Hawaii Employees' Retirement System hired AJO and TOBAM to manage $400 million each in global low-volatility equities, said Vijoy Chattergy, chief investment officer.
The allocations will fall under the $14 billion pension fund’s stabilized growth portfolio, which has a 22.5% target.
Funding will come from existing equity managers with some terminations, Mr. Chattergy said. Specifics are still being determined.
An RFI for the pension fund’s first global low-volatility managers was issued in the fourth quarter of 2015.
Separately, the pension fund committed $30 million to AG Asia Realty Fund III, a value-added focused fund managed by Angelo Gordon & Co.
The pension fund has committed to other Angelo Gordon funds.
As of Dec. 31, the pension fund had a 6.1% allocation to real estate.