Investment and Financial Reporting
The Metropolitan Water Reclamation District Retirement Fund's investments are governed by the Illinois Compiled Statutes requiring a "prudent person" standard be applied to all investment related decisions. Under this standard, a fiduciary must discharge his/her duties solely in the interest of the participants and beneficiaries with the degree of diligence, care and skill which prudent persons would ordinarily exercise under similar circumstances in a like position.
The Board of Trustees, as responsible fiduciaries of the system, determine the policies and strategies based upon recommendations made by the Fund's investment consultant. The Board empowers the investment managers with full discretion over the portfolio with the directive of securing the best possible returns while managing an acceptable level of risk. The Fund's staff are responsible for investment manager compliance with all guidelines and for implementing policies established by the Board.
The Fund's current asset allocation targets consist of 38% domestic equities, 20% international equities, 5% global equities, 27% fixed income and 10% real estate. Asset allocation affects both risk and return and is a central concept in investment management. Studies indicate that 90% of the Fund's performance is determined by its asset allocation. The investment policy of the Fund establishes asset allocation targets and ranges for each asset class to achieve risk and return objectives. Fund staff, in collaboration with the Fund's investment consultant, monitor the investment allocation on a monthly basis. Formal re-balancing is recommended by the consultant when variances approach 5% over or under the targets.
To find out more information about the Fund's investments, click on the links below:
Investment Performance and Allocation
Investment Managers and Brokers
Financial and Investment Reports
