Hawaii Employees Retirement picks Mellon Capital for passive fund

Hawaii Employees' Retirement System, Honolulu, hired Mellon Capital Management to run $600 million in a passive domestic large-cap growth equity index fund, said Vijoy Chattergy, interim chief investment officer of the $11.5 billion pension fund.

Mellon also was hired to run a domestic passive large-cap value equity index fund, but the size has not been decided yet, Mr. Chattergy said in a telephone interview. The hires are pending contract negotiations.

Mellon had been managing about $1.2 billion in a large-cap growth index fund following the terminations of Goldman Sachs Asset Management and Atalanta Sosnoff Capital in the last year. Half of those assets will fund the recent hires of J.P. Morgan Asset Management (JPM) and Sands Capital, which will manage $300 million each in active domestic large-cap growth equity.

The large-cap value assets will be transferred from the three current active value managers with about $1.2 billion total in assets — CS McKee, Systematic Financial Management and Barrow, Hanley, Mewhinney & Strauss.

Pension Consulting Alliance assisted.