REPORT DIGESTBOARD OF INVESTMENT COMPLIANCE EXAMINATION For the Year Ended: June 30, 2008 Summary of Findings: Total this Report 0 Total last Report 0 Repeated from last Report 0 Release Date:
State of
Office of the Auditor General WILLIAM G. HOLLAND AUDITOR GENERAL
To obtain a copy of the Report contact: Office of the Auditor General
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INTRODUCTION The Illinois State Board of Investment (Board) manages and invests the assets and reserves of any pension fund or retirement system that transfers this responsibility to the Board. Currently the Board manages and invests the assets and reserves of the State Employees’ Retirement System, Judges’ Retirement System, and General Assembly Retirement System. In addition, the Board has the responsibility for developing and establishing the State Employees’ Deferred Compensation Plan. This digest covers our compliance attestation examination of the Board for the year ended June 30, 2008. A financial audit covering the year ending June 30, 2008 was previously released on January 15, 2009. There were no report findings of noncompliance identified during our testing. ACCOUNTANTS’ REPORT We conducted a compliance attestation examination of the Board for the year ended June 30, 2008 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
McGladrey & Pullen LLP were our special assistant auditors for this engagement. {Financial Data and Supplementary Information are summarized on the reverse page.}
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COMPLIANCE EXAMINATION
YEAR ENDED JUNE 30, 2008
SCHEDULE OF OPERATIONS |
FY 2008 |
FY 2007 |
REVENUE: Investment Income - Interest..................................... Investment Income - Dividends................................. Investment Income - Securities Lending.................... Realized Gain on Investments................................... Unrealized Gain / (Loss) on Investments.................... Total Investment Income / (Loss)........................ External Support (Investment Expense) .................... Net Investment Income / (Loss).......................... EXPENSES: Operating Expenses................................................... Revenue over / (under) Expenses........................ |
172,400,021 47,112,290 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 |
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INVESTMENT PORTFOLIO ANALYSIS – Fair Value |
JUNE 30, 2008
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JUNE 30, 2007
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Total Government and Agency Obligations....................................... Total Corporate Obligations............................................................. Foreign Obligations......................................................................... Fixed Income Options..................................................................... Preferred Stock ............................................................................. Non – Real Estate Investments.................................................................. Private Equity................................................................................. Infrastructure Funds....................................................................... Hedge Funds.................................................................................. Money Market Investments............................................................. Bank Loans.................................................................................... Forward Foreign Currency Contracts............................................... Total Investment Portfolio.......................................................... |
1,058,164,332 113,005,430 (290,813) 4,241,685,933 4,491,500 1,984,917,495 1,332,081,349 524,628,589 209,975,518 598,985,402 307,481,504 202,137,983 (72,622) $11,429,528,114 |
$ 1,184,390,712 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 0 (108,696) $12,805,770,746 |
INVESTMENT ALLOCATION |
JUNE 30, 2008 |
JUNE 30, 2007 |
International Equity.........................................................................
Fixed Income................................................................................. Real Estate....................................................................................
Private Equity................................................................................. Infrastructure.................................................................................
Bank Loans.................................................................................... Cash.............................................................................................. Total........................................................................................
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37%
5%
17%
18%
12% 5%
2%
2%
2%
100% |
48%
4%
11%
20%
10% 4%
1%
0%
2%
100% |
SELECTED INVESTMENT RETURNS ACTUAL (bold) & BENCHMARK |
FY 2008 |
FY 2007 |
Total Fund.................................................................................... Composite benchmark.....................................................................
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(6.2)%
(4.6)%
(11.6)%
(12.5)%
N/A (10.3)%
(10.2)%
5.3%
6.2% 2.6% 9.2% |
17.1%
16.4%
19.9% N/A
20.4% 28.8% 27.5% 6.9%
6.6% 15.3% 17.2% |
EXECUTIVE DIRECTOR |
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During Engagement Period: William R. Atwood Currently:
William R. Atwood |