6.3. SR 07-10-2000 - Laserfiche WebLink

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Supplemental Investment Fund The Supplemental Investment Fund is a multi-purpose investment program that offers a range of investment options to state and local public employees. The Fund serves approximately 43,000 individuals who participate in defined contribution or supplemental retirement savings plans. On June 30, 1999, the market value of the entire Fund was $1.65 billion. The different participating groups use the Supplemental Fund for a variety of purposes: It functions as the sole investment manager for all assets of the Unclassified Employees Retirement Plan, Public Employees Defined Contribution Plan and Hennepin County Supplemental Retirement Plan. It is one investment vehicle offered to public employees as part of the state's Deferred Compensation Plan, as well as the Individual Retirement Account Plan and College Supplemental Retirement Plan offered by Minnesota State Colleges and Universities (MnSCU). It serves as an external money manager for a portion of some local police and firefighter retirement plans. Fund Structure A wide diversity of investment goals exists among the Supplemental Fund's participants. In order to meet those needs, the Supplemental Fund has been structured much like a "family of mutual funds." Participants may allocate their investments among one or more accounts that are appropriate for their needs, within statutory requirements and rules established by the participating organizations. Participation in the Supplemental Fund is accomplished through the purchase or sale of shares in each account. Fund Management The Supplemental Fund offers seven different investment options (See Figure 23). The objectives, asset allocation, management and performance of each account in the Fund are explained in the following sections. Share Values Each account in the Supplemental Fund establishes a share value and participants may buy or sell shares monthly, based on the most recent share value. In the Income Share Account, the Growth Share Account, the Common Stock Index Account, the International Share Account and the Bond Market Account, shares are priced monthly based on the market value of each account. Individuals measure the performance of these accounts by changes in share values, which in turn are a function of the income and capital appreciation (or depreciation) generated by the securities in the accounts. In the Money Market Account and the Fixed Interest Account, share values remain constant and the accrued interest income is credited to the accounts through the purchase of additional shares at predetermined intervals. Figure 23. Accounts in the Supplemental Investment Fund Income Share Growth Share Common Stock Index International Share Bond Market Money Market Fixed In teres t a balanced portfolio of stocks and bonds a portfolio of actively and semi-passively managed common stocks a passively managed common stock portfolio a portfolio of both actively and passively managed non U.S. stocks' a fixed income portfolio utilizing active and semi- passive management a portfolio of liquid, short-term debt securities a portfolio of guaranteed investment contracts (GIC's) and GIC type investments 23