REPORT DIGEST ILLINOIS STATE BOARD OF INVESTMENT COMPLIANCE
EXAMINATION For the Year Ended: June 30, 2007 Summary of Findings: Total this year -Financial Audit 0* -Compliance Examination 0 0 Total last year -Financial Audit 0* -Compliance Examination 3 3 Repeated from last year -Financial Audit 0* -Compliance Examination 0
0 * Financial audit previously
released Release Date: April 30, 2008
State of Illinois Office of the
Auditor General WILLIAM G. HOLLAND AUDITOR GENERAL
To obtain a copy of the
Report contact: Office of the Auditor
General Iles Park Plaza 740 E. Ash Street Springfield, IL 62703 (217) 782-6046 or TTY (888) 261-2887 This Report Digest and Full
Report are also available on the worldwide web at http://www.auditor.illinois.gov |
INTRODUCTION This
digest covers our compliance attestation examination of the Illinois State
Board of Investment (Board) for the year ended June 30, 2007. A financial
audit covering the year ending June 30, 2007 was previously released on March
4, 2008. There were no report
findings of noncompliance identified during our testing. FUNDING LEGISLATION
In June 2005, Public Act
94-0004 became law. This legislation
modified the funding plan of the State Employees’ Retirement System, Judges’
Retirement System and General Assembly Retirement System (Systems). The legislation
included funding reductions of approximately $496.4 million in fiscal year
2007, for employer contributions to the Systems. This funding resulted in member systems’ withdrawals from the
Board in fiscal year 2007 of $642 million to meet their respective funding requirements
for benefit obligations.
ACCOUNTANTS’ REPORT We conducted a compliance attestation
examination of the Board for the year ended June 30, 2007 as required by the
Illinois State Auditing Act. The accountants’ report does not contain any
scope limitations, disclosures or other significant non-standard language. _____________________________________ WILLIAM
G. HOLLAND, Auditor General WGH:RPU:pp SPECIAL ASSISTANT AUDITORS
KPMG LLP were our special assistant auditors for this engagement.
{Financial Data and Supplementary Information are summarized on the reverse page.} |
ILLINOIS STATE BOARD OF
INVESTMENT
COMPLIANCE
EXAMINATION
YEAR ENDED JUNE 30, 2007
|
SCHEDULE OF OPERATIONS |
FY
2007 |
FY
2006 |
|
REVENUE: Investment Income - Interest...................................
Investment Income - Dividends..............................
Investment Income - Securities Lending..................
Realized Gain on Investments.................................
Unrealized Gain on Investments..............................
Total Investment Income.................................
External Support (Investment Expense)
.................
Total Revenue (Net Investment Income)...........
EXPENSES: Operating Expenses...............................................
Revenue over Expenses...................................
|
$ 172,400,021
147,112,290
4,493,459
848,635,310
745,633,561
$1,918,274,641
(38,838,254) $1,879,436,387 $
(1,725,080) $1,877,711,307 |
$
183,047,403
4,321,712
775,805,644
116,794,342
$1,203,147,819
(28,556,047) $1,174,591,772 $
(1,586,585) $1,173,005,187 |
|
INVESTMENT
PORTFOLIO ANALYSIS – Fair Value |
JUNE 30, 2007
|
JUNE 30, 2006
|
|
Total Government and Agency Obligations................................... Total Corporate
Obligations.........................................................
Foreign Obligations......................................................................
Fixed Income Options..................................................................
U.S. Common Stock
& Equities...................................................
Preferred Stock .......................................................................... Non – U.S. Equity
Securities........................................................
Real Estate
Investments................................................................
Private Equity...............................................................................
Infrastructure Funds..................................................................... Hedge Funds............................................................................... Money Market Investments..........................................................
Forward Foreign
Currency Contracts...........................................
Total Investment Portfolio........................................................
|
1,228,970,012 72,189,687
(114,828) 6,059,409,027 1,865,020 1,365,647,941 1,189,614,911 563,366,021 108,436,449 496,404,578 535,699,912 (108,696)
$12,805,770,746 |
1,382,574,163 104,455,671
(169,563) 5,369,124,032 1,057,334 1,113,268,102 1,134,025,154 482,264,036 0 416,462,183 320,641,552
26,145
$11,434,818,360 |
|
INVESTMENT
ALLOCATION (unaudited) |
JUNE
30, 2007 |
JUNE
30, 2006 |
|
U.S. Equity..................................................................................
U.S. Equity Hedge Funds.............................................................
International Equity.......................................................................
Fixed Income...............................................................................
Real Estate...................................................................................
Private Equity...............................................................................
Infrastructure................................................................................
Cash............................................................................................
Total......................................................................................
|
48%
4%
11%
20% 10% 4% 1%
2% 100% |
47%
4%
10%
23% 10%
4% 0%
2% 100% |
|
INVESTMENT RETURNS ACTUAL (bold) & BENCHMARK (unaudited) |
FY 2007 |
FY 2006 |
|
Total Fund.................................................................................
Composite benchmark................................................................. U.S. Equities..............................................................................
Wilshire 500 Index.......................................................................
Non- U.S. Equities.....................................................................
MSCI-EAFE Index..................................................................... Fixed Income.............................................................................
Lehman U.S. Universal Bond Index..............................................
Real Estate................................................................................
NCRIEF Real Estate Index..........................................................
Private Equity............................................................................
|
17.1% 16.4% 19.9% 20.4% 28.8% 27.5% 6.9% 6.6% 15.3% 17.2%
31.7% |
11.0% 11.5% 10.7% 10.0% 28.9% 27.1% 0.8% (0.3)% 19.5% 18.7%
21.3% |
|
EXECUTIVE DIRECTOR |
||
|
During Engagement Period: William R. Atwood Currently: William R. Atwood |
||