CITY OF PONTIAC GENERAL EMPLOYEES RETIREMENT SYSTEM INVESTMENT CONSULTANT RFP QUESTIONS AND RESPONSES

Transcription

1 CITY OF PONTIAC GENERAL EMPLOYEES RETIREMENT SYSTEM INVESTMENT CONSULTANT RFP QUESTIONS AND RESPONSES 1. Could you please provide performance information related to the System's Alternative Investments? It did not appear to be included in the package. A. See Attached Q4 Flash Report and Performance Report. 2. Could we please receive a Word document version of the RFP questions? This will provide for a more efficient process to respond. A. A Word-version of the RFP has been added to the website: 3. Could you provide further information related to your Investment Managers, including who has custody, fee schedules and trading costs associated with each? A. Please see attached custodian and fee schedule and trading cost by manager. 4. Our firm is interested in responding to the City of Pontiac GERS Consultant RFP. Would you and the Board be open to a Discretionary Management/OCIO model? A. No 5. If the RFP is to rehire or replace your current general investment consultant, what prompted the search? Is the incumbent consulting firm allowed or encouraged to rebid? A. The incumbent investment consultant has resigned. 6. How long has the incumbent consultant been with your plan? What is the annual fee being paid to the current consultant(s)? A. The incumbent investment consultant was hired in The annual investment consulting fee is $97, Do you anticipate making any changes to the asset allocation of the fund? Are you considering any new asset classes? A. The Plan has recently gathered preliminary data to consider the desirability of adding real estate (core and/or value) as an asset class. 8. What is the most important investment issue your fund is currently facing? A. The System is a relatively mature plan and is currently overfunded requiring no contributions from the plan sponsor. The most important investment issue is

2 ensuring that the Plan s assets earn a sufficient return (within acceptable risk limitations) to continue paying benefits and expenses over the intermediate- to longterm while attempting to minimize the cost to the plan sponsor. 9. Please provide a copy of your 2016 meeting schedule for both the board meetings and the finance sub-committee meetings in which the investment consultant would be expected to attend. Could you please include the two workshops dates, two semi-annual manager reviews and the annual membership meetings? Is the consultant expected at all meetings which would be a total of 29 per year? A. Please see attached 2016 Board Meeting Schedule which includes the two semiannual manager review meetings. The annual membership meeting is generally held on the second Tuesday in October subject to Board confirmation. The finance sub-committee generally meets once per month on the day prior to the Board meeting. Attendance at Board and sub-committee meetings (which may include telephonic attendance) and workshop dates are negotiable. 10. What strategic decisions are currently pending with the current consultant that the new consultant would likely become involved with? A. There are no pending strategic decisions. 11. Please provide a copy of the most recent Comprehensive Audited Financial Report (CAFR). A. The Plan s 2014 Audited Financial Statements are attached. 12. Do you have an investment staff that works with the Executive Director? If so, how many employees are there on staff? A. The Plan does not have an investment staff. 13. How many quarterly and monthly reports are required? A. The plan requires the flash report to be provided at each monthly Board meeting and 4 quarterly performance reports (see attachments) for a total of 15 reports. 14. Could you please quantify how many references you would like? As a firm with significant public fund experience and many public fund clients, we would like to provide similar size or consulting team references only. A. From the RFP Please provide references including any Michigan Public Plans (emphasis added) for which you currently provide consulting services and your

3 three (3) most recent lost and/or terminated clients. Include name, title, fund, address and phone number. If you are not currently providing investment consulting services to any Michigan Public Plan clients, please provide references for 3 of your current Public Plan clients that are of a size and type most similar to the GERS.

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