ASSET OWNERS

Hawaii Employees puts C.S. McKee on watch

Also, the pension fund is working with real estate consultant to consolidate core real estate managers

Hawaii Employees' Retirement System, Honolulu, placed C.S. McKee Investment Managers on watch for short-term performance issues, said Vijoy Chattergy, chief investment officer.

C.S. McKee manages about $465 million in active domestic large-cap value equity. Mr. Chattergy said the $12.5 billion pension fund thinks C.S. McKee will perform well in the long term, but was required to place it under watch because of pension fund rules.

Mark Gensheimer, president at C.S. McKee, did not return a telephone call for comment.

Separately, the pension fund is working with real estate consultant Courtland Partners to consolidate the number of core real estate managers to one or two from three. Heitman, LaSalle Investment Management and Invesco (IVZ) Real Estate manage a total of about $800 million in separate accounts. Mr. Chattergy said the pension fund could benefit from a larger scale with fewer managers and also wants to ensure it has the right core exposure to different asset classes and geographies.

Also, the pension fund is currently working with investment consultant Pension Consulting Alliance on moving to a risk factor-based asset allocation from a traditional structure. A new allocation is not expected for a few months.