A person is an “Investment Manager” with respect to a retirement system or pension fund under the Illinois Pension Code if such person:

1. is a trustee appointed by the board of trustees of a retirement system or pension fund in accordance with Section 1-109.1;
2. Has the power to manage, acquire or dispose of any asset of the retirement system or pension fund;
3. is anyone –
has. registered as an Investment Adviser under the Investment Advisers Act of 1940;
b. a bank, as defined in that Act, or
against an insurance company; Y
4. has acknowledged in writing that it is fiduciary with respect to the retirement system or pension fund.
5. The terms “Investment Manager” and “Investment Adviser” are used interchangeably.

The Investment Manager/Advisor/Broker with discretion over the purchase or sale of securities for the fund may not be the custodian of the investment instruments.

The pension boards must quarterly review the percentages for compliance with the Investment Policy. Funds with assets of less than $2.5 million are allowed 10% in separate accounts and/or mutual funds, which may not grow more than 10% as long as the contract has not been modified.

If market values ​​do not exceed the allowed percentage, rebalancing is not required. The Investment Policies of each fund must stipulate the admissible percentage in the different types of authorized investments.

Pension funds that invest in separate accounts, mutual funds, and/or individual stocks must calculate the market value of those funds to determine the percentage held vs. the percentage allowed by law. Use the expertise of the Investment Manager to help with this task. If the percentage exceeds the allowed amount, the fund must reduce the allowed percentage and document the reduction. The reduction in terms of investments that are sold is at the discretion of the pension board and is applied only to the aggregate percentage. Documentation of the percentage calculations must be maintained in the pension fund.