Imrf Market Manager Summary 2008

ILLINOIS MUNICIPAL RETIREMENT FUND MEETING NO. 08-07 REGULAR MEETING OF THE BOARD OF TRUSTEES The Regular Meeting of the Board of Trustees was held at 9:00 a.m., July 25, 2008, in the Fund Office at 2211 York Road, Suite 400, Oak Brook, Illinois. Mr. Bochmann presided as Chair and called the meeting to order. Ms. Enright called the roll: Present: Shoop, Thompson, Voller, Bochmann, Faklis, Rademacher, Rasins, Ross Absent: None Ms. Ford and Mr. Kelly from Ennis Knupp and Associates, Mr. Moss from Seyfarth Shaw, LLP, and representatives from Loop Capital, MR Beal and Cheevers and Company were also present. (08-07-01) (Investment Manager Activities - Ennis Knupp and Associates) Ms. Ford and Mr. Kelly gave the following report to the Board on the activities of IMRF’s investment managers:

07/25/08

Page

23759

Illinois Municipal Retirement Fund Market and Manager Summary June 30, 2008

vox 312 715 1700 10 South Riverside Plaza, Suite 1600 Chicago, Illinois 60606-3709

fax 312 715 1952 www.ennisknupp.com

The return and market value information in this report is preliminary. Return data prior to December 31, 2004, was calculated and provided by Mercer Investment Consulting. EnnisKnupp began calculating returns, based on Northern Trust information, as of January 1, 2005. Rates of return and market values ending June 30, 2008, have not yet been reconciled and are considered preliminary.

MARKET ENVIRONMENT OVERVIEW MAJOR MARKET RETURNS 1 Month

Second Quarter

Year-To-Date

1 Year Ending 6/30/08 -12.5 %

3 Years Ending 6/30/08

5 Years Ending 6/30/08

10 Years Ending 6/30/08

Dow Jones Wilshire 5000 Index

-8.1 %

-1.6 %

-10.9 %

MSCI All Country World ex-U.S. Index

-8.2

-1.1

-10.2

-6.6

15.7

18.9

7.3

MSCI EAFE Index

-8.2

-2.3

-11.0

-10.6

12.8

16.7

5.8

-10.0

-0.9

-11.8

4.6

27.1

29.7

15.2

MSCI All Country World Index

-8.2

-1.6

-10.7

-9.3

10.3

13.1

4.9

Lehman Brothers Aggregate Bond Index

-0.1

-1.0

1.1

7.1

4.1

3.9

5.7

MSCI Emerging Markets Index

5.0 %

8.7 %

3.6 %

Financial markets in June were dominated by news of deteriorating financial companies and soaring oil prices, as reflected in the astonishing -18.7% plunge of the S&P Financial Sector Index and the +2.2% rise of the S&P Energy Sector Index, the only sector to escape the month in positive territory. Oil finished at $140 per barrel, which translated into a $4.09 average price for a gallon of gasoline across the country. U.S. stocks closed out the second quarter just shy of an official bear market, marked by a nearly 20% drop from the previous high set in October 2007. The U.S. equity market, as measured by the DJ Wilshire 5000 Index, fell -8.1% in June, the worst monthly performance since September 2002. Small cap stocks were slightly stronger than their large cap counterparts while growth stocks outperformed value stocks across the capitalization spectrum. Non-U.S. stocks, as measured by the MSCI All-Country World ex-U.S. Index, slid -8.2% in June. Developed nations, as measured by the MSCI EAFE Index, matched the losses of the broad Index with a -8.2% decline while emerging markets tumbled -10.0%. With its abundant natural resources, Canada handily outperformed (-3.6%) while losses were also lighter in Japan (-6.8%). U.S. investors in foreign markets benefited from a mildly depreciating U.S. dollar. As in the U.S., small cap and growth stocks proved more resistant to the harsh climate than large cap and value stocks. The U.S. bond market, as measured by the Lehman Brothers Aggregate Bond Index, fell -0.1% during June. Rapidly rising yields spurred by inflation concerns and speculation of Fed action during the first half of the month were offset by falling yields in the latter half as slowing growth and nervousness in the stock market drove investors to the fixed income market. The government sector (+0.6%) was the strongest performer as investors flocked away from the credit sector (-0.5%). The non-index high yield sector shed -2.8% after two consecutive months of strong gains. The Fed left overnight interests rates at a 2.0% target and signaled that they were likely to remain that way until at least later this year.

Ennis Knupp + Associates

1

MARKET ENVIRONMENT OVERVIEW

U.S. EQUITY MARKET RETURNS ENDING 6/30/08 Month

Second Quarter

Year-ToDate

1 Year Ending 6/30/08

3 Years Ending 6/30/08

5 Years Ending 6/30/08

10 Years Ending 6/30/08

DJ Wilshire 5000 Index

-8.1 %

-1.6 %

-10.9 %

-12.5 %

5.0 %

8.7 %

3.6 %

Russell 1000 Index

-8.3

-1.9

-11.2

-12.4

4.8

8.2

3.4

Russell 1000 Value Index

-9.6

-5.3

-13.6

-18.8

3.5

8.9

4.9

Russell 1000 Growth Index

-7.2

1.2

-9.1

-6.0

5.9

7.3

1.0

Russell MidCap Index

-8.0

2.7

-7.6

-11.2

6.8

13.1

8.1

Russell MidCap Value Index

-8.9

0.1

-8.6

-17.1

5.0

13.0

8.4

Russell MidCap Growth Index

-7.3

4.6

-6.8

-6.4

8.2

12.3

5.6

Russell 2000 Index

-7.7

0.6

-9.4

-16.2

3.8

10.3

5.5

Russell 2000 Value Index

-9.6

-3.5

-9.8

-21.6

1.4

10.0

7.5

Russell 2000 Growth Index

-6.0

4.5

-8.9

-10.8

6.1

10.4

2.8

2

Ennis Knupp + Associates

MARKET ENVIRONMENT OVERVIEW

INTERNATIONAL EQUITY MARKET RETURNS ENDING 6/30/08 Month

Second Quarter

Year-ToDate

1 Year Ending 6/30/08

3 Years Ending 6/30/08

5 Years Ending 6/30/08

10 Years Ending 6/30/08

MSCI All Country World ex-U.S. Index

-8.2 %

-1.1 %

-10.2 %

-6.6 %

15.7 %

18.9 %

7.3 %

MSCI All Country World ex-U.S. Growth Index

-7.1

1.0

-7.9

-1.4

17.3

18.4

5.7

MSCI All Country World ex-U.S. Value Index

-9.3

-3.2

-12.5

-11.8

14.0

19.3

8.8

MSCI EAFE Index

-8.2

-2.3

-11.0

-10.6

12.8

16.7

5.8

-10.0

-0.9

-11.8

4.6

27.1

29.7

15.2

Month

Second Quarter

Year-ToDate

1 Year Ending 6/30/08

3 Years Ending 6/30/08

5 Years Ending 6/30/08

10 Years Ending 6/30/08

LB Aggregate Bond Index

-0.1 %

-1.0 %

1.1 %

7.1 %

4.1 %

3.9 %

5.7 %

Lehman Brothers Universal Bond Index

-0.3

-0.8

0.8

6.2

4.1

4.2

5.8

LB Government Bond Index

0.6

-1.9

2.1

9.7

4.6

3.8

5.7

LB Credit Index

-0.5

-0.9

-0.5

3.8

2.8

3.3

5.6

LB Mortgage Index

-0.1

-0.5

1.9

7.8

4.8

4.6

5.8

LB Corporate High Yield Bond Index

-2.8

1.8

-1.3

-2.3

4.5

6.9

4.9

Citigroup 90-Day T-Bill Index

0.1

0.4

1.1

3.3

4.1

3.1

3.5

MSCI Emerging Markets Index

FIXED INCOME MARKET RETURNS ENDING 6/30/08

Ennis Knupp + Associates

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MARKET ENVIRONMENT OVERVIEW

The exhibits above show the performance of the major capital markets during the quarter and one-year periods.

