Employees’ Retirement System of the State of Hawaii - Investment Committee Meeting - May 26, 2026

Sep 4, 2026

Uploaded by Connor

Investment Committee Meeting materials for the Employees’ Retirement System of the State of Hawaii, dated May 26, 2026. The agenda includes portfolio review, plan sponsor peer group analysis, and multiple investment policy and risk items, along with approval of February 17, 2026 minutes. The package reports ERS total fund performance as of March 31, 2026, highlights steady compounded growth and risk-adjusted outperformance versus peers, and presents valuation and asset allocation context.

LanguageEnglish

CategoryResearch & Report

FormatPDF

Pages186

Reading Time7 h 49 min

AccessFree to download

Agenda

Introduction

ERS Portfolio Review

Plan Sponsor Peer Group Analysis

Appendix

Executive Summary (As of March 31, 2026)

Investment Committee Meeting May 26 , 2026 Meeting Items • Agenda • Total Fund Performance Review for period ending March 31 , 2026 • 2026 Asset Liability Study Education: Capital Market Assumptions • 2026 Asset Liability Study Education: Risk & Implementation Survey • Asset Class Review: Private Equity Annual Review for period ending December 31 , 2025 • Risk Budget Policy Adoption • CIO Update • Approval of Minutes – February 17 , 2026 Board Packet Documents are available to the public for inspection on the Employees’ Retirement System’s Website: [https://ers.ehawaii.gov/board](https://ers.ehawaii.gov/board)and-committee-agendas-and-meeting-packets , and in the Employees’Retirement System’s Office, 201 Merchant Street, Suite 1400, Honolulu, HI 96813 2026 Q1 Performance Report Employees’ Retirement System of the State of Hawaii May 26 , 2026 MEKETA.COM Employees’ Retirement System of the State of Hawaii Agenda 1. Introduction 2. ERS Portfolio Review 3. Plan Sponsor Peer Group Analysis 4. Appendix MEKETA.COM Page 2 of 56 Introduction Employees’ Retirement System of the State of Hawaii Executive Summary | As of March 31, 2026 Executive Summary → The ERS Board has constructed the investment portfolio to produce steady, compounding returns over time.→ Risk mitigation is critical in order to ensure the long-term sustainability and growth of the ERS. → Within the ERS’s Investment Policy Statement, success is defined as achieving the long-term return that is needed in conjunction with actuarially defined contributions to fund the plan over time. → As detailed below, ERS has consistently generated steady, compounded growth since its performance inception.1 Since Inception Growth of $1 Total Fund (Net) Return Benchmark $16 $0 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 1 Return Benchmark represents the ERS's actuarial assumption rate, which is 7 .0% since July 2016, 7 .65% from July 2015 to July 2016, 7 .75% July 2011 to July 2015, 8 .00% prior to July 2011. MEKETA.COM Page 4 of 56 Employees’ Retirement System of the State of Hawaii Executive Summary | As of March 31, 2026 Executive Summary (Continued) → When considering risk assumed per unit of return received, ERS steadily outpaces its national peer set. Risk-Adjusted Performance1 of Hawaii ERS vs. Median Public Fund | | Since Inception | 30 Yrs | 20 Yrs | 10 Yrs | 5 Yrs | 3 Yrs | 1 Yr | FYTD | CYTD | QTD | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | Total Fund | 7.6 | 6.9 | 6.4 | 7.7 | 5.9 | 6.6 | 7.6 | 5.4 | 0.5 | 0.5 | | Risk-Adjusted Peer Median2 | 7.2 | 6.8 | 5.7 | 5.1 | 2.8 | 4.1 | 5.1 | 2.7 | (0.2) | (0.2) | | Excess Return | 0.4 | 0.2 | 0.7 | 2.6 | 3.0 | 2.4 | 2.6 | 2.7 | 0.7 | 0.7 | 1 Performance shown is net of fees since October 1, 2014, and a mix of net and gross of fees prior to October 1, 2014. Fiscal Year beings on July 1. Inception date is June 1, 1990. 2 The risk-adjusted median normalizes the median fund to the ERS’s exhibited volatility. Calculated as: risk-adjusted median return = unadjusted median return × (ERS volatility ÷ median fund volatility), where volatility is measured as standard deviation. Figures for periods greater than one year are annualized. MEKETA.COM Page 5 of 56 Employees' Retirement System of the State of Hawaii Total Fund | As of March 31, 2026 | Portfolio Valuation | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | Quarter-to-Date One Year | | | | | | | | | | | Total Fund | | | | | | | | | | | Beginning Market Value | | | 25,618,242,248 | | | | 24,007,910,944 | | | | Net Cash Flows | | | -96,712,178 | | | | -247,394,421 | | | | Gain/Loss

FAQs

What date and period are covered by this investment committee meeting package?

The meeting is dated May 26, 2026. The performance reporting in the package references the position as of March 31, 2026.

What are the core agenda items in the meeting?

The agenda includes an introduction, ERS portfolio review, plan sponsor peer group analysis, and an appendix. Additional specific items include performance review, asset liability study education, risk budget policy adoption, and a CIO update.

How does the executive summary describe ERS investment results and risk management?

The executive summary emphasizes steady, compounded growth since inception and states that risk mitigation is critical for long-term sustainability and growth. It also reports that ERS risk-adjusted performance steadily outpaces its national peer set.

Sep 4, 2026

Uploaded by Connor