REPORT DIGEST

 

 

ILLINOIS STATE

BOARD 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:

  March 12, 2009

 

 

 

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

 

     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.}

 


 

 

ILLINOIS STATE BOARD OF INVESTMENT

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........................

$  154,620,159

162,205,372

16,624,470

594,579,054

(1,623,821,419)

$  (695,792,364)

   (39,860,694)

$ (735,653,058)

$     (1,989,942)

$ (737,643,000)

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

INVESTMENT PORTFOLIO ANALYSIS – Fair Value

JUNE 30, 2008

JUNE 30, 2007

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.............................................................

Bank Loans....................................................................................

Forward Foreign Currency Contracts...............................................

     Total Investment Portfolio..........................................................

$    852,336,514

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

U.S. Equity....................................................................................

U.S. Equity Hedge Funds................................................................

International Equity.........................................................................

Fixed Income.................................................................................

Real Estate....................................................................................

Private Equity.................................................................................

Infrastructure.................................................................................

Bank Loans....................................................................................

Cash..............................................................................................

      Total........................................................................................

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.....................................................................

U.S. Equities................................................................................

Russell 300 Index...........................................................................

Wilshire 500 Index..........................................................................

International Equities..................................................................

MSCI-EAFE Index.........................................................................

Fixed Income...............................................................................

Lehman U.S. Universal Bond Index.................................................

Real Estate..................................................................................

NCRIEF Real Estate Index.............................................................

(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

During Engagement Period:  William R. Atwood

Currently:  William R. Atwood