The exhibits above show the historical performance of the major capital markets and the amount of risk (volatility of returns) incurred. Points near the top of the chart represent a greater return and points near the right of the chart indicate greater volatility.

4

Ennis Knupp + Associates

MARKET ENVIRONMENT U.S. STOCK MARKET

The Dow Jones Wilshire 5000 Index is the broadest available measure of the aggregate domestic stock market. It includes all domestic common stocks with readily available price information. The exhibits above show the performance of the sectors that comprise the Dow Jones Wilshire 5000 Index. The percentage below each bar indicates the sector's weight within the Dow Jones Wilshire 5000 Index at quarter-end.

The exhibits above illustrate the performance of stock investment styles according to capitalization (large and small) and style characteristics (value and growth). The percentage below each bar indicates the segment's weight within the Dow Jones Wilshire 5000 Index at quarter-end. Ennis Knupp + Associates

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MARKET ENVIRONMENT U.S. BOND MARKET

The Lehman Brothers Aggregate Bond Index is a broad measure of the U.S. investment grade fixed income market. The Index consists of the corporate, government, and mortgage-backed indexes and includes credit card, auto, and home equity loan-backed securities. The exhibits above show the performance of the sectors that comprise the broad domestic bond market. The percentage below each bar indicates the sector's weight within the Lehman Brothers Aggregate Bond Index at quarter-end.

The exhibit above illustrates yields of Treasury securities of various maturities as of June 30, 2007, March 31, 2008, and June 30, 2008. 6

Ennis Knupp + Associates

MARKET ENVIRONMENT NON-U.S. STOCK MARKETS

The MSCI All Country World ex-U.S. Index is a capitalization-weighted index of stocks representing 22 developed stock markets and 25 emerging stock markets around the world. The exhibits above show the performance of the regions that comprise the MSCI All Country World ex-U.S. Index at quarter-end.

The exhibit above illustrates the percentage of the non-U.S. stock market, as measured by the MSCI All Country World ex-U.S. Index, that each region represents.

Ennis Knupp + Associates

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TOTAL FUND Policy Allocations

Illinois Municipal Retirement Fund

TOTAL FUND ALLOCATION VS. TARGET AS OF 6/30/08

Ennis Knupp + Associates

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TOTAL FUND Illinois Municipal Retirement Fund

Policy Allocations

ACTUAL VS. POLICY Asset Allocation

Policy Allocation

U.S. Equity

37.3%

39.0%

Fixed Income

37.3

36.0

1.3

Non-U.S. Equity

17.5

15.0

2.5

Real Estate

2.7

4.0

-1.3

Alternative Investments

4.3

5.0

-0.7

Cash

1.0

1.0

0.0

Asset Class

Difference -1.7%

The current policy states that when the actual allocations of the asset classes differ by more than four percentage points from their policy allocations, a recommendation for re-balancing will be made to the Board of Trustees. As of June 30, 2008, all asset classes were within their acceptable policy ranges.

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Ennis Knupp + Associates

TOTAL FUND Policy Allocations

Illinois Municipal Retirement Fund U.S. EQUITY ALLOCATION VS. TARGET AS OF 6/30/08

FIXED INCOME ALLOCATION VS. TARGET AS OF 6/30/08

NON-U.S. EQUITY ALLOCATION VS. TARGET AS OF 6/30/08

Ennis Knupp + Associates

11

ASSET ALLOCATION AS OF 6/30/08 ($ in millions) Alliance Holland Jacobs Levy NTI S&P 500/Citigroup Growth Index Sands Dodge & Cox Harris LSV NTI S&P 500/Citigroup Value Index Progress NTI MarketCap Equity Index Fund Buford Copper Rock Cordillera Fortaleza Frontier Pyramis Small Co. Dimensional Small Cap Value Inv. Counselors of Maryland Dimensional Micro Cap Wall Street U.S. Equity EARNEST Partners Piedmont Taplin Canida & Habacht BlackRock Core Plus LM Capital Progress - Fixed Income Western NTI Lehman Aggregate Bond Index BlackRock Enhanced MacKay Shields Pyramis High Yield Fixed Income Arrowstreet Boston Company BPI Brandes Brown EARNEST Partners GlobeFlex McKinley Capital William Blair NTI EAFE Index Genesis AXA Rosenberg Non-U.S. Equity BlackRock Granite Fund Sentinel Lazard Freres Morgan Stanley Buckhead Morgan Stanley Prime Property Olympus Real Estate Fund II Prudential SVI I Security Capital Real Estate Abbott Capital Adams Street VPAF Muller & Monroe Pantheon Permira UK Venture III Grosvenor Institutional Partners Harris Aurora Mesirow Multi Manager Fund Cozad/Westchester Forest Investment Assoc. Alternative Investments Cash Cash Total Fund Percent of Total

U.S. Equity $534 457 0 1,261 467 262 632 469 1,303 232 1,003 33 107 18 21 322 484 186 426 77 183 8,475 -----------------------------------------------$8,475 37.3%

Non-U.S. Equity ----------------------------------$387 1 0 740 85 234 213 379 830 540 372 194 3,976 ----------------------$3,976 17.5%

U.S. Bond ----------------------$220 238 588 528 606 229 1,009 3,179 1,112 377 374 8,462 -----------------------------------$8,462 37.3%

Real Estate -----------------------------------------------$106 89 31 207 106 3 0 61 604 --------$72 48 120 --$724 3.2%

Private Equity --------------------------------------------------------$321 0 7 142 0 -----470 --$470 2.1%

Absolute Return -------------------------------------------------------------$120 136 122 --379 --$379 1.7%

Cash

Total -------------------------------------------------------------------$222 222 $222 1.0%

$534 457 0 1,261 467 262 632 469 1,303 232 1,003 33 107 18 21 322 484 186 426 77 183 8,475 $220 238 588 528 606 229 1,009 3,179 1,112 377 374 8,462 $387 1 0 740 85 234 213 379 830 540 372 194 3,976 $106 89 31 207 106 3 0 61 604 $321 0 7 142 0 120 136 122 72 48 969 $222 222 $22,707 100.0%

Percent of Total 2.4 % 2.0 0.0 5.6 2.1 1.2 2.8 2.1 5.7 1.0 4.4 0.1 0.5 0.1 0.1 1.4 2.1 0.8 1.9 0.3 0.8 37.3 1.0 % 1.1 2.6 2.3 2.7 1.0 4.4 14.0 4.9 1.7 1.6 37.3 1.7 % 0.0 0.0 3.3 0.4 1.0 0.9 1.7 3.7 2.4 1.6 0.9 17.5 0.5 % 0.4 0.1 0.9 0.5 0.0 0.0 0.3 2.7 1.4 % 0.0 0.0 0.6 0.0 0.5 0.6 0.5 0.3 0.2 4.3 1.0 % 1.0 100.0 %

