Hawaii Employees' Retirement System, Honolulu, committed up to $40 million to Cabot Industrial Core Fund, said Vijoy Chattergy, chief investment officer.
It is the $14.4 billion pension fund's first commitment to a Cabot Properties fund.
Separately, the pension fund returned 4% for the fiscal year ended June 30, exceeding its policy benchmarks of 2.7% and 3.5%, which are based on the pension fund's new risk-based asset allocation and a traditional asset-class based allocation, respectively.
Looking at the pension's fund traditional asset allocation, real estate returned 14.6%, private equity 12.8%; domestic equity, 8%; covered calls, 5.6%; real return 5.4%; fixed income, 2.8%; and international equity, -4.3%.
Looking at the risk-based asset allocation, real estate returned 14.6%; private growth or private equity, 12.8%; real return, 5.4%; principal protection, which is essentially government bonds, 2.8%; and growth-oriented or public equity, 2.7%. The return for stabilized growth (covered calls and credit), could not immediately be learned.
Real estate and private equity returns are reported on a three-month lag.
The pension fund has a target allocation of 34.2% domestic equity, 26% international equity, 20% fixed income, 5.7% real estate, 5% covered calls, 4.6% real return and 4.5% private equity.
The target allocation for the new risk-based framework is 76% broad growth, consisting of public and private equity, covered calls and credit; 12% principal protection; 7% real estate; and 5% real return.
