UNITED STATES – HawaiI Employees Retirement System is removing LaSalle Investment Management from its roster of separate account managers in a bid to streamline the management of its core real estate portfolio.

The pension fund is reducing the number of separate account managers for its core real estate portfolio from three to two, and has decided to retain Heitman and Invesco Real Estate.

Vijoy Chattergy, chief investment officer at Hawaii Employees, said: "The pension fund board felt it would be better served to have two managers instead of three. It was not related to a performance issue."

The portfolio managed by LaSalle, which comprises five properties valued at approximately $120m (€90m), is much smaller than the portfolios overseen by Heitman and Invesco, which are worth roughly $290m each.

LaSalle's portfolio, which is spread across the US, will be split up and transferred to the two remaining accounts.

Hawaii Employees' real estate portfolio is currently valued at $900m, representing 7.3% of its $12.3bn of in total assets. The targeted allocation for real estate is 7%.