Policy

39.0 %

36.0 %

15.0 %

4.0 %

5.0 % 1.0 % 100.0 %

TOTAL FUND Performance

Illinois Municipal Retirement Fund

RETURN SUMMARY ENDING 6/30/08 Month

Second Quarter

Year-To-Date

1 Year Ending 6/30/08

3 Years Ending 6/30/08

5 Years Ending 6/30/08

10 Years Ending 6/30/08

Total Fund

-4.6 %

-0.3 %

-6.0 %

-4.1 %

7.6 %

9.8 %

6.6 %

Total Fund Benchmark

-4.4

-0.8

-4.9

-2.3

7.0

8.8

6.0

U.S. Equity

-7.8

-0.4

-10.8

-11.6

5.6

9.8

5.3

DJ Wilshire 5000 Index

-8.1

-1.6

-10.9

-12.5

5.0

8.7

3.6

Fixed Income

-0.5

-0.5

0.3

4.9

4.0

4.3

5.4

LB Aggregate Bond Index

-0.1

-1.0

1.1

7.1

4.1

3.9

5.7

Non-U.S. Equity

-7.8

-0.7

-10.6

-8.4

15.6

19.5

9.9

MSCI All Country World ex-U.S. Index

-8.2

-1.1

-10.2

-6.6

15.7

18.9

7.3

Real Estate

-1.7

1.8

1.9

4.1

13.0

11.7

9.3

Blended Benchmark

0.6

1.9

3.7

11.4

10.6

9.6

8.6

Alternative Investments

-0.2

1.3

0.6

8.5

14.9

14.3

11.5

Alternatives Custom Benchmark

0.9

2.9

5.8

12.0

12.0

12.1

13.4

The Total Fund's investments fell -4.6% during the month, trailing the performance of the Total Fund Benchmark by approximately 0.2%. Disappointing results came from the fixed income, real estate, and alternative investments components while U.S. and non-U.S. equity outperformed their respective benchmarks. Each asset class experienced a negative return in June. During the second quarter, the Total Fund fell -0.3%; however, relative results were favorable as the Total Fund Benchmark lost -0.8%.

The Alternatives Custom Benchmark is based on an annualized rate of return of 12.0%. Prior to 2004, the Benchmark was based on an annual return of 13.0%. Prior to 2003, it was based on an annual return of 15.0%. Ennis Knupp + Associates

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MANAGER SUMMARY Illinois Municipal Retirement Fund

Large Cap U.S. Equity Managers

RETURN SUMMARY LARGE CAP GROWTH ENDING 6/30/08 Month

Second Quarter

Alliance

-6.3 %

2.9 %

Blended Benchmark

-7.2

1.2

Russell 1000 Growth Index

-7.2

1.2

Holland

-5.8

Russell 1000 Growth Index NTI S&P 500/Citigroup Growth Index

Year-To-Date -10.8 %

1 Year Ending 6/30/08

3 Years Ending 6/30/08

5 Years Ending 6/30/08

Since Inception

-3.3 %

7.0 %

8.5 %

3.2 %

-9.1

-6.0

5.5

6.7

2.6

-9.1

-6.0

5.9

7.3

2.6

4.2

-5.0

-3.3

5.3

7.6

10.1

-7.2

1.2

-9.1

-6.0

5.9

7.3

8.2

-5.9

2.0

-8.1

-5.9

5.7

6.8

2.2

S&P 500/Citigroup Growth Index

-5.9

2.1

-8.1

-5.8

5.6

6.8

2.2

Sands

-6.5

4.9

-10.9

-0.4

4.4

--

8.2

Blended Benchmark

-7.2

1.2

-9.1

-6.0

5.5

--

6.5

Russell 1000 Growth Index

-7.2

1.2

-9.1

-6.0

5.9

--

6.9

Inception Date 1/31/02

9/30/94

7/31/01

9/30/03

The Fund's large cap growth managers in aggregate exceeded the return of the Blended Benchmark in June as each manager outperformed. Holland exceeded the benchmark primarily due to favorable sector allocation while financials holdings such as TD Ameritrade and Goldman Sachs outperformed the battered Index sector. The greatest contributions to Alliance's outperformance were a significant underweight allocation to the consumer discretionary sector and strong stock selection among biotech and pharmaceutical names including Alcon, Celgene, Genentech, and Teva. Sands outpaced the benchmark return on the strength of the portfolio's sector allocation while National Oilwell Varco, Schlumberger, and Genzyme led individual stock contributors. Google, Apple, and Las Vegas Sands were the largest detractors for the month. The NTI S&P 500/Citigroup Growth Index Fund added value as the Index outperformed the component benchmark.

The Fund's large cap growth portfolio has performed favorably over the long-term.

The Blended Benchmark is currently the Russell 1000 Growth Index. The Blended Benchmark's historical returns prior to January 1, 2006 reflect those of the S&P 500/Barra Growth Index. 14

Ennis Knupp + Associates

MANAGER SUMMARY Large Cap U.S. Equity Managers

Illinois Municipal Retirement Fund

RETURN SUMMARY LARGE CAP VALUE ENDING 6/30/08 Month Dodge & Cox

-10.5 %

Year-To-Date

1 Year Ending 6/30/08

-4.1 %

-14.9 %

-20.2 %

3.6 %

--

9.2 %

Second Quarter

3 Years Ending 6/30/08

5 Years Ending 6/30/08

Since Inception

Blended Benchmark

-9.6

-5.3

-13.6

-18.8

3.7

--

8.0

Russell 1000 Value Index

-9.6

-5.3

-13.6

-18.8

3.5

--

8.6

Harris

-7.1

1.3

-9.6

-8.9

7.8

13.1

7.6

Blended Benchmark

-9.6

-5.3

-13.6

-18.8

3.7

8.7

2.3

Russell 1000 Value Index

-9.6

-5.3

-13.6

-18.8

3.5

8.9

4.2

-10.8

-5.6

-15.0

-20.3

4.0

11.0

12.4

Blended Benchmark

-9.6

-5.3

-13.6

-18.8

3.7

8.7

10.2

Russell 1000 Value Index

LSV

-9.6

-5.3

-13.6

-18.8

3.5

8.9

10.2

NTI S&P 500/Citigroup Value Index

-11.2

-7.7

-16.0

-20.1

3.1

8.3

2.3

S&P 500/Citigroup Value Index

-11.2

-7.8

-16.0

-20.2

3.2

8.4

2.3

Inception Date 8/31/03

12/31/00

12/31/02

6/30/99

The Total Fund's large cap value managers in aggregate trailed the return of the Blended Benchmark during the month as only Harris outperformed. The manager's strong relative return was driven by an overweight exposure to materials stocks at the expense of financials sector positions. Dodge & Cox faced steeper declines than the benchmark due to its positions in Wachovia and American International Group, both of which experienced dramatic price declines amid organizational issues and ongoing loan portfolio concerns. LSV lagged the Index as a result of both weak sector allocation and stock selection. Overweight allocations to the financials and consumer discretionary sectors at the expense of the defensive utilities sector hurt performance while individual holdings Comerica Bank, Huntington Bancshares, and Goodyear surrendered additional value. The NTI S&P 500/Citigroup Value Index Fund hampered the aggregate return as the Index trailed the component benchmark. The Fund's large cap value managers in aggregate outperformed the Blended Benchmark over the trailing one-, three-, and five-year periods.

