Hawaii Employees' Retirement System, Honolulu, terminated Capital International, which ran $250 million in emerging markets equities, because of performance, said Kimo Blaisdell, CIO. Capital International had been on the $8.4 billion system's watch list since May 2003, and performance "continued to disappoint," so the system's board concluded "it was time to move on," Mr. Blaisdell said. Consultant Callan Associates recommended against the termination, arguing that Capital Group's organization and process would come through over time. Hawaii is close to choosing at least one manager to run the $250 million, and "hopefully we'll be selecting someone shortly," Mr. Blaisdell said. Jennifer Grigas, spokeswoman for parent company Capital Group, said the company does not discuss client matters.