OAK BROOK, Ill. – On Friday, the Illinois Municipal Retirement Fund (IMRF) Board of Trustees conducted the annual asset allocation review and approved the 2021 asset allocation. The Board adopted the 2021 Investment Committee Charter, the 2021 Statement of Investment Policy, committed $30 million to a minority-owned firm in the Alternatives asset class, and honored IMRF’s outgoing Chief Investment Officer for her service.
Asset Allocation Review
The annual review of the asset allocation was conducted, and the Board approved the 2021 asset allocation. The following changes to the portfolio’s target asset allocation, effective January 1, 2021 are:
- Increase Domestic Equity asset class target from 37% to 39%
- Reduce International Equity asset class target from 18% to 15%
- Reduce Fixed Income asset class target from 28% to 25%
- Increase Real Estate asset class target from 9% to 10%
- Increase Alternative Investments asset class target from 7% to 10%
The target allocation for cash holdings will remain at 1% of the portfolio.
Investment Committee Charter and Statement of Investment Policy
The Board approved the 2021 Investment Committee Charter and 2021 Statement of Investment Policy.
As part of the Statement of Investment Policy recommendation, the Board approved the following changes to the Minority Investment Manager and Broker/Dealer utilization goals:
- Minority Investment Manager Goals by Asset Class
- Increase the Fixed Income goal to 32% from 30%
- Increase the Private Equity goal to 22% from 20%
- Minority Broker/Dealer Utilization Goals by Asset Class
- Increase the Fixed Income goal to 25% from 22%
As of October 31, 2020, IMRF’s Minority Investment Manager program is $10.5 billion invested across domestic equity, international equity, fixed income, and alternatives asset classes, representing 23.5% of the Fund and exceeding IMRF’s aspirational goal of 20%.
Investment Recommendation
The Board approved a commitment of:
- Up to $30 million to Harpoon Venture III, L.P., subject to satisfactory legal due diligence. IMRF is an existing investor in Harpoon through a $7.5 million direct commitment and separate indirect commitments through Lightspeed Venture Partners. Harpoon qualifies as a disabled-owned investment management firm, as defined by the Illinois Pension Code.
Board Honors Outgoing CIO
The Board also thanked outgoing CIO Dhvani Shah for her more than nine years of service. Shah is joining Florida-based JM Family Enterprises, and her last day at IMRF is December 28, 2020. IMRF has developed a transition plan that will ensure the efficient management of the portfolio until Shah’s successor is identified. During her tenure, the assets of the IMRF pension fund increased from $24 billion in 2011 to more than $48 billion today. The Board thanked Shah for her contributions to IMRF and wished her the best in her future endeavors.
As of Nov. 30, the total IMRF portfolio was valued at $48.3 billion.
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