The Blended Benchmark is currently the Russell 1000 Value Index. The Blended Benchmark's historical returns prior to January 1, 2006 reflect those of the S&P 500/Barra Value Index. Ennis Knupp + Associates

15

MANAGER SUMMARY Illinois Municipal Retirement Fund

Core U.S. Equity Managers

RETURN SUMMARY ACTIVE CORE ENDING 6/30/08 Month

Second Quarter

Progress

-7.1 %

0.9 %

DJ Wilshire 5000 Index

-8.1

-1.6

1 Year Ending 6/30/08

Year-To-Date -9.4 %

3 Years Ending 6/30/08

-9.4 %

-10.9

-12.5

Since Inception

6.2 %

5.6 %

5.0

4.3

Inception Date 12/31/04

The Progress portfolio was added to the IMRF investment program in December of 2004. The portfolio currently invests in fourteen underlying emerging investment managers. The underlying investment managers have varying investment styles, but in aggregate the portfolio is benchmarked to the DJ Wilshire 5000 Index. Progress exceeded the benchmark in June as large allocations to Atlanta Life and Piedmont added value. Palisades was the weakest contributor during the month.

The NTI MarketCap Equity Index Fund approximated the return of the DJ Wilshire 5000 Index over all time periods, while experiencing slightly negative tracking in recent years. RETURN SUMMARY CORE U.S. EQUITY INDEX FUND ENDING 6/30/08 Month

Second Quarter

Year-To-Date

1 Year Ending 6/30/08

3 Years Ending 6/30/08

5 Years Ending 6/30/08

Since Inception

Inception Date 12/31/84

NTI MarketCap Equity Index Fund

-8.2 %

-1.6 %

-11.2 %

-12.9 %

4.8 %

8.6 %

11.6 %

DJ Wilshire 5000 Index

-8.1

-1.6

-10.9

-12.5

5.0

8.7

11.6

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Ennis Knupp + Associates

MANAGER SUMMARY Small Cap U.S. Equity Managers

Illinois Municipal Retirement Fund

RETURN SUMMARY SMALL CAP GROWTH ENDING 6/30/08 Month

Second Quarter

Year-To-Date -10.5 %

1 Year Ending 6/30/08 -4.3 %

3 Years Ending 6/30/08

5 Years Ending 6/30/08

Since Inception

Inception Date

--

--

12.3 %

10/31/06

Buford

-8.0 %

3.1 %

Russell 2000 Growth Index

-6.0

4.5

-8.9

-10.8

--

--

-0.2

Copper Rock

-5.1

5.7

-20.4

-16.9

--

--

3.0

Russell 2000 Growth Index

-6.0

4.5

-8.9

-10.8

--

--

3.4

Cordillera

-7.3

1.7

-22.4

-24.6

--

--

-6.1

Russell 2000 Growth Index

-6.0

4.5

-8.9

-10.8

--

--

3.4

Fortaleza

-4.6

7.1

-15.2

-11.9

--

--

0.2

Russell 2000 Growth Index

-6.0

4.5

-8.9

-10.8

--

--

-1.7

Frontier

-7.0

4.0

-5.4

-8.7

9.0

12.1

14.1

Russell 2000 Growth Index

-6.0

4.5

-8.9

-10.8

6.1

10.4

7.1

Pyramis Small Co.

-4.1

5.5

-3.2

-1.7

13.6

18.5

15.2

Russell 2000 Growth Index

-6.0

4.5

-8.9

-10.8

6.1

10.4

7.1

9/30/06

9/30/06

11/30/06

6/30/88

6/30/88

The Total Fund's small cap growth portfolio exceeded the return of the Russell 2000 Growth Index during the month as Copper Rock, Fortaleza, and Pyramis outperformed. Copper Rock's strong performance was attributable to companies which benefited from spiking commodities prices including coal producer Massey Energy (+45%) and oil drilling supplier T3 Energy (+23%). Fortaleza was able to advance within the health care and energy sectors though all other sectors were negative for the month. Pyramis continued to benefit from a significant overweight allocation to energy stocks while materials holdings in aggregate also achieved a positive return. Frontier lagged the Index as its overweight exposure to energy and underweight exposure to financials could not offset the headwinds from overweight positions in the autos & transportation and consumer discretionary sectors. The manager has trimmed positions in certain energy holdings in recognition of their sensitivity to a sudden drop in oil prices following the historic run-up. Underperformance from Cordillera was almost entirely attributable to an underweight allocation to the energy and integrated oil sectors. Stock selection results were mixed with consumer discretionary and health care holdings detracting the most from relative performance. The small cap growth portfolio has fared very well relative to the benchmark over the long-term, outperforming considerably in each of the trailing periods.

Ennis Knupp + Associates

17

MANAGER SUMMARY Illinois Municipal Retirement Fund

Small Cap U.S. Equity Managers

RETURN SUMMARY SMALL CAP VALUE ENDING 6/30/08 Month

Second Quarter

Year-To-Date

1 Year Ending 6/30/08

-12.2 %

-25.5 %

3 Years Ending 6/30/08

5 Years Ending 6/30/08

Since Inception

Inception Date

1.9 %

13.1 %

13.4 %

12/31/95

Dimensional Small Cap Value

-9.8 %

-5.9 %

Russell 2000 Value Index

-9.6

-3.5

-9.8

-21.6

1.4

10.0

10.4

Inv. Counselors of Maryland

-8.2

1.5

-6.1

-12.0

7.6

13.2

14.3

Russell 2000 Value Index

-9.6

-3.5

-9.8

-21.6

1.4

10.0

10.6

3/31/99

The Fund's small cap value portfolio exceeded the return of the Russell 2000 Value Index in June as the Investment Counselors of Maryland portfolio outperformed. The manager established several positions in beaten-down industries such as aerospace, autos, and retail. DFA shed -9.8% during the month with the small cap and value biases putting the portfolio at a considerable disadvantage given the market environment. On the positive side, favorable sector allocation held up relative performance. The small cap value portfolio in aggregate has outperformed the return of the Russell 2000 Value Index over each of the longer-term periods shown above.

RETURN SUMMARY MICRO CAP ENDING 6/30/08 Month

Second Quarter

Year-To-Date

1 Year Ending 6/30/08

-13.2 %

-21.9 %

3 Years Ending 6/30/08

5 Years Ending 6/30/08

Since Inception

Inception Date

2.1 %

10.6 %

11.4 %

6/30/87

Dimensional Micro Cap

-8.8 %

-3.5 %

Russell 2000 Growth Index

-6.0

4.5

-8.9

-10.8

6.1

10.4

6.2

Wall Street

-5.9

1.2

-17.6

-20.3

6.2

12.6

15.8

Russell 2000 Growth Index

-6.0

4.5

-8.9

-10.8

6.1

10.4

6.8

Russell 2000 Index

-7.7

0.6

-9.4

-16.2

3.8

10.3

9.7

6/30/90

The Total Fund's micro cap portfolio lagged the Russell 2000 Growth Index during the month as DFA was a significant detractor. The manager's lagging performance was entirely due to the portfolio's smaller cap composition relative to the benchmark's growth tilt. Wall Street slightly outperformed amid wide return dispersions from its varying sectors. Over the long-term periods shown above, the micro cap portfolio has significantly exceeded the return of the benchmark.

