Employees' Retirement System of the State of Hawaii

The committee reviewed and discussed the activities and timeline for the upcoming year and addressed compensation plan strategies.

The key discussions during this Human Resources Committee meeting focused on New Business items, including the election of the 2025 Chair and Vice Chair for the committee, and a review and discussion of the Human Resources Committee Charter to incorporate performance assessments. Other new business included a review of the committee's activities and timeline, and discussions regarding the Compensation Plan and the recruitment, process, and timeline for Executive Leadership Search. During the subsequent Executive Session, the committee deliberated on performance evaluations, goals, and compensation recommendations for the Executive Director, Chief Investment Officer, Deputy Chief Investment Officer, and Investment Officers. Following the Executive Session, the committee recommended specific salary increases for the Executive Director and Chief Investment Officer for presentation to the full Board.

The multi-day meeting focused extensively on the 2025 Investment Education Summit, including planning sessions and a review of the schedule. New business included the appointment and/or reassignment of Trustees to meet with investment managers. The agenda featured multiple executive sessions to consult with the Board's attorney regarding settlement matters and to deliberate on investments, including strategic updates on Total Fund, Capital Markets, Risk, Public Equity, Private Equity, Real Assets, Private Credit, and Diversifying Strategies, culminating in the approval of Private Market Strategic Pacing Plans. Public sessions included presentations on economic policy guidance, leadership in global investment firms, economic outlooks, and Hawaii cultural stewardship. Subsequent sessions covered real estate, public equity (including AI implications), private equity market conditions, real assets/infrastructure, diversifying strategies (litigation finance, event driven, macro), private credit opportunities, and risk/liquidity management. The final day included keynotes on leadership and public service, panels on Hawaii Targeted Investments, public pension balancing, long-term investing discipline, and a review of the ERS staff's current portfolio positioning and governance strategies.

This document provides a comprehensive overview of HIERS' private credit commitments, detailing investments across various fund strategies including Direct Lending, Multi-strategy, Opportunistic, Real Estate, and Special Situations. It includes specific financial data such as commitment amounts, capital contributions, and Net Asset Value for each fund, culminating in a total summary for the private credit program.

The agenda for the Board of Trustees meeting included several key reports and new business items. Staff reports covered operations updates from the ERS Executive Director, Deputy Executive Director, Program Support Staff, and Compliance Office, with detailed information on retirement benefits processing, accounting activities, information systems maintenance, and staffing updates for October 2025. New business featured discussions and potential approvals for the 2026 Board of Trustees Schedule of Meetings, the ERS Draft Funding Policy, an Internal Audit Update Report by KMH LLP, an Investment Manager Selection and Evaluation Review Report by KMH LLP, an update on the V3locity Pension Administration System Upgrade launch, and the Relocation Expense Reimbursement Policy. The meeting also included reports from the Administrative & Audit Committee and the Human Resources Committee. The Executive Session agenda covered consultations with attorneys regarding liability, sensitive matters like Cyber Security and Enterprise Risk Management Updates, reviewing leadership succession plans, and approving relocation expense reimbursement for an investment officer applicant, as well as discussing ongoing litigation and settlement matters.