of approximately $600 million, while Harding Loevner will manage roughly $400 million.
The hiring of the two new asset managers stemmed from a review of the pension fund's international equity structure, which concluded that a more risk-controlled, less complex structure for international equities was needed. As part of the overhaul, Oklahoma Teachers also decided at the May 24 meeting to terminate the Wellington International Quality Growth Account, an actively managed global equity fund managed by Wellington Management.
Board meeting materials indicated that the decision to terminate the Wellington strategy was due to "lower conviction on forward-looking basis and recent team turnover." Wellington did not return an email seeking comment.
The termination follows the decision to terminate three international small-cap funds — one with Wellington Management and the others with State Street Global Advisors and Wasatch Global Investors — at a board meeting on April 26.
The termination of the three funds will result in "reduced exposure to active management within international equities and no dedicated exposure to international small cap," Ms. Green said in an email.