18

Ennis Knupp + Associates

MANAGER SUMMARY Non-U.S. Equity Managers

Illinois Municipal Retirement Fund

RETURN SUMMARY NON-U.S. EQUITY LARGE CAP GROWTH ENDING 6/30/08 Month

Second Quarter

Year-To-Date

1 Year Ending 6/30/08

-6.0 %

3 Years Ending 6/30/08

5 Years Ending 6/30/08

Since Inception

Inception Date

-3.7 %

--

--

12.6 %

2/28/06

GlobeFlex

-6.1 %

2.5 %

MSCI All Country World ex-U.S. Index

-8.2

-1.1

-10.2

-6.6

--

--

9.8

MSCI All Country World ex-U.S. Growth Index

-7.1

1.0

-7.9

-1.4

--

--

11.9

EARNEST Partners

-7.6

2.1

-8.7

0.8

23.3

--

24.1

MSCI All Country World ex-U.S. Index

-8.2

-1.1

-10.2

-6.6

15.7

--

17.3

MSCI All Country World ex-U.S. Growth Index

-7.1

1.0

-7.9

-1.4

17.3

--

18.3

William Blair

-7.8

-1.1

-11.4

-6.6

16.3

20.1

18.0

MSCI All Country World ex-U.S. Index

-8.2

-1.1

-10.2

-6.6

15.7

18.9

17.1

MSCI All Country World ex-U.S. Growth Index

-7.1

1.0

-7.9

-1.4

17.3

18.4

16.7

McKinley Capital

-4.5

2.4

-8.7

-5.0

--

--

11.9

MSCI All Country World ex-U.S. Index

-8.2

-1.1

-10.2

-6.6

--

--

9.8

MSCI All Country World ex-U.S. Growth Index

-7.1

1.0

-7.9

-1.4

--

--

11.9

Brown

-7.6

-3.9

-16.1

-14.9

11.3

--

14.3

MSCI All Country World ex-U.S. Index

-8.2

-1.1

-10.2

-6.6

15.7

--

17.3

MSCI All Country World ex-U.S. Growth Index

-7.1

1.0

-7.9

-1.4

17.3

--

18.3

8/31/04

8/31/02

2/28/06

8/31/04

The Total Fund's large cap non-U.S. equity managers in aggregate exceeded the MSCI All-Country World ex-U.S. Index during the month. McKinley led all managers as energy and materials holdings boosted its relative return. The manager is considering adding positions in these sectors while they believe China, South Korea, and Canada are attractive from a country perspective. In addition to correctly playing the materials, financials, and energy sectors, GlobeFlex benefited from strong performance within the U.K., Hong Kong, and Australia. EARNEST Partners outpaced the Index with health care stocks making the greatest impact. Czech pharmaceutical company Zentiva (+14%) and ICON Clinical Research (+7%) of Ireland were notable contributors. Despite failing to outperform the Growth Index, Brown's favorable regional allocation, particularly overweight exposure to Japan and underweight exposure to emerging Asia, offset poor sector selection and allowed the manager to surpass the primary benchmark. RETURN SUMMARY NON-U.S. EQUITY CORE ENDING 6/30/08 Month

Second Quarter

Since Inception

Inception Date

Arrowstreet

-8.3 %

-1.3 %

-4.2 %

2/29/08

MSCI All Country World ex-U.S. Index

-8.2

-1.1

-3.3

Arrowstreet fell just short of the benchmark for the month and quarter and remains behind the Index over the brief since-inception period. Ennis Knupp + Associates

19

MANAGER SUMMARY Illinois Municipal Retirement Fund

Non-U.S. Equity Managers

RETURN SUMMARY NON-U.S. EQUITY LARGE CAP VALUE ENDING 6/30/08 Month

Second Quarter

Year-To-Date

1 Year Ending 6/30/08

3 Years Ending 6/30/08

5 Years Ending 6/30/08

Since Inception

Inception Date

-15.1 %

11.4 %

17.9 %

13.8 %

9/30/95

Brandes

-9.7 %

-2.1 %

-13.8 %

MSCI All Country World ex-U.S. Index

-8.2

-1.1

-10.2

-6.6

15.7

18.9

7.6

MSCI All Country World ex-U.S. Value Index

-9.3

-3.2

-12.5

-11.8

14.0

19.3

--

Brandes had a lackluster month in both absolute and relative terms. The manager suffered from weak performers in the commercial banks, communications equipment, and insurance industries, including Mizuho Financial Group (Japan), Ericsson Telephone Company (Sweden), and AEGON Group (Netherlands), respectively. RETURN SUMMARY NON-U.S. EQUITY INDEX ENDING 6/30/08 Month

Second Quarter

Year-To-Date

1 Year Ending 6/30/08

3 Years Ending 6/30/08

5 Years Ending 6/30/08

Since Inception

NTI EAFE Index

-8.1 %

-2.0 %

-10.6 %

-10.1 %

13.2 %

17.1 %

3.9 %

MSCI EAFE Index

-8.2

-2.3

-11.0

-10.6

12.8

16.7

3.5

Inception Date 12/31/99

The NTI EAFE Index approximated the return of the MSCI EAFE Index over the one-month and trailing one-year periods with positive tracking during all periods shown above. RETURN SUMMARY NON-U.S. EMERGING MARKETS ENDING 6/30/08 Month Genesis MSCI Emerging Markets Index

Second Quarter

-8.6 % -10.0

Year-To-Date

-1.0 %

1 Year Ending 6/30/08

-7.9 %

-0.9

-11.8

3 Years Ending 6/30/08

Since Inception

2.7 %

24.7 %

25.0 %

4.6

27.1

24.0

Inception Date 3/31/04

Genesis outperformed in June despite a significant underweight allocation to the energy sector. Solid performance from companies based in South Africa and Taiwan boosted results on a country basis while technology and industrials holdings added value in terms of security selection. RETURN SUMMARY NON-U.S. EQUITY SMALL CAP ENDING 6/30/08 Month

Second Quarter

AXA Rosenberg

-6.1 %

1.1 %

Citigroup Extended Market World Ex-U.S. Index

-7.8

-3.3

Year-To-Date -4.8 % -10.0

1 Year Ending 6/30/08

Since Inception

-15.7 %

9.3 %

-14.5

9.3

Inception Date 12/31/05

AXA Rosenberg outperformed the benchmark in June as avoiding highly leveraged financial companies continued to add value. However, the manager is selectively adding bank stocks to the portfolio as attractive valuations merit. 20

Ennis Knupp + Associates

MANAGER SUMMARY U.S. Fixed Income Managers

Illinois Municipal Retirement Fund

RETURN SUMMARY CORE FIXED INCOME ENDING 6/30/08 Month

Second Quarter

1 Year Ending 6/30/08

Year-To-Date

3 Years Ending 6/30/08

Since Inception

EARNEST Partners

-0.1 %

-0.6 %

0.7 %

5.5 %

3.8 %

4.0 %

LB Aggregate Bond Index

-0.1

-1.0

1.1

7.1

4.1

4.2

Piedmont

0.0

-1.3

0.3

5.2

3.6

3.7

LB Aggregate Bond Index

-0.1

-1.0

1.1

7.1

4.1

4.2

Taplin Canida & Habacht

0.1

0.7

0.5

4.2

3.6

3.9

LB Aggregate Bond Index

-0.1

-1.0

1.1

7.1

4.1

4.4

Inception Date 5/31/05

5/31/05

4/30/05

The Fund's core fixed income managers in aggregate marginally exceeded the Lehman Brothers Aggregate Bond Index during the month. Taplin Canida benefited from callable debt securities while the declining interest rate environment during the second half of the month was welcome with a long duration exposure. EARNEST Partners approximated the benchmark during June as the manager's high quality orientation offset disappointing spread sector returns. Since EARNEST Partners has added yield to the portfolio through purchases following periods of spread widening, the manager expects its yield to drive future performance without sacrificing quality. Each of the core fixed income managers has trailed the Index over long-term periods.

