OAK BROOK, Ill. –On Friday, the Illinois Municipal Retirement Fund (IMRF) Board of Trustees approved up to $240 million in commitments within the Real Estate and Private Equity asset classes. In addition, the Board approved the Long-term Asset Allocation Policy and the Implementation Plan.
The Board approved the following commitments, subject to satisfactory legal due diligence:
Real Estate
- Up to $100 million to Oak Street Real Estate Capital Fund VI, L.P. IMRF is an existing investor in Oak Street funds, totaling $275 million in aggregate commitments.
- Up to $50 million to EnCap Energy Transition Fund II, L.P. IMRF is an existing investor in EnCap funds through its separate account managers and direct allocations, totaling $125.8 million in aggregate commitments.
Private Equity
- Up to $50 million in aggregate to Accel-KKR Capital Partners VII, L.P. and Accel-KKR Emerging Buyout Partners II, L.P. The allocations will be $25 million to Accel-KKR Capital Partners VII, L.P and $25 million to Accel-KKR Emerging Buyout Partners II, L.P. IMRF is an existing investor in Accel-KKR funds through its separate account managers, totaling $14.75 million in aggregate commitments.
- Up to $40 million to ABRY Secured Credit Opportunity Fund, L.P. IMRF is an existing investor in ABRY funds through its separate account managers and direct allocations, totaling $343.46 million.
Long-term Asset Allocation Policy and Implementation Plan
The 2022 Asset Liability Modeling Study was completed. The Board approved the Long-term Asset Allocation Policy and Implementation Plan.
The Long-term Asset Allocation targets, to be phased in over a 3-year period, are:
- 32.5% - U.S. Equity
- 18% - International Equity
- 24% - Fixed Income
- 10.5% - Private Real Assets
- 14% - Alternative Investments
- 1% - Cash
Beginning on January 1, 2023, the Asset Allocation targets will be:
- 34.5% U.S. Equity
- 18% International Equity
- 24.5% Fixed Income
- 10.5% Private Real Assets
- 11.5% Alternative Investments
- 1% Cash
The fund’s policy benchmarks will take effect on December 31, 2023, with the following parameters:
- 34.5% Custom U.S. Equity Benchmark
- 18% MSCI All Country World Index ex USA (Net)
- 24.5% Custom Fixed Income Benchmark
- 10.5% Custom Private Real Assets Benchmark
- 11.5% Custom Alternative Investments Benchmark
- 1% 3-month Treasury Bills
As of October 31, the total IMRF portfolio was valued at $47.3 billion.
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