Industry News and RFP's
California Secure Choice Retirement Savings Investment Board: CSCRSIB07-17 - Program Adminstrator and Investment Manager Services
The California Secure Choice Retirement Savings Investment Board is soliciting proposals from qualified firms, organizations, and/or a consortium of allied financial services companies to provide Program services as Program Administrator, as Investment Manager or as Program Manager (defined as combined Program Administrator and Investment Manager services). https://caleprocure.ca.gov/event/0984/0000009759 Proposals due July 17, 2018 by 4:00PM PDT
The Office of the Illinois State Treasurer (“Treasurer”) is issuing this Request for Proposals (“RFP”) to retain a consultant to conduct a review of the Treasurer’s banking receipt and payment processes and systems, and provide recommendations for improvements and increased efficiencies across the treasury management system enterprise. The successful Respondent (“Contractor”) shall assist the Treasurer in providing a comprehensive review of its banking and payment operations, processes, and procedures and any associated treasury management system enterprise. The Treasurer’s goal is to improve its programs via reduced operational risks, optimized cost structures, streamlined operations, and enhanced services. Respondents must submit their Proposals by 12:00 p.m. CT on March 16, 2018. The Contractor shall enter into a contract with the Treasurer (“Agreement”) for an initial term of four (4) years. Upon expiration of this term, the Treasurer may elect to extend the Agreement for a period of time agreed upon by the parties, not to exceed a total of ten (10) years. Click HERE to view the RFP.
Office of the IL State Treasurer Custodial Accounting, Brokerage and Trading Services
Proposals are due by 2:00 p.m. CT on January 24, 2018. Click HERE to view the RFP. Please be reminded that there is a mandatory bidders conference for those responding to the RFP. If a Respondent intends to participate in the Mandatory Bidder’s Conference, Respondent must e-mail the CPO notice of intent to participate by 1:00 p.m. CT on January 9, 2018. Participation by telephone is acceptable. The Bidder’s Conference shall be on January 10, 2018 at 10:00 a.m. CT at the following address: 400 West Monroe Street, Suite 401 Springfield, IL 62704
NYC Retirement Systems U.S. Small Cap Active Equity RFP
The Comptroller of the City of New York, acting on behalf of the New York City Retirement Systems, and specifically the Teachers’ Retirement System of the City of New York, the New York City Employees’ Retirement System, the New York City Police Pension Fund, Subchapter Two, the New York City Fire Department Pension Fund, Subchapter Two, and the New York City Board of Education Retirement System (collectively “NYCRS” or the “Systems”), is conducting this investment manager search (this “Search”) to identify and select investment management firms, or a pool of investment management firms, to create and manage one or more public equity U.S. Small Cap Active Equity portfolios for the System(s).
Consistent with the policies expressed by the City of New York, participation by City-certified minority-owned and women-owned businesses or partnership arrangements with minority-owned and women-owned investment firms are encouraged. Additionally, participation by small and New York City-based businesses is encouraged. You must register to download a copy of the Notice of Search, which fully describes the scope or work, minimum requirements, and how to participate. As indicated in the Notice, to participate a firm must provide information to the Systems’ Consultants’ databases no later than January 19, 2018. Click HERE to view the RFP. Questions about the Notice of Search sare due January 8, 2018.
On September 21, 2016, U.S. Sens. Cory Booker (D-NJ) and Elizabeth Warren (D-MA), sent a letter to William J. Carr III, interim CEO of the National Railroad Retirement Investment Trust (NRRIT) asking the Trust to clarify details around the current process of how it identifies and selects external managers to handle the assets of federal employees. They were joined on the letter by Sens. Kirsten Gillibrand (D-NY), Ben Cardin (D-MD), Bernie Sanders (D-VT), Sherrod Brown (D-OH), Richard Blumenthal (D-CT), Mazie Hirono (D-HI), and Robert Menendez (D-NJ).
“Our economy and nation thrives when we develop inclusive political and economic institutions. Therefore, it is in our national best interest to share in a common goal of ensuring government better represent the diversity of our nation,” the Senators stated. “We believe there is a great opportunity for your plan to set a clear example for institutional investors and the PBGC’s initiative could be a model for increasing investment with diverse managers across all asset classes… Accordingly, we request that you submit a plan that outlines how the NRRIT could similarly create a program for smaller and diverse asset managers,” the Senators concluded.
In July 2014, Senator Booker led his colleagues in raising “the severe underrepresentation of diverse and emerging managers” at the Pension Benefit Guaranty Corporation (PBGC), after learning that the PBGC had allocated $0 of its over $85 billion in assets to diverse managers. In May of 2015, the PBGC launched a pilot program for smaller asset managers and earlier this year, the agency allocated $875 million to five investment managers selected for the pilot.
