2009 Response to Pensions and Investments Questionnaire
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Minority and Female Investment Hearing Questionnaire Senate Pensions & Investments Committee 1. What is the percentage of Minority and Women representation on the Board of Trustees of your fund (“the Fund”)? Please identify the Minority and Women members of the Board of Trustees by name, specifying which members are African American, Asian American, and Latino. The IMRF has a Board composed of eight (8) Trustees who are elected by our membership. Four (4) Trustees are elected by the employers of our Fund, three (3) Trustees are elected by the employees of our Fund and one (1) Trustee is elected by the annuitants of our Fund. We have four (4) female Trustees. This represents 50% of our current Board. There are no minority Board members. The female members on our Board of Trustees are: Ruth E. Faklis Gwen Henry Martha H. Rademacher Sharon U. Thompson 2. What is the percentage of Minority and Women representation on the Fund’s investment staff (excluding support staff)? Please specify the percentage of African Americans, Asian Americans, Latinos, and Women. Seventy-five percent of the Fund’s investment staff (excluding support staff) is minority and /or women. African Americans represent 0% Asian Americans represent 12.5% Latinas represent 37.5% Women represent 25.0% Please note that some members of our investment staff are Latinas and Asian American women but were not double counted. 3. What is the percentage of Minority and Women representation on the Fund’s consulting staff who is specifically assigned to the Fund (excluding support staff)? Please specify the percentage of African Americans, Asian Americans, Latinos, and Women. The consulting staff assigned to IMRF is 8 people: 5 non-minorities, 2 females (25%) and 1 African American female (12.5%) for a total of 37.5% IMRF Page 1 of 15 4. What is the percentage of Minority and Women representation at the Fund’s hired consulting firm (excluding support staff)? Please specify the percentage of African Americans, Asian Americans, Latinos, and Women. Consulting Practice Firm-wide Total Women & Minorities – 31 (30%) African American Male – 1% Asian Male – 7.5% African American Female – 4.7% White Female – 15% Latinas – 1% Asian Female – 1% 5. As of June 30, 2009, what is the total amount of the Fund’s assets? $19.26 billion 6. As of June 30, 2009, what is the total amount of assets, in dollar amounts, being managed by African American owned money managers? Latino owned money managers? Asian American owned money managers? Female owned money managers? Please separate these amounts by asset class (i.e., domestic equity, international equity, fixed income, etc.) and be sure to address all asset classes in which the Fund has an allocation. Please identify these entities by name. Please Refer to Exhibit A 7. As of June 30, 2009, what percentage (based on assets managed within each asset class) of money managers retained by the Fund is African American? Latino? Asian American? Female? Please identify these entities by name. Please Refer to Exhibit B 8. As of June 30, 2009, what is the total dollar amount of assets being managed by African American owned money managers, exclusive of a manager of managers program? Please also provide the dollar amounts with respect to Latino, Asian American, and Female owned money managers, exclusive of a manager of managers program. Please Refer to Exhibit C 9. Exclusive of a manager of managers program, as of June 30, 2009, what percentage of money managers retained by the Fund is African American? Latino? Asian American? Female? Please identify these entities by name. Please Refer to Exhibit D IMRF Page 2 of 15 10. What percentage of the total amount of money management fees were paid by the Fund in 2008 to African American owned money managers? What was the total amount of fees paid to African American owned money managers in 2008? What was the net amount of fees paid to African American owned money managers in 2008 exclusive of a manager of managers program? Please also provide answers with respect to Latino, Asian American, and Female owned money managers. Percentage of Total IMRF Total Fees Paid 2008 Fees Paid 2008 African American $4,736,179 8.87% Latino $1,365,693 2.56% Female $945,391 1.77% Asian $159,096 0.30% Fees Paid 2008 Percentage of Total IMRF net of MoM Fees Paid 2008 excluding Program MoM Program African American $4,035,542 7.56% Latino $1,218,341 2.28% Female $939,815 1.76% Asian $0 0.00% 11. What percentage of the total amount of money management fees were paid by the Fund in 2009 as of June 30, 2009 to African American owned money managers? What was the total amount of fees paid to African