Policies

In order to ensure continued relevance, all policies are reviewed and updated on a regular basis to make sure that the Fund is in compliance with the Illinois Compiled Statutes.

Formal Investment Policy
The Board of Trustees have a fiduciary responsibility to the members and beneficiaries of the system.  In recognition of this responsibility, the Formal Investment Policy was created to establish investment objectives that satisfy the goal of funding current and future benefit obligations and to provide the criteria and framework for evaluating investment performance. Investment decisions made by the Board are governed by the prudent man rule.

Investment Policy

Broker Dealer Policy
The Board of Trustees encourages the use of registered broker/dealer firms owned by minorities, women and persons with disabilities (MWDOB) as defined in the Business Enterprise for Minorities Act, 30 ILCS 575/0.01 et seq. A MWDOB firm is defined as a sole proprietorship, partnership or corporation owned, operated and controlled by minority group members who have at least 51% ownership. The Fund has established annual goals based on its current asset allocation.

Broker/Dealer Utilization Policy

Emerging Investment Manager Utilization Program
On September 23, 2009, the Board of Trustees adopted an Emerging Manager Utilization Program to enhance the return of the Fund's assets and to assist emerging investment management firms. On December 15, 2010 the Trustees modified the program to increase the utilization goals and the initial allocation maximum. The Trustees also amended the definition of an emerging manager on January 28, 2015 to a minority owned business, female owned business or a business owned by a person with a disability.

The Fund may initially invest up to 12% of its total assets with investment management firms that meet the criteria for inclusion in this program.  Selected emerging managers may receive an initial allocation up to $25 million. Details of this program can be found on the attached link.

Emerging Investment Manager Utilization Program

MWDBE Investment Manager Utilization Policy

The Metropolitan Water Reclamation District Retirement Fund is committed to providing opportunities for minority owned business entities, female owned entities and business entities owned by a person with a disability. On January 28, 2015, the Board of Trustees adopted a policy which set forth minimum goals for increasing the utilization of MWDBE managers. 

MWDBE Investment Manager Utilization Policy

 

 

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