The full text of the letter can be found here:
Walters Art Museum Launches Investment Manager Diversity Initiative
In a press release from July 28, 2016, the Walters Art Museum announced the launch and hiring four MWBE firms as part of their Investment Manager Diversity Initiative.
As part of a commitment to diversity and inclusion, the Walters Art Museum has launched a new initiative to hire diverse-owned investment firms to manage a portion of the Walters’ endowment portfolio, which is valued at $116 million. The Investment Committee of the Walters led the initiative, which was strongly supported by the museum’s Board of Trustees.
“I am excited that the Walters has been able to take this critical step in aligning investment policy with inclusive practices and excellence in performance,” said Board President Ellen Bernard. “We made it a priority to engage more minority and women-owned investment management firms. “By doing this, we are adding a group of high performing managers to the Walters’ investment portfolio.”
The Walters used an objective process to identify the best-in-class independent money managers to oversee a portion of the funds. In partnership with the museum’s investment consultant, Marquette Associates, the Walters’ Investment Committee selected four diverse-owned firms that consistently outperformed their respective asset-class benchmarks over a one, three, five and 10 year period.
· Brown Capital Management, a Baltimore firm with more than $7 billion in assets under management (AUM), was selected to manage a portion of the portfolio assets allocated to International Equity. Brown Capital’s International Equity Fund Investor Class is rated five-star (highest rating) by Morningstar, Inc.;
· Channing Capital, based in Chicago, Illinois, has a noted record of investing in U.S.- based small-to-medium-sized undervalued companies. With over $2.5 billion in AUM, this boutique investment firm has consistently generated a return on its small cap value service in excess of 200 basis points (net of fees) over its benchmark during the short- and intermediate-term, and since inception;
· Elizabeth Park Capital Management, located in Cleveland, Ohio, is an equity hedge fund manager focused on small/mid-cap banks and thrifts and select mortgage real estate investment trusts. Since 2008, Elizabeth Park has been a consistent top quintile, risk-adjusted performer among similar U.S. bank-focused funds; and
· Garcia Hamilton & Associates, a Houston, Texas-based high quality domestic fixed income firm with more than $7 billion in AUM, was named 2010 Core Fixed Income Manager of the Year by Emerging Manager Monthly, Intermediate-Term Fixed Income Manager of the Year for 2014 and Fixed Income Intermediate – Term Manager of the Year 2015 and 2016 by Institutional Investor magazine.
“We hope to create a ripple effect in the arts community in Baltimore and nationally in the art museum field, encouraging other non-profit organizations to hire diverse-owned firms to manage their endowment portfolios,” said Julia Marciari-Alexander, Andrea B. and John H. Laporte Director of the Walters Art Museum. “Together we can transform our institutions and communities and build a more diverse and inclusive economy.”
RFP: State of Illinois Secure Choice Market Analysis
The Illinois Secure Choice Savings Board (“Board”) authorized the Illinois State Treasurer’s Office (“Treasurer”) to issue this Request for Proposals (“RFP”) for a Market Analysis Report (“Report”) on behalf of the Board. The successful Respondent (“Contractor”) shall provide the Board and Treasurer with a final report, analyzing the financial feasibility of Secure Choice, including, but not limited to, determining when the Illinois Secure Choice Savings Program (“Secure Choice”) will be selfsustaining, as well as recommendations for how to optimize Secure Choice participation and performance. Respondents must submit their Proposals by 2:00 p.m. CT on September 6, 2016.
RFP 370-200-17-00 can be found at the following link: http://illinoistreasurer.gov/Office_of_the_Treasurer/Procurement/Procurement_Opportunities
NASP-Detroit Member Portia Roberson, Newly-Elected Chair, Detroit Police & Fire Pension - Makes History
The Detroit Police & Fire Retirement System has elected Attorney Portia Roberson to serve as Chair of the Board of the Detroit pension system. Roberson, who serves as a Board appointee of Mayor Michael Duggan, is the first ex-officio African-American woman to serve as Chair of the Board of the $3.2 billion pension system, serving some 8,000 retired police and fire and approximately 3,500 active duty first responders. Roberson is an attorney and heads the Civil Rights and Ethics Division for the City of Detroit. In an official statement Roberson shared: "I am honored to serve the members and beneficiaries in this leadership role as Chair at a time when we continue to establish best practices for operations and investments to make the Police and Fire Retirement System a model for the nation."
NASP and NASP Detroit overwhelmingly applauds the accomplishment of Attorney Roberson and is proud that the Detroit Police & Fire Retirement, has maintained the tradition and spirit of inclusion that has defined the City of Detroit and the Detroit Pension Systems over the years.
