The state Employees' Retirement System has placed Bishop Capital Management, a First Hawaiian Bank subsidiary, on its "watch list" of equity managers, noting the company needs to boost its performance.

Bishop Street manages $112.4 million of growth stocks for the $9.62 billion pension fund and has lagged behind results produced by two other managers in the category — Ark Asset Management and Goldman, Sachs & Co. — during the past quarter and year, according to a report by Callan Associates, an ERS advisor.

Brandt Farias, a Bishop Street Capital spokesman, said the fund has made changes within the past six months to its personnel and systems to boost its performance.

The ERS trustees also voted Monday to remove Bank of Hawaii from the watch list. Bank of Hawaii had been placed on the list for organizational reasons after it entered an alliance with another investment manager, C.M. Bidwell.