Employees’ Retirement System of the State of Hawaii

BOARD OF TRUSTEES INVESTMENT COMMITTEE CHARTER

The purpose of the Committee is to carry out the responsibilities delegated by the Board relating to the review and monitoring of the activities of the Investment Office and its staff.

The Investment Committee (the "Committee") of the Board of Trustees (the "Board") of the Employees’ Retirement System of the State of Hawaii (the "ERS") shall consist of no less than four (4) Board members and may include as many as all current members of the Board, and shall be appointed by the Board. The members of the Committee shall be appointed for one-year terms and shall serve for such term or terms as the Board may determine or until earlier resignation. The Board may remove any member from the Committee at any time with or without cause.

The Committee shall meet before the Board meetings, except when there is a Special Board meeting, and at such other times and places as the members of the Committee deem necessary to fulfill the Committee’s responsibilities. The Committee shall report regularly to the Board regarding its actions and make recommendations to the Board as appropriate. The Committee may invite such member of management to its meetings as it deems appropriate. The Committee shall review this Charter at least annually and recommend any proposed changes to the Board for approval.

The Board shall designate a member of the Committee as the chairperson.

The Committee shall have the following authority and responsibilities:

• To review and approve annually the ERS’s goals and objectives applicable to the Investment Office.

• To review and approve ongoing activities of the Investment Office in regards to the goals and objectives and any additional tasks assigned to the Investment Office from the Board.

• To assign and provide direction to Chief Investment Officer (the “CIO”) and (if applicable) the Executive Director (the “ED”) on priorities and actions to successfully execute the responsibilities of the Investment Office.

• To review and make investment policies and guidelines recommendations for the Board’s consideration.

The Committee shall consult with the ED on the goals and objectives applicable to the CIO and Investment Office.

The Committee shall have the authority, in its sole discretion, to obtain the advice of any ERS consultant or ERS service provider the purposes of carrying out its duties related to the Investment Office and investment activities. The Committee shall have the authority, in its sole discretion, to obtain the advice and assistance of ERS’s legal counsel and such other advisors as it deems necessary to fulfill its duties and responsibilities under this Charter. The Committee shall not be required to implement or act consistently with the advice or recommendations of its consultant, legal counsel or other advisor to the Committee, and the authority granted in this Charter shall not affect the ability or obligation of the Committee to exercise its own judgment in fulfillment of its duties under this Charter. The consultant(s), outside counsel and any other advisors retained by, or providing advice to, the Committee (other than the ERS’s in-house counsel) shall be independent as determined in the discretion of the Committee and Board.

The Committee shall conduct an annual evaluation of the performance of its duties under this charter and shall present the results of the evaluation to the Board. The Committee shall conduct this evaluation in such manner as it deems appropriate.

Board approved 9/30/13