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IMET Operations
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Operations |
Expenses of the Fund |
Fund Management and Administration |
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Operations
Operations of the Fund are governed by policies and procedures outlined in the IMET Declaration of Trust and are documented in custodial and administrative agreements with the administrator and investment advisor of the Illinois Metropolitan Investment Fund. Questions regarding operations may be directed either to the IMET staff at 847/296-9200 or 618/662-6655, or to the IMET Operations Desk at 800/950-7521.
Internal Controls
The Investment Advisor will establish a system of internal controls, which will be documented in writing. The controls will be annually reviewed by the Investment Advisor’s auditor and will be designed to prevent losses in the Fund arising from fraud, employee error, misrepresentation by third parties or imprudent actions by employees and officers of the Investment Advisor. The Investment Advisor is required at all times to have in place a fidelity bond or bonds covering the actions of its employees and officers relating to fraud, theft, dishonesty; and other willful acts which may result in the loss of Fund assets. Such bond or bonds shall be maintained at not less than $10,000,000.
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Business Days
The Fund is open for business and its net asset value per share is determined as of the business days as set forth below under the subheading "Net Asset Value."
The Fund reserves the right to suspend the right of redemption or to postpone the date of payment or redemption for any period during which an emergency exists (including any day on which trading on the Exchange is suspended or restricted), as a result of which disposal of the portfolio securities owned by the Fund is not reasonably practicable, or it is not reasonably practicable to determine the fair value of its net assets. The Custodian of the Fund, Fifth Third Bank, shall have the sole authority to determine when suspensions of business shall be made.
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Confirmations and Statements
A confirmation of each Participant transaction will be sent promptly by election of the participant either by mail or email indicating the date, amount, and type of transaction that was processed. A participant may also view the confirmation on-line using the GPS system.. A monthly account statement for each Participant listing all transactions by that Participant for the month, the Fund’s closing net asset value will be sent after the close of each month, normally within approximately five business days. Statements will also be available on-line the first business day after the end of the month or by email. Participants who wish to receive only monthly statements or require information regarding the current status of any account should call the IMET Operations Desk at l-(888) 288-IME (4638).
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How Yields, Total Return and Net Asset Value are Determined
The total earnings on an investment in the Fund include two components: income and price appreciation or depreciation. All investment income and capital gains on the Fund are reinvested therein.
- Yields
A Participant may receive the annualized yield on the Fund by calling Municipal Funds Services at 1-800-950-7521. Yields for the Fund are computed by dividing the Fund’s interest income for a given period, net of expenses, by the Fund’s net asset value at the end of the period, and annualizing the result in order to arrive at an annual percentage rate. Capital gains and losses generally are excluded from the calculation.
- Total Return Calculations
Total returns quoted reflect all aspects of the Fund’s return, including the effect of reinvestment of interest and/or principal and capital gains distributions, and any change in the Fund’s net asset value over a stated period. Average annual total returns are calculated by determining the growth or decline in value of a hypothetical historical investment in a fund over a stated period, and then calculating the annually compounded percentage rate that would have produced the same if the rate of growth or decline in value had been constant over the period. While average annual returns are a convenient means of comparing investment alternatives, investors should realize that a fund’s performance is not constant over time, but changes from year to year, and that average annual returns represent average figures as opposed to the actual year-to-year performance of a fund.
- Net Asset Value
The net asset value per share of the Fund is calculated by adding the value of all portfolio securities and other assets, deducting its actual and accrued liabilities, and dividing by the number of shares outstanding.
The net asset value of the Fund for purposes of pricing purchase and redemption orders is determined by the Investment Advisor as of 5:00 p.m., Eastern time, on each business day ("Business Day’) except: (i) those holidays which the New York Stock Exchange, the Investment Advisor or its bank affiliates observe (currently New Year’s Day, Dr. Martin Luther King, Jr., Day, Presidents’ Day, Good Friday, Memorial Day, Independence Day, Labor Day, Columbus Day, Veterans’ Day, Thanksgiving Day and Christmas Day); and (ii) those business days on which the New York Stock Exchange closes prior to the close of its regular trading hours (currently, 4:00 p.m. Eastern Time) ("Early Closing Time’) in which event the net asset value of the Fund will be determined and its shares will be priced as of such Early Closing Time.
