1999 IMRF Comprehensive Annual Financial Report

Investments Section5. Emerging market portfolios are also considered to be part of the international equity portfolio. Theemerging market portfolio shall be diversified both geographically and by industry sector. Markets willbe selected based on market liquidity, availability of information, and official regulation, including fiscaland foreign exchange repatriation rules. The emerging market manager may generally invest up to 35percent of its assets in a single country. Holdings of any one issuer, at the time of purchase, shallgenerally be limited to 5 percent of the portfolio’s market value.6. Managers may engage in various transactions to hedge currency.E. Fixed Income Investment Guidelines1. Bonds, notes or other obligations of indebtedness issued or guaranteed by the U.S. government, itsagencies or instrumentalities are permissible investments.2. Debt obligations of any single U.S. corporation are generally subject to a maximum holding of 15percent of a manager’s portfolio assets at market value. Generally, no more than 20 percent of amanager’s assets at market value may be invested in securities rated below “BBB” or “Baa” at the time ofpurchase. The use of debt instruments rated lower than “BBB” or “Baa” or non-rated instruments doesnot require prior Board approval for investment managers using high-yield disciplines.3. Managers may invest in mortgage backed securities.4. Private placements may be authorized by the Board on an individual manager basis.5. Bonds or other obligations of foreign countries and corporations payable in U.S. and non-U.S. fundsare authorized by the Board for specific managers.6. Global fixed income portfolio holdings are considered to be part of the fixed income portfolio. BothU.S. and non-U.S. dollar denominated fixed income securities are permissible investments.Government and government agency obligations may be purchased without limitation. Debtobligations of any single corporation are generally subject to a maximum of 5 percent of the manager’sassets at market value. The manager shall not invest in securities rated lower than “BBB” by Standard &Poor’s, “Baa” by Moody’s, or other such equivalent ratings issued by other recognized rating agencies.No more than 15 percent of the manager’s assets at market value shall be invested in obligations rated“BBB,” “Baa,” or such equivalent ratings. A global fixed income manager may engage in varioustransactions to hedge currency.7. The use of exchange traded financial futures, exchange traded options on financial futures, and over thecounter options is subject to individual manager guidelines. The use of leverage is not allowed.F. Equity Real Estate Investment GuidelinesReal estate is an authorized investment of the Fund provided that such investment at the time ofcommitment would not cause the market value of such investments to exceed 5 percent of the marketvalue of the total Fund.42 Illinois Municipal Retirement Fund