RETURN SUMMARY CORE PLUS FIXED INCOME ENDING 6/30/08 Month

Second Quarter

Year-To-Date

1 Year Ending 6/30/08

3 Years Ending 6/30/08

5 Years Ending 6/30/08

Since Inception

BlackRock Core Plus

-0.6 %

-0.8 %

0.4 %

6.7 %

--

--

4.5 %

LB Aggregate Bond Index

-0.1

-1.0

1.1

7.1

--

--

5.2

LM Capital

-0.5

-1.0

1.3

6.4

4.6

--

4.8

LB Aggregate Bond Index

-0.1

-1.0

1.1

7.1

4.1

--

4.4

Progress - Fixed Income

-0.1

-1.3

0.7

6.6

--

--

5.5

LB Aggregate Bond Index

-0.1

-1.0

1.1

7.1

--

--

5.2

Western

-2.1

-1.2

-3.1

-1.1

2.4

3.9

5.4

LB Aggregate Bond Index

-0.1

-1.0

1.1

7.1

4.1

3.9

4.9

Inception Date 3/31/07

4/30/05

11/30/05

9/30/01

The Fund's core plus fixed income managers collectively trailed the Lehman Brothers Aggregate Bond Index during the month as none of the managers added value. LM Capital cited weak security selection as the cause of lagging performance with holdings GMAC, CIT Group, Hynix Semiconductor, and China Properties derailing results. BlackRock struggled during June as its bet on a steepening yield curve failed to materialize. Western suffered from a blowout in spreads as the health of the economy came into question in June. Financials and high yield corporate securities were especially harmful, while non-U.S. debt detracted as central bankers increasingly signal tightening ahead. Core managers Ambassador Capital and newcomer Black Knight lifted the Progress portfolio to break even with the Index. Ennis Knupp + Associates

21

MANAGER SUMMARY Illinois Municipal Retirement Fund

U.S. Fixed Income Managers

RETURN SUMMARY CORE PASSIVE FIXED INCOME ENDING 6/30/08 Month

Second Quarter

Year-To-Date

1 Year Ending 6/30/08

3 Years Ending 6/30/08

5 Years Ending 6/30/08

Since Inception

NTI Lehman Aggregate Bond Index

0.1 %

-1.0 %

1.2 %

7.2 %

4.1 %

3.9 %

7.1 %

LB Aggregate Bond Index

-0.1

-1.0

1.1

7.1

4.1

3.9

7.0

Inception Date 12/31/89

The Fund's core passive fixed income manager, NTI Lehman Aggregate Bond, approximated the benchmark during the month. The portfolio has closely tracked the Index over all trailing periods.

RETURN SUMMARY ENHANCED INDEX FIXED INCOME ENDING 6/30/08 Month

Second Quarter

Year-To-Date

1 Year Ending 6/30/08

3 Years Ending 6/30/08

5 Years Ending 6/30/08

Since Inception

BlackRock Enhanced

-0.4 %

-0.6 %

0.6 %

6.9 %

4.0 %

3.9 %

6.3 %

LB Aggregate Bond Index

-0.1

-1.0

1.1

7.1

4.1

3.9

6.2

Inception Date 3/31/00

The BlackRock Enhanced Index portfolio trailed the return of the Lehman Aggregate Bond Index during the month due to a decline of spread sectors as risk aversion returned to the debt markets. In addition, a steepening yield curve positioning modestly detracted. Long-term performance for the portfolio has been favorable.

RETURN SUMMARY HIGH YIELD FIXED INCOME ENDING 6/30/08 Month

Second Quarter

Year-To-Date

1 Year Ending 6/30/08

3 Years Ending 6/30/08

5 Years Ending 6/30/08

Since Inception

MacKay Shields

-1.2 %

2.2 %

-0.7 %

-0.8 %

5.8 %

9.2 %

9.9 %

Merrill Lynch High Yield Cash Pay Index

-2.7

1.8

-1.2

-2.0

4.6

6.8

6.6

Pyramis High Yield

-1.9

2.9

-0.6

-1.7

5.3

7.9

9.7

Merrill Lynch High Yield Cash Pay Index

-2.7

1.8

-1.2

-2.0

4.6

6.8

8.4

Inception Date 9/30/00

6/30/86

The Fund's high yield fixed income portfolio outperformed the return of the Merrill Lynch High Yield Cash Pay Index during the month. The strong performance of the MacKay Shields portfolio was the result of the manager's defensive positioning while the high yield market fell out of favor. MacKay Shields continued to be bearish on the economy but will slowly add positions in anticipation of a rebound in the next year. Pyramis benefited from an underweight allocation to the troubled autos sector and print directory industry. Excluding rental car companies Hertz and Avis also aided relative results. The high yield portfolio's longer-term performance has been favorable. 22

Ennis Knupp + Associates

MANAGER SUMMARY Real Estate Managers

Illinois Municipal Retirement Fund

RETURN SUMMARY OPPORTUNISTIC REAL ESTATE* ENDING 6/30/08 Month

Second Quarter

Year-To-Date

1 Year Ending 6/30/08

Lazard Freres

0.0 %

0.3 %

-2.5 %

0.5 %

Blended Benchmark

0.6

1.9

3.7

11.4

Olympus Real Estate Fund II

0.0

0.1

-5.2

Blended Benchmark

0.6

1.9

3.7

Prudential SVI I

0.0

66.7

Blended Benchmark

0.6

1.9

Security Capital

-9.9

Blended Benchmark

0.6

3 Years Ending 6/30/08

5 Years Ending 6/30/08

15.2 %

11.4 %

Since Inception -0.5 %

10.6

9.6

8.6

-10.0

-4.0

-11.5

-4.6

11.4

10.6

9.6

8.5

66.7

79.8

44.8

35.7

18.3

3.7

11.4

10.6

9.6

8.4

-0.7

-7.7

-14.3

6.3

17.8

16.3

1.9

3.7

11.4

10.6

9.6

8.4

Second Quarter

Year-To-Date

1 Year Ending 6/30/08

3 Years Ending 6/30/08

5 Years Ending 6/30/08

Since Inception

Inception Date 7/31/98 5/31/98 9/30/97 10/31/97

RETURN SUMMARY CORE REAL ESTATE* ENDING 6/30/08 Month BlackRock Granite Fund

-1.2 %

-0.4 %

0.8 %

--

--

--

6.1 %

Blended Benchmark

0.6

1.9

3.7

--

--

--

10.0

Morgan Stanley Buckhead

0.0

7.1

8.8

12.2

16.8

14.2

13.3

Blended Benchmark

0.6

1.9

3.7

11.4

10.6

9.6

8.3

Morgan Stanley Prime Property

-1.0

-1.0

2.0

5.8

--

--

5.8

Blended Benchmark

0.6

1.9

3.7

11.4

--

--

11.4

Sentinel

0.0

-1.1

-1.2

3.9

10.4

9.0

6.2

Blended Benchmark

0.6

1.9

3.7

11.4

10.6

9.6

8.5

Inception Date 7/31/07 7/31/95 6/30/07 9/30/85

*The Blended Benchmark reflects the previous real estate benchmark with the new real estate policy benchmark of NPI + 1.0% which was changed as of January 1, 2007. As the returns of the NPI are updated quarterly, an approximation of the Index will be used during the first two months of each quarter. Ennis Knupp + Associates