Expenses of the Fund
The total budgeted expenses for the Fund are not expected to exceed 0.28% (28 basis points) for a Fund with average daily net assets of $250,000,000 and are broken down as follows:
Fund Management
The Fund pays a management fee to JPMorgan Asset Management, who acts as the investment advisor. The management fee, currently .105% (10.5 basis points) is calculated each day and paid monthly based upon the average daily net assets of the fund. PMA Financial Network, Inc. provides administrative services including fund accounting and transfer agent services. The fee associated with these services is calculated at an annual rate of .06% (6 basis points). Harris N.A. provides custody services. The fee associated with these services is calculated at an annual rate of .01% (1 basis point) of average daily net assets.
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Consultant
The Fund pays the Consultant an annual fee in arrears equal to .02 % (two basis points) of the Fund’s average daily net assets for each fiscal year, not to exceed $125,000 in any fiscal year. No annual fee shall be payable for any fiscal year unless the assets of the Fund exceed $100,000,000 for at least 31 consecutive calendar days during such fiscal year and the total return to Fund Participants for such fiscal year equals or exceeds the average 90-day treasury bill rate during such fiscal year. The fee is paid to the DuPage Mayors and Managers Conference, Northwest Municipal Conference, South Suburban Mayors and Managers Association, West Central Municipal Conference and the Will County Governmental League, who act collectively as the Fund’s Consultant pursuant to the Consulting Agreement.
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Other Expenses
The Fund also pays a fee for the salaries of the Executive Director and staff, office expenses, legal services, the Fund audit, required execution costs, fund insurance, and other professional services as required. The Board of Trustees shall annually review the expenses of the Fund.
The financial statement of the Fund will be audited and certification will be issued by Miller Cooper & Co., Ltd, an independent accounting firm, following the close of each fiscal year, commencing with the first complete fiscal year after shares of the Fund have first been purchased. The audit will include an accounting of the securities held by the Custodian and a review of the adequacy of the Fund’s controls through a systems review and evaluation. An Annual Report including the Auditor’s opinion will be issued to each Participant of record as of September 30, the close of the fiscal year. The Fund will pay all costs of conducting the audit and issuing the Annual Report.
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Legal Counsel
Chapman and Cutler of Chicago, Illinois, serves as legal counsel to the Fund.
Fund Management and Administration
Board of Trustees
The Trustees have full and exclusive control and authority over the business and affairs of the Fund and the Fund’s assets, subject to the rights of the Participants as provided in the Declaration of Trust. The Trustees may perform such acts as in their sole judgment and discretion are necessary and proper for conducting the business and affairs of the Fund or promoting the interests of the Fund. They oversee, review, and supervise the activities of all consultants and professional advisers to the Fund.
The total number of Trustees is eight, one from each of the following Chicago metropolitan councils of government (collectively, known hereinafter as the "COGs’): Northwest Municipal Conference, West Central Municipal Conference, South Suburban Mayors and Managers Association, DuPage Mayors and Managers Conference, and Will County Governmental League and three at-large Trustees.
A Trustee is required to (i) be an official of a municipality that is a member of the respective COG from which the Trustee serves; provided, however, that an at-large Trustee may be an official of any municipality or public entity ; and (ii) be an official of a municipality of which the municipal treasurer or finance officer is a Participant. As a further qualification for office for those Trustees representing one of the five COGs, those officials shall present evidence in writing of the granting of an authorization by the respective COG with which such official’s municipality is affiliated.
Any vacancy created on the Board of Trustees will be filled by the appointment of an individual having the qualifications described above made by a resolution of a majority of the Trustees then in office. Whenever any vacancy in the number of Trustees shall occur, until such vacancy is filled, the Trustees continuing in office, regardless of their number, shall have all the power granted to the Trustees and shall discharge all the duties imposed upon the Trustees by the Declaration of Trust.
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