OAK BROOK, Ill. – On Friday, the Illinois Municipal Retirement Fund (IMRF) Board of Trustees approved up to $180 million in commitments within the Private Equity and Real Estate asset classes. The Board also heard an update on staff’s progress implementing IMRF’s new Strategic Asset Allocation Policy.
The Board approved the following commitments, subject to satisfactory legal due diligence:
Real Estate
- Up to $150 million to Blackstone Real Estate Partners X, L.P. IMRF is an existing investor in Blackstone funds, totaling $1.12 billion in aggregate commitments.
Private Equity
- Up to $30 million to Lightspeed India Partners IV, LLC. IMRF is an existing investor in Lightspeed funds, totaling $585 million in aggregate commitments.
Asset Allocation Implementation Update
On Friday, the Board also heard an update staff progress implementing IMRF’s new Strategic Asset Allocation (SAA) Policy. The new SAA Policy was first authorized by the Board on February 11, 2022. Then in March, the Board approved an implementation framework to achieve compliance with the SAA Policy targets. Staff also identified several portfolio enhancements to implement in conjunction with the new SAA Policy targets.
Taken together, staff hoped to accomplish several goals:
- Aligning the portfolio with the Board authorized SAA Policy.
- Reducing portfolio overlap, increasing efficiency, and promoting structural balance.
- Eliminating a manager on the Organizational Watch List.
- Lowering effective investment management fees for targeted mandates.
Staff set a goal of implementing 50% of the implementation framework by May. As of May 24, staff had implemented 99% of the framework and all goals had been achieved, including bringing the portfolio’s actual asset allocation within the Board-approved 4% range for all asset classes.
As of April 30, 2022, the total IMRF portfolio was valued at $50.78 billion.
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