Hawaii Employees commits to Mesa West real estate fund

Hawaii Employees' Retirement System, Honolulu, committed $20 million to Mesa West Real Estate Income Fund III, a real estate debt fund managed by Mesa West Capital, confirmed Vijoy Chattergy, chief investment officer.

The $12 billion pension fund committed $20 million to the predecessor Mesa West fund. Real estate consultant Courtland Partners assisted.

Separately, the pension fund terminated Systematic Financial Management's active domestic large-cap value equity portfolio, Mr. Chattergy said in a telephone interview. Systematic managed about $453 million in the portfolio as of Sept. 30. The termination was not for performance, but was part of the pension fund's restructuring of its $1.3 billion domestic large-cap value equity portfolio that switched to one passive manager and two active managers from three active managers. It hired Mellon Capital Management in September to run an undetermined amount in a passive portfolio.

At its Jan. 14 meeting, the board decided to allocate 25% of the portfolio to Mellon Capital and split the remaining 75% between existing active managers CS McKee and Barrow, Hanley, Mewhinney & Strauss.

Investment consultant Pension Consulting Alliance assisted.