Hawaii Employees' Retirement System, Honolulu, plans to issue requests for information as early as April for its first global intermediate fixed-income manager and for a U.S. intermediate fixed-income manager, said Vijoy Chattergy, chief investment officer, in an email.
The targeted allocation for the global bond manager is roughly $600 million and for the U.S. bond manager, roughly $250 million.
Funding for the global allocation is expected to come from the elimination of international equity strategies managed by Pacific Investment Management Co. and Oechsle International Advisors. Both PIMCO and Oechsle, which manage roughly $361 million and $718 million, respectively, are invited to bid for the new allocation.
The U.S. fixed-income search is being conducted to re-evaluate the market, Mr. Chattergy wrote. Pacific Income Advisers, which manages roughly $361 million in U.S. intermediate fixed income for the $15 billion pension fund, is invited to rebid. Hawaii-based managers are encouraged to apply.
The RFIs are expected to be posted on investment consultant Pension Consulting Alliance's website. Hiring decisions could be made in June or July.