February 23, 2024
OAK BROOK, Ill. –On Friday, the Illinois Municipal Retirement Fund (IMRF) Board of Trustees approved up to $125 million in commitments within the Private Equity asset class. In addition, the Board approved the Investment Committee Charter and Statement of Investment Policy, as well as the Long-term Asset Allocation Policy and Implementation Plan.
The Board approved the following commitments, subject to satisfactory legal due diligence:
Private Equity
- Up to $75 million to Sterling Group Partners VI, L.P. IMRF is an existing investor in Sterling funds, with $147.5 million in aggregate commitments.
- Up to $50 million to Clearlake Capital Partners VIII, L.P. IMRF is an existing investor in Clearlake funds, with $396.9 million in aggregate commitments. Clearlake qualifies as a minority-owned firm per the Illinois Pension Code.
Strategic Asset Allocation Review
The Board approved the following:
- Continue with the next phase of the Board authorized strategic asset allocation implementation plan as approved on December 16, 2022.
- Authorize the adoption of a strategic asset allocation as of January 1, 2024 with the following parameters:
- 33.5% U.S. Equity
- 18.0% International Equity
- 24.5% Fixed Income
- 10.5% Private Real Assets
- 12.5% Alternative Investments
- 1.0% Cash
- Authorize the adoption of a policy benchmark as of December 31, 2024 with the following parameters:
- 33.5% Custom U.S. Equity Benchmark
- 18.0% MSCI All Country World Index ex USA (Net)
- 24.5% Custom Fixed Income Benchmark
- 10.5% Custom Private Real Assets Benchmark
- 12.5% Custom Alternative Investments Benchmark
- 1.0% 3 Month T-Bills
Investment Committee Charter and Statement of Investment Policy
The Board approved the recommended changes to the Investment Committee Charter and Statement of Investment Policy. A few highlights of the recommended changes are:
- Updated the total Fund’s assets under management goal for minorities, women and persons with disabilities to 22% from 20%.
- Updated the minority broker asset class goal for U.S. Large-Cap Equities to 35% from 30%.
- Updated 2024 and 2025 asset allocation targets and Policy Benchmark Indexes to align with the long-term strategic asset allocation targets.
- Updated the Asset Allocation Targets for the following: decreased the U.S. Equity asset class target to 33.5% from 34.5% and increased the Alternative Investments asset class target to 12.5% from 11.5%.
- Revised the 2024 total Fund Benchmarks chart Custom Policy Benchmark Components U.S. Equity and Alternative Assets.
- Added the 2025 Total Fund Benchmarks chart.
- Updated the permissible real asset categories by adding a bullet point for ‘Energy.’
As of January 31, the total IMRF portfolio was valued at $52.3 billion.
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