Top Pensions Fight to Boost Diversity Despite Recruiting Challenges, Fundfire, June 24, 2016
While many public pensions haven't talked about increasing staff diversity, many have focused on the importance and strategized around it. Pension funds, organizations, asset managers and other stakeholders all know and agree that more work needs to be done.
A recent article in FundFire noted that while some pensions are still working on increasing diversity, New York City Pension System’s Bureau of Asset Management has a staff with a make up similar to the city it serves. Forty-seven percent of the workers are white, 22% are African-American, 24% are Asian and 7% are Hispanic. Nearly two out of five investment staffers are women and several members of the senior team are women and minorities.
CalSTRS has an investment staff that is 52% white and has been vocal of its support for diversity. FundFire reported that since he became CIO in 2000, CalSTRS’ CIO Chris Ailman has strengthened efforts to promote diversity including recruiting trips to campus groups representing minorities, creating internships, pushing hiring managers on the topic and not accepting non-diverse slates of candidates from recruiters. And on the 12-person investment team of the IMRF. there are five minorities and five women.
“For some states it’s not even on their radar screen. They’ll say ‘yeah, that’s something we need to do,’ but there doesn’t appear to be any emphasis or strategy around it, but for some larger plans there is a strategy around it,” said Michael Kennedy of executive recruiting firm Korn Ferry.
View full article via FundFire.
CalPERS to Commit Up to $11 Billion with Emerging and Transition Managers by 2020
CalPERS will hold a global solicitation process for its new Transition Manager Program that will seek investment proposals from eligible mid-size external investment managers. The solicitation will open in July 2017. Commitments range from $50-$300 million in the Real Estate and Private Equity programs, and $500 million to $1 billion in the Global Equity program. This is in addition to the new commitments to CalPERS' Emerging Manager Programsof up to $4 billion during the same period. The goal is to identify and place up to $11 billion in new commitments with qualified managers by 2020. Click HERE to view the full press release.
In addition, click HERE to view the Targeted Investment Programs Update which among other things, outlines CalPERS' exposure to emerging and diverse managers, as well as the timeline for the deployment of capital in both the Emerging and Transition Manager programs.
PBGC Selects Firms for Smaller Asset Manager Pilot Program
On June 10, 2016, the Pension Benefit Guaranty Corporation selected five investment management firms to participate in its pilot program for Smaller Asset Managers.
The report highlights the law’s accomplishments since its enactment in 2010, threats to full implementation and next steps in bridging the “recovery gap” for Americans left behind in the post-crisis economy. The report also details repeated Republican efforts to undermine the law, including Republican document requests that have forced regulators to produce over 23,000 pages of responses, reduced funding for Wall Street’s cops, and attempts to stall reform through numerous bills designed to weaken, delay, or repeal important components of the law. Some in the financial services industry have also sought to delay the law through the legal process, by filing at least 11 lawsuits, four of which led to the withdrawal or re-proposal of federal regulatory rules.
According to the report, Dodd-Frank has empowered regulators with vital tools to prevent a future crisis. And five years later, they have made significant progress, working to fully implement the law, monitor the financial system for risks to its health, finalize rules to help prevent future bailouts, increase transparency in the once-opaque derivatives market, rein in credit ratings agencies, and institute new investor protections.
Among its more signature achievements, the establishment of the Consumer Financial Protection Bureau (CFPB) under Dodd-Frank has led to more than $10 billion in relief to 17 million Americans who’ve fallen victim to the same types of practices seen in the run-up to the 2008 crisis. As a critical source of protection for service members and consumers, the CFPB has also finalized rules that would both ensure that borrowers have the ability to repay home loans and that many of the tricks and traps seen during the subprime crisis are absent from those loan terms.
The report also provides a roadmap for regulators and Congress to “bridge the recovery gap” while also addressing small financial institution concerns.
Full text of the report can be found here.
An executive summary of the report is here.
Final Interagency Policy Establishing Joint Standards for Assessing the Diversity Policies and Practices of Regulated Entities Established
On June 4, 2015, The Department of the Treasury, The Office of the Comptroller of the Currency, The Board of Governors of the Federal Reserve System, The Federal Deposit Insurance Corporation, the National Credit Union Adminstration, the Consumer Financial Protection Bureau, and the U.S. Securities and Exchange Commission released the interagency policy statement. NASP, as well as other associations, companies, and others provided comments to the initial proposal from December 2013 through February 2014.
