IL SB1671

Amends the Illinois Pension Code to define "emerging investment manager" as a qualified investment adviser managing $10,000,000 to less than $20,000,000 in assets and meeting minority-owned, women-owned, or disability-owned business criteria.

Requires retirement systems and pension funds to adopt policies by January 1, 2010 establishing quantifiable goals for utilizing emerging investment managers across asset classes, with separate goals for minority-owned, women-owned, and disability-owned businesses.

Sets aspirational goals beginning January 1, 2016 for retirement systems to allocate at least 20% of total funds under management to emerging investment managers and at least 20% of investment advisor contracts to minorities, women, and persons with disabilities.

Establishes "qualified manager of emerging investment managers services" as an exception to competitive procurement requirements, allowing boards to appoint emerging investment managers based on written recommendations after 24 months of service in a multimanager portfolio.

Mandates annual reporting to the Governor and General Assembly on emerging investment manager utilization, policies adopted, and actions taken to increase diversity among fiduciaries, consultants, and senior staff.