23

MANAGER SUMMARY Illinois Municipal Retirement Fund

Alternative Investment Managers

RETURN SUMMARY ABSOLUTE RETURN* ENDING 6/30/08 Month

Second Quarter

Year-To-Date

Grosvenor Institutional Partners

-0.5 %

1.2 %

-1.7 %

Alternatives Custom Benchmark

0.9

2.9

5.8

Harris Aurora

-1.0

2.4

Alternatives Custom Benchmark

0.9

2.9

Mesirow Multi Manager Fund

-3.1

Alternatives Custom Benchmark

0.9

1 Year Ending 6/30/08 1.0 %

3 Years Ending 6/30/08 8.1 %

5 Years Ending 6/30/08 7.9 %

Since Inception 7.4 %

12.0

12.0

12.1

-1.7

4.0

10.3

10.2

9.3

5.8

12.0

12.0

12.1

12.7

-0.5

-3.9

-3.6

8.0

8.7

7.7

2.9

5.8

12.0

12.0

12.1

12.6

Second Quarter

Year-To-Date

1 Year Ending 6/30/08

3 Years Ending 6/30/08

5 Years Ending 6/30/08

Inception Date 12/31/01

12.6 9/30/01

12/31/01

RETURN SUMMARY PRIVATE EQUITY* ENDING 6/30/08 Month

Since Inception

Inception Date

Abbott Capital

0.6 %

0.0 %

1.9 %

16.2 %

21.8 %

21.2 %

16.7 %

5/31/87

Alternatives Custom Benchmark

0.9

2.9

5.8

12.0

12.0

12.1

14.2

Muller & Monroe

-0.9

-4.6

-4.6

-1.3

-22.2

--

-21.8

Alternatives Custom Benchmark

0.9

2.9

5.8

12.0

12.0

--

12.0

Pantheon

1.7

2.9

5.1

19.9

23.5

19.4

10.5

Alternatives Custom Benchmark

0.9

2.9

5.8

12.0

12.0

12.1

13.0

Second Quarter

Year-To-Date

1 Year Ending 6/30/08

3 Years Ending 6/30/08

5 Years Ending 6/30/08

Since Inception

11.1 %

5/31/05

9/30/00

RETURN SUMMARY AGRICULTURE** ENDING 6/30/08 Month 0.0 %

0.0 %

-5.7 %

-1.3 %

14.5 %

Blended Benchmark

0.6

1.9

3.7

11.4

10.6

9.6

8.4

Alternatives Custom Benchmark

0.9

2.9

5.8

12.0

12.0

12.1

13.5

--

--

--

--

--

--

--

Month

Second Quarter

Year-To-Date

1 Year Ending 6/30/08

3 Years Ending 6/30/08

5 Years Ending 6/30/08

Since Inception

Inception Date

11.6 %

16.7 %

18.2 %

10.6 %

9/30/92

NCREIF Farmland Index Permanent Crops

6.4 %

Inception Date

Cozad/Westchester

9/30/97

RETURN SUMMARY TIMBER** ENDING 6/30/08

Forest Investment Assoc.

0.0 %

Blended Benchmark

0.6

1.9

3.7

11.4

10.6

9.6

8.2

Alternatives Custom Benchmark

0.9

2.9

5.8

12.0

12.0

12.1

14.0

--

--

--

--

--

--

--

NCREIF Timber Index - South

5.5 %

4.2 %

*The Alternatives Custom Benchmark is based on an annualized rate of return of 12.0%. Prior to 2004, the Benchmark was based on an annual return of 13.0%. Prior to 2003, it was based on an annual return of 15.0%. **The Blended Benchmark reflects previous real estate benchmark with the new real estate policy benchmark of NPI + 1.0% which was changed as of January 1, 2007. 24

Ennis Knupp + Associates

MANAGER SUMMARY Illinois Municipal Retirement Fund Five Best Performing Portfolios vs. Benchmarks Manager Prudential Forest Fidelity Small Co. AXA Rosenberg Morgan Stanley Buckhead

Year-to-Date Outperformance (in % points) 63.0 13.0 5.7 5.2 5.1

Five Worst Performing Portfolios vs. Benchmarks Manager Cordillera Copper Rock Security Capital Muller & Monroe Mesirow

Year-to-Date Underperformance (in % points) -13.5 -11.5 -11.4 -10.4 -9.7

Five Highest Returning Portfolios Manager Prudential Forest Morgan Stanley Buckhead Pantheon Morgan Stanley Prime Property

Year-to-Date Return (in % points) 66.7 16.7 8.8 5.1 2.0

Five Lowest Returning Portfolios Manager Cordillera Copper Rock Wall St. Brown NTI S&P Value

Year-to-Date Return (in % points) -22.4 -20.4 -17.6 -16.1 -16.0 Ennis Knupp + Associates

25

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26

Questions and discussion followed. (08-07-02) (Consent Agenda) The Chairman presented an agenda consisting of a Consent Agenda. The following items remained on the Consent Agenda since no Board member asked for their removal. Approval of Minutes Regular Meeting #08-06-27; June 27, 2008 Schedules - Dated July 25, 2008 Schedule A -

Benefit award listing of retirement, temporary disability, death benefits, and refund of employee contributions processed during the preceding calendar month under Article 7 of the Illinois Pension Code.

Schedule B -

Adjustment of Benefit Awards showing adjustments required in benefit awards and the reasons therefore.

Schedule C -

Benefit Cancellations.

Schedule D -

Expiration of Temporary Disability Benefits terminated under the provisions of Section 7-147 of the Illinois Pension Code.

Schedule E -

Total and Permanent Disability Benefit Awards recommended by the Fund's medical consultants as provided by Section 7-150 of the Illinois Pension Code.

Schedule F -

Benefits Terminated.

Schedule G -

Administrative Benefit Denials.

Schedule P -

Administrative Credit.

Schedule S -

Prior Service Adjustments

Schedule T -

Report of Expenditures

Denial

of

Application

for

Past

Service

Administration - Master Trustee Report The Master Trustee Report for the month of April 2008 was prepared by The Northern Trust Company. June Interim Financial Statements Participation of New Units of Government Chillicothe Public Library District Peoria County 2008 Rate: 11.32% Effective Participation Date: August 1, 2008 Number of Employees: 11 07/25/08

Page

23786

Village of South Barrington Cook County 2008 Rate: 15.22% Effective Participation Date: Number of Employees: 9

September 1, 2008

Participation of Townships Township of Danforth County: Iroquois TWP Cost Rate: 12.12% Number of Employees: 1 Township of Ophir County: LaSalle TWP Cost Rate: 11.57% Number of Employees: 3 Township of Senachwine County: Putnam TWP Cost Rate: 15.52% Number of Employees: 2 Bids External Security Manager for zVSE and CICS/TS Low Bidder: CSI International Low Bid: $27,025.00. Priority Support for Suse Linux Enterprise Server for IBM zSeries Low Bidder: Alliance Technologies Low Bid: $26,082.46 High-Speed Digital Copier Software Upgrade Bidder: Danka Office Imaging Supply Low Bid: $24,300. Telecommunications System – Adjusted Purchase Cost Company:

CCC/Avaya

Standard Bid Configuration: Adjustments/Options: Adjustment System Purchase Cost:

$252,666 36,898 $289,564

It was moved by Mr. Ross, seconded by Mr. Rasins, to approve the items on the Consent Agenda. Vote: Unanimous Voice Vote Absent: None (08-07-03) (Report of the Benefit Review Committee) The Chair reported on the Benefit Review Committee Meeting held on July 24, 2008.

