Thomas Williams

The Investment Committee meeting included presentations and discussions on various topics, such as the Total Fund Performance Review, which highlighted the ERS Total Portfolio's consistent outperformance and steady compounding returns. The Private Credit Portfolio Review showed that asset allocation remains in line with strategic targets and long-term returns exceed benchmarks. An educational session on risk budgeting was conducted to evaluate the contribution of each asset class to overall portfolio risk. The committee also received updates on Stanley Capital Partners Fund Investment and investment office staffing during the executive session.

The meeting included public comments regarding one of the ERS's investment managers and an oral and written report on issues related to Leonard Green & Partners. The Board elected officers, with Trustee Barfield as Chair and Trustee Kane as Vice Chair. The Board discussed the implementation of the Crisis Risk Offset Class, including various implementation options and their pros and cons. The Board approved the extension of the internal audit contract with KMH LLP. The Board reviewed the ERS's status report to the Legislature, the HiTIP annual report, the Sudan annual report, and the Commission Recapture Annual Review Report. The Board discussed draft Opportunistic Risk Class policy guidelines and an analysis of the 2016 ERS Investment Education Summit. The Board entered an executive session to discuss the system's investment in the Royal Ka'anapali Golf Courses property, the Equity-Oriented Options-Based Managers Search, legislation to authorize the ERS to make direct payment to the former spouse of an ERS member, and personnel matters relating to the Investment Office.

The Legislative Committee meeting of the Board of Trustees of the Employees' Retirement System of the State of Hawaii discussed legislative proposals for the 2024 session, including moving the vesting period from 10 years to 5 years for members hired after 2012 and lowering the maximum allowable amortization period. The committee also considered potential legislative proposals for future legislation, such as amortization strategy and negative amortization in public discussion. Additionally, there was a discussion about possible legislation involving the Trustee Election Process and the conversion of positions from civil service to exempt.

The meeting included a private equity program update by Hamilton Lane Advisors, LLC, an investment portfolio performance report for the 4th quarter of 2016 by Pension Consulting Alliance, LLC, and a real estate portfolio measurement report for the 3rd quarter of 2016 by Courtland Partners, Ltd. The board also discussed legislative proposals related to the ERS for the 2017 legislative session and approved revisions to the Administrative and Legislative Committee Charter. Additionally, the board authorized the extension of contracts with Medical Board members. Discussions also involved the ERS's investment in the Royal Kaanapali Golf Courses, changing the structure and manager composition of the Principal Protection risk class allocation, Global Mid/Large Cap finalists, Crisis Risk Offset accounts, and participation in a foreign arbitration against Petroleo Brasileiro S.A.

The Investment Committee meeting included presentations and discussions on various topics. Meketa Investment Group presented the Total Fund Performance Review, highlighting the ERS Total Portfolio's performance and market value. Man Group provided a review of the Diversifying Strategies portfolio, noting the challenges and performance within expectation. The committee discussed and approved the election of the Chair and Vice Chair, reviewed and approved the Investment Committee Charter, adopted the Investment Committee Annual Performance Assessment, and approved the Annual Investment Committee Workplan. Additionally, there was a continuation of educational content on risk budgeting at the total portfolio level. The committee received an update from the CIO. The meeting went into an executive session to discuss updates on Stanley Capital Partners Fund Investment, the closure of Weiss Asset Management, annual investment activity, and investment office staffing.