Hawaii Employees pension fund picks 2 for large-cap equities

Hawaii Employees' Retirement System, Honolulu, hired J.P. Morgan Asset Management (JPM) and Sands Capital Management to manage $300 million each in active domestic large-cap growth equity, confirmed Vijoy Chattergy, interim chief investment officer of the $10.7 billion pension fund.

The pension fund is shifting its $1.2 billion large-cap growth allocation to a 50/50 split between passive and active management from all active management, Mr. Chattergy said in a telephone interview.

Goldman Sachs had its portfolio terminated in October 2011. The remaining active assets were managed by Atalanta Sosnoff Capital, which rebid on the RFP, issued in April. The pension fund is expected to hire a passive manager by the end of the month. The assets are currently parked in a Mellon Capital Management large-cap growth index fund.

Pension Consulting Alliance assisted.

Separately, Quantitative Management Associates was placed on watch for organizational changes. Mr. Chattergy said the pension fund is satisfied with QMA but the retirement system's policy rules require it to put managers on watch when there are organizational changes. QMA manages about $200 million in active emerging markets equity.