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OHA delegation returns from Common Fund forum with calls to expand staff and consider Hawaii-specific CPI
Summary
OHA trustees and staff summarized key takeaways from the Common Fund conference: market uncertainty, fixed-income revaluation, diversification into private credit, venture and AI, and an action to model a Hawaii-specific CPI for policy targets.
Office of Hawaiian Affairs trustees and staff who attended the Common Fund forum (March 8——11) reported takeaways on March 9, urging closer study of portfolio targets, staffing and local cost measures.
Endowment Director Ryan Lee told the Committee on Investments and Land Management that the conference emphasized market uncertainty, the potential weakening of fixed income as a diversifier and the continued importance of portfolio diversification. "The market's been pretty volatile," Lee said, referencing recent S&P movement and uncertainty around inflation and policy. He recommended considering shorter-duration fixed-income allocations and global fixed-income exposure to manage U.S. fiscal risk.
Treasury Director Stacy Ferreira said the delegation discussed whether OHA's existing CPI-plus policy (CPI + 2.5%) reflects local cost pressures. "I asked Ryan to work with Zoe ... to model out what a CPI would look like based off of a Hawaii consumer price index," Ferreira said; she noted Hawaii's CPI for February 2024 was 3.9% versus 3.2% for the U.S. "By doing this modeling, I think that we're going to find that ... cost of business is higher because of where we live," she said.
Trustees and staff flagged human-resources needs for investment oversight. Multiple speakers said the endowment team is lean; staff and managers recommended adding analyst support. Stacy Ferreira said, "Ryan needs additional assistance," and trustees discussed accelerating trustee training and manager meetings to align strategy with budget planning.
Delegation members also reported heightened interest in private credit, venture, secondaries and AI-related infrastructure as potential avenues for return. Several trustees expressed enthusiasm for venture exposure but emphasized mission alignment and prudent diversification.
Ending: Trustees asked staff to provide a schedule of upcoming training opportunities, to model Hawaii-specific CPI implications for the trust's return target and to evaluate resourcing for investment staff.