American owned money managers in 2009 as of June 30, 2009? What was the net amount of fees paid to African American owned money managers in 2009 as of June 30, 2009 exclusive of a manager of managers program? Please also provide answers with respect to Latino, Asian American, and Female owned money managers. Total Fees Paid Percentage of Total IMRF 1H09 Fees Paid 1H09 African American $2,060,937 9.41% Latino $627,283 2.87% Female $384,924 1.76% Asian $60,789 0.28% Fees Paid 1H09 Percentage of Total IMRF net of MoM Fees Paid 1H09 excluding Program MoM Program African American $1,681,294 7.68% Latino $579,506 2.65% Female $384,924 1.76% Asian $0 0.00% IMRF Page 3 of 15 12. Are any of your manager of managers Minority or Female owned firms? (If so, please name the firm and the amount of assets being managed. If not, and you have hired a manager of managers, please name the firm and the amount of assets being managed.) Yes, IMRF retains Progress Investment Management Company, an African American owned manager of managers. As of June 30, 2009, Progress managed $497.6 million for IMRF. 13. If you have hired a manager of managers, what fees are paid to your manager of managers? What amount of the manager of managers fees are paid to the underlying managers? Please be specific and request this from your manager of managers. IMRF FEES TO PROGRESS DOMESTIC EQUITY FIXED INCOME 2008 $1,309,559.93 $801,548.56 1H09 $511,923.34 $412,402.11 PROGRESS TO SUB-ADVISORS DOMESTIC EQUITY FIXED INCOME 2008 $648,098.21 $512,593.02 1H09 $249,163.24 $253,570.99 14. At what point do you consider direct hiring of successful underlying managers in a manager of managers program? We consider direct hiring of successful underlying managers in a manager of managers program when it is necessary to conduct a money manager search or to rebalance assets within the investment portfolio. When conducting a money manager search or rebalancing the assets within the investment portfolio, we will first review our existing investment manager relationships. We will then consider allocating additional money to existing managers by moving them out of the manager of managers program or possibly increasing the allocation to the manager of managers program. This can both increase the allocation to the underlying managers and increase the number of emerging managers used in the manager of managers program. For example, we have moved one investment manager, GlobeFlex, out of the manager of managers program with an initial allocation of a $100 million international equity portfolio. As of December 31, 2007, GlobeFlex managed a $143 million portfolio for IMRF. In January 2008, GlobeFlex received two additional allocations: one in January 2008 for $75 million; and one in June 2009 for $150 million. As of June 30, 3009, GlobeFlex managed a $277 million portfolio for IMRF. IMRF Page 4 of 15 Additionally, we have one investment manager, Piedmont that participates in our equity manager of managers program with a $26 million assignment but also has a direct $244 million fixed income assignment from our Fund. Piedmont’s original allocation was $100 million in 2005; in 2007 they received an additional contribution of $119 million. This manager’s fixed income capabilities were recognized through our manager of managers’ equity relationship. 15. What percent of assets by asset class were allocated to Illinoisheadquartered Minority and Female owned investment managers in 2008 and 2009 (through June 30)? What is the total dollar amount of those assets allocated to Illinois headquartered Minority and Female owned investment managers relative to each asset class? Please Refer to Exhibit E 16. What is the percentage of the total dollar amount of investment management fees that is paid by the Fund to Illinois headquartered Minority and Female owned investment managers in 2008 and 2009? What is the total dollar amount of those fees by asset class? Please specify the percentage and total dollar amount for African American, Latino, Asian American, and Female owned, Illinoisheadquartered investment managers? Total Fees Paid 2008 to IL Percentage of Total IMRF Fees Paid 2008 hdqtrd. mgrs. to IL hdqtrd. mgrs. African American $1,456,394 2.7% Latino $94,090 0.2% Female $0 0.0% Asian $13,463 0.0% Total Fees Paid 2008 to IL Percentage of Total IMRF Fees Paid 2008 hdqtrd. mgrs. to IL hdqtrd. mgrs. Domestic Equity $1,041,097 1.9% International Equity $0 0.0% Fixed Income $0 0.0% Alternatives $500,000 0.9% Real Estate $0 0.0% Total Fees Paid 1H09 to IL Percentage of Total IMRF Fees Paid hdqtrd. mgrs. 1H09 to IL hdqtrd. mgrs. African American $978,355 4.5% Latino $31,773 0.1% Female $0 0.0% Asian $0 0.0% Total Fees Paid 1H09 to IL Percentage of Total IMRF Fees Paid hdqtrd.