Hawaii Employees’ Retirement System, Honolulu, could launch a search for active global large-cap and midcap equity managers some time in December, said Vijoy Chattergy, chief investment officer.
A separate search for active global small-cap managers could follow.
In September, the pension fund announced it was reconsidering the level of active vs. passive management in its equity portfolio, and that it intended to move toward more underlying global strategies. A search for passive global equity managers is underway. Further details were not available.
Funding for the new global allocations, both active and passive, will come from the existing domestic and international equity portfolios. Existing equity managers will be invited to apply. To be considered, interested firms can contact investment consultant Pension Consulting Alliance, Mr. Chattergy said. He could not provide information on the individual allocation sizes at this time.
As of March 31, one passive global equity manager, five active international managers, two passive domestic managers and eight active domestic managers ran a combined $8.47 billion for the $14.4 billion retirement system, or 59% of total pension fund assets. The target for the reoptimized public equity portfolio is significantly lower — roughly 22.5% of total pension fund assets.
Separately, the pension fund committed $20 million to Mesa West Real Estate Income Fund IV, managed by Mesa West Capital, Mr. Chattergy said.
The pension fund previously committed $20 million each to predecessor real estate debt funds Mesa West Real Estate Income Fund III and Mesa West Real Estate Income Fund II.
The pension fund’s current real estate target is 7%.