Hawaii Employees posts 2.57% return

The $22.3 billion Hawaii Employees’ Retirement System (HERS) posted a net return of 2.57 percent for the fiscal year that ended June 30, underperforming its benchmark of 4.48 percent.

For the past three, five and seven years, HERS has generated annualized net returns of 10.54 percent, 7.71 percent and 8.57 percent, respectively, each above their respective benchmarks of 8.35 percent, 6.02 percent, and 7.08 percent.

Real assets investments, which make up 16.6 percent ($3.7 billion) of HERS’ portfolio, yielded a net return of 0.22 percent for the fiscal year, slightly below its benchmark of 0.25 percent.

During the past three years real assets have generated annualized net returns of 10.24 percent, above that time periods’ benchmark of 8.10 percent. During the past five and seven years, real assets have posted net annualized returns of 8.03 percent and 8.17 percent, respectively, for HERS.