Police Pension Fund of the City of Bloomington

Transcription

1 Police Pension Fund of the City of Bloomington 305 South East Street Bloomington, IL Request for Proposal For Pension Fund Financial Consultant Services Proposals Due Date: Friday, February 14,

2 INTRODUCTION Proposals are invited from qualified professional investment consulting firms to provide professional advice and management of all investments for the Bloomington Police Pension Fund. BACKGROUND The Bloomington Police Pension Fund ( Pension Fund ) is a defined-benefit, single employer defined system, covering Policemen (both active and retired) that are or were employed by the City of Bloomington. The Fund provides eligible members and their spouses with service, disability and death benefits. It is managed by a Board of Trustees (the Board) consisting of two appointed and three elected members. The Pension Fund has 101 retired members and 126 active members. The Pension Fund has approximately $50 million in total assets, of which approximately 56% is in equities; approximately 35% is fixed income instruments, 5% cash and 4% real estate. Statements of current investments are available for review upon request. SERVICE OBJECTIVE In the preparation of a proposal, the Manager should provide the services noted below and should describe any additional services the firm believes to be beneficial in meeting the Pension Fund s objectives. Attend quarterly meetings of the Pension Fund. Attend special meetings of the Pension Fund upon request. Monitor the performance of the equity investments and their compliance with the Fund s investment policy statement. Provide reports of investment performance to the Pension Fund and recommend changes in asset allocations, as appropriate. Advise the board on all matters related to the management of the Fund s equity investments. Conduct investment transactions within the scope of approved investment instructions in adherence with the policies and procedures of the Pension Fund. Monitor the performance of the fixed income investments and their compliance with the Fund s investment policy statement. Advise the board on all matters related to the management of the Fund s fixed income investments. 2

3 DETAILED PROPOSAL A. Transmittal Letter A signed letter of transmittal briefly stating the bidders understanding of the services to be provided, a statement why the company believes itself to be the best qualified to perform the requested services and a statement that the proposal is a firm and irrevocable offer for 90 days. B. Firm Information 1. Name and Address of Proposing Firm. 2. Name, telephone number, address and title of individual with authority to commit firm. 3. Please disclose any entity that is a parent of, or owns a controlling interest in your firm. Please also disclose any entity that is a subsidiary of, or in which a controlling interest is owned by, your firm. C. Description of Organization 1. Firm a) The year the firm was founded. b) Current Illinois Police and Fire Pension Fund accounts under management: list all Illinois Police and Firefighter Pension Fund accounts managed by your firm; provide the total market value for the portion of each fund your firm manages; and include the number of years your firm has worked with each fund. c) List the Illinois Police and Firefighter Pension Fund accounts that have terminated their relationship with your firm in the last five (5) years, provide the year of termination and include the name of the firm that succeeded your firm as investment advisor/manager. 2. Portfolio Managers, Relationship Managers and Administrators who would have primary responsibility for the management of this account: a) Name, title, and years of service with your firm b) Biographies of key personnel c) Number of total accounts (including police and firefighter pension funds) under management for the firm, portfolio manager and assigned to the administrator d) Years of personal Illinois Police or Firefighter Pension Fund management experience 3

4 e) Names, responsibilities, and tenure of key members of the Illinois Police and Firefighter Pension Fund management team that have left the firm within the last five (5) years f) Representatives of the firm that will attend pension board meetings 3. Describe any special expertise and experience your firm has in providing investment advisory services to Illinois Police and Firefighter Pension Funds in Illinois. Describe the competitive advantage your firm enjoys over its competitors in the Illinois Police and Firefighter Pension Fund field. D. Business Arrangements 1. Please disclose and describe all sources of income you receive in connection with investment advisory services to Illinois Police and Firefighter s Pension Funds, either direct or indirect. What third parties will you receive compensation from, including, but not limited to, commissions, 12(b)(1) fees, referral fees, etc.? 2. Discuss recommendations for custody. How are you affiliated with this custodian? Do you receive any compensation for this custodian in regard to this client? Are any custodian services delegated to other firms? Itemize all cost to client should they choose to take your recommendations in regard to custody. E. Investment Procedures and Approaches 1. Briefly describe the philosophy and methodology of your security selection for both the equities and fixed income side of the portfolio. If you feel any of the more common investment styles apply to your philosophy, please so indicate. 2. Describe your capabilities in developing, implementing, and modifying investment objectives, guidelines and investment policies on behalf of your clients. 3. Explain your views on passive versus active management. What is your recommended allocation between active and passive management? 4. To what extent does your firm manage individual equities, as opposed to mutual funds or other managers as sub-advisors? 5. Do you consider your firm a consultant or an investment adviser as defined by Article 1 of the Illinois Pension Code? F. Investment Performance and Reporting 1. Please submit composite performance data for the last one-year, three-year, fiveyear, and ten-year periods ending April 30, Also, provide composite performance for each full year your firm has managed Illinois Police and Fire Pension Funds through April 30, Specify if these returns comply with CFA Institute GIPS performances presentation standards. Indicate the composition of the composite and compare the composite performance against the appropriate market index/benchmark. The composite should contain ONLY Illinois Police and Fire Pension Fund accounts managed by your firm. Disclose if any Illinois Police and Fire Pension Fund clients were left out of the composite. If so, why were they left out? 4

