Hawaii Employees Retirement System, Honolulu, divested its holdings in three companies with Sudan-related investments to comply with state law, said CIO Rod June. The $11.5 billion system has an exposure of about $13 million to the three companies: Alstom, Sinopec Corp. and Electricity Generating Public Co. Ltd. International equity managers Julius Baer and New Star Institutional Managers had exposures to Alstom; Philadelphia International Advisors had exposure to Sinopec; and Acadian Asset Management had exposure to EGPC, Mr. June said. The fund does not expect any negative financial impact from the divestments, Mr. June said. The managers are not being terminated.
Separately, the board voted Monday to change the benchmark for four fixed-income managers to the Lehman Multiverse index, from the Lehman Aggregate index. The managers affected are Pacific Income Advisers, Bradford & Marzec, Western Asset and PIMCO. The system changed the benchmark to gauge global investments. Another fixed-income manager, Bishop Street Capital, will continue to use the Lehman Aggregate as a benchmark. The system had a total of $2.7 billion in fixed income as of June 30, 2007.