Responsibilities of the Investment Manager For Pension Boards, Custody Issues, and Rebalancing

A person is an “Investment Manager” with respect to a retirement system or pension fund under the Illinois Pension Code if such person:

1. is a fiduciary appointed by the board of trustees of a retirement system or pension fund in accordance with Section 1-109.1;
2. has the power to manage, acquire or dispose of any asset of the retirement system or pension fund;
3. is either –
a. registered as an Investment Advisor under the Investment Advisors Act of 1940;
b. a bank, as defined by that Act, or
c. an insurance company; and
4. has acknowledged in writing that he is a fiduciary with respect to the retirement system or pension fund.
5. the terms “Investment Manager” and “Investment Advisor” are used interchangeably.

The Investment Manager/Advisor/Broker with discretion over buying or selling securities for the fund may not be the custodian of the investment instruments.

Pension boards should review percentages quarterly for compliance with the Investment Policy. Funds with assets under $2.5 million are allowed 10% in separate accounts and/or mutual funds, which may not grow in excess of 10% provided that the contract has not been changed.

If market values do not exceed the allowable percentage then no rebalancing is required. Investment Policies of each fund should stipulate the percentage allowable in the various types of authorized investments.

Pension funds invested in separate accounts, mutual funds and/or individual stocks should calculate the market value of those funds to determine the percentage held vs. the allowable percentage under the law. Use the expertise of the Investment Manager to assist with this task. If the percentage exceeds the allowable amount, the fund must reduce the allowable percentage and document the reduction. The reduction as to which investments are sold is at the discretion of the pension board and applies only to the aggregate percentage. Documentation of the percentage calculations should be maintained at the pension fund.

Investment Management Advisors

Investment management refers to the process of managing money being used for investments. Investment profiles are managed through sound decisions about security purchases and sales. Investment management advisors provide investment management services including money management, investment projections, investment counseling, and investment management planning. Investment management advisors may work as individual entities or may be a part of investment management firms. Those who work for reputable investment management firms are preferred over solo agents because of their credibility and reputation. These agents are usually college degree holders who have gained bachelor degrees in business and also have relevant investment management experience tucked in their belts.

There are two types of investment management advisors, those who offer direct financial advice to individuals or businesses and those who offer asset management for corporate clients. The services offered by investment management advisors are not given for free. The usual rate charged by these advisors varies depending on the project, the monetary investment involved, or the current standing of whom they advise. They also charge higher fees to corporate accounts than they do to individuals because of the sheer complexity of the tasks when catering to larger companies. Their fees may be calculated percentages of the assets gained, annual fees, or even hourly rates.

Investment management advisors are monitored by government run agencies and private investment management associations to ensure the quality of their services. The certifications issued by government agencies and private associations protect investment management advisors and their clients alike. They are subject to laws and regulations governing money management and must meet strict requirements prior to certification and registry as qualified investment management advisors. They work assuring client confidentiality and provide complete disclosure of all investment deals. Most, if not all investment management advisors are also licensed stockbrokers to enable them to carry out investor authorized sales and purchasers.

Career Management – Guiding You To The Path You Always Wanted To Go To

Ever got the feeling that you aren’t doing the right work? That you are in the wrong job at the wrong time? Tired of doing something that you aren’t passionate about? Then look for a career management organization that can help ease your career transition and direct you to that dream job you always wanted.

People are changing their jobs every day, pursuing new things and challenges; however bear in mind that a career change can always lead to an unpredictable road and not only does it affect your finances, but it makes you feel like a beginner all over again. The correct next and sometimes final career move is not easy and career management services will help you simplify your life and career objectives.

The first thing that they will guide you in is to make a query about your own personal motives. It is common for people to take the wrong decision, when starting their professional lives, and end up doing something that doesn’t fulfill them. Bear in mind leaving your job to make quick money is not the answer at all and you have to ask yourself the question, that whether you’re blaming your career choice for other frustrations in your life.

The next thing would be to help you outline and focus on your objectives. If you want to be an entrepreneur, you will have to make sure that you are ready to start your own business, and must have a business plan, with career advisors obviously giving you directions and ideas. Remember that it is possible to learn new skills and retrain yourself, but it cannot happen overnight and much training will be required depending on the career you are willing to enter.

While your career management advisor will train you for success, it will also prepare you for failure, because as pointed out earlier, changing career paths can be tricky. Being prepared is the ultimate factor of success so you will be trained on how to start over again. On top of that your advisors will help identify your transferable skills and will help make that plan of yours. They will provide you with a sound designed, personal campaign that will help identify that optimum career path of yours, whether it may be full-time, part-time or active retirement; self-employment too. Thus, get yourself a sound advisor, who will help you attain this goal in life.