Hawaii Employees' Retirement System, Honolulu, committed $40 million to DRA Growth and Income Fund IX, a value-added real estate fund managed by DRA Advisors, said Vijoy Chattergy, chief investment officer of the $14 billion pension fund.
It is a new relationship.
Separately, the pension fund returned -0.9% for the fiscal year ended June 30, slightly below its policy benchmark return, which was flat, Mr. Chattergy said.
Real estate was the top performer for the year, returning 12.5%, followed by real return at 5.4%; private growth, which is just private equity now, 5.2%; stabilized growth or covered calls and credit, 4.2%; principal protection, which is essentially global sovereign bonds, 3.1%; and growth-oriented or public equity, -4.8%.
As of June 30, the pension fund had an asset allocation of 75.4% broad growth, consisting of growth-oriented, stabilized growth and private growth strategies; 12.8% principal protection, 5.5% real estate, 4.9% real return and the remainder in other assets, which is basically cash.
For the three, five and 10 years ended June 30, the pension fund returned an annualized 6.8%, 6.5% and 5.7%, respectively, vs. its benchmark returns of 6.5%, 6.7% and 5.7% in each of those periods.