The statement is part of Section 342 of the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 (Dodd-Frank Act or Act) which required the OCC, Board, FDIC, NCUA, CFPB, and SEC to each establish an Office of Minority and Women Inclusion (OMWI) to be responsible for all matters of the Agency relating to diversity in management, employment, and business activities and instructed each OMWI Director at agencies with regulated entities to develop standards for assessing the diversity policies and practices of entities regulated by the Agency.
Click HERE to view the Final Standards Issued.
Click HERE to view NASP's comment to the initial proposal submitted to the Federal Register.
New York State Common Retirement Fund: Emerging Manger RFI for Fixed Income Investment Management Services
Pension Consulting Alliance, Inc. (PCA) working with the New York State Office of the State Comptroller, acting on behalf of the New York State Common Retirement Fund (CRF), has prepared and is distributing this RFI to identify emerging investment management firms to manage Fixed Income portfolios for the CRF. Proposals are due February 6, 2015.
SCOPE OF SERVICES
The current CRF Fixed Income portfolio is composed of investment grade securities and is primarily managed internally by the New York State Office of the State Comptroller Division of Pension Investment & Cash Management. The fund is initiating a program to broaden its exposure to Emerging Managers and is seeking to complement the internally managed Investment Grade Fixed Income portfolio.
This RFI is soliciting proposals for Emerging Managers to manage separate accounts focused on the following Fixed Income market segment products. Each product will be managed separately. Proposal for each product will be reviewed and rated separately. Proposers may submit proposals for one or more mandates:
- Inflation Protected Fixed Income Product (U.S.TIPS or Global Inflation Protected securities (“GILBs”) mandate)
- High Yield Debt Product
- Emerging Markets Debt Product
- Structured Debt Product
Click HERE for the PDF Version of the RFI from PCA.
Sciens Fund of Funds Management Ltd. RFI
Notice of Search: The Comptroller of the City of New York/New York City Retirement Systems Seeks Developing Managers for Fixed Income/Core Plus Investment Management Services
Please read carefully as this is a recently adopted procurement method.
The following Systems are participating in this Procurement:
- The New York City Employees’ Retirement System (“NYCERS”)
- The Teachers’ Retirement System of the City of New York (“TRS”)
- The New York City Police Pension Fund, Subchapter 2 (“Police”)
- The New York City Fire Department Pension Fund, Subchapter Two (“Fire”)
- The New York City Board of Education Retirement System (“BERS”)
How to Participate in this Search:
To be considered, investment management firms must comply with the following requirements:
1. All candidates should carefully review the Notice of Search and the Minimum Requirements described in Section B of the RFP.
Interested candidates, including incumbent managers, that meet the minimum requirements, must enter their information in the following two databases in order to be considered by each of the Consultants. The Consultants will review the following databases and provide BAM with a written report identifying the Investment Managers who meet the minimum requirements set forth in this Notice of Search.
For Callan, investment firms must submit their information directly to Callan’s database; for Rocaton, SIS, NEPC and Buck, investment firms must enter their information into eVestment Alliance’s database. Information on requirements for entering information into these databases can be found at:
- Click on “data & tools”, then click on “Manager Questionnaire”
- Click on register/submit data in the upper right hand corner.
3. Candidates with multiple eligible products, for example Fixed Income Core Plus products must provide database entry for each product.
4. There is no fee for entering information into either of the databases. Managers are advised that information in the database may become part of any contract which results from this Search.
Current and accurate data (as of March 31, 2014) must be in the above databases no later thanOctober 7, 2014.
Please see the Notice of Search posted on the Comptroller’s website at www.comptroller.nyc.gov for minimum requirements, as well as easy steps that managers can take to ensure they are considered as part of this solicitation.
- Select “Forms & RFPs” then “RFPs & Solicitations” then “Asset Management RFPs & Solicitation” and click on link provided to “Register”.
NASP Board of Directors Adopts Retirement Security Statement Affirming Support of Defined Benefit Plans
On the adoption of the statement, Les Bond, board chair, NASP, said “Public sector employees have been the nation’s civil servants – playing important roles in society as educators, firefighters, police-officers – with the promise of retirement security. It is imperative that we honor the social contract that enabled municipal employers to attract and retain talented individuals to careers in public service.”
Orim Graves, executive director of NASP added “We are committed to working with the SEIU and ensuring that NASP members and public pension plans continue to work together in ensuring retirement security for thousands of public sector employees. NASP believes that in addition to the important role of defined benefit plans, defined contribution programs and personal savings plans are effective ways for future retirees to augment their retirement income as well.”
To view the statement in a letter addressed to the SEIU, please click HERE.
POLITICO Pro Q&A: Phyllis Borzi
The industry has criticized how your rule might impact their payment model, particularly with how they earn commissions when the make sales. You’ve said in the past that you’re not going to touch commissions —