Hawaii Employees' Retirement System, Honolulu, will likely begin an asset allocation study in early 2006, said Kimo Blaisdell, CIO of the $9.49 billion plan. Callan Associates, the system's consultant, will assist.
The fund also hired Philadelphia International Advisors, New Star Institutional Managers and JPMorgan Asset Management to manage $300 million each in active large-cap international equities, Mr. Blaisdell said. The money had been in an index fund run by State Street Global Advisors. Most of the money originally came from Bank of Ireland and Schroders Investment Management, which ran about $400 million each in similar portfolios before being terminated.
System officials also hired Rexiter Capital Management to run $100 million in active emerging markets equities. The money was taken from a commingled fund, where it had been placed after Capital International was terminated as manager of a similar emerging markets portfolio. The system has 18% of total assets in international equities, Mr. Blaisdell said.
Additionally, the system hired Western Asset Management to run a $450 million core-plus fixed-income portfolio, Mr. Blaisdell said. The new allocation was added for diversification. The fund's other core-plus fixed-income managers are PIMCO and Bradford & Marzac, which ran $485 million and $473 million, respectively, as of Sept. 30.