Asset Owner Spotlight: Elizabeth Burton, CIO, Hawaii Employees’ Retirement System

Elizabeth Burton was hired as chief investment officer by the $16.8 billion Employees’ Retirement System of the State of Hawaii (ERS) at the end of July 2018, and reported for her first day of work on October 1. Her first interview with the fund was in late spring, several months after former CIO Vijoy Chatterjy …

Plan Sponsors’ Downward Pressure on AM Fees May Come at a Cost

The much discussed push by institutional investors to reduce their asset management costs, which has taken hold in earnest since the financial crisis, is now bringing a new question to the fore: will lower fees lead to lower-quality asset management services and to the insolvency of asset managers, some of whom will be forced to …

Hawaii’s Controversial Options Strategy Looking Good Even after CIO’s Departure

The options strategy implemented by Vijoy Chattergy, the former chief investment officer of the $17 billion Honolulu-based Employees’ Retirement System of the State of Hawaii (HIERS), which targets equity like returns with 2/3 the volatility of equities over a full market cycle, is still performing well, even after his departure. “Today the strategy remains fully collateralized, and …

Illinois U. System to Replicate $5 Bn in Equities with Exchange-listed Options  

The Champaign, Illinois–based State Universities Retirement System of Illinois (SURS), with approximately $20 billion in assets under management (AUM), is using an exchange-listed options strategy to hedge what some observers perceive as a U.S. equities market on the cusp of a painful tumble, in order to beat the market. “Some option strategies can trail. But …