Oak Brook, Ill. – Today, the Illinois Municipal Retirement Fund (IMRF) Board of Trustees made multiple announcements, including: the formation of a search committee for a new executive director; adjustments to IMRF’s target strategic asset allocation; and a private equity commitment, subject to satisfactory legal due diligence.
Executive Director Search Committee Formed
The Board approved the formation of a Search Committee to identify a successor for IMRF Executive Director Louis W. Kosiba. Kosiba, Executive Director since 2001, who will retire on December 31, 2017.
Per the Illinois Pension Code (40 ILCS 5-7-186), the board hires one employee, the executive director, who is responsible for carrying out all administrative duties of IMRF, including the supervision of 205 staff members.
The newly created search committee will include Executive Trustees Gwen Henry (chairperson), Sue Stanish, and Tom Kuehne; Employee Trustee Alex Wallace; and Annuitant Trustee Sharon U. Thompson. Any recommendations will be brought to the full board for a vote.
The board’s intent is to conduct a nationwide search, in addition to considering any internal candidates. Key steps in the process will include hiring an executive search firm to assist; reviewing and revising the executive director job description as needed; defining a timeline for making a hiring decision; interviewing candidates; and negotiating a final contract.
Prior to becoming executive director, Kosiba served as general counsel from 1990 to 2001. A native Chicagoan, Kosiba holds a juris doctor degree and a master’s in business administration from the University of Illinois at Urbana-Champaign. Kosiba is one of the founding attorneys of the National Association of Public Pension Attorneys, and is an active member of the National Association of State Retirement Administrators.
Target Strategic Asset Allocation
The board approved the following adjustments to IMRF’s target strategic asset allocation:
- Reduced the international equity target from 17 to 16 percent
- Reduced the alternatives target from nine to eight percent
- Increased the fixed income target from 27 to 29 percent
The board agreed to maintain the existing target allocation of 38 percent to U.S. equity, eight percent to real estate, and one percent in cash.
IMRF staff recommended the changes following completion of an asset-liability modeling study by Wilshire. The new target strategic asset allocation will go into effect on January 1, 2017.
New Commitment
The Board approved a commitment of up to $75 million to Vistria Fund II, L.P., subject to satisfactory legal due diligence.
IMRF previously committed $18 million to Vistria Fund I, L.P.; $15 million through a direct commitment and $3 million indirectly through a fund-of-funds account.
Vistria, headquartered in Chicago, qualifies as an African American-owned private equity firm per the Illinois Pension Code.
As of September 30, 2016, the IMRF total portfolio was valued at $35.8 billion.