Emerging Managers and Brokers

Emerging Investment Manager Program

Cook County Pension Fund (the Fund) through its investment management activities seeks to achieve superior risk-adjusted returns to meet the performance and funding requirements, and recognizes that exposure to Emerging Investment Managers can be a beneficial component of a well-diversified portfolio. Consistent with the Fund’s long-standing commitment to the use of Emerging Investment Managers and in support of public policy as declared in the Illinois Pension Code [40 ILCS 5/1-109.1], the Retirement Board seeks to be inclusive of Emerging Investment Managers throughout its investment activities. The Retirement Board has adopted policy guidelines as a framework in establishing the operational guidelines and procedures of the Emerging Investment Manager Program as well as goals to increase the use of Emerging Investment Managers.

Program Objectives:

  • Increase the use of Emerging Investment Managers;
  • Proactively identify best-in-class Emerging Investment Managers who demonstrate the capacity to become long-term viable partners of the Fund;
  • Maintain guidelines and funding strategies that encourage the inclusion and support the development of Emerging Investment Managers; and
  • Employ prudent selection processes and practices consistent with the high fiduciary standards for all investment management decisions.

In carrying out the Emerging Investment Manager Program and according to PA96-0006 of the Illinois Pension Code, the Retirement Board has established target range goals for the use of Emerging Investment Managers for the Fund's asset classes as well as for the use of Emerging Investment Managers across the Fund. These goals are part of the Fund’s long-term strategy consistent with the asset allocation and rebalancing objectives, and will be reviewed annually.

The following tables highlight Emerging Investment Manager use by Minority and Women Businesses Enterprises classification, asset class, and total fund.

December 31, 2016

Minority

12.6%

Women

  4.2%

Disabled

   0%

Total Emerging Manager Utilization 16.8%

 

EM_and_Brokers_Domestic_Equity_Pie EM_and_Brokers_Fixed_Income_Pie
EM_and_Brokers_Intl_Equity_Pie EM_and_Brokers_Alternatives_Pie


M/W/DBE Broker/Dealers

The Board encourages the use of broker/dealer firms that are Minority, Woman, or Disabled-Owned Businesses2 and has adopted a policy which sets forth goals for increasing the utilization.  The Fund encourages its Investment Managers to assist the Fund in implementing this policy, providing an opportunity for such broker/dealers who are capable of providing best price and execution.

M/W/DBE Broker/Dealers1

Minimum Annual Goals

Domestic Equity

35% of commissions

International Equity

10% of commissions

Intl. Small Cap

3% of commissions  

Emerging Markets 3% of commissions
Fixed Income 10% of volume
Transition Management 40% of commissions

 

The Fund's Investment Managers shall give consideration to certified Minority, Woman, or Disabled-Owned Businesses when executing trades for the Fund with preference to those entities located in the State of Illinois, subject to each Investment Manager, as fiduciary to the Fund, being responsible for implementing trading policies that result in the best price and execution of any broker/dealer selected.


1 - Utilization goals affirmed and modified at October 2, 2014 Retirement Board meeting.
2 - As defined in the Business Enterprise for Minorities, Women and Persons with Disabilities Act, 30 ILCS 575/0.01, et seq.