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It was moved by Ms. Rademacher, seconded by Mr. Shoop, to accept the following recommendations of the Benefit Review Committee: o

denial of the application for temporary disability benefits filed Pamela Harris based upon the extent of her claimed medical condition.

by

o

denial of the application for total and permanent disability benefits filed by Maria Granados based upon the extent of her claimed medical condition.

o

denial of the application for temporary disability benefits filed Kathleen Nelson based upon the extent of her claimed medical condition.

o

reinstatement of Board Schedule H (Final Administrative Action – Denial) to be used whenever an appeal of an Administrative Staff Determination concerns only legal, as opposed to factual, issue(s).

by

Vote: Unanimous Voice Vote Absent: None (08-07-04) (Report of the Investment Committee) the Investment Committee Meeting held on July 24, 2008.

The Chair reported on

The Investment Committee heard a request from the Director of Investments for authorization to initiate a search for a real estate manager-ofmanagers that would be responsible for placing assets with minority and women-owned real estate investment firms. He further recommended that IMRF commit up to $75 million to this fund, with the final selection of manager-of-managers subject to an interview process conducted by the Investment Committee. This program would be undertaken in conjunction with at least two other Illinois public pension plans; State Universities Retirement System and Chicago Teachers’ Pension Fund. The Investment Committee voted to recommend the Board approve the following: o

authorization of a search for a real estate manager-of-managers that would be responsible for placing assets with minority and women-owned real estate investment firms;

o

allocation of up to $75 million to this fund; and

o

the final selection of the real estate manager-of-managers being subject to an interview process conducted by the Investment Committee.

The Director of Investments reported that EnnisKnupp was present the 2008 Asset Liability Study to the Committee emergency with key personnel who worked on this study.

not due

available to to a family

The Investment Committee voted to postpone the presentation of the 2008 Asset Liability Study until the August 21, 2008 Investment Committee Meeting. Next, the Committee discussed personnel changes in the real estate consulting division of EnnisKnupp.

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Lastly, the Director of Investments discussed Investment Committee activities taking place over the next three months, which included a request that was approved by the Committee for an Investment Committee Meeting on September 24, 2008, and an extended meeting on October 23, 2008. After questions and discussion, it was moved by Mr. Rasins, seconded by Ms. Thompson, to approve the recommendations of the Investment Committee. Vote: Unanimous Voice Vote Absent: None (08-07-05) (Litigation Update) currently pending litigation:

The following is an update of the

ADELPHIA RECOVERY TRUST vs. BANK OF AMERICA, N.A., et al. Summary:

The Adelphia Recovery Trust (“ART”) filed suit for recovery of the proceeds paid to bondholders as part of the Adelphia bankruptcy case. ART alleges that the bondholders were partners in the massive fraud that resulted in the Adelphia bankruptcy and, therefore, are not entitled to preferred creditor status.

Pending:

Plaintiffs will likely appeal the trial court’s order, once that order is made a “final order”.

dismissal

IMRF vs. COMPAGNO, et al. Summary:

IMRF filed suit to recover a death benefit that was erroneously paid to a member’s children.

Pending:

IMRF’s Motion for Summary Judgment, with regard to Christina Compagno-Coles, has been stayed pending further discovery. IMRF’s outside counsel will continue to try to locate, and serve, the co-defendant, Christopher Compagno.

ROBIN ROSS vs. IMRF, et al. Summary:

Board terminated temporary disability benefit.

Pending:

Oral Argument will likely be scheduled within the next 60-90 days.

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(08-07-06) (Report of Executive Director) Investments The market value of the Fund’s investment portfolio, including short-term investments, but excluding disposition costs, totaled $23.7 billion on May 31, 2008. This was an increase of $105.8 million from the market value as of April 30, 2008. Fixed income investments of $1,990.1 million were made in May. market value of fixed income investments totaled $7,425.6 million.

The

Domestic equity investments of $217.8 million were made in May. The market value of domestic equity investments totaled $9,189.8 million. International equity investments of $621.8 million, net of repurchase transactions of $3,831.2 million, were made in May. The market value of international equity investments totaled $5,345.4 million. The market value of real estate investments totaled $611.7 million. The market value of alternative investments totaled $967.6 million. The market value of cash equivalents totaled $144.8 million. Second Quarter Goals Report The Executive Director updated the Board on staff’s work towards 2008 projects and IMRF’s 2008-2009 Strategic Goals. Quarterly Compliance Certification The Executive Director stated IMRF has been in compliance with the applicable Statues and Regulations and the IMRF Ethics Code and Travel Policy during the Second Quarter 2008. 2008 Roundtable Meeting The Executive Director reviewed an updated draft of the proposed agenda for the 2008 IMRF Roundtable scheduled for September 24-25, 2008 at The Wyndham Drake Hotel in Oak Brook. (08-07-07) (Trustee Reimbursements) The Chair reported Board action is necessary to approve payment for a Trustee’s travel expenses if the request is submitted more than 30 days after the end of the calendar year. Trustee Bochmann submitted a request for mileage reimbursement for a period during 2007. It was moved by Ms. Thompson, seconded by Ms. Faklis to approve the Trustee’s travel expenses. Vote: Unanimous Voice Vote Absent: None

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(08-07-08) (Committee Resignation) Ms. Voller stated due to time-off limitations with her employer, she will be resigning from the Benefit Review and Legislative Committees, effective August 21, 2008.

(08-07-09) (Trustee Comments) The Chair reported the following Trustees requested authorization from the Board to attend the following conferences: Martha H. Rademacher

“Boston Research Forum 2008” Wellington Management September 17-18, 2008 Boston, MA

Sharon U. Thompson

“54th Annual Employee Benefits Conference” International Foundation November 16-19, 2008 San Antonio, TX

It was moved by Mr. Shoop, seconded by Mr. Rasins, to approve the above Trustee requests. Vote: Unanimous Voice Vote Absent: None

(08-07-10) (Executive Director Performance Review) The Board met with the Executive Director to conduct his Performance Review. It was moved by Mr. Ross, seconded by Mr. Rasins, to authorize a 6.85714% in compensation for the Executive Director for the period July 1, 2008 through June 30, 2009. Vote: Aye: Nay:

Rademacher, Rasins, Ross, Shoop, Voller Faklis, Bochmann None

It was moved by Mr. Shoop, seconded by Ms. Voller, to approve the employment contract for the Executive Director as tendered by Seyfarth Shaw, LLP with the insertion of the new salary amount. Vote: Aye: Nay:

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Rademacher, Rasins, Ross, Shoop, Voller Faklis, Bochmann None

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(08-07-11) (Adjournment) It was the consensus of the Board to adjourn the Board Meeting at 11:30 p.m., to reconvene in the Fund offices, 2211 York Road, Suite 400, Oak Brook, Illinois, at 9:00 a.m. on August 22,, 2008.

President

Date

Secretary

Date

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