Pensions

Here are some of the Pension items that we cover.

• Pension funds have long-term investment horizons and portfolios are built with this in mind.

• The Investment Process starts with determining the pension fund’s needs. This includes reviewing the current portfolio and the cash flow demands.

• The Investment Plan is prepared. This includes a review of the Asset Allocation along with the investment policy. Changes, if any, are recommended to the Pension Board for implementation.

• An overall Investment Strategy is developed along with a Bond Portfolio Strategy and an Equity Portfolio Strategy. The Bond Portfolio is invested based on the desired average maturity, along with minimizing credit risk and interest rate risk. The Equity Portfolio is invested based on the desired allocations to Domestic/International, Large Cap/ Small Cap, and Growth/Value.

• The Investment Approach that is taken is to provide for Safety of Principal, Portfolio Diversification, Minimize Risk, create a Maturity Schedule that is known along with Cash Flows that are predictable.

• On going reporting is provided with monthly statements along with quarterly reports. Quarterly reports include a review of the portfolio and performance is compared to the appropriate benchmarks.

• The Quarterly Reports are presented to the Pension Board and reviewed.

• Hammond Investment Management is a member of the Illinois Public Pension Fund Association (IPPFA).