5 2. Please provide an example of your reporting format for quarterly meetings. 3. Are reports available in electronic format? 4. Describe the benchmarks that your firm feels the portfolio should be managed against and why. G. Fees 1. Proposed fee structure, including full disclosure of direct and indirect fees, commissions, penalties, and other compensation, including reimbursement for expenses, start-up fees, annual fees, and all other fees. 2. Detailed description of the services to be provided in the exchange for the proposed fees. 3. Provide a sample investment contract with fee schedule (please attach). H. Miscellaneous 1. Please provide a list of at least three (3) Illinois Police and Fire Pension Fund client references with contact names, addresses, and telephone numbers. 2. Please provide a list of formal complaints, sanctions, or litigation against your firm in the last ten (10) years, if any. 3. Has your firm, its principal(s) or affiliate(s) ever: a) been part of a non-routine Securities and Exchange Commission (SEC) inquiry or investigation or a similar inquiry or investigation for any similar federal, state or self-regulatory body or organization; b) been a party to any litigation concerning fiduciary responsibility to other investment related matters; or, c) submitted a claim to your errors and omissions, fiduciary, liability, and/or fidelity bond insurance carrier(s)? If yes to any, please provide details. 4. Provide a list of any/or all affiliates with financial institutions, insurance companies, mutual funds, and/or brokerage firms. Please provide a description of each affiliation. 5. Please state whether you are willing to acknowledge that you are a fiduciary of the pension fund as defined in Section of the Illinois Pension Code (40 ILCS 5/ ). 6. Please state whether you agree to venue for any judicial proceeding to be in the State of Illinois. 7. If requested, what other services could your firm provide (on-site training, etc.) for trustees and staff? 8. Does your firm provide pensioner payment and tax reporting services? If yes, please describe and provide sample forms and procedures for this service. 9. Specify how your firm would handle transfer of assets. Describe how your firm would assist in transition management. 5

6 DOCUMENT FORMAT The proposal should be printed on letter size paper, single-sided on the right hand page. Charts may be appended as exhibits. SELECTION OF FIRM The Pension Fund will principally evaluate the proposals according to the quality and depth of the experience and level of knowledge of the interested firms, as well as their familiarity with the applicable law and procedures. The proposed fee will not be the primary factor in the evaluation of proposals leading to the selection of the top candidate, but will be an influential factor. The proposed fee will be considered a basis for negotiation over the final scope of services. If the Pension Fund is unsuccessful in reaching a contract agreement with the top-rated professional firm, negotiations will cease and the second-rated professional firm will be invited to negotiate with the Pension Fund. The Pension Fund reserves the right to reject any and all proposals and to solicit additional proposals. Proposed Timeline: 1. Notify the Public of RFP Week of January 27, Deadline for submittals Friday, February 14 th, Interviews/Presentations Wednesday, March 19 th, Proposed Award Date Tuesday, April 15 th, 2014 ** This timeline is tentative and is subject to change. SUBMISSION REQUIREMENTS Six copies of the proposal and separate fee quote should be submitted in a sealed envelope by Friday, February 14 th, 2014 to: Bloomington Police Pension Fund Secretary Timothy Stanesa 305 S East Street Bloomington, Il Phone: (309) Fax: (309) tstanesa@cityblm.org 6