HONOLULU – The State of Hawaii Employees Retirement System in mid-April boosted its allocation to alternatives to 5% from 3%, said Chief Investment Officer Nathan Fischer.
At the same time, the $9.5 billion pension decreased its allocations to real estate and domestic fixed income to accommodate the increase.
Hawaii initiated an alternative investment program about 18 months ago, hiring Abbott Capital Management L.L.C. as a discretionary adviser. The pension adjusted its investment plan following the completion of an asset allocation study.
Hawaii’s alternatives category covers venture capital, buyouts, timber and special situations. The pension intends to dedicate almost one-third of the 5% alternatives allocation to timber. About 15%, or $50 million, of the remaining 3.5% would go into venture capital.
Already, the pension has invested in New Enterprise Associates VIII, Oak Investment Partners VIII and Summit Ventures V, Mr. Fischer said.